Morgan Stanley and INEOS Announce Refineries Agreement

Morgan Stanley Commodities Group (“MSCG”) and INEOS Refining today announced a long term agreement whereby MSCG will provide a broad range of commodity services to INEOS to support their refinery operations in Grangemouth, Scotland and Lavéra, France. The agreement will commence upon termination of INEOS’ current oil supply arrangements on 31 March 2008, subject to INEOS Group bank consent.

The agreement provides that MSCG will supply crude oil, market refined products internationally and conduct risk management activities for the refining system (which has a capacity of approximately 400,000 barrels per day). A further provision of the agreement is that INEOS will second a core team of employees to Morgan Stanley to support these commercial activities.

Calum Maclean, the CEO of INEOS Refining, said, “The contract with Morgan Stanley is in line with INEOS’ strategy to grow its trading and mid/back office capabilities. The agreement will enhance INEOS’ credibility in the market in terms of trading activities and will contribute to the development of supply, logistics, trading and hedging expertise within the group. Importantly, the agreement is expected to provide significant cost savings and incremental revenue opportunities to INEOS.”

Colin Bryce, Morgan Stanley’s European Head of Institutional Sales and Trading, said, “We are pleased to have been selected by INEOS Refining to develop this innovative approach to refinery supply chain management. This arrangement provides INEOS a platform through which to maximize the commodities-related value of their refining assets while adding synergy to Morgan Stanley’s global oil sourcing, transportation and marketing network. INEOS is joining a growing list of oil market participants utilizing the Morgan Stanley commodities franchise to achieve step-change improvement in their supply, risk management and working capital performance.”

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 32 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

INEOS is the world’s third largest chemicals company: a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 18 businesses, with a production network spanning 73 manufacturing facilities in 18 countries, the company produces more than 30 million tonnes of petrochemicals and 20 million tons per annum of crude oil refined products (fuels). INEOS employs 16,600 people and has sales of around $38 billion.