0945h mutlaq al azmi - knpc

KNPC – Shuaiba Refinery Operations Dept. March’2012

Operational Excellence Programs in

KNPC-Shuaiba Refinery

Mutlaq Al-Azmi Manager, Operations


Contents Introduction

The journey in striving for Operational Excellence

Refinery performance at a glance

Discussion Forum


SHU MAB MAA

1.3 7.8 10.5 TOTAL AREA , (Km²)

200 270 466 REFINING CAPACITY, MBPD

Introduction

KNPC Historical Background (Turnover of US $ 37 BILLION)

1961 Commissioning of Local Marketing Activities

1965 Start building Shuaiba Refinery

1968 Commissioning of Shuaiba Refinery

1978 KNPC take-over of MAB Refinery

1980 Establishment of KPC & Re-structuring of Oil Sector

1981 KNPC take-over of MAA Refinery & LPG Plant

1984-88 MAA & MAB Refineries Upgrading Programs


Introduction

Shuaiba (SHU) Refinery is the oldest of the three refineries operated by

Kuwait National Petroleum Company (KNPC)

Commissioned in 1968 with 95,000 bbls/day

Present refining capacity is 200,000 bbls/day (Single crude train)

Capable to handle relatively high sulfur Kuwait crude (KEC)

Hydrocrackers, H-Oil ( Heavy oil cracking) units & Hydrotreaters.

Faced setbacks in sustaining steady operations due to frequent

unscheduled shutdowns and reliability issues, resulting in reduced on-

stream factor and product commitments.

To improve the reliability and sustain continuous safe operations of the

refinery, Operations Excellence Programs were initiated in 3rd qtr. of

the year 2004.


SHU Refinery Configuration


SHU Refinery Units

Unit Capacity BPSD Licenser

Crude Unit 200,000 Foster Wheeler

Hydrocracker 46,000 Chevron

H-Oil 50,000 IFP

Naphtha Unifiner 26,000 UNOCAL-UOP

Kerosene Unifiner 35,000 UNOCAL-UOP

Light Diesel Unifiner 17,000 UNOCAL-UOP

Heavy Diesel Unifiner 12,000 UNOCAL-UOP

Acid Gas treating unit 60 MMSCFD KELLOG-UOP

Hydrogen production units- 74 x 3 MMSCFD Foster Wheeler

Sulfur Units ( 2 X 750 MSCFH ) Foster Wheeler & Parsons

Tail Gas Treating Unit 2578 MSCFH Axens


Operational Excellence Programs

Year-2005

Year-2006

Year-2007

Year-2008

DMC (Advance Process Control system) TMS (Time Management System)

PI (Profit Improvement Programs) RGMS (Relief Gas Management System)

MERIT (Manufacturing Enhanced Reliability Improvement Program) Steam Management

OTTER (Operations & Technical Task in Efficient Rounds)

IOW (Integrated Operating Window) Year-2009

Enterprise Risk Management (ERM) Project Year-2010

Energy Management Cell

Year-2011

Enhanced Efficiency Operations Workshop (EEO)


Advanced Process Controls (DMC) - BENEFIT AREAS

• Reduced Process Variability and Probability of Incidents

Safe Operation is Enhanced

• Consistent Operation at Optimal Constraints

Increased Throughput

Increased Product Upgrade (and/or improved product quality)

Reduced Energy Use

• DMC will use Energy in the Most Efficient Manner

Production Increases/Yield Shifts of 2 - 5%

Energy Reduction of 5 - 10%

Operational Excellence Programs - 2005



DMC’s LP determines the Optimal Set of Constraints

shift in the average 95% distillation point of light diesel after DMC implementation.

Increased runlength of H-Oil Unit


Time Management System (TMS)

This program was developed with an objective to monitor the performance of the operations shift staff, which includes daily tracking of attendance, overtime, vacations/leaves and absentism.


Developed in house and made accessible to all supervisory staff.

Flexibility to produce reports

Tracks all low performance employees and address them individually.

Controls the overtime expenses as a part of OPEX Programs.


Profit Improvement Program (PI) – Background

“CMD Directive, In general terms “Adopt Profit Culture”; Standards across the refineries.

KNPC personnel should be able to:

• Adopt Profit Improvement methodologies;

• Sustain existing Profit Improvement opportunities

• Progress new opportunities, generated from outside sources, and

• Generate new opportunities

Monitors Opportunities daily & Coordinates all activities related to

Yield Improvement, Energy Management, Oil Loss reduction,

Capacity Maximization and Utilization.



PI Sponsor

(Manager Operations)

Steering Committee

Head: DMD’S

Members: Managers, PIP Coordinator

PI Coordinator

(Section Head., Operations)

Opp. Owners

MOG

(STOT )

Section Heads

Process Eng

Operational Planning

Inspection

Maintenance

Laboratory

Monthly status presentation

Daily status,

Roadblocks.

Inter-refinery economics,

Platt's pricing, etc..

Manpower usage requests, discussion and resolution of priority conflicts, information flow, etc..

Highlights causes of “gaps” in actual versus target KPI and what actions are being taken to rectify.


Profit Improvement Program (PI) – KPI Monitoring Process


Relief Gas Management Program (RGMS) – Introduction

Objective : Achieve Zero non-emergency Flaring

Commitment : Minimize environmental emissions / discharges and

prevent pollution (HSE Policy)

Steps of implementation

1) Communication / Accountability

2) Work Process Changes

3) Equipment Changes

4) Monitoring Process

Reduced emission of hydrocarbons from 15 mmscfd to 1 mmscfd.



Relief Gas Management Program (RGMS)

Developed Flare reports for continuous monitoring

Established KPI’s for flaring targets (Refinery Balance

Score Card)

Ensures ZERO FLARING during startup and shutdowns

Any substantial flaring is considered an incident and is

fully investigated to find root causes and eliminate

Commissioned Flare Gas Recovery Unit (FGRU)




Online survey carried out with modern devices like IR camera,

AccuTrak (Ultrasonic sound signature tool) & VPAC- Flare

Surveillance Device

Developed a messaging system, alerts notified to concerned Section

Heads, TLs and Manager Operation by SMS.


Surveillance Cameras installed to cover

all flares


0

2

4

6

8

10

12

14

16

18 Emission in mmscfd

RGMS INITIATED





0

5

10

15

20

25

30

35

40

FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12

38

15

19

11 9 9

Environmental Incidents


Manufacturing Enhanced Reliability Improvement Program

(MERIT)

4 P(s) program launched.

• Promote quality excellence : Deals with quality management system in

compliance of ISO-9001-2000 standard.

• Process Excellence : Maximize equipment reliability and availability.

• People Excellence : Develop knowledge, skill and dedicated Human

resources for achieving safe and sustained company growth.

• Profitable Growth : Achieve cost reduction by OPEX control, Inventory

control and develop business opportunities.



MERIT

Highlights of MERIT : Management Initiatives Implemented and

monitored in Shuaiba Refinery

Shutdown Management System

Plant Modification Business Procedure

Spare Pump Policy

Defect Elimination Program

Bad Actor Elimination Plan

Corrective Maintenance RAM

Refinery communication plan



MERIT : Shutdown Management System


SEAMLESS INTEGRATED PROCESS

Start-up

Cut in feed

Visible management interest

Daily co-ordination meeting

Progress Monitoring

Daily update of plan

Challenge of emergent work

Budget control

Cut-off Feed

Post Implementation

review Meeting

Capture Lesson

learnt & update

T/A Manual

RAM /

BUSINESS

HURDLE

•Multi discipline Integrated planning,

scheduling and resources optimization

•Involve contractors and supervisors

•Determine accurate duration

*Kick off

Review 5 Year T/A

Plan & Appoint

Leaders

Set Premises

Preliminary Work

List

•Risk Basis Scope Challenge

•Freeze Work List

• Develop BSC

Provide work

list to Contracts

and Award

END

Start

Operation,

Process,

Inspection and

Projects

24-12

months to

T/A

9 months to

T/A or 1 year

to GRTA

3 months

before T/A

2 weeks

after the

start up

New Work



Steam Management

900#, 475#, 150# and 50# steams being used at SHU Refinery.

Feed forward control and Gain scheduling added to plant master pressure controller.

ESD protection added to the Steam system.

Steam system has become highly reliable without any human intervention even during power dip / outage.



Steam Management : Protection systems

In the event of steam header pressure dropping below 840#, Main recycle gas compressor (driven by 900# steam) in Unifiners ramps down to minimum preset value and pressure controller changes to Flow controller.

Same philosophy is followed in Hydrocracker recycle gas compressor.

Also, in addition to this Automatic stop trip signal is triggered to CCR Compressor.

If pressure continuous to drop below 780#, Letdown station control valves start closing overriding the demand of 475 # pressure controller.



OTTER ( Operations & Technical Task in Efficient Rounds )

Objectives

To obtain data for key operating parameters from various

equipments in the field that are not connected to DCS

Assures awareness of operating boundaries via defined

limits and drives actions to be initiated for tasks

exceeding limits.

Enables operator to view current conditions against

backdrop of historical data and highlights deviations.




Objectives

Helps in monitoring machinery

conditions.

Provides structured route to perform

assigned tasks.

Provides email notifications on

operating limits exceeded in field

highlighting problem areas for

attention.



Improved availability/reliability of equipment

Asset Integrity with better HSE performance

Build up data bank with uniformity

Transparency in work compliance

Ease of performing tasks with no log sheets

Organized and systematic way of logging readings

Availability of historical measurements for quick reference and analysis


Benefits



IOW (Integrity Operating Window)

IOW is the set of boundary operating

conditions within which parameters

must be controlled to ensure safe

and reliable operation.

IOW has specific limits (max/min) for

variables identified in the Risk Based

Inspection (RBI) workshop in

consideration of the material

degradation process.




Benefits

Captures all exceedences

Sends automatic emails to assigned person reporting the occurrence of the exceedence incident and also the percentage of TIE (Time in exceedence) consumed so far

Keeps track of the accumulated time in exceedance of the standard limit

Generates high level warning in case 90% of TIE is consumed and / or critical limit is exceeded at any time

Generates periodic (monthly) reports for Refinery Management showing all incidents of exceedence




Benefits

Enabling and empowering Operation Staff to play a proactive role in prevention of equipment failures.

Decreasing cumulative damages to equipment extending useful life of equipment and reducing repairs in shutdown.

Improving HSE performance of the unit by increasing reliability in operations.

Increased awareness amongst all staff for degradation processes responsible for integrity of pressure envelops.




(Length 3:22 Min)




Outlook E-mail Alert SMS Alert



Enterprise Risk Management (ERM)

Systematic approach to proactively identifying, assessing, treating, communicating and monitoring of all risks and opportunities

Enhances the enterprise value for stakeholders, including owners, employees, customers, regulators, and society

Develops common corporate approaches, policies and processes to manage all risks in the most efficient and effective manner.



Enterprise Risk Management (ERM)

Identifies Risks into categories and sub-categories (Operational,

Credit, Market & Business risk)

By applying this technique, mitigation plans are developed to

reduce Risk degree from Very High to High to Low.

75

80

85

90

95

2004 2006 2008 2010 2012

82.6

86.7 85.8

92.4

Risk Rating

Risk Rating 91-100 “Good”



Developing in-house faculties – Train the Trainer

Use subject matter expert to impart specific field training

Improved the department training intensity

Competency of Operations Field Staff

6

19

45 45 50

0

20

40

60

FY06/07 FY07/08 FY08/09 FY09/10 FY010/11

Training Intensity



Competency of Operations Field Staff

Emergency handling drills, MIPP, Mock drill procedure & development.

(Length 1:30 Min)




Optimize the energy consumption as measured by Energy

Intensity Index (EII) for the refinery.

Survey of current energy consumption and development of

simple real time tables of energy use, control and improvement.

Supervise the development of energy system manuals,

instructions, training, certification, to maintain optimized energy

consumption




To do Benchmarking, Gap Analysis, KPIs, Industry surveys/trends and reasonable goals

Improve of EII on SOLOMON basis.




Multidisciplinary team headed by Manager Operations with key participation from Specialists representing Tech Services/Operations dept.

Brainstorming techniques for generating creative ideas and identifying new profit improvement opportunities in line with revised market spec and maximizing high value products.

Discussion and consultations to explore opportunities for further enhancement of the Refinery unit Operations and products.




Potential Areas of Optimization in Key Refinery Units.

Some of the key identified new opportunities from EEO workshops and implemented.

Processing of Excess Diesel in kerosene unifiners and upgrading the ATK to Diesel (0.05% S). Potential Benefit of 2 Million US $ /Annum.

Segregation of High H2S off gases from various process units to optimize the refinery operations in order to augment the Finished Naphtha Spec.


Financial Performance

KNPC, Shuaiba Refinery

0

2

4

6

8

10

12

Gross Refinery Margin- SHU


0

50

100

150

200

250

300

H-Oil Hydrogen Sulfur

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Refinery Performance

Trend of unplanned shutdown in no of days due to equipment

failure .


Discussion forum

Thank You

0945h mutlaq al azmi - knpc

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