Abu Dhabi Oil Refining Company (TAKREER)

MIST 625 : Management of Technology &

Innovation

PREPARED BY

Ramy S. Elreqib 201370492

Wesam Abusalah 201370515

SUPERVISED BY

Dr. Ananth Chiravuri

Faisal Alobeidli 200101313

Abu Dhabi Oil Refining Company (TAKREER) was established in 1999 to take over the responsibilities of refining operations from Abu Dhabi National Oil Company (ADNOC). This covers the crude oil and condensate refining, supply of petroleum products and production of granulated Sulphur. Takreer’s main objective is to develop the refining industry in the UAE which started with the inauguration of Abu Dhabi Refinery (ex. Umm Al Nar) in 1976 and Ruwais Refinery in 1982.

Takreer is considered a prominent oil refining company regionally and internationally contributing to oil markets and to the rapid growth of UAE economy. Since our inception, Takreer maintained its position as a leading refining company, thanks to the high standard and efficient refining operations consistent with sound health, safety and environment practices as well as the world standard performance of both operations and employees.

Introduction Introduction

Introduction:

Crude Oil Refining

Illustration of a standard refinery system

Oil Distillation

A refinery process can be divided into three parts: crude oil operations, production and product blending.

Naphtha is a complex mixture of hydrocarbons with boiling range of 38 to 205°C, which corresponds to carbon numbers of C5 to C14. Naphtha is produced from petroleum crude oil by fractionation at crude distillation tower working under atmospheric pressure.Treated Naphtha is sent for further processing by splitting it into:• Light Naphtha that consists of C5 and C6, that passes to isomerization unit• Heavy Naphtha with carbon number of C7 to C14, that passes to a catalytic reforming unit.After that both resulting streams are being blended together in a process called gasoline blending, to produce gasoline fuel as a final product.

What is Naphtha? 

What is Kerosene?  Kerosene is an intermediate product which is treated to

produce Jet fuel used is aircrafts.

Takreer Business ModelTakreer Business Model

Business Strategy: They strive to be a good neighbor by providing sustainable benefits to local communities, and by incorporating economic, environmental and social codes of conduct into their business strategy. They strive to foster a responsive, diverse organization that is highly-motivated, team-oriented, and dedicated to innovative solutions and open communication.

Value : The construction of a carbon black delayed coker (CBDC) at the Ruwais Industrial Complex to produce higher value added products such as synthetic rubber and resins from the crude oil refining and heavy residual oil recycling. This carbon black delayed coker project reflects the $10 billion refinery expansion planned in Ruwais Industrial City.

Capabilities : They owned skilled resources with qualifications and experience. The potential value of the company's size, however, is the knowledge held by more than 1,800 of the region's brightest people. The Ruwais and Abu Dhabi Refineries produce over 23 million tons per year of products for the local and export markets.

Dimensions of innovation (4Ps Model)Dimensions of innovation (4Ps Model)

Product

(What Takreer offer)

useful petroleum products like; Gas, Diesel,

Naphtha, kerosene, etc.

Process

(How Takreer Create and deliver

the offering

Purchasing the crude from ADCO & GASCO and

use their own refinery process divided into three

parts: crude oil operations, production and

product blending to produce useful petroleum

then distribute to customers

Position

(Where Takreer Target that

offering)

Supply to petrol Stations, airports, houses by

ADNOC Locally and Gulf region. And working on

internationally supply.

Paradigm

(How Takreer Frame what she do)

Construction of a carbon black delayed Coker

(CBDC) at the Ruwais Industrial Complex to

produce higher value added products such as

synthetic rubber and resins

Porter 5 Forces AnalysisPorter 5 Forces Analysis

Force type Grade Factors increasing Force Factors lowering force

Buyer Power Neutral There is a market priceLittle power to individual

customers

Supplier Power

 High

Governments have significant power over

licensing costs and

deals as they are in a monopoly

position

 

Competitors HighLots of very large powerful competitors with

significant funding available

Powerful companies may

been seeking larger oil fields

to exploit

 

New Entrants Low Oil companies tend to be wealthy

Skills and technologies

needed are a significant

barrier to entry

Substitutes LowAlternative forms of energy (e.g. solar

power, nuclear power)

Gasoline fuel still the

predominant fuel for

transport which will not

change for many years

 

Value CurvesValue Curves# Competitive Alternative

Market wants Takreer Competit

or1 Oil Exploration 10 8 82 Oil Field Development 10 8 63 Oil Production 10 8 64 Shareholder Value 8 6 105 Safety Record 9 7 86 Environmental Performance 8 7 87 Society 6 5 58 Local Distributor Initiatives 10 10 99 Going beyond clean-up of a disaster 10 9 10

10Building relationship of trust in communities 10 10 7

Takreer SWOT AnalysisTakreer SWOT Analysis

Background and discussions of the problemBackground and discussions of the problem

As in most industries operating in a competitive environment, Takreer must maximize their economic results, to do that; they must maximize their margins

The goal is to find an appropriate way to maximize the productivity of Naphtha and Kerosene, which are the most valuable kinds of liquid products during the process of oil refinery, for the objective of giving the best overall margin.

It is not possible to manufacture just one product from the treatment and conversion units that make up a traditional refinery.

Proposed Solutions and effects on innovationProposed Solutions and effects on innovation

In order to maximize the productivity of Naphtha and Kerosene, the Company should do utilization of better crude oils mixing procedure.

The results:SI Description Old Production New

Production1 Total NAPHTHA produced 268.5 m3/h 310.2 m3/h2 Total Kerosene produced 73.82 m3/h 105.7 m3/h

The third solution mentioned above was chosen, because in Abu Dhabi refinery, new hydrocracker and cooker are costly and other issue is that they are not allowed to install new cocker or update the existing one due to their hazard nature and being close to residential areas.