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RILs Existing Refinery At Jamnagar, Gujarat
International Conference on
Refining Challenges & Way
Forward
16-17 April 2012, New Delhi
Reliance
Industries Limited
RAJARAMAN J.
Techno-Commercial Aspects in
Opportunity Crude Processing -
A Refiners Perspective

Reliance Industries Limited
A Quick Introduction

3
Reliance Industries (RIL) Today
Indias largest private sector enterprise with
strong financials (FY April 2010-March 2011):
Revenue of $58.0 billion
EBDIT of over $ 9.2 billion
Industry leading position across businesses
Integrated energy chain in Upstream, Refining
and Petrochemicals
Successfully completed transformational
initiatives and created world-scale facilities
Sights set on growth initiatives that are
unparalleled in scope, scale and value
Revenues
Gaining momentum to achieve the next phase of significant growth
Oil & Gas
5.8%
Others
0.2%
Refining
72.7%
Petchem
21.3%
Oil & Gas
26.6%
Others
0.1%
Refining
36.4%
Petchem
36.9%
EBIT

Techno-Commercial Aspects in
Opportunity Crude Processing :
A Refiners Perspective

5
What are Opportunity crude oils?
Grades of crude that have characteristics that make them more
challenging to process
Quite dependent on capability of a refinery in terms its design basis
By definition, such grades can not access all the refineries in the
Globe : so, a smaller customer base
For a refiner equipped to handle, these grades may present an ability
to lower cost of acquisition and hence scope to add more value

6
How could one categorise opportunity crude oil?
Grades that are acidic say, Total Acid Number >0.5
Grades that are high Pour Point say, >6 Deg C
Grades that are extra heavy say, API < 15 and very viscous say,
Kinematic Viscosity >350 cst @ 40 Deg C
Secondary units feed quality e.g. VGO Nitrogen, VGO metal
contents for refineries with FCC

7
Challenges in processing High Acid Crudes
Processing Issues:
Higher level of acid in crude overhead systems (and
other circuits where acid is concentrated) Risk of
corrosion
Product quality issues: acid distribution in
Kerosene/AGO/VGO cuts; Would it pose concerns
on meeting specs for products?

8
Refiners approach to process High Acid Crude oil
Systematic unit-wise impact analysis of high TAN crude on existing metallurgy.
Dilution by blending (large CDU capacity is helpful)
Chemical Inhibition method in a limited way (in respective circuits)
On-line corrosion monitoring systems at specific sensitive points.

9
Commercial Impact of processing High Acid Crude oil
Continuous use of high acid crude in a refinery without metallurgy protection needs to consider:
Operating cost towards Chemical Inhibitors
Investment for installing corrosion monitoring systems
Stepped up inspection of critical equipment/points for integrity
Investment decisions dependent on cost-benefit of processing such grades

10
High Pour Point (HPP) Crudes
Challenges Refiners Approach Commercial Impact
Transportation & handling Heated vessels, heated
receipt/storage facilities
Generally smaller cargo size results in
higher freight.
Handling cost at receiving port
Investment towards creating
Infrastructure for long term intake.
Wax precipitation Blending with
compatible grades
Additional cost towards procuring
complimentary grades
Products quality : Cold
properties of diesel viz.
Cold filter plugging point,
Cloud point
Addition of Pour Point
Depressant in diesel;
Limit % in blend
Cost towards additives
Parrafinicity may lead to
higher yield of
LPG/Gasoline in FCC
Monitor VGO properties FCC t 'put could be limiting resulting in
potential loss (if processing large % of
HPP crude)

11
Extra Heavy/High Viscosity Crudes
Transportation & pumping Dilute and transport
Heat and Transport
Price differential gets
adjusted to the extent of cost
of diluents and freight costs
Slower release of water in
storage tanks - Tendency to
form stable emulsions
Segregated tanks for Heavy
grades
High retention time and
hence, higher inventory
carrying cost
Blending: Stratification
resulting in layering
Controlled blending and
tankage segregation
Inventory carrying cost and
possibly demurrage penalties
Dehydration constraints Desalter modifications in
terms of size and current
capacity (amperage)
Investment on desalter
modification
Higher VGO & Vacuum
residue
Choose appropriate
complementary crude to
blend
Higher basket price due to
higher cost of complementary
grades
Higher % processing would require investment decision

12
High Nitrogen Crudes
Reduction in Hydrotreater /
FCC catalyst life cycle
VGO Nitrogen limit;
High severity operation
of Hydrotreators
Operating cost to improve de-
nitrification of feedstock.
Cost of catalyst replacement / smaller
turnaround cycle
Inferior FCC yield -
increased heavy ends i.e.
slurry
- Yield penalty
Corrosion in VGO
hydrotreater.
Nitrogen in VGO to be
limited.
Stepped up inspection
for Hydrotreater
internals
Adverse affect on health of the reactor.

13
Crude Oils with High Metal Contents
Types of Metals Effect
Arsenic & Mercury a) Mercury (organic type) In naphtha, poisons Petro-Chemical
cracker catalyst
b) Mercury (inorganic type) & Arsenic Environmental hazard (kills
biomass in ETP)
Nickel & Vanadium in
VGO
a) Hydrotreater, Hydro Cracker, FCC catalyst poisoning; Severely
impact catalyst life cycle.
b) Gas make in FCC increases, disturbing the yield
c) Improper cracking in Hydro-crackerinferior yield
Presence of metals in crude oil leads to improper separation of salts in the desalter.
In absence of specific treatment, need to be managed thru blending.

14
Commercial impact of processing Crude oils with High metal contents
Cost-Benefit analysis to be done for lower crude cost vis--vis:
Desalter modifications
Catalyst replacement cost/Turnaround impact.
Impact of inferior yields & increased operating cost

Current Market conditions for
Opportunity Crudes

16
How widely is that grade accepted?
Larger the number of refineries capable to process opportunity
grades, wider is the customer base; Supplier net-back improves
Grades requiring diluents/heating Cost of diluents/ higher freight
adversely affects supplier net back as well landed cost to refiner
Sanctions affecting market access Only part of market available for
marketing such grades; Buyers able to access may benefit
Factors affecting differentials of Opportunity Crude oils

17
Market Direction
Increasing complexity of refineries and tougher refining margin
environment Refiners pushing to widen technical processing
envelopes
Increased emphasis by National Oil companies to process opportunity
grades within the producing country
Higher demand from Emerging markets for opportunity grades from
West-of-Suez sources
Result? Suppliers targeting higher net-back on opportunity grades
and hence scope of refiners value-addition shrinking

Thank You

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