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KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs in
KNPC-Shuaiba Refinery
Mutlaq Al-Azmi Manager, Operations
KNPC – Shuaiba Refinery Operations Dept. March’2012
Contents Introduction
The journey in striving for Operational Excellence
Refinery performance at a glance
Discussion Forum
KNPC – Shuaiba Refinery Operations Dept. March’2012
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
SHU Refinery Configuration
KNPC – Shuaiba Refinery Operations Dept. March’2012
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
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)
KNPC – Shuaiba Refinery Operations Dept. March’2012
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
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.
Operational Excellence Programs - 2005
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
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.
Operational Excellence Programs - 2005
KNPC – Shuaiba Refinery Operations Dept. March’2012
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.
Operational Excellence Programs - 2005
Profit Improvement Program (PI) – KPI Monitoring Process
KNPC – Shuaiba Refinery Operations Dept. March’2012
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.
Operational Excellence Programs - 2005
KNPC – Shuaiba Refinery Operations Dept. March’2012
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)
Operational Excellence Programs - 2005
KNPC – Shuaiba Refinery Operations Dept. March’2012
Relief Gas Management Program (RGMS)
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.
Operational Excellence Programs - 2005
Surveillance Cameras installed to cover
all flares
KNPC – Shuaiba Refinery Operations Dept. March’2012
0
2
4
6
8
10
12
14
16
18 Emission in mmscfd
RGMS INITIATED
Operational Excellence Programs - 2005
Relief Gas Management Program (RGMS)
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2005
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2005
KNPC – Shuaiba Refinery Operations Dept. March’2012
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.
Operational Excellence Programs - 2006
KNPC – Shuaiba Refinery Operations Dept. March’2012
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
Operational Excellence Programs - 2006
KNPC – Shuaiba Refinery Operations Dept. March’2012
MERIT : Shutdown Management System
Operational Excellence Programs - 2006
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2006
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2006
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2007
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2007
OTTER ( Operations & Technical Task in Efficient Rounds )
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2007
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
OTTER ( Operations & Technical Task in Efficient Rounds )
Benefits
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2008
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2008
IOW (Integrity Operating Window)
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2008
IOW (Integrity Operating Window)
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2008
IOW (Integrity Operating Window)
(Length 3:22 Min)
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2008
IOW (Integrity Operating Window)
Outlook E-mail Alert SMS Alert
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2009
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2009
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”
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs
Competency of Operations Field Staff
Emergency handling drills, MIPP, Mock drill procedure & development.
(Length 1:30 Min)
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2010
Energy Management Cell
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
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2010
Energy Management Cell
To do Benchmarking, Gap Analysis, KPIs, Industry surveys/trends and reasonable goals
Improve of EII on SOLOMON basis.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2011
Enhanced Efficiency Operations Workshop (EEO)
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Operational Excellence Programs - 2011
Enhanced Efficiency Operations Workshop (EEO)
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.
KNPC – Shuaiba Refinery Operations Dept. March’2012
Financial Performance
KNPC, Shuaiba Refinery
0
2
4
6
8
10
12
Gross Refinery Margin- SHU
KNPC – Shuaiba Refinery Operations Dept. March’2012
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 .
KNPC – Shuaiba Refinery Operations Dept. March’2012
Discussion forum
Thank You