Serving Asia and the Middle East since 1990 Gas …petrominonline.com/pub/hcasia/mags/ha151012.pdf · Serving Asia and the Middle East since 1990 oct-dec 2015 V o L 25 N o.4 ... Reproduction

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http://www.safan.com oct-dec 2015 McI (P) 217/07/2014 • PPS 1064/10/2013 (025508) • ISSN 0217-1112 • Published by AP energy Business Publications Pte Ltd 19 Kim Keat Road, #04-06 Fu tsu Building, Singapore 328804. Printed by KHL Printing co Pte Ltd

PV GAS – Sustainable Development .... pg 8Asian Outlook .... pg 18Instrument Asset Management .... pg 34

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2 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.com

6RepoRtsInternational Oil and Gas Companies Attend Petrovietnam Conference & Exhibition

PV GAS Concentrates Efforts for Sound and Sustainable Development After 40 years of establishment and development, the Vietnam National Oil and Gas Group has grown into a leading economic group in Vietnam, contributing to the assurance of national energy security. As a leading member of PetroVietnam, PetroVietnam Gas Joint Stock Corporation (PV GAS) orientated strategies are devel-oping the gas industry into a leading economic engine, gradually stepping into the world market, securing a high ranking in the ASIAN gas industry, and becoming one of the strongest gas brands in ASIA in 2025. Mr. Duong Manh Son, Member of the Board of Directors, President and CEO of PV GAS has provided Hydrocarbon Asia his views on this issue!

PV GAS and potential for co-operation in LNG import projects

LNG a Boon for AustraliaThis regional report focuses on Australia, the largest energy entity in the Pacific Rim. Despite refinery closures in the last few years, Australia is gas rich and a leading LNG exporter.

Asian Refining & Marketing 2016 Outlook Moody's says that the Asian refining and marketing outlook remains stable and low oil prices and easing capacity overhang will keep margins healthy. Industry’s EBITDA will grow by around 1%-3% through 2016, driven by healthy petroleum product demand and stable refining margins.

Driving Up Profitable Downstream DollarsThe article highlights that being able to quickly analyse and produce different scenarios delivers swift results. By opening the gateway to a world of new opportunities, refineries are better equipped to explore even more ways to optimise their planning, grow the business and boost profit.

Transforming the Safety Culture Saudi Aramco Base Oil Company-Luberef decided to commit on a November day at the end of 2011 to improve the company’s safety performance which had plateaued. This article is a case study of Luberef plant.

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Editorial 4

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Notice to our Readers

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Official Publication for : Reliability, Asset Management & Safety

(RAMS) Conference • Pressure Vessel and Heat Exchange Engineering

Technology Asia Convention • Corrosion Management in Refineries and

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Quality Management Training is KeyThe American Petroleum Institute spoke with Paulette San-galang, Deputy General Manager of Operations at Haward Technology Middle East, API-U training provider, to discuss the importance of API Spec Q1 and Spec Q2 training and why companies have an increasing interest in understand-ing quality management excellence.

The Downstream Grapevine

tecHNologYTowards Instrument Asset Management Excellence: PP(T)SB Yesterday, Today and TomorrowReliability of Instrumentation in PPTSB (Petronas Penapisan Terengganu Sdn Bhd), a refinery situated on the East Coast of Peninsular Malaysia is critical. A Five-Year Road-map was drawn out to provide a clear planning, scheduling and prioritisation of initiatives to provide plant instrumentation.

DNV GL Combines Tools to Aid Operational Performance in Rotating EquipmentMany pieces of rotating equipment are operating below optimum capacity, affecting production costs, revenues and resulting in unexpected down time. DNV GL has been working together with operators to help unlock the potential of their existing rotating equipment.

APV® Heat Exchangers Designed to Lower Energy Costs in Oil and Gas ApplicationsEnergy consumption and runtime are key parameters affecting production costs in several sectors. Minimizing energy consumption through more efficient process heat recovery is critical to profitability in the face of increasing energy costs. Improving process performance and avoiding unscheduled stoppages can increase runtime. Both deliver immediate and significant cost savings that translate directly to the bottom line.

A Safe Refurbishment of Three LNG Tanks in Algeria This article outlines a case study of cold bonding refurbishment carried out in Algeria.

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Publisher/Executive Editor Eddie Raj

Group Editor Vishnu PillaiTel: 6222 3422 ext: 209email: [email protected]

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Technical consulTanTs

HArry VAn DiJK Business Development Manager Shell Global Solutions - Singapore

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Dr. FErEiDun FESHArAKiPresident FACT Inc.

EnriCo SiSmonDoManaging Director - SingaporeMUSE Stancil

TAn CHEE HonGRegional ManagerCustomer SalesUniversal Oil Products Asia Pacific Pte Ltd

PAuL KEnnEDyVice PresidentOperationsKBC Advanced Technology Pte Ltd

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D. P. miSrAPresidentIndian Institute of Chemical Engineers & MemberBoard of Governors of Engineering Council of India

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corresPondenTs

Australia/PnGBrian Wickins

Dhaka, BangladeshGhazi Mahmud lqbal

Beijing, ChinaLi PeizhongWang Yong

Delhi, indiaSiddharth Raghavan

new ZealandWarner Saville

PakistanDr Salman Saif Ghouri

Editorial Desk

HA

When Not If….

The downstream sector is really a curious animal. In most, if not all other industries, a decrease in the price of raw materials would be

cause for celebration. However, in the downstream sector of the oil and gas in-dustry, this does not seem to be the case even though leaders in the downstream sector, together with most analysts, ac-knowledge and even promote the fact that lower feedstock costs would trans-late to higher margins. The main reason for this is the fact that most of the major downstream players are upstream play-ers too. Ergo, the downturn in the up-stream sector has cast a pall on its down-stream counterparts.

One of the bigwigs in the refining sector of a regional NOC recently com-mented that the constant drop in the oil price has led him to have sleep-less nights, as oil shares and company shares are part of his remuneration and thus the slide has resulted in the shrink-age of the monetary value of his assets. This puts him in a conundrum where as a downstream proponent, he should be happy as feedstock prices fall but from a personal standpoint, so has his finan-cial portfolio. This is a microcosm of the downstream sector’s dilemma.

Another factor prompting this curi-ous behaviour is that oil prices have a rather direct relationship with the glo-bal economy. When oil prices are up the global economy seems to be on a high; conversely, when oil prices be-gin to fall the global economy starts to flounder. There certainly are rea-sons for this co-relationship between the oil and gas industry and the glo-bal economy (which I am not qualified to assess). Similar the demand for re-fined products is linked to the global economy, though that relationship is rather more straightforward – a boom-ing economy means a greater demand for energy (refined products), and a

depressed economy means a reduced demand for energy.

It also takes time for the industry to react to market conditions. During high demand more facilities are added, whether it be new refineries or capac-ity increments, and these end up being under-utilised during downturns. Such is the current situation. The slowdown of China’s industrial growth has been a major factor, though by no means the only one, as have been economic fluctua-tions in Europe. Development in Asian countries, especially India and some Southeast Asian countries, have helped to ensure a healthy demand remains; however, despite refinery closures in the Pacific region (Australia), there is still a rather prominent margin of over-capaci-ty. On a positive note, the region will be ready when the upturn comes around.

Notice that I said when and not if. If future plans are anything to go by then I am not alone in this thinking. An increase in refining capacity is in the pipeline for a number of countries such as India, Vi-etnam, Thailand, Malaysia and Indone-sia. Considering the costs involved we can be sure that the decision to go ahead with these plans must be well thought out. Despite the limitations of the sector I am positive of the turnaround.

As is the norm, please allow me to take this opportunity, on behalf of all the staff at AP Energy (publishers of Hydrocar-bon Asia), to wish our readers Merry Christmas and Happy New Year. May 2016 be a less arduous year than this. As we look to the future and expansion, Hydrocarbon Asia will be helmed by a new editor next year. I believe he will re-ceive the same support and interest his predecessors had. We look forward to engaging you once again in the upcom-ing year.

Group Editor


CompanyFocus

REPORT

International Oil and Gas Companies Attend Petrovietnam Conference & Exhibition

Vietnam National Oil and Gas Group’s Conference and Exhibition 2015 with the theme “Petrovietnam - 40

years of integration and develop-ment” is an international event to mark significant milestones through four decades of development - its emergence and contribution to Vietnam’s economy in general as well as to Vietnam’s oil and gas industry in particular.

The event has attracted more than 500 delegates from 80 Vietnamese and international oil and gas companies to take part in. They include 15 key Petrovietnam’s subsidiaries and 59 organisations and companies from Southeast Asia, Europe, the USA and Australia. Among them, the biggest international oil and gas players operating on the Vietnam continental shelf played an important role in the success of the event.

The US oil and gas giant Exxon-Mobil - one of the leading petroleum companies outstanding for its activi-ties in deepwater. Its commercial gas discovery at Ca Voi Xanh field is the largest of its kind ever found in the country with the reserves of strategic significance. The project will in the future be a national scale complex project , which covers from upstream sector to gas pipeline construction and includes two potential gas thermal plants with a combined capacity of 6,000 to 6,500 megawatts. This project is likely to make the United States one of the top

four foreign investors in Vietnam along with Japan, South Korea and the Russia.

Murphy Oil may have seen at the depth of 1.000 - 2.500m of Vietnam East sea. Vietnam is a great potential market with a long-term expansion strategy. Besides, Mexico Gulf is desirable region for Petrovietnam and Murphy Oil cooperation.

Talisman Energy Inc. (Canada) has been exploring and producing oil and gas in Vietnam since 2001 and invested more than USD 3 billion so far on different projects in the country. Currently, Talisman Energy and its partners are supplying around 20% demands of gas for thermal power plants in Vietnam. Even though Repsol S.A has recently replaced Talis-man Energy but Asia and Vietnam is continue to be its potential market for strategic investment. The discover oil fields are Song Doc, Cai Nuoc, Hai Su Trang and Ca Rong Do.

The Russian Federation players are Petrovietnam strategic traditional

partners and have an important contribution to the Vietnam oil and gas industry in the long history. Together with 35-year partner - Zarubezhneft, Rosneft and Gazprom are accounting for increasingly significant role in oil and gas explora-tion and production activities on the Vietnam continental shelf.

Gazprom with its deep sea active operation found commercial oil at Bao Vang, Bao Trang, Bao Den fields, gas production at Hai Thach and Moc Tinh fields should be considered as the steps towards Gazprom penetra-tion into Vietnam Gas industry.

Taking over TNK-BP in 2013 Ros-neft became main gas supplier in Vietnam, operator of Nam Con Son Gas biggest Pipeline. 2015 marks Rosneft 300 million boe production.

Petronas is a long-term partner of Petrovietnam in Southeast Asia with mutual projects in Vietnam, overlap-ping areas and Malaysia, in both upstream and downstream activities as well as other commercial activities.

The operation areas include Song Hong, Cuu Long, Malay - Tho Chu basins, Ruby, To-paz, Pearl, Diamond, Thang Long, Dong Do, 46-Cai Nuoc and Thai Binh, Ham Rong, Gau Chua and Ca Cho.

Over the past half of century, foreign oil and gas contractors have played an important role in Vietnam oil and gas industry de-velopment and society contribution.

In theSpotlight

HA

H.E Prime Minister of Vietnam Nguyen Tan Dung and H.E Prime Minister of Malaysia Najib Rajak witnessed the signing of MOU between Petrovietnam and Petronas on August 7th 2015 in Malaysia.Photo: PVJ

TECHNICAL COMMITTEE:• Kamarul Ariffin Bin Tajul A’mar, Head Centralized Services, PETRONAS

Chemical Group Berhad• Mohd Azmi Mohd Noor, Advisor, Technical Integrity & Process Safety, HSE

Division, Exploration & Production Business, PETRONAS• Grant Vidrine, Regional VP, HSSE & Operational Assurance, Talisman Energy• Michael Costello, Technical Service Manager, Joint Venture & Affiliates,

Chevron International Pte Ltd• Phil Slowther, IMCA, Fugro Group• Dr Krishna M Bala, Director EHS, Hess Asia Pacific• David MacLaren, Technical Advisor, RAMS ASIA

PATRON

Datuk Ir. Kamarudin ZakariaHead, Group Technical Solutions

PETRONAS

The Patrons & Technical Committee Members of the 9th Reliability, Asset Management & Safety Asia Conference (RAMS Asia) cordially invite you to submit your abstract for technical presentations with the theme, “Enhancing Asset Management and Reliability with Futuristic Concepts”.

The event will highlight issues related to maintaining reliable and safe operations while optimizing productivity. The event, seeks to be the premier platform for knowledge and experience sharing in the areas of reliability, asset management and safety at the operational level.

TOPICS: QHSE, Process Safety Management and Reliability, Asset Integrity including RBI, RCM and SIL, En-hanced Safety Practices for Operations as well as installing a platform for Safety Managers, Engineers and Practitioners involved in the UPSTREAM, MIDSTREAM and DOWNSTREAM of gas power sectors.

The recent trend in the oil and gas industries has demanded we examine our usual concepts of Asset Management to search for better ways to care for aging equipment and reduced demand from our existing assets.

Abstracts on relevant topics not included above will also be taken into consideration by the programme committee. The abstract should not exceed 400 words. Abstracts should be submitted by 15 January 2016.

In line with the conference theme and objective, the program committee is careful in selecting the topics and invite speakers to present papers on their own experience and case studies to share with the conference participants. Papers of purely marketing / commercial nature will not be considered. All final papers must be written in MS WORD, to facilitate publication of selected papers in our Energy Publications. PowerPoint used for presentation will not be considered for publication.

The technical committee is in the process of selecting and inviting the industry experts for the appropriate panel sessions and presentations.

Organized by:

Call For Papers

For abstract submission, delegate registration and please contact: [email protected] / [email protected] or call us at +65 6222 3422

9th ReliAbility, ASSet MAnAgeMent & SAfety ASiA ConfeRenCe (RAMS ASiA)Theme: Enhancing Asset Management and Reliability with Futuristic Concepts

25-26 April 2016 • Kuala Lumpur, Malaysia

Abstract Submission Notification of Acceptance Final Paper Submission 15 January 2016 30 January 2016 25 March 2016

Supported by:

In theSpotlight 8 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.com

PV GAS Concentrates Efforts for Sound and Sustainable Development

Q: After 25 years of establisment and development, PV GAS is now a premier supplier of gas and gas products in Vietnam, contributing to the national e n e r g y s e c u r i t y a n d s u s t a i n a b l e d e v e l o p m e n t o f t h e Vi e t n a m g a s industry. Can you tell us what you consider to be, the most important l a n d m a r k s i n t h e d e v e l o p m e n t o f PV GAS?

Mr. Duong Manh Son: PV GAS was established on September 20th, 1990 with the main goals of gathering, importing, transporting, storing, processing, dis-tributing and trading in gas and its products. Since it brought ashore the first gas flows in 1995, PV GAS has supplied more than 98 billion cubic metres of dry gas, 9.8 million tons of liquefied petro-leum gas (LPG) and nearly 1.6 million tons of condensate. With safe, continu-

RepoRt

ous management and operation, i ts gas collecting, transporting, storing, processing and distributing systems from Cuu Long, Nam Con Son and PM3-Ca Mau basins annually provide gas to produce 35 percent of the country’s elec-tricity, 70 percent of fertilisers and over 70 percent of liquefied petroleum gas for domestic civil and industrial users. PV GAS has built a system of modern facilities for the gas industry with 4 gas pipeline systems: Cuu Long basin - Dinh Co, Nam Con Son 1 - Nam Con Son 2 (Phase 1), PM3 - Ca Mau, and Ham Rong - Thai Binh.

In April 1995, f irst gas f low from Bach Ho field was brought to land with a capacity of 1 million m3 of gas/day to supply Ba Ria Power Plant. This he lped to reduce huge s ta te budget expenditures in foreign currency to

After 40 years of establishment and development, the Vietnam National Oil and Gas Group has grown into a leading economic group in Vietnam, contributing to the assurance of national energy security. As a leading member of PetroVietnam, PetroVietnam Gas Joint Stock Corporation (PV GAS) orientated strategies are developing the gas industry into a leading economic engine, gradually stepping into the world market, securing a high ranking in the ASIAN gas industry, and becoming one of the strongest gas brands in ASIA in 2025. Mr. Duong Manh Son, Member of the Board of Directors, President and CEO of PV GAS has provided Hydrocarbon Asia his views on this issue!

In theSpotlight


import diesel oil as a traditional fuel for power plants. With the completion of offshore gas compression plat-forms and an onshore gas pipeline system, PV GAS increased gradually the pipeline capacity up to 3 million m3 of gas/day in 1997, and over 5 million m3 of gas/day in 2002 to transport addi-tional gas sources from other fields of Cuu Long basin.

By the end of 1998, Dinh Co Gas Processing Plant and Thi Vai Terminal came in to operat ion and began to supply LPG and condensate for the Vietnam market for the first time. This marked a great significance in terms o f t e c h n i c a l , e c o n o m i c a n d s o c i a l developments.

In December 2002, the first gas flow from Nam Con Son basin was brought to land and transported to consumers, increasing significantly the gas outputs of PV GAS supplies. After that, the Nam Con Son basin gas system has received additional gas supply from other fields and become the highest capacity gas system with a capacity of over 8 billion m3 of gas per year. Nam Con Son basin gas system and Cuu Long basin gas system have created an important gas system infrastructure for the key economic triangle of Ho Chi Minh City - Dong Nai - Ba Ria Vung Tau in the Southeast.

On 11 May 2007, first gas flow from PM3 field was brought to land to supply p o w e r a n d f e r t i l i z e r p l a n t s i n C a Mau. PM3-46 Cai Nuoc Gas pipeline system with a capacity of 2 billion m3 of gas/year, has contributed to the e c o n o m i c d e v e l o p m e n t o f C a M a u

Province and Mekong River Delta.

In August 2015 , PV GAS put the Ham Rong - Thai Binh gas ultilisation system into operation with a 25km off-shore and onshore gas pipelines and design capacity of 500 million m3 of gas/year, initiating the development of gas consumption in the Northern Vietnam in the coming years.

PV GAS has gradually expanded and completed gas system constructions, o p e r a t e d T h i Va i R e f r i g e r a t e d L P G Storage - the most modern LPG tank system of Vietnam currently; expanded CNG production capacity to provide for markets being far from Gas pipeline networks. Conducting the investment preparat ion and implementat ion o f large-scale projects such as: Block B - O Mon Pipel ine Pro ject , Nam Con Son Pipeline 2, Gas Processing Plants Ca Mau and Nam Con Son 2, Gas Gathering Pipelines - Su Tu Trang field, Thi Vai LNG Import Storage Terminal, Son My LNG Import Storage Terminal, Thai Binh - Ham Rong Gas Project.

Q: What are the future goals of PV GAS?

Mr. Duong Manh Son: To develop PV Gas to have an im age of strength, safety, quality, effectiveness, modernity, cover-ing a complete scope of the whole chain such as: Gas gathering, transporting, processing, storing, trading, services, export and import; to focus on boosting investment in the infrastructure of the gas industry nat ionwide .

To achieve growth rate of revenue: be-tween 18 - 20% per year, of which: Revenue

In theSpotlight 10 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.com

from gas is 61%, from gas products 17% and from services 22%.

Q: Can you tell us, to deal with the challenges in the coming period, how does Vietnamese gas industry have to innovate technology?

Mr. Duong Manh Son: In the near future, the Vietnam gas industry will face challenges related to the decline in domestic gas production while demand is continuing to rise. This requires long-term solutions, application of modern technologies to supplement gas supply sources, expand markets, improve gas usage, efficiency, increase profits and business sustainability.

To supplement the gas supply, we need to research and implement meas-ures to diversify gas supplies, first of all is to implement importation of LNG drast ical ly. Also , we need to boost research of technological applications and put in the production gas sources having high contents of inert gas, im-purit ies or small/marginal/offshore fields; non-traditional sources of CBM gas, coalif ication gas. This is also a general trend to develop new gas sup-ply sources in countries which have features like Vietnam, which we are interested in implementing.

In addition to supply gas for power production in order to ensure energy security, PetroVietnam/PV GAS will thoroughly advocated enhanced re-covery of valuable products from gas processing plants (such as ethane, propane, butane, condensate); from a certain amount of gas for processing, producing products with high added

value, serving industry development in Vietnam such as ammonia, methanol, plastics PE, PP, PVC, PS, etc.

Wi t h a l e a d i n g e c o n o m i c ro l e i n Vietnam, PetroVietnam/PV GAS will take the lead in applying new modern tech-nology, saving energy and protecting the environment. Currently, over 80% of natural gas is provided to produce electricity, with the new generation of gas power plants (combined cycle), raising the efficiency of energy usage by ~ 50%. However this number is still quite modest.

To improve this problem, PetroVietnam/PV GAS are interested in research and technology applications combined power generation and using up thermal waste for different purposes in order to rise the thermal efficiency of the plants by 70 - 80%. In addition, studies of CO2 recovery from emissions from power plants, supplying gas for transportation to help protect the environment are also focused area.

Q: What main motivation of technol-ogy in the last 5 years has created the breakthrough development of the Vietnam gas industry?

M r. D u o n g M a n h S o n : To a c h i e v e these outstanding achievements in the past 5 years, the application of science - technology really became the main d r i v i n g f o rc e f o r t h e d e v e l o p m e n t o f t h e g a s i n d u s t r y. P V G A S h a s successfully applied technical solutions, modern technologies to manage, op-erate, maintain and protect existing gas constructions such as monitoring and control systems, DCS, SCADA,


ROV, smart spindle launch, satellite navigation system, the method of anti-corrosion, pipeline protection, man-agement of materials and equipment and O&M Maximo. The Corporation has developed the processes, plans, equipped with facilities and modern technical equipment allowing allow-ing us to overcome the problems re la ted to gas pro jec ts quick ly and effectively, ensuring continuous and sa fe gas supply.

F o r t h e i m p l e m e n t a t i o n o f n e w projects, PV GAS has always taken a proactive approach, researching and selecting new innovative and efficient technologies, that are consistent with Vietnam's conditions, to ensure that the projects will achieve the best re-sults, especially those related to tech-nology for storage, distribution and usage of LNG - the new fuel source in Vietnam.

Furthermore, the workforce of PV G A S i s c o n s t a n t l y t r y i n g t o l e a r n , gain experience, master the technol-ogy, promote innovation in operating systems and gas projects, successful-ly contributing to many innovations, production rationalization measures to improve the operation of the gas projects, improving labor productiv-ity, operating capacity of gas systems and increasing gas product recovery with high economic value.

Q: What message does PV GAS want to convey to the regional and global gas industries?

Mr. Duong Manh Son: International integration is an inevitable trend. Par-

ticularly in taking into account this context, Vietnam is integrating deeply into the global economy through the signing of new trade agreements. As the flagship unit of the gas industry in Vietnam, PV GAS has also identi-fied as one of the development goals the need to be actively involved in the international market.

In recent years, PV GAS has been ac-tively participating in the international gas industry market, being a reliable customer/partner of large gas groups across the wor ld , such as Gazprom (Russia), Adnoc (UAE), Astomos (Ja-pan). Nam Con Son Gas Pipeline Com-pany is being operated successfully and effectively by joint business be-tween PV GAS, Rosneft and Perenco; LPG import activities from the Middle East and other countries in the region are featured examples of successful cooperation of PV GAS with foreign partners.

In the future, PV GAS will focus on building relationships at many levels of cooperation with international part-ners to implement investment projects as well as in production and business activities, based on equal cooperation, mutual benefit and the strengths of each party, to develop stably and sus-tainably. PV GAS is striving to move up to the top 4 companies based on annual gas business production in the ASEAN region by 2025, and named in the list of major gas companies of Asia.

HA


CompanyFocus

REPORT

PV GAS and potential for co-operation in LNG import projects

P etroVietnam Gas Joint S t o c k C o r p o r a t i o n (PV GAS) is seeking partners to invest in

a high-priori ty l iquefied natural gas (LNG) import p r o j e c t s . T h e p r o j e c t i s o f n a t i o n a l i m p o r t a n c e a s Vi e t n a m ' s e n e r g y r e -quirement is expected to grow beyond the capacity of current supply over the next 10 years.

Gas shortage in the South of Vietnam is forecasted to be 1 billion m3 in 2020 and increase to over 5 billion m3 in 2025. LNG will play an im-portant and profitable part in meeting that demand.

The LNG import project offers an unique opportunity f o r i n v e s t o r s w h o h a v e strong financial capabilities, competency in long term LNG supply and experience in developing gas markets to get involved at the beginning of Vietnam's LNG industry development.

PV GAS has been ap-pointed by its parent com-pany, Vietnam Oil and Gas Group (PVN), to develop two projects - Thi Vai LNG

receiving and regasification terminal, and Son My LNG receiving and regasification terminal.

The Thi Vai LNG terminal in Ba Ria Vung Tau, southern province of Vietnam, is the first, and the smaller, of the two terminals. It will have a capacity of 1 million tons per year and is scheduled to be completed by 2020. Thi Vai has completed its Front End Engineering Design (FEED) bid and is ready for the next stage. The project aims to supply LNG to industrial customers and independent power plants.

The larger Son My LNG i m p o r t t e r m i n a l w i l l b e located in Binh Thuan, and is expected be operating by 2020 to 2022 with initial capacity of 3 .6 mi l l ion tons per year to supply to power plants in the Son My area. PV GAS is working on the feasibil-ity study of the project. The total investment for the Son My project is estimated to be more than USD1.3 billion. The terminal’s capacity is p l a n n e d t o u p g r a d e t o 6 million tons per year and 10 million tons per year af-

ter 2025 to supply gas to power plants, industrial cus-tomers and other customers in the South Central and the South of Vietnam.

PV GAS is the sole and larg-est gas entity in Vietnam hav-ing extensive experience and expertise in the gas value chain. It is among the top 10 corporate income taxpayers of Vietnam. Vietnam is one of the fastest-growing Asian economies in recent years and is still in its golden period of economic growth.

Low labour costs, alongside an increasingly skilled and educated workforce, mean manufacturing is booming in Vietnam, leading to rising demand for industrial power. At the same time, growing domestic energy consumption is underpinned by rising living standards.

PV GAS’s objectives are to develop a strong, safe, high quality, effective and modern gas industry with a holistic operating range in all stages from gathering, transporting, s t o r i n g , p ro c e s s i n g a n d d i s t r i b u t i n g g a s a n d g a s products.

CompanyFocus

HA

LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2016 LNG Marine Fuel Fo-rum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG

Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Ma-rine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2015 LNG Marine Fuel Fo-rum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG

Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Ma-rine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2015 LNG Marine Fuel Fo-rum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG

Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG

Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Ma-rine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Fo-rum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG













Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG LNG Ma-rine Fuel Forum 2015 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine Fuel Fo-rum 2016 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG Marine Fuel Forum 2015 LNG



Marine Fuel Forum 2016 LNG Marine Fuel Forum 2016 LNG Marine

• PolicyandStrategy• PricingandConsumptionForecasts• AnOil&GasCompanyView• TheInvestmentFramework• ALegalPerspective• ABankingPerspective• Certification• Environment&Safety

• ApplicationsandEconomics• ProductionandDistributionTrends• LNGFueledOffshoreVesselDesignandEquipment• OperationalEconomics• PracticalExperience• LNG–HandlingandDistribution• LNGBunkering• LNGTechnology

PetroMin,Hydrocarbon Asia,theleadingmagazinesintheOil&GasindustryinAsia,areorganizingthe2nd LNG Marine Fuel Forum,whichwillbeheldinSingaporeon10-11May2016.

TheTechnicalCommitteehasselectedtheTHEME:“ASIAN LNG - Forging Ahead in the Marine Industry”.

“ The MPA is working on various fronts to develop LNG bunkering in the Port of Singapore…and also launched the S12million funding for players seeking to build vessels capable of using LNG as a marine fuel. A technical committee formed under Spring Singapore’s National Standardization Program is in place to develop standard procedures and technical operations for LNG bunkering operations. To ensure overall development of LNG bunkering across the globe, the MPA has also signed MOUs with the Ports of Antwerp, Zeebrugge and Rotterdam and will be looking into the harmonization of LNG bunkering procedures. ”

Dr. Parry OeiDirector Port Services and Chief Hydrographer, Maritime Port Authority of Singapore (MPA)

CONFereNCe CHAIrMAN AND TeCHNICAL COMMITTeeWong Toon Suan,MDofONEBLUE;ExecutiveAdvi-sorofILO,NationalUniversitySingapore;ConferenceChairmanelsie Tang,ConsultantofDNVGLMaritimeAdvisory(Singapore)rolv Stokkmo,ManagingDirectorofGasPartners

Denis Welch,ChairmanofOneWorldMaritimePteLtd;IMCARegionalDirectorAsiaPacificTesch Alexander,DirectorofSalesMarine&Offshore,MTUAsiaAbul Bashar Md Masum reza, Asst.PrincipalRe-searchEngineer,KeppelOffshore&MarineTechnologyCentre(KOMTech)

CONFereNCe TOPICS

The technical committee invites you to present papers in this conference. The conference will be an excellent platform for the authors and speakers to address a highly sophisticated and experienced audience.

Theabstract,whichshouldnotexceed400words,shouldbesenttousviaemail.Thecommitteememberswillreviewthewrittenpaperstoensurethatthecontentisinlinewiththeobjectiveoftheconference.Pleasenotethatpapersofapurely marketing / commercial nature will not be considered.

Forthebenefitoftheindustry,selectedpaperswillbepublishedinHydrocarbon Asia MagazineorPetroMin(inprint)andwillalsobepresentedonthewebsite.

Forabstractsubmissionandfurtherinformationpleaseemail:[email protected] / [email protected]

Organised by:

LNG Marine Fuel Forum 2016Theme: AsiAn LnG - Forging Ahead in the Marine industry 10 - 11 May 2016 • Singapore

CALL FOR PAPERs

AbstractSubmissionDeadline15 January 2016 FinalPaperSubmissionDeadline15 March 2016


Regional Feature

REPORT

LNG a Boon for Australia

Australia is rich in com-modities, including fos-sil fuel and uranium reserves. It is one of

the few countries belonging to the Organization for Economic Cooperation and Development (OECD) that is a significant net energy exporter, sending nearly 70% of its total energy produc-tion (excluding energy imports) overseas, according to data from Australia's Bureau of Resource and Energy Economics (BREE).

The majority of revenue in the Petroleum Refining and Petroleum Fuel Manufacturing industry is

generated by four major oil refiners that process crude oil into a range of fuels and secondary products for downstream markets. The purchase of crude oil by major players dominates the industry's cost structure. This input cost, in conjunction with exchange rate movements, contributes to significant revenue volatility as movements in the world price are passed on to domestic markets in little over a week.

Australia is a net importer of both crude oil and oil products because its consumption of both energy sources exceeds overall

production. In 2013, net crude oil imports were 253,000 bbl/d, and net product imports were 325,000 bbl/d, according to the Australia's Bureau of Statistics data. The country's northern and northwestern regions rely on oil product imports resulting from the lack of sufficient regional refining capacity, while the eastern side imports crude oil for its refineries and domestic markets. Singapore supplies about 47% of Australia's oil product imports, with the most of the remainder coming from refiners in Japan and South Korea. Most crude oil imports are from

Regional Feature

This regional report focuses on Australia, the largest energy entity in the Pacific Rim. Despite refinery closures in the last few years, Australia is gas rich and a leading LNG exporter.

The industry is in a decline phase of its life cycle. Several refineries have closed in the past five years causing produc-tion volumes to decline significantly as the indus-try’s production sites fail to keep pace with newer and larger facilities in the Asia-Pacific region. Some major players have chosen to renew their refineries supplying Australia in neighbouring countries, converting older, domestic plant to fuel import termi-nals. The lower production costs and technological ef-ficiencies of international refineries have resulted in the industry’s declining market share.


Malaysia, United Arab Emirates, and Indonesia, which altogether produced about 48% of the total imports in 2013. Another 20% of crude oil imports comes from West Africa, as Nigeria, Congo, and Gabon have increasingly supplied crude oil to Australia in recent years.

According to FGE, Australia had 6 major refineries at the beginning of 2014, with a total crude oil re-fining capacity of 634,000 bbl/d operated by BP, ExxonMobil, Shell, and Caltex Australia. Scheduled refinery closures will reduce this capacity to 414,000 bbl/d by the end of 2015. Crude oil feedstock for these refineries comes from domestic oil produced in the Bass Strait offshore of southeastern Australia and from the coun-try's crude oil imports. Refining throughput meets an estimated 56% of domestic demand, accord-ing to FGE. As refining capacity diminishes in Australia, this share will also decline as petroleum product imports increase.

Australia's refining margins have tightened, and the major refiners are taking financial losses as a result of increasing refinery competition within Asia, Austral-ia's escalating labour and operating costs, stricter environmental standards on fuels, and higher prices of imported crude oil. Aus-tralia's refineries are small and dated compared to the larger and more com-plex refineries being built within Asia.

These unfavourable eco-nomics have pressured operators to close several facilities and convert some of them to oil product im-port terminals. ExxonMo-bil closed its 80,000 bbl/d Adelaide refinery in 2003.

Shell also shut down the 85,000 bbl/d Clyde refinery, located near Sydney, in late 2012, which had contributed to Australia becoming Asia's top diesel importer. Planned closures include Caltex's 125,000 bbl/d-Kurnell refinery located near Sydney by the end of 2014 and BP's Bulwer Island facility by mid-2015. Shell announced the sale of its 105,000 bbl/d-Geelong refinery to oil trading company Vitol in 2014, leaving the fate of this refinery uncertain. Overall, these refinery closures represent about half of the capacity in operation a decade ago, and these closures will likely lead to increases in the country's petroleum product imports, particularly for diesel, gasoline, and jet fuel.

Australia has become a leading LNG exporter in the Asia-Pacific region in the past decade. Greater ex-pected natural gas produc-tion and new LNG capacity in the next few years is likely to boost natural gas exports even more.

As a result of its abundant gas resources and its geographic prox-imity to consumer markets, Aus-tralia has become a leader of LNG

supply for the Pacific basin. Over the past decade, Australian LNG exports have increased nearly three times, and they are expected to rise substantially in the medium term as developers usher in new upstream and liquefaction capaci-ty. Australia, the third-largest LNG exporter in the world behind Qatar and Malaysia, exported 1,070 Bcf of LNG in 2013, up from about 990 Bcf in 2012, according to IHS Energy. Australia exports natural gas almost exclusively to Asian markets, with Japan purchasing about 80% of Australia's exports in 2013, mostly through long-term contracts. Other key consumers include China, South Korea, and Taiwan. Japan's demand for LNG rose in 2011 when natural gas-fired generation was substituted for the lost nuclear capacity fol-lowing the Fukushima power plant accident. Australia became the largest source of LNG for Ja-pan by 2012. Chinese national oil companies (NOCs) have teamed with international oil companies (IOCs) on investments in several Australian liquefaction projects and signed gas purchase agree-ments to lock in supply for the growing market in China.

Australia has three LNG ex-port facilities with a total capacity of almost 1.2 Tcf per year. The largest is North West Shelf LNG, owned and operated by a consortium of Woodside, Shell, BP, Chevron, Japan Australia LNG, and BHP Billiton. The facility has five offshore LNG trains with a total capacity of 780 Bcf/y, and it relies on natural gas supplied from nearby fields in the North West Shelf (NWS). The ma-jority of LNG produced by the consortium is exported to Japan by long-term contracts. Darwin LNG,


Regional Feature

operated by the consortium of ConocoPhillips, Santos, Eni, IN-PEX, Tokyo Gas, and Tokyo Elec-tric (TEPCO) is Australia's second facility. It has one production train with capacity of 170 Bcf/y and exports LNG under contracts to Tokyo Gas and Tokyo Electric. Darwin, located on Australia's northern coast, is supplied with natural gas from the Bayu-Undan field in the Timor Sea. Pluto LNG is Australia's most recent terminal to come online in 2012. Located in the Northwest region, Pluto LNG has a capacity of more than 200 Bcf/y. Woodside is discussing ex-pansion plans for Pluto LNG, but difficulties procuring additional gas reserves nearby and rising project costs pose challenges to the expansion moving forward.

As new LNG facilities and ex-pansions of existing facilities come online within the next decade, Australia's LNG export capacity is set to expand substantially. Most of the liquefaction projects are located in the coastal or offshore northwestern Australia and in the northeastern Queensland region. Some projects such as Ichthys are designed to produce associated condensates and LPG. Currently, there are 7 projects under con-struction with a total capacity of 3 Tcf/y, 3 in Queensland and 4 in the basins of the northwest coast and offshore. These projects are sched-uled to commence operations by 2017. Other projects are waiting on regulatory approval or final invest-ment decisions, although these projects are facing competition and delays because of escalating costs and potential overcapacity for the amount of available natural gas supply. Australia currently has more than $190 billion worth of LNG projects under construc-tion, and the country is on target to overtake Qatar as the world's largest LNG exporter by 2020, ac-cording to industry sources.

Australia Existing and Planned Export Liquefac-tion Terminals

CBM-to-LNG projects have become feasible with the sizeable amount of gas reserves associated with the coal production. Queens-land Curtis LNG could become the world's first LNG project of this kind, with two neighboring projects under construction and two other projects waiting on final investment decisions. Even though many companies are lev-eraging the vast CBM resources in Queensland to convert the fuel to LNG, CBM projects pose unique challenges to production. There are typically more hurdles for environmental approval. Also, CBM wells produce much less than traditional gas wells and ramp up to peak production over

a much longer period, according to PFC Energy.

Australia's burgeoning LNG industry faces acute capital cost escalation requiring much larger investments for new greenfield projects and has delayed or can-celled some proposed projects. According to FGE and IHS Energy, cost increases are attributed to a number of factors such as labor shortages and resultant high wag-es, high material costs and changes in engineering requirements, ap-preciation of the Australian dollar to the U.S. dollar between 2009 and 2013, greater environmental hur-dles because of stricter regulations, land rights issues, and the remote locations of some projects. Several projects have experienced notable cost inflation such as Ichthys, Gor-


gon, Wheatstone, Gladstone, and Queensland Curtis. Pluto LNG also incurred budget overruns by 30% from its original financial investment decision (FID) in 2007. Ichthys LNG, sanctioned in 2012, is currently the world's most ex-pensive liquefaction project on a per unit basis, and Chevron's Gorgon LNG project cited cost increases of 46% in U.S. dollar terms since the project's final investment decision, from $37 billion to $54 billion.

Some of the economic and re-source constraints have caused several equity partners to pri-oritize and reduce their project portfolio stakes and even exit some projects. Also, some neigh-boring projects face competition with each other for contracted

gas supply and limited natural gas production especially in the eastern part of Australia. In Aus-tralia's high-cost environment, international companies are begin-ning to target their investments towards projects in more advanced stages and could shift focus to the expansion of existing facilities or projects currently under construc-tion versus new projects in the planning phase. In 2014, Shell sold its 6.4% stake in the Wheatstone LNG project to partner, KUFPEC, a Kuwaiti company and decided to delay project development for Arrow LNG. As less expensive natural gas from Russia, the United States, and Africa is brought on-line and exported, Australia faces global LNG supply competition for projects that are not currently under construction.

To reduce project costs and to liquefy gas from fields that are far from shore, companies are turning to the floating liquefied natural gas (FLNG) terminal design, which is less expensive than the cost of an onshore plant. Prelude LNG, located in the Browse Basin off the northwest coast, is slated to become the world's first FLNG terminal by 2017 by using a new technology developed by Shell. Woodside decided to convert Browse LNG from a land-based terminal to a floating terminal in 2013 to reduce the massive project costs. Gaz de France and Santos cancelled the Bonaparte LNG project in 2014. Despite the FLNG design of Bonaparte LNG, the companies determined that the rates of return on investment were too low based on the project's ris-ing costs and small gas resource base. Natural gas from the fields may be able to feed other more advanced LNG projects or piped to the domestic market.

ReferencesAAP NewsfeedABC.netAPA Group (APA)Asia PulseAustralian Bureau of Resources and Energy Economics (BREE)Australian Bureau of Statistics (ABS)Australian Petroleum Produc-tion and Exploration Association Ltd. (APPEA)Energy Intelligence FinanceFACTS Global EnergyIBIS WorldIHS EnergyNewsbase Asian OilPFC EnergyPlatt's Oilgram NewsReutersRigzone NewsSantosThe AustralianU.S. Energy Information Ad-ministration HA

Plans for $700m Gladstone Oil Refinery Revealed

Plans are being drawn up to build Australia's first major oil refinery in 50 years in central Queensland. The United States based Eagle Ford Oil and Gas Corpora-tion and Australia's Casper Energy will jointly develop the $700 million project near Gladstone.

Initially the refinery would produce 43,500 barrels a day, turning crude oil into high quality diesel and premium gasoline. The companies said it will help produce a secure fuel industry for Australia and price competitiveness.

In 2014 about 60 per cent of all liquid fuels consumed in Australia were imported, the companies said in statement.

"In the very near future Australia is expected to

have only four of an origi-nal eight oil refineries with a combined capacity of only 490,000 barrels per day versus demand of over 1.25 million barrels per day," the companies said. "Diversity in crude processing capabil-ity reduces the likelihood of exposure to risk of supply in-terruptions due to economic and political volatility in world markets."

Gladstone Mayor Gail Sellers said the refinery would buoy the town's em-ployment as the construc-tion of liquefied natural gas plants on Curtis Island wound down.

The project could create 1,000 construction jobs and 300 operational positions.

"This is an amazing project and just what Gladstone needs, another little boost for us," she said.


IndustryOverview

Asian Refining & Marketing 2016 Outlook

The report proposes that the 2016 Asian refining and marketing outlook will be stable. This is because low

oil prices and easing capacity over-hang will keep margins healthy.

EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization'

EBITDA is an indicator of a company's financial per-formance which is calculated in the following manner:

EBITDA = Revenue - Expenses (excluding tax, interest, depreciation and amortization).

EBITDA is essentially net income with interest, taxes, depreciation, and amortiza-tion added back to it, and can be used to analyze and com-pare profitability between companies and industries because it eliminates the effects of financing and ac-counting decisions.

The report has divided the sec-tor’s outlook into three categories – negative, stable and positive. A negative industry outlook indi-cates our view that fundamental business conditions will worsen. A positive outlook indicates that we expect fundamental business conditions to improve. A stable industry outlook indicates that conditions are not expected to change significantly. Since indus-try outlooks represent our for-ward looking view on conditions that factor into ratings, a negative (positive) outlook indicates that negative (positive) rating actions are more likely on average.

Proposed OutlooksA modest EBITDA growth and

easing capacity overhang support a stable outlook.

NegativeThe following are the factors

that could change the sector’s outlook to negative:

• Net refining capacity addi-tions in Asia materially out-pace demand growth, leading

us to project a 10% or more decline in industry EBITDA.

• Contraction in refined prod-uct demand from China and India.

StableThe industry’s EBITDA will

grow by around 1%-3%through 2016, driven by healthy petroleum product demand and stable refin-ing margins.

The following are the factors that could maintain the stability of the sector’s outlook:

• Capacity overhang will ease, helped by refinery closures in Japan, China and Taiwan. We expect demand growth, albeit weakening, to match or marginally exceed capacity additions.

• Asian refining margin will stay healthy at $7-$7.5 per bar-rel, as lower oil and petroleum product

prices push buyers to build re-fined product inventory, thereby

REPORT

IndustryOverview

Moody's says that the Asian refining and marketing outlook remains stable and low oil prices and easing capacity overhang will keep margins healthy. Industry’s EBITDA will grow by around 1%-3% through 2016, driven by healthy petro-leum product demand and stable refining margins. This article is an adaptation of Moody’s latest presentation “Refining & Marketing –Asia: 2016 Outlook –Modest EBITDA Growth and Easing Capacity Overhang Support Stable Outlook”.


boosting demand.

PositiveThe following are the factors that

could change the sector’s outlook to positive:

• Demand overwhelms capacity additions such that refining margins exceed $8 per barrel on a sustained basis, leading us to raise our EBITDA growth projection to 10% or more.

Factors Affecting OutlookA critical factor is the current

oil price slump. The low oil prices and easing capacity overhang will keep margins healthy.

Key credit themes are as follows:• Weaker Chinese demand re-

mains key risk.

• Lower crude price environ-ment will keep feedstock costs and working capital require-ments low for refiners.

• Export-oriented refiners are most vulnerable to slowing Chinese demand.

• Further inventory valuation losses in 2016 will be low as oil price stabilizes.

The modest EBITDA growth drives stable outlook. EBITDA will grow 1%-3% in 2016, helped by healthy demand for refined oil products. Liquid fuels consump-tion in Asia Pacific will likely rise 1.8% in 2016 to 31.6 million barrels per day (bpd), according to the US Energy Information Administra-tion (EIA).

On a more sobering note, the weaker Chinese demand remains a key risk.

China is a major importer of

petroleum products, accounting for around 36% of total Asia Pa-cific demand. However, China’s demand growth for refined oil products will stay around 3%-4% through 2016, compared with 4%-6% over 2011-13 and 3%-4% in 2014. Although India’s demand growth will pick up to 5%-6% as the domestic economy improves, the growing demand in India will not fully offset slowing growth in China.

Supply Rationalization Will Ease Capacity Overhang

It is important to note that over-supply is easing up. Net capacity additions of 0.7 million bpd will

likely fall below EIA’s demand growth forecast of 0.9 million bpd through 2016. The current capacity rationalization will persist, further easing supply pressures.

Capacity overhang will ease, helped by refinery closures in Japan, China and Taiwan. We expect demand growth, albeit weakening, to match or marginally exceed capacity additions. Asian refining margin will stay healthy at $7-$7.5 per barrel, as lower oil and petroleum product prices push buyers to build refined product inventory, thereby boosting demand.

Project delays include Indian Oil Corporation’s (IOC, Baa3 positive) Paradip refinery which


IndustryOverview

was scheduled to commence production in 2012 but is now likely to come on-stream in late 2015.

Still, faltering demand in Asia means demand growth will only match or marginally exceed ca-pacity additions in 2016.

Asian Refining Margins Will be Healthy in 2016

The regional benchmark Sin-gapore complex refining margin will remain healthy, averaging $7-$7.5 per barrel in 2016 com-pared to around $6 per barrel in 2013-2014. This follows the strong performance in 2015 where the Singapore complex will likely average $7.5-$8 per barrel for the full year.

The refining margin will be supported by higher demand from the building of product

inventory, which drives up sell-ing prices relative to low crude feedstock prices.

Export-Oriented Refiners Are Most Exposed

Even as China’s demand growth slows, its refiners have ramped up capacity and export

volumes across product types, putting further pressure on Asia’s oversupplied markets. Export-oriented refiners GS Caltex Corporation (GSC, Baa3 positive), SK Innovation Co. Ltd. (SKI, Baa2 stable) and S-OIL Corporation (Baa2 stable) are the most exposed.

In 1H 2015, more than half of the Korean refiners’ sales revenue came from exports of petroleum and petrochemical products. Around 10%-15% of the Korean players’ sales rev-

enue are derived from China, thus making them vulnerable.

Refiners Benefit From Lower Working Capital

Lower crude price environ-ment will reduce refiners’ feedstock costs and minimize working capital requirements in 2016. The lower work-ing capital consumption and healthy earnings will in turn boost cash flows from opera-tions, which can be used to re-duce borrowings.

India’s IOC, Bharat Petro-leum Corp. Ltd. (BPCL, Baa3 positive) and Hindustan Pe-troleum Corp. Ltd. (HPCL,

Weaker Chinese Demand Remains a Key Risk

• China is a major importer of petroleum products, accounting for around 36% of total Asia Pacific demand.

• China’s demand growth for refined oil products will stay around 3%-4% through 2016, compared with 4%-6% over 2011-13 and 3%-4% in 2014.

• India’s demand growth will pick up to 5%-6% as the domestic economy improves.

• But growing demand in India will not fully offset slowing growth in China.


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Have you readour other magazine?

see us on the web athttp://www.safan.com

unrated) reduced their debt levels in the past 12 months.

Refiners Will Not Face Fur-ther Inventory Valuation Losses in 2016.

Based on our 2016 Brent crude price assumption $53 per bar-rel, we do not expect further declines in oil prices from late-2015 levels.

Thai Oil Public Company Limited (Baa1 stable) and IRPC Public Company Limited (Ba1 negative) are unlikely to be hurt by further inventory valuation losses in 2016. Such losses occur in a scenario of plummeting oil prices where inventory values fall because of the time lag between procurement of feedstock and the actual product sale.

Regional refiners recorded a significant inventory valuation loss when oil prices collapsed in 2014 and declined further through 2015.

This periodical thanks Vi-kas Halan, a Moody’s Vice President and Senior Credit Officer, for providing this re-port for publication. Moody's is an essential component of the global capital markets, providing credit ratings, re-search, tools and analysis that contribute to transparent and integrated financial markets. Moody's Corporation (NYSE: MCO) is the parent company of Moody's Investors Service,

which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which offers leading-edge software, advisory services and re-search for credit and economic analysis and financial risk management. The Corpora-tion, which reported revenue of $3.3 billion in 2014, employs approximately 10,200 people worldwide and maintains a presence in 35 countries.

22 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.comBottomline

Driving Up Profitable Downstream Dollars

Advanced planning soft-ware delivers greater profit -capitalising on potential downstream

dollars is essential to remain competitive in the energy in-dustry. Shifting demand pat-terns caused by volatile crude prices and new crude oi l sources can greatly affect the profitability of a refinery. Therefore, planners must adapt quickly to navigate the fluctu-ating economic storm. The use of advanced and innovative planning software can make the difference to easily identify more robust planning solutions for a true global optimum.

The mismatch between sup-ply and demand, however, has led to a global glut of oil. On the supply side, turmoil in the Middle East has not stifled production. There has been no reduction in output from places like Saudi Arabia or other Gulf states. The strong growth of US tight oil in shale gas feedstock is increasingly moving westward to the east. Demand on the other hand in areas like Europe is reduced

due to weak economic activity and the move to renewables. The global spare refining capacity is already above its low in recent years, which indicates that there will be a long period where refineries are being forced to reduce plant capacity, whilst they are struggling to be operationally efficient. The trend for energy demand growth in China and India continues, but the long-term future is uncertain.

Securing every possible dol-lar available downstream can be achieved by implementing advanced planning software, which provides the answer to the burning day-to day plan-ning questions, such as “which c ru d e s t o b u y ? ” “ W h i c h products to make?” “How to capitalise on new crudes and feedstock on the market?” “How to effectively manage a complex crude slate with limited storage?” Innovative software helps to make the right decisions, increase ac-curacy in yield predictions and reduce model maintenance for optimal refinery planning.

Making Good Crude Purchase Decisions

Determining which crudes will be most profitable to run and anticipating product demand requires the best planning tools to make quicker and more profitable decisions. Reacting to discrepancies between the plan and schedule is also vital to fully exploit profitable deci-sions in the supply chain and also be able to capitalise on newly available feedstocks like global shale plays.

The challenge is that with new crudes and feedstocks on the market, what is the most effec-tive way to manage a complex crude slate with limited storage capacity? Which crudes will yield the most profitable prod-ucts? With options comes com-plexity and decisions become much more difficult. For exam-ple, process units can be run in different ways to make different products. As the price of crude changes, those refineries famil-iar with running “dirty” crudes might change their operations now that the lighter, sweeter crudes are less expensive. Spot

REPORT

Bottomline

The article highlights that being able to quickly analyse and produce different scenarios delivers swift results. By opening the gateway to a world of new opportunities, refineries are better equipped to explore even more ways to optimise their planning, grow the business and boost profit.


crude opportunities too could become available that the refin-ery might consider purchasing. Therefore, the planner has to be agile enough to determine if the crude is suitable and how to change the plan to accommodate the new feedstock.

Exploiting Feedstock Flexibility With powerful planning

tools, planners can run more scenarios faster, gain more time for analysis and respond quickly to traders by making more robust decisions in a dy-namic environment. This will achieve a realistic and optimal target and achieve accurate planning that increases profit.

For years planners have used model-based planning systems, such as Aspen PIMS™ to help make more optimal decisions - the tool of choice used to plan 75% of the world’s refineries. However, historically it was challenging to find the elusive “global optimum” that spans across a large number of refin-ery operating conditions and different crudes types. Many times “local optima” are en-countered, which are sometimes difficult to identify. With Aspen PIMS-AO (Advanced Optimisa-tion), planners can now quickly determine a global optimum that leads to improved profit-ability of refineries.

In essence, there are three

key benefits to using advanced planning tools compared to standard applications:

• Performance: run more scenarios faster than ever

• Stability: reduce crudes logistics complexity by determining minimum number of crudes to run using the Feedstock Basket Reduction tool

• Optimum: easily determine the global optimum for the best possible solution

Companies have successfully reduced their run times from 30 hours to 90 minutes with Aspen PIMS-AO, which makes an enormous difference to reach-ing the decision point earlier in the process. Additional time can be spent to further analyse results and different scenarios. On a separate point, case com-parison runs have been known to reduce from 30 hours to only 18 minutes.

“By reducing our crude slate from seven crudes to five we made 15 - 20 cents more per barrel.”

– Multinational Oil & Gas Company

By using newly developed collaborative tools, this sophis-ticated software system enables planners to deliver optimal plans faster and more easily. They can visualise and evaluate multiple scenarios along with plant data to make better and more profitable decisions. It

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de-mystifies the plan by provid-ing clearly displayed data with an easy-to-use interface on a common platform available to all key stakeholders.

Capitalising On the Downstream Dollars

Getting an edge in the energy industry is essential in today’s market. The opportunity to capitalise on the downstream dollars is achievable with advanced planning software. Being able to quickly analyse and produce different scenarios delivers swift results. By open-ing the gateway to a world of new opportunities, refineries are better equipped to explore even more ways to optimise their planning, grow the busi-ness and boost profit.

This periodical thanks Nirmala Arifin, Director of Business Consulting and Allison McNulty, Pe-troleum Supply Chain Manager, AspenTech, for providing this article for publication.

24 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.comSafety

Transforming the Safety Culture

Change requires believers; people who are willing to deviate from the well-trodden path to carve a

new one. But that takes courage, effort, time and dedication. All of which Saudi Aramco Base Oil Company-Luberef decided to commit on a November day at the end of 2011 to improve the com-pany’s safety performance which had plateaued. In discussion with DuPont Sustainable Solutions (DSS) the company embarked on a journey to unlock its potential for an improved safety management system and best in class perform-ance compliance.

Luberef is the only base oil producer in the Kingdom of Saudi Arabia, supplying compa-nies such as Shell, Mobil, Caltex, Fuchs and Petromin Corporation. Founded in 1978, it now operates as a joint venture between Saudi Aramco and Jadwa Industrial In-vestment. It also exports the high quality base oil manufactured at its two refineries in Jeddah and Yanbu to more than 15 countries around the world. It is a fast grow-ing company, with significantly expanded production capacity at its Yanbu site planned to come online in 2016.

No More STOP-START SafetyIn anticipation of this planned

expansion, the question of how to bring about safety change became

critical in 2011. In 2003, Luberef had already tried to implement a safety management system by itself without help from others, but only achieved limited suc-cess. As Samir Khan, who was safety and security manager at the time and is now corporate risk coordinator and project manager for the safety culture transformation project, explains: “One could say that safety used to be ‘policed’. That was the culture in which Luberef had grown up. Safety was a discipline issue and considered to be the sole responsibility of the safety department. It was very hard to make people realize that safety is everyone’s responsibility.”

In describing the past work safety culture, Saad Saud Bukhari, a maintenance field foreman says, “We used to look for a solution after an incident had happened. The root cause was always hu-man error. The culture was one of attaching blame.”

Hussam Al-Johani, inspection engineer, says the result was that “people were afraid to report any unsafe conditions. They would by-pass procedures or safety require-ments in order to save time. People would only follow the safety rules in front of officials. For example, they would wear the safety belt only when they reached the main gate of the refinery.”

Abduhllah Banakhr, specialist mechanic, is equally forthright: “Hundreds of changes were implemented without proper review and without documen-tation. Near misses were not re-ported.” Initiatives would start and stop in isolation with no clear link between them. There was consequently only limited safety awareness at Luberef. Mr. Ibrahim Al-Faqeeh, vice-president manufacturing says: “The drivers of the safety effort did not really believe in it and consequently did not push it. As a result, the safety system was never adopted from the ground up. When I looked at incidents, I could see a link, but there was no proper system in place to make that link visible to everyone. That is why we ended up having repetitive incidents.”

All that came to a stop in 2011, when Luberef ’s president real-ized safety had to be tackled in an over-arching process with help from outside. As Luberef President and CEO Dr. Hasan Alzahrani says: “Safety is one of our core corporate values and an integral part of our strategic objective. As such we look at safety as a way of not only doing business, but rather as a way of life, because we want to be safe at work, at home and on the road. Our major challenge was not creating a safety management

REPORT

Safety

Saudi Aramco Base Oil Company-Luberef decided to commit on a November day at the end of 2011 to improve the company’s safety performance which had plateaued. This article is a case study of Luberef plant.


system or policy or procedures. Although these are imperatives for any successful safety pro-gram, our challenge was to estab-lish the mind-set, behaviors and culture needed to achieve and maintain safe actions and condi-tions. That is why we embarked on a journey to transform our safety culture. Our aim is to be a leading company for the sake of our people, properties, commu-nity and shareholders.” Luberef had worked with DuPont in 1994 on very successful manager and supervisor training. The decision was taken to call DuPont back in to study Luberef ’s culture and develop a systematic approach to safety management.

Integrated ApproachMr. Al-Faqeeh says: “Back in

2011, I was refinery manager at our Yanbu site. I really liked the comprehensiveness of the DuPont approach. It tackles all aspects of operational risk management in an integrated fashion from mechanical integrity to risk as-sessment, from management of change to contractor safety and more. I looked at their approach to safety and thought ‘This is what is missing. It has the potential to not only improve safety, but the whole manufacturing process.’’

DuPont carried out an ini-tial assessment of the Luberef sites in 2011 and subsequently made several recommendations. These ranged from developing safety leadership competencies to putting in place a best practice safety management system, train-ing all levels of the organization, setting up a self-maintaining safe-ty management structure, as well as a change in incident reporting and a move from tracking lagging indicators to measuring leading indicators as well.

“One day I will leave Luberef, When I do, I will leave behind an improved safety culture. That will be my legacy”. Mr. Ibrahim Al-Faqeeh, Vice-Presi-dent Manufacturing

Alan Walton, DuPont project manager, says: “It became clear that the key success factor of the project would be to move the Lu-beref organization from focusing on reactive indicators to predictive or proactive indicators. Based on DuPont’s observations, Luberef at the time had a high incident poten-tial. This would not be reduced if the company only addressed the efficiency of the safety manage-ment system and the safety culture itself. The company also had to act on the risks identified by improv-ing incident reporting, carrying out first and second party system audits and putting in place a strong behavioral observation program.” DuPont was very clear that these programs would only be success-ful if they were championed by senior leadership.

Obtaining Employee Engagement

DuPont introduced Luberef to the key elements of operational risk management. Each element was assigned a task team with a project leader. DuPont supported Luberef in its internal develop-ment of each of the 22 elements, training the task teams in best practice so that they could pass these learnings on to the wider Lu-beref teams. DuPont also helped Luberef to develop new stand-ards and procedures. Elements were introduced sequentially, with the final team, responsible for emergency preparedness and planning, starting work in December 2014.

“Luberef showed real commit-ment to the new safety effort,” Mr. Walton says. “Not just through active participation of the sen-ior leadership in regular safety observation visits and audits, but also by introducing all proc-ess safety elements during the design and construction phase of the projects and by including almost a third its workforce on project teams.”

Samir Khan believes this was necessary as there was initial resistance to the new safety program from different levels fearing the change in workloads and implementation difficulties. “At the beginning, they thought this was just another initiative that would stop as soon as the company president left and everything would revert back to the old way of working.” Mr. Al-Faqeeh confirms this. “People did resist. They were waiting to see if the project would fly or fail. We had to keep pushing. This project is like a messenger. To convert people, you have to be patient. You have to make them understand that everything has something to do with safety. Nothing is outside of the safety framework. It’s a 360-degree process.”

Dr. Alzahrani also emphasizes the need for full commitment from everybody in the organiza-tion. “We want to create buy-in at all levels. This starts with building awareness, then leads on to belief in the safety culture and develops into a passionate commitment. Only then can we say that we really have the buy-in of all our people.”

That is also why Luberef has made safety part of its employ-ees KPIs, formal appraisal and

26 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.comSafety

job plans. Even bonus payments are linked to safety targets. In 2014, achievement of safety KPIs accounted for 25% of every em-ployee’s bonus payment. This is just one way in which Luberef demonstrates the value leader-ship places on safety and sets clear expectations. It is of benefit to Luberef employees as well, as Mr. Khan points out. “We didn’t use to train and enhance safety management skills. Now we do. For our engineers, for example, this is an attractive addition to their professional CVs.”

Kannath Krishna Prasad, a me-chanical engineer at the Yanbu site, has seen a marked difference in employee engagement. “We have observed a continual improve-ment in the safety culture,” he says. “We started discussing the safety issues within our maintenance team. Also, our daily meeting now commences with a safety contact. 98 % of our employees attended the elearning program and re-certification is due within a year.”

Safety roles and expectations are now clearly communicated

to employees. Ailesh kumar Hir-vania, E&I superintendent for maintenance at the Jeddah site explains: “We conduct a tool box talk, explain the job safety analysis to the operators, conduct safety meetings and provide incident alert information. Although we had work safety before, it has become more organized and analyzed, and provides us with useful information.”

Khalid Zahrani, a lead operator says operators now have “better handover, better log sheets, are more aware of the importance of personal protective equipment (PPE) and are more aware of the risks of fatigue.”

Anas S. Al-Rasheed, a process engineer at the Yanbu site be-lieves “the general safety culture of the workforce has drastically improved over the past year. Op-erators and technicians are more careful when signing permits, isolating equipment and during daily routine jobs, but I believe that the safety culture needs to be polished from time to time to prevent it from getting rusty.”

Visible ChangesWith this amount of input

and focus on safety improve-ment, Luberef has already seen results. By November 2014, both the Yanbu and Jeddah refineries had operated more than seven million man-hours without incident. They had also both executed turnarounds without any LTIs.

By December 2014 the total process safety incident rate had dropped to 1, and the environ-mental incident rate, the total occupational health incident rate and the total recordable injury rate, for both employees and contractors, all stood at 0.

So much for the lagging indi-cators, but Luberef is also us-ing leading indicators to track progress and they show that both the Jeddah and the Yanbu site have proactively followed up safety observations with im-mediate actions to almost 90%.

The improvement in safety has a knock-on effect on productiv-ity and output, as Mr. Khan ex-plains: “If the plant is working safely, we save time. Our target for mechanical availability of the plant is 98 %. This year, we will achieve and may even exceed that target.” At both sites, Lu-beref is also doing considerably better than its targeted Mean Time Between Failures (MTBF).

This is not only visible to senior management, but also to employees at other levels. As Afsar Sherwani, process engineer at the Yanbu site says, “due to the work safety transformation, incidents and near misses overall have been reduced which results in an increase in production and a reduction in lost man hours.”


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Operations manager Sami Mulla backs this up with a concrete example. “We recently started up a vacuum unit. Before doing so we carried out a Prestart-up Safety Review (PSSR). We were sure we would have no more surprises with PSSR and carried out the start-up days earlier than normal. DSS has changed the way in which our company operates by 80 per cent.”

DuPont will carry out another progress assessment towards the first quarter of 2015, but the interim assessment from 2013 already showed a marked improvement in the relative cultural strength score of the manager population. In other words, managers are involved in and are experiencing change. The graph below docu-ments an increased involvement in safety improvement activities in Q8a, increased empowerment to take action in Q10, greater quality and effectiveness of safety meetings in Q12c and an improve-ment in the safety of physical facilities in Q20a.

Mr. Khan says incident investi-gation now captures root causes

and ensures preventative action is taken.

An Ongoing EffortMr. Al-Faqeeh is not one to sit

still. “I have come to realize that safety is not a destination, but a journey. We have seen a change in mind-sets and in safety per-ception, but we still have a way to go before employees manage safety independently. You can-not change people overnight. So, there is room to speed up the change process. However, I know now that there is no way back. We have passed the criti-cal stage and so many people are now committed to the new safety process that we will keep improving.”

He is not alone. Shift lead operator Khalid Zahrani says: “Safety is a core business value and integral to the very existence of the organization. It is obvious that there is a difference between before and after, but there is a need for further work, for more achievements.”

For 2015, Mr. Al-Faqeeh is adding new items to his safety

index. Luberef will be looking at contractor safety and will track more leading indicators. “One day I will leave Luberef,” Mr. Al-Faqeeh says. “When I do, I will leave behind an improved safety culture. That will be my legacy”.

ConclusionNeither behavioral solutions

nor technical, process-driven solutions alone are enough to manage operational risks. Our experience is that focusing on managing and reducing risk is more effective than simply driving compliance to systems or procedures. To achieve this, companies should adopt a truly systemic approach to risk man-agement that is reinforced by workplace culture, leadership, technical improvements and standards, capability develop-ment and strong, measurable management processes.

In this systemic approach, four elements – mindsets & behaviors, capability building, technical model and manage-ment processes work in tan-dem to achieve sustainable improvement in risk manage-ment. When pursued in concert, these elements will result in a self-reinforcing, metric driven system that positively influences individual behavior, enabling companies to best protect their employees, assets and ultimately, their earnings.

This periodical thanks Palaniappan Chidambar-am, Global Solutions Architect - PSM, DuPont Sustainable Solutions, for providing this article for publication.


IndustryOverview

Quality Management Training is Key

API: Who are the industry members that are seeking quality management training through API Spec Q1 and API Spec Q2 courses?

The API Spec Q1 and Spec Q2 have become buzzwords for the oil and gas industry, as well as for companies that service it, in terms of streamlining quality assurance and control processes. Not only do API Monogram licen-sees and applicants find the training as a mere part of their compliance to the specification, such companies are convinced that providing API Spec Q1/Q2 quality management train-ing across various departments within the or-ganization is essential. It helps teams to more efficiently and effectively implement their own QA procedures, based on the premise that the training lets various departments understand how their different roles and functions come together toward providing quality products and services. Initially, controllers, auditors, en-gineers and managers of quality and inspection departments are the first ones to request and seek training. Training is now widely requested as well by personnel who are involved in sup-plier evaluation, procurement, safety, risk man-agement, production, maintenance, customer relationship, lean manufacturing and process improvement, in addition to the more active

interest coming from management representa-tives and heads of organizations.

API: What goals are they trying to accom-plish through training? Why is quality so important to them? Why now?

Training courses, like the ones facilitated by API-U approved trainers, provide a working knowledge of the specifications. Even the foun-dation courses give not only an overview of the standards, but an application-based approach to how the specifications are implemented and how these affect the quality and business goals of the organization. The oil and gas industry, being a dynamic manufacturing-focused indus-try, follows standards and procedures that also change and evolve, as organizations always seek ways to improve production, reduce risks and exceed customer expectations. As such, specifi-cations are developed and inadvertently evolve as driven by the industry. Thus, it is important for quality management professionals to be edu-cated and be updated of such shifts in specifica-tions through proper training.

Demand for API Spec Q1/Q2 training is also driven by the fact that companies are now more customer-focused. Customers are wiser and de-mand a level of assurance on the quality of the

REPORT

IndustryOverview

The American Petroleum Institute spoke with Paulette Sangalang, Deputy General Manager of Operations at Haward Technology Middle East, API-U training provider, to discuss the importance of API Spec Q1 and Spec Q2 training and why companies have an increasing interest in understanding quality management excellence. Haward Technology will be attending and leading training courses at the API International Exposition on International Standards (AXIS) on January 13-15 in Kuala Lumpur, Malaysia.


products and services they procure; hence, they expect their suppliers’ compliance with these in-dustry quality specifications.

API: What are the top questions trainers get asked in training?

Some of the frequently asked questions during training are as follows: • What are the differences between the ISO

9001:2008 and the API Spec Q1/Q2?• What are the differences between the API Spec

Q1 vs API Spec Q2?• When is the Management of Change (MOC)

prepared?• Is the MOC supposed to be communicated to

the customer all the time?• How are critical suppliers classified?• What are the differences between contingency

planning and MOC?• What is the difference between design verifica-

tion and design validation?• What are the different legal requirements that

the company needs to be complied with?

API: In your opinion what does Spec Q1/Q2 cer-tification help them achieve?

The API Spec Q1/Q2 certification aims to im-prove the existing processes within the organi-zation that affect product realization and the provision of services to customers. The specs provide an eye-opening understanding of how even the smallest, or seemingly least-impor-tant part of the process, could affect safety and product or service delivery.

On the part of the customers, they understand the value of being assured of the products and services they pay for, knowing that these may have a direct effect as well on what they do. Hence, they will only go for suppliers and ven-dors who are API Spec Q1/Q2 certified. The cer-tification provides them with confidence that the monogrammed products and the procured services meet the highest standard of quality.

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On the part of the organization, employees who have received a proper training on the specs and who have implemented and com-plied with the same are proud to be a part of their organization’s success to meet global standards of quality and get certified. From the commercial point of view, the certification also has direct impact on the business and is an essential tool to maintain the company’s status as a preferred supplier or vendor by the cus-tomer. An API-registered or certified organi-zation shows their customers that they meet industry demands and are focused to provid-ing them with quality products and services. Internally, streamlining processes and produc-tion activities in compliance with the specifica-tions warrants quality outputs and continual improvement, while at the same time, reduces risks, promotes safety, ensures compliance to government and regulatory requirements, and provides customer satisfaction.

The industry has learned from lessons from the past, from the Gulf of Mexico oil spill to other recent accidents and plant explosions that have affected the business and communities for years. Getting trained, implementing the specifica-tions, and being certified aims to reduce such risks, and allow the oil and gas industry offer the consumers safer, better and more sustain-able products and services.


Downstream News

SOUTHEAST ASIA

INDONESIA

Indonesia's Donggi-Senoro LNG Aims to Triple Cargo Output in 2016

Indonesia's Donggi-Senoro liquefied natural gas (LNG) plant aims to produce 36 car-goes of LNG in 2016, up from an estimated 12 cargoes this year, the plant's president di-rector Gusrizal said in a press conference on November 30.

Out of the targeted produc-tion next year, 23 cargoes are expected to be sold to long term buyers, and the remaining

13 cargoes will be sold to spot buyers, Gusrizal added.

Donggi-Senoro shipped its first LNG cargo in Au-gust.

S h a r e h o l d e r s in the 2 million-t o n n e - p e r - y e a r (MTPA) Donggi-Senoro project in-clude Mitsubishi Corporation, South Korea's Kogas, In-

donesia's Medco Energi Interna-sional and Indonesia's state en-ergy firm Pertamina.

MALAYSIA

Samsung Engineering Wins Malaysia Orders

Samsung Engineering Co Ltd said in early December that it had won two orders for the construc-tion of petrochemical plants in Malaysia for a total value of $882 million, adding it has yet to sign formal contracts.

The South Korean company said PETRONAS Chemicals Group Bhd had awarded the orders for the construction of a

linear low density polyethylene (LLDPE) plant and an ethylene glycol (EG) plant, but has not provided more details about the Malaysian company.

SINGAPORE

Shell Says Declares Force Ma-jeure on Base Chemicals from Singapore Plant

Royal Dutch Shell has declared force majeure on production of base chemical products at its Bu-kom plant in Singapore, effective Dec. 1, due to a technical issue, a spokeswoman said.

The move came after a techni-cal problem at Bukom's ethylene cracker complex, she said.

The company was seeking "to resume normal operations and supply as soon as possible, so as to minimise the potential impact on our customers," the spokes-woman added.

THAILAND

The Downstream Grapevine

REPORT

Downstream News


Chevron's Thai Refining Unit Plans IPO Valued at $434 Million

Star Petroleum Refining Pcl, a Thai refining unit of Chevron Corp., plans an initial public of-fering of as much as 15.6 billion baht ($434 million) to repay some loans and fulfill its obligation to the government for a stock listing.

Star Petroleum, owned 64 per-cent by Chevron at present, will raise about 3.1 billion baht from the sale of 345 million new shares at 9 baht each in the offering, it said in a filing with the nation’s Securities & Exchange Commis-sion on Monday. PTT Pcl, the state-owned energy company, will offload its 36 percent stake, amounting to another 1.39 billion existing shares, at the same price to raise 12.5 billion baht, accord-ing to the statement.

Star Petroleum is the only un-listed Thai refiner that is major-ity owned by a foreign company, and the IPO will help it meet the condition under which it received the government’s license. Its list-ing plan has been delayed since at least 2006 amid military coups and oil price fluctuations.

The IPO, which includes an of-fer of 1.02 billion shares to local investors and 712 million shares to international subscribers, will dilute Chevron’s stake in the company to 57.4 percent. Chev-ron reserves the right to sell an additional 173.5 million shares in Star Petroleum if investor de-mand exceeds the current alloca-tion, it said.

Star Petroleum will use about 1.91 billion baht from its sale of new shares to repay existing loans, according to the filing. The share offering will open for subscription between Nov. 23 and Dec. 1.

Merrill Lynch and Morgan

Stanley will manage international offering, while Phatra Securities Pcl, Bualuang Securities Pcl, Fi-nansa Securities Ltd. and Siam Commercial Bank Pcl will advise on the domestic sale.

Among Thai refining units of foreign companies, Esso (Thai-land) Pcl, a unit of Exxon Mobil Corp., listed its shares in 2008. Rayong Refinery Pcl, a refinery in which PTT acquired majority con-trol from Royal Dutch Shell Plc in 2004, was listed in 2006.

VIETNAM

Vietnam's Nghi Son Refinery 60 Percent Complete

Construction at Vietnam's second oil refinery, the $7.5-bil-lion Nghi Son plant, is more than 60 percent complete and is on track to be finished in mid-

2017, a source close to the mat-

ter said in late October.

The refinery will supply main-ly to the domestic market and will take in crude from Kuwait, the source added.

The facility is owned by Ja-pan's Idemitsu Kosan, Mitsui Chemicals, state oil and gas group PetroVietnam and Kuwait Petroleum International.

The 200,000 barrels per day (bpd) Nghi Son facility will in-crease the country's oil processing capacity to 330,500 bpd by 2017, but it and a smaller older plant will only be able to meet half of the nation's fuel demand at that time, PetroVietnam has said.

An official at the project's man-agement board controlled by PetroVietnam declined to reveal the current progress of the project, which is located in the northern province of Thanh Hoa.

A report in a newspaper run by the provincial government said in September that the project was 60 percent complete.

THE ORIENT


Downstream News

CHINA

Yunnan Refinery Changes Meet Environmental Standards

Changes by PetroChina to add a delayed coking unit at a large new refinery in southwestern China would still satisfy environmen-tal requirements, according to a newspaper run by parent compa-ny China National Petroleum Cor-poration (CNPC), citing a team of experts.

PetroChina, the country's top oil and gas producer and second-largest refiner, was fined 200,000 yuan ($31,000) and ordered to halt construction of part of the refinery in Yunnan province in August.

The Ministry of Environmental Protection (MEP) said PetroChina had changed the design of the project without submitting a new environmental impact assessment (EIA) document.

The newspaper said the un-named experts, who were con-vened for a meeting last week to discuss the design changes, also concluded that the changes were necessary.

The refinery is designed to proc-ess crude oil delivered via a Myan-mar-China crude oil pipeline that was ready for use earlier this year.

Company officials have said that the plant's refining capacity had been expanded to 260,000 bar-rels per day from 200,000 bpd, and was slated for completion in the first half of 2016.

competitors Idemitsu Kosan Co. and Showa Shell Sekiyu K.K., which had agreed to merge previ-ously, would hold about a third.

“A merger will benefit the two companies, as it will help them reduce capacity and cut the costs,” Polina Diyachkina, an analyst at Macquarie Group Ltd., said by phone. “This merger, along with Idemitsu and Showa, will likely bring Japan’s refiners down to three and will help im-prove supply discipline leading to higher margins.”

Demand for oil related prod-ucts will fall about 6.8 percent between March 2015 and March 2020, according to a forecast by the Ministry of Economy, Trade and Industry.

The two companies plan a merger by issuing JX’s stock to TonenGeneral shareholders and aim to save about 100 billion yen ($814 million) a year from the in-tegration through shutting refin-eries and other measures, Nikkei reported. The companies could announce the deal as early as this week, the newspaper said.

SOUTH ASIA

PetroChina did not detail the changes at the project. Local me-dia have said the company modi-fied some of the 15 refining units, including adding a 1.2 million tonne-per-year delayed coking unit, which allows for the process-ing of heavier crude oil.

JAPAN

Japan’s Two Biggest Oil Re-finers in Talks to Merge

JX and TonenGeneral are con-sidering a business integration, though no decision has been made, they said in separate state-ments. The refiners plan to merge by 2017 after getting approval from the Fair Trade Commission, the Nikkei newspaper reported, without citing anyone.

“Due to the severe business environment surrounding the oil industry, we are con-sidering the merger with TonenGeneral in order to strengthen the competitiveness of our petroleum business,” JX Holdings said in its statement.

The Japanese govern-ment is encouraging refiners to consolidate and to cut processing capacity amid declin-ing fuel demand. If a deal between JX and TonenGeneral is com-pleted, the new com-pany would control about half of the coun-try’s gasoline market while a combination of domestic


INDIA

India's Chennai Petroleum Shuts Refinery Due to Flooding

India's Chennai Petroleum Corp Ltd shut its 210,000 bar-rels per day (bpd) Manali re-finery on the night of Decem-ber 3 due to heavy flooding in the southern state of Tamil

Nadu, sending its shares down as much as 5 percent to a week-low.

The state-run company, a unit of the country's biggest re-finer Indian Oil Corp, is the main fuel supplier to the city of Chennai that has been sub-merged by the strongest spell of rain in more than a century.

"We have shut down the entire refinery from last night due to heavy rains and floods," Chennai Petroleum Manag-

ing Director Gautam Roy told Reuters in a short telephone conversation.

T h e c o m p a n y ' s s m a l l e r 20,000 bpd Nagapattinam re-finery was, however, operat-ing normally, he said.

Chennai Petroleum's shares were down 4 percent at 194 ru-pees ($2.91) in afternoon trade on Thursday. They earlier hit a low of 191.60 rupees.

India's weather office has predicted more rains in Tamil Nadu, which could prolong the Manali refinery shutdown and disrupt fuel supplies.

THE PACIFIC

AUSTRALIA

BG Group's Australian LNG Plant Fully Operational

BG Group has started com-

mercial operations at the sec-ond train at its Queensland Curtis LNG (QCLNG) plant and has taken full control of both trains and associated faci l i t ies at the Austral ian site, the company said in late November.

"With both trains now fully operational, QCLNG adds significant volumes and flex-ibility to our liquefied natural gas (LNG) shipping and mar-keting portfolio," BG Group's Chief Executive Helge Lund said in a statement.

B G G r o u p s a i d t h a t i t s Australian subsidiary has as-sumed control of Train 2 from Bechtel Australia, which built the plant.

The project is expected to produce enough LNG to load about 10 vessels a month by mid-2016, equivalent to ex-porting around eight million tonnes of LNG a year, the com-pany added.

BG Group is one of Aus-tralia's leading natural gas e x p l o r e r s a n d p r o d u c e r s , supplying gas to the domes-tic market and LNG interna-tionally. The company is also building an LNG plant on Curtis Island, off Gladstone in central Queensland.



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Asset Management

Feature

technology

Towards Instrument Asset Management Excellence: PP(T)SB Yesterday, Today and Tomorrow

Reliability of Instrumentation in PP(T)SB (PET-RONAS Penapisan (Terengganu) Sdn Bhd, a refinery situated at the East Coast of West Malaysia is under threat. The challenge en-

countered here is the ability to handle instrumentation under various complex refinery and petrochemical processes, taking into account the aging plant and inherently non-robust plant design, further com-plicated by a lean maintenance program, given that refinery profit margins are minimal.

Among focus areas is to be innovative in coming up with and usage of the predictive tools. Issues encountered by PPTSB - Lack of utilization and ef-fectiveness of using predictive intelligence in AMS (Asset Management System) Device Manager and the newly introduced Early Warning System, at-tributed to weaknesses in project implementation and user-training which led to lack of appreciation of the benefits claimed. Also a lack of volume to justify usage led to lack of business work process to tie to this installed system. System set-up e.g. poor alert setting is also another contributory factor which caused alarm flooding and subsequence ignoring of further alarms.

Toward this end, PPTSB has embarked on using an Asset Management System from a renowned

vendor for KR2 plant for 3000 tags majority for transmitters and 3 numbers of valves with some success. On top of this, we have launched an Early Warning System, designed to capture potential failures of equipment and ability to send email notifications to the recipients for action/verifica-tion of the problem.

A Strategy Has Been Put in Place to Address the Issue

Nevertheless, other tools and a structured meth-odology/system are equally important to be in place e.g. Manpower Competency and Capability, Alarm management system, Design review of System by harnessing latest technology, System and procedures in place, PPM plan, bad actor acceleration including RCA recommendations based on incidents and any form of trip reduction initiatives.

A Five-Year Road-Map was drawn out to provide a clear planning, scheduling and prioritization of initiatives to improve plant instrumentation. The plan covers transmitters/initiators, control valves and shutdown valves (Final Elements), Logic Solv-ers, Controllers, System, Sub-System, Metering, Analysers, Hydraulic Actuated Valve Systems, In-strumented Protective Function (IPF) Management, Ex-Compliance of the electrical apparatus etc.

Asset Management

Feature

Reliability of Instrumentation in PPTSB (Petronas Penapisan Terengganu Sdn Bhd), a refinery situated on the East Coast of Peninsular Malaysia is critical. A Five-Year Road-map was drawn out to provide a clear planning, scheduling and prioritisation of initiatives to provide plant instrumentation. The plan covers transmitters / initiators, control valves and shutdown valves (Final Elements), Logic Solvers, Controllers, System, Sub-System, Metering,Analysers, Hydraulic Actuated Valve Systems, Instrumented Protective Function (IPF) Management, Ex-Compliance of the electrical apparatus, etc.


For the transmitters/initiators, the plan covers the methodology to reduce the threat of electronics random failure among others are using redundant transmitters in a 2oo3 configuration or as the mini-mum using 1oo2 with Automatic Sensor Override.

For the Control Valves, the plan covers the strategy, procedure and philosophy to be established which begins from completeness of control valve database which serves as central repository for easy access and depository of critical information of all control valves assets datasheet, photos, Bill of Materials, construction drawings etc.

With the revisited strategy approved, we have replaced field instrumentation (Pressure Diffrential transmitters, Level Displacers transmitters, Tempera-ture Transmitters, Coriolis Flowmeters etc) on a major scale instead of break-down one-on-one replacement. For DCS (Distributed Control Systems) as well as the Sub-Systems, we have replaced most of those identi-fied as obsolete systems.

We established a comprehensive Instrument Ob-solescence Strategy back in 2009 with current imple-mentation at 100% completion. In 2013, we revisited the strategy taking into account the fast changing technology and equipment becoming obsolete faster than we would expect.

With the implementation of various initiatives, instrumentation shall be able to play its role much better to provide base layer control and safeguarding of the plant process and equipment thus production targets can be achieved as planned.

Instrument TransformationFor a mission statement to be achieved, the or-

ganization must be strong with the adequate and right people and competency. With that in mind, if required, a transformation has to be done to the section of the organization which is critical towards achieving overall objective. PPTSB has performed such transformation on Instrument Section starting in 2012.

Role of Instrumentation Instrument is one of critical element for safe and

reliable plant running via its installed initiators,

System and Final/ Control Element (see Figure 1).

Analysis of Past Plant Reliability Data Looking back at the instrument-related plant reli-

ability report after TANP2005, major instrument-related plant trip varies from initiators, final elements, system and sub-system as well as work management. From April to December 2011 alone, we had 2 major instrument related plant trips. The first one was due to a Triconex Safeguarding System Failure, causing a loss of 4 days KR2B-plant production followed by instrument impulse line / tubing failure with loss of 3 days KR2B-plant production.

In the 2012, instrument-related plant trips had caused minor issues at F1101 CRU Furnace, F22201 & CCR, and one major issues at Boiler 2 (trip & 1.9 days KR2B product loss).

Looking deeper into the issues, analyses of instrument-related backlog issues which cause near misses and the long period of time taken to repair critical issues had been carried out with the intent to seriously and urgently address them, failing which would culminate in major plant trip or worse still, HSE incidents.

A benchmarking was carried against other PETRONAS operating units (OPUs) to gauge the manpower gap. From the benchmarking report, an intervention plan had been formulated with a 5-year roadmap with the proposed justification to


Asset Management

Feature

increase manpower with 3 area engineers and 1 Interface/Planner Engineer as well as TTS for SIS and Control Valve/Hydraulics System. Details of the plan are as follows:

1) Five-year Instrument Roadmap was established with clear KPI, Target and resources in 2010

2) From the road maps, 80 numbers of gaps have been identified with 181 of action items generated to close the gap, most of them can be traced back to Work Management issues and aging plant, among others

3) Thus current three Central Engineers are required to focus on closing the gaps, with day to day sustaining and front-line troubleshooting of the plant performance to be handled by the proposed BT Instrument Engineers (with full support from BT Instrument Technicians)

4) Focus areas in Systems and Valves are required, as previous major trip due to Instruments were caused by them. Thus 1 TTS for System and 1 TTS for Valve/HAVS are required.

5) For PSI (Preventive Maintenance) quality control and quality assurance especially for loops related to critical IPF loops, 2 numbers of NETs are re-quired

6) This approach is further supported by recent Situ-ational Assessment conducted to gauge current manning to support the ever increasing demand to produce and comply to the HSE Mandatory Control Framework and corporate governance introduced by Corporate HSE in 2011.

Instrument Situational Assessment PP(T)SB had engaged PETRONAS

Group Technical Service to conduct an Instrument Situational Assessment for PP(T)SB with the primary objective to review the overall reliability of the in-struments in the facilities and the overall instrumentation maintenance strategy being implemented. The site assessment was conducted from the 22nd April 2012 to the 24th April 2012. The summary of the Situational Assessment Findings is:

1) Existing reliability of instruments in PPTSB is satisfactory as could be demonstrated from the reliability

and availability records of the facility. 2) A more structured approach has seemed to

be undertaken in recent times through more development of procedures, embarking on SERP, a 5-year improvement plan and IPF implementation.

3) But for sustainability and focus towards ensuring continuous reliability through maintenance and rejuvenation activities, there is lack of manpower to deliver the necessary results.

4) This is assessed among others, from the number of projects/project Interface in hands, IPF compli-ance & SAP Planning and backlog

Benchmarking with other OPUs in terms of Me-chanical Units, number of instrumentation Loops, manpower manning of Principal/Staff Engineers, Executive, Technical Trade Specialist (TTS) and Non-Executives technical had been carried out in 2012. From the benchmarking data as per Figure 2, PP(T)SB is very low in terms of numbers of Execu-tives and TTS which provides further justification and compelling reason for adding numbers of critical positions which was eventually approved at top management level one year later.

In Quarter 2 of 2013, we had recruited three new area engineers to fill up the newly created positions. The core function of the area engineers is day to day maintenance for the area teams on all field instrumentation. The area engineers shall closely work with area Instrument technicians and interface with central and multidisciplinary


engineers located at different office. Any backlogs, complex and prolonged issues, the area engineers shall escalate them to Central Engineers so that the area engineers can focus on short to middle term issues. This is very important to ensure clear demarcation between central and area engineers. Area Engineers produce weekly reports on defec-tive equipment repair status, and the close-out report issuance for those have been repaired, tracking of any PRs, POs of work orders pending material, etc. Without area engineers, the senior technicians or central engineers had to do this job which most of the time was not done.

Technicians are very efficient in resolving prob-lems as they attend to the problem and move on to the next problem as part of their routine activity. Most of the time, it is very difficult to get them to write detailed reports explaining or investigating the problem so that the root cause of the problem can be clearly identified to prevent the problems from recurring. The solution to that is to have dedicated area engineers based on each area so that all problems are captured with full investiga-tion complete with the root cause/ RCA analysis and way forward. The output of the instrument investigation report comprises short to middle term as well as long term recommendations. The short term is normally taken up by the area engineers whilst the long term is handed over to the central engineers.

Central Engineers are classified as Field Cen-tral Engineer, Control System Engineer and QMI Engineers. Control System and QMI Engineers have very distinctively different roles compared to the Area Engineers. However, Field Central Engineers’ role and the area engineer’s role are quite the same i.e. taking care of control valves and field instrumentations; their roles are clearly demarcated based on short/middle term and mid-dle/long term activities.

To a certain extent, there will be an overlapping function between area engineers and field central engineer which is normal to ensure seamless con-nectivity between them. In another words, central engineers, while busy with long term issues, will have their eyes on the day to day issues from

time to time, to ensure that they are not totally disconnected from daily plant issues. Similarly, the area engineers while very much busy on day to day issue, will have to have their eyes on what the central area engineers are doing to ensure that they can strategize and focus only on equipment that are not looked at by the central engineers. For example, if the operations arm complains about the recurrent failing of the field transmitters, knowing that the central engineers have already captured the issue in the Obsolete Master Plan, the area engineers can quickly update the opera-tions arm of the replacement plan during the next turnaround, so that the area engineers can focus on other emerging issues not being looked at. In this way, quick attendance to any problems raised is made possible, thus preventing the phenomena of high backlogs of instrumentation problems unresolved for long periods.

In the transformation plan, we also created a new position called “Interface/Planning Engi-neer” whose function is to handle unresolved complaint/ Interface with Projects/Technical Service Department, HSE and BPSD, Turnaround Leader for Instrumentation (Planning, Scheduling, Materials/Manpower resources, Work-scoping including TA Execution). With the creation of Interface/Planning Engineer position, the central engineers can better focus on their core functions. In the past, the central engineers had to be bur-dened with non-core functions e.g. attendance of HAZOP / HEMP / IPF studies which take off time from their core jobs. This slows down their deliverables and also affect instrument perform-ance to deliver the committed superior Instrument performance assets

Apart from engineer / executive positions, we have created 2 new TTS (Technical Trade Specialist) positions, one for System and the other for Con-trol Valves, on top of existing TTS for analyzer. TTS System shall specialize on IPS PLC Triconex (KR2), IPS PLC Honeywell (KR1), Fire & Gas (Triconex), Sub-System (WoodWard, etc) whereas TTS Control valves shall specialize on Control Valves as well as Hydraulic-Actuated Valve System (HAVS). With the appointment, we have a focus group on System and Control Valves which have the right competency and


Asset Management

Feature

capability to ensure improved reliability on those two areas that had caused major plant trip back in 2011.

Another area of concern is effective control and monitoring of critical Preventive Maintenance Pro-gram (PPM). For that, the Maintenance Excellence Team (MET) is given the re-sponsibility to ensure all PPM done by the contractors are closely monitored and tracked for PPM effectiveness.

Specific Equipment Reliability Plan (SERP)

In PP(T)SB, we have about 15,000 tags (instrumentation covering sensors, control valves, processors, shutdown valves, etc) which are required to be properly maintained in good condition so that the equipment never fails on demand and does not causing plant nuisance tripping.

With such a high number of equip-ment to maintain, it requires Specific Equipment Reliability Plan (SERP) as part of the Equipment Reliability Strategy (ERS) so that we can priori-tize the equipment based on HSE and Production – Criticality 1, Criticality 2 and Criticality 3.

Criticality Rating for each equipment was completed by the Reliability Integ-rity Group in 2011. From the ranking, we can plan our maintenance better, those with Criticality 1, more frequent and detailed maintenance complete with spare parts. Those with Criticality 3, the maintenance shall be based on run to fail or the new term I would use is “maintenance on demand”.

On top of the SERP, periodical site surveys to identify the existence and condition of the deteriorating equip-ment, verifying the serial number of the equipment, if available, at site and comparison with the system records are carried out. Input from Site Survey

will be based on P & ID, PEF’s SPIR list and Tag numbers as well as vendor manual.

For example, we have done this for Control Valve equipment and produced a complete valve database,


including valve datasheets, Bill of Material (BOM) for almost all control valves and make it available for easy access by our engineers and technicians (See Fig. 4 and Fig 5).

For Best-in-Class perform-ance, PPM vs REM (Reac-tive Maintenance) has to be beyond 70:30 ratios. This is because the higher the PPM activity, we would expect to see decrease in the numbers of equipment breakdown. To achieve this, predictive tools as part of the PRM (Proactive Maintenance) have to be fully exploited and utilized using innovative pro-grams/ software and collaboration with the OEM.

3 challenges encountered in adopting predictive online diagnumberstics tool i.e.:

1) Cost effective adoption of the latest online instru-ment predictive diagnumberstics tools into the ageing KR1 plant and relatively new KR2 plant which uses conventional positioners.

2) The effective utilisation of existing predictive online tools hampered by:• Lack of consistent follow-up from vendors &

usage promotion• Lack of understanding of the benefits of the

tools as technicians are more familiar with conventional methods

• Poor Project execution of the predictive online system/ tools

• Poor alert settings cause false flooding alarm3) Lack of training for targeted personnel

Among adopted strategies to address the chal-lenges are better project execution, planning and implementation plan which as a minimum covers the following:

1. Work closely with vendor 2. Engagement with technicians/engineers3. Work on small groups of critical assets and get it

working first and then move on to a bigger group of assets

4. Database review/clean-up and alert setting review5. Establish and incorporate into standard work flow

process

The expected impact to the business is quite obvious. With the system upgraded/expanded and benefits well understood by asset owner, the expectation is full utilisation of the predictive tools/online diag-numberstics and subsequently optimized. Spare parts and better inventory planning can be executed with early alerts from transmitters/valves about impend-ing failures. The improved Instrument Equipment Maintenance strategy can reduce spurious trips and achieve zero failure on demand due to instruments.

Nevertheless, other tools and structured meth-odology/ system are equally important to be in place for the ultimate Instrumentation Excellence journey. For example: Manpower Competency and Capability Initiative, Alarm management system, Design review of System by harnessing latest technology, System and procedures in place, PPM plan, Bad Actor acceleration including RCA recommendations based on incidents.

Without operational excellence from other support-ing discipline like operations, rotating & electrical and process technology, instrumentation excellence is impossible. In a nutshell, teamwork is required.

Towards this end, we have developed a Five-Year Road-Map to achieve “Best-in-class Performance and Sustenance”.


Asset Management

Feature

To elaborate line item 1 of the table, human asset is the very basic building block towards operational excellence. Acknowledging this fact, we have adopted “Influence Model Concept” which has been embed-ded in Instrument Engineers which they can use to get things move through the technicians, peers or even the bosses. The first quadrant of the Behaviour Model is “Role Modelling”.

To motivate a well performing team, the leader must show that he / she is also performing at a high level and always demonstrate the behavior consistently at all times. Whenever I have the chance to go out to the international level, I would always encourage and challenge my engineers to do the same that I am doing. I have seen that this has been quite effective to drive their performance. To be able to present at the international level, the engineers have to start at the national or even at the plant levels. To present itself requires substance topic and it is very unique

that people would want to hear and learn from it. I told my engineer that to be able to do that, he/she has to be ever willing to take any problems faced in the plant instrumentation as an opportunity and improve their skill. Instrument area engineers must know very well each and every tag number of the plant instrumentation within his own area. The engineer has to know how many numbers of control valves, sensors of various types and varieties of manufacturers etc. The engineer then must come up with the plan to address has failure modes faced in the past years based on history.

The second quadrant of the Be-havior Model is to “Foster Under-standing with Conviction” (Chronic Unease). I told my engineers that in order to get things done via the tech-nicians or contractors, we will have to engage them, explain and ensure the understanding so that we can get their full commitment to do as we told them to do. The 3rd quadrant is about “Conduct Training”. Once

the people have the commitment to do the work, we have to provide them with the correct knowledge, skill and tools so that the job can be done well. In our company, we have various systems in place to ensure competency within the staff is well managed and put in the right place including but not limited to the Ac-celerated Capability Development program. The 4th quadrant is about “Penalty & Reward”. Afte all three quadrants have been utilized, the staff is expected to be able perform the given task well. Thus should they do it well, reward shall be given timely ranging from patting on their back or “Teh Tarik” (a treat) session or monetary reward. However, if they fail to perform, some kind of penalty will be implemented to prevent negative behavior from becoming culture in the company.

In our road-map, one goal is to become “world class alarm management”, which we have achieved and continue to achieve via monthly tracking of


Enquiry Number 10/12-01HA

the Plant total alarms/ opera-tor/Day to meet Wo r l d C l a s s numbers of 144. T h e m o n t h l y trending* shows that the PP(T)SB strategy works quite well to sustain the world class alarms per op-erator per day as per EEMUA Publication No. 191 document entitled “ALARM SYSTEMS: A GUIDE TO DESIGN, MANAGEMENT AND PROCUREMENT. The number is reported to all Alarm Management Team (AMT) members and top management and thus intervention can be done immediately.

The road-map is translated into a clear Key Per-formance Indicator (KPI) to meet Company Busi-

ness. As a result, for FY13, our ef-fort has directly contributed to more than 28% reduction in to-tal numbers of instrument re-lated trip com-

pared to FY11, and a sustainable effort compared with FY12. Into the phase of sustainability, for FY14, our plant performance is going quite well, as of End of Dec 2014.

This periodical thanks Shahrul A. Rashid, Principal Engineer, Instrument & Control, PP(T)SB, for providing this article for publication.

42 HYDROCARBON ASIA, OCt-DeC 2015 Visit our website at: http://www.safan.comCorrosion

technology

DNV GL Combines Tools to Aid Operational Performance in Rotating Equipment

Chris Dagnall, Manager, Rotating Ma-chinery Group, DNV GL says “Rotating equipment can be attributed to 90% of production losses. Typically, those losses

can affect 5-10% of production. Assuming pro-duction averages 50-150 million barrels of oil per annum and an average cost per barrel is $53. The average loss would be $140-$420 million per year,

RAMS

Many pieces of rotating equipment are operating below optimum capacity, affecting production costs, revenues and resulting in unexpected down time. DNV GL has been working together with operators to help unlock the potential of their existing rotating equipment.


a saving of just 1% in this area would be in the order of $1.4 – 4.2 million, the size of the prize is considerable.”

O n l i n e c o n d i -t ion monitoring coupled with reli-ability, availability and maintainabil-ity (RAM) analy-sis can facilitate in understanding the causes of shortfalls which would cause failures, downtime, start-up delays or full shutdown, al-lowing operators to optimise their maintenance strategy around reliability and machine condition.

The data produced, identifies where losses can be reduced and this information is quan-tified to improve in costs, quality or both. Plant failures are then ranked and improvements implemented to provide either quick wins or longer term rewards. The unique online tool is used as an aid to facilitate decisions, whether to replace or repair, how many spares to keep or what action to take in a cost constrained environment.

The fully functioning online monitoring and supporting analysis combines detailed statistics and performance monitoring which gives real time, round the clock, access to the condition of the machinery. The dashboard interface demon-strates an overview which cuts the complexity of the message and delivers critical information which is an enabler in planning and control of the asset.

Liv Hovem, Di-rector of Division Europe & Africa at DNV GL says “The o p p o r t u n i t y i s there, in these chal-lenging t imes to introduce new tech-nology, new ideas and smart stand-ardisation which gives predictability and flexibility. This enhances quality, reliability and prof-itability. A lot of the

technologies, tools and arenas for collaboration exist, we just need to start using them effec-tively. Condition Based Monitoring, combined with RAM analysis is essentially a strategy that uses the actual condition of the asset to decide what maintenance needs to be done. This method dictates that maintenance should be performed when certain indicators show signs of decreasing performance or upcoming failure. Essentially, it targets improvements in the right place at the right time.”

Chris DagnallManager, Rotating Machinery

Group, DNV GL

Liv HovemDirector of Division Europe & Africa, DNV GL

This periodical thanks Elinor Turander, Media Relations Manager, DNV GL - Oil & Gas, for providing this article for publication.





Heat Exchange

technology

APV® Heat Exchangers Designed to Lower Energy Costs in Oil and Gas Applications

More efficient process heat recovery reduces energy consumption and can bring significant cost savings. From its APV brand, SPX FLOW Inc. provides

a wide range of plate heat exchanger technolo-gies for oil and gas production in both onshore and offshore locations that can help increase heat process efficiency and contribute to lower costs. Lightweight and highly efficient heat transfer surfaces combine with robust and compact designs to deliver reliable performance and maximum heat efficiency in demanding process conditions across a wide range of oil and gas processes. Widely used in low to medium pressure heat transfer applica-tions, SPX FLOW solutions play an important role in applications ranging from cooling and heating to condensing and evaporation of process fluids in, for example, crude oil stabilization, gas dehydration, gas sweetening, regasification and utility cooling.

APV® heat transfer solutions for the oil and gas industries are based on a complete range of plate-type heat exchangers including gasketed, semi-welded and welded plate options. These range from high capacity, heavy duty units to small, compact designs which are available as standard solutions or as customized units based on ground-breaking designs and various materials.

Designed for reduced fouling, in particular in comparison with traditional shell and tube technol-

ogy, APV brand heat exchangers have longer run times and require less service and maintenance. They provide easy inspection and maintenance ac-cess and can be cleaned using clean-in-place (CIP) or mechanical cleaning processes. The high thermal efficiency of APV heat exchangers enables a very compact design, resulting in a minimum footprint where space and weight are essential parameters. This means less extensive loadbearing foundations, faster installation at lower cost and lower overall capital expenditure.

The range of APV® gasketed plate heat ex-changers offers exceptionally high thermal efficiency with the flexibility to reconfigure solutions to meet changing needs. They are widely used in crude stabili-zation, gas dehydration, gas sweetening, refrigeration duties (gaseous as well as liquid) and utility cooling. Plates are designed for efficient flow distribution and optimum turbulence to maximise heat transfer efficiency. Service downtime is minimised due to easy operation and maintenance features including easy-to-mount APV clip gaskets and plate alignment features such as “Corner Lock” and “Bubble Lock” which ensure a stable, well-aligned plate pack every time the unit is closed.

In higher temperature and higher pressure applications, the APV® Hybrid series of welded plate heat exchangers stand out as an obvious choice for operation in areas such as wet crude heaters,

Heat Exchange

Energy consumption and runtime are key parameters affecting production costs in several sectors. Minimizing energy consumption through more efficient process heat recovery is critical to profitability in the face of increasing energy costs. Improving process performance and avoiding unscheduled stoppages can increase runtime. Both deliver immediate and significant cost savings that translate directly to the bottom line.



lean-rich interchangers, sour gas coolers, and acid condensers covering processes including crude stabilization, gas dehydration and gas sweetening. The high thermal efficiency of the APV Hybrid heat exchangers reduces external en-ergy input demand, while its design flexibility enables very low-pressure drops to be achieved without compro-mising performance. Optimised plate corrugation patterns reduce the risk of fouling and increase heat recovery respectively, depending on the duty conditions and priorities. The APV Hybrid heat exchanger can be easily opened for inspection and cleaning by removing the housing covers. The unit is mechanically cleanable on the tube side and plate side is easily CIP-able making it a truly cleanable solution.

Also available is the APV® ParaWeld series. These semi-welded plate heat exchangers are designed with welded channels to allow handling of aggres-sive fluids and are available with either conventional or special gaskets to match specific duty requirements. The units are highly suitable, functioning as main propane pre-heaters and propane evaporators. Using the special APV Paramine™ gasket solution with APV semi-welded heat exchangers provides a superior plate-and-gasket combination specifically designed to handle high concentrations of sour gas. These units are particular suitable for use in applications such as medium to high temperature lean/rich Amine interchanger duties and resolve con-ventional gasket lifetime issues.

SPX FLOW has vast experience in optimising the utilization of energy through efficient heat recovery and a wide range of heat transfer solutions and options are available to best match application requirements. The portfolio is globally supported by SPX FLOW expert design and application engineering, project management, service and maintenance to help customers optimise their

processes. SPX FLOW heat transfer solutions are designed to operate safely and offer better economy by increasing performance, improving run times and lowering maintenance costs.

This periodical thanks SPX FLOW, Inc for pro-viding this article for publication.

Fully Welded Heat Exchanger. Heat exchanger without gaskets, and perfect for high pressure applications. Based on a multi-flexible configuration platform, Hybrid is designed to operate under harsh conditions where other heat exchanger technologies can fail, have a shorter operating lifetime, or reduce operational efficiency. Easy access makes high-pressure cleaning of Hybrid plates simple, effective and fast.


Tank Storage Feature

technology

A Safe Refurbishment of Three LNG Tanks in Algeria

Hot work required for welding, grind-ing and cutting operations presents potential hazards when conducted in potentially explosive and flammable

environments. According to the Health and Safety Executive guidance 2013, “Flammable liquids and vapours such as petrol, diesel, fuel oil, paints, solvents, glue, lacquer and cleaning agents are found in many places of work. If a welding torch or powered cutter is used on a tank or drum containing flammable material (solid, liquid or vapour), the tank or drum can explode violently”.

No Hot Work for LNG Tanks Refurbishment

In order to minimise the risk, cold bonding solutions involving materials that are ap-plied and cured at ambient temperatures can offer an alternative solution for repair and newbuild applications on metallic surfaces.

Refurbishment of 3 LNG Tanks in Algeria

Three LNG tanks of 100 000 M3 capacity designed, constructed to API Standard 620 and commissioned were severely corroded after 13 years of continuous service in a coastal envi-

ronment in Algeria. The inspection carried out during the LNG plant renovation project revealed that roofs and shells were extensively pitted due to on-going exposure to salt water and salty air moisture, result-ing in severe gas leaks predominantly on the roofs.

The client was looking for a reliable and long term solution to repair the LNG tanks taking into account all the safety considerations and without disturb-ing any parts of the inner tanks and their supports. Initially, the plan was to carry out the repairs dur-ing the complex shut down of the plant when the isolating valves were due to be changed out but in


This article outlines a case study of cold bonding refurbishment carried out in Algeria.


order to avoid many important activities occurring at the same time, only the changing of the valves has been conducted at this period.

Repair OptionsSeveral solutions were considered for the repair

including welding of new plates to the existing live tanks, welding new plates after purging the inner tanks and the insulation spaces, or fixing new patch plates over the roofs on site using cold repairs with epoxy adhesives.

For safety reasons, the Government Certifying Authority first preferred to drain, clean and purge the LNG tanks due to their explosive and flammable atmosphere based on the risk of ignition of methane gas leaking. Therefore, the option of welding new plates on the existing live LNG tanks was definitely excluded. The decided option was to empty each tank and to conduct the repairs, but this caused other more serious problems of thermal expansion and movement as this method would risk damage to the inside of tanks if they were allowed to warm

up from their normal operating temperature of around minus 163 0C. Natural gas trapped within inaccessible parts of the perlite insulation system would remain an unquantifiable potential hazard if the presence of natural gas within the LNG tanks was considered hazardous during certain conceiv-able repair situations.

Upon reviewing all options, it was concluded that the repairs will be conducted on live LNG tanks using the Belzona’s cold repairs method. The project was carried out to very stringent standards with salt contamination, blasting profiles, climatic conditions and ul-trasonic thickness measurements being constantly monitored.

Surface Preparation and Repairs

The main part of the project was to seal leaks in the outer skin of the tank and to bond doubler plates over the most corroded areas of steelwork. During the blasting process carried out us-ing non-sparking grit to Swedish Standard SA 2, more live gas leaks were found on the surface of the tank and were directly sealed with Belzona 1291 (ES Metal), a rapid curing epoxy paste grade mate-




rial. The LNG tank roof of about 4100 M2 surface is consisting of 260 plates of 5.5 mm thickness sup-ported by a compression ring of 32 mm thickness. The roof repairs have been performed essentially by sealing all the leaks of gas, repairing the pits of corrosion and by applying patch plates with Bel-zona products. Belzona 1121 (Super XL-Metal) with its extended working life, was used for bonding the reinforcing plates. Belzona 1111 (Super Metal) and Belzona 1321 (Ceramic S-Metal) were used in conjunction with Belzona Reinforcement Tape to

repair and strengthen the nozzles throughout the tank roof.

Put It to the TestAs the project went ahead, the ability to use

Belzona materials as a structural adhesive was further investigated. The repair of the trunnion was indeed the most critical concern due to the problem of lifting the 24 inch line. Various tests both independent and at Belzona’s facilities were carried out on full size test rigs to confirm the suitability of Belzona to firstly bond the hand rail supports around the tank perimeter and finally the main vent pipe trunnion supporting several tons of pipework. Cleavage adhesion testing was carried out on Belzona 1111 (Super Metal), a paste grade epoxy material usually used for cold bonding applications, in accordance with ASTM D1062 at 20°C, 40°C and 60°C in order to determine the effect of high ambient tempera-tures on bond strength. When fully cured, the cleavage adhesion of Belzona 1111 was found to

be maintained across the 20–60°C test range, i.e. the bond strength was unaffected up to 60°C, and adhesion values were actually found to be slightly higher at higher test temperatures by virtue of the higher cure temperature. Cleavage adhesion values obtained were 1330 pli, 1465 pli and 1450 pli, for 20°C, 40 °C and 60°C testing respectively. Based on the above testing results, new furniture and platforms were installed on the roofs of the three LNG tanks where the different instruments were fixed to their original positions.

The Belzona solution was applied live to keep the site running with minimal disruption without the use of hot work or use of mechanical equipment. No other alternative was deemed to provide a vi-able solution to the client’s requirements due to time scale and the risk of sparks. The application of the API 653 Standard and all the targets have been met with quality of the repairs achieved in excess of the commercial standards. The reliability and the safety of the operation have been provided for the long term service of the plant. This project was completed without any incident. Since the application, it has been regularly inspected and has now been in service for more than ten years demonstrating the high efficiency of the cold bonding solution.

This periodical thanks Belzona Polymerics Ltd,.for providing this article for publication.

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MARCH/APRIL 2015Asia's Exploration & Production Business magazine

http://www.safan.com MCI (P) 177/03/2015 • PPS 1749/09/2013(025502) • ISSN 0129-1122Published by AP Energy Business Publications Pte Ltd. 19 Kim Keat Road, #04-06 Fu Tsu Building, Singapore 328804. Printed by KHL Printing Co Pte Ltd

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march/april 2015Asia's Exploration & Production Business magazine

http://www.safan.com MCI (P) 177/03/2015 • PPS 1749/09/2013(025502) • ISSN 0129-1122Published by AP Energy Business Publications Pte Ltd. 19 Kim Keat Road, #04-06 Fu Tsu Building, Singapore 328804. Printed by KHL Printing Co Pte Ltd

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Asia’s technology information provider in the upstream, downstream and midstream sectors

Preferred position, US$ Insertions 1x 3x 6x Inside front cover 4,456 4,335 4,170 Inside back cover 4,214 4,093 3,972 Back cover 4,940 4,819 4,698

Black & White rates, US$ Insertions 1x 3x 6x Full page 3,730 3,609 3,488 Two columns 2,652 2,591 2,531 Half page 2,083 1,986 1,865 One column 1,466 1,430 1,381 Double page 6,150 5,985 5,820

(all rates are expressed in US$)

GENERAL CONDITIONSColour charges2-page spread 4/Colour 5004/Colour (full page or less) 3002/Colour (full page or less) 200Special colour chargesFifth colour (full page or less) 300Metallic colour 300Bleed charge 200

BUDGET ADVERTISEMENT RATESIt gives you value for money! (All rates in US$)

Single 1⁄4 page insertion 7766-ads Package 3,68012 ads Package 6,342NOTE:: Dimensions 10.8cm x 8.5cm


This information is supplied ‘as is’. While every attempt has been made to ensure the accuracy of such information, the publisher does not accept responsibility for any loss or damage attributable to errors or omissions. Organisers are advised to check the information and to notify the magazine of

Calendar of Events

any such errors or omissions. If e-mail is available, please also provide e-mail address. This listing is a free service to Hydrocarbon readers. To have your conference or exhibition listed in the magazine or its website (www.safan.com) please post, fax or email details to Mary at [email protected].

eventsofcalendar

20152015

NOVEMBER 2015

Oil & Gas Indonesia 20154 - 7 November 2015 (Jakarta International Expo Kemayoran, Indonesia) Contact: Maysia StephanieTel: +62 21 2525 320 Email: [email protected]: www.pamerindo.com or www.oilgasindonesia.com

January 2016

AXIS 201613-15 January 2016(Kuala Lumpur, Malaysia)

March 2016

APM 201616 - 18 March 2016(Level 1 & Basement 2Marina Bay Sands, Singapore)

Tel: (65) 6780 4586Email: [email protected]: www.apmaritime.com

5th Mobile Offshore Drilling Units Conference17 – 18 March 2016, (Singapore)Tel: (65) 6222 3422Fax: (65) 6222 5587Contact: Zaman or JaquilynEmail: [email protected] / [email protected]: www.safan.com

April 2016

9th Reliability, Asset Management and Safety Asia Conference 2016 (RAMS Asia 2016)April 2016 (Singapore)Tel: (65) 6222 3422Contact: Zaman or JaquilynEmail: [email protected] / [email protected]: www.safan.com

MAy 2016

LNG Marine Fuel Forum 2016 10-11 May 2016(Singapore)Tel: (65) 6222 3422Fax: (65) 6222 5587Contact: Zaman or JaquilynEmail: [email protected] / [email protected]: www.safan.com

6th Dynamic Positioning Asia Workshop & Conference30 - 31 May 2016(Singapore)Tel: (65) 6222 3422Fax: (65) 6222 5587Contact: Zaman or JaquilynEmail: [email protected] / [email protected]: www.safan.com

SEPTEMBER 2015

4th DBET19-20 September 2016(Kuala Lumpur, Malaysia)Tel: (65) 6222 3422Fax: (65) 6222 5587Contact: Zaman or JaquilynEmail: [email protected] / [email protected]: www.safan.com

For latest information

Log onto www.safan.com and

click on ‘Calendar of Events’

20162016


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http://www.safan.com JULY-SEPT 2015 MCI (P) 113/07/2015 • PPS 1064/10/2013 (025508) • ISSN 0217-1112 • Published by AP Energy Business Publications Pte Ltd 19 Kim Keat Road, #04-06 Fu Tsu Building, Singapore 328804. Printed by KHL Printing Co Pte Ltd

India is Net Exporter .... pg 10HT/HP Process Vessels Pitting Repairs .... pg 34Catalyst Feature .... pg 38

Downstream Project Management

25th Anniversary of PVGAS

Dinh Co Gas Processing Plant

HA_cover070915_2.indd 2 9/22/15 11:36 AM

January - March 2016 _____________________________

Country / Regional Report – Far East

Special Feature – Process Safety

Technology – Catalysts

April - June 2016 ________________________________

Country / Regional Report – South Asia

Special Feature – LNG

Technology – Emerging Gas Technologies

Hydrocarbon Asia magazine advertisement rates:


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http://www.safan.com july-sept 2015 MCI (p) 113/07/2015 • pps 1064/10/2013 (025508) • IssN 0217-1112 • published by Ap energy Business publications pte ltd 19 Kim Keat Road, #04-06 Fu tsu Building, singapore 328804. printed by KHl printing Co pte ltd

India is Net Exporter .... pg 10HT/HP Process Vessels Pitting Repairs .... pg 34Catalyst Feature .... pg 38

Downstream Project Management

25th Anniversary of PVGAS

Dinh Co Gas Processing Plant

The Asia Pacific and Middle East’s only hydrocarbon

processing industry (HPI) magazine covering refining,

petrochemicals & gas processing for the past 25 years! In

addition to maintaining our printed circulation, the magazine is also online where your advertisement

is linked to your company’s website.

TheaboveEditorialSchedulesforPetroMinandHydrocarbonAsiaarepreliminary,subjecttochangesinlinewithOil&Gaseventsin2016.Inadditiontopublishing,wealsoorganiseTechnologyConferenceswiththesupportandcoordinationofNationalOil&Gasandotherenergy-relatedInstitutions.Weendeavourtopresentup-to-dateinformationtoreadersintheirprofessionalcapacity,whoneedtokeepabreastofthelatesttrendsintechnology;business;projectdevelopment

&managementfieldsetcrelatingtotheupstreamanddownstreamindustriesintheAsia/PacificandMiddleEast.SubstantialindepthtechnicalarticlesfromspecialisedcompaniesandprofessionalsalliedtotheOil&GasIndustryareinvited.

AsthepublisherofmagazinesservingtheEnergyIndustryforthepast41years,wepresentthesearticlesinbothprintandonline(freeaccesstoallviewers).

Black & White rates, US$ Insertions 1x 2x 4x Full page 3,400 3,180 3,070 Two columns 2,415 2,305 2,195 Half page 1,898 1,700 1,535 One column 1,337 1,260 1,205 Double page 6,315 5,820 5,710

* (all rates are expressed in US$)

Preferred position, US$ Insertions 1x 2x 4x Inside front cover 4,060 3,840 3,620 Inside back cover 3,840 3,620 3,400 Back cover 4,500 4,280 4,060

GENERAL CONDITIONSColour charges2-page spread 4/Colour 5004/Colour (full page or less) 3002/Colour (full page or less) 200Special colour chargesFifth colour (full page or less) 300Metallic colour 300Bleed charge 200

BUDGET ADVERTISEMENT RATESIt gives you value for money! (All rates in US$)

Single 1⁄4 page insertion 7766-ads Package 3,68012 ads Package 6,342NOTE:: Dimensions 11cm x 8.5cm

July - September 2016 ____________________________

Country / Regional Report – Southeast Asia

Special Feature – HSE

Technology – Composites and Coating

October - December 2016 ____________________________

Country / Regional Report – Pacific Rim

Special Feature – Tank Storage

Technology – Corrosion Control

EDITORIAL SCHEDULE 2016

Reliability, Asset Management & Safety (RAMS) Asia Conference • Dynamic Positioning Asia Conference • Downstream Business Engineering and Technology Forum • Mobile Offshore Drilling Units Conference • Offshore Pipeline Technology Asia Conference *

PETROMIN, HYDROCARBON ASIA & PETROMIN PIPELINEREvents Organised by

If you require any further information, please feel free to contact Zaman / Jaquilyn at 6222 3422 or email us at [email protected] / [email protected].

*Conferences are subjected to change. Please visit www.safan.com/tech-events for updates on conferences.


The closing date for placing advertisements is not less than FOUR WEEKS before the date

of publication. Please contact our nearest advertising office for more details.

This index is provided as an additional service. The publisher does not assume any liability for errors or omission.

HEAD OFFICE

SINGAPOREAP ENERGY BUSINESS

PUBLICATIONS PTE LTD19 Kim Keat Road

#04-06 Fu Tsu BuildingSingapore 328804

MaryTel: 65-62223422

Fax: 65-62225587 Email: [email protected]

MEDIA REPRESENTATIVES

AUSTRALIA: Brian WickinsTel: 618-94463039

Fax: 618-92443713 Email: [email protected]

ITALY: Dario MozzagliaTel: 010-583684 (6 lines R.A.)

Fax: 010-566578Email: [email protected]

JAPAN: Ken TakahashiTel: (+813) 34432748

Fax: (+813) 34438275Email: [email protected]

SOUTH KOREA: Chang Hwa ParkTel: 82-2-364-4182/3 Fax: 82-2- 364-4184

Email: [email protected]

VIETNAM: Nguyen Thanh Trung Tel: +84 936 307 889 Fax: +04 3856 2861

Email: [email protected]

Conventions used within this magazineBarrel bblThousand barrels MbMillion barrels MMbBarrels per day b/dThousand barrels per day Mb/dMillion barrels per day MMb/d

Metric ton tonneThousand tonnes Mt

Million tonnes MMtTonnes per day t/dTonnes per year t/y, tpaThousand tonnes per year Mt/yMillion tonnes per year MMt/y

Tonnes of oil equivalent toeThousand tonnes of oil equivalent MtoeMillion tonnes of oil equivalent MMtoe

Cubic feet cfThousand cubic feet McfMillion cubic feet MMcfBillion cubic feet BcfTrillion cubic feet TcfCubic feet per day cfdMillion cubic feet per day MMcfdBillion cubic feet per day Bcfd

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ADVERTISING SALES OFFICES:

ADVERTISING SALES OFFICES:

ADVERTISER PAGE NO

2nd LNG Marine Fuel Forum 2016 13

4th Downstream Business Engineering and Technology IBC

Conference 2016

9th Reliability, Asset Management and Safety (RAMS) Asia 7

Conference 2016

Clock Spring Compnay, L.P. IFC

ESTCON 2016 41

Petrovietnam GAS 12

Piller SEA Pte Ltd OBC

Sabin Metal 1

Vietnam Oil and Gas Group (PVN) 6

Advertising Index

Organized by:

Call For Papers

PATRON

Datuk. Kamarudin Zakaria Head, Group Technical Solutions, PETRONAS

THEME: “FiNDiNG OPPORTuNiES DuRiNG DOwNTuRN”

TECHNiCAL COMMiTTEE: Kamarul Ariffin B Tajul Amar, Head of Centralized Services Department / Manufac-turing Division, PETRONAS Ahmad Kamal Salleh, Head of Asset Management Downstream Operation Division, PETRONAS ir. Joshua Gnanaraj, Head of TA Management, Intervention Strategy Downstream Operations Division, PETRONAS Abdul Malik Tahir, Managing Director of Energy and Strategy Consulting Sdn Bhd Philip Morel, Managing Partner of T A Cook Consultants Steve Beeston, VP Technology of Foster Wheeler USA Corporation

The Patron and the Technical Committee is pleased to inform you that Puan Juniwati Rahmat Hussin, VP & Venture Director - Pengererang Integrated Complex [ PIC] PETRONAS will give the Keynote address on the $19 billion Rapid project – A worldwide Integrated Refining & Petroleum Complex located in the Southern Johor on the 19th of September 2016.

The conference will also focus on the upgrade, Asset integrity, Process Safety and other issues link to the brownfield Downstream, refining & Petrochemical plants located in the region.

The Organizers, on behalf of the Patron and Technical Committee would like to invite you to share your knowledge, technology experienced of the following topics mentioned below and other areas that you feel would be beneficial to the industry.

CONFERENCE TOPiCS:• Shutdown / Turn around management• Developing first line managers/supervisors and improving organization capability• Refining/petrochemicals integration to produce higher value products• Energy optimization• Predictive maintenance to reduce unit downtime• Refinery Benchmarking – Solomon Study• Contractor management• Improve refinery economics through expansion and debottle necking• Impact of upcoming legislation on the refining industry – Marpol, GHG emissions,

lower sulfur,• Latest process control applications• Latest in operator training• Latest Catalyst Developments

ABSTRACT SuBMiSSiON Guidelines & Requirements: The abstract, which should not ex-ceed 400 words, should be sent to us via email [email protected] / [email protected].

The program committee will review the written papers to ensure that the content is in line with the objective of the conference.

Please note that papers of a purely marketing/commercial nature will not be considered.

Speaker’s short bio and photo is re-quired and will be included in the con-ference program.

Speaker’s benefit: For the benefit of the industry, selected papers will be published in HydroCarbon Asia magazine (in print) and will also be presented on our website. All final pa-pers MUST be written in MS WORD, to facilitate publication of selected pa-pers in PetroMin. Power Point used for presentation will not be considered for publication.

REGISTRATION: To register as a Speaker or Delegate, please email [email protected] / [email protected] with the following details: Full name; Job title; Company; Address; Telephone; Mobile and Email address.

SPONSOR & EXHIBITOR OPPORTUNITIES: A wide range of sponsorship opportunities are available. Sponsors and exhibitors will be recognized in conference materials and at the event. For more information on Sponsorship & Exhibition packages, please email [email protected] / [email protected]

Documents

Serving Asia and the Middle East since 1990 Gas …petrominonline.com/pub/hcasia/mags/ha151012.pdf · Serving Asia and the Middle East since 1990 oct-dec 2015 V o L 25 N o.4 ... Reproduction