INTERNSHIP REPORT

Shell financial department

Shell lubricants

Made by: Lemdilki Sanaa

Acknowledgment

This report was made during my internship in shell oil at the financial department and the

lubricants business.

First, I would like to thank people who support, encourage, believe in me and most of all, love and

help me. And this is why; I wish to take this opportunity to express my sincerest and heart-felt

gratitude to them.

My family for their special care and especially my parents who are always as close as they possibly

can when the need arise, I will never thank enough.

Special thanks to Mr Saddiki and Ms Selma Mennaooui who have guided me attentively and

helped me during my internship.

I wish also to express my deep appreciation to the chief accountant Mr Lahrichi Hassan and all the

commercial equip specially Miss Leila.

And last not least, I wish to thank everyone who helps me in getting lot of information about Shell

morocco in the different businesses and department: Mr Hicham Alaoui (aviation financial

manager); Ms Manal Daoudi (lubricants marketing manager); Ms hayat (accountant)…

PLAN:

-Oil and gas in morocco

- About shell morocco

- Shell general business principles

- Shell Morocco marketing mix

- SSM activities

- The different functions at SSM

- Shell businesses

- Shell financial department

1) Accounting

2) Treasury

3) Managing information systems

4) Credit controlling

5) Contracting and procurement

- Lubricants sales department (BtoB)

1) Definition

2) Types of lubricants

3) Solid lubricants

4) Key financial measures in shell lubricants

-Sales support executive: Job description and activities

- Conclusion

Oil and gas in Morocco:

Morocco has a substantial infrastructure to support an active oil and gas exploration and production

industry. Major seaports, roadways, airports, pipelines and refineries are near large cities endowed

with the usual European and North American style amenities.

Morocco has upstream potential which is being developed. Although hydrocarbon occurrences in

Morocco are represented by a variety of liquid and gas accumulations ranging from dry gas in the

Rharb Basin, condensate in Essaquira, light oil in Essaquira and Prerif, to heavy oil in Tarfaya,

most sedimentary basins are still largely unexplored. Exploration activities can be conducted all the

year round.

Morocco has a well-developed downstream industry. Refineries owned and operated by Opil are

located at Sidi Kacem and at Mohammedia near Casablanca and have 7 million ton capacity. They

annually deliver about 4 million tons.

The Maghreb-Europe gas (MEG) pipeline has been operating since November 1, 1996. In its first

phase the MEG will supply Spain and Portugal with gas. The 350 bcf of gas flowing yearly

through the MEG can be doubled in the future to supply any other market on its way. The costs of

the MEG portion crossing the onshore Morocco and the straits of Gibraltar is $US 800 million

financed by gas consumers in Spain and Portugal. In Morocco, the exploitation of the MEG is

ensured in a private framework.

a) Upstream:

Compared to its prolific oil producing neighbour Algeria, the North African Kingdom of Morocco

has a modest upstream oil industry. Exploration for oil in Morocco first began in 1929 and by

1939, production was 5,000 tons/year (100 b/d) of oil. Crude oil output increased steadily up to the

early 1970's reaching a peak of 420,000 tons.. The country's current proven reserves are estimated

at 60,000 tonnes of oil, 1,020 million cu. m. of natural gas and 160,000 tonnes of gas condensate.

In addition to oil and gas resouces, Morocco also has oil shale deposits at Timahdit and Tarfaya in

the Atlas Mountains. Exploitation of these deposits has so far not been undertaken due to cost

factors.

The Moroccan sedimentary basins cover a total exploration area of 417,000 sq km. The number of

exploration wells so far spudded does not exceed 242 wells, a drilling density of 1 well per 1723 sq

km or 0.06 well/100 sq km.

A more detailed analysis shows that the onshore sedimentary basins, covering an exploration area

of 285,000 sq km, were tested by 214 wells, an exploration drilling density of 1 well per 1332 sq

km. Considering the 111 wells spudded in the 29,000 sq km of the producing Essaquira and Rharb

basins, the well density of the remaining onshore basins does not exceed 1 well per 2485 sq km.

The offshore sedimentary basins, under a water depth not exceeding 200 m, cover an exploration

area of 132,000 sq km. The total number of wells drilled, so far, is 28, an exploration density of

one well per 4712 sq km. 11 of these wells did not reach their objectives since 6 encountered

technical problems and 5 were spudded off structure. The density is subsequently reduced to one

well per 6950 sq km. 13 out of the 28 wells drilled are in the Tarfaya-Ifni area where a discovery

of heavy oil and important light oil shows were recorded.

The remaining offshore exploration areas (117,000 sq km) are tested by only 16 wells, that is a

drilling density not exceeding one well per 7310 sq km.

The most important oil and gas fields currently in production are the Essaouira Basin on the coast

producing oil and natural gas, and the Gharb Basin in the north of the country producing natural

gas. A considerable gas field has also been discovered at Meskala just north of Essaouira. The

national (upstream) oil company, Office Nationale de Recherches et d' Exploitations Pétrolières

(ONAREP), plans to develop this field and to sell the gas to the Office National de l'Electricité

(ONE) which will install a 2.25MW turbine power station linked to its national grid on the site.

The companies currently involved in exploration and production activity in Morocco are Ashland -

Santa Fe which is engaged in exploration work in the offshore area off the port of Agadir, and the

Société Chérifienne des Pétroles which is involved in exploration and production in the Essaouira

and Gharb Basins.

Lasmo has been awarded an initial, one-year prospecting licence to examine a block covering

7,000 sq.km in the Essaouira region.

The Ministry of Energy & Mining and the Office National des Recherches et d’Exploitations

Pétrolières (ONAREP) have recently announced the extensive hydrocarbon exploration and

production opportunities on offer to the international oil industry. With proposed changes to the

Hydrocarbon Law in 2000, the potential prospects both on and offshore are extremely attractive to

foreign investors.

b) Downstream:

The downstream oil industry of Morocco is well developed. The country has 2 oil refineries with a

total refining capacity of 150,000 barrels per day. The Société Anonyme Marocaine de l'Industriele

Raffinage (Samir) Refinery is a 125,000 b/d facility at the port of Mohammedia and the Société

Chérifiennedes Pétroles (SCP) is a 25 000 b/d plant at Sidi Kacem.

Since Morocco's domestic energy resources are not sufficient to satisfy local demand, it is required

to import up to 90% of its energy needs. Thegovernment is encouraging an increase in the use of

the country's coal deposits as an energy source and of hydroelectric power. However, it is still an

importer of some 6 million tons of crude oil.

Distribution and marketing of fuels and lubricants products is carried out by a number of

companies.

company  

shell

maroc 20%

afriquia 19%

total

maroc 18.5%

CMH 10.5%

mobil 10%

somepi 9%

petrom 6%

others 7%

French company Vitogaz is building an LPG import terminal and tank farm near Casablanca with a

capacity of 40,000 ton pa. Somas, which is owned by Elf, Afriquia, Shell, Total and Sodipi has an

underground gas tank farm at Sidi Larbi with a capacity of 110,000 tons.

Morocco is progressing with plans to privatise its energy sector. The government is currently in the

process of privatising the country's two refineries. In 1993 seven product distribution networks

were sold to Mobil, Shell and Total. Total Maroc, now 100% owned by Total Outre Mer following

its acquisition of the 50% stake previously held by the Société Nationale Des Produits Pétroliers

(SNPP) has sales of one million tons per year including jet fuel, LPG, heavy fuel and lubes and

holds 16% of the gasoline market with a network of 300 service stations. Other companies

privatised are the Société Marocaine des Hydrocarbures (CMH), and Dragon Gaz (LPG), acquired

by the Italian firm Dragofina.

About Shell Morocco:

Shell Morocco has been in operation since 1922 and has more than 5000 employees and 355

service stations.   

    

Vision

To be, in the energy sector, the company of first rank, recognized for the quality of its products and

services and for its responsible citizenship.

 Strategy

Morocco’s stated ambition is to consolidate a strong and positive reputation within the different

key stakeholders of the company (shareholders, staff, business partners, customers and the

community).

Goal

To be the company most admired in Morocco, recognized for the quality of its products, services

and its responsible citizenship. 

Main activities are:

Production and Distribution of Lubricants for motorists and industries

Storage and Distribution of oils

Storage and Distribution of LPG

Marine and Aviation

Off-Shore Exploration

Shell General Business Principles:

The Shell General Business Principles (SGBP) were revised in August 2005 to take account of the

establishment of Royal Dutch Shell plc and other developments since the last update in 1997.

The Shell Group Business Principles have existed in their written form since 1976, and have

remained highly consistent ever since, because the core values on which the Principles were

originally based have endured. The changes are largely revisions rather than radical alterations as

the existing principles still represent the way Shell wishes to do business but some areas have been

strengthened.

 Shell group business has eight Principles, which apply to all the business affairs and describe the

behaviour expected of every employee. The Principles are based on the core values of honesty,

integrity and respect for people.

They also indicate how they promote trust, openness, teamwork and professionalism, and pride in

what they do. As a global group of companies they have a responsibility to be a good corporate

citizen: to listen and respond to all points of view. 

The key changes in Shell and in society that have now to be taken into account in revising the

principles this year are:

The emphasis on compliance;

Growing concern about security post 9/11;

Emphasis on social performance and engagement with communities;

Diversity and inclusiveness;

Shell’s Enterprise First values and behaviours;

A focus on dialogue as opposed to the dissemination of information;

Development of sustainable development principles;

Clarity on treatment of facilitation payments.

All Shell companies are expected to comply with the Principles as a matter of course. In joint

ventures, they use their influence to persuade our partners to adopt and apply principles consistent

with theirs

Shell morocco marketing mix:

Product:

Shell offers a diversified range of products that covers all the market segments (auto, motorcycle,

Aeronautics…) which give it multi positions in the market.

But, SSM (société shell du Maroc) are focusing on Lubricants, the most profitable product, which

is always innovated to more satisfy customers needs and wants.

Price:

The prices policy taken by Shell concerns more Lubricants, because the prices of fuel and gas are

fixed by the government.

Lubricants prices differs depending on the different rang and the target customers products, the

high class products are always offered in very high prices, but the middle and the low class

products are sold with a very competitive prices comparing with the similar products in the market.

Place:

SSM has 375 stations in the whole morocco. To open new stations the marketing department

chooses the locations by analysing the different geographic zones and chooses a location where

there is no Shell station or somewhere that will help Shell to increase its sales.

. Promotion:

SSM follow the shell global sampling in advertising there products they just make some changes to

adapt these advertising to the Moroccan culture.

SSM make every year a special budget for theadvertising.

- SSM has different activities every activity can be defined as an independent company

( every activity has its own management team)

The activities at SSM are divided as follow:

Fuel and betermon: selling fuel products in BtoB level.

Example: military, big companies; schools…

Lubricants: selling lubricant products.

Aviation: selling fuel products to aeroplanes (chirozene or jet

products) == shell is operating in Marrakech and Agadir airport.

Maritime: selling fuel products to boats.

LPG: shell Butagaz

Chemicals

- Buying products and distributing them for the different activities are made by “supplying

distribution” they are also in charge of stocking products.

The different functions at SSM are:

HR

Internal audit

Finance

IT

Contract procurement

External affairs (do brand advertising)

HSSE

For the marketing staffs every activity do its own marketing separately

Shell businesses:

1. aviation:

The shell business aviation offers 3 types of products:

a) Shell Aviation fuels may be classified into three basic groups:

Aviation gasoline - for use in reciprocating or piston engines

Aviation turbine fuels (jet fuels) - for use in turbo-fan, turbo-jet and turbo prop engines

Power boost fluids

All Shell Aviation fuels are produced to stringent manufacturing specifications. At every stage

between refinery and aircraft tank, sampling and laboratory analysis check fuel quality. This

ensures that the fuel conforms to the requirements specified for the grade when it is delivered to

the aircraft. The Shell Aviation Quality Control System is organised on a worldwide basis. The

Shell Aviation service is provided directly in many countries of the world, a representation

matched by no other supplier of aviation fuel. This makes quality control much easier to achieve in

comparison to other suppliers.

b) AeroShell Lubricants:

- The aviation business had a convention with PETROM, CMH and TOTAL for the jet

products sells in the south airports were they operate; the control is taking by each one of

them for 5 years.

2. Shell Marine’s products:

Shell Marine Products provides fuels, lubricants and related technical services to the shipping

industry through a network of more than 700 ports in more than 60 countries.  It supplies about

4,000 customers involved in a broad range of shipping operations, including ocean-going tankers,

containerships, dry bulk commodity carriers, cruise-liners, ferries, fishing, as well as specialized

offshore exploration and production vessels, dredgers, and salvage vessels.

Marine Fuels

Shell Marine Products provides fuels and services at over 400 locations worldwide. This

availability means that we can supply high quality marine fuels and lubricants which give

outstanding performance in shipboard equipment.

Shell has a global commitment to promoting best practice and standards in the industry, working

hardest to ensure efficient delivery of our products to customers in a responsible and safe manner.

The demand for a wide variety and choice of fuels, especially in the development of low sulphur

fuel oil, is increasing and Shell Marine Products is committed to ensuring that our product integrity

is maintained to the very highest levels.

Our in depth knowledge of the bunker industry as well as the business of Shipping enables us to

provide you with the assurance you need to know you are working with a supplier who can have a

direct impact on helping to optimise your shipping operations.

Marine Lubrication

Maintaining optimum efficiency in marine equipment helps to achieve increased reliability and

lower costs across vessel operations - consistently improving profitability.

An effective lubrication programme is a critical part of any preventative or adaptive maintenance

programme designed to achieve optimum efficiency, ensuring that everything from the main

engine to the secondary equipment runs smoothly, no matter the environment in which it operates.

After many years of detailed research and development, Shell Marine Products has developed an

unrivalled portfolio of individual lubricants, each designed to address the specific challenge of

achieving optimum performance in the relevant application.

More than the strength of the individual products, companies working with Shell Marine Products

benefit from our global network of local experts. These specialists help our customers to develop,

implement and maintain effective lubrication programmes for each and every piece of equipment

in the fleet. This can result in:

Unsurpassed main engine cleanliness when using Shell Alexia 50

Minimal piston under crown deposits when using Shell Argina

Unrivalled protection against lacquer formation when using Gadinia AL

To list just a few of the advantages of SMP's lubrication programmes.

Using the concept of 'Oil Stress' (developed in our own research laboratory – the largest of its kind

anywhere in the world). Shell specialists ensure that the full requirements of every application are

thoroughly understood. Product and service recommendations are based on an integrated

understanding of the interaction between the equipment, its operating characteristics and the

lubricant to ensure they are well matched for optimum efficiency.

Shell financial department:

The financial department is divided into different parts:

- Accounting

- treasury

- MI ( management of information) planning

- Credit controlling

- Contracting and procurement

1. Accounting:

a) APAR: (account payable, account receivable)

- The APAR is a part of financial department which is divided into 2 parts; the first one

“account payable” trait the suppliers bills the second one “account receivable” trait the

customers bills.

- The employees are assigned to input all the information’s bills in the J.D Edward pages

- J.D. Edwards, also called JDE, is a software company founded in March 1977 in Denver,

Colorado by Jack Thompson, C.T.P."Chuck" Hintze, Dan Gregory and Ed McVaney. The

company made its name building accounting software for IBM minicomputers, beginning

with the System/34 and /36, focusing from the mid 1980s on System/38 minicomputers,

switching to the AS/400 when it became available. Their main AS/400 offering was called

JD Edwards World Software and is popularly called World. In 1996, J.D. Edwards also

launched a client-server version of their software called One World. The company's official

name was J.D. Edwards World Solution Company and it is located at One Technology

Way, in Denver, CO 80237. JDE was bought out by PeopleSoft in 2003. PeopleSoft, in

turn, was purchased by Oracle Corporation in 2005.

- Every month a charge forecasting is made by every business

- Every business should deliver its financial reports monthly.

- Supplier are paid by different facilities : check or transfer

- Supplier information’s such as code, way of payment… are included in the system

b) Fixed asset

The fixed asset is the part of financial department that manage the assets which mean there

depreciation and the detection of new needs.

c) Balance sheet

- the balance sheet is established every 3 months and reported to the global company

- SHELL follow the IFRS norms of international accounting

- The accounting operations is controlled by external auditors that come every period to audit

and approve the work done by the financial department

d) Taxes

Taxation is the act of laying a tax, or of imposing taxes, as on the subjects of a state, by

government, or on the members of a corporation or company, by the proper authority; the

raising of revenue; also, a system of raising revenue.

At SSM taxes are managed by Mr Saddiki who is in charge to collaborate with the government

and manage the impositions.

e) Stock

The stock is managed by people in the stock division inside the financial department.

f) General accounting

Employees in the general accounting make accounts in 4 periods during the year ( every 3

months).

2. Treasury

The name for the center of financial operations within a company. The Treasury is responsible for

such things as issuing new securities

3. Management of information planning

4. credit controlling

This division has in charge to block any client who didn’t pay his bills on time which mean the non

solvable clients.

5. contracting and procurement

This part of the financial department is the one who has in charge

Lubricants sales department (BtoB):

1. Definition:

A lubricant (sometimes referred to as "lube") is a substance (often a liquid) introduced between

two moving surfaces to reduce the friction between them, improving efficiency and reducing wear.

They may also have the function of dissolving or transporting foreign particles and of distributing

heat.

One of the single largest applications for lubricants, in the form of motor oil, is to protect the

internal combustion engines in motor vehicles and powered equipment.

Typically lubricants contain 90% base oil (most often petroleum fractions, called mineral oils) and

less than 10% additives. Vegetable oils or synthetic liquids such as hydrogenated polyolefins,

esters, silicones, fluorocarbons and many others are sometimes used as base oils. Additives deliver

reduced friction and wear, increased viscosity, improved viscosity index, resistance to corrosion

and oxidation, aging or contamination, etc.

Lubricants such as 2-cycle oil are also added to some fuels. Sulfur impurities in fuels also provide

some lubrication properties, which has to be taken in account when switching to a low-sulfur

diesel; biodiesel is a popular diesel fuel additive providing additional lubricity.

Non-liquid lubricants include grease, powders (dry graphite, PTFE, Molybdenum disulfide,

tungsten disulfide, etc.), teflon tape used in plumbing, air cushion and others. Dry lubricants such

as graphite, molybdenum disulfide and tungsten disulfide also offer lubrication at temperatures (up

to 350 °C) higher than liquid and oil-based lubricants are able to operate. Limited interest has been

shown in low friction properties of compacted oxide glaze layers formed at several hundred

degrees Celsius in metallic sliding systems, however, practical use is still many years away due to

their physically unstable nature.

Another approach to reducing friction and wear is to use bearings such as ball bearings, roller

bearings or air bearings, which in turn require internal lubrication themselves, or to use sound, in

the case of acoustic lubrication.

In addition to industrial applications, lubricants are used for many other purposes. Other uses

include bio-medical applications (e.g. lubricants for artificial joints) and the use of personal

lubricant for sexual purposes.

Lubricants perform the following key functions.

Keep moving parts apart

Reduce friction

Transfer heat

Carry away contaminants & debris

Transmit power

Protect against wear

Prevent corrosion

Seal for gasses

Stop the risk of smoke and fire of objects

Keep moving parts apart

Lubricants are typically used to separate moving parts in a system. This has the benefit of reducing

friction and surface fatigue together with reduced heat generation, operating noise and vibrations.

Lubricants achieve this by several ways. The most common is by forming a physical barrier i.e. a

thin layer of lubricant separates the moving parts. This is termed hydrodynamic lubrication. In

cases of high surface pressures or temperatures the fluid film is much thinner and some of the

forces are transmitted between the surfaces through the lubricant. This is termed elasto-

hydrodynamic lubrication.

Reduce friction

Typically the lubricant-to-surface friction is much less than surface-to-surface friction in a system

without any lubrication. Thus use of a lubricant reduces the overall system friction. Reduced

friction has the benefit of reducing heat generation and reduced formation of wear particles as well

as improved efficiency. Lubricants may contain additives known as friction modifiers that

chemically bind to metal surfaces to reduce surface friction even when there is insufficient bulk

lubricant present for hydrodynamic lubrication, e.g. protecting the valve train in a car engine at

startup.

Transfer heat

Both gas and liquid lubricants can transfer heat. However, liquid lubricants are much more

effective on account of their high specific heat capacity. Typically the liquid lubricant is constantly

circulated to and from a cooler part of the system, although lubricants may be used to warm as well

as to cool when a regulated temperature is required. This circulating flow also determines the

amount of heat that is carried away in any given unit of time. High flow systems can carry away a

lot of heat and have the additional benefit of reducing the thermal stress on the lubricant. Thus

lower cost liquid lubricants may be used. The primary drawback is that high flows typically require

larger sumps and bigger cooling units. A secondary drawback is that a high flow system that relies

on the flow rate to protect the lubricant from thermal stress is susceptible to catastrophic failure

during sudden system shut downs. An automotive oil-cooled turbocharger is a typical example.

Turbochargers get red hot during operation and the oil that is cooling them only survives as its

residence time in the system is very short i.e. high flow rate. If the system is shut down suddenly

(pulling into a service area after a high speed drive and stopping the engine) the oil that is in the

turbo charger immediately oxidizes and will clog the oil ways with deposits. Over time these

deposits can completely block the oil ways, reducing the cooling with the result that the turbo

charger experiences total failure typically with seized bearings. Non-flowing lubricants such as

greases & pastes are not effective at heat transfer although they do contribute by reducing the

generation of heat in the first place.

Carry away contaminants and debris

Lubricant circulation systems have the benefit of carrying away internally generated debris and

external contaminants that get introduced into the system to a filter where they can be removed.

Lubricants for machines that regularly generate debris or contaminants such as automotive engines

typically contain detergent and dispersant additives to assist in debris and contaminant transport to

the filter and removal. Over time the filter will get clogged and require cleaning or replacement,

hence the recommendation to change a car's oil filter at the same time as changing the oil. In closed

systems such as gear boxes the filter may be supplemented by a magnet to attract any iron fines

that get created.

It is apparent that in a circulatory system the oil will only be as clean as the filter can make it, thus

it is unfortunate that there are no industry standards by which consumers can readily assess the

filtering ability of various automotive filters. Poor filtration significantly reduces the life of the

machine (engine) as well as making the system inefficient.

Transmit power

Pascal's law is at the heart of hydrostatic power transmission. Hydraulic fluids comprise a large

portion of all lubricants produced in the world.

Protect against wear

Lubricants prevent wear by keeping the moving parts apart. Lubricants may also contain anti-wear

or extreme pressure additives to boost their performance against wear and fatigue.

Prevent corrosion

Good quality lubricants are typically formulated with additives that form chemical bonds with

surfaces to prevent corrosion and rust.

Seal for gasses

Lubricants will occupy the clearance between moving parts through the capillary force, thus

sealing the clearance. This effect can be used to seal pistons and shafts.

2. Types of lubricants

Gas

Liquid including emulsions and suspensions

Solid

Greases

Adhesive

a) Gaseous lubricants

Gaseous lubricants have a much lower viscosity and higher compressibility compared to liquid

lubricants, but the fluid-film principles apply analogeous to gases. Some examples for gaseous

lubricants are air (used in fluid bearings), technical gases, steam or liquid-metal vapours.

b) Liquid lubricants

Liquid lubricants may be characterized in many different ways. One of the most common ways is

by the type of base oil used. Following are the most common types.

Lanolin (wool grease, natural water repellant)

Water

Mineral oils

Vegetable (natural oil)

Synthetic oils

Other liquids

Note: although generally lubricants are based on one type of base oil or another, it is quite possible

to use mixtures of the base oils to meet performance requirements.

c) Lanolin

A natural water repellent, lanolin is derived from sheep wool grease, and is an alternative to the

more common petro-chemical based lubricants. This lubricant is also a corrosion inhibitor,

protecting against rust, salts, and acids.

d) Water

Water can be used on its own, or as a major component in combination with one of the other base

oils. Commonly used in engineering processes, such as milling and lathe turning.

e) Mineral oil

This term is used to encompass lubricating base oil derived from crude oil. The American

Petroleum Institute (API) designates several types of lubricant base oil identified[1] as:

Group I – Saturates <90% and/or sulphur >0.03%, and Society of Automotive Engineers

(SAE) viscosity index (VI) of 80 to 120

Manufactured by solvent extraction, solvent or catalytic dewaxing, and hydro-finishing

processes. Common Group I base oil are 150SN (solvent neutral), 500SN, and 150BS

(brightstok)

Group II – Saturates over 90% and sulfur under 0.03%, and SAE viscosity index of 80 to

120

Manufactured by hydrocracking and solvent or catalytic dewaxing processes. Group II base

oil has superior anti-oxidation properties since virtually all hydrocarbon molecules are

saturated. It has water-white color.

Group III – Saturates > 90%, sulfur <0.03%, and SAE viscosity index over 120

Manufactured by special processes such as isohydromerization. Can be manufactured from

base oil or slax wax from dewaxing process.

Group IV – Polyalphaolefins (PAO)

Group V – All others not included above

Such as naphthenics, PAG, esters, etc.

In North America, Groups III, IV and V are now described as synthetic lubricants, with

group III frequently described as synthesised hydrocarbons, or SHCs. In Europe, only

Groups IV and V may be classed as synthetics.

The lubricant industry commonly extends this group terminology to include:

Group I+ with a Viscosity Index of 103–108

Group II+ with a Viscosity Index of 113–119

Group III+ with a Viscosity Index of at least 140

Can also be classified into three categories depending on the prevailing compositions:

Paraffinic

Naphthenic

Aromatic

While lubricants for use in internal combustion engines may solely consist of one of the

above-mentioned oil groups, it is not desirable in practice. Additives to reduce oxidation

and improve lubrication are added to the final product. The main constituent of such

lubricant product is called the base oil, base stock. While it is advantageous to have a high-

grade base oil in a lubricant, proper selection of the lubricant additives is equally as

important. Thus some poorly selected formulation of PAO lubricant may not last as long as

more expensive formulation of Group III+ lubricant.

f) Vegetable (natural) oils

These are primarily triglyceride esters derived from plants and animals. For lubricant base oil use

the vegetable derived materials are preferred. Common ones include high oleic canola oil, castor

oil, palm oil, sunflower seed oil and rapeseed oil from vegetable, and Tall oil from animal sources.

Many vegetable oils are often hydrolyzed to yield the acids which are subsequently combined

selectively to form specialist synthetic esters.

g) Synthetic oils

Polyalpha-olefin (PAO)

Synthetic esters

Polyalkylene glycols (PAG)

Phosphate esters

Alkylated naphthalenes (AN)

Silicate esters

Ionic fluids

Solid lubricants

Teflon or PTFE

Teflon or PTFE is typically used as a coating layer on, for example, cooking utensils to provide a

non-stick surface. Its usable temperature range up to 350°C and chemical inertness make it a useful

additive in special greases. Under extreme pressures, teflon powder or solids is of little value as it

is soft and flows away from the area of contact. Ceramic or metal or alloy lubricants must be used

then.

Non-metals

Graphite, hexagonal boron nitride, molybdenum disulfide and tungsten disulfide are examples of

materials that can be used as solid lubricants, often to very high temperature. The use of some such

materials is sometimes restricted by their poor resistance to oxidation (e.g., molybdenum disulfide

can only be used up to 350°C in air, but 1100°C in reducing environments).

Metal/alloy

Metal alloys, composites and pure metals can be used as grease additives or the sole constituents of

sliding surfaces and bearings. Cadmium and Gold are used for plating surfaces which gives them

good corrosion resistance and sliding properties, Lead, Tin, Zinc alloys and various Bronze alloys

are used as sliding bearings, or their powder can be used to lubricate sliding surfaces alone, or as

additives to greases.

3. Key financial measures in shell lubricants:

a) Volume:

Volume is the quantity of lubricant products we sold. Lubricants measure in litres or

cubes. One cube is 1000 litres.

Supply chain (the manufacturing and distribution part of the business) often talks in

tonnes. The approximate conversion rate is one litre is approximately 0.85 kilos. 1litre

of coolant is 1.15 Kilos.

b) Proceeds:

Proceeds are the net selling price of lubricants to the customer after discounts.

The common term for proceeds outside of shell is sales revenue.

It is the amount of money received from activities, mostly from sales of products

before any deductions are made for operating or material costs;

Locally proceeds is reported in local currency (e.g. Euros for Finland), results are

reported globally in US $.

c) Manufacturing costs:

Also known as CoGS (cost of goods sold), or LPC (lubricants products cost)

Costs are allocated on a litre by litre basis. Each product in the Shell portfolio has

different price based on the components of the product e.g. the quantity and type of

base oil used, any costs associated with networking raw materials, and the quantity and

type of additives used.

The cost also includes an allocation of the general costs of the manufacturing Plant. For

example, each litre will contain an element for overheads, staff and management costs,

equipment costs.

d) C2:

The costs related to manufacturing hit between Proceeds and C2.Therefore our C2

result id Total proceeds minus the costs of manufacturing the products.

The common term for C2 outside of Shell is Gross Profit.

e) Distribution costs:

Also known as transport costs.

Distribution costs are the costs to deliver lubricant product from the Manufacturing

Plant to the customer.

Cost is allocated on a litre by litre basis. The cost is based on size of the load and

distance from the plant. The mechanism for doing this is called a “Drop size distance

table”.

f) C3:

C3 is the profit made from Proceeds after the deduction of manufacturing and

Distribution related costs (the supply chain part of the business).

The costs related to distribution hit between C2 and C3. Therefore the C3 result is the

C2 result minus the cost of distributing out products.

g) Marketing and selling costs:

Also known as Opex costs ( operating expenditure)

Marketing and selling costs are divided into 2 main categories- Sales Promotion and

Advertising costs and other marketing and selling expenses.

Other Marketing and selling expenses include Cost of the sales teams, costs of the

marketing team, Cost of the technical team and Customer Service costs.

Included in these costs are salaries of staff, travel and accommodation expenses,

hospitality spending and other manpower related costs.

Unlike manufacturing and distribution costs Marketing Selling Costs are not allocated

on a litre by litre basis.

h) C5:

C5 is the C3 result minus any costs associated with the sales and marketing functions of

the business.

C5 is the primary target for each country and is the main measure for how the cluster is

performing.

Sales support executive : Job description and activities:

Sales administration or support departments carry out essential functions in support of sales teams

in many different areas, including IT, telecommunications and finance. Sales support teams

undertake administration and other office-based duties for sales executives. The support offered

may include processing the work that the sales executive generates, and making appointments for

them to visit new or existing clients.

The person in charge of the sales support/administration department will often be referred to as the

sales support executive. It is their role to co-ordinate all the work within the team. Key activities

include:

handling all correspondence and organising contact between the sales executives and their

customers;

maintaining customer records;

keeping records of visits and sales;

taking, progressing and monitoring orders;

processing invoices and accounts;

preparing estimates and quotations for customers;

drawing up tender documents or contracts;

keeping records of sales targets and actual figures and compiling them into reports for

management

In the sales department I participate in some sales support tasks such as:

- Calling clients to verify if they prepared the payment if they’re not I ask them to prepare

the payments

- Contact clients accounting department to know which kind of problems they face with

SHELL Morocco.

- Taking note of the obstacle that I find to contact the right person for collecting the right

information.

- Etc.

Conclusion:

Finally, I want to precise that this internship was very interesting for me; it helps me to employ

my academic skills, to discover the companies’ world, to familiarise with employees and know

what is waiting for me after graduating.

At Shell Morocco I learned lot of thing that helps to improve my level of knowledge; in this

report I mentioned every information and detail learned in this multinational which make may

more knowledgeable about the multinational companies organisation and structure.

References:

API 1509, Engine Oil Licensing and Certification System, 15th Edition, 2002. Appendix E,

API Base Oil Interchangeability Guidelines for Passenger Car Motor Oils and Diesel

Engine Oils (revised)

Boughton and Horvath, 2003, Environmental Assessment of Used Oil Management

Methods, Environmental Science and Technology, V38

I.A. Inman. Compacted Oxide Layer Formation under Conditions of Limited Debris

Retention at the Wear Interface during High Temperature Sliding Wear of Superalloys,

Ph.D. Thesis (2003), Northumbria University, ISBN 1-58112-321-3

Mercedes-Benz oil recommendations, extracted from factory manuals and personal

research

Measuring reserve alkalinity and evaluation of wear dependence

Testing used oil quality, list of possible measurements

Lubricant Additives: Chemistry and Applications, Leslie R. Rudnick, CRC Press.

http://www.mbendi.com/indy/oilg/af/mo/p0005.htm

http://www.shell.com/home/content/ma-en