Experience of an Indian Refinery Project Execution Experience of an Indian Refinery

Now CPCL is a group company of IndianOil Inception CPCL owns two Refineries in southern part of India with 220 thousand Barrels Crude oil processing per Day Company established in 1965 as a JV of GoI, NIOC of Iran & AMOCO, USA 50 thousand bbl / day grass root Refinery near Chennai, commissioned in 1969 in a record time of 27 months Before my collegues on the dias make presentation on Project execution ,let me give you an Indian Refiring Company's experience on project execution. Now CPCL is a group company of IndianOil Slide 2 of 31

Major secondary processing Panorama of Growth Year Capacity MMTPA Major secondary processing units 1969 Initial Capacity 2.5 Lube ,Cat Reforming,Diesel Desulphurisation,Vis Breaker 1980 Debottlenecked 2.8 1984 Doubled (Refinery-II) 5.6 FCC ,Wax 1985-88 Value Addition Projects Propylene,Food Grade Hexane 1993 Debotllenecked 6.5 CBR Refinery 7.0 2002 Debottlenecking-CBR 7.5 2004 3 MMTPA Expansion at Manali 10.5 Hydro Cracker, Cat.Reforming,Soaker Visbreaker CPCL has grown from a small 2.5 MMTPA refinery in 1969 to a Refining capacity of 10.5 MMTPA now. Its Manali Refinery is one of the most complex refineries in the country It’s the first refinery in the country to have two major secondary units i.e. FCC and Hydrocracker , coupled with mega LOBS production capability of several grades. It may be noted CPCL has cracked into the prestigious list of S & P . CPCL is one amongst the seven companies from India in the Global list of 300. CPCL has also leap fogged into rank no 6 from a position of 20 in 04 of Dun and Bradstreet amongst Oil and Gas sector .

Panorama of Growth Refining capacity expanded by revamp of plants and addition of new units In 2004 Capacity expanded from 130 to 190,000 Bbls/day by addition of new Crude Distillation, Hydro-Cracker, Cat.Reforming, Soaker Visbreaker Units Slide 4 of 31

Green Power Generation ENERCON Suzlon RRB Vestas NEC Micon Pioneer Asia GE, India Project was completed in 6 months from order

Water Management Projects In 1991, commissioned a 2.5 MGD City Sewage Reclamation plant In 2001, commissioned RO Rejects Recovery plant Additional City Sewage Treatment Project Capacity: 2.5 MGD Project cost : Rs. 46.68 Cr Commissioned : Dec ’06 Sea Water Desalination Project Capacity: 5.8 MGD Project cost : Rs. 231.34 Cr Scheduled completion: Dec ’07 Slide 6 of 31

Refinery Expansion Cum Modernisation Project 2004 A success story in Project Execution Licensor Selection Implementation Strategies Commissioning

Process Licensor Selection

Associated Utility & Offsite facilities

Implementation Strategies Project executed on a combination of Conventional and LSTK basis CDU / VDU, OHCU and U&O executed on conventional basis Hydrogen, NHT / CRU, VBU & SRU executed on LSTK basis Entire LSTK (200 M US$) bidding process completed in 99 days

Major Contractors Associated with the Project Bridge & Roof Petron Spicgel Nicco EPIL EIL BHEL BHPV L&T Punj Lloyd / Petrofac

Safety Management Safety features were incorporated right from design basis stage itself and during Finalization of P&ID & process package, Detailed engineering, 3 D modeling review, Hazop review etc. Safety was given top most priority during construction and commissioning.

3D Model & Hazop Review 3D Model (Plant Design Software package) was reviewed by CPCL in two stages. After the completion of 50 % & 100 % of engineering Interference checks were carried out Approach to equipments and valves for operation and maintenance After Engineering, Hazop review was carried out extensively in the presence of Licensor, PMC, CPCL team comprising of experts from Operations, Process, Engineering and Contractor.

Human resources Developing the trained manpower Operators with experience in high pressure units were positioned one year ahead. Blend of experienced operators from with in the refinery and new recruits. Class room training for two weeks. On the job training for two weeks in similar units. Simulator training for panel engineers. Interactive sessions for atleast one hour in a day. Pre-requisite for smooth commissioning is placing engineers right from beginning Operators with experience in high pressure units were recruited one year ahead. Blend of experienced operators from with in the refinery. (40:60)

Pre-commissioning Chemical Cleaning and Pickling Pressure Relief Valve Registration, Tagging, and verification of Relief Pressure Rotary Equipment & Instrument Checklist Check on Fire protection & Safety system Construction Safety Audit External Safety Audit by OISD team Construction area Turnover Chemical cleaning – pickling for compressor suction lines Construction safety audit – CPCL IOC Team

Pre-commissioning Special Concerns unique to High Pressure Units Makeup Hydrogen System RGC & Auxiliary Systems HP system - Reactor Internals PEG and RTJ Flanges Furnaces HP Loop Leak Test Interconnecting piping must be chemical cleaned and flushed thoroughly with nitrogen. Keep the RGC Dry Gas Seal System CLEAN Availability of spare MUG Reliable Recycle Gas compressor

High Pressure Reactors Pre-commissioning Important checks done Reactors expand several feet when heated – interference from piping and instrumentation Reactor internals marked before removing for easy reinstallation Levelness and tight fit of internals. Deviation can cause mal-distribution and poor radial spreads Coat the nuts and bolts with high temperature anti-seize compound Installation of quench piping Positioning of Temperature instruments inside Catalyst loading

Focus on High Pressure circuit Protocol established to check all flanges in HP circuit Healthiness of flange face Right gasket in place Torque tension values PSV Setting and validity Spring support release HP flange box-up Orifice plate Control valve stroke check Direction of High pressure valves PSV setting & validity Spring support release Vessel box up Column internals & Seal pan test Exchanger bundle pulling (Random

CPCL commissioned the entire process units without any setback and in a safe manner within stipulated time. Hydro cracker unit was commissioned in 35 days smoothly from pressure test of HP system in line with the process licensor schedule

Chevron Report on Commissioning ……This was a very successful and smooth commissioning. The entire CPCL staff should be credited for the many hours of hard work and preparation that went into this successful startup. When rating Commissioning of Hydro-crackers this one would be rated at the top and would be considered “WORLD CLASS”

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