2. PREPARED BY R amy S. Elreqib 201370492 Wesam Abusalah 201370515 SUPERVISE D BY Dr. Ananth Chiravuri Faisal Alobeidli 200101313

3. Abu Dhabi Oil Refining Company (TAKREER) was established in 1999 to take over the responsibilities of refining operations from Abu Dhabi National Oil Company (ADNOC). This covers the crude oil and condensate refining, supply of petroleum products and production of granulated Sulphur. Takreer’s main objective is to develop the refining industry in the UAE which started with the inauguration of Abu Dhabi Refinery (ex. Umm Al Nar) in 1976 and Ruwais Refinery in 1982. Takreer is considered a prominent oil refining company regionally and internationally contributing to oil markets and to the rapid growth of UAE economy. Since our inception, Takreer maintained its position as a leading refining company, thanks to the high standard and efficient refining operations consistent with sound health, safety and environment practices as well as the world standard performance of both operations and employees. Introduction Introduction:

4. Illustration of a standard refinery system Oil Distillation A refinery process can be divided into three parts: crude oil operations, production and product blending. Naphtha is a complex mixture of hydrocarbons with boiling range of 38 to 205°C, which corresponds to carbon numbers of C5 to C14. Naphtha is produced from petroleum crude oil by fractionation at crude distillation tower working under atmospheric pressure. Treated Naphtha is sent for further processing by splitting it into: Light Naphtha that consists of C5 and C6, that passes to isomerization unit Heavy Naphtha with carbon number of C7 to C14, that passes to a catalytic reforming unit. After that both resulting streams are being blended together in a process called gasoline blending, to produce gasoline fuel as a final product. What is Naphtha?

5. Naphtha is a complex mixture of hydrocarbons with boiling range of 38 to 205°C, which corresponds to carbon numbers of C5 to C14. Naphtha is produced from petroleum crude oil by fractionation at crude distillation tower working under atmospheric pressure. Treated Naphtha is sent for further processing by splitting it into: Light Naphtha that consists of C5 and C6, that passes to isomerization unit Heavy Naphtha with carbon number of C7 to C14, that passes to a catalytic reforming unit. After that both resulting streams are being blended together in a process called gasoline blending, to produce gasoline fuel as a final product. What is Naphtha? What is Kerosene? Kerosene is an intermediate product which is treated to produce Jet fuel used is aircrafts.

6. Takreer Business Model Business Strategy: They strive to be a good neighbor by providing sustainable benefits to local communities, and by incorporating economic, environmental and social codes of conduct into their business strategy. They strive to foster a responsive, diverse organization that is highly-motivated, team-oriented, and dedicated to innovative solutions and open communication. Value : The construction of a carbon black delayed coker (CBDC) at the Ruwais Industrial Complex to produce higher value added products such as synthetic rubber and resins from the crude oil refining and heavy residual oil recycling. This carbon black delayed coker project reflects the $10 billion refinery expansion planned in Ruwais Industrial City. Capabilities : They owned skilled resources with qualifications and experience. The potential value of the company's size, however, is the knowledge held by more than 1,800 of the region's brightest people. The Ruwais and Abu Dhabi Refineries produce over 23 million tons per year of products for the local and export markets.

7. Dimensions of innovation (4Ps Model) Product (What Takreer offer) useful petroleum products like; Gas, Diesel, Naphtha, kerosene, etc. Process (How Takreer Create and deliver the offering Purchasing the crude from ADCO & GASCO and use their own refinery process divided into three parts: crude oil operations, production and product blending to produce useful petroleum then distribute to customers Position (Where Takreer Target that offering) Supply to petrol Stations, airports, houses by ADNOC Locally and Gulf region. And working on internationally supply. Paradigm (How Takreer Frame what she do) Construction of a carbon black delayed Coker (CBDC) at the Ruwais Industrial Complex to produce higher value added products such as synthetic rubber and resins

8. Porter 5 Forces Analysis Force typeGradeFactors increasing ForceFactors lowering force Buyer PowerNeutralThere is a market price Little power to individual customers Supplier Power High Governments have significant power over licensing costs and deals as they are in a monopoly position CompetitorsHigh Lots of very large powerful competitors with significant funding available Powerful companies may been seeking larger oil fields to exploit New EntrantsLowOil companies tend to be wealthy Skills and technologies needed are a significant barrier to entry SubstitutesLow Alternative forms of energy (e.g. solar power, nuclear power) Gasoline fuel still the predominant fuel for transport which will not change for many years

9. Value Curves #Competitive Alternative Market wants Takreer Competitor 1Oil Exploration10 8 8 2Oil Field Development10 8 6 3Oil Production10 8 6 4Shareholder Value8 6 10 5Safety Record9 7 8 6Environmental Performance8 7 8 7Society6 5 5 8Local Distributor Initiatives 10 9 9Going beyond clean-up of a disaster 109 Building relationship of trust in communities 10 7

10. Takreer SWOT Analysis

11. Background and discussions of the problem As in most industries operating in a competitive environment, Takreer must maximize their economic results, to do that; they must maximize their margins The goal is to find an appropriate way to maximize the productivity of Naphtha and Kerosene, which are the most valuable kinds of liquid products during the process of oil refinery, for the objective of giving the best overall margin. It is not possible to manufacture just one product from the treatment and conversion units that make up a traditional refinery.

12. Proposed Solutions and effects on innovation In order to maximize the productivity of Naphtha and Kerosene, the Company should do utilization of better crude oils mixing procedure. The results: SIDescription Old ProductionNew Production 1Total NAPHTHA produced268.5m3/h310.2m3/h 2Total Kerosene produced73.82m3/h105.7m3/h The third solution mentioned above was chosen, because in Abu Dhabi refinery, new hydrocracker and cooker are costly and other issue is that they are not allowed to install new cocker or update the existing one due to their hazard nature and being close to residential areas.