Organisational Impact

In sending delegates to this training seminar, the organization will gain the following benefits:

• Improved creation of cost structures for refinery process unit production planning and scheduling
• Greater commitment to the process of planning and controlling costs and budgets
• More rapid reaction to changes in the business environment
• Closer alignment of strategic and operational goals
• More cohesive system energy management
• Improved planning and scheduling approach with sustainable plant profitability and optimization

Personal Impact

In attending this training seminar, individual delegates will gain the following benefits:

• Practical ideas for developing and allocating cost structures for refinery process unit
• Enhanced competency in making a more effective contribution to strategic and operational planning
• Up-to-date understanding of main trends in refinery margins
• Greater confidence in dealing with strategic and operational risk
• Familiarization with state-of-the-art spreadsheets for cost management
• Improved ability in appreciating that production costs are a synthetic index that directly affects the bottom line

What are the Goals? 

By the end of this training course, participants will be equipped with the knowledge to conduct the following activities in their refineries:

• Determine by various techniques the cost of individual streams in the refinery and individual processes
• Use these costs to calculate the enhancement potential for blending lower cost, on-specification products
• Optimize refinery utility systems such as cooling water, steam and power generation
• Apply energy saving techniques to develop energy saving projects
• Enhance the production planning activities of the refinery via cost management

This training course is designed to provide technical and practical approaches for executing petroleum refinery related cost management.

This training course is suitable to a wide range of professionals but will greatly benefit:

• Refining Oil & Gas Field Engineers
• Process plant energy managers/coordinators
• All professionals involved in Production, Planning and Scheduling
• Blending professionals
• Financial Analysts

How will this Training Course be Presented? 

Oil Refinery Cost Management is a hands-on, stimulating learning experience. The training course will be highly interactive, with opportunities to advance one’s opinions and ideas. Participation is encouraged in a supportive environment.

To ensure the concepts introduced during the training course are understood, they will be reinforced through a mix of learning methods, including lecture style presentations, open discussions, case studies, and short videos. Hands on computer software and simulations will be provided to illustrate the application of costing and cost management. The case studies provided for group work will be re-enforced with practical exercises in excel and there will be ample opportunities for discussion and sharing of experiences.

Day One: Overview of Cost Management

• Introduction to cost management
• Resource planning
• Cost estimating
• Cost budgeting
• Cost control
• Energy and its Effect on Refinery Profitability
• Refinery material & Energy Balance
• Energy Benchmarking
• Fuel, power and steam costing methodology

Day Two: Crude Oil Refining

• Types of refinery
• Key Process Units
• Refinery & Process Utilization
• Global refining situation
• Refining costs
• Refining Investment
• Size and complexity
• Location and logistics
• Maintenance costs

Day Three: Refinery Process Unit Operational Costs

• Physical separation: Crude & Vacuum Unit Distillation
• Product enhancement:
• Hydrotreating,
• Catalytic Reforming
• Fluid Catalytic Cracking
• Hydrocracking
• Bottom of the barrel upgrading
• Process simulations
• Advanced Process Control and its benefits
• Blending for Product Specifications
• Blending to reduce product costs

Day Four: Economic Evaluation and Cost Management

• Cost Estimation
• Refinery Complexity and Netback
• The gross refining margin
• The net refining margin
• Factors that influence margins
• Margins according to region
• Refinery Utility System
• Steam and Power System Optimization
• Energy Efficiency; the Effect of Energy on Refinery Profitability
• Quantification of fuel loss, oil accounting

Day Five: Process Heat Integration & Equipment Efficiency; Effective Energy Management

• Process Heat Integration
• How heat integration works?
• Introduction to Pinch Technology
• Heat availability Curves and Energy Targeting
• Equipment Efficiency; Effective Energy Management
• Fired heaters
• Rotating equipment
• Heat Exchangers
• Energy Focused Organisation
• Course review and close

BTS attendance certificate will be issued to all attendees completing minimum of 80% of the total course duration.