Introduction of S-OIL

KPIC

KNOC

ISU Poongsan M etal

LS Nikko

Storage Tanks (Shinwon Area) SPM

S-OIL Refinery in Ulsan, Korea

1. Location S-OIL is located at On-San national Industrial area in Ulsan, Korea.

Ulsan

Seoul

Yeosu

Daesan

Inchon

(Yeosu)

(Daesan)

(Ulsan)

(Inchon)

(Ulsan 669 MB/D)

Ⅱ.온산공장 소개

2

#4 Facility #3 Facility

#2 Aro. Complex

HYC

#1 RHDS

#3 CDU

#2 Facility

#2 CDU

#1 Aromizer

#1 PX

RFCC

#2 RHDS

#1 Facility

#1 CDU Lube

#1/2 Jetty

#3 Jetty

SPM 1 & 2

KPIC LS Nikko

2. View of S-OIL

Area : 2.74 mil.㎡

- SPM : 350.000 DWT x 2ea

- 9 Shipping Berths : 5,000 ~ 120,000 DWT

Ⅱ.온산공장 소개

3

#5 Facility

SSangyong Oil Refin ing Co., Ltd .,

‘ 80

Korea Iran Petro leum Co., Ltd . ‘ 76

#1 CDU(90MBD) ‘ 80

Lube base o il p lant ‘ 81

4

6MB/D

60MB/D

178 (Unit : b il. KRW) 822

#2 CDU(240MBD) ‘ 91

330MB/D

90MB/D

#1 Arom izer(BTX) ‘ 91

J/V(Saudi Aram co) ‘ 91

#3 CDU(250MBD) ‘ 95

580MB/D

3 ,474

BCC(Hydrocracker / #1 RHDS) ‘ 96

885

BCC(RFCC / VGO HDS) ‘ 97

181MB/D

#1 PX plant ‘ 97

1,550KTA 97MB/D

900KTA

S-OIL. Ltd . ‘ 00

8,083

BCC(#2 RHDS) ‘ 02

252MB/D

12 ,232

1 ,600KTA

#2 Arom atics Com plex

‘ 11

20,530

669MB/D

2 ,430KTA

34 ,723

790KTA

14MB/D

28MB/D 40MB/D 43MB/D

History of S-OIL

170 (Unit : m il. USD) 783 3 ,309 843 7 ,698 11 ,650 19 ,552 33 ,070

(As of 2012 , $1 = 1 ,050 KRW)

Atmospheric Residue

LPG

Naphtha Kero

DSL

#1 /2 /3

CDU

Crude

3. Production Process The main production process step

CFU

Benzene Toluene M-Xylene Para Xylene

Benzene #1

ARO

#2 ARO

Aromizate Para Xylene Benzene

#1 PX Heavy Aro.

#1/2 Aromatics Complex

#2 PX

DAO

MDO

HDO

Asphalt

Lube Base Oil / Wax

Lube Base Oil Complex

Lube Plant

#1 VDU

SDA

Vacuum Gas Oil

Hydrotreated Heavy Oil

Lube Base Oil

LPG Naphtha

Kerosene ULSD

Propylene

Gasoline

MTBE / Alkylate

LPG

Diesel

Naphtha ULSD

Naphtha DSL

LS B-C

MTBE Alkylation

VGO HDS

VGO

#2 VDU

Bunker-C Cracking Center

Hydro- cracker

#2RHDS #1RHDS RFCC Vac. Residue

Ⅱ.온산공장 소개

5

“Laying the foundation for growth w ith strategic investment in upgrading facilit ies”

“Stable growth w ith contribution to the local community, advanced management of safety and the environment and operational

excellence”

“Sustainable profitable growth through new investment”

6

“The most competit ive refining and marketing company in Asia Pacif ic region”

S-OIL Customized OTS Introduction

Background Progress

Background

Increase of new employees

• Retirement of experienced operators

• Expansion of the Refinery

Less opportunities for S/U & S/D

• Extended turnaround interval

• Decrease of process troubles due to enhanced

reliability of facilities

Increase of process complexity

Training simulator is the most effective method

to secure skillful workforce

• Increase of integration between processes for

more efficient operation

Challenges and Solutions

Advantages of training simulator

Training Simulator

( National Training Laboratories, The Learning Pyramid ) Most effective training method

• Fastest and most effective way for system familiarization

• Training simulator provides realistic, hands-on training

of operation without any operation risk

• Operators can obtain various experience in a short time

Standardized knowledge transfer

• Standardized knowledge transfer with systematic training programs

• Standardized and effective responds to various operation cases

(Normal, S/U, S/D, Emergency Case)

Background Progress Challenges and Solutions

Global company trend

• Global leading companies such as ExxonMobil, Shell, Total increase application of training simulator

• Other domestic refineries(GSC,HDO) also introduced training simulator and increase its application

Expected benefit

• Unplanned S/D, C/D would be reduced

• Efficient and Safe turn-around

• Profit improvement through operational excellence - According to World Oil report (2012), decrease the number of unplanned S/D is 3 times a year which result in saving loss from unplanned S/D : 2.6 mil.$ - Typical loss from operational error in the Refinery about 1.2 mil.$

<1M$

1~3M$

3~10M$

10~20M$

20~30M$

> 30M$

Decrease number of unplanned S/D per year & Saving Loss

Training simulator is key solution to achieve

“Best-in-class operational excellency”

Background Progress Challenges and Solutions

Training center named as “S-OIL Operation Training Center” located in Welfare and Education BLDG

Training center have 8 rooms and 15 trainees can be trained at a time.

Operation training center

Eight(8) Major Processes : #2 CDU, #2 VDU, #2 RHDS, HYC, RFCC, #3 HMP, #1 ARO, #1 PX

Completion of training simulator introduction

Kick off

13.07.02

MAT (Model Acceptance Test)

13.12 ~ 14.03

FAT (Factory Acceptance Test)

14.04 ~ 14.06

SAT (Site Acceptance Test)

14.05 ~ 14.06

Completion of Introduction

(14.6.27) Simulation Training

14.07 ~

(복지교육관)

Background Progress Challenges and Solutions

It was very tight to deliver 8 process units within a year.

Most of the 8 process units were complex ones, including Aromatics, PX, RFCC, RHDS, HYC

Designed heat and material balance was not applicable due to plant expansion/modifications, so reconciled heat and material balance needed to be created

Most Challenging and Aggressive Delivery

Resource Arrangement Challenges

For some process units, T/A schedule was overlapped with OTS project schedule, so it was very difficult to fix resource arrangement and testing schedule for S-Oil.

The S-Oil project team members had to be away from plant operation for MAT/FAT activities, which were 2 weeks for each MAT and FAT of each process unit, so there was challenge for operation team in the normal operation.

Background Progress Challenges and Solutions

Challenges

Steering Committee from both S-Oil and Schneider Software delivery was formed in the very beginning of project execution and guided the project execution at management level

Dedicated Project Manager and Project Coordinator at Project execution level

Management Commitment

Best and Consistent Resource Arrangement from S-Oil

S-Oil arranged the same best resource (operators & managers) throughout the project execution, so the tests were highly effective and efficient, and both technical and project management issues were addressed timely

Background Progress Challenges and Solutions

Solutions

Closely Work with Schneider Project Team

Reconciled heat and material balance was firstly created in Pro/II based on actual operation data by Schneider Project Team and then validated by S-Oil before they were implemented in OTS

Highly professional OTS delivery team together with excellent Korean local project management and technical support

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