June '01Issue.b.

qxd 8/2/01 3:56 PM Page 1

Third Quarter 2001

Knowledge Makes The Difference
Refining Process Service (RPS) is the leader in providing both public
and in-house technical seminars to the petroleum refining industry
worldwide. To address the training needs of our clients, KBC has
developed new training courses to supplement KBC’s existing
EDGE
topics on reliability, availability, maintenance, risk management,
modeling and petrochemical process technologies.
In conjunction with RPS, KBC can offer a complete training

offerings, instructed in public and private sessions.
The current combined KBC/RPS courses offered in public seminar
series cover all areas of refining technology including the major
refining process technologies, planning and economics, and energy
optimization. Future additions to the program will likely contain
Refiner’s
program, customized to meet a client’s unique needs. The KBC
developed training modules not only contain the most current
technological advances, but also will contain KBC’s own unique
experience. The KBC perspective will focus on improving
profitability based on over 23 years of delivering profitability
to their clients worldwide.

For more information, please visit www.petroleumrefining.com/programs. Helping Clients Improve Profits and Achieve Pacesetter Performance
Upcoming Courses Offered Date Instructor

Economics of Petroleum Refining
How to Improve Refining Profit Margins
Improving Refinery Energy Efficiency
Delayed Coking Process Technology
Delayed Coking Unit Operations – Forum
Future Courses to be Offered
Energy and Lube Processing
September 11-12, 2001 Larry Clevenger, Principal Consultant
Gery Hickman, Principal Consultant
September 13-14, 2001 Larry Clevenger, Principal Consultant
Gery Hickman, Principal Consultant
October 24-26, 2001 Zoran Milosevic, Senior Staff Consultant
November 5-7, 2001 Jerry DeHey, Vice President
November 8-9, 2001 Jerry DeHey, Vice President
Spring 2002
At KBC, we focus on improving
our clients’ competitive
position through innovative
business solutions, allowing
clients to achieve superior
returns on their invested
capital and achieve pacesetter
status within their industries.
Our services include:
Yield Optimization
Energy Improvement
Clean Fuels Impact Reviews
Reliability, Availability &
Maintenance
Planning & Scheduling
PROFIT IMPROVEMENT SUCCESS AT JAPANESE REFINERIES
Yuji Takao - Koa Oil Company Ltd
Minoru Horike - Koa Oil Company Ltd
Paul Kennedy - KBC Process Technology Ltd
Sanjay Bhargava - KBC Process Technology Ltd
Koa Oil Company, Ltd. owns and operates
two refineries in Japan with a total crude capacity
of 252,000 barrels per day. Marifu is the original
Koa refinery; it is a high-conversion sour crude
refinery with the additional capability of needle
coke production from sweet crude. Osaka is
the newest refinery in Japan, a medium conver-
define a representative Base Case performance
for later evaluation of PIP identified opportunities.
Koa Base Case performance was defined in a
Petrofine refinery model calibrated to a typical
month of operating data.
Opportunity ideas came from both Koa and
KBC and the list was constantly improved and
refined as the PIP progressed. For each opportunity,
the recommendation was ‘implemented’ in the
computer model as a ‘step out’ from the base
case. Since the model is an accurate full inte-
gration of the process units and finished product
blending, an accurate economic summary for
each opportunity was given. Importantly, specialists

EDGE PRSRT STD Unit Specific & Refinery-wide

sion refinery with power generation from the
vacuum residue.
evaluated opportunities from a technical stand-
point. Consequently, the extent of improvement
Refiner’s U.S. POSTAGE
PAID
PERMIT NO. 600
Process Simulation
Change Leadership
In mid 1998, Koa began working with KBC
on a Profit Improvement Program (PIP) with a
could be accurately measured so that any refinery
concerns could be fully addressed.
KBC Advanced Technologies plc HOUSTON, TEXAS
target to improve the refinery profitability by Table 1 shows that the Phase 1 identified PIP
Implementation Services over 50¢/bbl and to create a profit oriented culture
KBC House benefits were largely achievable with no investment.
Technical Services for more effective continuous improvement and
42-50 Hersham Road
Walton on Thames Outsourcing sustained profitability. In parallel with the PIP, Table 1
Surrey KT12 1RZ Koa also implemented several other initiatives
Upstream & Downstream Most Benefits Require No Investment
UK to promote improved profitability and transfor-
Risk Management
Telephone: +44 1932 242424
mational change. For instance, an aggressive Phase 1 Identified Marifu Osaka Total Ratio
Facsimile: +44 1932 224214 Integration Services Koa Advanced Process Control implementation
M$/y M$/y M$/y M$/y
program supported the PIP by allowing continuous
KBC Advanced Technologies, Inc.
Benchmarking Non Investment 26.2 18.7 44.9 88%
maximization of PIP benefits. In partnership
580 Westlake Park Boulevard Capital Project Review/ with KBC, a RAM (Reliability, Availability, Minor Investment 4.6 1.6 6.2 12%
Profit Suite 1150 Due Diligence Maintenance) program and an LP Upgrade Major Investment 0.0 0.0 0.0 0%
Improvement Houston, TX 77079 project were also successfully completed.
Design Services Total M$/y 30.8 20.3 51.1 100%
at Japanese Telephone: +1 281 293 8200 ¢/bbl 75.9 58.5 67.9
Facsimile: +1 281 293 8290 Unit Specific Studies Phase 1 : Base Case Development &
Refineries
Strategic Planning Opportunity Evaluation

Business Risk The Base Case began with round table meet-
Management Consulting ings on site over a two-week period to cover all
aspects of refinery operation from process units
to finished product blending. The combined
e-mail: kbc@kbcat.com experience and specialized skills of the Koa/KBC
Web Site: www.kbcat.com team were used to analyze and challenge the current
refinery operations and practices, as well as to
Continued on pg. 2
June '01Issue.b.qxd 8/2/01 3:56 PM Page 2

Profit Improvement Success (Continued from pg. 1)

Phase 2 : Implementation of Opportunities Phase 3 : Sustainment, Implementation and Overall Benefits (to end Y2000) Table 2
‘World Class’Methods To Ensure Marifu Plant Capacity And
The Phase 2 Implementation of the project began in April The PIP basis benefit at the close of Phase 3 is 110¢/bbl
Ongoing Improvement KPI Improvements During PIP
1999 with an initial contract for 12 months. KBC provided as shown in Figure 3.
two people full time on each site and when required could The following Phase 3 objectives were successfully Figure 3 Process Unit PIP Base PIP Current
call on specialist support from KBC worldwide. achieved in a one year period that commenced in April 2000: Implemented Koa PIP Benefits Crude Distillation, kbpd 117.0 127.0
Koa and KBC worked together to develop the • Sustainment of Phase 2 achieved benefits Up To End Of Phase 3
Vacuum Distillation, kbpd 35.8 38.4
Implementation Plan based on the Phase 1 Opportunity List. • Implementation of new opportunities to target Overall PIP Opportunities (M$/y) VR Cutpoint, TBP °C 572 580
From this plan, the Phase 2 financial targets and timings value of 25¢/bbl Osaka + Marifu
Catalytic Reformer, kbpd 22.0 23.0
80.0 - - 110
were determined. Each non-investment opportunity was • Introduce methods that will close some gaps Plan (Phase2 & Phase3) - 100 Max HSR cutpoint, TBP °C Base +5
70.0 -
prioritized depending firstly on the agreed potential benefit between Koa and ‘World Class’ Stretch Target - 90
HSR to mogas, kbpd 0.62 0.00
60.0 - Low Target - 80
and secondly the confidence that the opportunity could be –Backcasting of actual performance versus plan Implemented - 70
Mild Hydrocracker, kbpd 23.0 30.0
50.0 -
successfully implemented. Owners were assigned to each –Improved Process Monitoring using more frequent lab

c/bbl
M$/y
- 60 Conversion, Iv% 25.0 40.0
40.0 -
opportunity from both Koa and KBC. The agreed imple- data combined with simulation applications - 50 Fluid Catalytic Cracker, kbpd 22.2 25.0
30.0 - - 40
mentation targets for Plan, Low, and Stretch are shown in –Further improvements to LP structure and accuracy - 30
Polymer Grade C3=,kl/h 10.0 11.0
20.0 - Phase 1
the final results curve, Figure 3. • General Technical Services and other support - 20 Fuels Coker, kbpd 7.1 8.1
10.0 - Phase 2 Phase 3
To successfully implement the aggressive target of KBC on-site presence was reduced to one consultant per - 10 Liquid yield, Iv% Base +2.5
0.0 - - 0
68¢/bbl, it was important to quickly agree the implementation refinery; however, there was a larger proportion of external

Aug-98 -

Oct-98 -

Dec-98 -

Feb-99 -

Apr-99 -

Jun-99 -

Aug-99 -

Oct-99 -

Dec-00 -

Feb-00 -

Apr-00 -

Jun-00 -

Aug-00 -

Oct-00 -

Dec-00 -

Feb-01 -

Apr-01 -
Steam/Air decoke, days 6 3

methodology and some organizational issues. Typically the KBC assistance, particularly in the area of LP improvement. Needle Coker, kbpd Base Base

implementation procedure depicted in Figure 1 was followed. The Phase 3 focus on sustainment of KPI’s at target Needle coke recovery, wt% Base +10.0

clearly closed a known ‘Opportunity Gap’ that existed in the Benefits on current prices are about 60% of those quoted Mid Dist Unifiner, kbpd 17.0 22.0

above on the PIP study basis due to a deterioration in refinery Gas Oil HDS, kbpd 16.0 17.0
Figure 1 latter part of Phase 2. With closer alignment of LP plans
Hydrogen Plant, knm3/h H2 8.9 10.0
Typical Implementation Procedure with PIP objectives and a continuous focus on sustainment, margin since the PIP price set. Koa has maintained a high
H2 to fuel gas, knm3/h 2.0 1.0
the gaps were virtually closed. One of the most obvious level of sustainment of over 85% through Phase 3 and has
LCO Hydrotreating for diesel, kbpd 0.0 0 — 1.0
Collect & Analyze examples is FCC charge at Marifu, Figure 2. therefore recognized bottom-line benefits of about 60¢/bbl.
Base Data This has largely resulted in heavier and cheaper crude slate.
Figure 2 The PIP identified a clear direction and strategy for the Table 3
Plan/Conduct KPI: FCC Charge vs PIP Demonstrated Koa refineries. All opportunities implemented fell into the Osaka Plant Capacity And
Test Run
26.0
three basic Strategies or Profit Drivers as listed below. KPI Improvements During PIP
25.0
Actual 1. Maximize Conversion Capacity
Analyze Results PIP & LP Process Unit PIP Base PIP Current
Prepare for external
24.0
(60% of Total Benefits)
changes S/D
23.0
–To make required products with heavier Crude Distillation, kbpd 100.0 100.0
External Factors and cheaper crude mix Middle East, Iv% 67.5 80.0
Establish KPIs
kbpd

(e.g. Supply, Mktng) 22.0

2. Maximize Recovery of High Value Products HSR 95% °C 132 158
21.0 Benzene precursor recovery, Iv% 20% 50%
Implement Opportunity Gap
(25% of Total Benefits)
Makes change 20.0 C7 recovery to reformer, Iv% 70% 90%
and Track
permanent
===> Priority on filling #3VGO
- Feed short
–To maximize product value from the
19.0 CDU Overflash, Iv% 6 2
- Limited export mogas planned feedstocks
18.0 Vacuum Distillation, kbpd 39.4 42.0
3. Improve Operating Strategies (15% of Total Benefits)
Jul-98 -

Sep-98 -

Nov-98 -

Jan-99 -

Mar-99 -

May-99 -

Jul-99 -

Sep-99 -

Nov-99 -

Jan-00 -

Mar-00 -

May-00 -

Jul-00 -

Sep-00 -

Nov-00 -

Jan-01 -

Mar-01 -
Post-audited benefits based on opportunity KPI’s (Key HVD 95%, °C 590 600
Performance Indicators) and PIP economics are added to the –To maximize profitability by optimizing stream
Catalytic Reformer, kbpd 11.2 14.0
implementation status summary on a monthly basis. It is routings, catalyst, fuel etc.
H2 make, nm3/kl 160 180
also important to plan to realize and therefore sustain the Implementation in Phase 3 actually covers identification, Examples of sustained implementations are summarized Cat Feed Hydrotreater, kbpd 15.0 19.0
benefit. Where possible, this is achieved through an LP analysis, and implementation in that the original Phase 1 in Table 2 and 3 for each refinery. Fluid Catalytic Cracker, kbpd 22.0 24.5 - 25.5
update as well as regular KPI monitoring. The Phase 2 list was almost completed. At both sites, several PIP minor Air Blower Capacity, knm3/h 73.4 90.0
implementation progress and status was regularly presented investment projects were also included in the profit plans Overall Conclusions FCC Gasoline Endpoint, °C 160 180
to Koa senior management in monthly meetings. since planned refinery shutdowns enabled their implementa- Alkylation (Summer), kbpd 3.0 3.4
tion. About 50% of the Phase 3 benefits resulted from the The PIP has been a challenging, satisfying, and rewarding
Phase 2 Results PIP minor investment projects. experience for both the Koa organization and the KBC con-
Additionally, the Backcasting process enabled more data sultants. In addition to the financial benefits of the PIP, the
Despite the aggressive targets, Koa responded very well program has helped Koa to develop a culture that is more
analysis and opportunity work up. This included areas
to the PIP challenge and exceeded the plan. From the final profit and implementation oriented.
where it was previously difficult to gather the raw data.
results curve (Figure 3), a PIP basis benefit of 76¢/bbl versus As a result of the PIP and other programs, the ranking of
Opportunities implemented out of the Backcasting process
a Plan of 68¢/bbl was achieved. Koa refineries in the Japanese circuit has improved. The
at both sites include improved fuel oil blending strategy, For more information, please contact your Regional Manager:
reduced product give-away and improved refinery stream ongoing commitment to the PIP program is an important part
of Koa’s strategy to meet their target of ‘World Class.’ • Brad Clark, Vice President Americas +1 281 293 8200
routings. Additionally, the Backcasts identified areas of LP or bclark@kbcat.com
weakness, which were then updated so that further benefits • Stuart Singleton, Vice President Europe, Middle East & Africa
could be accrued due to improved LP accuracy and Petrofine is a registered trademark of KBC Advanced
+44 1932 242424 or ssingleton@kbcat.com
improved plans. Technologies, plc, all rights reserved.
• Graham Hill, Vice President Asia-Pacific +65 735 5488
or ghill@kbcat.com

2 3
June '01Issue.b.qxd 8/2/01 3:56 PM Page 2

Profit Improvement Success (Continued from pg. 1)

Phase 2 : Implementation of Opportunities Phase 3 : Sustainment, Implementation and Overall Benefits (to end Y2000) Table 2
‘World Class’Methods To Ensure Marifu Plant Capacity And
The Phase 2 Implementation of the project began in April The PIP basis benefit at the close of Phase 3 is 110¢/bbl
Ongoing Improvement KPI Improvements During PIP
1999 with an initial contract for 12 months. KBC provided as shown in Figure 3.
two people full time on each site and when required could The following Phase 3 objectives were successfully Figure 3 Process Unit PIP Base PIP Current
call on specialist support from KBC worldwide. achieved in a one year period that commenced in April 2000: Implemented Koa PIP Benefits Crude Distillation, kbpd 117.0 127.0
Koa and KBC worked together to develop the • Sustainment of Phase 2 achieved benefits Up To End Of Phase 3
Vacuum Distillation, kbpd 35.8 38.4
Implementation Plan based on the Phase 1 Opportunity List. • Implementation of new opportunities to target Overall PIP Opportunities (M$/y) VR Cutpoint, TBP °C 572 580
From this plan, the Phase 2 financial targets and timings value of 25¢/bbl Osaka + Marifu
Catalytic Reformer, kbpd 22.0 23.0
80.0 - - 110
were determined. Each non-investment opportunity was • Introduce methods that will close some gaps Plan (Phase2 & Phase3) - 100 Max HSR cutpoint, TBP °C Base +5
70.0 -
prioritized depending firstly on the agreed potential benefit between Koa and ‘World Class’ Stretch Target - 90
HSR to mogas, kbpd 0.62 0.00
60.0 - Low Target - 80
and secondly the confidence that the opportunity could be –Backcasting of actual performance versus plan Implemented - 70
Mild Hydrocracker, kbpd 23.0 30.0
50.0 -
successfully implemented. Owners were assigned to each –Improved Process Monitoring using more frequent lab

c/bbl
M$/y
- 60 Conversion, Iv% 25.0 40.0
40.0 -
opportunity from both Koa and KBC. The agreed imple- data combined with simulation applications - 50 Fluid Catalytic Cracker, kbpd 22.2 25.0
30.0 - - 40
mentation targets for Plan, Low, and Stretch are shown in –Further improvements to LP structure and accuracy - 30
Polymer Grade C3=,kl/h 10.0 11.0
20.0 - Phase 1
the final results curve, Figure 3. • General Technical Services and other support - 20 Fuels Coker, kbpd 7.1 8.1
10.0 - Phase 2 Phase 3
To successfully implement the aggressive target of KBC on-site presence was reduced to one consultant per - 10 Liquid yield, Iv% Base +2.5
0.0 - - 0
68¢/bbl, it was important to quickly agree the implementation refinery; however, there was a larger proportion of external

Aug-98 -

Oct-98 -

Dec-98 -

Feb-99 -

Apr-99 -

Jun-99 -

Aug-99 -

Oct-99 -

Dec-00 -

Feb-00 -

Apr-00 -

Jun-00 -

Aug-00 -

Oct-00 -

Dec-00 -

Feb-01 -

Apr-01 -
Steam/Air decoke, days 6 3

methodology and some organizational issues. Typically the KBC assistance, particularly in the area of LP improvement. Needle Coker, kbpd Base Base

implementation procedure depicted in Figure 1 was followed. The Phase 3 focus on sustainment of KPI’s at target Needle coke recovery, wt% Base +10.0

clearly closed a known ‘Opportunity Gap’ that existed in the Benefits on current prices are about 60% of those quoted Mid Dist Unifiner, kbpd 17.0 22.0

above on the PIP study basis due to a deterioration in refinery Gas Oil HDS, kbpd 16.0 17.0
Figure 1 latter part of Phase 2. With closer alignment of LP plans
Hydrogen Plant, knm3/h H2 8.9 10.0
Typical Implementation Procedure with PIP objectives and a continuous focus on sustainment, margin since the PIP price set. Koa has maintained a high
H2 to fuel gas, knm3/h 2.0 1.0
the gaps were virtually closed. One of the most obvious level of sustainment of over 85% through Phase 3 and has
LCO Hydrotreating for diesel, kbpd 0.0 0 — 1.0
Collect & Analyze examples is FCC charge at Marifu, Figure 2. therefore recognized bottom-line benefits of about 60¢/bbl.
Base Data This has largely resulted in heavier and cheaper crude slate.
Figure 2 The PIP identified a clear direction and strategy for the Table 3
Plan/Conduct KPI: FCC Charge vs PIP Demonstrated Koa refineries. All opportunities implemented fell into the Osaka Plant Capacity And
Test Run
26.0
three basic Strategies or Profit Drivers as listed below. KPI Improvements During PIP
25.0
Actual 1. Maximize Conversion Capacity
Analyze Results PIP & LP Process Unit PIP Base PIP Current
Prepare for external
24.0
(60% of Total Benefits)
changes S/D
23.0
–To make required products with heavier Crude Distillation, kbpd 100.0 100.0
External Factors and cheaper crude mix Middle East, Iv% 67.5 80.0
Establish KPIs
kbpd

(e.g. Supply, Mktng) 22.0

2. Maximize Recovery of High Value Products HSR 95% °C 132 158
21.0 Benzene precursor recovery, Iv% 20% 50%
Implement Opportunity Gap
(25% of Total Benefits)
Makes change 20.0 C7 recovery to reformer, Iv% 70% 90%
and Track
permanent
===> Priority on filling #3VGO
- Feed short
–To maximize product value from the
19.0 CDU Overflash, Iv% 6 2
- Limited export mogas planned feedstocks
18.0 Vacuum Distillation, kbpd 39.4 42.0
3. Improve Operating Strategies (15% of Total Benefits)
Jul-98 -

Sep-98 -

Nov-98 -

Jan-99 -

Mar-99 -

May-99 -

Jul-99 -

Sep-99 -

Nov-99 -

Jan-00 -

Mar-00 -

May-00 -

Jul-00 -

Sep-00 -

Nov-00 -

Jan-01 -

Mar-01 -
Post-audited benefits based on opportunity KPI’s (Key HVD 95%, °C 590 600
Performance Indicators) and PIP economics are added to the –To maximize profitability by optimizing stream
Catalytic Reformer, kbpd 11.2 14.0
implementation status summary on a monthly basis. It is routings, catalyst, fuel etc.
H2 make, nm3/kl 160 180
also important to plan to realize and therefore sustain the Implementation in Phase 3 actually covers identification, Examples of sustained implementations are summarized Cat Feed Hydrotreater, kbpd 15.0 19.0
benefit. Where possible, this is achieved through an LP analysis, and implementation in that the original Phase 1 in Table 2 and 3 for each refinery. Fluid Catalytic Cracker, kbpd 22.0 24.5 - 25.5
update as well as regular KPI monitoring. The Phase 2 list was almost completed. At both sites, several PIP minor Air Blower Capacity, knm3/h 73.4 90.0
implementation progress and status was regularly presented investment projects were also included in the profit plans Overall Conclusions FCC Gasoline Endpoint, °C 160 180
to Koa senior management in monthly meetings. since planned refinery shutdowns enabled their implementa- Alkylation (Summer), kbpd 3.0 3.4
tion. About 50% of the Phase 3 benefits resulted from the The PIP has been a challenging, satisfying, and rewarding
Phase 2 Results PIP minor investment projects. experience for both the Koa organization and the KBC con-
Additionally, the Backcasting process enabled more data sultants. In addition to the financial benefits of the PIP, the
Despite the aggressive targets, Koa responded very well program has helped Koa to develop a culture that is more
analysis and opportunity work up. This included areas
to the PIP challenge and exceeded the plan. From the final profit and implementation oriented.
where it was previously difficult to gather the raw data.
results curve (Figure 3), a PIP basis benefit of 76¢/bbl versus As a result of the PIP and other programs, the ranking of
Opportunities implemented out of the Backcasting process
a Plan of 68¢/bbl was achieved. Koa refineries in the Japanese circuit has improved. The
at both sites include improved fuel oil blending strategy, For more information, please contact your Regional Manager:
reduced product give-away and improved refinery stream ongoing commitment to the PIP program is an important part
of Koa’s strategy to meet their target of ‘World Class.’ • Brad Clark, Vice President Americas +1 281 293 8200
routings. Additionally, the Backcasts identified areas of LP or bclark@kbcat.com
weakness, which were then updated so that further benefits • Stuart Singleton, Vice President Europe, Middle East & Africa
could be accrued due to improved LP accuracy and Petrofine is a registered trademark of KBC Advanced
+44 1932 242424 or ssingleton@kbcat.com
improved plans. Technologies, plc, all rights reserved.
• Graham Hill, Vice President Asia-Pacific +65 735 5488
or ghill@kbcat.com

2 3
June '01Issue.b.qxd 8/2/01 3:56 PM Page 1

Third Quarter 2001

Knowledge Makes The Difference
Refining Process Service (RPS) is the leader in providing both public
and in-house technical seminars to the petroleum refining industry
worldwide. To address the training needs of our clients, KBC has
developed new training courses to supplement KBC’s existing
EDGE
topics on reliability, availability, maintenance, risk management,
modeling and petrochemical process technologies.
In conjunction with RPS, KBC can offer a complete training

offerings, instructed in public and private sessions.
The current combined KBC/RPS courses offered in public seminar
series cover all areas of refining technology including the major
refining process technologies, planning and economics, and energy
optimization. Future additions to the program will likely contain
Refiner’s
program, customized to meet a client’s unique needs. The KBC
developed training modules not only contain the most current
technological advances, but also will contain KBC’s own unique
experience. The KBC perspective will focus on improving
profitability based on over 23 years of delivering profitability
to their clients worldwide.

For more information, please visit www.petroleumrefining.com/programs. Helping Clients Improve Profits and Achieve Pacesetter Performance
Upcoming Courses Offered Date Instructor

Economics of Petroleum Refining
How to Improve Refining Profit Margins
Improving Refinery Energy Efficiency
Delayed Coking Process Technology
Delayed Coking Unit Operations – Forum
Future Courses to be Offered
Energy and Lube Processing
September 11-12, 2001 Larry Clevenger, Principal Consultant
Gery Hickman, Principal Consultant
September 13-14, 2001 Larry Clevenger, Principal Consultant
Gery Hickman, Principal Consultant
October 24-26, 2001 Zoran Milosevic, Senior Staff Consultant
November 5-7, 2001 Jerry DeHey, Vice President
November 8-9, 2001 Jerry DeHey, Vice President
Spring 2002
At KBC, we focus on improving
our clients’ competitive
position through innovative
business solutions, allowing
clients to achieve superior
returns on their invested
capital and achieve pacesetter
status within their industries.
Our services include:
Yield Optimization
Energy Improvement
Clean Fuels Impact Reviews
Reliability, Availability &
Maintenance
Planning & Scheduling
PROFIT IMPROVEMENT SUCCESS AT JAPANESE REFINERIES
Yuji Takao - Koa Oil Company Ltd
Minoru Horike - Koa Oil Company Ltd
Paul Kennedy - KBC Process Technology Ltd
Sanjay Bhargava - KBC Process Technology Ltd
Koa Oil Company, Ltd. owns and operates
two refineries in Japan with a total crude capacity
of 252,000 barrels per day. Marifu is the original
Koa refinery; it is a high-conversion sour crude
refinery with the additional capability of needle
coke production from sweet crude. Osaka is
the newest refinery in Japan, a medium conver-
define a representative Base Case performance
for later evaluation of PIP identified opportunities.
Koa Base Case performance was defined in a
Petrofine refinery model calibrated to a typical
month of operating data.
Opportunity ideas came from both Koa and
KBC and the list was constantly improved and
refined as the PIP progressed. For each opportunity,
the recommendation was ‘implemented’ in the
computer model as a ‘step out’ from the base
case. Since the model is an accurate full inte-
gration of the process units and finished product
blending, an accurate economic summary for
each opportunity was given. Importantly, specialists

EDGE PRSRT STD Unit Specific & Refinery-wide

sion refinery with power generation from the
vacuum residue.
evaluated opportunities from a technical stand-
point. Consequently, the extent of improvement
Refiner’s U.S. POSTAGE
PAID
PERMIT NO. 600
Process Simulation
Change Leadership
In mid 1998, Koa began working with KBC
on a Profit Improvement Program (PIP) with a
could be accurately measured so that any refinery
concerns could be fully addressed.
KBC Advanced Technologies plc HOUSTON, TEXAS
target to improve the refinery profitability by Table 1 shows that the Phase 1 identified PIP
Implementation Services over 50¢/bbl and to create a profit oriented culture
KBC House benefits were largely achievable with no investment.
Technical Services for more effective continuous improvement and
42-50 Hersham Road
Walton on Thames Outsourcing sustained profitability. In parallel with the PIP, Table 1
Surrey KT12 1RZ Koa also implemented several other initiatives
Upstream & Downstream Most Benefits Require No Investment
UK to promote improved profitability and transfor-
Risk Management
Telephone: +44 1932 242424
mational change. For instance, an aggressive Phase 1 Identified Marifu Osaka Total Ratio
Facsimile: +44 1932 224214 Integration Services Koa Advanced Process Control implementation
M$/y M$/y M$/y M$/y
program supported the PIP by allowing continuous
KBC Advanced Technologies, Inc.
Benchmarking Non Investment 26.2 18.7 44.9 88%
maximization of PIP benefits. In partnership
580 Westlake Park Boulevard Capital Project Review/ with KBC, a RAM (Reliability, Availability, Minor Investment 4.6 1.6 6.2 12%
Profit Suite 1150 Due Diligence Maintenance) program and an LP Upgrade Major Investment 0.0 0.0 0.0 0%
Improvement Houston, TX 77079 project were also successfully completed.
Design Services Total M$/y 30.8 20.3 51.1 100%
at Japanese Telephone: +1 281 293 8200 ¢/bbl 75.9 58.5 67.9
Facsimile: +1 281 293 8290 Unit Specific Studies Phase 1 : Base Case Development &
Refineries
Strategic Planning Opportunity Evaluation

Business Risk The Base Case began with round table meet-
Management Consulting ings on site over a two-week period to cover all
aspects of refinery operation from process units
to finished product blending. The combined
e-mail: kbc@kbcat.com experience and specialized skills of the Koa/KBC
Web Site: www.kbcat.com team were used to analyze and challenge the current
refinery operations and practices, as well as to
Continued on pg. 2