Slide 1 SSE-03 Integrated Yield Accounting and Off-sites Solution John Hernandez Invensys Operations Management October 15-16, 2012 © 2012 Invensys. All Rights Reserved. The names, logos, and taglines identifying the products and services of Invensys are proprietary marks of Invensys or its subsidiaries. All third party trademarks and service marks are the proprietary marks of their respective owners. Agenda • Yield Accounting Domain • Purpose and Benefits • Leveraging Integration • Partnership • Highlights and case studies • Conclusion Slide 3 Where Yield/Production Accounting Lives Target Area for Production Accounting Synchronization Business Performance Management Plan vs. Actual Goals Results Production Performance Management Monthly Production Accounting Backcasting Reconciled Performance VALUE Schedule Sched vs. Actual Hourly Balance Operations Monitoring Operations days ago Reviews, Reports hours ago Limits & Boundaries Operations Management Process Control & Optimization weeks ago Goals and Targets Performance Management Daily Accounting Logistics Quarterly/Monthly Plan Plan vs. Actual Reconciled Performance Slide 4 Business/Yearly Plan Business Results now Execution Integration hours ahead days ahead months ahead Decisions Why Yield Accounting? • Objectives – Provide an improved material, yield and unit cost management system that complies with best practices of data reconciliation and production accounting methods • Issues – Leading refining and petrochemical companies in the world require constantly tighter control over unaccounted material losses – Data gathering and ensuring the quality of data is a time consuming process leaving very little time for analysis – Multiple versions of data exist across organizations without a consistent set of figures – Comingled ownership of processed materials – Yields & Loss reporting for environmental (HSE) impact as well JV financial transaction Slide 5 Key Questions • How much time do we spend on closing the balance each day and is it manual-entry intensive? • Is our yield accounting solution integrated to our tank inventory and movement monitoring system(s)? • How quickly can we produce month-to-date and month-end balance reports? • Why doesn’t our yield accounting package allow for quick analysis and drill-down to find the problem? • Does our package allow a view into the historical data without having to go to another application? • Is it easy for us to account for different ownership of materials across the process? (Comingled ownership) Slide 6 Value Proposition for Integrated Yield Accounting • Scope – Unit by Unit Hourly/Shift Mass and Utility Balance Reconciliation – Refinery wide Daily Mass and Utility Balance Reconciliation – Refinery wide Monthly Mass and Utility Balance Reconciliation & Accounting • Benefits – Loss Control and reduction: • Current unaccounted losses at a typical Refinery = 1.5% • As a result of Data reconciliation, assume that 0.5% is properly accounted • Price Differential between loss and product mix = $20 per barrel – Potential Benefits = 250,000 x 330 x 0.005 x 20 = $8.5 MM per year Potential Benefits at a Typical Refinery - $8.5 MM per year Slide 7 Yield Accounting- Benefits - Profitability - Early detection of Meter gross error - More consistent and accurate flow data in PI, for use in monitoring spreadsheets, LP yields etc. - Reliability - Generates values for unmeasured flows or meters that are out of service or unreliable - Lets the organization know which meters are reliable - Productivity - Ensures that instrument staff only work on meters that are broken - Eliminates the need for PE to do steady state mass balances Slide 8 Yield Accounting Integration with Off-sites Process Unit DVR Offsites Inventory and Movement Management Slide 9 Yield Accounting Integration with Off-sites Integration Slide 10 Yield Accounting Integration with Off-sites Plant wide Reconciliation Slide 11 Invensys’ Partnership for Yield Accounting Key Criteria for Partnership – Technical capability – Usability and Flexibility – Seamless Integration to Tank and Inventory data – Field proven MESEnter ErrorSolver Slide 12 ErrorSolver Flowsheet Environment Slide 13 Quick Visibility to Key Information Hover for Process and Stream Details Slide 14 MESEnter’s ErrorSolver Highlights • Easy Graphical User Interface and Navigation • Integration capability with PI, Infoplus, and others based on industry standard protocols • Established in several large customer sites for several years • Has replaced Sigmafine and Production Balance in some sites • Competitively priced • Low/No maintenance Slide 15 Upgrade Case Study Yeochun NCC Mr. D. K. Kim, Deputy General Manager of Yeochun NCC says: ErrorSolver offered us functionality that was simply not present in our original software, Sigmafine -- including the ability to create logical summary models and additional, user-definable constraints. ErrorSolver composition tracking functionality also provides valuable feedstock movement detection and quality tracking. The switch to ErrorSolver improved our work efficiency, data validation, and execution speed, so that overall, our material balance work time was shortened by half. On a normal day, we spend less than an hour balancing the plant, and we can trust the values we get back from ErrorSolver. Slide 16 Upgrade Case Study LG Chemicals Mr. S. K. Jang of LG Chemicals, Korea, says: We had tried other material balance solution(Honeywell PB) and were frustrated by how poorly they worked and how much effort they required to create and maintain. We were surprised and pleased to find out that there was another way. ErrorSolver saves us hours each day and gives us results we could not have obtained using other solutions. Slide 17 Upgrade Case Study Honam Petrochemical DR Implementation History -.2003 Q3 : DR (Data Reconciliation) started ▶ ‘Sigmafine’(OSIsoft) purchased -.2004 Q1 : DR system initiated ▶ ERP & PIS Go-Live ~ -.2005 Q3 (June to Aug) : DR system upgrade initiated ▶ Replaced with ErrorSolver (see next slide for advantages gained) -.2005 Q4 : New DR system (ErrorSolver) initiated ▶Standardized as daily ERP production balance tool Slide 18 Upgrade Case Study Advantages Realized Slide 19 Honam Petrochemical ErrorSolver Installations List of ErrorSolver customer implementations and upgrades from other products: SK Energy Refinery (former Yukong, Ulsan plant) – Korea, 1998 AspenTech Advisor to ErrorSolver SKC (former SK OXY Chemicals, Petrochemical, SM plant) – Korea, 2000 KOGAS (LNG Plant) – Korea, 2000 Honam Petrochemical(Yeosu plant, Ethylene plant)– Korea, 2003 Sigmafine to ErrorSolver Samsung Total Petrochemical (Ethylene plant & Aromatic plant) – Korea, 2004 Qingdao Petrochemical (Refinery) – China, 2005 Yeochun NCC Petrochemical(Ethylene plant) - Korea, 2005 SK Energy Refinery(Incheon plant) - Korea, 2005 Sigmafine to ErrorSolver Sigmafine to ErrorSolver LG Chemicals (Daesan plant, Ethylene plant) - Korea, 2005 Honam Petrochemical(Daesan plant, Ethylene plant) – Korea, 2006 LG Petrochemical (Yeosu plant, Ethylene plant) – Korea, 2006 Honeywell PB to ErrorSolver KP Petrochemical (PX & TPA plant) – Korea, 2007 Samnam Petrochemical (TPA plant) – Korea, 2009 Sigmafine to ErrorSolver Daehan Petrochemical (Ethylene plant) – Korea, 2010 Titan Petrochemcial (Ethylene plant) - Malaysia, 2012 There are no longer any other active product users left in Korea Slide 20 Off-sites TIS Tank Inventory System • Uniform approach to managing gauging systems (Varec, Saab, L&J, Enraf, …) • Strapping table database • ASTM/API table volume & density corrections • Extended calculations (e.g. DIN51757) • Flow-rate calculations from level changes • Level & tank operational states & alarms • Standard tank detail, pool & midnight inventory reports TIS provides the basic data of the actual state for all other Offsites Modules TIS bridges the tank gauging with the MES/ERP layer Slide 21 Off-sites OMM Order Movement Management System • Management, real-time monitoring & reporting for all orders/movements. • Handles all standard movement types (tank, unit, & transport source/ destinations), blending operations, and other complex orders • Can handle co-mingling (multiple ownership) • Validates input data and overall movement data based on all available meters & gauges • Optional Product composition tracking (PCT) and quality integration (TQI) modules • OMM interfaces with scheduling and stock/yield accounting systems OMM bridges the gap between movements scheduling, operations and oil accounting OMM monitors active movements, manages scheduled activities and archives past actions Slide 22 Off-sites Differentiating Value •TIS/OMM/MAS streamlines inventory & movement management •$MMs potential from better inventory accounting, stock loss programs, plan vs. actual analysis, and tank farm asset utilization •Provides accurate & reliable data to ErrorSolver Slide 23 Shell Netherlands Arena Project (Off-sites) “Arena has provided us with a more stable system with reliable data, both instantaneous and historical. This information we can use entirely as we need and want. As a result we not only have available to us all up-to-date information really needed by us, but also information that was not available to us in the pre-Arena times. Although it did not change our work, it allows us to work more efficiently as a result of the improved tools and information available to us.” Ria Keizer Crude Oil Accountant Slide 24 Off-sites Installations 100 Sites Operational or In Progress: TIS OMM DBS BOSS MAS AMADAS BTM Slide 25 © Invensys 102 61 87 84 32 5 7 Why Invensys’ Integrated Yield Accounting Solution? Slide 26 • The Off-sites integration greatly reduces manual entry or manual transference of data from one system to another • Graphical process modeling environment – better navigation • Logical modeling capability – interactive reporting mechanisms • Automatic missing movement detection from tank information • Composition tracking function • User defined balance constraints • Reconciliation for multiple periods individually Differentiators • Direct integration to tank inventory and movements packages • Logical models as well as process Potential Benefits at a $8.5 MM per year or more balance models • Versatile equation builder: calculate inferred transactions and support logical models • Tracking Simulation function calculates composition and component quality for critical areas of the model • Automatic detection of missing movements from tank inventory information • Proven track record with many installations for both the yield accounting and the Off-sites components. Slide 27 Thank You Slide 28