freshhh2014 MOiL Tycoon

Game Rules
About the game

The game is a turn-based strategic game, aiming to imitate reality as much as possible. However it still contains several simplifications to make the game easier to understand and more entertaining to play.

Game concept

You are the managers of a well-established oil company with a diversified upstream and downstream portfolio continuously seeking new upstream opportunities to replace the reserves and the production, as well as to improve the efficiency of your refineries. The Game Management decided your only task is managing refinery part of the Game in 2014 so your aim is to prove that you are the best managers by maximizing the cash generation of your companys by creating value added with downstream operations. You are not allowed to make decisions on Upstream part of the game, but you have access insight details on fields where production is operating on. You start the downstream game with 5500 million F$ (Freshhh Dollar) of cash at hand.

Timing
Contestants are going to play for 10 turns. 1 turn in the game means 24 (same as in the Test Rounds) hours in the real world, so in every 24 hours, there is going to be a turn change. (the next rounds results financial accounting and the effects of decision-making - only show when a turn change occurs)

Financing
You have a revolving credit of 5000 million F$ total at 10% interest rate. You can use this credit facility to finance up to 60% of your investments. If you exceed the 60% limit on any of your investments, the penalty interest will be 30%.

/NOTE! Every screenshots and figures on it in the Game Rules are only samples. Actual view is always on the Online Game only./

THE REFINERY

Game concept
A regional company sold its refinery construction. Your company has bought it, and it is your task to make it as profitable as possible. Gasoline and diesel product lines have already been built. The refinery will be operational from the start.

Units available from the start: Crude Distillation Unit (CDU) Light Naphtha Hydrotreater Heavy Naphtha Hydrotreater Light Naphtha Isomerisation Unit CCR Reformer Unit Gasoil Hydrotreater

The refinery will use crude bought from the market. The utilization rate can be set by adjusting the imported crude volume. Due to the limitations of technical processes, the annual refinery (CDU) utilization rate can not be less than 60%. As a simplification, this restriction does not apply for other refinery units. The minimum imported crude volume is always set automatically to match the minimum utilization rate. Some units 4

have a maximum capacity specified. For the other plants, where it is not specified, there is no maximum throughput limit. The company will be able to convert the products into money at market prices. During the game, you have to make several decisions to operate and expand your refinery in an optimal way. The goal is to achieve maximum amount of money at the end of the defined period. The aim of the programmers was to create a game as realistic as possible, but it still contains several simplifications to make the game easier to understand and more entertaining to play. You can find a one year prognosis about the changes in refinery product prices at the headquater in Product & prices panel. (see later) All prices are in $/t, except crude, which price is in $/bbl unit. Utility prices are not changing during the game (Hydrogen price does)..)

Playing the game Each turn you have to make different decisions to optimize the efficiency of your refinery. There will be operational decisions. You can: Alter the path of different refinery streams by splitters Choose catalyst for HDS/MHC Unit Along the way, you can construct new facilities to keep up the competitiveness of your company and to fulfill the environmental regulations and product qualities. Not all technologies are available from the start. You can see your opportunities in the following table:

from 2014 HDS-MHC HDS-MHC Revamp DCU HPP FCC Claus Unit BBU available not available not available available avaiable available not available

from 2016 available available not available available avaiable available not available

from 2018 available available available available avaiable available available

from 2020 available available available available avaiable available available

Plant availability for construction

Utilities
Fuel: the energy consumed in the process to heat up the materials to the required temperature. Some units produce fuel gas, but that is not sufficient for the refinery. Excess fuel is bought from the market as natural gas. Natural gas is also the feed of the Hydrogen Plant. The heating value is the same for the produced fuel gas from all refinery units and the natural gas: 50 GJ/t. If more fuel is produced in the refinery units, than consumed, the excess fuel gas is burnt on the refinery flares. Electricity: mainly intended to propel the pumps and move the feed and products, but used also for light and for supplying control systems.

Cooling water: used in cooling processes for condensation and temperature control.

Steam: used for technological processes, heating and stripping. Some units produce more steam, than the amount necessary for operation. This is indicated with a negative value in steam consumption. If a unit produces steam then the excess steam is redirected to other units for usage but it can not be sold on the market. If the amount of produced steam is not sufficient, the necessary amount is bought from the market. Hydrogen: Hydrogen is used in hydrotreater and isomerisation units. The price of the hydrogen varies in time. Hydrogen can be produced or bought from the market. In the first part of the game external hydrogen is purchased for 5000 F$/t, but starting from 2017 the hydrogen price increases dramatically to 20000 F$/t (due to the availability from a different supplier). In case of more hydrogen is produced in Reformer unit, than needed for refinery processes, the excess of hydrogen is burnt on the refinery flares. Catalyst: As a simplification, catalyst expenses are calculated as utility, except the HDS/MHC unit, in which it is your task to change the catalyst every two years. Catalyst price is specified for each unit. UTILITY (UOM) Fuel (F$/GJ) Electricity (F$/MWh) Cooling water (F$/1000 m ) Steam (F$/GJ)
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Price 12.4 106 112 10.4

Utility prices For all refinery units utilities are calculated proportional to the feed. Consumed hydrogen is not calculated in the feed, but it appears in the product. That is why hydrogen consuming units have an overall yield over 100%.

PROCESSES IN THE REFINERY

Crude Distillation Unit (CDU)

The first step in a refinery is the distillation of crude into different fractions. Lighter compounds are separated in the predistillation and main (atmospheric) distillation columns. Heavy compounds have to be distilled in a vacuum distillation column. The products of CDU are further processed in different refinery units. Capacity of the CDU is 10000 kt/year. We would like to lay emphasis on the fact that Fuelgas is used by the refinery for heating, and it does not show in the final product summary (the final balance may lack a few kt-s of product).

Crude properties API gravity ( ) 31.32

Sulphur content (%) 1.45 Watson factor 12

For the conversion from barrels to tons the following equation is used: Barrels of crude oil per metric ton =

Product Fuelgas LPG Light naphtha Medium naphtha Heavy naphtha Kerosene Light atmospheric gasoil Heavy atmospheric gasoil Light vacuum gasoil Heavy vacuum gasoil Slop wax Vacuum residue Losses

Yield (wt%) Product destination 0.02 1.16 2.92 6.52 7.30 7.60 14.53 7.30 7.81 26.04 3.00 15.30 0.50 Products of the Crude Distillation Unit Used for heating For sale Light Naphtha Hydrotreating Heavy Naphtha Hydrotreating Heavy Naphtha Hydrotreating For sale Gasoil Hydrotreating or for sale as Petchem and Heating Oil Gasoil Hydrotreating or for sale as Petchem and Heating Oil Gasoil Hydrotreating or for sale as Petchem and Heating Oil HDS/MHC, or for sale as Light Fuel Oil Delayed Coker, Bitumen Plant, or for sale as Heavy Fuel Oil Delayed Coker, Bitumen Plant, or for sale as Heavy Fuel Oil

OPEX
Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt)
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Consumption 650 7.36 3.3 -23

Utility consumption of the Crude Distillation Unit

Light Naphtha Hydrotreater (LN HDS)

The crudes sulphur content appears in its products in different quantities. Sulphur content has to be removed to fulfill environmental and quality regulations. Sulphur is removed by a catalytic process called hydrotreating or hydrodesulphurization.

Product Fuelgas LPG Light Naphtha H2S Losses

Yield (wt%)Product destination 0.80 3.00 96.13 0.07 0.20 Products of the Light Naphtha Hydrotreater Used for heating For sale Light Naphtha Isomerisation Unit, or for sale as Petchem Naphtha Burnt or to Claus Unit

OPEX
Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Catalyst (F$/kt) Hydrogen (wt% of feed)
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Consumption 500 6 12 250 0.2

Utility consumption of the Light Naphtha Hydrotreater

Heavy Naphtha Hydrotreater (HN HDS)

It is very similar to the LN HDS. Since heavy naphtha contains slightly more sulphur, desulphurization requires higher temperature and/or pressure and more hydrogen. Product Fuelgas Heavy Naphtha H2S Losses Yield (wt%) Product destination 0.40 99.55 0.15 0.20 Products of the Heavy Naphtha Hydrotreater Used for heating CCR Reformer, or for sale as Petchem Naphtha Burnt or to Claus Unit

OPEX
Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Catalyst (F$/kt) Hydrogen (wt% of feed)
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Consumption 300 6 8 200 0.3

Utility consumption of the Heavy Naphtha Hydrotreater

Light Naphtha Isomerisation Unit (LNI)

Desulphurized naphtha is not good enough for motor gasoline (mogas). This fuel cut contains mostly pentanes and hexanes. Research octane number (RON) of light naphtha is around 70. Isomerization of this constituent can improve its octane number, reaching a good MON without olefinic and aromatics content. Product Yield (wt%) Product destination Fuelgas Isomerate Residue Losses 2.9 83.00 15.00 0.10 Used for heating Gasoline Blending or Base Gasoline For sale as Petchem Naphtha

Products of the Light Naphtha Isomerisation Unit

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OPEX
Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Catalyst (F$/kt) Hydrogen (wt% of feed)
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Consumption 3000 40 25 500 1

Utility consumption of the Light Naphtha Isomerisation Unit

CCR Reformer
Catalytic reforming is a chemical process used to convert petroleum refinery naphthas, typically having low octane ratings, into high-octane liquid products called reformates which are components of highoctane motor gasoline. Basically, the process re-arranges or re-structures the hydrocarbon molecules in the naphtha feedstock into aromatic components as well as breaking some of the molecules into smaller molecules. The overall effect is that the product reformate contains hydrocarbons with more complex molecular shapes having higher octane values than the hydrocarbons in the naphtha feedstock. In so doing, the process separates hydrogen atoms from the hydrocarbon molecules and produces very significant amounts of byproduct hydrogen gas for use in a number of the other processes involved in a modern petroleum refinery.

Product Fuelgas LPG Reformate Hydrogen Losses

Yield (wt%) Product destination 4.30 4.40 88.00 3.10 0.20 Products of the CCR Reformer Used for heating For sale Gasoline Blending or Base Gasoline Used for hydrotreating processes and isomerisation

OPEX
Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Catalyst (F$/kt)
3

Consumption 3000 95 14 500

Utility consumption of the CCR Reformer

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Gasoil Hydrotreater
Sulphur content of diesel is also regulated very strictly. To produce marketable diesel fuel, a gasoil hydrotreater is necessary to remove sulphur content. Product Yield (wt%) Product destination Fuelgas LPG Naphtha Diesel H2S Losses 1.0 0.5 3.7 94.45 0.9 0.2 Products of the Gasoil Hydrotreater Used for heating For sale For sale as Petchem Naphtha For sale Burnt or to Claus Unit

OPEX
Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Catalyst (F$/kt) Hydrogen (wt% of feed)
3

Consumption 300 15 5 300 0.75

Utility consumption of the Gasoil Hydrotreater

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Hydrodesulphurization / Mild Hydrocracker Unit (HDS/MHC)

The aim of an HDS Unit is to pretreat the feed of the FCC Unit. It is similar to hydrotreating, but operates on higher pressure and temperature. With the proper selection on HDS/MHC catalyst moderate flexibility can be achieved in the refinerys product slate. Two catalyst packages are available to choose from: HDS catalyst: Removes significant amount of sulphur with low hydrocarbon conversion. HDS/MHC catalyst: Removes significant amount of sulphur and converts a larger amount of heavy components into more valuable light hydrocarbons, mainly gasoil.

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Building the HDS unit: each team must set capacities before building the HDS unit! After the capacities are set at the header of the panel by clicking on the appropriate one, HDS can be built, before that the game does not allow the plant to be constructed. HDS-MHC Unit is built along with the FCC Unit!!

Product Fuelgas LPG Naphtha HDS Gasoil HDS Raffinate H2S Losses

Yield in HDS Model (wt%) 0.5 0.4 1.5 12.3 84.0 1.7 0.6

Yield in HDS/MHC mode (wt%) 0.7 0.6 5.4 21.0 71.2 1.7 0.6

Product destination Used for heating For sale For sale as Petchem Naphtha For sale as Diesel To FCC Unit, or for sale as Light Fuel Oil Burnt or to Claus Unit

Products of the HDS/MHC Unit

OPEX & CAPEX

Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt) HDS Catalyst (MMF$/charge)* HDS-MHC Catalyst (MMF$/charge)* Hydrogen (wt% of feed)
3

Consumption 300 36 4,5 250 3.6 6 1.0 (1.2 in MHC mode)

Utility consumption of the HDS/MHC Unit

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*Both catalyst types lifetime is 2 years, after this period the catalyst has to be changed, otherwise the unit stops operating. Catalysts have to be ordered a year prior to the change! The construction cost of the newly built HDS/MHC unit involves a HDS catalyst, with which the unit can start its operation in the first 2 years. You do not have to wait 2 years if you would like to change the catalyst, you can do that each year but of course ordering has to be done one year prior to change too. Total Investment Cost: Before constructing the unit, you can choose among three maximum capacities. If necessary, the unit can be revamped to higher capacity later in the game. Until the revamp is complete, the unit operates at the original, lower capacity. Capacity (kt/year) 2000 2600 3300 Revamp from 2000 to 2600 Revamp from 2600 to 3300 Revamp from 2000 to 3300 CAPEX (MMF$) 200 230 270 60 80 140

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Construction time: Cost distribution:

2 years 1st year: 2nd year 60% 40%

Revamp of HDS/MHC unit takes one year, revamp cost is fully charged in the year of ordering.

Fluid Catalytic Cracking Unit (FCC)

Fluid catalytic cracking (FCC) is a conversion process used in refineries. It is widely used to convert the high molecular weight hydrocarbon fractions of crude oils to more valuable gasoline, olefinic gases and other products. The FCC process vaporizes and breaks the long-chain molecules of the high-boiling hydrocarbon liquids into much shorter molecules by contacting the feedstock, at high temperature and moderate pressure, with a fluidized powdered catalyst. In effect, refineries use fluid catalytic cracking to correct the imbalance between the market demand for gasoline and the excess of heavy, high boiling range products resulting from the distillation of crude oil. FCC Unit is built along with the HDS-MHC Unit!! Product Fuelgas Propylene LPG FCC Gasoline LCO HCO MCB Losses Yield (wt%) Product destination 3.8 4.5 16.4 50.3 12.7 3.0 4.5 4.8 Products of the FCC Unit Used for heating For sale For sale Gasoline Blending or Base Gasoline For sale as Petchem and Heating Oil For sale as Light Fuel Oil For sale as Heavy Fuel Oil

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OPEX & CAPEX

Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt) Catalyst (F$/kt)
3

Consumption 160 50 25 -250 200

Utility consumption of the FCC Unit Total Investment Cost: 380 MMF$ Construction time: Cost distribution: 2 years 1st year: 2nd year 60% 40%

Delayed Coker Unit (DCU)

Delayed coking is a thermal process in which the vacuum residue from crude distillation is converted into lighter components and coke. The feed is heated in a furnace then confined in a reaction zone or coke drum under proper operating conditions of temperature and pressure until the unvaporized portion of the furnace effluent is converted to vapor and coke. Vapor is fractionated into different products.

Product Fuelgas Propylene LPG Naphtha* DC Gasoil* Heavy Coker Gasoil (HCGO)* Coke Losses

Yield (wt%) Product destination 4.0 2.0 2.5 11.0 19.5 36.5 24.0 0.5 Products of the DCU Unit Used for heating For sale For sale Heavy Naphtha Hydrotreating Gasoil Hydrotreating HDS/MHC For sale

*The marked streams can not leave the refinery without further treatment, therefore the DC Unit is not operable without the HDS-MHC Unit.

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OPEX & CAPEX

Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt)
3

Consumption 1200 25 0.5 450

Utility consumption of the DCU Unit

Total Investment Cost: 550 MMF$ Construction time: Cost distribution: 4 years 1st year: 2nd year 3rd year 4th year 30% 30% 20% 20%

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Bitumen Blowing Unit (BBU)

Asphaltic bitumen, normally called "bitumen" is obtained by vacuum distillation or vacuum flashing of an atmospheric residue. This is straight run" bitumen. The physical properties of asphalts may further be modified by 'air blowing'. This is an oxidation process which involves the blowing of air through the asphalts, either on a batch or a continuous basis. Maximum capacity of the BBU Unit is 400 kt/year. Product Yield (wt%) Product destination Bitumen Losses 98.0 2.0 Products of the BBU Unit For sale

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OPEX & CAPEX

Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt)
3

Consumption 100 20 2 200

Utility consumption of the BBU Unit Total Investment Cost: 50 MMF$ Construction time: Cost distribution: 2 years 1st year: 2nd year 60% 40%

Hydrogen Production Plant (HPP)

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Hydrogen is required in refineries for hydrotreating processes, to remove sulfur, nitrogen and other impurities from hydrotreater feed. A limited quantity of hydrogen is produced in the catalytic reforming of naphthas, but generally the quantity is insufficient to meet the requirements of the refinery. Hydrogen is produced by the steam reforming of natural gas, which is bought from the market or consumed from the refinery fuel gas pool (simplification). The throughput of HPP is always determined by the demand of hydrotreaters. If maximum capacity is reached, excess hydrogen is automatically bought from the market.

Product Yield (wt%) Product destination Hydrogen Losses 23.8 76.2 Products of the HPP Unit Used for hydrotreating processes and isomerisation

OPEX & CAPEX

Utility (UOM) Fuel (GJ/kt)* Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt) Catalyst (F$/kt)
3

Consumption 6000 60 10 -1800 780

Utility consumption of the HPP Unit *Specific fuel consumption does not contain the feed natural gas of HPP.

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Total Investment Cost: Before constructing the unit, you can choose between different maximum capacities at the top right part of the panel. You can see your options in the table below. After your initial choice, there is no possibility to expand capacity, so choose carefully. Feed capacity (kt/year) CAPEX (MMF$) 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 36 63 86 108 129 149 168 187 205 225 240 260 275 290 305 325 340 355 370 385

Construction time: Cost distribution:

2 years 1st year: 2nd year 60% 40%

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Claus Unit

Most crude oil contains varying amounts of sulfur. Hydrotreating various distillates from these crudes generate hydrogen sulfide (H2S), which is converted to elemental sulfur in the Claus Unit to minimize atmospheric pollution. In the absence of sulfur recovery, the only option would be to burn this gas in refinery furnaces, releasing huge amounts of sulfur dioxide into the atmosphere. A new government law will come into force in 2017 imposing a serious penalty on H2S burning: 30000 F$/t. The throughput of the Claus Unit is always determined by the H2S production of the hydrotreaters. Product Yield (wt%) Product destination Sulphur Losses 84.8 15.2 Products of the Claus Unit For sale

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OPEX & CAPEX

Utility (UOM) Fuel (GJ/kt) Electricity (MWh/kt) Cooling water (m /t) Steam (GJ/kt) Catalyst (F$/kt)
3

Consumption 810 100 40 -3500 1200

Utility consumption of the Claus Unit Total Investment Cost: Before constructing the unit, you can choose between different maximum capacities at the top right part of the panel. You can see your options in the table below. After your initial choice, there is no possibility to expand capacity, so choose carefully. Feed capacity (kt/year) CAPEX (MMF$) 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 Construction time: Cost distribution: 2 years 1st year: 2nd year 60% 40% 51 69 82 92 102 110 117 124 130 136 142 147 152 157 162 166 170 175 180 185

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Gasoline Blending
Motor gasoline has to be blended from different streams to fulfill the environmental and quality regulations. It is your task to blend marketable gasoline by setting up the splitters correctly. Excess amount of blending components will be sold as Base Gasoline for a lower price. If the blended gasoline does not meet the requirements, it will also be sold as Base Gasoline. Gasoline Blending is not possible until all the components are available.

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SPG (kg/dm3) RON MON RVP(kPa) Olefin (%) Aromatics (%) FCC Gasoline Reformate Isomerate 0.75 0.83 0.68 93.5 103 90 82.5 92 85 56 30 80 27 0 1 26 81 0

Gasoline blending components and their properties

Property SPG (kg/dm3) RON MON RVP (kPa) Olefin (%) Aromatics (%)

Minimum spec. Maximum spec. 0.73 95 85 45 60 18 35 0.77

Requirements for motor gasoline The properties of blended gasolines are calculated from the weighted average of the blending component properties. The calculation is volume based (in V/V%). Refinery splitters related to Gasoline blending can be adjusted with 0.1% units with the help of little +/- signs next to the splitter for finetuning the gasoline recipes to satisfy the strict specifications. Example for calculation: 70%(V/V) FCC naphtha + 15%(V/V) Reformate + 15%(V/V) Isomerate RON = 0.7 * 93.5 + 0.15 * 103 + 0.15 * 90 = 94.4

Crude Storage
In order to avoid losses of your company caused by fluctuation of crude oil price you can invest into construction of storage tanks. Although inventory management is a day by day process, in our game let us assume that you can operate a year by year crude inventory that has been consolidated in time and space. This way you can store only crude oil in your tanks. Without investments into extra tanks you can import a maximum of 72.37 MMbbl crude oil to feed your refinery. If you would like to increase this value, then you should invest into storage. Before constructing your tank farm, you can choose different capacities at the top right part of the panel in 10 MMbbl increments. For simplification there is not any OPEX that is calculated for your accumulated inventory. In the next year your refinery will try to utilize your existing inventory, and after that the pre-ordered crude will be processed in the distillation unit, or your tanks will be loaded in case of reaching the capacity limit of your CDU. 26

OPEX & CAPEX

Total Investment Cost: 50 MMF$ / every additional 10 MMbbl capacity Construction time: Cost distribution: 1 year 1st year: 100%

After your investing decision, there is no possibility to expand the capacity in the current year, so choose carefully. Of course, you can expand your capacity in the following years but destroying is not allowed. After investments into storage the maximum available crude that you can order will increase with the storage capacity.

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Financial data
Financial data panel indicates the main financial results relating to the refinery.

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HEADQUARTER

Financial data
Financial data panel at the HQ indicates the main financial results relating to the US & DS parts of the company.

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Products & Prices

Products & Prices panel indicates production and prices on market in the last year and also shows the expected amounts of products annually.

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Import Crude
In this panel your team can define the amount of crude import annually. Using credit is also your teams decision.

NOTE: Importing crude to the min. capacity of the refinery is an automatic decision in the game. You can import crude more times in a round. You can check the amount of the crude imported at refinery on the Product & Capacity panel.

Technical comment: You can set up the amounts with dragging and sliding the tiny arrow above the bar.

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Repaying credit
In this panel your team can repay from the existing amounts of credit. Credit repayment can occur any time when the team wishes but interest of the credit is subtracted immediately in the same round the credit is requested.

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Final Scoring

40 teams who scored best in the game are going to get to the Strategy Simulation round. We will also take into consideration and evaluate the effects of your decisions made in the final turn (Turn #10). We rank the teams according to how much cash they have on their downstream account and the remaining unpaid credit is substracted from the final result.

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