What are Opportunity crude oils?

 Grades of crude that have characteristics that make them more challenging to process
 Quite dependent on capability of a refinery in terms its design basis
 By definition, such grades can not access all the refineries in the Globe : so, a smaller customer
base
 For a refiner equipped to handle, these grades may present an ability to lower cost of
acquisition and hence scope to add more value

How could one categorise opportunity crude oil?

Grades that are acidic say, Total Acid Number >0.5

Grades that are high Pour Point say, >6 Deg C

Grades that are extra heavy say, API < 15

and very viscous say, Kinematic Viscosity >350 cst @ 40 Deg C

Secondary units feed quality e.g. VGO Nitrogen, VGO metal contents for refineries with FCC

Challenges in processing High Acid Crudes :

Processing Issues:  Higher level of acid in crude overhead systems (and other circuits where acid is
concentrated)– Risk of corrosion  Product quality issues: acid distribution in Kerosene/AGO/VGO cuts;
Would it pose concerns on meeting specs for products?

Refiners’ approach to process High Acid Crude oil

Systematic unit-wise impact analysis of high TAN crude on existing metallurgy.

• Dilution by blending (large CDU capacity is helpful)

• Chemical Inhibition method in a limited way (in respective circuits)

• On-line corrosion monitoring systems at specific sensitive points.

Commercial Impact of processing High Acid Crude oil

• Continuous use of high acid crude in a refinery without metallurgy protection needs to consider:

• Operating cost towards Chemical Inhibitors

• Investment for installing corrosion monitoring systems

• Stepped up inspection of critical equipment/points for integrity

• Investment decisions dependent on cost-benefit of processing such grades

High Pour Point (HPP) Crudes

Extra Heavy/High Viscosity Crudes

High Nitrogen Crudes

High Nitrogen Crudes

Crude Oils with High Metal Contents

Commercial impact of processing Crude oils with High metal contents
• Cost-Benefit analysis to be done for lower crude cost vis-à-vis:

 Desalter modifications

 Catalyst replacement cost/Turnaround impact.

 Impact of inferior yields & increased operating cost

Current Market conditions for Opportunity Crudes

Factors affecting differentials of Opportunity Crude oils : • How widely is that grade accepted?

 Larger the number of refineries capable to process opportunity grades, wider is the customer base;
Supplier net-back improves

• Grades requiring diluents/heating – Cost of diluents/ higher freight adversely affects supplier net back
as well landed cost to refiner

• Sanctions affecting market access – Only part of market available for marketing such grades; Buyers
able to access may benefit

Market Direction
• Increasing complexity of refineries and tougher refining margin environment– Refiners pushing to
widen technical processing envelopes

• Increased emphasis by National Oil companies to process opportunity grades within the producing
country

• Higher demand from Emerging markets for opportunity grades from West-of-Suez sources

• Result? Suppliers targeting higher net-back on opportunity grades and hence scope of refiners value-
addition shrinking
Commercially Processing Opportune Crude Oils

What Determines Average Crude Prices and Hence Differentials

Specific gravity – API – a positive factor :Distillate yields

Sulfur (% by weight) – a negative factor :Cost of Refining

Acidity (TAN) – a negative factor :Corrosion & Fouling

High Pour :Transportation/pumping

Advantages of Processing Opportune Crudes

 Ability to process low cost crudes - Crude constitutes more than 80% of input costs of a
refinery e.g., For a 15 MMT capacity refinery, processes 1/3 of opportune crudes
costing 1$ less would make over 100 crores additional profit which is substantial.

 Enlarging crude basket – reduced dependency of specific crudes i.e., ability to process
wide variety of crudes

 Each ° API per $ of Brent is worth +$0.00969.

 Each % of sulfur is worth -$1.979

 Each unit of TAN is worth -$1.435

Example :
Opportunity Crude Processing ( Baker Hughes)

Increase refinery profitability and feedstock flexibility

 Our chemical treatment programs and services reduce refinery feedstock cost and improve feedstock
selection flexibility. Our differential chemical technologies and application experience with opportunity
crude oil allows you to process higher rates of these feedstocks. This occurs with minimal impact on
crude unit reliability, equipment integrity, wastewater treatment plant operation, and other downstream
unit operations.

Processing challenges depend on the feedstock’s physical and chemical characteristics and its behavior
when blended with other crudes. In addition, the configuration and capabilities of the refinery’s
processing units also can pose a challenge.

Shale oil is becoming a favorite crude feed for refiners because it is cost effective and readily available.
Baker Hughes customized chemical, service, and technology solutions solve the specific problems caused
by shale oil during blending and processing. We provide expert analysis and chemical solutions that help
you improve operating margins at each step of the refining supply chain process.

Address opportunity crude processing challenges

Our technical offerings overcome opportunity crude processing challenges.

Baker Hughes XERIC™ heavy-oil programs allow you to manage higher rates of heavy, high solids,
high-asphaltene crude-oil blends and still maintain desired desalter operations and performance.

Baker Hughes JETTISON™ solids release agents transport oil-free solids from the desalter to the brine
effluent, allowing the refiner to process higher rates of opportunity/challenged crudes while reducing the
impact of solids and contaminants on refining processing equipment.

Our wastewater treatments address high solids, oily effluent water using improved processing schemes
and polymers to reduce wastewater plant upsets and improve performance.

Baker Hughes SMARTGUARD™ naphthenic acid corrosion control programs protect critical refinery
equipment. Our programs reduce risk when processing high-acid crudes and maximize profit by enabling
you to run higher TAN crude blends.

Baker Hughes TOPGUARD™ overhead corrosion control programs, with Ionic Model simulation
technology, predict and control the corrosive impact of crude blends and operating conditions, ensuring
the integrity and safety of your operations.

Baker Hughes EXCALIBUR™ contaminant removal technology allows you to process high-metal
opportunity crudes while continuing to convert reduced crudes in FCCUs and produce on-specification
coke and heavy fuel oils.

Baker Hughes Field ASIT Services™ technology measures asphaltene stability to predict the impact of
crude oil characteristics on crude storage compatibility, crude blends fouling potential, and desalter
emulsion stabilization.

Baker Hughes LIFESPAN™ exchanger fouling control programs use a practical, systematic approach to
maximize the life of your exchangers.

By implementing these capabilities, our customers experience key benefits:

 process higher rates of challenging feedstocks

 process wider varieties of challenging feedstocks
 maintain desalter operational stability and performance during processing
 minimize opportunity crude processing impact on unit operations and equipment integrity.

DOWN STREAM CHEMICALS

https://www.bakerhughes.com/products-and-services/downstream-chemicals