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5 days

EAV/EFR

Who should attend?

Audience

- Technical, operating and engineering personnel working in the refining industry, trading and commercial specialists, independent consultants, process licensors, catalyst manufacturers and refining subcontractors.

Level

- Foundation

Learning Objectives

- Upon completion of the course, participants will be able to:
- calculate product marginal value, refinery margins and process unit margins,
- identify cost savings in order to improve margins,
- simulate refinery operations and product blending,
- simulate and optimize refinery operations, crude oil selection and product manufacturing,
- analyze the result of a linear programming model optimization,
- evaluate project profitability.

Course Content

- Brief technical presentation of the main refining units: distillation, conversion, blending, etc.
- Refinery scheme evolution.

- Oil supply and demand fundamentals and evolution.
- Petroleum physical trading (spot, forward).
- Crude oil and petroleum product pricing: benchmark, quality differential, etc.
- Financial trading (futures) and hedging strategies for a refiner.

- World petroleum product demand.
- Refining supply: overcapacity, types and quantity.
- Main challenges: deep conversion, new product specifications, petrochemical integration, environment, etc.
- Projects and perspectives.

- Refinery margins and costs: definitions and evolution worldwide.
- Unit margins and intermediate product valuation.
*Case studies: crude oil arbitrage, Fluid Catalytic Cracking (FCC) unit margin.*

*Case study: managing the blending operation of a refinery taking into account the economic and technical (product specifications, capacities, etc.) constraints.*

- Linear programming (LP) principles: linear equation, objective function, profit maximization or cost minimization, Simplex method, graphic interpretation, etc.
- Analysis of the LP results: optimum properties, marginal costs, domain of validity of the results, etc.
*Case study on Excel: explanation of a refinery model matrix (material balances, product specifications, utilities consumption, objective function, etc.); team work on the optimization of a cracking refinery and on the result analysis.*

- Principles of refining management: constraints, operational organization.
- Monthly program to daily operations.
- Optimization of margins from different process units.
*Case study: management of typical sequential constraints (delays, processing problems, etc.).*

- Value creation and capital cost, cash flows, discounting principle and inflation impact.
- Standard global profitability analysis: cash flow schedule, economic criteria (net present value, internal rate of return, etc.).
- Introduction to risk analysis.
*Exercises on various investment profitability studies for refineries and petrochemical plants.*

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Ways & Means

- Case studies and exercises derived from present refinery situations.
- Economic optimization using Excel.
- Quiz.