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Oil Prices
History
Kuwait National Petroleum Company (KNPC) was established in October 1960 as a shareholder company governmental and the private sector. In 1968 the company commenced its own (Shuaiba Refiner)" and in May 1968, the beginning of shipments of refined petroleum products was exported from Shuaiba Refinery. Shuaiba Refinery is number on the world's all hydrogen refinery. With total capacity of about 195,000 Barrels per day. In 1975 the company turned to be a fully owned state company.
After Establishment of Kuwait Petroleum Corporation in 1980, KNPC became fully owned by KPC which itself is owned by the State of Kuwait. When the oil sector was restructured, KNPC was entrusted with the responsibilities of oil refining and gas liquefaction as well as the distribution of petroleum products in the local market on behalf of KPC. Consequently, the company became responsible for the three oil refineries; Mina Al-Ahmadi ( Port of Ahmadi ), Mina Abdullah ( Port of Abdullah ) and Shuaiba, Moreover, the LPG plant in Mina Al-Ahmadi.
The company carried out Mina Al-Ahmadi refinery Modernization and Further Upgrading Projects in 1984 and 1986 respectively to increase its capacity to 410,000 Barrels per day. Mina Abdullah Refinery Modernization Project was also finished in 1989 and the refinery capacity got over to 231,000 Barrels per day.
Refinery Modernization Projects did not increase the refineries throughput only, but also mad an improvement of the quality of petroleum products which became a main competitor on the world oil market.
A total improvement to the oil export facilities had also been affected. The South and North Piers in Mina Al-Ahmadi Refinery were upgraded to increase the loading efficiency along with Sea Island in Mina Abdullah Refinery and oil pier in Shuaiba Refinery. Regarding the local market, the company determined to expand marketing outlets to meet the increasing demand on petroleum products.
Overview
Vision
Unprecedented growth in the worldwide demand for energy presents them with the opportunity to transform their business into a leading global force. They'll do it by aligning their performance, their people and their practice to this changed environment. Their mission, vision and values show the way.
Mission: To make more Kuwaiti hydrocarbons Valuable.
Performance
The world demand for secure energy supplies is growing at unprecedented levels. Looking ahead to the future, the part they play and the resources they draw on, both human and physical, are more precious than ever to the customers they serve, the growth of their business, and to the prosperity of the Kuwaiti people. That's why it's their declared aim to be the best refiner in the Gulf.
People
They are committed to building the best people. It means identifying and nurturing talent. Giving people a voice and recognizing and rewarding individual contributions, teamwork and creativity. It's about learning new skills, perfecting existing ones and sharing their knowledge. And about respecting each other for what they do and have the potential to achieve, as they work together to achieve our goals.
Practice
To achieve our goals they must apply the right practice in everything they do. When it comes to health and safety there's too much at stake to make compromises. It's an absolute commitment. It's a same with our stewardship of the environment. And the ethical and open way they go about our business. And all the while, they will apply the best, world-class practices to producing superior products that more than match the changing demands of the markets they serve.
Manufacturing Process
Refineries:
Mina Abdullah
Mina Abdullah Refinery is located approximately 46 km to the South of Kuwait City, directly on the Arabian Gulf. The total area covered by its installations, after the completion of the modernization project, is 7,835,000 m2. This refinery was built in 1958 during the rule of the late Sheik Abdullah Al-Salem Al-Sabah, by the American Independent Oil Company. It was, at that time, a simple refinery that contained one crude oil refining unit with a capacity of approximately 30,000 Barrel per Day.
Mina Abdullah Refinery Modernization Project:
The plan to modernize Mina Abdullah Refinery and, before it, Mina Al-Ahmadi Modernization Project, were part of a strategy concerning energy in the country. A study prepared by a specialized committee from KNPC and KPC, found that Kuwait would need liquid fuel to feed its power generation stations and other installations, cater for the country's demand for petroleum products and create stable foreign markets for Kuwaiti export high grade petroleum products. To provide such liquid fuel, Mina Al-Ahmadi and Mina Abdullah refineries would have to be expanded. Furthermore, the need to provide the local market with petroleum products with a low content of pollutants and conform with the strict anti-pollution requirements of many countries with regard to petroleum products, necessitated the introduction of new technologies that would increase the ability of the Kuwaiti petroleum products to compete in the world market and to satisfy environmental regulations.
The Ministry of Oil commissioned KNPC in 1980 to undertake a study of modernizing Mina Abdullah Refinery and select the optimum system for achieving such modernization. In 1981, the study was completed and the ad hoc committee presented its report which contained a recommendation as to how such modernization could be realized. The Mina Abdullah Refinery Modernization Project consisted of three parts: The first was to revamp the existing units and utilities at the Refinery and increase their efficiency. The second was to construct new advanced technology production units and support facilities that use catalysts in order to produce high-value light petroleum products and minimize portions of fuel oil. The third was to develop export facilities including the construction of an artificial island (the sea island) that would be used as an exportation point for the refinery products and increase the efficiency of the North and South Piers at Mina Al-Ahmadi. Mina Abdullah Refinery Modernization Project was officially inaugurated in February, 1989. When it was completed, the refining capacity had been increased to more than 240,000 bpd.
The high technology used in the construction of the new refinery was the best oil refining technology known at the time. Upon the completion of its modernization project, Mina Abdullah Refinery became one of the world's most sophisticated and modern oil refineries.
Concerning that, the three refineries continuously exchange products for use in their various process activities or blending operations in order to create products that are ready for export.
The Units of Mina Abdullah Refinery:
Mina Abdullah Modernization Project consisted of 15 new process units and the modernization of existing units such as the crude distillation, hydrogen production units, Sulphur recovery units and others. Among the most important units at Mina Abdullah Refinery are two crude distillation units, four hydrogen production units, two atmospheric residue desulphurization units, a vacuum distillation unit, two delayed Coker units, a hydro-cracking unit and several other support facilities and utilities.
The Crude Oil Distillation Unit:
The new crude distillation unit at the refinery has a design capacity of 180,000 bpd. With the existing unit, the refinery now has two crude distillation units with a total capacity of 240,000 Barrel per Day. Like all other crude distillation units at the refineries, crude from the Kuwaiti oil fields is distilled in a distillation tower under atmospheric conditions in order to obtain preliminary petroleum products such as petroleum gases, naphtha, kerosene and diesel, while the preliminary column bottom residues are sent to other units for further treatment under different temperature and pressure.
These production units upgrade the specifications of the primary petroleum products from the distillation column in order to conform with international specifications.
The old crude distillation unit has been upgraded to a production capacity of 75,000 Barrel per Day, following certain important improvements to its performance in order to bring it more in line with the specifications of the new distillation unit.
Central Control System:
The Central Control Room (CCR) is an initial example of the modern technology applied in the Mina Abdullah Refinery Modernization Project, with a futuristic perspective.
The selected system uses the state - of - the - art technology in this field. The fundamental Specifications of the system include reliance on microprocessors, digital equipment and the usage of a distributed control system together with a computer system to apply advanced control to refinery operations.
The Central Control Room is a system of CRT (Cathode Ray Tube) video con- soles, grouped in a set of usually four CRTs. Each group is named by a workstation. The CCR consists of ten workstations including one spare intended for training.
Each workstation consists of three Central Control Room associated with digital Distributed Control System (DCS). By the use of Distributed Control System, process units can be controlled by using the remote sensor way and operated as far as 5,000 feet. Process indications along with a variety of informative displays required for control and monitoring of refinery operations is available on the CRT screens.
Associated with the Distributed Control System, there is a process computer CRT which provides properly sorted process information apart from providing a graphic display of the plant itself. By using the same CRT, advanced supervisory control over the Distributed Control System can also be provided. A report printer associated with the process computer provides plant status reports.
Reliability In Shuaiba Refinery
The way they design, construct, operate and maintain our Process Units must consistently deliver a reliable supply of quality products to our customers. The high availability needed to satisfy our customers can only be achieved through World Class Operational Reliability. This will also ensure safe energy- efficient and environmentally responsible performance, and deliver refinery margin and strong Cost performance- Sustainable Best in class (SBIC) with Downstream One.
Strategies
- The “Operational Reliability Driven Action Plan” will provide a common structured overview and focus all significant reliability improvement initiatives.
- Proactively manage equipment reliability by understanding the condition of our process units, by operating steadily within agreed limits, and by maintaining equipment correctly.
- Operational Reliability is everyone’s business. They will actively promote open communication to ensure our efforts are integrated and everyone understands their contribution. Engage Reliability team in developing and executing maintenance and operating tasks to avoid unplanned failures.
- Treat all equipment failures and problems as opportunities to learn and improve Operational Reliability and share our learning.
- Apply “intelligent risk management in our day-to-d day decision making ( i. e. use of the Corrective Maintenance RAM) .
- Actively manage the impact of variations in the supply of feedback and utilities, and in customer equipment, to minimize the effects on Quality, Reliability and Availability.
- Use Benchmarking to demonstrate and improve our Operational Reliability / Maintenance performance.
Occupational Safety and Health
Projects Department continued to implement extremely vital projects in the refineries and other company departments. While doing so, it has maintained an impressive record in the field of safety. No PD employee has met any (LWC) in any project since the department formation. The department and contractors working under its supervision, achieved millions of man- hours without Lost Work Case (LWC). The department was also awarded occupational Health & Safety Merit Award by ROSPA and the International Safety Award by the British Safety Council during this year.
Improvement of safety standards, health conditions and environment protection measures enjoys special importance to KNPC both for staff and assets as well. This was clearly stated by the Chairman and Managing Director when he said in one occasion “They would like to highlight that the safety, health and environment is one of KNPC core values that will not be compromised in the name of profits. The safety and health of our employees and those who work with us are vitally important. The protection of environment is also equally important”. The company continued its efforts to upgrade safety standards in every domain. Oil refineries in this respect made outstanding achievements. For instance, Mina Al- Ahmadi Refinery completed one calendar year without any Lost Work Case (LWC). Mina Abdullah Refinery achieved a half million man- hours without (LWC) accidents. Shuaiba Refinery also operated for 2.5 million hours without (LWC). The Project Department achieved. 4.2 million man- hours without (LWC). The Local Marketing Department also completed around one million man hours without (LWC). The company also fully implemented during this fiscal year the Safety, Health & Environment Management System.
KNPC won a number of wondrous prizes and certificates throughout the year in recognition of remarkable performance in the fields of Safety, Health & Environment friendly behavior. The company has applied and carried out an Environmental Management System conforming to ISO- 140012004 - Standards. After the system was audited and certified by international auditors Lloyds Register and quality assurance in July 2005, the company won the ISO- 14001- certification. The company three refineries also continued to win awards of the British Safety Council in appreciation of the high health and safety standards they have attained. The awards are judged by comparing safety records with others in the same industry. This was not the first time of winning such prestigious awards. Mina Abdullah Refinery continued to win the ROSPA award ( Royal Society Prevention of Accidents) of Britain. The Refinery was selected for ROSPA award based on its consistent excellent standards of Health and Safety performance, MAB won this award for three years in a row.
The Occupational Health Program Meanwhile the company conducted throughout the year an extensive campaign to promote the Behavioral Based Safety Program, or what was defined as a Safe Observation leading to Accidents Reduction (SOLAR) with a view to ensuring a safe working environment. The program’s strength embodied in the fact that it encompasses all categories in the company and cascades from top echelon to the broad base of ordinary employees. In the field of health, the company strongly believes that healthy workers are an asset to it, as they can perform to maximum potential and achieve full efficiency. With this in mind, KNPC considers occupational health as an integral part of SHEMS. This program was completed during this fiscal year and comprised fifteen elements including the following:
- Identification, evaluation and control of workplace health hazards.
- Monitoring and maintaining employees and contractors personnel health.
- Diagnosis and treatment of occupational illness and injury.
- Health education and counseling.
Environment
Kuwait National Petroleum Company is committed to the protection of the Environment. This commitment is being translated into a hard work and determination to combat pollution at its very sources, especially air and sea contaminations. Concrete measures are being taken in this perspective to improve the standards of Environment protection including a number of costly projects designed only to serve this purpose such as:
1 - Ambient Air quality monitoring
Monitoring of Air quality in and around the oil refineries is twenty for runtime for which a mobile station is being used. The system is capable of measuring pollutants in the air and keeping them well controlled to meet specifications of Environment Public Authority (EPA)
2 - Oil Sludge Treating Units
This unit was built in Mina- Abdullah Refinery to treat oil sludge resulting from residues in the three refineries as well as the Local Marketing facilities. Beside its environmental benefits quantities of crude oil, and other hydrocarbons can be recovered and reprocessed, leading to a significant reduction of polluting sludge. This is the only unit of its kind in the GCC countries.
3- Spent Catalysts Treatment Agreement
KNPC signed a special contract with the Catalyst Company for the treatment of spent catalysts used in the three refineries. According to the contract the Catalyst Company is going to construct a special treating facility for this purpose.
4- Revamp of Effluent Treatment Facility At Three Refineries:
The project’ s objective is to upgrade the existing wastewater facilities at the three refineries to ensure that wastewater resulting from the industrial process is meeting the specification of the EPA by installing all necessary facilities. Total cost is estimated at KD 43.3 million. It is a purely environmental project meant to cut down to minimum pollutants in wastewater, before being discharged to the sea.
5- Revamp of MAA Burnery for Smokeless Operation:
The project is designed to revamp the Burnery System at Mina Ahmadi Refinery based on a study by an international consultant. The Project will improve environmental emission through smokeless burning and avoiding burning of hydrocarbons.
6 - Tail Gas Treating Unit
The project envisages a Tail Gas Treating Unit to be built at Shuaiba Refinery for Sulphur recovery improvement. This unit will increase the company ability to recover 99% of Sulphur. The project mainly designed to sever environmental purposes, will cost around KD 14.8 million.
Conclusion
The rise of oil prices was naturally accompanied, or resulted indeed from excessive demand on traditional sources of energy. The prices hike should be in fact attributed to absence of political stability and turmoil which prevailed in the oil producing regions in Asia and Africa, coupled with uncertainty on the market about the availability of oil supplies in the near future. That is why traditional and new markets strived to secure stable sources of supplies regardless of prices. Though the market is relatively witnessing balance between supply and demand, however the influence of this market factor gave ground to psychological and political factors. Going hand in hand with successful operation of our refining complex and close check on expenditure, KNPC managed to benefit from the prevailing conditions on the world market to generate a record profit which indeed surpassed our most ambitious expectations. Though they have not been the only party to reap benefits from the flourishing market, KNPC, however, was distinguished in the way it has operated its refining plants. This success was reflected in the fact that the three oil refineries were able to achieve millions of man- hours without (LWC).
The Local Marketing and the Projects departments also followed suit and each of them continued working safely fo million of man- hour without lost work case.
References
www.knpc.com.kw
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