Status 28/02/2008 14:56

MANUAL
VIRTUAL REFINERY FOR freshhh2008

No part of this document may be duplicated and/or publicly reproduced by means of printing, photocopy, microfilm or in any other way,
without the specific written permission of MOL Plc. and EcoSim Kft. in advance - Tilos jelen kiadvány egészét vagy részét a MOL Nyrt és
az EcoSim Kft írásbeli engedélye nélkül, bármilyen formában lemásolni és sokszorosítani.
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WELCOME
Start up your engines! Welcome to the Simulation Round of the MOL Group „freshhh2008” Competition.
Please read this manual carefully before starting the simulation game!

The Simulation game is a 4-round competition. Information will be provided online

(www.freshhh2008.com) and via e-mail. You will get new technical and business information round by
round and then you will have to make decisions as shown in the table on page 4.
Below, please find the Simulation Round time-table.
The “… decisions by” rows indicate deadlines by which you must make (input) decisions for your refinery
at the very latest.
The “… results and next task” rows indicates the time and date when you will receive your results back as
well as the task for the following period which will be available on the website.
The “live questions & answers time (Q&A)” rows indicate a time period in which Game Management will
be available to answer any questions, on the spot. (Naturally you can try to contact us at any other time
but we cannot guarantee such fast answers as you will get during Q&A periods.)

Website: www.freshhh2008.com
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SIMULATION ROUNDS:
Round Deadline Date Deadline Time
(GMT)

1. Start your engines! – the February 29 Friday 13:00

Simulation starts
1. Live questions & answers time March 3 Monday 14:00 - 16:00
(Q&A) via e-mail (optional) March 6 Thursday 14:00 - 16:00
1. First decisions by March 6 Thursday 24:00
1. First results and next task March 7 Friday 13:00
2. Live questions & answers time March 7 Friday 14:00 - 16:00
(Q&A) via e-mail (optional) March 11 Tuesday 14:00 - 16:00
2. Second decisions by March 11 Tuesday 24:00
2. Second results and next task March 12 Wednesday 13:00
3. Live questions & answers time March 12 Wednesday 14:00 - 16:00
(Q&A) via e-mail (optional) March 14 Friday 14:00 - 16:00
3. Third decisions by March 16 Sunday 24:00
3. Third results and next task March 17 Monday 13:00

4. Live questions & answers time March 17 Monday 14:00 - 16:00

(Q&A) via e-mail (optional) March 20 Thursday 14:00 - 16:00
4. Fourth decisions by March 20 Thursday 24:00
4. Fourth results March 21 Friday 13:00
TOTAL RESULTS March 21 Friday 13:00

This manual describes the environment in which your refinery operates.

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THE GAME SETUP
Mission and objectives
In the Simulation, your team works for a Downstream oil company that operates a large complex
Downstream-Petrochemical refinery. The feedstock and semi-finished goods, required for refinery
processing, are imported via pipeline or tanker. The company supplies the local market with products and
exports the remaining.

During the Simulation Round you as the engineering team of the company has various choices as to
decide what to produce: motor fuels or plastics; bitumen or more motor fuels; change your
diesel/gasoline ratio according to market demand, and so on. So let’s explore the wonderful world of the
petroleum industry!

To optimise refining operations to meet commercial demands, you as the technical team will be asked to
set up a simple simulation model. With this model you will be able to plan the next month’s strategy.
During the game, this calculation model will have to be modified, round by round, by establishing
capacity utilisation and the optimal amounts of each material to be produced, based on the technical and
marketing data provided. It is recommended you use some kind of spreadsheet editor (e.g. MS Excel).

The accuracy and adaptation of the simulation model are demonstrated by profits earned.

The amount of those profits will depend on how well players:

• succeed in building adequate calculation models based on the given technical parameters
• utilize the flexibility of the virtual refinery system using their calculation models
• meet product demand in the marketplace that will specifically increase the aggregated profits
• maintain product specifications (sulphur content, octane number etc.)

The team which realizes the highest profits by the end of the fourth round (fourth month)
wins the Simulation Game!

During the game, your team will not compete directly with other teams. At the beginning of the game, all
team companies will be in an identical situation.

Decisions round by round - the art of making a decision

The game is played in 4 rounds each lasting one month, thus the Simulation Game lasts 4 months. During
each round, decisions have to be taken concerning planned capacity utilization, production, quantities to
be marketed during the following month.

Beyond the technological and market parameters - listed below - you can expect to receive further data
such as special events, and market situations round by round which make each one different.

Teams have to record their decision data on the Simulation Game website. They then receive immediate
feedback on the feasibility of their proposed production plans. Based on the feedback the decision may be
changed once more at the end of each round. So, all in all your team has 2 choices. Than team decisions
will be input to the reference model to calculate team profits. Detailed profit calculation will be disclosed
at the start of the next round.

It is recommended that teams prepare detailed, transparent models so as to be able to record required
data easily, and be able to adapt to new business conditions.

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If you fail to make a decision on time, the Simulation Game runs on automatically in terms of crude oil
refined and marketed. However, making no decision may not prove to be a good idea since surely it
would be better to analyse the market, plan actions and then make decisions.

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YOUR COMPANY’S BUSINESSES - overview
“The Downstream process” is a commonly-used term referring to the purchase, refining, distribution and
marketing of products derived from crude oil. Your refinery employs “deep-conversion” processes which
provide the ability to process heavy crude and sour oil, not only greatly reducing the need for less
profitable “heavy bottom” sales but producing a wide range of different profitable products.

Please find the refinery flow-chart in the manual attachment. In this chart, each production unit is given a
three-letter abbreviation. Technical data required by the Simulation model, with full unit names are to be
found in the Refinery Technology Pages. The lines show the possible materials connections between the
units.

There is flexibility in the refining system. These flexible points (splitters) are marked S1-S9 in the
flowchart. By changing the rates at the splitters, the quality and quantity of end-products can be changed
to meet commercial demand.

Splitte Full name Flows

r
S1 Vacuum residue splitter DCU (Delayed Coker Unit) feed
BBU (Bitumen Blower Unit) feed
S2 VGO splitter VHT (VGO Hydrotreater Unit) feed
VHC (VGO Hydrocrack Unit) feed
S3 SR Gasoil splitter HBU (Heating Oil Blender Unit)
PC Gasoil
DHU (Diesel Hydrotreater Unit) feed
S4 Htd Naphtha splitter REF (Reformer Unit) feed
PC Naphtha
S5 C3 splitter LBU (LPG Blender Unit)
SCU (Steam Cracker Unit) feed
S6 C4 splitter LBU (LPG Blender Unit)
GBU (Gasoline Blender Unit)
SCU (Steam Cracker Unit) feed
S7 Htd Kero splitter Jet-A1
DBU (Diesel Blender Unit)
S8 VHT Gasoil splitter HBU (Heating oil Blender Unit)
DHU (Diesel Hydrotreater Unit) feed
S9 Htd Gasoil splitter DBU (Diesel Blender Unit)
HBU (Heating Oil Blender Unit)

During the game, over and beyond the model, the amount of processed crude oil, these splitters should
be changed in your own model, round by round. In this way your team set capacity utilization and the
optimal amounts of each material to be produced, based on the technical and marketing data supplied.
There is no other way of changing production unit yields.

The art of simulations

The use of simulations requires a model that is a simplified representation of reality. The huge number of
variables interacting in a real business situation cannot be included in the model because it would be
impractical and technically difficult to attempt. The art of modelling therefore lies in the selection of only
the most important variables.

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The main simplifications are:

• Market and political conditions and circumstances of the real world do not need to be taken into
consideration
• There are no final product tanks for blended products to store. All the quantities are sold in the
planned month the volumes can not be stored for the next period.
• Planned sales always fulfilled 100%
• Reliability of indicated sales pricing is 100%
• The planned production always totals 100%. There is no unplanned shutdowns
• There are no limits to production or blending unit capacity (except for the AVD Unit)
• Intermediate storage tanks do not restrict planning
• Only the given features of the crude and products are to be calculated during the simulation.
• To make it simple, the properties of the components blend linearly by volume (tons) and the
model is therefore simple to construct. A blended product is to be considered as one batch: if a
feature does not meet the right specification, the whole batch will be off-spec
• The cost of hydrogen is taken from the utility cost system and other variable costs. Hydrogen
management is outsourced. All quantities missing from the hydrogen balance are purchased at a
contracted price
• Sulphur content of crude oil does not influence hydrogen quantity in desulphurisation plants.
• If your profits accidentally become negative, you will not have any financial difficulties.

Market conditions
The company markets the following products:
• LPG,
• Motor gasoline
• Kerosene (Jet-A1)
• Diesel
• Heating oil
• Fuel oil
• Bitumen
• Coke
• Polyethylene
• Polypropylene.
Sales in the marketplace are typically via “term” and “spot” contracts. Domestic orders are generally
based on term contracts, export demands on spot contracts. To fulfil orders based on term contracts is
obligatory (minimum). Fulfilling spot contract orders are optional (maximum).

Feedstock that can be purchased are Crude oil, Ethanol and Hydrogen. Since Crude oil can be obtained
from different fields around the world, its physical and/or chemical properties can vary from type to type.
Crude oil assay reveal the properties of a given crude oil. However, although the individual cargo
properties can differ from original crude analysed qualities, such minor deviations are negligible. In the
first month only REB (Russian Export Blend) crude is available.

The pricing of the products, Crude oil, Ethanol is based on world market quoted prices. Your sales price is
the sum of your wholesale premium and the world market price. Up-to-date price forecasts for these
products will be provided, round by round.

Profits are calculated as follows:

Product sales price * volume – feedstock quotation price (crude, other materials) * volume – other
variable cost * volume.

The amount of processed crude oil has to be given in tons. The price of the crude should be made

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rounded to one decimal place, e.g. 210.1 and not 210.132)

During the Simulation, please remember:

− Off-spec products (those that cannot fulfil quality specifications) may only be disposed of
at a specific discount. E.g. Diesel may only be disposed of at 40% discount.
− ”Sales below minimum” means that missing quantities are to be purchased and resold.
E.g. for Diesel the loss incurred in the process will total 20%.
− “Production above maximum” means that surplus quantities may be sold in distant
markets at a specific discount. E.g. Diesel may be sold in distant markets at a 30%
discount.
Any quantity may be transferred to the customer; there is no constraint on logistics capacity.

Discounts on product prices %

LPG
LPG sales above max -20%
LPG sales below min -20%
LPG sales out of specification -40%
Motor gasoline
mogas sales above max -30%
mogas sales below min -20%
mogas sales out of specification -40%
Jet-A1
Jet-A1 sales above max -30%
Jet-A1 sales below min -20%
Diesel
Diesel sales above max -30%
Diesel sales below min -20%
Diesel sales out of specification -40%
Heating oil
Heating oil sales above max -30%
Heating oil sales below min -20%
Heating oil sales out of specification -40%
Fuel oil
Fuel oil sales above max -30%
Fuel oil sales below min -20%
Fuel oil sales out of specification -40%
Bitumen
Bitumen sales above max -20%
Bitumen sales below min -20%
Coke
Coke sales above max -20%
Coke sales below min -20%
Polyethylene
Polyethylene sales above max -20%
Polyethylene sales below min -20%
Polypropylene
Polypropylene sales above max -20%
Polypropylene sales below min -20%

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Refinery technology
The group of production units comprises the following:
− Distillation, conversion units
− Gas production
− Gasoline production
− Middle distillate production
− Fuel oil blending
− Bitumen production
− Petrochemical production line

The main technological parameters by production units are:

Distillation, conversion units

Petroleum refining begins with crude oil distillation. Refinery capacity is therefore typically defined by the
total capacity of the distillation unit. During distillation, Crude oil is separated into different fractions. The
max capacity of AVD is 300000 tonnes per month.
Yield structure (1=100%):
AVD Atmospheric and Yields
Vacuum Distillation unit
Crude oil type Russian
Feed Crude oil 1
Total 1
Product LPG 0.011
s
SR naphtha 0.178
SR kerosene 0.05
SR gasoil 0.314
VGO 0.222
Vacuum residue 0.215
Loss 0.01
Total 1

Coking is a severe form of thermal cracking and represents the complete conversion of petroleum
residues to coke and lighter products. This is a carbon-out process, where the CH ratio is improved by
carbon (coke) removal.
Yield structure (1=100%):
DCU Delayed Coker Unit Yields
Feed Vacuum residue 1
Total 1
Product DC C3 0.02
s
DC C4 0.02
DC naphtha 0.1
DC gasoil 0.18
DC VGO 0.4
Coke 0.23
Loss 0.05
Total 1

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The FCC, Alkylation and ETBE production is handled in one block. Catalytic-cracked naphtha is a large
and important component of the gasoline pool. The Alkylation process combines light olefins to branched-
chain isoparaffins of high octane number. During etherification, ETBE is produced to provide the required
bio content in gasoline. Ethanol purchase is required in ETBE production. Please note that in the
Simulation direct ethanol blending is not necessary.
Yield structure (1=100%):

FCC Fluid Catalytic Cracking Yields

Unit
Feed FCC feed 0.99
Ethanol 0.01
Total 1
Product Propylene 0.05
s
C3 0.02
C4 0.01
FCC naphtha 0.52
ETBE 0.025
Alkylate 0.115
FCC Gasoil (LCO) 0.09
FCC residue 0.08
Loss 0.09
Total 1

In the VGO Hydrocracking Unit, heavy petroleum-based hydrocarbon feedstock (VGO) is cracked into
products of lower molecular weight such as liquid petroleum gas (LPG), gasoline, jet fuel and diesel oil.
The hydrocracking VGO process produces diesel oil with a high cetane number but with low aromatics
and sulphur content, making it ideal diesel blending stock.
Yield structure (1=100%):
VHC VGO Hydrocracking Unit Yields
Feed VGO 0.97
Hydrogen 0.03
Total 1
Product LPG 0.05
s
VHC naphtha 0.39
VHC gasoil 0.44
Unconverted oil 0.07
Loss 0.05
Total 1

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Gas production
The Hydrodesulphurization process is used to meet sulphur content specifications.
Yield structure (1=100%):
LHT LPG Hydrotreater Unit Yields 1 Yields 2
Feeds SR LPG 0.999
VHT LPG 0.998
Hydrogen 0.001 0.002
Total 1 1
Product Hydrotreated LPG 0.99 0.99
Loss 0.01 0.01
Total 1 1

The LPG fractionation unit separates the feed gases into two components: C3 (for SCU feed or LPG
blending) and C4 (for SCU feed, LPG blending, or gasoline blending).
Yield structure (1=100%):

LFU LPG Fractionation Unit Yields 1 Yields 2 Yields 3

Feeds Hydrotreated LPG 1
Reformer LPG 1
VHC LPG 1
Total 1 1 1
Product C3 0.19 0.19 0.19
s
C4 0.8 0.8 0.8
Loss 0.01 0.01 0.01
Total 1 1 1

LPG component features and quality specifications:

LBU LPG Blender Unit LPG requirement

min max
C3 content m/m% 40 60
C4 content m/m% 40 60

The C3C – C3 Collector is the accumulator of C3 hydrocarbons.

C4C - C4 Collector is the accumulator of C4 hydrocarbons.

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Gasoline production
The Hydrodesulphurisation process is used to meet sulphur content specifications.
Yield structure (1=100%):

NHU Naphtha Hydrotreater Yields 1 Yields 2

Unit
Feeds SR naphtha 0.999
DC naphtha 0.997
Hydrogen 0.001 0.003
Total 1 1
Product Hydrotreated naphtha 0.99 0.99
Loss 0.01 0.01
Total 1 1

Catalytic reforming is employed to upgrade low octane naphtha to a high octane gasoline component.
The process also produces hydrogen as by-product.
Yield structure (1=100%):

REF Reformer Unit Yields

Feed Hydrotreated naphtha 1
Total 1
Product Reformer LPG 0.04
s
Reformate 0.85
Hydrogen 0.05
Loss 0.06
Total 1

Gasoline blending component features and quality specifications:

GB Gasoline C4 Pyro- Reformat FCC ETB Alkylat Gasoline

U Blender Unit naphtha e gasolin E e requiremen
e t
min max
Sulphur 0 15 1 6 13 0 10
content (ppm)
Aromatic 0 60 70 21 0 0 35
content (%)
RON 94 99 100 93 110 95 95
RVP (kPa) 260 44 37 62 50 65 60 90

CNC- Chemical Naphtha Collector is the accumulator of petrochemical naphtha.

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Middle distillate production
In the middle distillate production line, kerosene, diesel and heating oil are produced.

The VGO Hydrotreater Unit simultaneously performs desulphurisation, de-nitrification and moderate
hydrocracking within a single reaction process

VHT VGO Hydrotreater Unit Yields 1 Yields 2

Feeds VGO 0.98
DC VGO 0.96
Hydrogen 0.02 0.04
Total 1 1
Product LPG 0.01 0.01
s
VHT naphtha 0.04 0.04
VHT gasoil 0.15 0.15
FCC feed 0.75 0.75
Loss 0.05 0.05
Total 1 1

Hydrodesulphurization is the process used to decrease the sulphur content of a given product to meet
sulphur content specifications.
Yield structure (1=100%):

KHT Kerosene Hydrotreater Yields

Unit
Feeds SR kerosene 0.995
Hydrogen 0.005
Total 1
Product Kerosene 0.97
Loss 0.03
Total 1

DHU Diesel Hydrotreater Unit Yields 1 Yields 2 Yields 3 Yields 4

Feeds SR gasoil 0.992
VHT gasoil 0.99
FCC gasoil (LCO) 0.988
DC gasoil 0.985
Hydrogen 0.008 0.01 0.012 0.015
Total 1 1 1 1
Product Htd gasoil 0.94 0.94 0.94 0.94
s
Loss 0.06 0.06 0.06 0.06
Total 1 1 1 1

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Component features and quality specifications for diesel blending are:

DBU Diesel Blender Htd Htd gasoil VHC gasoil Diesel

Unit kerosen requirement
e
min max
Sulphur content 1 6 35 10
(ppm)
Cetane Index 41 56 54 52

Component features and quality specifications for the blending of heating oil are:

HBU Heating oil Htd gasoil SR VHT Heating oil

Blender Unit gasoil gasoil requirement
min max
Sulphur content 6 4500 40 500 2000
(ppm)
Cetane Index 56 51 40 48
VHT gasoil content 0 0 1 0.18

The CGC - Chemical Gasoil Collector is the accumulator of petrochemical gasoil.

Fuel oil blending

Component features and quality specifications for fuel oil blending:

FBU Fuel oil Blender Pyrolitic FCC Unconverte Fuel oil

Unit oil residue d oil requirement
Componen min max
t
Sulphur content (%) 0.26 0.05 0.25 0.1 0.2
Density (g/cm3) 0.95 1.05 0.92 1

Bitumen production
The bitumen blower unit blows the vacuum residue to reach a higher softening point in order to obtain a
valuable component of road, industrial or modified bitumen products.
Yield structure (1=100%):

BBU Bitumen Blower Unit Yields

Feed Vacuum residue 1
Total 1
Product Blowed bitumen 0.95
Loss 0.05
Total 1

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Petrochemical production line
The petrochemical production line produces poly-olefins such as polyethylene and polypropylene. The 3
units in the line are the Steam Cracker Unit, the Polyethylene Unit and the Polypropylene Unit. The Steam
Cracker Unit is in feedstock connection with the other units of the refinery: C3, C4, petrochemical gasoil
and petrochemical naphtha. This unit converts the petroleum product with steam and catalysts into
monomers (ethylene and propylene) at high temperature. Part of its product output is pyronaphtha (part
of the gasoline pool) the other is pyrolitic oil (a fuel oil blending component). Monomers are converted
into polymers by polymerization units (PPU, PEU).
Yield structure (1=100%):

SCU Steam Cracker Unit Yields 1 Yields 2 Yields 3 Yields 4

Feeds C3 1
C4 1
Petrochemical naphtha 1
Petrochemical gasoil 1
Total 1 1 1 1
Product Hydrogen 0.005 0.005 0.003 0
s
Ethylene 0.45 0.37 0.36 0.27
Propylene 0.18 0.2 0.18 0.15
Pyronaphtha 0.09 0.12 0.22 0.23
Pyrolitic oil 0.03 0.04 0.07 0.23
Loss 0.245 0.265 0.167 0.12
Total 1 1 1 1

PEU Polyethylene Unit Yields

Feed Ethylene 1
Total 1
Product Polyethylene 0.95
Loss 0.05
Total 1

PPU Polypropylene Unit Yields

Feed Propylene 1
Total 1
Product Polypropylene 0.96
Loss 0.04
Total 1

IMPORTANT NOTE: This manual is just a short summary containing the most relevant information
about the Simulation Game. It is advisable to use your experiences and practical to continuously check
the FAQ on the website. If anything is not clear, please ask the facilitators during the “live questions &
answers times (Q&A)” via e-mail.

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