The General Oil Company owns a complex refinery with the following set up: . o o 2 crude Distillation units with individual processing capacity of 15 000 to 30 000 tonnes per day (tpd) Each CDU is able to adjust production yield for each of the product stream in the following spread: FG 0.1% LPG make 0.4 - 2% Naphtha 10 - 20% Kerosene 15 - 25% Gasoil 15-35% Waxy Distillate 5 - 15% Long Residue 20-35% Cost of operation is 2$/t 2 Naphtha-minus Hydrotreaters with capacity of 2500 to 5500tpd each. 2 Platformers with 2500 to 5000tpd capacity each. Platformer conversion of Naphtha to Platformate is at 95% with remaining going into LPG. 2 Hydrodesulphuriser units capable of producing up to 5000 to 10000tpd of middle distillates each. 1 Hydrocracker with a rated capacity of 5000tpd (min) at 90% conversion and 9000tpd (max) at 65% conversion with the following product slate: O Modes LPG Naphtha Kerosene Gasoil Hydrowax Low Conversion 3% 7% 25% 30% 35% High Conversion 5% 15% 30% 40% 10% Long Residue Catalytic Cracker with a rated capacity of 6000tpd and the following product slate: 18% Conversion LPG Naphtha 50% Kerosene 5% Gasoil 15% Slurry Bottoms 12% The following crudes are made available for the refinery to process: Crude Arumba Bunga Caolla Dubai Yield(%wt) Gas 0.3 2.1 53.4 35.1 8.4 0.4 0.3 Dubai + 20 0.7393 LPG Naphtha Kerosene Gasoil Waxy distillate Long Residue Cost ($/bbl) Density (kg/L) 1m3 = 6.29bbl 0.1 0.6 8.7 14.5 18.2 7.7 50.2 Dubai - 20 0.9088 0.1 0.7 17.0 24.1 23.6 7.8 26.7 Dubai + 6 0.8207 0.1 0.9 12 19.2 22.4 9 36.4 65 0.8671 Your trading colleagues have given you the following economic values of the products: "Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. The spread approximates the profit margin that an oil refinery can expect to make by "cracking" the long-chain hydrocarbons of crude oil into useful shorter-chain petroleum products." - Wikipedia Product Cracks ($/bbl crude) Mogas 92 - Dubai Naphtha - Dubai Jet/Kero - Dubai Gasoil 10ppm - Dubai HSFO - Dubai Last week 8.50 -1.10 10.00 12.69 -8.66 This week 10.45 0.10 11.23 13.98 -5.45 1A. Evaluate whether it is feasible to run each of the 4 crudes individually in the refinery. Explain why. (2marks) 1B. For the crudes that are feasible, provide the total profit that each crude can yield. (2marks) 10. Give the most economic blend of 2 crudes (to the nearest 10%) from the list of 4 crudes available to you. Please explain how did you arrive at the most economic choice of crude (3marks) The General Oil Company owns a complex refinery with the following set up: . o o 2 crude Distillation units with individual processing capacity of 15 000 to 30 000 tonnes per day (tpd) Each CDU is able to adjust production yield for each of the product stream in the following spread: FG 0.1% LPG make 0.4 - 2% Naphtha 10 - 20% Kerosene 15 - 25% Gasoil 15-35% Waxy Distillate 5 - 15% Long Residue 20-35% Cost of operation is 2$/t 2 Naphtha-minus Hydrotreaters with capacity of 2500 to 5500tpd each. 2 Platformers with 2500 to 5000tpd capacity each. Platformer conversion of Naphtha to Platformate is at 95% with remaining going into LPG. 2 Hydrodesulphuriser units capable of producing up to 5000 to 10000tpd of middle distillates each. 1 Hydrocracker with a rated capacity of 5000tpd (min) at 90% conversion and 9000tpd (max) at 65% conversion with the following product slate: O Modes LPG Naphtha Kerosene Gasoil Hydrowax Low Conversion 3% 7% 25% 30% 35% High Conversion 5% 15% 30% 40% 10% Long Residue Catalytic Cracker with a rated capacity of 6000tpd and the following product slate: 18% Conversion LPG Naphtha 50% Kerosene 5% Gasoil 15% Slurry Bottoms 12% The following crudes are made available for the refinery to process: Crude Arumba Bunga Caolla Dubai Yield(%wt) Gas 0.3 2.1 53.4 35.1 8.4 0.4 0.3 Dubai + 20 0.7393 LPG Naphtha Kerosene Gasoil Waxy distillate Long Residue Cost ($/bbl) Density (kg/L) 1m3 = 6.29bbl 0.1 0.6 8.7 14.5 18.2 7.7 50.2 Dubai - 20 0.9088 0.1 0.7 17.0 24.1 23.6 7.8 26.7 Dubai + 6 0.8207 0.1 0.9 12 19.2 22.4 9 36.4 65 0.8671 Your trading colleagues have given you the following economic values of the products: "Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. The spread approximates the profit margin that an oil refinery can expect to make by "cracking" the long-chain hydrocarbons of crude oil into useful shorter-chain petroleum products." - Wikipedia Product Cracks ($/bbl crude) Mogas 92 - Dubai Naphtha - Dubai Jet/Kero - Dubai Gasoil 10ppm - Dubai HSFO - Dubai Last week 8.50 -1.10 10.00 12.69 -8.66 This week 10.45 0.10 11.23 13.98 -5.45 1A. Evaluate whether it is feasible to run each of the 4 crudes individually in the refinery. Explain why. (2marks) 1B. For the crudes that are feasible, provide the total profit that each crude can yield. (2marks) 10. Give the most economic blend of 2 crudes (to the nearest 10%) from the list of 4 crudes available to you. Please explain how did you arrive at the most economic choice of crude (3marks)