SEPTEMBER 9, 2013

INTERNSHIP REPORT
INFRASTRUCTURE & CONSTRUCTION DEPARTMENT,
PAKISTAN STATE OIL COMPANY LTD (PSO), KARACHI

MUHAMMAD WAQAS
DEPARTMENT OF MECHANICAL ENGINEERING
COLLEGE OF ELECTRICAL & MECHANICAL ENGINEERING (EME), NUST

Contents
Pakistan State Oil Company Limited: ............................................................................................................ 2
Marketing & Distribution: ......................................................................................................................... 2
Acquisition of Products: ............................................................................................................................ 2
Storage of Products:.................................................................................................................................. 2
Lubes Manufacturing & Sales: .................................................................................................................. 2
Future Plans of PSO:...................................................................................................................................... 3
Establishment of Refinery in Khyber Pakhtunkhwa:................................................................................. 3
Oil Infrastructure Project at Hub, Baluchistan: ......................................................................................... 3
Diversification into Coal Business: ............................................................................................................ 3
Corporate Social Pump CSP:................................................................................................................... 4
Retail Construction & Infrastructure Department: ....................................................................................... 4
Working:.................................................................................................................................................... 4
Projects & Tasks At PSO: ............................................................................................................................... 6
Rehabilitation of Tanker Discharge Line (TDL) At PSO KTA....................................................................... 6
Bulk Oil Installation At Faisalabad Depot .................................................................................................. 9
Installation of Metering System at KTA .................................................................................................. 11
Installation of Foam Water Monitors at KTB/KTC/ZOT .......................................................................... 13
Study of NFPA 30 Standard ..................................................................................................................... 14

Pakistan State Oil Company Limited:

Pakistan State Oil (PSO), is Pakistans largest Oil marketing company, and is currently engaged
in the marketing and distribution of various POL products including Motor Gasoline (Mogas),
High Speed Diesel (HSD), Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG, Petrochemicals
and Lubricants. In addition to these products, we also import other products based on their
demand patterns.
A brief overview of each of PSOs business facts is presented below:

Marketing & Distribution:

PSO possesses the largest distribution network in the country comprising of 3,689 outlets out of
which 3,500 outlets serve the Retail sector and 189 outlets serve our bulk customers. Out of the
total of 3,689 outlets, 1,691 Retail and 167 Consumer Business outlets have been upgraded
with the most up-to-date facilities as per the visualization of the New Vision Retail Program.
PSO also operates 31 company-owned and company-operated (Co-op) sites serving the retail
sector. In addition to retail customers more than 2,000 industrial units, business houses, power
plants and airlines are being fueled by PSO.

Acquisition of Products:
The automotive sector is the main consumer of Motor Gasoline (Mogas) and High Speed Diesel
(HSD) whereas Furnace Oil (FO) is marked for power plant usage.
To meet the supply deficit of the country, PSO imports Mogas, HSD, JP 1 and FO as and when
required.

Storage of Products:
PSO possesses the largest storage capacity in the country. The companys infrastructure
stretches from Karachi to Gilgit. With 9 installations and 23 depots located across the country
PSOs storage capacity of approximately a million metric tons represents 74% of the total
storage capacity owned by all the oil marketing companies.

Lubes Manufacturing & Sales:

PSO is steadily progressing in the field of lubricants. With state-of-the-art Lubricants
Manufacturing Terminal (LMT) located in Korangi Industrial Area, Karachi we are catering to a
number of sectors including automotive, Hi-street and industrial consumers through the

provision of sectors including automotive, Hi-street and industrial consumers through the
provision of products.

Future Plans of PSO:

Establishment of Refinery in Khyber Pakhtunkhwa:
An important step in PSO's efforts to secure the national energy supply chain, the Company
plans to establish a state-of-the-art (EURO IV) refinery with a capacity of 40,000 barrels per day
in Khyber Pakhtunkhwa.
By establishing this refinery, PSO will be able to diversify its business offerings, improve
availability of POL products in the country, reduce supply lines and transport costs for the
northern region as well as help save substantial foreign exchange savings for the national
exchequer. This project will also help drive economic growth in the region by offering job
opportunities for both skilled and unskilled labor as well as increase foreign investment in the
area.

Oil Infrastructure Project at Hub, Baluchistan:

With an eye towards enhancing operational efficiency, PSO is working to establish an oil
infrastructure project in Hub, with the collaboration of an international oil conglomerate.
This facility will help increase the domestic storage capacity by 10 to 14 days as well as ease
congestion at existing ports by providing a new POL product entry point through the
construction of a deep sea mooring facility for large vessels at this location. This facility will also
be connected via pipelines to PSOs existing terminal outside Karachi resulting in freight cost
reduction.

Diversification into Coal Business:

As the nations leading public sector Company, PSO is striving to expand into new fields and
projects on an on-going basis. As part of these efforts, the Company plans to expand into the
coal mining and power generation sectors.

Corporate Social Pump CSP:

Being a public sector company, PSO has always worked to distribute the fruits of its labor
amongst the citizens of Pakistan. As part of these efforts, the Company is working to establish
Corporate Social Pumps (CSPs) in under-developed parts of the country under its CSR umbrella.

Retail Construction & Infrastructure Department:

As the name indicates this department looks after the construction and infrastructure of
Pakistan state oil. Rehabilitation of pumps, compressor, dispenser, pipe lines and construction
of new retail outlets of Pakistan state oil throughout the country. This department mostly
comprises of engineers working hard to give the best possible facilities not only to the
customers but all over Pakistan. The department of operations give necessary work to the retail
construction and infrastructure department with approved budget ,the engineers after
inspecting the site and looking at the scope of work recommend the pre contract cost
estimate to the operations department which make necessary changes in the budget and
forward it to the P & S department, after the approval from higher authorities necessary
requirements are done such as tender notice, technical bid and commercial.

Working:
The working procedure of the department is as given listed below:
The Infrastructure & Construction Department is the backbone of PSO as it takes care of all the
construction matters including the construction of installations, Fuel Depots and other
infrastructure necessary for it. There is a procedure followed by the IsC Dept. which is as
follows:
In order to initiate a project, the first step is to receive an Appropriation Requisition (AR). It is
basically used to generate the Scope of the Project. Then the Bill of Quantities (BOQ) is
prepared and with it a Pre-Contract Cost Estimate (PCCE) is also prepared.
After all this, a Tender is published and bidding takes place. The tender opens on the date
assigned, and then the Technical Evaluation of the bids is done.
With this Technical Evaluation, a comparative statement is given. With this statement, work
order is issued and the Execution of Work is done.

Finally the Work Completion takes place and the engineers inspect the entire project. They fill a
Measurement Book so as to ensure the work is done properly and to keep record of everything
with them.
The Final Bill is then paid to the contractor, of which 10% Security Deposit is kept. This is to
ensure that no failure occurs after the commencement of the project. The security deposit is
released within a period of one year.

Projects & Tasks at PSO:

Brief details of the projects and tasks assigned during the internship period are listed below:

Rehabilitation of Tanker Discharge Line (TDL) At PSO KTA

Project Details:
Cutting ,removal and transportation of existing above ground/underground pipeline and pipe
fittings etc from site within the PSO terminal and shifting and placing pipes & fittings in position
above ground/underground by welding and screwing.
Task:
To assist PSO Engineers at KTA during rehabilitation of Tanker Discharge Line.
Project Official:

Mr. Khalid Khenchi (Sr. Engg Isc)

Mr. Hassan Abbas (Sr. Engg Isc)

Contractor:
Al Prince Engineers (Pvt) Ltd
Aspects:
Inner Diameter of Tanker Discharge Line = 20
Length to be replaced = 17 meter
Requirements:
Requirement
150# Flanges
90O Elbow
Stud Bolts
17 meter 20 Dia Pipeline

Nos
2
2
As per Requirement
1

Pre Project Working:

Product shipment details and dates were evaluated with the Port staff and they were informed
to stop the product discharge from the port until the replacement is completed. Pigging was
done a day prior to the initiation of rehabilitation to assure that there is no product in the
discharge line. Port staff was informed to provide necessary fire safety protection. The site was
then handed to the contractor.
Project Execution:
Day 1:
Unbolting of Flanges was carried out by proper lubrication. As the site was critical because of
the adjacent pipelines of petroleum products minimum use of hot work was assured by the
contractor. After unbolting the existing pipeline was cut with the help of cold cutter to easily
transport it..Existing pieces of pipeline were transported to PSO KTA and handed over to the
site officials. Later new pieces were brought to the site. Safety was assured to avoid any
mishap.
Day 2:
New pieces of pipeline were fixed with the help of crane. The whole pipeline was cut into three
pieces. Firstly both the corner pieces were fixed by bolting their flanged ends. And then the
middle piece was fixed with the help of crane. Necessary surface grinding was done to fix the
piece and then supported by temporary welding bold cliets at both the ends. Finally the
beveled ends were welded.
Day 3:
Necessary inspection arrangements were managed by the contractor. Dye Penetrate Test (DPT)
was performed at the welded ends to inspect the cracks in the welds. Leakage defects were
inspected by hydro testing.

Post Project Working:

To remove the contaminants (if any) Pigging was done and the pipeline was then handed over
to the operations department.

Sketch of Replaced Pipeline :

Flang
e

Weld

Flange

Bulk Oil Installation At Faisalabad Depot

Project Details:
To meet the customer energy demands and to cope up with the shortfall of petrochemical
products PSO has initiated a project of setting a Depot at Faisalabad. This project would
increase the storage capacity of PSO.
Task:
To understand the drawings of fire water and product pipelines of Faisalabad Depot.
Project Officials:

Mr.Salahuddin Kiani (Manager Isc)

Mr.Mustafa Ali (Sr. Engg Isc)

Consultants:
Petrochem Engineering Services
Aspects:
Horizontal Tanks
Vertical Tank

7
1

Loading Bays

Decanting Bays

PMG
HSD
4 for HSD/PMG
1 for PMG
2 for HSD
1 for SKO/LDO
3 for HSD
3 for PMG
1 for PMG/HOBC
1 for PMG/HOBC

In future PSO intends to install four horizontal tanks, two for SKO one for LDO and one for
HOBC, and one vertical, for HSD, to increase its Depot capacity.

Project Details:
Drawings were evaluated with Petrochem consultants to finalize the most feasible layout of the
depot. According to API standards Infrastructure Department was unable to manage the
minimum spacing between its two vertical tanks. To cope up with this issue input of Health and
Safety Department was evaluated and it was decided to provide a foam water supply between
the vertical tanks to meet the safety requirements.

Installed Features:
For Fire Water Pipeline:
Fire Water Hydrant
Fire Water Hydrant with Pumper connection
Fire Water Monitors
Foam Skid
Fire Pumps

22
2
6
1
3 (2 Motor Operated)

For Product Pipeline:

Pumps (At Decanting Bays)
Pumps (At Pump House)

8
9

Project Status:
Project is almost 80% completed. Four Horizontal and one vertical tank has been installed.Civil
work (for Admin building, roads, garden etc) is under process.The Depot will be functional in
approximately three months.

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Installation of Metering System at KTA

Overview:
Metering Systems at Kemari Terminal A is to be installed at the loading gantry for PMG Supply.
Task:
To assist the PSO officials in their meeting with contractor to finalize the design of metering
system.
Project Officials:

Mr.Shahood Ali Asif (Sr.Executive Engg )

Mr.Syed Hassan Abbas (Sr.Engg)

Contractor:
M/s Aftab Technology Limited

Scope:

Cutting, removal and shifting of existing pipelines

Supply and fixing of pipeline
Installation of valves ,strainers and other accessories.
Surface Preparation and painting works at piping.
Fabrication of pipe supports and related civil works.
Hydro testing of replaced piping portions

Aspects:

Installation of three metering systems at KTA for PMG product

Total of 12 gate valves are available (4 for each)
Design should have by pass system to allow easily replacement of metering system
Total 18 flanges are available for each metering system.
Pipes should be sand blasted and should have three coats of epoxy

11

Meeting of Engineers of Infrastructure Department and M/s Aftab was held at the KTA in the
presence of Terminal Executives to finalize the design of the metering system to be installed.
Present issues at the loading bays were informed by the Terminal executives previous designs
were altered to overcome the present issues.

Final Design:

From Product Pipeline

To Loading Arm

Metering System

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Installation of Foam Water Monitors at KTB/KTC/ZOT

Task:
To study the aspects of Foam Water Monitors installed at various PSO Terminals.
Project Official:
Mr.Syed Hassan Abbas
PSO PR Requirements:
Construction Material
Water flow
Water inlet
Rotation
Vertical Movement
Feed Pressure
Test Pressure
Finish
Throw Range

Stainless Steel
3000 liters/min
3 dia with 150# Flanges
360 degrees
80 degrees upwards and 30 degrees downward
10 bar
20 bar
Painted with two coats of epoxy
80-100 feet (For foam making)
100-150 feet (for straight jet)

Installed Foam Water Monitors:

Foam water monitors installed at theses terminals are of Model # SKUM FJM-80S ANSI#50 has
following features:

Material: Stainless Steel

Bearings/Nozzle: Bronze
Water Capacity upto 3700 liters/min
Maximum Working Pressure: 16 bar
Horizontal Rotation: 360 degrees
Vertical Rotation: -45 to +90 degrees
Inlet Connection Water: 3 Dia
Painted with 2 coats of Epoxy

13

Study of NFPA 30 Standard

Task:
To study nfpa 30 standard and to find out the aspects of storage tanks of Class I,Class II and
Class III.
Project Official:
Mr.Mustafa Ali (Sr.Engg Isc)
Classes of Products:
Class - I:
Products which lie in this class are flammable products and their flash point is below 37.8 oC
such as Ethanol.
Class II:
Class II products are combustible liquids having flash point above 60oC and below
93oC.Examples are Diesel and Kerosene.
Class III:
These products are also combustible with flash point above 93oC such as Bio Diesel.
Aboveground Storage Tanks:
Minimum Tank Spacing:
Tanks storing class-I ,class-II and class-III shall be located in accordance with this table:
Class I or class II Liquids
Tanks not over 45m (150 ft) in Diameter
1/6 X sum of adjacent tanks Diameter
Tanks larger than 45m (150ft) in Diameter
1/4 X sum of adjacent tanks Diameter

Class III Liquids

1/6 X sum of adjacent tanks Diameter

1/6 X sum of adjacent tanks diameter

*Minimum distance shall not be less than 5 ft.

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Distance from Public Ways:

Tanks storing Class I, Class- II and Class III liquids and operating at some pressures shall be in
according to the following distances:

Type of Tank
Operating Gauge Pressure of 17kPa:
Floating roof
Vertical with weak roof to shell seam
Operating Pressure Greater than 17kPa:
Any type

Distance from Nearest Public Way

1/6 X diameter of tank

1/6 X diameter of tank
Shall not be less than 25 ft

15

CONCLUSION:
During the stay on internship at PSO HOUSE found that it is a well equipped organization which
trying to its best as per requirement of a underdevelopment country in making the country to
be a developed one with a mission
To excel in delivering value to customers as an innovative and dynamic energy company that
gets to the future first.
The entire organization works as a team with brave and courageous mood and provides Highly
ethical, safe environment friendly and socially responsible business practices.

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