HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN

INSPECTION REPORT

REPORT NO: HDIP-OT-INSP/01/2016 INSPECTION DATE: May 19-21, 2016

DATED: May 26, 2016 NAME OF OMC: OilCo Petroleum Private Limited

TYPE OF Progress Report ADDRESS OF 9 KM Shiekhupura-Sargodha

INSPECTION: FACILITY/SITE: Road, Farooqabad, Machike,
Shiekhupura

Ref: Oil & Gas Regulatory Authority Letter No./Dated: OGRA-(Oil)-19-3(82)/2014 Dated: May 2, 2016

PROGRESS REPORT ON STORAGE DEVELOPMENT

HDIP inspection team comprising of Engr. Asim Riaz, Senior Research

Engineer and Engr. Asim Aziz, Senior Research Engineer visited the above
mentioned site to inspect the progress of Oilco Storage Terminal
development at Machike, Shiekhupura. The inspection team listed all noted
observations which are required for the completion of the facility as per
S.R.O 624(1)/2009 and applicable standards.

The site of storage facility/oil terminal was leased out from M/s Saba
power Pvt. Ltd. The civil, mechanical and electrical works already existed in
leased out facility for storage of High speed Diesel (HSD) and
Refined Furnace Oil (RFO). The licensee will be using Tank 01 for HSD
which was previously used for RFO storage and Tank 03 for Superior
Kerosene Oil (SKO) which was used for HSD storage. Tank 02 will continue
to be utilized for RFO storage. Apart from the construction of boundary wall
the licensee/operator has not carried out any major works in M/s Saba
power storage facility. Some major works are required to be carried out as
per plot plan which are mentioned below.
The licensee has provided plot plan duly approved by CIE and DCO
NOCs for the storage facility that already exist for M/s Saba power Pvt. Ltd.
The licensee has applied for NOC from Ministry of Defense and is getting
necessary amendments in NOCs issued by Civil defense and Environment
Protection Agency (EPA).

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Plot plan was approved by Chief Inspector of Explosive (CIE), however
construction of the facility was incomplete as per plot plan. Following
observation of electrical, mechanical and civil works which is required for
the completion of facility were not started at time of inspection.

 Construction of Motor Sprit (MS) above ground storage tank i.e. all
civil, mechanical and electrical works from foundation, ring wall,
shell, bottom to roof structure
 Dike walls for MS storage tank
 Dike wall between HSD and RFO storage tank
 Link Roads for MS storage tank and others as per plot plan
 Pumping Station for MS storage tank
 Control room/panel of the facility
 Pathways for pedestrians along the road
 Canopy over loading/unloading facility
 Loading facility for MS, SKO, HSD and RFO
 Unloading facility for MS and SKO
 Construction of Water tank/storage, accessory pipes, Water
pumping station and new Hydrants at different locations for
firefighting system
 Oily drains, trenches and pits in dike area of HSD and RFO.
 Re-routing/installation of existing/new piping systems and
electrical cables
Following observations were observed w.r.t electrical, mechanical and
civil works in already existing infrastructure of the facility that may be
updated or modified or rectified for completion.
 The wall around one side of the gate of facility need to be
constructed
 Hazardous area classification drawing of the facility was not
prepared. New hydrants may be installed area classification so as
to stop Domino effect. Electrical system should to
installed/upgraded according to the classification.
 The fire extinguishers found in the dike area were expired
 Non-compliance of safety standard of Electrical wiring/equipment
around the dike area i.e. open electric wiring and unsafe insulation

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 of electrical equipment. The electrical system should be in
accordance with NFPA 30, Chapter 7 and S.R.O 624(1)/2009
 Steam tracing lines, steam traps and heater were found on inlet
and outlet pies in HSD Storage tank - TK-01. Since the storage was
utilized for RFO storage by M/s Saba power, the tank should be
modified/upgraded for the storage of HSD like heater should be
removed and steam tracing lines should be blinded
 Vegetation was found on the foundation and dike area of all three
tanks foundation
 Some of the steam pipes, fitting, valves and traps were heavily
corroded and should be replaced
 One separate ‘single breather valve’ were installed on the roof of
each storage tanks which can only save tanks from excess vapor
pressure. In order to save tank from imploding, either ‘double
breather valve’ may be installed or free vent may be provided on the
roof of HSD and RFO above ground storage tank. At time of
inspection, blind flanges were installed on vent of these tanks
 Calibration certificates of Pressure relief valves, Thermal relief
valves, pressure gauges/indicators, breather valves and auto-tank
gauge (radar gauge) were not provided
 The licensee claimed that last out of service inspection date was
2015. However, inspection details/reports were not provided. It is
recommended that Vacuum Box Test of bottom, Oil Chalk test or
DPT of bottom-shell weld joint, Ultrasonic Test of shell plates
mentioning Thickness Measurement Locations and holiday testing
for coating should be carried out on all above ground storage tanks
leased from M/s Saba Power Pvt. Ltd. before commissioning of
facility
Facility Details are attached as Annexure-A, Storage Tanks Detail are
attached as Annexure-B, Percentage wise completion of site as per OGRA
Performa is attached as Annexure-C and Pictures are attached as Annexure-
D. Layout Plan approved by CIE, DCO NOC and lease agreement of land are
attached as reference.
Conclusion:
On basis of physical verification/visual inspection/observations at the time of
inspection, documents provided by the licensee, and OGRA criteria of percentage in
each field of works for completion, HDIP is of the view that M/s Oilco Petroleum
(Pvt.) Ltd has completed only seventy two percent (72%) of overall works.

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
Inspection Team:

Engr. Asim Aziz Engr. Asim Riaz

(Senior Research Engineer) (Senior Research Engineer)

Checked and Countersigned by:

Engr. Ali Muhammad

(Senior Research Engineer)

Disclaimer

HDIP bears no responsibility for findings which could only be ascertained by information
not available to the Inspectors. HDIP offers no warranty and guarantee for correctness of
the data provided by the licensee mentioned in this report. Hence, HDIP shall not be
responsible for any direct or indirect, tangible or intangible damages arising out of the use
of the data and information provided in this report.

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Annexure-A

FACILITY DATA OF OILCO. PVT. LTD

SR. NO FACILITY DATA DESCRIPTION

Oilco Petroleum (Pvt.)

1. Facility’s registered name
Ltd

2. Owner Ahsan Majeed

3. Type of Facility Oil Depot

High speed Diesel

(HSD), Refined
Furnace Oil (RFO),
4. Storage Products
Superior Kerosene Oil
(SKO), Motor Spirit
(MS)
12710m3 for HSD,
12710m3 for RFO, 238
5. Capacity m3 for SKO, MS
Storage tank not
constructed yet.
101 Kanal, 15 Marla
6. Plant Area (Acres)
and 128 sq feet.
9 KM Shiekhupura-
Sargodha Road,
7. Plant Location
Farooqabad, Machike,
Shiekhupura

8. Date of Inspection 19-21 May, 2016

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Annexure-B

ABOVE GROUND STORAGE TANK 01 DETAILS TABLE

GENERAL
Tank Number: T-01
Tank Type: Above Ground - Vertical
Design Standard: AP1-650
As Built Drawings Available: Yes
Construction Date: 1998
Designed by Zishan Engineering Pvt. Ltd.
Manufacturer SEFEC Engineering Pvt. Ltd.
Client: Babcock & Wilcox International Inc.

Nameplate Present: Yes

Last In-Service Inspection Date: 2015
Last Out-of-Service Inspection Date: 2015
DIMENSION
Diameter: 34 meters
Height: 14 meters
Maximum Filling Height: 12.5 meters
3
Nominal Capacity [ m ]: 12,710
ROOF
Roof Type Fixed
Construction of Plates: Welded Butt/Lap

Roof Slope: 1/16”

Roof vent was closed with blind flange
Roof Vents: Single Breather Valve which should be opened when in service

Internal Floating Roof? No

Internal Coated? No
SHELL
Main Material: A-36
Construction: Welded Butt/Lap

Height/Thickness Course 1 2408 mm / 19 mm

Data is taken from the name-plate and
Height/Thickness Course 2 2408 mm / 16 mm construction/as built drawing. Thickness
measurement locations (TMLs) of last in
Height/Thickness Course 3 2400 mm / 13 mm service and out of service inspection were
Height/Thickness Course 4 2440 mm / 10 mm not provided by the licensee.
Height/Thickness Course 5 2400 mm / 8 mm
Height/Thickness Course 6 1830 mm / 6 mm
Wind Stiffener Installed? Wind girder was not installed outside of the
No shell structure.

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
Top Curb Angle Dimension: 80 mm / 80 mm / 3/8”
Internal Coated? No
BOTTOM
Main Material A-36
Installed Date: 1998
Nominal Thickness: 10 mm
Construction: Welded Lap
Cone: Up
Sump Location: East side near shell Location of sump was not accessible. Open
pit/trench was not found in dike area.

Annular Plates Installed: Yes

Annular Plates Nominal Thickness: 10 mm
Internal Coated? No
FOUNDATION
Type: Ring Foundation Concrete
Foundation Height: 3 meter
Construction: RCC
Anchored? No
Leak Detection Present? No
OPERATIONAL
Product Stored: HSD
Product Gravity: 0.87
Storage Temperature: Ambient
Pressure / Vacuum Range: Atmospheric
Product Inflow Rate: 550 [m3/hr]
Product Outflow Rate: 136 [m3/hr]
CATHODIC PROTECTION
Cathodic Protection Installed? No
Type: N/A
Last Inspection Date: N/A
COATED
Last External Coating Application Date: 2009
Last Internal Coating Application Date: N/A

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 ABOVE GROUND STORAGE TANK 02 DETAILS TABLE

GENERAL
Tank Number: T-02
Tank Type: Above Ground- Vertical
Design Standard: AP1-650
As Built Drawings Available: Yes
Construction Date: 1998
Designed by Zishan Engineering Pvt. Ltd.
Manufacturer SEFEC Engineering Pvt. Ltd.
Client: Babcock & Wilcox International Inc.

Nameplate Present: Yes

Last In-Service Inspection Date: 2012
Last Out-of-Service Inspection Date: 2015
DIMENSION
Diameter: 34 Meter
Height: 14 meter
Maximum Filling Height: 12.5 meter
3
Nominal Capacity [ m ]: 12,710
ROOF
Roof Type Fixed
Construction of Plates: Welded Butt/Lap

Roof Slop: 1/16”

Roof vent was closed with blind flange
Roof Vents: Single Breather Valve which should be opened when in service

Internal Floating Roof? No

Internal Coated? No
SHELL
Main Material: A-36
Construction: Welded Butt/Lap

Height/Thickness Course 1 2440 mm / 19 mm

Data is taken from the name-plate and
Height/Thickness Course 2 2400 mm / 16 mm construction/as built drawing. Thickness
measurement locations (TMLs) of last in
Height/Thickness Course 3 2400 mm / 13 mm service and out of service inspection were
Height/Thickness Course 4 2440 mm / 10 mm not provided by the licensee.
Height/Thickness Course 5 2405 mm / 8 mm
Height/Thickness Course 6 1835 mm / 6 mm
Wind Stiffener Installed? Wind girder was not installed outside of the
No shell structure.

Top Curb Angle Dimension: 80 mm / 80 mm / 3/8”

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
Internal Coated? No
BOTTOM
Main Material A-36
Installed Date: 1998
Nominal Thickness: 10 mm
Construction: Welded Lap
Cone: Up
Sump Location: East side near shell Location of sump was not accessible. Open
pit/trench was not found in dike area

Annular Plates Installed: Yes

Annular Plates Nominal Thickness: 10 mm
Internal Coated? No
FOUNDATION
Type: Ring Foundation Concrete
Foundation Height: 3 meter
Construction: RCC
Anchored? No
Leak Detection Present? No
OPERATIONAL
Product Stored: RFO
Product Gravity: 0.97
Storage Temperature: Ambient
Pressure / Vacuum Rang: Atmospheric
Product Inflow Rate: 220 [m3/hr]
Product Outflow Rate: 100 [m3/hr]
CATHODIC PROTECTION
Cathodic Protection Installed? No
Type: N/A
Last Inspection Date: N/A
COATED
Last External Coating Application Date: 2009
Last Internal Coating Application Date: N/A

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 ABOVE GROUND STORAGE TANK 03 DETAILS TABLE

GENERAL
Tank Number: T-03
Tank Type: Above Ground - Vertical
Design Standard: AP1-650
As Built Drawings Available: Yes
Construction Date: 1998
Designed by Zishan Engineering Pvt. Ltd.
Manufacturer SEFEC Engineering Pvt. Ltd.
Client: Babcock & Wilcox International Inc.

Nameplate Present: Yes

Last In-Service Inspection Date: 2014
Last Out-of-Service Inspection Date: 2015
DIMENSION
Diameter: 7.5 Meter
Height: 5.4 meter
Maximum Filling Height: 5.0 meter
Nominal Capacity: 238[ m3]
ROOF
Roof Type Fixed
Construction of Plates: Welded
Roof Slop: 1/16”
Roof Vents: Single Breather Valve Roof vent was installed with a vent pipe

Internal Floating Roof? No

Internal Coated? No
SHELL
Main Material: A-36
Construction: Welded Butt/Lapp

Height/Thickness Course 1 1830 mm / 6 mm Data is taken from the name-plate and

construction/as built drawing. Thickness
measurement locations (TMLs) of last in
Height/Thickness Course 2 1830 mm / 6 mm service and out of service inspection were
Height/Thickness Course 3 1690 mm / 6 mm not provided by the licensee.

Wind Stiffener Installed? Wind girder was not installed outside of the
No shell structure.

Top Curb Angle Dimension: 50 mm / 50 mm / 1/4”

Internal Coated? No
BOTTOM

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
Main Material A-36
Installed Date: 1998
Nominal Thickness: 10 mm
Construction: Welded Lap
Cone: Up
Sump Location: South side near shell
Annular Plates Installed: No
Annular Plates Nominal Thickness: N/A
Internal Coated? No
FOUNDATION
Type: Ring Foundation Concrete
Foundation Height: 2 meter
Construction: RCC
Anchored? No
Leak Detection Present? No
OPERATIONAL
Product Stored: SKO
Product Gravity: 0.7978
Storage Temperature: Ambient
Pressure / Vacuum Rang: Atmospheric
Product Inflow Rate: 36 [m3/hr]
Product Outflow Rate: 53 [m3/hr]
CATHODIC PROTECTION
Cathodic Protection Installed? No
Type: N/A
Last Inspection Date: N/A
COATED
Last External Coating Application Date: 2009
Last Internal Coating Application Date: N/A

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Annexure-C

PERCENTAGE COMPLETION AT SITE

Progress Sheet For Storage Development

Name of Company: OILCO Petroleum (Pvt.) Ltd.

Status of Works Comments

Sr Description
Province Region/Location
No.

Completion
Maximum% age
%age

Only approved
CIE layout Plan
and DCO NOC
submitted.
1. NOCs Status 15 10
EPA, Ministry
of Defense
NOC not
provided
Lease
agreement of
9 KM Shiekhupura- Procurement of Land with M/s
2. 25 20
Sargodha Road, Resources/land Saba Power
Punjab (Pvt.) Ltd is
Farooqabad, Machike,
Shiekhupura attached.
Details are
3. Civil Works 15 12 provided in the
report.
Details are
4. Electrical Works 20 13 provided in the
Report
Details are
5. Mechanical Works 25 17 provided in the
Report

Total Progress 100 72

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Annexure- E
OVERVIEW OF OILCO PETROLEUM (PVT). LTD

Oilco
Petroleum
(Pvt.) Ltd
Depot

SKO
Tank

Unloading RFO
via
Railway Tank
Track

Main
Entrance
for Oilco
Pvt. Ltd
Site for Loading/
Unloading for
Oil Tankers
Trucks
HSD
Tank

Site for MS
Storage tank (not
constructed)
M/s Saba
Power Pvt.
Ltd

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Main
Entrance
Gate

HSD Tank
and RFO
Tank

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Proposed site
for Loading /
Unloading
Facility

Railway
Track for
Unloading

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Specification plate
of Storage Tank
for SKO. M/s
Saba Power Pvt.
Ltd previously
used for HSD

Vegetation at
Storage Tank
03- (SKO
Storage)

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Vegetation at
foundation of
Storage Tank
03- (MS
Storage)

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Storage Tank
02
specification
plate for
RFO

specification
plate of
Storage Tank
01for HSD
storage. M/s
Saba Pvt. Ltd
previously
used it for
RFO Storage

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Vegetation
in Dike
area

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Dike wall shall be
constructed to separate
HSD and RFO dike area

Tank 01
for HSD

Tank 03
for SKO

Tank 02
Boundary
for RFO
wall
between
M/s Oilco
and M/s
Saba power

Site for Tank

04 for MS
Storage

Page 20 of 25

18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Monkey
ladder at
RFO tank

Disconnected
pipes of RFO
tank

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Radar/Auto-
tank gauge on
roof of RFO
storage

Dip on
Storage
tank for
RFO

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Single
Breather
Valve on
HSD Tank

Blind
Flange on
vent

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Tank 03
for SKO
storage

Step ladder
for both
RFO and
HSD
storage
tanks

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk
 Site of Water
tank and
water
pumping
system

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18, H-9, Islamabad. TELEFAX No. 9257470 PH: 9257821-24, E-mail: hdipcng@apollo.net.pk