PETROLEUUM Petroleum (from Latin petra rock and oleum oil), crude oil, sometimes colloquially called black

ck gold, is a thick, dark brown or greenish flammable liquid, which exists in the upper strata of some areas of the Earth's crust. It consists of a complex mixture of various hydrocarbons, largely of the alkane series, but may vary much in appearance, composition, and purity. Petroleum is also the raw material for many chemical products, including solvents, fertilizers, pesticides, and plastics.

PETROLEUUM HISTORY The first oil wells were drilled in China in the 4th century or earlier. The oil was burned to evaporate brine and produce salt. By the 10th century, extensive bamboo pipelines connected oil wells with salt springs. The modern history of oil began in 1853, with the discovery of the process of oil distillation. Crude oil was distilled into kerosene by Ignacy Lukasiewicz, a Polish Scientist. The first "rock oil" mine was created inRobrka, near Krosno in southern Poland in the following year and the first refinery (actually a distillery) was built in Ulaszowice, also by Lukasiewicz.

A FEW HISTORICAL MILESTONES IN PETROLEUM

4TH CENTURY --OIL DRILLED IN CHINA AND BURNED TO EVAPORATE BRINE TO PRODUCE SALT
10TH CENTURY--TRANSPORTATION OF OIL THROUGH BAMBOO PIELINES

1853----------OIL DISTILLED BY POLISH SCIENTIST IGNANCY LUKASIEWICZ AND IN 1854 FIRST REFINERY WAS SET UP BY MR LUKASIEWICZ
1859--- ------------OIL DISCOVERED BY COL DRAKE IN PENSYLVANIA, USA

1866-----------------OIL FOUND BY MR GOODENOUGH IN UPPER ASSAM

1889-----------------OIL PRODUCTION STARTED UNDER ASSAM RAILWAY & TRADING CORPORATION 1901-----------------500 BARRELS PER DAY REFINERY SET UP IN DIGBOI, ASSAM 2005------ABOUT 2135 BILLION BBLS/DAY REFINING CAPACITY (17 REFINERIES) IN INDIA ABOUT 81995 BILLION BBLS/DAY REFINING CAPACITY (739 REFINERIES) IN WORLD

What Is Crude Oil?

Crude Oil is a liquid mixture of thousands of organic chemicals found underground. It is the result of organic matter decaying over thousands of years; hence the name fossil fuel
Crude oil is found all over the world and varies tremendously in its density, aromatics, sulfur, and metals content Crude oil is found all over the world and varies tremendously in its density, aromatics, sulfur, and metals content

So, How Do You Make Good Stuff Out Of Crude?

Separate crude into fractions Convert low octane components to higher octane components Convert the very heavy stuff to heavy oils Convert heavy oils to gasoline,diesel,jet fuel Remove sulfur/nitrogen through reaction Blend intermediate streams together to meet product specifications

Some observations w.r.t. Crude Reserve and consumption Crude oil is a finite resource. It is estimated that there is a total of 2,390 billion barrels (380 km) of crude oil on Earth. Estimates of undiscovered reserves range widely from 275 to 1,469 billion barrels (44 to 234 km). Between 1859 and 1968, 200 billion barrels (31 km) of oil were used, and since then oil production has stabilized at 22 billion barrels (3.5 km) per year. In 2004, as prices reach record highs, world consumption is on track to 30 billion barrels per year. It is believed that about 77% of crude oil has already been discovered, and 30% of it has been used so far. Current estimates are that oil reserves will become scarce by the 2050s, although this date has been pushed forward many times as new oil wells are discovered.

Refineries
Refineries are very complicated chemical processing plants that use reactions and separations to convert crude oil into gasoline and other valuable products
The purpose of an oil refinery is to transform relatively low value crude oil into high value products as efficiently, profitably and environmentally sound a way as possible

Distillation
The initial separation takes place in the distillation Column
The Crude is first heated in a furnace to a temperature of 360 oC

It enters the column and vapours and liquids separate The light vapours rise to the top whilst the heavier liquids fall to the bottom

Distillation (Atmospheric and Vacuum) This is the first stage in the refining for separating crude oil components at atmospheric pressure by heating, and subsequent condensing, of the fractions (unfinished petroleum products) by cooling. Distillation under reduced pressure (less than atmospheric) i.e. Vacuum Distillation lowers the boiling temperature of the liquid being distilled permitting the production of distillates at lower temperature than would be necessary in atmospheric distillation, thus avoiding coke formation. The Jamnagar Refinery has a combined Crude Distillation Unit / Vacuum Distillation Unit (CDU / VDU) to separate the crude oil into primarily fractions of LPG, Naphtha, Kerosene, Gasoil, Vacuum Gas Oil and Vacuum Residue. The combined CDU/VDU maximizes energy integration to minimize the energy required for primary separation.

Gases +Tops + Naphtha

Kerosene

Crude

Light Gasoil Heavy Gasoil

Furnace

Long Residue

Distillation Column

Diagram of Refinery Units

Crude Oil
Shorter Chain Molecules

Gas treatment
H2 S H2 S

Sulphur Recovery

Sulphur

Desulphurisation

Platformer

Petrol Kerosine

Gas Oil

Diesel
Vacuum Gas Oil
Long Residue

Hyrdrocracker

Distillation
Long Chain Molecules

High Vacuum Separation

Waxy Distillate

Bitumen

Butane De-asphalting

Hydrogen

Hydrogen Manufacturing Unit

De-asphalted oil DAO

Roads

Asphalt

Fuel oil

Approx 7 Barrels to the Tonne

7%

FUEL AND LOSS

30%

MOGAS

14% 32%

JET/ KERO GASOILS

17%

FUEL OILS

A Typical Crude Barrel

METHANOL NATURAL GAS METHANE STEAM REFORMING SYNTHESIS GAS HYDROGEN ETHYLENE OXIDE

FORMALDEHYDE

ACETIC ACID

ETHYLENE GLYCOL METHYLMETHACRYLATE POLY VINYL CHLORIDE LINEAR ALPHA OLEFIN

ETHYLENE DICHLORIDE POLYETHYLENE

ETHANE

GAS CRACKER

ETHYLENE

POLY PROPYLENE C3/C4 (LPG) PROPYLENE ACRYLONITRILE CRU DE OIL NAPHTHA CRACKER CUMENE PHENOL

POLYACRYLONITRILE CARBON FIBRE

BUTANE BUTYLENE

MALEIC ANHYDRIDE

NAPHTHA BUTADIENE

POLYISOBUTYLENE

BIS-PHENOL A

GASOLINE

POLYBUTADIENE

POLYCARBONATE

CATALYTIC REFORMING
BENZENE ETHYL BENZENE CYCLO HEXANE STYRENE CAPROLACTUM DETERGENT NYLON 6 O-XYLENE HYDROCRACKING P-XYLENE PHTHALIC ANHYDRIDE

KEROSENE

POLY STYRENE

DIESEL

FCC

TOLUENE

BENZOIC ACID

ABS RUBBER

GAS OIL

STYRENE BUTADIE NE RUBBER ACRYLO NITRILE BUTADIE NE RUBBER

POLY ETHYLENE TEREPHTHALATE

RESIDUE

OVERVIEW OF REFINERY & PETROCHEMICAL PRODUCTS

Major Refinery Products

LPG (Propane/Butane) GASOLINE (hundreds of blends) JET FUELS DIESEL FUELS HEATING OILS GREASES ASPHALTS COKE (not the kind you drink )

Top petroleum-producing countries

Source: Energy Statistics from the U.S. Government (Ordered by amount (barrels per day produced in 2004):

Saudi Arabia (OPEC) Russia United States Iran (OPEC) Mexico China Norway Canada Venezuela (OPEC) United Arab Emirates (OPEC) Kuwait (OPEC) Nigeria (OPEC) United Kingdom Iraq

Ordered by amount exported in 2003:

Saudi Arabia (OPEC) Russia Norway Iran (OPEC) United Arab Emirates (OPEC) Venezuela (OPEC) Kuwait (OPEC) Nigeria (OPEC) Mexico Algeria (OPEC) Libya (OPEC)
Note that the USA consumes almost all of its own production. Total world production/consumption (as of 2005) is approximately 84 million barrels per day.

Crude processed in India are: 1. Indigenous crude oil sources a. Bombay high and satellite fields b. North Gujarat and Ankaleshwar crude c. Assam crudes d. KG Basin-Rava crude e. Cauvery Basin crude All the above crudes are low sulphur =<0.5% wt, low metal content, poor potential to yield LOBS and bitumen, and some are waxy in character.

2. Imported crudes are sourced mostly from: a. Gulf Region b. Nigeria c. Malaysia d. Australia The above crudes are specially selected for production of Bitumen/LOBS/ATF, beside fuel products. These crudes are having varying range of sulphur from low of high.

OIL PRICE DURING 1860 TO 2000

OIL & NATURAL GAS RESERVE

Country/Region OIL As on Jan.1 2005 Billion barrels 729.341 88.3 16.255 100.595 215.291 21.891 178.8 36.246 5.371 100.784 1277.702 Natural Gas As on Jan.1 2005 Trillion Cuft. % 2522.125 41.76 1964.16 32.52 182.487 250.52 260.494 189.046 56.6 383.913 30.14 476.509 6040.208 3.02 4.15 4.31 3.13 0.94 6.36 0.50 7.89 100.00

Middle east East Europe & USSR Western Europe Central & South America North America (USA) (Canada) Asea & Oceania (India) Africa WORLD

% 57.08 6.91 1.27 7.87 16.85 1.71 13.99 2.84 0.42 7.89 100.00

REFINING CAPACITY
Country/Region Number of Crude (All capacity Refineries Capacity Billion bbls/day) Middle east 46 6319 East Europe & 88 10128 USSR Western Europe 112 15072 Central & 70 6634 South America North America 176 20425 (USA) 149 16757 Asea & 202 20205 Oceania (India) 17 2135 Africa 45 3213 WORLD 739 81995 Catalytic Thermal Reforming Cracking Cracking 372 824 2236 1321 6683 5813 2720 167 195 14352 483 516 1597 452 2392 2254 432 93 78 5949 599 1396 2220 407 4215 3581 2019 42 387 11243

REFINING CAPACITY IN INDIA (MMTPA) : AS ON 1.04.2000

FIGS IN MT 1 INSTALLED CAPICITY AS OF DATE PUBLIC JOINT PRIVATE TOTAL SECTOR SECTOR SECTOR 0.65 6.90 5.50 7.50 1.00 4.20 12.50 3.75 7.50 6.00 7.50 6.50 2.35 0.50 2.35 27.00 9.69 72.35 12.04 27.00 0.65 6.90 5.50 7.50 1.00 4.20 12.50 3.75 7.50 6.00 7.50 6.50 2.35 0.50 2.35 27.00 9.69 111.39

1. 2. 3. 4. 5. 6. 7. 8. 9. 11 12 13 14 15 16 17 18

IOC-DIGBOI BPCL-BOMBAY HPCL-BOMBAY HPCL-VIZAG IOC-GAUHATI IOC-BARAUNI IOC-KOYALI IOC-HALDIA IOC-MATHURA IOC-PANIPAT CRL-COCHIN CPCL-CHENNAI BRPL-ASSAM MRL-NARIMANAM NRL - NUMALIGARH RPL - JAMNAGAR MRPL-MANGALORE SUB TOTAL

2. A)

ADDITIONS IN REFINING CAPACITY PROJECTS APPROVED BY THE GOVT: REFINERY EXPANSIONS IOC-MATHURA 0.50 MRPL-MANGALORE 6.90 IOC-KOYALI 3.00 SUB TOTAL 10.40 NEW REFINERIES CENTRAL INDIA (JVC-BPC) SUB TOTAL 0.00 PROJECTS UNDER CONSIDERATION (EXPANSION) IOC-PANIPAT (PSU) 3.00 IOC-BARAUNI 2.70 CRL-COCHIN 3.00 MRL-MADRAS 3.00 SUB TOTAL 11.70 NET CAPACITY ADDITION (A+B) 22.10 PROPOSED REFINERIES EAST COAST (JVC-IOC/PVT.PARTY) WEST COAST (JVC-HPC) UP REFINERY (JVC-BPC/SHELL) PUNJAB REFINERY SUB TOTAL Expected Commissioning 0.50 2000-01 12.90 2000-01 3.00 2000-01 16.40 6.00 2001-02 6.00 3.00 2.70 3.00 3.00 11.70 34.10 2002-03 1999-02 2002-03 2002-03

6.00 6.00 6.00 6.00

B)

C) 3.

12.00

12.00 6.00 7.00 6.00 31.00

12.00 6.00 7.00 6.00 31.00

X PLAN 2002-03 X PLAN X PLAN

4.

5.

PROPOSED PRIVATE SECTOR REFINERIES: ESSAR ( UNDER CONSTRUCTION ) ASHOK LEYLAND (GOTCO) SOROS NIPPON DENRO SUB TOTAL PROPOSED PRIVATE SECTOR REFINERIES (EOUs) INTERNATIONAL PETROLEUM BLACK GOLD PETRO ENERGY PRODUCTS JINDAL FERRO TIDCO ABAN LLOYD MOPLACE UDYOG SUB TOTAL TOTAL (1+2+3+4+5) 94.45 55.04

9.00 2.00 6.00 9.00 26.00 5.00 2.50 4.80 6.00 2.00 3.00 3.00 26.30 79.30

9.00 X PLAN 2.00 X PLAN 6.00 X PLAN 9.00 X PLAN 26.00 LOI issued on 5.00 14.6.92 2.50 10.6.93 4.80 22.6.94 (FIPB) 6.00 22.9.94 (CCFI) 2.00 17.9.94 (CCFI) 3.00 12.1.95 (FFCI) 3.00 14.3.96 26.30 228.79

6.

Oil Refining Companies in India (As on 31st March 2001)

Name of the Oil company Indian Oil

Principal Shareholders

Location of refineries

Capacity (million tons/year) 12.5 7.5 6.0 4.2 3.8 1.0 0.7 27.0 7.5 5.5

Age of refineries (years) 36 19 3 37 27 39 100 2 44 47

Government of India (82%)

Gujarat Mathura Panipat Barauni Haldia Guwahati Digboi

Reliance Petroleum Hindustan Petroleum

Reliance Industries, its subsidiaries and associates (65.8%) Government of India (51%)

Jamnagar Vizag Mahul

Mangalore Refineries and Petrochemicals Limited Kochi Refineries

Chennai Petroleum

Hindustan Petroleum (37%)/Aditya Birla Group (37%)

Bharat Petroleum (55%) Indian Oil Corporation (52%)

Mangalore
Kochi Chennai Narimanam

9.6
7.5 6.5 0.5 6.9 2.4 3.0 112.1

5
35 32 7 46 22 2

Bharat Petroleum Bongaigaon Refineries Numaligarh Refineries Total

Government of India (66%) Indian Oil Corporation (75%) Bharat Petroleum (51%)

Mahul Bongaigaon Numaligarh

Source: Annual Reports & Industry Data

Oil production & consumption in India (Million tons)

1997

1998

1999

2000

2001

Crude oil production

32.9

33.9

32.7

32

32.5

Crude oil consumption

62.9

65.2

68.5

86

103.5

Deficit (Met by Imports)

(33.9)

(34.5)

(39.8)

(54.0)

(71.0)

Growth & Development of Refinerieries in India

1866 1889 1893 1899 Oil discovery at Nahorpung, Assam. Oil Production started at Digboi, Assam. First Refinery started at Margharita, Assam. Assam Oil Company was formed. Digboi Refinery was commissioned supplanting the earlier refinery at Margarita.

1901

Year
1947-1957

Incident
Setting up of three coastal refineries by Multi National Oil Companies (MNCs) 2 at Mumbai (Esso & Burmah Shell) 1 at Vizag (Caltex) The MNCs were already marketing petroleum products in India by then.

1954

Indian Oil exploration with the help of Russian Geologists. Formation of Oil and Natural Gas Commission for exploration and production of crude oil and gas.

1956

Year

Incident
Indian Refineries Ltd (IRL) was formed in the public sector to install refineries and pipelines in India. Oil India Ltd (OIL) was formed as a joint venture company between Government of India and Burmah Oil Co.

1958

1959

1962

Indian Oil Company formed for marketing petroleum products. The first refinery in the public sector commissioned at Guwahati (0.75 MMTPA) under IRL. Indian Oil Blending Ltd. -A JV between Indian Oil Co. and Mobil Petroleum Co. Inc. was formed for manufacture of lube oils and greases. IRL was dissolved and merged with Indian Oil Co. Ltd, to form Indian Oil Corporation Ltd. (IOCL)

1963

1964

Year
1974

Incident
IOBL became part of IOCL. Assets of erstwhile Assam Oil Co. were taken over and vested in IOC as Assam Oil Division (AOD). Panipat Refinery of IOC commissioned. Reliance Petroleum Refinery at Jamnagar, commissioned. Numaligarh refinery commisssioned.

1981 1998 1999 2000

Future Outlook (as per 2025 vision document)

Year 2002-03 Incident Total Refining Capacity MMTPA 135

Barauni Expansion Haldia Expansion HPCL, Mumbai Expansion CPCL, Nagapatinam RPL Expansion

Future Outlook (as per 2025 vision document)

Year 2003-04 Koyali Expansion Panipat Expansion BPCL Expansion CPCL Expansion BRPL Expansion Paradip Essar Oil Expansion Nagarjuna Oil Incident Total Refining Capacity MMTPA 170

Future Outlook (as per 2025 vision document)

Year Total Refining Capacity MMTPA 2004-05 176 Kochi Refinery Expansion 2005-06 Essar Oil Expansion RPL Expansion Bhatinda 2006-07 BRPL Expansion Bina 221 214 Incident

Strategies for Indian Refineries

Residue upgradation technologies for heavy crudes Technologies for producing lighter fuels. Process technologies to improve quality with respect to : performance parameters eco-friendly products Value addition to refinery streams Increased emphasis on Process Control/ Automation Evolutionary/innovative technological changes expected rather than evolutionary ones. Refineries to be integrated, compact and flexible with respect to crude/ product mix.

Future Technological Challenges

Meeting higher demand of petroleum products (viz. distillates) Meeting higher standards of product qualities. More emphasis on environment Value addition to refineries Technologies to improve margins Zero emission refinery

DISTILLATION RANGE IMPROVEMENT

New residue conversion technologies like FCC, Hydrocracker, RDS-RFCC Advanced controls and optimisation Advanced catalysts Continuous simulation of plants/product mix through computer models Prudent selection of technologies and proper integration of secondary units/ plants.

REFINING CAPACITY IN INDIA AS IN THE YEAR 2002

No 1 2 3 4 5 6 7 8 9

Refineries Indian Oil Corporation Limited, Digboi Indian Oil Corporation Limited, Guwahati Indian Oil Corporation Limited, Barauni

MMTPA 0.65 1.00 3.30 (6.0) 13.5 (18) 3.75 (7.5) 7.50 7.50 5.50 8.90

Year of Commissioning 1901 1962 1964

Indian Oil Corporation Limited, Koyali

Indian Oil Corporation Limited, Haldia Indian Oil Corporation Limited, Mathura Hindustan Petroleum Corporation Limited, Vizag Hindustan Petroleum Corporation Limited, Mumbai Bharat Petroleum Corporation Limited, Mumbai

1965
1974 1982 1975 1954 1955

No 10

Refineries

MMTPA 7.50 (10.5)

Year of Commissioning

Cochin Refineries Limited, Cochin

1966

11
Chennai Petroleum Corporation Limited, Chennia 12 13 Madras Refineries Limited (CBR), Nagapatinam 14 Mangalore Refineries & Petrochemicals Ltd., Mangalore Indian Oil Corporation Limited, Panipat Reliance Petroleum Limited, Jamnagar Numaligarh Refineries Ltd., Numaligarh Bongaigaon Refineries Limited, Bongaigaon

6.50 (9.5)
1969 2.35 0.50 1994 6.00 (9.0) 1995 6.00 1998 1999 2000 1972

15

16
17

27.00
3.00

112.45 Total Capacity

ADVANCES IN PETROLEUM REFINING

Various issues faced by the refining industry have led to many major developments in this area. The challenges are: Crude oil is becoming heavier and higher in sulphur and metal content. Reduced growth in fuel oil demand. Rapid growth in light/middle distillates. Stringent environmental regulation for cleaner products/processes and demand for quality products. Declining refining margins Improved engine design/automobiles need better quality fuel and lubricating oils.

1. 2. 3. 4.

5. 6.

Advances in refining technology can be broadly divided into the following categories.

Improved and integrated refining Production of better quality products Processing of residues/heavier ends Management of power and utilitues. Value addition through optimisation of refinery configuration Petrochemicals production Better quality and increased lube oil production Power generation from heavier petroleum products. Specialty chemicals production.

Improvements are taking place in many areas. Some of them are listed below
Distillation Fluid Catalytic Cracking (FCC), Resid Fluid Catalytic cracking (RFCC). Delayed coking Needle coke manufacturing, Visbreaker-Soaker Technology. Hydro processing Hydro treatment of various streams including residues. Hydro cracking Super Oil Cracking (SOC) of heavy distillates to get 90% conversion to distillates.

Improvements are taking place in many areas. Some of them are listed below
Mobile Distillate De-Waxing (MDDW) to upgrade heavy fuel oil to high quality distillate and gas yield of 93-95%. Isomerisation Catalytic Reforming Alkylation Etherification Power generation by petroleum residue and coke by using Gasification Combined Cycle (GCC) technology. In this process along with power, steam and H2 can be produced which are required in the refinery. More and more use of information technology. Modeling simulation

Refinery integration and value addition strategies

Small an Medium Refineries

Integration with Specialty Chemical Production Units for Value addition Anode Grade Coke Needle Coke Production Microcrystalline Wax Production Alpha-Olefins Production

Larger Refineries Petrochemicals and Specialty Products

Integration of Refining and Power Generation Integration of Fuels and Lube Production

Thank you

END