Process Design Report: Oil Refinery, Stakeholder Perspectives

This report provides a comprehensive overview of oil refinery process design, addressing various aspects from crude oil processing to final product analysis. The report begins by outlining the initial processes of distillation, cracking, and reforming, explaining how crude oil is separated into different fractions and converted into valuable products like gasoline and jet fuel. It then delves into the environmental impact assessment of oil companies, emphasizing the assessment of petroleum products like gasoline, diesel, and petrochemical feedstocks, and the importance of regulations and safety measures. Economic assessments, including cost-benefit analysis, are also discussed, alongside an examination of export routes and their associated risks. The report includes an executive summary of key issues, such as power shortages and export limitations, and analyzes CAPEX, energy consumption, and stakeholder perspectives. The report further explores the challenges of hydrogen sulphide risks, water shortages, and operational risks, along with an overview of stakeholder theory and its application in business.

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PROCESS DESIGN
By Name
PROCESS DESIGN
Course
Instructor
Institution
Location
Date

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A list of final oil and refinery products
In the first process of oil refinery, crude oil is heated and directed into a distillation column.
Inside the distillation column as the crude oil’s temperature rises, it splits itself into various
components known as fractions (1). These fractions are then separately captured. Every single
fraction matches to a different type of oil product, subject on the temperature at which the
fraction boils off the mixture of the crude oil. This first process is known as distillation.
Cracking and reforming are the second and third processes respectively in processing oil and
refinery products. The densest fractions, consisting the gas oils and the residual oil, have a lower
value compared with those of the lighter fractions. Therefore, refiners pass through a cracking
process to disrupt molecules in the fractions. The process produces products of greater value
from the thicker fractions. Cracking is usually used in producing gasoline and jet fuel from the
thick gas oils, reforming process is usually used in low value light fractions, for the second time,
to produce additional gasoline. The process of gasoline includes chemical reactions under
pressure to convert the hydrocarbon chain structure.
In summary, these are the products of oil refining;
 Fuel gas
 Feedstock
 Ethane
 Propane
 Butane (2)
 Condensate oil
 Cracker feedstock

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Environmental impact assessment of the oil company
Environment impact assessment is a tool used in the assessment and valuation of the probability
of the environmental impacts of an anticipated development project while captivating and taking
into account the sociocultural, economic and human welfare impacts and effects. The key
purpose in the prediction of environmental assessment is to help in the project planning and
design. Through the use of EIA both environmental and economic assistances can be achieved
Oil Company contains petroleum products that may affects the environment by bringing in
negative impacts on the environment. The petroleum products comprise of the gasoline: diesel
fuel and heating oil, jet fuel, petrochemical feedstock, waxes, lubricating oils, and asphalt.
Environmental impact assessment of the oil company
This is the process in which the impact of the petroleum products on the environment from oil
companies are evaluated and assessed depending on the environmental, socio-cultural and
economic factors(3).
Petroleum products are used for car and trucks fueling and can also be used in the manufacturing
of plastics. petroleum products have negative effect and impacts on the environment.
Law and regulations, production, oil transportation and enforcement of safety and environment
aids in the reduction of the impacts and effects of the products on the environment.

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Economic assessment.
Economic assessment is the process of calculating and analyzing the possible and potential costs
and allocates values and standards on the expected benefits of the planned project, programme,
regulatory initiative or strategy. This aids in the comprehension and understanding the trade off
in various substitutes and selection of the suitable project.
The impacts of different and various products that are exposed on the environment have different
proportions cannot be quantified and valued in terms of financial valuation.
Economic assessment of the petroleum product to the environment work on the valuation and
calculation uses two basic distinctive measures of cost-effective analysis and cost benefit
analysis. Perceptions of social and economic values on risks and well-being as well impacts the
ways where various stakeholders evaluates the possible effects of a policy.
Export Routes
In the measurement and assessment of NC, various export routes works through the means of
stringent guidelines and standards in meeting the needs of WB.The diagram shows the NC.

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Figure 1.An image showing Processing Facility Onshore
Executive summary on key issues established after criteria application process:
 Control for personal effective and operational requirements can’t be depended on from the
markets in the locality as there is there is shortfall or shortages of power in MBL. Depending
on limited and confined grid risk to the project. This reason enhance recovery and
management. This facilitates achievement of consistent creation and generation of specific
power through the whole PSA process.
 Use of methane is not practicable and suitable in the creation and generation of adequate
power to facilitate operational process of PSA.
 Generated energy through the above process cannot be dependent on to support and supply
power to the local grid as the clarity of situations are not well labelled and titled out.

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 The produced gas ought not to be used as a feed stock that are present at the Ethylene Plant
locally situated locally is not assured.
 Exportation of crude oil to china is confined and restricted to about 150mbd.This does not
reach the estimated and projected volume and quantity of exports required by NC. Hence the
use of the NC route exposes the projects to risks and menace making this rout unsuitable and
undesirable route in regards to the project.
 The diagram below explains more of shrinking and condensing process of the crude oil
production
Figure 2. Crude and condensate forecast
Production of LNG plant is unpractical because of inadequate gas volumes.

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Total Estimated CAPEX
The CAPEX (onshore facilities only) was estimated for all the concepts using 25% contingency
applicable for select phase. The costs were ranked to come up with the front running options:
Concept "C" Cost per item
MM USD
Equipment
required
Total cost
MM USD
Crude Stabilization Train 25 2 50
LP motor 25 2 50
HP motor 25 2 50
Gas drying unit 9 2 18
Instrument Air Utiliities 2 1 2
Cooling water Utilities 4 1 4
Power Generation Turbine 25 4 100
Crude oil pump station 12 1 12
Effluent Treatment Plant 120 1 120
Flare system (Emergency only) 12 2 24
Pipeline 0.1 1000 100
0
Subtotal 530
Contingecy 25%
Total 663
Figure 3. CAPEX ranking per concept Figure 4 Concept “C” CAPEX breakdown
The “Red Bar” concepts in Figure 3 contain elements either beyond agreed project scope or
dependent on elements other than technical. Therefore, to eliminate potential bias “red bar”
concepts were either discarded or discounted in ranking. In summary: Concept “C” is the lowest
CAPEX concept.
Another point to keep in mind over the analysis of the capex is that this was only for machine/
equipment cost and did not have any construction or other costs associated with it. It is also only
the onshore processing part of the production process, it needs to be kept in mind when looking
at these returns that there is still a significant investment to be made in the offshore processing.
Energy consumption statement
Use of energy in an oil refinery changes over time because of variations in the type of the
processed crude, the mix of the product and the refinery complexity, and also the content of

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sulfur of the final products. Besides, operational factor such as capacity utilization, practices of
maintenance, and also age of equipment affect the use of energy in a refinery every year. There
should be strong financial incentive in oil and gas companies to save energy, due to the large
stake of energy in the general cost of facilities operation(4).
main negotiating points with the other two parties and uncertainties
 Ownership. Asking the proportion of the company’s shares.
 Financial commitment. What impact of you’d bring into the company. The amount of
capital or finance needed to put in place to improve the situation of the two companies.
 Time commitment. Evaluating time, you’d want to put in your company
 Cash compensation. Checking the mode of compensation, you’d want to have in the
company.
 Expenses. Checking the expenses that that might occur. Weather they are current to
recurrent expenses.
Summarization of the stakeholders’ perspective approach.
Stakeholder approach of the stakeholders’ perspective is the exercise that directors, executes,
articulate and implement the procedures which fulfil shareholders' wants to safeguard long
lasting success. It’s more of a way of managing and running a business in regards and
dependence based on personal value a manner that's aligned to your own personal values.

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Fig 1 :Stalkholders approach
Stakeholder theory is a tool or an approach that is established base on the theory that businesses
or firms success are measured through the delivery value of the most or majority of shareholders.
This means that business measurements are not based on profit.
The stallholders of a business partnerships include:
Employees: Most of the employees requires and needs fair and good treatment and compensation
as the employees are the major assets in a company or organizations. In various instances where

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there’s is poor management and underpayment of the employees, there is always development of
bad attitude of employees towards the managers (5).
Suppliers: Dealers and suppliers of any company is entitled to have a deserved respect Long
lasting success of every business or firm id dependent with the dealer’s acknowledgement and
understating
Manufacturers: Worldwide economy sometimes dictates the production and manufacturing
entities. Sometimes parts or even whole products are manufactured in other countries, far away
from
Environmentalists: People living near the firm or manufacturing entities has the right to be a
guaranteed the safety and protected environment, systems of water, resources of power and other
factors that have potential impacts or effects on people and the industry.
Governmental bodies: The governmental bodies have an important and vital role in ensuring safe
and secure production and manufacturing to facilitate the ecosystem around everyone is kept and
protected
Neighbors: These stakeholders will be shareholders for a long duration being along with the new
condo growth and development. Neighbors ought to have a feeling of belonging and life quality
is maintained or improved - but not reduced because of the project.
Housing activists: This are the associates or organizations that is entailed to check out and bring
out policies that are to be followed when having any development of any projects in the country.

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Fig 2 :diagram showing stallholders of a business
Application of Stakeholder theory in business-This is the struggling and coming with a suitable
gradient of the stallholders through the conversation process with the colleagues, friends and
families.
Analyze your activities-Check at your plans - the purposes, aims and projects which are used to
run your business.
Understand your gaps-Check out on how the personal plans and strategy maps works in contrast
to the stakeholder’s plans and policies.
The design approach of the onshore facilities is encompassed into the following concepts:
 Main and major unit operations
 The products
 The expert routes

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Difficulties/risks will arise in trying to align with other stakeholders
Hydrogen sulphide risks in the first year
Hydrogen sulphide gas is toxic and poisonous. The gas is capable of poisoning various parts on
the body system. The most affected parts are the respiratory system and the nervous system.
Furthermore, the gas is highly flammable. The sense of smell can also be destroyed by this gas.
Therefore, industrial practice should recognize the risks associated with hydrogen sulphide and
take pre-cautionary measures.
Early water shortage risks
Energy production feedstocks and fuels need a lot of water input. Biofuel feedstocks like
agricultural remains, corn and switchgrass require a lot of water for growth and also conversion
to bioethanol. Water is also used in petroleum feedstocks like crude oil and oil sands in large
volumes for drilling, extraction and conversion of these products into petroleum products. In
most cases, therefore, production of crude oil depends largely on water.
Due to high competing water usage in the industry, there is high risks of water shortages.
Therefore, management should consider putting measures of water recycling and implementing
modification processes by applying current commercial technologies. A process improved for
water use should be impressed for cellulosic ethanol facilities. For oil refinery, using produced
water re-injection should be encouraged.
Operation risks

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There are various possible operation risks which can be attached to oil and Refineries Company.
The most noticeable ones are the safety risks, environmental risks and economic risks.
Fire risk is the common possible one in safety risks. Releasing dangerous HF material has
highest probability of fire breakout with dire consequences.
Preventing oil spills and leakages should be considered in ensuring the risk in controlled and
managed properly.
Export risks
Short term export risks in oil and gas Refineries Company include fiscal policy. This is as a
result of volatile and unpredictable prices of refined oil which are largely beyond the control of
the company.
There are also possible risks on budget balances especially in increasing surpluses of the budget.
This case may be looked upon as a favorable outcome on fiscal policy, especially when
significant deficits of budget was witnessed in the previous year, but on the real sense the
situation has its own challenges and risks. For instance, when oil prices falls sharply in the oil-
export countries due to factors like domestic political pressures, recurring equity considerations
and international consideration measures, a great risk of losses due to surplus budget is likely to
occur.
Sand risks
Crude oil produced from tar sands is usually very dirty with the highest environmental
destruction risks. With increased tar sands moving through pipelines and railcars before it gets

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processed at the refineries, it is evidently clear that communities and people in the local area of
tar sand activities face considerable health and safety risks.
In addition to the above sand risks, sand can damage downhole, facilities of surface production
and subsea equipment. This increases the risk of catastrophic failure, and in turn increasing the
costs of production.
Well rate risks
Exploring drilling for oil and gas can have so many risks which include the risks of dry hole or
well, or failing to find enough commercial quantities of hydrocarbons in the wells. Drilling costs,
completion and operation of wells’ costs have uncertainty margins. Operations of drilling may
also be unsuccessful due to factors like sudden drilling conditions that were not expected,
pressure in formation, failure of equipment, accidents and shortages or delays of drilling
equipment.
Various management styles of the companies.
Certain partnerships may engage on parental vibrancy: A task-oriented person is precisely and is
in on intent to get things done. Another relevant and priorities of the company values and culture
over an efficient machine.
Ways in which manager leads the company is a key factor in the team of the company that is
entertained achievements. The management can influence the output of their staff and the general
yield structural proficiency is a result of each department.
The styles of management between the companies should have common features on
characteristics, values, morals, visions and missions. All the partners of the companies should

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bring about common interest on the table to avoid the risks of disagreements and different levels
vibrancy.
Management styles has no common or universal standards or approach. The utmost suitable is
determine by the structure of the company and the team, their knowledge and prospects and the
functional issues of longtime and short time growth and development. Manager’s uses structural
and logistic styles.
Personal habits and customs
The guidelines and systems in the maintenance of a job lifespan of the company is stability and
cannot apply for in the formation and establishment of members. There’s varieties of vices and
susceptibilities that endangers the business partnership.
The personal customs of a person in a company may influence the uprightness and essentiality of
what is to be brought on the linked companies.
Personal habits between the investors of the companies may affects and influence the workability
or the work life of the company worker in a company. The influence may be negatively or
positively impacted on the workers. Bad habits and customs of individuals and personnel may
bring about attitude hence bringing conflicts in the company.
Financial problems and equity.
The nature of partnerships may have problems on the nature of the partnership. The co-founder
might have the willingness to place up the finances and requires technologies and innovation in
the business.

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The equity financing price that ought to be paid for it’s possible as this influence need and urge
to control the company. This may affect the relations between the companies. Shareholdings of a
company and veering to work with other workers in the company could bring about conflict
when there is difference in the management style and methods on how the business is to be
runned.
References
Barker, G. B., 2017. The Engineer's Guide to Plant Layout and Piping Design for the Oil and
Gas Industries. Chicago, Elsevier Science.
Coker, K., 2014. Ludwig's Applied Process Design for Chemical and Petrochemical Plants.
Texas, 3rd.
Coker, K., 2018. Petroleum Refining Design and Applications Handbook. London, John Wiley &
Sons.
Sutton, I., 2018. Plant Design and Operations. 2nd ed. London: Elsevier Science.
Williams, N., 2013. Refining of Oils and Fats for Edible Purposes. 1st ed. Paris: Elsevier,.

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