A Maintenance View. Presenter David Kay

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1 A Maintenance View Presenter David Kay

2

3 Location: Marsden Point, NZ Deep-water port Low seismic hazard History Proximity Auckland market Refinery to Auckland Pipeline (RAP) Oil refining operations: Hydro cracker Bias toward diesel & jet 33M barrels distillate outturn 130,000 BPD Historical alignment with Shell 1962: Construction starts 1964: Plant commissioned 1987: Major expansion 2005: Future Fuels Project 2009: Point Forward Project 2015: CCR Project The New Venture Te Mahi Hou

4 The refinery is built in a unique and spectacular environment

5 Presentation Title Here

6 Shellfish Safe to Eat

7 Who we are? We are a NZX listed company: 56% of shares owned by international oil companies (BP, Chevron, Mobil). 17% of shares held by a local fuel company (Z Energy). 27% held by other investors. We are a vital part of New Zealand s infrastructure: New Zealand s only oil refinery. Toll refiner of crude oil charges a processing fee based on gross margin generated. Owns the multi-product pipeline to Auckland (Approx. 49% of production), remainder of market dispersed (coastal 46%, road 5%). 74.8% ownership of Independent Petroleum Laboratory Ltd 330 employees, supplemented by maintenance contractors. Refining NZ Governance is through the Board of Directors (shareholder representation from both the oil companies and via independent appointment), the chairman is independent With our customers : We have a processing agreement with each of the four oil company customers doing business with us.

8 What we do? Our aim New Zealand s supplier of choice for oil products. We are competing with refineries across Asia Pacific. We seek to provide between 50 and 80% of New Zealand s fuel by being the most competitive source of supply in terms of: Reliability Cost Environmental footprint We are in New Zealand for New Zealand and proudly Kiwi.

9 Our Operation Crude oil and other feedstock is bought by our customers and shipped to our refinery / 40 / 3 / 2% from Middle East/Far East/Indigenous/Others We refine these feedstock's and supply: - almost all of the country's jet fuel - nearly 80% of the diesel (gasoil) - around half of all the petrol (mogas) - between 75 and 85% of bitumen for roading - all the fuel oil sold in NZ for ships - sulphur for fertilizer and carbon dioxide for soft drinks

10 History in Brief History Company Formed : 1962 Initial Operations : 1965 Expansion commissioned (B & C block and RAP) : 1986 Oil Industry Deregulation : 1989 Processing Agreement revised : 1995 Future Fuels (clean fuels; HSU/HDS3/BRU) : 2005 Point Forward (expansion; CDU) : 2009 Shell sells downstream - welcomed Z Energy Ltd : 2010 Te Mahi Hau The New Venture project approved : 2012 What is Te Mahi Hou About? Building a Continuous Catalyst Regeneration (CCR) unit NZ$400 million budget with completion December 2015 :

11 Control System 2013 History 1965 InitialOperations 1986 Expansion commissioned (B & C block and RAP) TDC 2000 to 3000 HMI upgrade 2005 Future Fuels (clean fuels; HSU/HDS3/BRU) 2009 Point Forward (expansion; CDU) 2015 Te Mahi Hau The New Venture project Major challenges Need to support legacy and modern equipment. Mixer of vendor products. Obsolescence of TDC 2000 control layer equipment Obsolesces of Pepperl + Fuchs safety logic system.

12 P.A.C.O The Plant Automation, (Process) Control and Optimisation plan (PACO) identifies and prioritises issues concerning the present and future applications and integration of enabling systems and field equipment. Purpose of the plan is to provide a long term vision of the direction RefiningNZ wishes to follow with these systems, field equipment and applications. Aim: The PACO plan aims to improve return to the shareholders by providing a clear programme for the development and implementation of strategies based on currently known standards and technologies, on emerging ones and on the technical constraints of the existing systems' connectivity, functionality and life expectancy. The PACO committee consists of two teams: Steering Team: Engineering Services Manager, Refining Manager and Head of Process Control. Against the background of Business Plans they will provide overall guidance to PACO Technical Team: Process Control team member, IT Manager, Senior I&E Engineer, Specialist Engineer Instruments and Specialist Engineer DCS

13 Business Systems and Applications Plant Operating Windows Hydrocarbon Logistics PACO Area PACO Systems PACO Applications ProcessControl Systems Instrument Protective Systems Oil Movements, Storage & Distribution Automation Basic & Enhanced Process Control Advanced Process Control Quality Measuring Instruments Instrument & Electrical Subsystems Electrical Equipment Radio CCTV Field Instrumentation SCADA & Leak Detection / Location Sequence Functions Energy Efficiency Safety Instrumented Functions Plant Optimisation Dynamic Simulation Electrical Network Monitoring and control

14 P.A.C.O Evaluation key elements or criteria listed Elements scored and weighted Final score produced Technical recommendation presented Benefits: Proof of due-diligence Clearly defined process to follow Documentation trail of the decision process Template for future.

15 Into the Future How to get from here (2013) to there, 2025 plus Feed study commissioned Both Control and Safe Guarding systems evaluated Feasibility study System segregation determined I /O count System Cabinets, cables & cross wiring logistics Determine what loops can be migrated on running plant vs. shutdown. Planning to hit key shut down dates

16 Safety First The New Venture Project Approved Honeywell revises support of TDC 2000 Decision made to delay control migration to free up capital for the project.

17 DCS and Safeguarding Migration Project Console Migration Schedule Phase Safeguarding Systems A Block 1 B2 Block 2 C2 Block 2 B1 Block 3 C1 Block 4 Offplots 5 Control Systems A Block 6 B2 Block 7 C2 Block 6 B1 Block 7 C1 Block 8 Offplots 8

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19 Trends in Maintenance Do more with Less Longer Run times between shut downs Shorter shut down windows No total Shut downs More work required to be done on running plant 3 going to 2 level approach for escalations onsite support technical expert Direct access to Specialist required

20 Hardware Triconex Fits Build quality exceptional Very reliable No hardware failures on site, 2 systems (13 years plus) Never been in a functionally degrade state No obsolescence in hardware modules Proven mature hardware design Stable platform in terms of foot print and firmware Attention to detail, physical key locks on i/o model slots. Very simple procedures to replace hardware

21 Triconex Fits Enhanced Diagnostics Monitor Software Package Benefits Software emulates physical LED layout No need to go to remote cabinets or physically enter cabinets All fault reset done via the software interface Easy and clear to diagnose faults Different software package than tri-station thus no security issues.

22 Triconex Fits TriStation Programming Software User Friendly Software Interface Enables fast effective fault finding Stable mature software Had no need to upgrade software to fix bugs (reducing risk) Has all the features we desire.

23 Triconex Fits Emulator Panel TriStation Programming Software Enables Applications to be developed and tested with no physical PLC Can be used by projects in the proof of design phase Enables remote engineers to test and verify code. Enables skill sets to be maintained Reduces the risk of multiple loads to the online controller

24 Triconex Fits Management of change Compare feature RefingNZ Software Change Request process Compare feature ensures Offline Code is exactly the same as Online before starting coding Only the desired changes were implemented TriStation Programming Software

25 Triconex Fits Management of change Audit Trail TriStation Programming Software An audit trail function is provided to document the history of a project and its program version changes. detailed log keeps track of user actions and comments by automatically time stamping critical events within a session and manually logging user comments

26 Engineering services Triconex Fits Invensys Site Services annual Audit System health, both hardware and software check Detailed report showing Recommendation PAN Product Alert Notices relevant to your system TAB Technical Advisory Bulletin relevant to your system Site hardware register and firm ware check Spares Holding check against install base and recommendation Product life cycle report Loading and scan cycle check Invensys Engineering Services Quality of Service Specialists in their disciplines Safety Turbo machinery

27 Triconex Fits Summary Helps meet production goals by maximizing process uptime Maximises profitability with high availability and reliability Significantly reduces risk to the business Helps reduce maintenance costs & total cost of ownership

28 Presentation Title Here

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