Introduction to UOP

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Jim McGehee Development Specialist, Heavy Oils

Crude Oil Quality GroupHouston, 26 May 2006

UOP: An Introduction

Who we areWhat we do

AND…Recent focus in heavy oils

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World’s Largest Process TechnologyLicensing Organization

70 licensed processes30,000+ patents, 90% licensable70 catalystsMolecular sieves adsorbents30 Engineered products

− Packaged process units and systems− Proprietary equipment− Control systems and instrumentation

Engineering, technical and training services

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Who We AreGlobal company with manufacturing sites and offices in 20 countriesApproximately 2,800 highly trained employees

More than 90 years of innovative solutions for the hydrocarbon processing industryMore than $1 billion in revenues annually from over 110 countries

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UOP Sites Around the World

OfficesManufacturing

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Headquarters: Des Plaines, IL USA

UOP’s HistoryFounded in Chicago as Universal Oil Products CompanySold to major oil companiesPlaced in trust to American Chemical SocietyRelaunched as public company Acquired by Signal CorporationSignal merges with Allied CorporationJoint venture between Allied-Signal’s UOP and Union Carbide’s CAPSPurchase of UnoCal Process Technologies LicensingPurchase of Bayer’s zeolite and La Roche’s alumina businessPurchase of Sinco Engineering SSP Technology businessUOP becomes wholly owned subsidiary of Honeywell

1914193319441959197519851988

19951998

20002005

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UOP’s International Client Base

Petroleum RefiningGas ProcessingPetrochemicals

− Aromatics− Olefins− Detergents

Major Manufacturing Industries

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UOP Business ModelComplete Technology Package

Process licenseCatalyst, adsorbent, chemicalsKey mechanical equipmentEngineering servicesAdvanced process controlModular constructionTrainingStart-up assistance and trainingOperating services and inspectionPlanning and consulting studies

Integrated Complex DesignsFuels refineryAromatics complexDetergents complexC3/C4 Olefins complex

ProcessLicenseProcessLicense

On-goingServices,Revamps,

Studies

On-goingServices,Revamps,

Studies

Start-up Services,Training

Start-up Services,Training

ProcessDesign

Engineering

ProcessDesign

Engineering

Catalysts,Adsorbents,Equipment

Catalysts,Adsorbents,Equipment

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UOP Technology Transfer

n Primary mechanisms:– Schedule A design– Key equipment– Turnkey plants

n The Schedule A conveys engineering information and relevant UOP experience

n UOP has an ongoing process for capturing and incorporating experience from previous designs and field operations

EngineeringSchedule AProcess StudiesPost Schedule A Services

Equipment Modular Process UnitsPressure Swing Adsorption UnitsGas Separation UnitsKey Mechanical EquipmentTrays & Tubes

Engineering & Equipment Products

ServicesNew Unit CommissioningCatalyst RegenerationCatalyst and Adsorbent reloadingTroubleshootingTrainingContinuing Services

Technical Service Organization

Field Operating ServicesMaterials and InspectionOperating Technical ServicesContinuing Services

National Medal of TechnologyCitation

“over 85 years of sustained technical leadership and innovation for the worldwide petroleum refining and petrochemical industries, and for

commercialization of

absorbents, catalysts, process plants and process technology that have strengthened America’s global competitiveness and benefited quality of

life throughout the world.”

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Recent focus in heavy Recent focus in heavy oiloil

UOP Technologies In Heavy OilUOP Technologies In Heavy OilJointly licensed with FosterJointly licensed with Foster--Wheeler USA:Wheeler USA:

–– Delayed CokingDelayed Coking–– VisbreakingVisbreaking–– Solvent Solvent DeasphaltingDeasphalting

HydroprocessingHydroprocessing technologies:technologies:–– Residue Residue hydrotreatinghydrotreating–– DeasphaltedDeasphalted Oil Oil hydrocrackinghydrocracking

Fluid Catalytic Cracking technologies:Fluid Catalytic Cracking technologies:–– ResidResid FCCFCC–– Catalytic Crude UpgradingCatalytic Crude Upgrading

Era of unattractive margins for Era of unattractive margins for heavy upgrading has passedheavy upgrading has passed……

Ramping up:Ramping up:Canadian Oil SandsCanadian Oil SandsLatin America (Venezuela, Latin America (Venezuela, Colombia, others)Colombia, others)HeavyHeavy--sour sour crudescrudes in other areas of in other areas of the worldthe world

Major Refining Technologies For Major Refining Technologies For Fuel Oil EliminationFuel Oil Elimination

1. Coking1. Coking2. Solvent 2. Solvent DeasphaltingDeasphalting + Deep + Deep hydroconversionhydroconversion + with Pitch Gasification+ with Pitch Gasification3. Direct 3. Direct HydrocrackingHydrocracking + gasification of + gasification of unconverted residueunconverted residue

Major Refining Technologies For Major Refining Technologies For Fuel Oil EliminationFuel Oil Elimination

Coking: Dominant for many years. Major Coking: Dominant for many years. Major importance (especially in US) but no longer importance (especially in US) but no longer ““the only gamethe only game””

SDA+deepSDA+deep hydroconversionhydroconversion: : emerging in emerging in importanceimportance ; UOP involved in several recent ; UOP involved in several recent projects of this kindprojects of this kind

Direct Direct hydroconversionhydroconversion: : EbbulatedEbbulated bed or bed or slurry processes slurry processes ---- emerging interest with emerging interest with pitch gasification to hydrogen and power. pitch gasification to hydrogen and power. ““Zero residue refineryZero residue refinery””

The Bottom of Barrel Varies Greatly The Bottom of Barrel Varies Greatly By Crude SourceBy Crude Source

““EasyEasy”” (light sweet or medium (light sweet or medium crudescrudes))MediumMedium--Sour Sour crudescrudes (Middle Eastern)(Middle Eastern)Heavy conventional Heavy conventional crudescrudesBitumen/Bitumen/SuperheavySuperheavyOthersOthers

----Vary in Vary in amount amount of 535 C+of 535 C+----Vary in Vary in total contaminantstotal contaminants----Vary in Vary in ““depthdepth”” of contaminantsof contaminants

Assay key to understand conversion Assay key to understand conversion potential of vacuum residuepotential of vacuum residue

VAC SLOP LIGHT DAO HEAVY DAO END CUT RESID WAX

From UOP breakup of a vacuum bottoms from heavy-sour Middle Eastern crude

What lies ahead?What lies ahead?——an opinionan opinion

Persistent margins will encourage better Persistent margins will encourage better direct solutions to 1050 F+ residue direct solutions to 1050 F+ residue upgrading to transportation fuels.upgrading to transportation fuels.Increased understanding of residueIncreased understanding of residue----““molecular approachmolecular approach”” may lead to better may lead to better solutions than traditional thermal approach.solutions than traditional thermal approach.The future of refining:The future of refining:

–– All clean fuelsAll clean fuels–– Zero or near zero residueZero or near zero residue–– Heavier Heavier feedstocksfeedstocks

Thank YouThank You

Q&AQ&A