mrpl ongc

Mangalore Refinery and Petrochemicals Ltd.Mangalore Refinery and Petrochemicals Ltd.

Production Planning

Mangalore Refinery and Petrochemicals Limited

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The Evolution


MRPL – An Introduction Founded as Joint sector refinery by HPCL and A.V. Birla group in

1987

Located at the west coast of Karnataka, Close to Middle East and Far East crude and product markets

Installed capacity 9.69 MMTPA Revised to 11.82 MMTPA• Phase 1 : 4.82(3.69) MMTPA, commissioned in 1996.• Phase II: 7.00(6.00) MMTPA, commissioned in 1999.• Phase III: 3.00 MMTPA, commissioned in 2012.

Total project cost Phase I and Phase II refineries about Rs 7000Crore

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MRPL – An Introduction

• Refinery Setup under APM regime.

• APM for Refineries dismantled w.e.f. 01.04.1998.

• MRPL suffered heavy losses, on the verge of

referring to BIFR as sick company in March 2003

with accumulated losses of approx. Rs.1200 crore and

Debt Equity of 9.77:1


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MRPL – An Introduction

• ONGC entered MRPL in March, 2003 with purchase of

full 37.39% equity held by A.V. Birla Group.

• DFR completed in just 3 weeks with 15 MRPL Lenders.

• ONGC subscribed Rs.600 crore in additional Equity

making MRPL a subsidiary of ONGC Company in March

2003.

• MRPL turned around in less than 2 years.

• Declared as Schedule B PSU on 6th Jan 2005


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Turn around…. how?

Cost Efficiencies

Financial Restructuring

• Higher capacity utilization• Improved Crude Mix• Crude cost and freight reduced• Energy consumption minimized.

• Debt restructured • High cost debt pre-paid• Interest rates minimized with ONGC’s creditworthiness• Tax Incentives for Phase II also helped

Mangalore Refinery and Petrochemicals Limited 7

MRPL – Current Equity Structure

• Listing : Listed on BSE(08/10/1992) / NSE (07/01/2005)• Number of Shares : 1752.60 Million Shares• Dividend : FY 12 Proposed Dividend/ Share : ` 1.00• Share price (H/L) : ` 85 (H), Rs.50 (L) for 2011-12• Market Cap : ` 11,952 Cr (31-03-2012)


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Technological Capabilities


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•State of the Art Technology

•Refinery designed to maximize Middle distillates

•MRPL was first in producing lead free high octane

Petrol in India from 1996

• A refinery with two Hydrocrackers and two

Continuous Catalytic Reformers

•First refinery to launch Euro III grade MS & HSD


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- Iran - Egypt - India

- Saudi Arabia - Yemen - Malaysia

- Iraq - Sudan - Indonesia

- Qatar - Nigeria - Brunei

- Dubai - Congo - Vietnam

- Abu Dhabi - Kazhakstan - China

-Rajasthan -Libya - Russia -Gabon -Azerbajjan -Australia -Khazakhistan

• Refinery has complexity/capability to process most difficult crudes

• It has processed in the past more than 52 crudes, light to heavy / sour to sweet with 24 to 46 API gravity.

Crude Processing capabilities

With commissioning of Phase-3 Crude distillation Unit ,gained capability to process High TAN Crudes.


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Major Process UnitsUnit Technology Phase1 Phase2

CDU/VDU EIL

HCU UOP CCR UOP

VBU Lummus

GOHDS JEC

ISOM UOP

Hydrogen Technip KTI

SRU Technip KTI

Bitumen Porner


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Current Process Configuration


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• Utilities and Infrastructure

• Captive Power Plant with capacity of 112.5

MW

• All weather Mangalore port provides two

dedicated Berth with automatic loading

arms.

• Connected to Mangalore –Hassan -

Bangalore product pipeline for product

supply to Bangalore• Fresh water sourced from Netravati river,

with 20 days storage at Refinery

Technological Capabilities…


Fresh water from built-up weir at Nethravathi river about 43 Kms

away from the refinery.

Infrastructure


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Product Dispatch

• Road– HPC,BPC,IOC Terminals.

– Directly by MRPL

• Rail– Through HPC only.

• Coastal– Directly by MRPL.

• Pipe Line (MHBPL)– Declared Capacity: 2.14 MMTPA.

– Design : 5.46 MMTPA

Technological Capabilities…


Product Despatch - Modes

Pipe Line - MHBPL• Length - 362.3 KM

• Capacity – 5.46MMTPA

• Products Naphtha MS ATF SKO HSD

CH- 1O6 KM,

EL- 1127 M)

Hassan

(CH- 165 KM, EL- 900M)

Nerriya(CH- 79 KM,

EL- 100 M)

Mangalore

(CH- 0 KM, EL- 6 M)

Bangalore

(CH- 362.3 KM, EL- 800 M)

PIPELINE ROUTE


JETTY VIEW


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• LPG (C3-C4)• Naphtha

– Open spec– LAN– HAN

• MS– Euro-III /IV– MS 92 / MS 95– Mauritius Grade MS

• Reformate• Mixed Xylene• ATF (Domestic)• Jet Fuel

• Kerosene• HSD

– BS III / IV – 0.5% S & 66 Flash– 0.25 % S & 66 Flash

• HSFO (180 CST)• Bunker Fuel (380 CST)• Bitumen

– VG 10 – VG 30– CRMB

• Sulphur (99.99% purity)

MRPL was the First to produce & dispatch Euro-III products MRPL was also the first to launch Euro IV grade fuels . This was possible due to Technological

Complexity of the Refinery.

Product Range


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Performance


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MOU PERFORMACE OF MRPL FOR LAST 6 YEARS

Year Composite Score Rating Remarks

2011-12 1.336 Excellent MOU with ONGC ( DPE approved targets).

MOU score of 2011-12 to be approved by DPE

2010-11 1.098 Excellent

2009-10 1.04 Excellent


MOU with ONGC2007-08 1.24 Excellent


For the Financial year 2009-10 MRPL has achieved the best performance scoreamong Oil PSU’s.

Petro-fed honored MRPL with “Refinery of the year” award for the year 2009-10 for its leading performance in production and operational efficiency, while meeting the norms of health, safety and environment protection.


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Physical Performance

MMTPA

Distillate % 72.75 71.67 71.94 72.80 72.67 73.3

Capacity Utilization %

129 129 130 106 # 107 108.2

# Name Plate Capacity revised from 9.69 MMTPA to 11.82 MMTPA in 2010.

Crude throughput


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Export Performance…

Entered into an agreement with State Trading House, Mauritius on 1st July, 2010 for supply of 1.1 MMT per annum valued 2 Billion dollars for a period of 3 years

Million Tons

Best Manufacturer Export Award 2010 ’Gold’ by Federation of Karnataka Chamber of Commerce and Industry


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Physical Performance

Lowest Energy Consumption

Lowest ever

• MRPL has won second prize in the Jawaharlal Nehru Centenary Awards (2009-2010) for Energy Performance of Refineries

• MRPL has won First prize in the Oil & Gas Conservation(OGCF)-2010 Awards in the category of Furnace/Boiler Efficiency .


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32,37737,339

42,719 36,081 43,800

57,207

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Crore

Financial Performance

Turnover


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11637 1123211608 11083

14604 23418

'06-07 '07-08 '08-09 09-10 10-11 11-12

Crore

Financial Performance…

Export Revenue (Foreign Exchange)

MRPL is accredited as ‘Premier Trading House’ by DGFT based on its export performance .MRPL is the highest exporter of Petroleum products in the Public Sector.


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GRM, $/BBL

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Financial Performance…Net Profit, ` Crore

Dividend 164 246 246 245 245 (8%) (12%) (12%) (12%) (12%)` Crore

10% dividend proposed


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ICRA and CRISIL Issuer rating of “Ir AAA” and ‘Cr AAA’ to MRPL for lowest credit risk

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Projects


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Major Projects completed

Revamp of Gas-oil Desulphuriser• Capacity Revamp : 4000 TPD to 5200 TPD

• Objective : Reduction in Diesel Sulphur Content from 500 to 50 ppm Expansion of Capacity to 15 MMTPA.

• Project commissioned in April-2010 instead of original target of Aug-2010 with MRPL becoming the first Refinery in the country to supply Euro-4 HSD.

Revamp of CDU-I : 30% increase in capacity• Crude Distillation Unit-1 was successfully completed in Oct-

2011.


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Major Projects completed

Revamp of HCU-1 & HCU-2• Objective: To meet the feed quality requirement of Petro

Fluid catalytic cracking unit.

• Hydrocracker units will operate on 50% conversion mode.

• The HCU-1 unit and HCU-2 units revamp was successfully completed on October-11 and May 2012


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Phase-III Refinery Up gradation and Expansion Project

Objectives

• Expansion of Capacity to 15 MMTPA

• Up-gradation of low value products to high value products.

• To process cheaper crudes ( Sour/ Heavy & High TAN crudes)

• Production of petrochemical feed stocks Viz. Propylene.

• Maximize distillate yield.

• Upgrading entire HSD into BS III/IV grade


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Salient Features: New Units added

• High severity Petrochemical FCC (2.2 MMTPA)• Delayed Coker ( 3.0 MMTPA)• DHDT unit ( 3.7 MMTPA)• Coker gas oil Hydro Treater unit ( 0.65 MMTPA)

Major incremental products• Polypropylene – 440 KTPA• Additional LPG – 730 TMT/Yr• Additional SKO/ATF : 1220 TMT/Yr• Additional HSD: BS III – 720 TMT/Yr & BS IV – 720 TMT/Yr

Phase-III Refinery Up gradation & Expansion Project


Phase-3 Configuration

Crude/Vacuum Distillation Unit(CDU/VDU) EIL/Jacobs 3 MMTPAPetro Fluidised Catalytic Cracking , Propylene Recovery and Naphtha Splitter (PFCC)

Shaw Stone & Webster, USA 2.2 MMTPA

Delayed Coker Unit (DCU) Lummus, USA 3 MMTPADiesel Hydrotreating Unit (DHDT) Axens, France 3.7 MMTPACoker Heavy Gas Oil Hydrotreating Unit (CHT) UOP, USA 0.65 MMTPAHydrogen Generation Unit (HGU) HTAS,Denmark /L & T 70 KTPA Sulphur Recovery Unit (SRU) Siritec Negi,Italy / EIL 3 x 185 TPDPolypropylene Unit (PP) Novelene, Germany / EIL 4,40,000 TPAHydrocracker Unit Revamp – 1 / 2 UOP,USA 1.6 / 1.7 MMTPA

Captive Power Plant (CPP) BHEL 118 MW (2 STG , 1 Frame 5 GTG + 1 Frame 6 GTG)

Tankages Offshore/Kay Bouvet

23 Nos.(3 Crude tanks+20 Intermediate

Storage Tanks)Mounded Bullets G.R. Engineering 04 No.sOther Utilities/Offsites

UnitsLicensor / Contractor

Capacity


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Phase-III Refinery Upgradation and Expansion project M

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• MRPL / ONGC Board Approval for Phase III : 02.08.2008 / 01.12.2008.

• Project Cost – Rs. 12412 Cr (As of March 2008).

• Reduced Phase-III Project Cost – Rs 12160.26 Cr (July 2009) (Due to deletion of facilities under pressurized mode of storage & transportation of propylene).

• Schedule for Mechanical Completion : 31.10.2011

• Project Management Consultant : Engineers India Limited.

• EPCM Consultant for CDU/VDU : Jacobs Engineering India Ltd.

• OBE/LSTK Contractor for PFCC/SRU : Engineers India Limited.

• Phase-3 project progress as on 15-07-2012 :

Scheduled :100 % Actual : 95.7 % .• Financial Progress Actual up to 8847 ` Cr ( 81.8 %), based on commitment

Phase-III Refinery Up gradation and Expansion Project


Phase-3 Units ready for commissioning

37 Mangalore Refinery and Petrochemicals Limited

CDU MECHANICAL COMPLETION ACHIEVED ON 27.10.2011

Commissioning on 29-03-2012

HGU MECHANICAL COMPLETION ACHIEVED ON 03.02.2012

Commissioned on 18-07-2012

DHDT MECHANICAL COMPLETION ACHIEVED ON 10.01.12

Pre-Commissioning in progress.

SRU Mechanical Completed on 29th June 2012.Precommissioning in progress.


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• MRPL /ONGC Board Approval for PP Unit : 27.05.2009 / 24.07.2009

• Approved Project Cost for PP Unit : Rs 1803.78 Crore

• Schedule for Mechanical Completion : 30.04.2012

• OBE/LSTK Contractor for PP Unit : Engineers India Limited.

• Due to non-availability of Land ( delay in evacuation of the one Project Displaced Family), PP Unit was relocated within the available space by meeting the required OISD and Petroleum & Explosive Safety Organization(PESO) Regulations. PESO approval received for the new location on 17.03.2010.

• Due to change in location MoEF choose to consider this case as a fresh case and once again asked MRPL to apply.

• MOEF clearance was obtained on 01-11-2011.• Polypropylene (PPU) progress 15-07-2012 :

Scheduled 97.7 % Actual 82.2 %.• Commitment made: ` 1297Cr. Actual amount spent: ` 595 Cr

Polypropylene Unit


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Receive crude in VLCC tankers to minimize transportation costs. The SPM facility will also be used to pump in crude to the Indian

Petroleum Strategic Reserve (ISPRL) underground cavern for storage of Crude oil at Mangalore and Padur The proposal was approved by MRPL Board and ONGC Board on 29-07-2010.

Capex : ` 1044 Crore . Schedule of completion: May-2012 . LOA was placed with EIL on OBE-LSTK methodology of

Execution on 30-07-10. Overall progress

Scheduled(15-07-2012) : 99.9 % Actual : 95.4 %.

Single Point Mooring


Catenary Anchor Leg Mooring Systems (CALM)


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Thank You

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Business

rs7000croremangalore

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