Digitalization on Refinery Engineering

Design ( RDMP of Balikpapan Refinery)

Silvana Rosita da Costa

CONFIDENTIAL AND PROPRIETARY

Any use of this material without specific permission of PERTAMINA is strictly prohibited
Industrial sector is a key driver of Indonesia’s development

Energy and industrial sectors are a Government priority, as they are key for driving Indonesia’s economic growth

8 main programs of Indonesia’s economic development

Forecasted growth
Sector %, 2015-25 CAGR
Strategic Agriculture
ideas

Mining, industrials
ICT Masterplan for Mining 10.1
and energy
acceleration and
expansion
of Indonesia’s Agriculture 7.7
economic
Tourism development Energy
Services 9.9

Marine Industrials Indonesia 9.5

SOURCE: MP3EI, IHS database

ENERGI DEMAND BY SECTOR
OIL FUEL PRODUCTION PRODUCTION VS DEMAND
Indonesia’s energy demand is expected to increase 75% by 2030
Indonesia energy demand
Coal Oil Biofuel Other Renewables
MTOE
Gas Electricity Traditional Biomass

299

~75% 16% ▪ Oil and gas continues to

253
be the main source of
15% energy
213 20%
13% 19%
169
18%
11%
15% 34%
▪ Renewables to only
37% contribute ~5% to total
39%
42% energy requirement
14% 15%
10% 13%
0% 3% 5% 6%
19% 11% 7% 4%
4% 4% 4% 5%

2015 2020 2025 2030

SOURCE: Energy Outlook – Ministry on Energy and Mineral Resources

Pertamina Refineries

Dumai Bontang

Kasim
Balikpapan
Plaju
Balongan
Tubang

Cepu
Cilacap
Project Plan: RDMP and GRR
RDMP (existing refinery upgrade) GRR (new refinery)

1 billion 2 billion
BPD BPD
2017 2025

2017 2018 2019 2020 2021 2022 2023 2024 2025

Balikpapan Balongan Cilacap, Bontang Dumai

Stage 1
Balikpapan Tuban
Stage 2

1.0 1.1 1.2 1.6 1.9 2.0

Total
capacity CDU
billion bpd

SUMBER: RDMP BFS for Dumai, Cilacap; PESG estimate for Balikpapan; Beicip 2016 study for Balongan; Technip BFS for
Tuban; OBC (refinery+petchem configuration) for Bontang
10 most critical areas where megaprojects go wrong
1 No clear understanding of contracts by Owner’s team; weak cost control and
reimbursement management
Capabilities 2 No tight coverage between reps and the EPCM leads of the EPC players

3 Poor credibility of forecasts

4 Lapses in contractor management
5 Little/no adherence to the overall plan with each working unit
optimizing only for themselves
Coordination 6 No common understanding of project status
and control
7 Only boilerplate reporting rather than targeted weekly
updates resulting in little / no anticipatory planning
8 Outdated project risk register and focus only on
obvious risks rather than more specific shifting risks
9 Lack of proper performance management; no visual
management and actions are not logged and tracked daily
Leader-ship and
management
10 No continuity with pivotal players, especially on EPC side
Indonesia is facing 4 main challenges in project execution

Challenges

Capability of national ▪ Capability of local EPC companies is relatively limited for complex projects
1
contractors
▪ Local EPC companies have limited capital to join tenders of Mega Projects

2 Quality engineers ▪ There is a lack of qualified engineers

▪ Long tender process for infrastructure projects

3 Procurement policies
▪ Current procurement policies is based on the lowest bidder
▪ Difficult to execute multi-year projects due to annual budget

▪ Acquisition / land financing become big issues, causing project to be late and increases
4 Land / financing costs

SOURCE: PII analysis

 MITIGATE FEAR OF
CHANGE

SKILLS &
COMPETENCIES

DRIVING
REDUCE
INVESTMENT RISKS

EXECUTIVE BUY-IN

ORGANIZATIONAL
CONFIDENCE
The way forward for Pertamina in facing energy demand

▪ Create :
Refinery Development Master Plant (RDMP) for each
existing Refinery Unit
▪ Develop:
New Grass Root Refinery (GRR)
▪ Strategy:
Create strong Project Engineering Service Group
 Scope under PESG (Pertamina together Scope under PESG to be
with partner) determined on a case to

PESG scope as an EPCm1 service provider Scope under other parties –

case basis depending on
project complexity
open for competitive bidding

Bankable
Feasibility BED FEED Engineering Procurement Construction
Study

Develop Develop BED Manage Procure long- Manage

Pertamina & technical scope packages for Develop FEED engineering lead items & construction
partner) and estimates; non-licensor packages contractor high value contractor
Develop EPEP units equipment
Small/
Medium
projects2
Other Procure other
Develop BED Develop detailed Perform
engineering/ equipment or
packages for engineering construction
construction supplies
licensor units
company3

Develop BED Manage Procure long- Manage

Develop Develop FEED
packages for engineering lead items construction
(Pertamina technical scope jointly with other
non-licensor contractor contractor
and partner) and estimates engineering
units companies

Large
Other
Projects Develop BED Procure remaining
engineering/ Develop FEED Develop detailed Perform
packages for equipment/
construction engineering construction
licensor units supplies
company3
SmartPlant Solutions adopted by PESG for RDMP Projects

SmartPlant SmartPlant SmartPlant

P&ID Electrical Instrumentation

SmartPlant P&ID SmartPlant

Engineering Integrity Process Safety
SmartPlant Solutions adopted by PESG for RDMP Projects

SmartPlant SmartPlant
Smart 3D
Reference Database Review

CAESAR II PV Elite
VIDEO
SmartPlant Solutions adopted by PESG for RDMP Projects

Facility Lifecycle
Engineering Design

Owner / Operators i
i
Construction & Commissioning
Operations & Maintenance
Advanced Process Modelling - ProcessBuilder

Detailed Reactor Design Whole Plant Optimization

Global System Analysis Multi-Site Optimization

ProcessBuilder at a Glance
ProcessBuilder provide better basic functionality than
many existing simulators …
Comprehensive library models
- Steady-state and dynamic flowsheeting
Project tree for easy Drag & drop Standard process units • Oilfield - within the same environment
control flowsheeting Advanced reaction • Olefins • Refining
Utilities • Water • Power • CCS - Equation-oriented solution power
- easy, rapid solution of large flowsheets, complex recycles
Steady-state and
- Advanced thermodynamics
dynamic - easy properties for complex systems

… plus many next-generation capabilities

- State-of-the-art custom modelling
Easy custom - capture and deploy your corporate IP easily
modelling
- with model - Advanced catalytic reactor models
management
- detailed reactor design optimisation
- simultaneous design of reaction & separation
- Large-scale MINLP optimisation capability
- whole plant & multi-site optimisation
Advanced platform capabilities Built-in physical properties Sophisticated numerical solution environment - 10s of decision variables, constraints
Parameter estimation Multiflash + DIPPR Equation-oriented solution with High-Performance
Global system analysis Computing - Global System Analysis
State-of-the-art MINLP optimisation - explore decision space systematically
- reduce uncertainty, risk
- Export model for
- online execution via gPROMS Digital Applications Platform
- cloud web-based deployment
The Downstream Value Chain Capabilities
Refining
Olefin
Advanced Catalytic Reactor Design

Polymers
Intermediates & Derivatives
State-of-the-art Separation Models
Other Specific Applications
Solid Process Modelling
Solution Crystallization

Utilities Optimisation

Water Treatment
Compression Systems

Cyclic Separation Process

Dynamic flare network analysis
Conventional approach:
Standard flare network design is based on steady-state analysis
and several tools support this
However
 Relieving events are
inherently dynamic:
steady-state analysis
results in overly
conservative and
expensive design
− Relief pressure reduces rapidly
− Relief events are not
simultaneous but sequential
 Dynamic modeling brings
many advantages:
− take credit for line packing
− use staggered/staged relief to
reduce peak flows
− determine duration of peak
flows, cold events, etc.
− incorporate upstream process
effects
− base designs on realistic
numbers
 I N T E G R A T E D S O L U T I O N S A V A I L A B L E I N
P U B L I C / P R I V A T E C L O U D I N F R A S T R U C T U R E

Feed Construction Operation

Procurement
& Materials

Detail Design Fabrication Completions

SMART DIGITAL ASSET

 CONNECTING
THE ECOSYSTEM
The way forward for Pertamina

Create a world-class engineering and projects organization that drives

projects end-to-end for Pertamina thereby helping achieve performance
and margin aspirations
Develop competencies of engineering and projects personnel and
embed ‘engineering is a culture’ mindset
Thank you