digital applications and capabilities needed to achieve operational excellence: applications and capabilities that derive their value from knowledge of how the plant has operated in the past combined with its current and future potential; and an actionable optimum path to achieving and sustaining that potential.

1. 1
Digitalization:
Assuring Your Plant
Achieves Its Full Potential
Mel Larson
LARTC 2019
1 - 4 October 2019 | Cartagena, Colombia

2. KBC BELIEVES
IN A WORLD
OF:
2
No safety incidents
No unplanned outages
Rigorous adherence to
operating plans
Nimble response to market
changes and plan disturbances
A culture of profitability
A motivated and informed
workforce
Proprietary Information © 2018 KBC Advanced Technologies plc. All rights reserved.

3. 3Proprietary Information 3
Digitalization...
A key strategy for the pursuit of operational excellence
The scalable application of the digital technologies, and
alignment of the organizational capabilities that we believe an
energy or chemical process operation should have and master
with digital information at the core in order to achieve excellence.

4. 4Proprietary Information
Context– Competitioncontinues

5. Proprietary Information
Africa
73,000 BPD
0.7%
Context- RefinerySizeandAvgYearlyAddition
North
America
150 KBPD
2.2%
FSU
130,000
BPD
(-1.5%)
Middle East
162 KBPD
1.0%
Europe
137 KBPD
1.0%
Asia
189 KBPD
2.6%
Latin America
91 KBPD
1.0%
Asia has largest absolute regional CDU capacity and has grown fastest since 1996
Bubble size approximates average regional CDU capacity
Data: Oil & Gas Journal
10

6. Proprietary Information © 2018 KBC Advanced Technologies plc. All rights reserved.
Operations
Management
Automation
Production
Management
Business
Management
LossesDue
to
Uncertainty
Reduced
Remaining Competitive Requires Change
Digitally wise decision-making cycle compressed
DecisionValue
SECONDS
Ago
MINUTES
Ago
HOURS
Ago
MONTHS
Ago
SECONDS
Ahead
MINUTES
Ahead
HOURS
Ahead
DAYS
Ahead
MONTHS
Ahead
DAYS
Ago
NOW
Decision-Making
Time Horizon
Decision Impact
Time Horizon
Proprietary Information © 2018 KBC Advanced Technologies plc. All rights reserved.

7. Shift Supervisor
Unit Supervisor
Operations / Maintenance
Managers
Plant
Manager
Key elements top to bottom…
Data acquisition is transparent
Data analytics open to all
Procedures in place to take action
Driven to profit safely and reliably
Operations /
Maintenance

8. 8Proprietary Information
Managed
performance
Specificcharacteristicsset apart leadersandlaggards
Strategic Intent
Operational
Design
Management
Focus
Required
Enablers
Supporting
Infrastructure
Targeted
Outcomes
Risk
Minimization
Reliable
Profitability
Quality / LEAN
Production
Maximize
Asset Value
Focus on basics
VULNERABLE
Business process
Process integration
STRUCTURED
Performance
optimization
DISCIPLINED
Business
Growth
INNOVATIVE
Stability Productivity
Operational
effectiveness Continuous
improvement
Agility
Built baseline
Developed bench
strength Sustained endurance
Capability
resilience
Capability
generation
Orphaned tools Point solutions ERP Automated workflow Artificial intelligence
Loss minimization Positive cash flow Repeatable results Predictable results
Sustained
value creation
OpX
1.0
OpX
2.0
OpX
3.0
OpX
4.0
ACCEPTING
Bottom 25% Top 1%
Increasing Maturity
Upstream Oil Exploration
PetroChem Industry
Refining

9. 9Proprietary Information
ProcessSimulationhelpstheareasthat
prevent a plantachievingit full potential
Unit Upset
Troubleshoot
Identifies
sub-optimal performance
Improves plans
and targets
Actual
Plan
Set by LP
Petro-SIM Simulation

10. 10Proprietary Information
Plantsunderstand
thevalueof rigorous
simulation
Most simulators are not an
up to date representation
of the plant or do not
connect to historian for
their “As-Is” data
10Proprietary Information

11. 11Proprietary InformationProprietary Information
Plant staff often don’t have
the time nor priority to use
simulation tools
The world is not perfect, so
time is necessary to
reconcile simulations versus
actual versus planning
Reporting and “fixing” often
multiple person task and
never easy
Time is better
spent on
actionable items
11Proprietary Information

12. 2
Proprietary Information
 Aligns with and drives
business data model
 Sophisticated analytics
 Only create one
DIGITAL TWIN
Slightly different representations
of the same thing
When one changes, so should
the other
HISTORIAN DATA AND
PROCESS SIMULATOR
KBChaveintegrated
Petro-SIMandOSIsoftPI
1

13. 13Proprietary InformationProprietary Information
A Digital Twin
goes beyond
traditional
simulation
Traditional
Simulation
Particular
operating case
A snapshot in time
Ad-hoc basis to answer
a question
Owned and used by
isolated groups
Specific tools for
different silos
Digital
Twin
Full range of asset
operation
Full history and future
Automated to business
workflows
Centralized single version of
the truth, used by everyone
Single integrated twin of
process, utilities and heat
exchange systems

14. 14Proprietary Information 14
Co-Pilot:
Fusion of
digital excellence
and
human excellence

15. CaseStudy:
DCUat Established
USGulf Coast
Refiner
15Proprietary Information
Co-Pilot
Opportunities identified:
$8million in 6 months
Alwaysavailablerationalizedandcorrected
unitmaterialbalance.
Connectivityofyieldaccounting,unit
performance,productionplanningand
processgroupsandtechnology
Advancedanalyticshelpedincreaseuptime
ofkeyprocessequipment

16. 16Proprietary Information
Securely Monitors RecommendationsReal-time Reporting
CollaborationPortal

17. 17Proprietary Information
BasisisinData-as-a-Service(DaaS):
Makingrealtimesingleversionaccurate datacollaboration
possibleallowingcorrectdecisionstobemadefaster.
Aggregates, rolls up and
analyzes in a flexible
centralized Data Source
Real time
connectivity
for your data
sources
Visualized and
presented in
line with
engineering
expectations to
whoever needs
to see the data
Proprietary Information 17
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18. Proprietary Information © 2018 KBC Advanced Technologies plc. All rights reserved.
• Collaborative and smart
• Digital twin… with teeth
• Automated (almost everything)
• Safety through transparency
- No ‘black box technology’
18
• Outcome-orientation
• Holistic in scope
• Fusion of technology and expertise
• Responsive and adaptive
– Leading edge, not bleeding edge
KBC’s Digitalization philosophy
Being ‘digitally wise’
Proprietary Information © 2018 KBC Adv

19. Proprietary Information
Becomingthedigitallywise
February 7, 2020 19
OperationalExcellenceBusinessConstruct
Innovative
Vulnerable
Orphaned Tools
Accepting
Point Solutions Structured
ERP Disciplined
Automated Workflow
Fragmented Structured Integrated Services
Consolidated
Services Seen as a Utility
Manual Automated OT/IT Converge
Inconsistent Manually Verified Data Backed
Open Loop Closed Loops
Digital
Components
Data
Collection
Decision
Support
Infrastructure
(IT Backbone)
User
Capability
Technology
Organization
Hero’s Reactive
Process /
Preventative
Proactive
Discontinuity of
Data Flow
Enterprise
Configuration
Front to Back
Integration
Industrial Internet
of Things
Industry 4.0
Predictive
Operations model
transition point
Artificial Intelligence
Non-User Tech Savvy Gamers Developers Hackers
Suggestive Predictive
Business
Process
Risk
Minimization
Reliable Profitability
Quality / LEAN
Production
Maximize
Asset Value
Business
Growth
Strategic
Intent

20. 20Proprietary Information
Digital Twin is just one part
of the Digitalization journey
SITUATIONAL
AWARENESS
VALUE
SUSTAINMENT
READINESS
DECISION
MAKING
OPERATIONAL
EXECUTION

21. 21Proprietary InformationProprietary Information
Mel.Larson@kbc.global
www.kbc.global
Mel Larson
Excellence
is never an accident. It is always the result
of high intention, sincere effort, and
intelligent execution; it represents the
wise choice of many alternatives - choice,
not chance, determines your destiny.
Thank you