The document provides an overview of KBC, an independent consulting company specializing in profit improvement for refineries and petrochemical plants. It summarizes KBC's history and services including yield and energy surveys, planning and scheduling support, reliability improvement programs, and loss control programs. KBC utilizes proprietary tools, software and methodologies to identify opportunities for clients to increase profits through optimization, cost reduction and embracing best practices.

1. Client logo
date, etc
First Choice in
Profit Improvement

2. 1979 KBC founded as independent consulting company, specialised in energy improvement in refineries
1983
First yield & energy study applied to petrochemicals (ethylene plant)
1986
Development of Petrofine simulation software leads to first refinery-wide Yield & Energy Survey
1993 Y&E Survey develops into comprehensive Profit Improvement Program (PIP)
1995 On-site Implementation Services takes KBC profit improvement deliverable to
a new dimension
1996 Development of new business area in Reliability, Availability & Maintenance
1997 KBC goes public - listed as plc on London Stock Exchange
2000 KBC and AEA Hyprotech launch HYSYS.Refinery
KBC acquires Risk Solutions and forms an exclusive alliance with
Clockwork Solutions for asset management technology
2000
2002 KBC acquires Linnhoff March and integrates this capability
as the Energy Services business for KBC
2002 KBC Acquires Petroleum Economics Limited (PEL) for
Market analysis and petroleum price forecasting
KBC Office Locations
KBC Evolution

3. To be the first choice independent source of services dedicated to identifying,
implementing and sustaining changes that improve the competitive position
of our clients in the hydrocarbon processing and energy industries worldwide
Technology
& Tools
Methodology
People
Technology
& Tools
Technology
& Tools
Methodology
People
People
Mission and Strengths

4. Global Track Record

5. KBC creates and fosters a challenging and stimulating environment in which KBC’s employees
can achieve their full potential through developing and sustaining
successful business relationships with KBC’s clients
KBC is committed to recruiting,
developing and retaining the best people
worldwide with unique skills set and
extensive industry experience:
 Technology specialists
 Industry senior management
 Experts in leading change
 Entrepreneurial business leaders
Our number one asset
People

6. Integrated teams
 Strong teams are set up between the
client and KBC organisation to:
 Gain trust and understanding
 Encourage openness and
willingness to try new ideas
 Provide tools and training
to assist in transfer of ownership
of profit improvement process
 Change Management methodology is
used to work through people and
organisational issues
Integrated Team
Program Manager
(Client)
Program Manager
(KBC)
KBC Core Team
Client Team
Members
Management Team
KBC Support Team
Production Planning &
Scheduling
Production
Logistics
Supply
Technical
Laboratory
Maintenance
Marketing
People

7.  In-house Tools and Software
 HYSYS.Refinery through alliance with AEA Hyprotech
 Profimatics Standalone Unit Models
 Petrofine
 Linnhoff March Pinch Technology
 Leading Industry Knowledge
 Research and development (technology steering groups)
 KBC’s unique independence allows access to all industry technologies
Assets
 Web-Powered Enabling Tools
 Industrial Evolution’s remote consulting solution
“WorldsBestTM” provides KBC consultants with live access
to real-time and historical process data over the Web
 Asset Management Technology
 Exclusive alliance with Clockwork Solutions utilising SPARTM
technology to predict and manage performance and life cycle
costs of complex systems
Technology and Tools

8. Long-term improvement is a continuous process:
 Base Case Establishment
 Data collection – may require additional testruns
 Roundtable discussions – unit by unit, operations, constraints, strategy
 Build a representative non-linear process simulation of refinery
 Best Energy Technology gap analysis – by units, steam/power values
 Assess gaps to Industry Best Practice and industry typical
 Indicates improvement potential
 Business case for change
 Identify ideas
 Brainstorming – ideas from both KBC and CRC
 Focus on no or low investment opportunities
 Analyze opportunities – check technical and operational feasibility
 Evaluate economics – using process models
 Implement changes – on-site KBC support
 Procedures and test runs
 Key Performance Indicators – used for auditing implementation
 Monitor and report results –using KBC’s proprietary tracking tool
 Sustain changes
 Change Management used to help address People and Organizational
issues
 Culture change to profit oriented
 Improvements in planning processes – LP updated
 Technology transfer
Profit improvement cycle
Yield and Energy Methodology

9.  Fully utilising processing capacities and capabilities
– Modes of operation/ operation conditions and targets
– Optimising catalyst utilisation – severity vs run length
– Eliminate unnecessary processing
– Equipment reliability/on-stream factors
 Maximise yields of high value products – feed selection and stream disposition
 Minimise quality give-away – optimum blend recipes/components
 Make best use of H2
 Molecular management – especially for the lighter end of the barrel
 Optimise refinery fuel usage within environmental constraints
 Optimise energy efficiency
– Heat integration/heater tuning/power and shaft work efficiency
– Power generation/purchase strategies
Example Opportunity Areas

10.  Return On Capital Employed
 Margin improvement
 Industry ranking
 Cost reduction
 Shareholder value
 Shortened cash cycle
 Better working capital management
 Product portfolio management
 Product quality
 Faster response to market
movements
 Profit-driven attitude
 Use of Industry Best Practices
 Customer satisfaction
 Intellectual capital
 Technology transfer
 Culture change
Tangible Inherent
 Motivated workforce
Benefits

11. Cost / benefits analysis of recent Profit Improvement
Programs
KBC Costs Implemented Benefits (Annualised)
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
US$
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Proven Results

12.  Consultants background from major oil
and Petrochemical Companies
 Broad base of engineering skills
 Independent
Our desire is to add value to clients - helping
them to define and achieve their goals
 Routine maintenance
 Turnaround Optimisation
 Reliability Availability Improvement
 Operations Integrity
Introduction to KBC RAM

13. Change Forced by Market
 Maintenance cost approx. 20- 30% of annual cash costs
 Wide variation in cost and reliability performance – why?
 Efficient maintenance processes underpin superior performance
 Best people achieve first quartile Cost, Availability and Safety
performances
 Maintenance is no longer the preserve of the maintenance
department
 It needs to be driven by Business needs not historic practice or
manufacturers recommendations
 “The only long term policy which promises success is to convert
manufacturing from being labour based to being knowledge based” P.
Drucker

14. US Maintenance Data
15.1 18.0
21.1
28.2
0
5
10
15
20
25
30
35
1 2 3 4
Quartile
Maintenance
Cost
95.0
95.5
96.0
96.5
97.0
Mech.
Avail.,
Pct.
 The difference between the “best” and the “rest” is not money spent but
efficient processes
Approaches to Maintenance

15. RAM Program Objectives
 Increased profitability through improved Reliability, Availability and
the Maintenance Process
 Assist in achieving all Business obligations on Safety,
Environmental, and Asset Integrity
 Develop cross-functional participation
 Provide a measurable and sustainable performance improvement

16. KBC RAM Methodology
 Program is a collaborative effort between KBC and the refinery
 Program and modules are tailored to meet your needs
 Understanding of refinery practice/ procedure
 Scheduling of modules flexible to allow early wins to be generated
 Shutdown schedule dictates timing of turnaround modules
 Equally important is embedding processes that drive continuous
improvement

17. Phase 1
Phase 2
Agree Program
and Timescales
ESC & Necessary
Implementation
Teams
Agree Strategy
and KPIs
Training and
Technology
Transfer
Determine
Business
Objectives
Agree Current
Performance and
Benchmarking
Set Strategic
Targets and
Timescales
Develop
Business Case
Recommendations
Findings
Path Forward
Implementation
Short Term Improvements
T/A, RBWS, Etc.
Reliability
Improvements
Management Processes &
System Improvements
Immediate
Improvements
Medium and Long Term
Sustainable Improvements
Improved Process Approach

18. Base Case
Performance
Year 1 Year 2 Year 3 Year 4
Ref
Maint
Cost
$/EDC
35
25
15
0
Current Refinery Trend
Short term
Programs
W/ Short Term
Improvements
Turnarounds
Contractors
RBI Work Screening
Work Planning
Operator Maintenance
Economic Prioritization
RCM and RCFA Studies
Long Term
Solutions
Sustainable
Performance
Maintenance Strategy
Asset Policies
Work Selection
Work Planning
Work Execution
Performance Monitoring
Performance Improvement
Sustainable Performance

19. Maintenance Management Shutdown Management
Reliability Engineering
Materials Engineering
Rotating Equipment
Inspection
RCM Methodologies
RCM-Asset Policies
Preventative Maintenance
Operational Reliability
Asset Management Modeling
QRA
Maintenance Strategies
Risk Management
Organization
Work Selection
Planning & Scheduling
Materials/ Warehousing
Contracting
CMMS
Operational Integrity
TPM/ TQM
Runlength Optimization
Worklist Reviews
Execution Reviews
Process Interactions
Closeout Reviews
T/A Contracting
Effective Field Controls
Field Support
Business Case
Short Term Improvements
Sustainability
Strategic Target Setting
Phase 1 Assessment
KBC RAM Program : Toolkit

20. Performance Monitoring
Risk Management Routine Work Planning
Turnarounds
Contracting
Quality Control
Efficiency
Operations Integrity
Processes & Procedures
Reliability Management
Cultures
Strategy and Performance Improvements
Work
Selection
Planning and
Scheduling
Work
Execution
Work
Avoidance
Performance Monitoring
Systematic Approach To Work

21. 0
10
20
30
40
50
85 90 95 100
Maintenance
Cost Index
Mechanical Availability %
1994
41.9$/MCI 88.5%
39.4$/MCI 93.4%
1996
2001 16.0$/MCI, 97.5%
2003
10.0$/MCI 97.5%
2000
 This shift from “gut feel” to risk analysis is at the heart of improved
performance. Benefits can be excess of 50c/ bbl, typically 10 - 20c/bbl
(excluding process availability credits!)
 Target implemented benefits often exceed 10:1
30% reached after 8 months
100% reached after in 24 months
Client Data
RAM Actual Results

22. Planning and Scheduling
KBC Planning
Services
PEL Market
Services
World Class Supply Chain
Services

23. World Class Supply Chain Service
Better
Plans
Better
Decisions More Profit
Best Practice
 Organisation
 Regulatory and Quality Issues
 Transportation
 Methods & Procedures
 Communications
 Performance Metrics
 Feedback
 Continuous Improvements
Model Maintenance
Tools
• Price Forecasting
Supply and Demand Analysis
• Refinery LP Models
• Structure
• Yield/Quality Data
• Constraints
• Operations scheduling
• Blend Scheduling
Plans
Decisions
Measurements
Authorities
Accurate Tools
Best Practice

24. World Class Supply Chain
Service Components
PEL Retainer Service
World Class Supply Chain Effectiveness
Review
World Class Planning Effectiveness
Review
World Class Planning and Performance
Monitoring Implementation

25. PEL Retainer Service
 Expertise Covering the following areas:
 Price Forecasting
 Supply and Demand Analysis
 Refining Developments
 Regulatory and Quality Issues
 Transportation
 Strategic and Investment Issues
 Management Challenges
 Deliverables
 Reports
 Presentations
 Access
 Online

26. World Class Supply Chain
Effectiveness Review
 Crude Selection Process
 Trading
 Trade Risk Management
 Price Risk Management
 Market Analysis and Forecasting
 Deal Capture
 Contract Management
 Shipping
 Primary Distribution
 Supply Planning Processes

27. World Class Planning
Effectiveness Review
 Benchmarks planning functions
 Audits current planning practices and tools
(examples)
 Supply planning
 Operations planning
 Blending and scheduling
 Other planning tools
 Identifies gaps to Best Practice
 Planning Practices Profiles
 Recommends improvements based on KBC’s Best
Practices
 Defines scope of work required to implement
recommendations
 For implementation by client or with KBC support

28. World Class Planning and
Performance Monitoring
Complete Refinery/Petrochemical
Planning Implementation Services
Covering Several Integrated Areas
 LP Model Development or Upgrade
 LP and Process Model Performance
Monitoring
 LP Model Updating
 Backcasting/Lookback Analysis
 Monthly Planning Cycle
• Rolling Plan with Forward Look / Horizon

29. KBC Loss Control Program
 Key Components
 Make a preliminary analysis of the refinery oil loss and value
recovery performance. Includes review of measurement and
methods/systems
 Provide a 12 month mass balance and oil loss in the Institute
of Petroleum standard format
 Benchmark this performance against other refineries using
KBC database
 Define a business case for improvement – with short and
long term recommendations

30. Discuss profit
improvement
areas in more
detail
On-site
Operations
review
Agree on profit
improvement
need
Issue
proposal and
set project
targets
1
4
3
Path forward