Zoltán Dániel, Project Manager – Slovnaft, Bratislava, Slovakia

Linking operational data to business activities enablescollaboration & increases profits

SigmafineReconciliationToolImplementationinSlovnaft Refinery

Presented at the European Petrochemical & Refining Congress, Hamburg, DE – May 22nd – 23rd 2017

Marco Lanteri, Senior Consultant – Pimsoft, Milan, Italy

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1.Introduction

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History

Company

Situation

Solution

Benefits

Introduction• Winthechallengeofproductionaccountingforacomplexsite• Leveragedataqualityintermsof:• Dataconsistency• Dataaccessibility• Dataauditability

• Integrateacompletedataworkflowfromthefielduptotheenterpriselevel

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1.History

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FromthePasttothePresentApollo Refinery 1895 – 1963 (Capacity 30- 40 kt)

Slovnaft Refinery 1957-present days (Current capacity 6100 kt)

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BratislavaSlovnaft Refinery

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2.CompanyOverview

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Bratislava6,1Mt

Schwechat9,6Mt

Ingolstadt12Mt

Vohburg5Mt Burghausen

3,4Mt

Leuna10,7Mt

Schwedt10,5Mt

Litvinov5,2Mt

Kralupy3Mt

Rijeka4,5Mt

Sisak2,3Mt

BosanskiBrod2Mt

NoviSad2,6Mt

Pancevo4,8Mt

PetromPitesti3,5Mt

Lukoil3,5MtPetromPloiesti4,5Mt

RafoOnesti3,5Mt

Drogobich3,8Mt

PKNPlock13,5Mt

Százhalombatta8,1Mt

Mozyr15,5Mt

LOTOS6,2Mt

MantovaLogistichubt

radius 500km

Membersince2000

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Austria

Slovenia

Croatia

Bosnia

Ukraine

Pol&

Czech Rep

Hungary

Crude Oil Pipeline

Friendshippipeline

ADRIA

BratislavaRefinery

SlovakRep.

• REB– RussianExportBlend• SourcedfromRussiavia

Druzhba pipeline(a.k.a.FriendshipPipeline)

Since 1962

Since 2015

SupplySituation

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Facts&figures*

NelsonC.I.

2016Production

*Slovnaft AnnualReport2016&previousyears

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3.Context&Situation

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A10Year Journey…• 2007:Startimplementationofreconciliationthe GroupSolution

• Usestandardtool• Implementationinall sites ofMOLGroup

• Triedtoimplement3timesunsuccesfully:• 2008:Didnotfulfilledtheidentificationofsourcesoflosses• 2009-2012:FocusonDCSimprovements (balancing calculation,lossmanagement &reduction) distractedresources&prevented projectcompletion

• 2012-2014:furtherimplementation notfulfilled:• Autumn2012: Refinery&Petchemmerged intoSNRefinery, causing lackofinternalHumanResources

• May2014: Projectstops duetostartofnewERPsystem,preventing workonintegration

• Until this implementation it was not really aproject,there were otherpriorities,not good planning andtiming (collisions)

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Existing Systems notaligned with thenewbusinessstrategy• Lowperformanceindataentry&limitedanalysiscapabilities

• Onlyonepersoncandobalancingatagiven time• Lotsofmanualdataentries,lotofverificationdaily• Nodiagnostictoolnor graphicalvisualisation

• Poordataquality• Constantproperties (e.g.density)forproduct measurement• Inventory& lossesarefixed

• Limiteddataaccessibility• Nodirect connectionwithplant historian• Informationavailableonlyindatasheets• Nopublishing viaaRefineryInformationSystem

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4.Project&Solution

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Production accountingis…

... the business process of measuring, validating &publishing flows & inventories occurring into, within &out of the plant & the refinery

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Projectobjective

Applysetofunifiedtools &practices tomanageintegratedoperationsbasedonrelevant& timelyinformation&incompliancewith theMOLGroup

guidelines&integratedbusinessprocesses

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FiscalMovements

MovementDeclaration

SigmafineDataValidation&Reconciliation

Anintegratedinformationworkflowfromprocesstoenterpriselevel

WebReports

EnterpriselevelPIHistorian

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CollaborativeAccountingenvironment

MovementOperators

PlantAreas

Accountants

Environment

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Empoweraccountingwithdatascience• Solvabilityanalysisofthenetwork• Statisticaltestsassociatedto• Measurementcorrection• Imbalancecorrection

• Dataqualityindicatorson• Measureddata• Reconcileddata• Overallmodel

• Accountantcanfocusonbadrankingunits&worstmeters

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Turnkeysolutionforasuccessfulimplementation

• CloseteamworkbetweenSlovnaft &Pimsoft• Topmanagementinvolvementfromthevery beginning• Deeppreliminary analysisdonebySuppliertoclearlyidentifyscope&projectrisks• Createasolutionentirelybasedonproductfunctionalitieswithoutcustomdevelopment• Transparencyoninformationamongteams&management

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ProjectTimeline &Status

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DataCollection&Functionaldesign

Implementation/Modelbuilding

2016August

2017July

FATIntegrationTest&Tuning

SAT

2016Nov

2017Mar

2017May

2017June

Go-liveparallel run

Projectclose

FAT- Factory acceptance testSAT– Siteacceptance test

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Implementation Challenges• Complex,integrated refinery&petrochemicalmodel• Many intermediate &finalproductstoragetanks• Complex integration rules with ERP• Many stakeholders• Fitparallel project inMOLPetrochemicals• Many endusers fornewIMMmovement management

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5.Results&Benefits

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RESULTSCHALLENGE SOLUTION

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INITIAL GOAL

Results &Benefits

Dedicatemoretimetodataanalysis&improveaccountingaccuracy,reducingmanhoursspentfordataentry

Makeworkofaccountants&movementoperatorsmoreefficient&coherent

Provideaflexiblesolutionthatallowseasydeclaringofmovements&fullgraphicalinterface&statisticaldiagnostics

Allowmultipleuserstoconnect&workatthesametimethroughaclient-serverarchitecture

Reductionofmanualinputstobedeclared

Divideetimpera approachallowssplittingtheworkloadbyplantareaformovementdeclarationstillkeepingonemodelfortheentirecomplex

Accountantcandetectmoreeasilymajordiscrepancies

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RESULTSCHALLENGE SOLUTION

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INITIAL GOAL

Results &Benefits

Improvelossaccounting

Informer system,productionunits weremodeledasfixed,calculatedbyplanningstandards,mainlyasaportionoffeed;process units andtheir losses were treated asseparate«islands»

Basedondesign&processknowledge,losses(flares,technicallossesatunitlevel,stoichiometrical losses)havebeenintegratedinone,fullyconnected,reconciliationmodel

Lossesarenowaccountedwithabetterdetail&visibilityatunitlevel.

Futureexpectationistoreduceevenfurthertheuncertaintyinlossaccounting

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RESULTSCHALLENGE SOLUTION

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INITIAL GOAL

Results &Benefits

Datavisibleatdifferentcompanylevels,withfullcontroloftheworkflow

Manydifferentdatasource&dataconsumersneedtobepartofthesamepicture&notsegregatedinseparateboxes

Sigmafinesolutiontogetherwithitsmovementmanagement&IntegrationFrameworkallowednativeconnectiontothehistorian,processfiscalmovement,historicizereconciledsolution,generatereports&ERPmovements

Alltheproductionaccountingworkflowisnowmanagedthroughonesingleproduct

Dataarevisible,accessible&auditable

Thereisnomoresegregationbetweenprocess&enterpriselevels

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Conclusion

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MeetingbusinessstrategythroughacooperativeanddataqualitydrivenProductionAccounting• One unified environment to• Improve (productions, consumptions and losses)reported to business

(operators and accountants) to providebetter inputs for the balance and in datahandling

on data manipulation from the raw value to the officialreported data

of the solution to add / modify assets in the futureaccording to changes in the plant and to

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FittingMOLGroup2030Strategy• ResilientIntegratedBusinessModel• Createanaccountingsolutionflexible&scalableothertime

• High-Quality/Low-costAssetBase• Leveragequalityofalreadyexistingassetsthroughacomprehensivemodelofrefinery&petrochemicalsite

• Systematicefficiency• Decreasetheneedofmanualinputs&reducehumanfactorbyimplementingasingledataworkflow

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