資料3 Solomon Associates World’s Best · PDF fileSolomon Associates World’s Best Refineries Suggestions for the Refiners in Japan ... in key Solomon metrics: ROI, Operational

Proprietary and Confidential © 2016 HSB Solomon Associates LLC

www.SolomonOnline.com 1

Solomon Associates World’s Best Refineries

Suggestions for the Refiners in Japan 20 December 2016

資料３



Solomon Benchmarking Global Standard

Our data are proprietary, not pulled from inconsistent, publicly available sources

Hundreds of refineries, representing more than 85% of the worldwide crude refining capacity, voluntarily participate in Solomon’s Fuels Study

We show our clients where their operations stand against the spectrum of global competition

We see the trends of change as of companies repeat participation study after study



World’s Best Selection Criteria

Return on Investment (ROI)

OpEx

• Energy (EII) • Maintenance (MEI)

License to Operate

Reliability (Operational Availability)

Three

Consecutive

Study Cycles 5 in North America 1 in Europe 4 in Asia

Top half in key Solomon metrics: ROI, Operational Availability, EII, and MEI

<3% of Refineries



Characteristics of the World’s Best Covers a Wide Range of Characteristics

Perc

ent

of

WB

Aver

age

Topper Capacity, k bbl/d

Complexity Age, yr Crude, °API

Crude Sulfur, wt %

380 13.3 24 31.9 1.6

Japan Average

The World’s Best covers a wide range of size, complexity, and age Japanese refiners are capable of achieving the World’s Best performance level



Characteristics of the World’s Best Average Process Unit Age

Average Years in Service

World’s Best

Average

Japan

Average

Fluid Catalytic Cracker 32 34

Alkylation 39 23

Coker 23 28

Naphtha Reformer 26 31

Hydrocracker 18 27

The World’s Best have learned to extract value from aging assets



Reliability (Operational Availability) Country Rank using Average of Old Refineries*

Rank 2006 2008 2010 2012 2014

1 Argentina (~97)

Germany (~97)

Saudi Arabia (~97)

Saudi Arabia (~97)

Argentina (~97)

2 Germany Saudi Arabia Argentina Germany Saudi Arabia 3 USA Argentina Germany Argentina Germany 4 5 6 7 8 9

10 11 12 Japan (93.5) Japan (93.2) Japan (93.1) 13 14 Japan (92.7) Japan (91.8)

* RefAge ≥ Japan Average RefAge

Old Refineries in 13 countries are more reliable than the Old Refineries in Japan The reliability gap represents 18 days of annualized downtime



Competitiveness Worldwide Breakeven Production Cost Analysis

1 2 3 4

Quartile

50 USD/bbl Crude

Cost

of

Tran

spor

tatio

n Fu

els

JA LX JB5

JA KA LX JB5

2014 Actual

WB

KA WB

Refineries in Japan are more competitive when crude oil prices are low

JA = Japan Average JB5 = Japan Top-5 KA = Korea Average LX = Large Asia Export WB = World’s Best



Characteristics of the World’s Best Compared to the Japan Average in 2014

Volume % of Net Input

World’s Best

Average Japan

Average

Facilities Integration • Feedstock to Lubes 1.0 1.0

• Feedstock to Chemicals 1.2 1.2

Petrochemical Products 4.7 5.3

Resid Products 3.8 10.4

The Japan average refinery is already very complex and highly integrated, yet produces large amounts of products that are valued below the average Raw Material Cost



Technical Staffing Gap in Japan 2014 Study (Company + Contract Employees)

Equi

vale

nt N

umbe

r of

Eng

inee

rs

The y-axis signifies the incremental staffing for the average refinery in Japan, at the 2014 Japan capacity and configuration, to be staffed at the same level as the four groups shown



Energy Efficiency (EII) Country Rank*

Rank 2006 2008 2010 2012 2014

1 Thailand (<85) Korea (<86) Korea (<85) Korea (<80) Korea (<80)

2 Korea Canada Netherlands Thailand Netherlands 3 Canada Netherlands Thailand Netherlands Saudi Arabia 4 5 Japan (90) Japan (90) 6 Japan (89) 7 8 9 Japan (90)

10 Japan (90) 11 12 13 14 15 16 17 18 19 20

* A selected group of countries with four or more fuels refineries

No significant energy efficiency improvement in the Japan average refinery Is this lack of continuous improvement related to the technical staffing gap?



Summary Suggestions for Refiners in Japan Acknowledge that value can be extracted from aging assets Complexity is already high, yet resid conversion lags

• Additional resid conversion is needed to remain competitive • Up to 30% of the gap can be closed by continuous improvements in:

1. Conversion Unit Capacity Utilization 2. Conversion Unit Yield Efficiency 3. Fractionation Efficiency

Increased productive technical staffing levels are needed to identify and drive improvement initiatives

Many refineries in Japan are capable of achieving the World’s Best performance level



Comparative Performance Analysis™ (CPA™) We Benchmark the Oil & Gas Value Chain

Upstream

• Exploration & Production

• Onshore Production • Offshore Production • FPSO • SAGD

Midstream

• Liquid Pipeline • Natural Gas Pipeline • Terminals • Natural Gas &

LNG Processing

Downstream

• Fuels & Lube Refining

• Petrochemicals • Integrated Sites • Reliability &

Maintenance • Power Generation



Legal Statement

The information and methodologies outlined herein are proprietary and their expression in this document is copyrighted, with all rights reserved to HSB Solomon Associates LLC (Solomon).

M³ – Measure. Manage. Maximize. ®, Comparative Performance Analysis™, CPA™, Performance Excellence Process™, Q1 Day 1™, EDC®, EII®, CEI™, CWB™, Solomon Profile® II, and other marks are registered and proprietary trademarks of Solomon. The absence of any indication as such does not constitute a waiver of any and all intellectual property rights that Solomon has established.



For more information: Jun Okawa Solomon Associates (Tokyo) 電話 03‐5410-3555 携帯 090-6115‐7787 Email: [email protected] www.SolomonOnline.com

for making Better Business Decisions

Transforming Data into Insights

Documents

資料3 Solomon Associates World’s Best · PDF fileSolomon Associates World’s Best Refineries Suggestions for the Refiners in Japan ... in key Solomon metrics: ROI, Operational