Game Rules 2013

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freshhh2013 MOiL Tycoon Game Rules

About the game

The game is a turn-based strategic game, aiming to imitate reality as much as possible. However it still

contains several simplifications to make the game easier to understand and more entertaining to play.

Game concept

You are the managers of a well-established oil company with a diversified upstream and downstream

portfolio continuously seeking new upstream opportunities to replace the reserves and the production,

as well as to improve the efficiency of your refineries.

Freshhhfield had decided to open its oil industry to international players recently, due to a lack of

funds for putting into production the sizeable discoveries made by the National Oil Company of

Freshhhfield. Several companies entered the First International Bidround of Freshhhfield which

resulted in a significant increase of production and oil export levels of the country. Your company owns

four oil fields in Freshhhfield. Thanks to the success of the international bid round, Freshhhfield’s two

neighbouring countries, Freshhhia and Freshhhrock have also opened up and the three countries

formed the Oil Producer Fresshian Countries – OPFC Area. Thanks to your long-lasting successful

international track record and your presence in Freshhhfield you are one of the few companies invited

to operate in the OPFC Area. The upstream industry has a long history in Freshhhia and Freshhhrock

as well, however most discovered fields could not be developed due to the lack of funds in these

closed economies in recent decades. The primary objective of OPFC countries is to find operators

who commit themselves to efficiently developing and producing the already discovered hydrocarbon

fields. Therefore no exploration licenses will be granted, and you can only bid for discovered fields.

You are delegated exclusively to the management of the OPFC Area portfolio, and you don’t have to

deal with other assets of the company. Nevertheless you have access only to the free funds of your

own portfolio to acquire new opportunities here.

Your aim is to prove that you are the best managers by maximizing the cash generation of your

company’s Freshhhian upstream portfolio by creating value added with both upstream and

downstream operations.

You start the upstream game with 500 million F$ (Freshhh Dollar) of cash at hand. You will also

receive 5500 million F$ for downstream operations.

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Timing

Contestants are going to play for 18 turns. 1 turn in the game means 24 (or 8 in the Test Rounds)

hours in the real world, so in every 24 (or 8 in the Test Rounds) hours, there is going to be a turn

change.

(the next round’s results – financial accounting and the effects of decision-making - only show when a

turn change occurs)

Financing

You start the game with a separate Upstream and Downstream budget with 500 million F$ in

Upstream and 5500 million F$ for Downstream.

You have a revolving credit of 5000 million F$ total at 10% interest rate. You can use this credit facility

to finance up to 60% of your investments (Downstream and Upstream too). In the meantime you

cannot use the credit to acquire new fields. If you exceed the 60% limit on any of your investments, the

penalty interest will be 30%.

/NOTE! Every screenshots and figures on it in the Game Rules are only samples. Actual view is always on the Online Game only./

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UPSTREAM

Playing the game

In each turn you will be offered the chance to acquire oil fields in the OPFC Area (5 fields per turn until

turn 10, 7 fields in turn eleven and 0 fields thereafter). Each license will be offered only once. Specific

geological, fiscal and economic data and the price of the fields will also be rendered. With the help of

this information you will have to evaluate the fields and purchase them if you have sufficient amount of

funds and – of course – the opportunity is prospective enough. Your funds are scarce so don’t waste

them on low return projects. If the IRR of a project is just a few percents, it might be better to wait for

more suitable opportunities.

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After the purchase your task will be to work out and fulfil a field development program on the

field.

Your performance and the final scoring is based on the cash generated your company’s

Freshhhian portfolio. We will also take into consideration and evaluate the effects of your decisions

made in the final turn. (By running a 19th turn automatically without the opportunity to make any

decisions right at the end of the game.)

You can see country specific information or elect the lincenses in the Locator. By selecting an active

license area a list of input data will appear (for details see Inputs section) and you can also acquire or

go to the selected field.

When you successfully sign an agreement, you will be navigated to another screen where the map of

the license area will appear. Here you will find 4 panels/ buttons:

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Field details shows the wells and facilities in operation and under construction and the field’s

production performance

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Financial data indicates the main financial results relating to the given license area

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Development panel contains facilities that can be constructed. For detailed information about building,

please see section “Field Development, facilities and costs”.

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Abandon field button shall be used if the player wants to stop the operation of a field.

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Selling the produced hydrocarbons

Crude oil

The oil quantity that leaves the license area is sold on the average international market price at the

end of the year. Note that there can be several bottlenecks of oil sales. (See the facilities section for

details.)

Natural gas

The associated natural gas is used for power generation, or transferred to the government for free,

according to the license agreements in force in the OPFC area. (This is done automatically; the teams

do not have to deal with gas at all.)

Fiscal regime

If the teams want to plan their revenues precisely, they have to model the fiscal regime of the license

agreements as well. Each country has its own tax regime but they are quite similar. The OPFC

countries use simple royalty system. According to the regulations a single tax is levied on the oil

revenue of the company. For the tax rates of the countries please see the table below.

Tax rates

Freshhhfield 70%

Freshhhia 75%

Freshhhrock 80%

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Inputs & miscellaneous rules

The following data will be provided for each field.

Field data

Depth [ft] reservoir depth

API° API gravity

Rsi [scf/bbl] Gas-Oil Ratio

Area [acre] Area of the field

Average thickness [ft] Average thickness of the reservoir

Porosity [%] Porosity of the reservoir rock

Heff/H 1/1 The ratio of effective and average thickness

Initial water saturation [%] Initial water saturation in the reservoir

Permeability [md] Permeability of the reservoir rock

Distance from main

road [miles] In case a CPU is built, its distance from the closest main road

Distance from main train

line [miles]

In case a CPU is built, its distance from the closest main rail

line

Distance from main

pipeline [miles]

In case a CPU is built, it’s distance from the closest main

hydrocarbon route.

Furthermore, information on the country in which the field is located, will also be granted. These data

are constant throughout the game. These are the following:

Country data

Average

temperature [F°] average atmospheric temperature

Geothermal

gradient

[F°/1000

ft] average geothermal gradient

OPEX parameter OPEX and CAPEX levels are somewhat different in the

countries you operate

CAPEX parameter

Government take The % of the generated oil revenue withdrawn by the

government

There are some technical parameters which are constant regardless of the country or field. These are:

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Constants

Atmospheric

pressure 14.7 psia

Methane density 0.037463 pound / cubic ft

Wellbore radius 0.29 ft the diameter of the well sections that cross the

reservoir

Oil price varies throughout the game. In the first period the price is F$ (Freshhh Dollar) 100 /bbl.

Evaluation of fields – production curve

Before purchasing a development concession you will need to evaluate it. To do this, you have to

calculate the oil in place, the recoverable reserves and finally the production profile while also

considering the necessary investment, operating costs and taxes. The recoverable reserve size (i.e.

the recovery ratio) and the production profile are dependent on your field development scheme.

(Please see next section for detailed information on field development.) Note that the fields are

developed with pressure maintenance technology and ESPs (electronic submersible pumps) are used

at each production wells.

With the above specified data set and with the use of the Vasquez and Beggs (1980) formula, you can

calculate - the Bubble point pressure, the Oil formation volume factor, and the Original reserve for

undersaturated reservoir.

Following that, OOIP – Original Oil In Place can be calculated

During the Recoverable Reserve calculation, use

Beggs and Robinson (1975) for the oil viscosity calculation

McCain (1991) for the water viscosity calculation. The water is assumed to be freshhh water without

any salt content.

For estimation of the recovery factor with pressure maintenance technology please use the correlation

issued in API Bulletin D14 (1967)

The production is separated into two phases, waterless production and production with water. The

total liquid (water+oil) production level of a field with a given well network is constant in the entire life

of a field (without taking into consideration the bottlenecks of the surface infrastructure) but watercut of

the production changes in time. For the calculation of the production profile you may use the following

formulas:

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For waterless production portion (from sensitivity calculation made by numerical simulation)

Wlp= waterless (till 1% of water contain) production portion of the total production

Wlp=0.6047-0.035*log(µo/µw)+0.02861*log(Wd)-0.0342*log(h)+0.06*(heff/h)-0.0067*log(k)

where;

(Wd) Well distance interval = 2000 < distance between the injectors and producers < 10000 [ft]

Reservoir total thickness interval (h) = 40 < thickness < 300 [ft]

Permeability interval = 1 < k < 1000 [mD]

Over (or below) the limits the maximal (minimal) limit value has to be used

Distance between injectors and producers = 2*(A/(n+m)/3.14)^0.5

where:

A: field area [sq ft]

n: number of producers

m: number of injectors

ROOIP in the waterless production phase =ROOIP*Wlp* Sp, where

Sp= Scheme parameter, a correction factor depending on the injection well pattern:

At five point system (producer -injector ratio = 1) Sp=1

At seven or four point system (producer -injector ratio = 2) Sp=0.9

At nine point system (producer -injector ratio = 3) Sp=0.8

Sp can be calculated directly from the final producer-injector rate for a middle point

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When the produced oil amount in the waterless production phase exceeds ROOIP*Wlp* Sp, the

waterless phase alters to production with water phase.

In production with water phase

For Field level Water Oil Ratio prediction use Timmermann (1971) formula, where;

Np= cumulative oil production [bbl], its domain: ROOIPWlp < Np < ROOIP

a, b = reservoir specific constants, can be determined from the first and last point of the curve

1st point (starting of the water production) WC=1%, Np=ROOIPWlp

2nd point (end of potential production) WC=99%, Np= ROOIP

For well level estimations you may use the following equations

Average producer productivity equation:

where:

qf = qo+qw [bbl/d]

re=drainage radius [ft]

rw= wellbore radius [ft]

re = (A/n/3.14)^0.5



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Estimation of the average injector final productivity:

where

iw [bbl/d]

Kw= average water permeability (assumed to be equal to k)

rei = middle distances between the injectors and producers

rei = (A/(n+m)/3.14)^0.5

where:



m: number of injectors

As the game itself, the model for the estimation of the production of a field should also be built using 1

year long periods.

Field Development, facilities and costs

To bring up the precious oil from the depths of the earth, you will need to develop the field. For this

purpose, producer and injector wells are needed as well as a well-designed surface facility. The

design of the transportation capability is also your task.

For a well-functioning field development program you need to focus on the produced amount, the

capacities of the equipment (bottleneck effect) and the timing of your development. Both the

production and injection capacity, as well as the surface processing or transportation capacity can be

the bottleneck in the system. Also, according to the rules of OPFC, the daily oil production of a field

cannot be greater than one third of its storage capacity. It is important to optimise the number of wells

and capacity of the surface infrastructure to make the operation of the field as efficient as possible.

Before starting the field development you have to take into account that

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• the granted concession rights are valid for 20 years or turns.

• All fields need to be developed with pressure maintenance technology.

• For security reasons the maximal drawdown pressure at water injector wells is 1500 psia.

• Minimal bottom hole pressure at producer wells is 50% of reservoir pressure. Pressure build-

up follows hydrostatic tendency. g is 10 m/s2.

In the Development panel you will find the facilities that can be constructed (Producer well, Injector

well, Oil processing train, Storage tanker, Road, Rail and Pipeline transportation units). By clicking on

Investment button, you can see the CAPEX of the units to be construced.

You can select the number of units (in case of wells), or the capacity (in case of other facilities). When

you have set the desired number or capacity of all the facilities, you may select Accept . Keep in mind

that there are certain limitations for the construction of production facilities.

Note that in one turn you are only able to access the build panel once. That means that you have one

opportunity in each turn to decide what facilities are to be constructed.

Limits for players' inputs

Maximum unit/

capacity built in

period

Step/interval

on the slider

Maximum pieces/

capacity built per

concession

Production wells+Injector wells piece 10 1 N/A

Oil processing train bbl/d 50,000 1,000 4 trains*

Storage tanker bbl 150,000 1,000 6 tanks*

Export route - road bbl/d 50,000 1,000 50,000

Export route - rail bbl/d 100,000 1,000 100,000

Export route - pipeline bbl/d 500,000 1,000 500,000

* Note: The number of units is maximised not the capacity.

It can happen that the revenues of a field will not cover the OPEX and the taxes payable for the given

field. In this case you can abandon the field at zero charge in each period. However, you cannot

abandon a field if there are ongoing construction works within its perimeters.

Below you will find a summary of the different equipment and facilities that could be developed and the

cost-functions of the CAPEX and OPEX related to them.

CAPEX is charged when the construction order is given (except for Oil Processing train). When the

Processing train is being constructed the first part of the CAPEX is charged on the spot while the

remaining parts are charged at the beginning of the following turns.Facilities start the operation in the

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turn following the construction except for the Processing train that is in operation from the 3rd year

following the start of construction.

Production wells are the elemental tools of oil mining. CAPEX of one unit depends on the depth to be

drilled and geological factors. The construction costs contain the installation of ESP (Electrical

Submersible Pump), pipelines connecting to the CPU (Central Processing Station) and other well site

infrastructure. As pressure maintenance technology is used for field development, injector wells must

also be drilled Injector wells are fed by the water of nearby rivers and lakes. Significant part of

operational costs of wells connected to the amount of liquid produced, however the regular

maintenance of wells requires notable financials as well. Capital and operational costs for producer

and injector wells for can be calculated as follows:.

Wells

CAPEX - fix Production or injector wells drilled in period [#] * F$ 5 mln/well

CAPEX - variable Production or injector wells drilled in period [#] * F$ 0.3 mln/1000 ft * Reservoir

depth [1000feet]^1.5

OPEX - fix Production or injector wells in operation [#] * F$ 0.25 mln/well/year

OPEX - variable Produced or injected liquid amount [MMbbl/year]^0.8 * F$ 0.3 mln/MMbbl

Oil processing train or CPU is the heart of each oil field. Their main task is to transform the produced

raw oil into a transportable and marketable quality product. The construction of an oil processing train

takes 3 years. CAPEX emerges as follows: in the first year 30%, in the second year 50%, in the third

year 20% of total cost. As evident as it is the construction cost depends on the capacity of the unit,

with significant initial investment. The OPEX of the unit is also related to the maximal capacity. One

processing train can be built in each period (until reaching 4 trains) of which the minimal capacity is

1,000 bbl/day while the maximal capacity is 50,000 bbl/day.

Oil processing train

CAPEX - fix F$ 25 mln

CAPEX - variable Processing train capacity built in period [Mbbl/d]^0.9 * F$ 8 mln/(Mbbl/d)

OPEX - fix Processing trains in opearation [#] * F$ 0.5 mln/train/year

OPEX - variable Processing train capacity [MMbbl/year] ^0.8 * F$ 2 mln/MMbbl

Storage tankers are required for temporary oil storage, as in some cases the transportation is not

possible immediately. CAPEX of these facilities are proportional to the size and capacity of the unit.

However the operational costs are unit based. One tanker can be built in each period (until reaching 6

tanker units) of which the minimal capacity is 1,000 bbl/day while the maximal capacity is 150,000

bbl/day.

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Storage tanker


CAPEX - variable Storage capacity constructed in period [Mbbl]^0.9 * F$ 0.5 mln/Mbbl

OPEX - fix Storage tankers in operation [#] * F$ 0.1 mln/#/year

OPEX - variable N/A

Players may choose between three different means of transportation. One transportation system can

be built in each period from all types of transportation infrastructures.

For road transportation a road connecting to the main system must be built together with truck filling

heads. Road CAPEX must be paid in the first year road is constructed and only have to be paid.

Whereas filling station CAPEX must be paid each time additional road transport capacity is

constructed. OPEX of road has fix part due after a road is constructed and a variable part depending

on the length of the road. Fix filling station OPEX must be paid based on the number of filling stations

in operation. The external transportation cost in case of road transport is 7 F$/bbl (in excess of the

CAPEX and OPEX of the facilities). One road transportation unit can be built in each period (until

reaching the total road transportation capacity of 50,000 bbl/d) of which the minimal capacity is 1,000

bbl/day while the maximal capacity is 50,000 bbl/day.

Road

CAPEX – fix F$ 1 mln

CAPEX - variable Road lenght [mile] * F$ 0.5 mln/mile

OPEX – fix F$ 0.1 mln/year

OPEX - variable Road lenght [mile] * F$ 0.1 mln/mile/year

Truck filling station


CAPEX - variable Truck filling capacity built in period [Mbbl/d]^0.8 * F$ 0.5 mln/(Mbbl/d)

OPEX – fix Truck filling stations in operation [#] * F$ 1 mln/#/year

OPEX - variable N/A

For transportation with train a pipeline to and a filling station at the nearest rail line must be

constructed. Pipeline CAPEX has a notable large fix part and a variable part dependent of the length

and the capacity of the pipe. CAPEX of filling station follows the same logic, self-evidently without

taking into consideration the distance. Note that each time a new pipeline is constructed a new filling

station must also be built. Fix OPEX of both units is based on the number of facilities built while

variable OPEX of the pipeline depends on its capacity. The external transportation cost in case of

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rail transport is 5 F$/bbl (in excess of the CAPEX and OPEX of the facilities). One rail transportation

unit can be built in each period (until reaching the total rail transportation capacity of 100,000 bbl/d) of

which the minimal capacity is 1,000 bbl/day while the maximal capacity is 100,000 bbl/day.

Pipeline to rail filling

station


CAPEX – variable Pipeline capacity built in period [Mbbl/d]^0.5 * F$ 0.18 mln/(Mbbl/d) *

Pipeline lenght [mile] * F$ 1 mln/mile

OPEX – fix Pipelines to filling stations in operation [#] * F$ 0.1 mln/#/year

OPEX - variable Pipeline capacity in operation [MMbbl/year] * Pipeline lenght [mile] * F$

0.002 mln/MMbbl

Rail filling station


CAPEX - variable Rail filling capacity built in period [Mbbl/d]^0.8 * F$ 2 mln/(Mbbl/d)

OPEX – fix Rail filling stations in operation [#] * F$ 2 mln/#/year

The third mean of transporting the crude oil to the international market is using an pipeline. In this case

a pipeline to the nearest international transportation pipeline and a connection point must also be

constructed. If pipeline capacity has to be increased, a new pipeline and a separate connection point

has to be built. The CAPEX and OPEX functions of these facilities are quite similar to that of the

railway units, however they have significantly higher initial costs. Meanwhile the external

transportation cost in case of pipeline transport is 3 F$/bbl (in excess of the CAPEX and OPEX of

the facilities). One pipeline transportation unit can be built in each period (until reaching the total road

transportation capacity of 500,000 bbl/d) of which the minimal capacity is 1,000 bbl/day while the

maximal capacity is 500,000 bbl/day.

Pipeline


CAPEX -

variable

Pipeline capacity built in period [Mbbl/d]^0.5 * USD 0.18 mln/(Mbbl/d) * Pipeline

lenght [mile] * USD 1 mln/mile

OPEX - fix Pipelines in operation [#] * F$ 0.1 mln/#/year

OPEX -

variable

Pipeline capacity in operation [MMbbl/year] * Pipeline lenght [mile] * F$ 0.002

mln/MMbbl

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Connection point


CAPEX - variable Pipeline capacity [Mbbl/d] * F$ 3 mln/(Mbbl/d)

OPEX - fix Connection points in operation [#] * F$ 0.5 mln/#/year

OPEX - variable N/A

OPEX is incurred from the year the facility is in operation. OPEX is charged at the end of each turn.

Parts of OPEX that not depend on the actual throughput of a unit are paid for all the commissioned

infrastructure irrespective of their utilisation.

It is important to note that:

All costs are multiplied by a Country factor representing the price differences of different countries.

Construction of facilities takes 1 year (except for Oil processing trains). The operation begins in the

year following the construction year.

Facilities operate 300 days a year, taking into consideration the time spent on repair, adjustment and

maintenance.

In case more than one means of transportation is available, oil is transported via the cheapest way. If

the capacity is not enough the rest of the production is transported via other existing means.

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REFINERY

Game concept

A regional company sold its refinery construction. Your company has bought it, and it is your task to

make it as profitable as possible.

Gasoline and diesel product lines have already been built. The refinery will be operational from the

start.

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Units available from the start:

● Crude Distillation Unit (CDU)

● Light Naphtha Hydrotreater

● Heavy Naphtha Hydrotreater

● Light Naphtha Isomerisation Unit

● CCR Reformer Unit

● Gasoil Hydrotreater

The refinery will use crude bought from the market. The utilization rate can be set by adjusting the

imported crude volume.

Due to the limitations of technical processes, the annual refinery (CDU) utilization rate can not be less

than 60%. As a simplification, this restriction does not apply for other refinery units. The minimum

imported crude volume is always set automatically to match the minimum utilization rate. Some units

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have a maximum capacity specified. For the other plants, where it is not specified, there is no

maximum throughput limit.

The company will be able to convert the products into money at market prices.

During the game, you have to make several decisions to operate and expand your refinery in an

optimal way. The goal is to achieve maximum amount of money at the end of the defined period.

The aim of the programmers was to create a game as realistic as possible, but it still contains several

simplifications to make the game easier to understand and more entertaining to play.

Here you can find a long term prognosis about the changes in refinery product prices. (In the table below here short-term forecast refinery stream prices for the first 5 rounds of the game. All prices are in $/t, except crude, which price is in $/bbl unit.

Additionally you got a long-term forecast for the 10th and 15th rounds as well. With the progress of the game, you’ll receive further forecasts. The fact prices can deviate from the forecast. Utility prices are not changing during the game (Hydrogen price does)..)

ROUND 1 2 3 4 5 10 15

UNIT\Year 2013 2014 2015 2016 2017 2022 2027

Crude oil F$/bbl 101.85 103.42 97.32 102.57 98.67 104.91 98.34

LPG F$/t 830.5 963.7 863.2 845.3 848.1 866.5 798.7

Petchem Naphtha F$/t 899.5 931.4 825.8 884.9 754.3 821.2 759.8

Kerosene F$/t 1064.8 1032 1013.5 884.2 932.8 941.6 833

Diesel F$/t 939.8 1026.5 960.3 851.3 807.3 854 793.2

Petchem & Heating Oil F$/t 913 954.2 845 763 698.8 791.2 682.3

Light Fuel Oil F$/t 701 784.5 575.5 592.9 537.3 563.6 566.4

Heavy Fuel Oil F$/t 598.3 640.1 498.9 585.7 475.4 482 463.4

Bitumen F$/t 698.5 717.1 671.1 709 503.7 521.2 569.6

Propylene F$/t 1264.3 1306.7 1442.5 1183.7 1175.2 1261 1123.7

Gasoline F$/t 916.6 1007.9 964.5 905.1 871.1 976.9 798

Base Gasoline F$/t 916.6 1007.9 817.6 819.6 754.9 938 705

Coke F$/t 286.7 289.7 294.7 256.1 264.1 212.5 197.2

Sulphur F$/t 73.4 73.4 66.4 55.5 72.5 66.9 48.6

H2S F$/t 0 0 0 0 0 -30000 -30000

Hydrogen F$/t 5000 5000 5000 5000 5000 20000 20000

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Playing the game

Each turn you have to make different decisions to optimize the efficiency of your refinery.

There will be operational decisions. You can:

● Alter the path of different refinery streams by splitters

● Choose catalyst for HDS/MHC Unit

Along the way, you can construct new facilities to keep up the competitiveness of your company and

to fulfill the environmental regulations and product qualities. Not all technologies are available from the

start. You can see your opportunities in the following table:

from 2013 from 2015 from 2017 from 2019

HDS-MHC available available available available

HDS-MHC Revamp not available available available available

DCU not available not available available available

HPP not available not available not available available

FCC avaiable avaiable avaiable avaiable

Claus Unit not available not available not available available

BBU not available not available available available

Plant availability for construction

Utilities

Fuel: the energy consumed in the process to heat up the materials to the required temperature. Some

units produce fuel gas, but that is not sufficient for the refinery. Excess fuel is bought from the market

as natural gas. Natural gas is also the feed of the Hydrogen Plant. The heating value is the same for

the produced fuel gas from all refinery units and the natural gas: 50 GJ/t. If more fuel is produced in

the refinery units, than consumed, the excess fuel gas is burnt on the refinery flares.

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Electricity: mainly intended to propel the pumps and move the feed and products, but used also for

light and for supplying control systems.

Cooling water: used in cooling processes for condensation and temperature control.

Steam: used for technological processes, heating and stripping. Some units produce more steam,

than the amount necessary for operation. This is indicated with a negative value in steam

consumption. If a unit produces steam then the excess steam is redirected to other units for usage but

it can not be sold on the market. If the amount of produced steam is not sufficient, the necessary

amount is bought from the market.

Hydrogen: Hydrogen is used in hydrotreater and isomerisation units. The price of the hydrogen varies

in time. Hydrogen can be produced or bought from the market. In the first part of the game external

hydrogen is purchased for 5000 F$/t, but starting from 2021 the hydrogen price increases dramatically

to 20000 F$/t (due to the availability from a different supplier). In case of more hydrogen is produced in

Reformer unit, than needed for refinery processes, the excess of hydrogen is burnt on the refinery

flares.

Catalyst : As a simplification, catalyst expenses are calculated as utility, except the HDS/MHC unit, in

which it is your task to change the catalyst every two years. Catalyst price is specified for each unit.

UTILITY (UOM) Price

Fuel (F$/GJ) 12.4

Electricity (F$/MWh) 106

Cooling water (F$/1000 m3 ) 112

Steam (F$/GJ) 10.4

Utility prices

For all refinery units utilities are calculated proportional to the feed. Consumed hydrogen is not

calculated in the feed, but it appears in the product. That is why hydrogen consuming units have an

overall yield over 100%.

PROCESSES IN THE REFINERY

Crude Distillation Unit (CDU)

The first step in a refinery is the distillation of crude into different fractions. Lighter compounds are

separated in the predistillation and main (atmospheric) distillation columns. Heavy compounds have to

be distilled in a vacuum distillation column. The products of CDU are further processed in different

refinery units. Capacity of the CDU is 10000 kt/year. We would like to lay emphasis on the fact that

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Fuelgas is used by the refinery for heating, and it does not show in the final product summary (the final

balance may lack a few kt-s of product).

Crude properties

API gravity (°) 31.32

Sulphur content (%) 1.45

Watson factor 12

For the conversion from barrels to tons the following equation is used:

Barrels of crude oil per metric ton =

Product Yield (wt%) Product destination

Fuelgas 0.02 Used for heating

LPG 1.16 For sale

Light naphtha 2.92 Light Naphtha Hydrotreating

Medium naphtha 6.52 Heavy Naphtha Hydrotreating

Heavy naphtha 7.30 Heavy Naphtha Hydrotreating

Kerosene 7.60 For sale

Light atmospheric gasoil 14.53 Gasoil Hydrotreating or for sale as Petchem and Heating Oil

Heavy atmospheric gasoil 7.30 Gasoil Hydrotreating or for sale as Petchem and Heating Oil

Light vacuum gasoil 7.81 Gasoil Hydrotreating or for sale as Petchem and Heating Oil

Heavy vacuum gasoil 26.04 HDS/MHC, or for sale as Light Fuel Oil

Slop wax 3.00 Delayed Coker, Bitumen Plant, or for sale as Heavy Fuel Oil

Vacuum residue 15.30 Delayed Coker, Bitumen Plant, or for sale as Heavy Fuel Oil

Losses 0.50

Products of the Crude Distillation Unit

27

OPEX

Utility (UOM) Consumption

Fuel (GJ/kt) 650

Electricity (MWh/kt) 7.36

Cooling water (m3/t) 3.3

Steam (GJ/kt) -23

Utility consumption of the Crude Distillation Unit

Light Naphtha Hydrotreater (LN HDS)

The crudes sulphur content appears in its products in different quantities. Sulphur content has to be

removed to fulfill environmental and quality regulations. Sulphur is removed by a catalytic process

called hydrotreating or hydrodesulphurization.



LPG 3.00 For sale

Light Naphtha 96.13 Light Naphtha Isomerisation Unit, or for sale as Petchem Naphtha

H2S 0.07 Burnt or to Claus Unit

Losses 0.20

Products of the Light Naphtha Hydrotreater

OPEX


Fuel (GJ/kt) 500

Electricity (MWh/kt) 6

Cooling water (m3/t) 12

Catalyst (F$/kt) 250

Hydrogen (wt% of feed) 0.2

Utility consumption of the Light Naphtha Hydrotreater

28

Heavy Naphtha Hydrotreater (HN HDS)

It is very similar to the LN HDS. Since heavy naphtha contains slightly more sulphur, desulphurization

requires higher temperature and/or pressure and more hydrogen.

Product Yield (wt%) Product destin ation


Heavy Naphtha 99.55 CCR Reformer, or for sale as Petchem Naphtha


Losses 0.20

Products of the Heavy Naphtha Hydrotreater

OPEX


Fuel (GJ/kt) 300





Utility consumption of the Heavy Naphtha Hydrotreater

Light Naphtha Isomerisation Unit (LNI)

Desulphurized naphtha is not good enough for motor gasoline (mogas). This fuel cut contains mostly

pentanes and hexanes. Research octane number (RON) of light naphtha is around 70. Isomerization

of this constituent can improve its octane number, reaching a good MON without olefinic and

aromatics content.



Isomerate 83.00 Gasoline Blending or Base Gasoline

Residue 15.00 For sale as Petchem Naphtha

Losses 0.10

Products of the Light Naphtha Isomerisation Unit

29

OPEX


Fuel (GJ/kt) 3000




Hydrogen (wt% of feed) 1

Utility consumption of the Light Naphtha Isomerisation Unit

CCR Reformer

Catalytic reforming is a chemical process used to convert petroleum refinery naphthas, typically having

low octane ratings, into high-octane liquid products called reformates which are components of high-

octane motor gasoline. Basically, the process re-arranges or re-structures the hydrocarbon molecules

in the naphtha feedstock into aromatic components as well as breaking some of the molecules into

smaller molecules. The overall effect is that the product reformate contains hydrocarbons with more

complex molecular shapes having higher octane values than the hydrocarbons in the naphtha

feedstock. In so doing, the process separates hydrogen atoms from the hydrocarbon molecules and

produces very significant amounts of byproduct hydrogen gas for use in a number of the other

processes involved in a modern petroleum refinery.



LPG 4.40 For sale

Reformate 88.00 Gasoline Blending or Base Gasoline

Hydrogen 3.10 Used for hydrotreating processes and isomerisation

Losses 0.20

Products of the CCR Reformer

OPEX


Fuel (GJ/kt) 3000




Utility consumption of the CCR Reformer

30

Gasoil Hydrotreater

Sulphur content of diesel is also regulated very strictly. To produce marketable diesel fuel, a gasoil

hydrotreater is necessary to remove sulphur content.



LPG 0.5 For sale

Naphtha 3.7 For sale as Petchem Naphtha

Diesel 94.45 For sale


Losses 0.2

Products of the Gasoil Hydrotreater

OPEX


Fuel (GJ/kt) 300





Utility consumption of the Gasoil Hydrotreater

31

Hydrodesulphurization / Mild Hydrocracker Unit (HDS/MHC)

The aim of an HDS Unit is to pretreat the feed of the FCC Unit. It is similar to hydrotreating, but

operates on higher pressure and temperature. With the proper selection on HDS/MHC catalyst

moderate flexibility can be achieved in the refinery’s product slate.

Two catalyst packages are available to choose from:

HDS catalyst: Removes significant amount of sulphur with low hydrocarbon conversion.

HDS/MHC catalyst: Removes significant amount of sulphur and converts a larger amount of heavy

components into more valuable light hydrocarbons, mainly gasoil.

32

Building the HDS unit: each team must set capacities before building the HDS unit! After the capacities

are set at the header of the panel by clicking on the appropriate one, HDS can be built, before that the

game does not allow the plant to be constructed.

HDS-MHC Unit is built along with the FCC Unit!!

Product Yield in HDS Model

(wt%)

Yield in HDS/MHC mode

(wt%) Product destination

Fuelgas 0.5 0.7 Used for heating

LPG 0.4 0.6 For sale

Naphtha 1.5 5.4 For sale as Petchem Naphtha

HDS Gasoil 12.3 21.0 For sale as Diesel

HDS

Raffinate 84.0 71.2

To FCC Unit, or for sale as Light

Fuel Oil

H2S 1.7 1.7 Burnt or to Claus Unit

Losses 0.6 0.6

Products of the HDS/MHC Unit

OPEX & CAPEX


Fuel (GJ/kt) 300


Cooling water (m3/t) 4,5

Steam (GJ/kt) 250

HDS Catalyst (MMF$/charge)* 3.6

HDS-MHC Catalyst (MMF$/charge)* 6

Hydrogen (wt% of feed) 1.0 (1.2 in MHC mode)

Utility consumption of the HDS/MHC Unit

33

*Both catalyst types lifetime is 2 years, after this period the catalyst has to be changed, otherwise the

unit stops operating. Catalysts have to be ordered a year prior to the change! The construction cost of

the newly built HDS/MHC unit involves a HDS catalyst, with which the unit can start its operation in the

first 2 years. You do not have to wait 2 years if you would like to change the catalyst, you can do that

each year but of course ordering has to be done one year prior to change too.

Total Investment Cost:

Before constructing the unit, you can choose among three maximum capacities. If necessary, the unit

can be revamped to higher capacity later in the game. Until the revamp is complete, the unit operates

at the original, lower capacity.

Capacity (kt/year) CAPEX (MMF$)

2000 200

2600 230

3300 270

Revamp from 2000 to 2600 60



34

Construction time: 2 years

Cost distribution: 1st year: 60%

2nd year 40%

Revamp of HDS/MHC unit takes one year, revamp cost is fully charged in the year of ordering.

Fluid Catalytic Cracking Unit (FCC)

Fluid catalytic cracking (FCC) is a conversion process used in refineries. It is widely used to convert

the high molecular weight hydrocarbon fractions of crude oils to more valuable gasoline, olefinic gases

and other products.

The FCC process vaporizes and breaks the long-chain molecules of the high-boiling hydrocarbon

liquids into much shorter molecules by contacting the feedstock, at high temperature and moderate

pressure, with a fluidized powdered catalyst.

In effect, refineries use fluid catalytic cracking to correct the imbalance between the market demand

for gasoline and the excess of heavy, high boiling range products resulting from the distillation of crude

oil.

FCC Unit is built along with the HDS-MHC Unit!!



Propylene 4.5 For sale

LPG 16.4 For sale

FCC Gasoline 50.3 Gasoline Blending or Base Gasoline

LCO 12.7 For sale as Petchem and Heating Oil

HCO 3.0 For sale as Light Fuel Oil

MCB 4.5 For sale as Heavy Fuel Oil

Losses 4.8

Products of the FCC Unit

35

OPEX & CAPEX


Fuel (GJ/kt) 160



Steam (GJ/kt) -250


Utility consumption of the FCC Unit

Total Investment Cost: 380 MMF$



2nd year 40%

Delayed Coker Unit (DCU)

Delayed coking is a thermal process in which the vacuum residue from crude distillation is converted

into lighter components and coke. The feed is heated in a furnace then confined in a reaction zone or

coke drum under proper operating conditions of temperature and pressure until the unvaporized

portion of the furnace effluent is converted to vapor and coke. Vapor is fractionated into different

products.



Propylene 2.0 For sale

LPG 2.5 For sale

Naphtha* 11.0 Heavy Naphtha Hydrotreating

DC Gasoil* 19.5 Gasoil Hydrotreating

Heavy Coker Gasoil (HCGO)* 36.5 HDS/MHC

Coke 24.0 For sale

Losses 0.5

Products of the DCU Unit

*The marked streams can not leave the refinery without further treatment, therefore the DC Unit

is not operable without the HDS-MHC Unit.

36

OPEX & CAPEX


Fuel (GJ/kt) 1200


Cooling water (m3/t) 0.5

Steam (GJ/kt) 450

Utility consumption of the DCU Unit




2nd year 30%

3rd year 20%

4th year 20%

37

Bitumen Blowing Unit (BBU)

Asphaltic bitumen, normally called "bitumen" is obtained by vacuum distillation or vacuum flashing of

an atmospheric residue. This is “straight run" bitumen. The physical properties of asphalts may further

be modified by 'air blowing'. This is an oxidation process which involves the blowing of air through the

asphalts, either on a batch or a continuous basis. Maximum capacity of the BBU Unit is 400 kt/year.


Bitumen 98.0 For sale

Losses 2.0

Products of the BBU Unit

38

OPEX & CAPEX


Fuel (GJ/kt) 100



Steam (GJ/kt) 200

Utility consumption of the BBU Unit




2nd year 40%

Hydrogen Production Plant (HPP)

39

Hydrogen is required in refineries for hydrotreating processes, to remove sulfur, nitrogen and other

impurities from hydrotreater feed. A limited quantity of hydrogen is produced in the catalytic reforming

of naphthas, but generally the quantity is insufficient to meet the requirements of the refinery.

Hydrogen is produced by the steam reforming of natural gas, which is bought from the market or

consumed from the refinery fuel gas pool (simplification).

The throughput of HPP is always determined by the demand of hydrotreaters. If maximum capacity is

reached, excess hydrogen is automatically bought from the market.


Hydrogen 23.8 Used for hydrotreating processes and isomerisation

Losses 76.2

Products of the HPP Unit

OPEX & CAPEX

Util ity (UOM) Consumption

Fuel (GJ/kt)* 6000



Steam (GJ/kt) -1800


Utility consumption of the HPP Unit

*Specific fuel consumption does not contain the feed natural gas of HPP.

40


Before constructing the unit, you can choose between different maximum capacities at the top right

part of the panel. You can see your options in the table below. After your initial choice, there is no

possibility to expand capacity, so choose carefully.

Feed capacity (kt/year) CAPEX (MMF$)

20 36

40 63

60 86

80 108

100 129

120 149

140 168

160 187

180 205

200 225

220 240

240 260

260 275

280 290

300 305

320 325

340 340

360 355

380 370

400 385



2nd year 40%

41

Claus Unit

Most crude oil contains varying amounts of sulfur. Hydrotreating various distillates from these crudes

generate hydrogen sulfide (H2S), which is converted to elemental sulfur in the Claus Unit to minimize

atmospheric pollution. In the absence of sulfur recovery, the only option would be to burn this gas in

refinery furnaces, releasing huge amounts of sulfur dioxide into the atmosphere. A new government

law will come into force in 2021 imposing a serious penalty on H2S burning: 30000 F$/t.

The throughput of the Claus Unit is always determined by the H2S production of the hydrotreaters.


Sulphur 84.8 For sale

Losses 15.2

Products of the Claus Unit

42

OPEX & CAPEX


Fuel (GJ/kt) 810



Steam (GJ/kt) -3500


Utility consumption of the Claus Unit


Before constructing the unit, you can choose between different maximum capacities at the top right

part of the panel. You can see your options in the table below. After your initial choice, there is no

possibility to expand capacity, so choose carefully.

Feed capacity (kt/year) CAPEX (MMF$)

10 51

20 69

30 82

40 92

50 102

60 110

70 117

80 124

90 130

100 136

110 142

120 147

130 152

140 157

150 162

160 166

170 170

180 175

190 180

200 185



2nd year 40%

43

Gasoline Blending

Motor gasoline has to be blended from different streams to fulfill the environmental and quality

regulations. It is your task to blend marketable gasoline by setting up the splitters correctly. Excess

amount of blending components will be sold as Base Gasoline for a lower price. If the blended

gasoline does not meet the requirements, it will also be sold as Base Gasoline.

Gasoline Blending is not possible until all the components are available.

44

SPG (kg/dm3) RON MON RVP(kPa) Olefin (%) Aromatics (%)

FCC Gasoline 0.75 93.5 82.5 56 27 26

Reformate 0.83 103 92 30 0 81

Isomerate 0.68 90 85 80 1 0

Gasoline blending components and their properties

Property Minimum spec. Maximum spec.

SPG (kg/dm3) 0.73 0.77

RON 95

MON 85

RVP (kPa) 45 60

Olefin (%) 18

Aromatics (%) 35

Requirements for motor gasoline

The properties of blended gasolines are calculated from the weighted average of the blending

component properties. The calculation is volume based (in V/V%). Refinery splitters related to

Gasoline blending can be adjusted with 0.1% units with the help of little +/- signs next to the splitter for

finetuning the gasoline recipes to satisfy the strict specifications.

Example for calculation:

70%(V/V) FCC naphtha + 15%(V/V) Reformate + 15%(V/V) Isomerate

RON = 0.7 * 93.5 + 0.15 * 103 + 0.15 * 90 = 94.4

45

Financial data

Financial data panel indicates the main financial results relating to the refinery.

46

HEADQUARTER

Financial data

Financial data panel at the HQ indicates the main financial results relating to the US & DS parts of the

company.

47

Products & Prices

Products & Prices panel indicates production and prices on market in the last year and also shows the

expected amounts of products annually.

48

Import Crude

In this panel your team can define the amount of crude import annually. Using credit is also your

team’s decision.

NOTE: Importing crude to the min. capacity of the refinery is an automatic decision in the game. You

can import crude more times in a round. You can check the amount of the crude imported at refinery

on the Product & Capacity panel.

Technical comment: You can set up the amounts with dragging and sliding the tiny arrow above the

bar.

49

Repaying credit

In this panel your team can repay from the existing amounts of credit. Credit repayment can occur any

time when the team wishes but interest of the credit is subtracted immediately in the same round the

credit is requested.

50

Final Scoring

40 teams are going to get to the Strategy Simulation round. Ten teams who scored best in the

Upstream part of the game, ten teams with the best scores in the Downstream part, and twenty teams

with the best overall score (apart from the teams already qualified with the US or DS parts). We will

also take into consideration and evaluate the effects of your decisions made in the final turn (#Round

18). After that we rank the teams according to how much cash they have on their account and the

remaining unpaid credit is substracted from the final result. Then we rank the teams of US, DS and

overall preformance.

Documents

Game Rules 2013