Freshhh Game Rules 2013

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    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.

    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, Freshhhfields 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 dont 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

    companys 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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    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 rounds results financial accounting and the effects of decision-making - only show when a

    turn change occurs)

    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%.

    ! . .

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    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 dont 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 companys

    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 fields

    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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    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.)

    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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    &

    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, its 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 parameterOPEX and CAPEX levels are somewhat different in the

    countries you operate

    CAPEX parameter

    Government takeThe % 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

    pressure14.7 psia

    Methane density 0.037463 pound / cubic ft

    Wellbore radius 0.29 ftthe radius 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.

    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 cancalculate - 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 followingformulas:

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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(o/w)+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

    A: field area [sq ft]

    n: number of producers

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    Estimationof 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:

    A: field area [sq ft]

    n: number of producers

    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.

    ,

    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

    Investmentbutton, 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 mindthat 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

    concessionProduction 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 - variableProduction 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 - fix F$ 1 mln

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

    RoadCAPEX 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 fix F$ 1 mln

    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 whilevariable 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 - fix F$ 10 mln

    CAPEX variablePipeline 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 - variablePipeline capacity in operation [MMbbl/year] * Pipeline lenght [mile] * F$

    0.002 mln/MMbbl

    Rail filling station

    CAPEX fix F$ 5 mln

    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.

    PipelineCAPEX - fix F$ 10 mln

    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 - fix F$ 20 mln

    CAPEX - variable Pipeline capacity [Mbbl/d]^0.8 * 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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    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 minimumimported 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.( . $, , $ .

    . , . . ( )..)

    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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    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

    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$/GJ) 12.4Electricity (F$/MWh) 106

    Cooling water (F$/1000 m) 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

    ()

    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

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    OPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 650

    Electricity (MWh/kt) 7.36

    Cooling water (m /t) 3.3

    Steam (GJ/kt) -23

    Utility consumption of the Crude Distillation Unit

    ( )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.

    Product Yield (wt%)Product destination

    Fuelgas 0.80 Used for heating

    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

    Utility (UOM) Consumption

    Fuel (GJ/kt) 500

    Electricity (MWh/kt) 6

    Cooling water (m /t) 12

    Catalyst (F$/kt) 250

    Hydrogen (wt% of feed) 0.2

    Utility consumption of the Light Naphtha Hydrotreater

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    ( )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 destination

    Fuelgas 0.40 Used for heating

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

    H2S 0.15 Burnt or to Claus Unit

    Losses 0.20

    Products of the Heavy Naphtha Hydrotreater

    OPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 300

    Electricity (MWh/kt) 6

    Cooling water (m /t) 8

    Catalyst (F$/kt) 200

    Hydrogen (wt% of feed) 0.3

    Utility consumption of the Heavy Naphtha Hydrotreater

    ()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.

    Product Yield (wt%)Product destination

    Fuelgas 2.9 Used for heating

    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

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    OPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 3000

    Electricity (MWh/kt) 40

    Cooling water (m /t) 25

    Catalyst (F$/kt) 500

    Hydrogen (wt% of feed) 1

    Utility consumption of the Light Naphtha Isomerisation Unit

    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.

    Product Yield (wt%)Product destination

    Fuelgas 4.30 Used for heating

    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

    Utility (UOM) Consumption

    Fuel (GJ/kt) 3000

    Electricity (MWh/kt) 95

    Cooling water (m /t) 14

    Catalyst (F$/kt) 500

    Utility consumption of the CCR Reformer

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

    hydrotreater is necessary to remove sulphur content.

    ProductYield (wt%)Product destination

    Fuelgas 1.0 Used for heating

    LPG 0.5 For sale

    Naphtha 3.7 For sale as Petchem Naphtha

    Diesel 94.45 For sale

    H2S 0.9 Burnt or to Claus Unit

    Losses 0.2

    Products of the Gasoil Hydrotreater

    OPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 300

    Electricity (MWh/kt) 15

    Cooling water (m /t) 5

    Catalyst (F$/kt) 300

    Hydrogen (wt% of feed) 0.75

    Utility consumption of the Gasoil Hydrotreater

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    / (/)

    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 refinerys 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.

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    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!!

    ProductYield 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

    HDSRaffinate

    84.0 71.2 To FCC Unit, or for sale as LightFuel Oil

    H2S 1.7 1.7 Burnt or to Claus Unit

    Losses 0.6 0.6

    Products of the HDS/MHC Unit

    OPEX & CAPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 300Electricity (MWh/kt) 36

    Cooling water (m /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

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    *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

    Revamp from 2600 to 3300 80

    Revamp from 2000 to 3300 140

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    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 (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!!

    Product Yield (wt%)Product destination

    Fuelgas 3.8 Used for heating

    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

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    OPEX & CAPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 160

    Electricity (MWh/kt) 50

    Cooling water (m /t) 25

    Steam (GJ/kt) -250

    Catalyst (F$/kt) 200

    Utility consumption of the FCC Unit

    Total Investment Cost:380 MMF$

    Construction time: 2 years

    Cost distribution: 1st year: 60%

    2nd year 40%

    ()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.

    Product Yield (wt%)Product destination

    Fuelgas 4.0 Used for heating

    Propylene 2.0 For sale

    LPG 2.5 For sale

    Naphtha* 11.0 Heavy Naphtha Hydrotreating

    DC Gasoil* 19.5 Gasoil HydrotreatingHeavy 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.

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    OPEX & CAPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 1200

    Electricity (MWh/kt) 25

    Cooling water (m /t) 0.5

    Steam (GJ/kt) 450

    Utility consumption of the DCU Unit

    Total Investment Cost:550 MMF$

    Construction time: 4 years

    Cost distribution: 1st year: 30%

    2nd year 30%

    3rd year 20%4th year 20%

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    ()

    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.

    ProductYield (wt%)Product destination

    Bitumen 98.0 For sale

    Losses 2.0

    Products of the BBU Unit

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    OPEX & CAPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 100

    Electricity (MWh/kt) 20

    Cooling water (m /t) 2

    Steam (GJ/kt) 200

    Utility consumption of the BBU Unit

    Total Investment Cost:50 MMF$

    Construction time: 2 years

    Cost distribution: 1st year: 60%

    2nd year 40%

    ()

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    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.

    Product Yield (wt%)Product destination

    Hydrogen 23.8 Used for hydrotreating processes and isomerisation

    Losses 76.2

    Products of the HPP Unit

    OPEX & CAPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt)* 6000

    Electricity (MWh/kt) 60

    Cooling water (m /t) 10

    Steam (GJ/kt) -1800

    Catalyst (F$/kt) 780

    Utility consumption of the HPP Unit

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

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    Total Investment Cost:

    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 149140 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

    Construction time: 2 years

    Cost distribution: 1st year: 60%

    2nd year 40%

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    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.

    ProductYield (wt%)Product destination

    Sulphur 84.8 For sale

    Losses 15.2

    Products of the Claus Unit

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    OPEX & CAPEX

    Utility (UOM) Consumption

    Fuel (GJ/kt) 810

    Electricity (MWh/kt) 100

    Cooling water (m /t) 40

    Steam (GJ/kt) -3500

    Catalyst (F$/kt) 1200

    Utility consumption of the Claus Unit

    Total Investment Cost:

    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 11070 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

    Construction time: 2 years

    Cost distribution: 1st year: 60%

    2nd year 40%

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    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.

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    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 81Isomerate 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

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

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

    company.

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

    expected amounts of products annually.

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

    teams 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.

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    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.

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    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 teamswith 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.