Bases Feed Epc Parte 2vi Libre

Proyecto Modernizacin Refinera Talara
ESPECIFICACIONES GENERALES DE LOS

TRABAJOS A REALIZAR (MJS)
DE
CONTRATISTA FEED-EPC
PROCESO POR COMPETENCIA INTERNACIONAL
NPCI-002-2008-OFP/PETROPERU
PARA CONTRATAR LA EJECUCIN
DELSERVICIO FEED-EPC PARA EL PROYECTO
MODERNIZACIN REFINERA TALARA
PETROPERU S.A. VOLUME 2
TALARA REFINERY MODERNIZATION PROJECT MASTER JOB SPECIFICATION
FEED-EPC CONTRACTOR IFP DATE: JULY 20, 2009

International Bidding Process NPCI-002-2008-OFP/P ETROPERU
VOLUME 2

MASTER JOB SPECIFICATION

Table of Contents
Master Job Specification Preamble
Part A Project Perspective
Part B Bases of Design
Part C Services & Deliverables FEED & EPC
- Annex C1 FEED
- Annex C2 EPC
PETROPERU, S.A. VOLUME 2
TALARA REFINERY MODERNIZATION PROJECT PREAMBLE TO MASTER JOB SPECIFICATION
FEED-EPC CONTRACTOR IFP PAGE 1 OF 4
DATE: JULY 04, 2009
PREAMBLE
TALARA REFINERY MODERNIZATION PROJECT PROFILE
PETROPERU, S.A. has decided to develop a very important project to expand and
upgrade its Talara Refinery, hereinafter referred to as Talara Refinery Modernization
(TRM) Project. The Talara Refinery is located on the northwest coast of Peru in the city
of Talara, in the province of Talara, Department of Piura, approximately 1100 km by
highway from the city of Lima. The Refinery is bordered to the north by the Bay of Talara;
to the south by Punta Arenas residential area; to the east by the urban areas of the city of
Talara; and to the west by the Pacific Ocean and public beaches.
The TRM Project is intended to increase Refinery throughput capacity from 62,000 to
95,000 BPSD and allow it to broaden its charge slate flexibility, to process heavier crude
oils, produce a broader range of products and meet minimum Peruvian product sulfur
level requirements.
International Contractors who have been prequalified to receive the FRONT END
ENGINEERING DESIGN, ENGINEERING, PROCUREMENT, AND CONSTRUCTION
(FEED-EPC) CONTRACTOR Invitation For Proposal Package (IFP) for the TRM Project
will be provided with an IFP, which is comprised of a number of commercial and legal
documents including the Agreement
1
and these Master Job Specifications (MJS) which
define the technical aspects of the Project, and the associated Services and Deliverables
expected to be provided by the FEED-EPC CONTRACTOR.
The TRM Project FEED-EPC Agreement is a bit unique, being sub-divided into a
Reimbursable Cost (RC) FEED Phase that comprises the Scope Definition and the Pre-
construction Stages which is intended to immediately change through Conversion into a
Lump Sum (LS) EPC Phase. If Conversion is not immediate, the project, at Employers
option, is expected to continue working on an RC basis, carrying out the initial EPC Phase
PEP activities until Conversion is achieved or Employer decides to pursue alternate
actions. The period of time between completion of the Scope Definition Stage and
Conversion to the LS EPC Phase, will be referred to as the Pre-Construction Stage.

1
The term Agreement may also be referred to as Contract in the MJS. In such instances, the definition of the term
Agreement applies.

DATE: JULY 04, 2009
What Are These Master Job Specifications and How Are They to be Used
The MJS frames the technical requirements, design standards and administrative
expectations for the TRM Project and are intended to set the criteria for the Bidders bid
and, if successful, subsequent implementation of FEED and EPC activities. Although the
MJS is an important and integral part of the bidding process for the TRM Project, it will
continue to be upgraded and maintained during the planning and execution of the Work
by the successful EPC Bidder, except for the specific information items listed in Schedule
20 of the EPC Conditions entitled Relied Upon Information (RUI), other information
provided in MJS is to be reviewed, adjusted or confirmed by the selected FEED-EPC
CONTRACTOR and thus not be construed as RUI.
Bidders are expected to develop their technical and project execution responses to the
FEED-EPC IFP utilizing the background information and expectations contained in
Volume 2 MJS, Parts A, B, C, and Annexes C1 & C2.
How Are the Master Job Specifications Organized
The TRM Project Agreement incorporates the Contract Agreement, the EPC
Conditions, with their respective Exhibits, Appendices and this MJS. In the event of
conflicts between the documents, the Contract Agreement and the EPC Conditions take
precedence over the MJS. This MJS describes the TRM Project in sufficient scope and
detail for FEED-EPC CONTRACTOR to perform all Work related to the FEED and EPC
phases of the Project. In summary, the MJS describes the minimum administrative,
procedural and technical requirements that the Contractor must satisfy in accomplishing
the FEED-EPC work for the TRM Project.
The MJS is intended to be a dynamic document providing flexibility and assurance that all
significant matters relating to Work scope, safety, environment and operation are fully
addressed. Any change to the MJS, after Agreement award, will be administered
according to what the Agreement establishes. It is intended that the MJS transition
through all phases of the project so that tenses should be adjusted accordingly.
The MJS is structured in the following manner:
DATE: JULY 04, 2009
This MJS Preamble describes the overall structure of the MJS, the contents of its several
Parts and the document numbering protocol used in its formation and maintenance. It
should be noted that the complete index for each component of the MJS is designated by
a Title, Revision Number (initial issue is Revision 0), Date and Pages. Items may be
revised from time to time during the execution of the project, in which event the Revision
Number, Date and Pages will be revised. New items/components may be added with
additional lines for Title, Revision, Date and Pages.
Part A Project Perspective presents a holistic, cross-sectional overview of the TRM
Project, its objectives, scope, current strategic plans and expectations in order to provide
the prospective FEED-EPC CONTRACTOR with the background and insight with which to
frame, prepare and present its Proposal for the Work. Part A can be characterized as an
organized collection of relevant information that can be supplemented and developed into
the initial formal version of the Project Execution Plan for the TRM Project. The Project
Perspective currently included in the MJS should not be considered a formal Project
Execution Plan, but rather an information reference and format for the Contractors PEP.
It is expected that FEED-EPC CONTRACTOR will expand this Project Perspective
structure and format into a Preliminary Project Execution Plan (P-PEP) providing
additional details regarding its intentions for execution of the FEED-EPC effort, based on
its experience managing and implementing projects of this type, size and complexity.
This expanded P-PEP is to be submitted by the FEED-EPC CONTRACTOR at the
Agreement Signature.
TALARA REFINERY MODERNIZATION PROJECT
FEED-EPC CONTRATOR
Master Job Specification
Preamble
Services & Deliverables
FEED & EPC
PART C
EPC
Annex C2
FEED
Annex C1
Project
Perspective
PART A
Bases of Design
PART B
DATE: JULY 04, 2009
A copy of the full Table of Contents for Part A is included herewith as Exhibit 1 for
convenience. Beyond the Table of Contents Part A is self-explanatory and thus includes
no further Introductory section.
Part B Bases of Design presents technical information and specifications needed to
carry out the FEED and EPC phases of the TRM Project. It includes descriptions of
existing and expanded/modernized Talara Refinery Facilities/Operations, design
philosophy and refinery optimization objectives, Licensor BDP deliverables, and
geological, climatological, meteorological data and applicable Standards.
A Table of Contents for Part B is included herewith as Exhibit 2.
Part C Services and Deliverables lists the various services and deliverables
expected to be provided by the FEED-EPC CONTRACTOR over the course of the TRM
Project. Part C presents a general description of the roles and responsibilities scope
assigned to the Contractor and the distinction between each. Part C also addresses the
Project Instructions and their respective application to the various phases of the Work.
Annex C1 FEED defines the expected services and deliverables for the
FEED phase of the Work including development of the Open Book Cost
Estimate and steps to achieve Conversion.
Annex C2 EPC presents the expected services and deliverables for the
EPC phase of the Work through Commissioning, Start-up, Performance
Testing and Final Acceptance of the Work.
A Table of Contents for Part C and Annexes C1 and C2 is included herewith as Exhibit 3,
4 and 5 respectively.
TALARA REFINERY MODERNIZATION PROJECT PREAMBLE
FEED-EPC CONTRACTOR IFP MASTER JOB SPECIFICATION
PAGE 1 OF 1
DATE: JULY 04, 2009
ANNEX 1
PART A PROJECT PERSPECTIVE
Table of Contents
1. Strategic & Business Objectives
2. Project Objectives
3. Scope of Work
4. Risk Management Plan
5. Organization Plan
6. Master Plan / Schedule
7. Funding Plan
8. Contracting Plan
9. Value Engineering Plan
10. Constructability Plan
11. Design Management Plan
12. Materials Management Plan (including Procurement Plan)
13. Construction Management Plan
14. Start-Up Management Plan
15. Environmental Management Plan
16. Cost Management Plan
17. Schedule Management Plan
18. Quality Management Plan
19. Safety/Security Management Plan
20. Information Management Plan
21. Special Considerations Plan
22. Appendix Glossary
PAGE 1 OF 6
DATE: JULY 10, 2009
ANNEX 2
PART B BASES OF DESIGN
Table of Contents
1. INTRODUCTION
2. FACILITY DESCRIPTIONS
2.1 Existing ISBL
2.1.1 Primary Distillation Unit (UDP)
2.1.2 Vacuum Crude Distillation Towers (UDV-I, II)
2.1.3 FCC Unit (UFCC)
2.1.4 Gas Recovery Unit (URG)
2.1.5 Merox Unit
2.1.6 Caustic Treatment Plant
2.2 Existing OSBL
2.2.1 Utilities
2.2.2 Process Control System
2.2.3 Flare System
2.2.4 API and CPI Separators
2.2.5 Storage Tankage
2.2.6 Dispatch Systems
2.2.7 Buildings
2.3 Expanded/Modernized ISBL (Process Units)
2.3.2 Vacuum Distillation Unit I (VDU-I)
2.3.3 Vacuum Distillation Unit II (VDU-II)
2.3.4 Vacuum Distillation Unit III (VDU-III)
2.3.5 Coking of Vacuum Residue (UCK)
PAGE 2 OF 6
DATE: JULY 10, 2009
ANNEX 2
Table of Contents
2.3.6 HDSN Naphtha Hydrotreatment
2.3.7 Naphtha Splitter and Reformer
2.3.8 Fluid Cat Cracker Unit (FCCU) and Gas Recovery Unit (GRU-I)
2.3.9 Fluid Cat Cracker Gasoline Hydrotreatment (HDSG)
2.3.10 Diesel Hydrotreater (HDSD)
2.3.11 Amine Plant
2.3.12 Sulphuric Acid Plant
2.3.13 Hydrogen Plant
2.3.14 Caustic Treatment Units
2.3.15 LPG Treatment Plant
2.4 OSBL (General Utilities and Offsites)
2.4.1 Power Plant Cogeneration and Self-generation (Heaters & Boilers)
2.4.3 Feed, Intermediate and Products Storage
2.4.3.1 Feed (Crude and Reduced Crude)
2.4.3.2 Intermediate
2.4.3.3 Products
2.4.4 Special Utilities and Offsites
2.4.4.1 Air for instruments
2.4.4.2 Existing Flare System
2.4.4.3 New Smokeless Steam Assisted Flare
2.4.4.4 Flare Gas Recovery System
2.4.4.5 Deep Sea Piping Installation for Cooling Water
PAGE 3 OF 6
DATE: JULY 10, 2009
ANNEX 2
Table of Contents
2.4.4.6 Seawater/Wastewater Discharge Line
2.4.4.7 Segregated Wastewaster Stream Treatment
Oil/Water Separation
Biological Treatment System
Chemical Sewer Treatment System
2.4.4.8 Installation of Fire Water System
2.4.4.9 Fuel Gas System
2.4.4.10 Nitrogen Pressure Swing Absorption Plant
2.4.4.11 Buildings
Administrative, Technical Office Building and
Laboratory Building
Central Control and Operations Center Building
2.4.4.12 Harbor Facilities
Liquid Product Loading Dock
Upgrades in the existing Shipload Dock
Upgrade the Ballast Plant
3. DESIGN BASIS
3.1 General Philosophy and Optimization Objectives
3.1.1 Reliability and Service Factor
3.1.2 Capacity and Turndown
3.1.3 Design Philosophy
3.1.4 Unit System of Measurement
PAGE 4 OF 6
DATE: JULY 10, 2009
ANNEX 2
Table of Contents
3.2 Feed and Product Specifications
Feed
3.2.1 Crude Oil
3.2.1.1 Napo Crude Oil
3.2.1.2 Talara Blend Crude Oil
3.2.1.3 Talara Petrobras Crude Oil
3.2.1.4 Talara Petrotech Crude Oil
3.2.1.5 Crude Oil Slate
3.2.1.6 Reduced Crude Iquitos
3.2.2 Crude Oil Assays
3.2.2.2 Talara Crude Oil
3.2.3 Product/By Product Specifications
3.2.3.1 Gasoline
3.2.3.2 LPG
3.2.3.3 Kerosene/Jet Fuel
3.2.3.4 Diesel/Fuel Oil
3.2.3.5 Solvents
3.2.3.6 Asphalt
3.2.3.7 Sulphuric Acid
3.2.3.8 Petroleum Coke
PAGE 5 OF 6
DATE: JULY 10, 2009
ANNEX 2
Table of Contents
3.3 Licensor Basic Design Packages (L-BDP)
3.3.1 Bases and Criteria for the Licensed Basic Design
3.3.2 Specifications for the Licensed Basic Design
3.3.3 Main Equipment Sheets
3.3.4 Revision and Conformity of Drawings and Documents for
construction
3.3.5 Inspection of the Equipment Manufacturing
3.3.6 Training
3.3.7 Deliverables
3.3.8 Coordination
3.4 Additional Information
3.4.1 Location
3.4.2 Plot Plan of Existing Facilities
3.4.3 Local Conditions
a) Seismic Conditions
b) Meteorological Data
3.4.4 Expanded/Modernized Utility Specifications
a) Steam
b) Electric Power
c) Nitrogen
d) Plant Air/Air for Instruments
e) Water
1) Boilers Feed Water
2) Fresh water (Osmotized sea Water)
PAGE 6 OF 6
DATE: JULY 10, 2009
ANNEX 2
Table of Contents
3) Cooling Water
4) Fire Water
5) Potable Water
6) Refining Process Water Effluent
7) Natural Gas (Typical quality)
8) Hydrogen
9) Stack Emission
10) Noise Abatement
1. STANDARDS
1.1 Codes and Specifications
1.2 Regulations
1.3 Design Practices
1.4 Value Engineering Practices (VIP)
1.5 Work Breakdown Structure (WBS)
1.6 Equipment and Line Numbering
1.7 Drawing Management System
2. APPENDICES
5.1 Preliminary Plot Plan (this Plot Plan included herein for Background
Information Only)
5.2 Preliminary Work Breakdown Structure (WBS)
5.3 A.D. Little/ENGlobal Engineering, Inc. Conceptual Engineering Report
(Document 10-371257-004, Rev. 3 Project No. 10-371257) - included
herein for Background Information Only
5.4 A.D. Little/ENGlobal Engineering, Inc. Implementation Plan (Document 10-
371257-007 Project No. 10-371257)
5.5 A.D. Little/ENGlobal Engineering, Inc./PETROPERU S.A. Environmental
Viability Study (Document 10-371257-033, Rev. 4 April 2008)
PAGE 1 OF 1
DATE: 11 DE JULIO DE 2009
ANEXO 3
PART C SERVICES AND DELIVERABLES
FRONT END ENGINEERING DESIGN - ENGINEERING, PROCUREMENT,
AND CONSTRUCTION
(FEED & EPC)
Table of Contents
1. Introduction
2. Project Participants
3. General Distinction between FEED and EPC Services, Deliverables,
Performance Expectations and Success Factors
4. Project Instructions
PAGE 1 OF 1
DATE: 18 JULY 2008
ANEXO 4
ANNEX C1 FEED
SERVICES AND DELIVERABLES
Table of Contents
International Process NPCI-002-2008-OFP/PETROPERU
1. Introduction
2. Input Information/Data
3. FEED-EPC Contractor Scope of Work During FEED Phase
3.1 Phase Planning, Management and Control
3.2 Interaction and Relationship with PT, PMC and Licensors
3.3 Talara Refinery Modernization Complex Integration and Optimization
3.4 Open Art Unit BDP Preparation
3.5 Finalization of Licensor BDPs
3.6 BDPs to Complete FEED Packages
3.7 Preparation of OBE
3.8 Project Execution Planning
3.9 Long Lead Item Procurement
4. FEED-EPC Contractor Scope of Work During Pre-Construction
5. FEED Package Readiness for Potential Third Party Involvement
PAGE 1 OF 1
DATE: 10 DE JULIO DE 2009
ANEXO 5
ANNEX C2 EPC
SERVICES AND DELIVERABLES
Table of Contents
1. Introduction
2. FEED-EPC Contractor Scope of Work During EPC Phase
2.1 Transitioning from Pre-Construction
2.2 Planning, Management and Control Phase
2.3 Interaction and Relationship with PT, PMC and Licensors
2.4 Detailed Engineering, Procurement, Construction, Commissioning/Start-up/
Performance Testing
2.5 Performance Testing
2.6 Final Acceptance
TALARA REFINERY MODERNIZATION PROJECT PART A PROJECT PERSPECTIVE TO
PAGE 1 OF 1
DATE: JULY 04, 2009
Table of Contents
1. Strategic & Business Objectives
2. Project Objectives
3. Scope of Work
4. Risk Management Plan
5. Organization Plan
6. Master Plan / Schedule
7. Funding Plan
8. Contracting Plan
9. Value Engineering Plan
10. Constructability Plan
11. Design Management Plan
12. Materials Management Plan (including Procurement Plan)
13. Construction Management Plan
14. Start-Up Management Plan
15. Environmental Management Plan
16. Cost Management Plan
17. Schedule Management Plan
18. Quality Management Plan
19. Safety/Security Management Plan
20. Information Management Plan
21. Special Considerations Plan
Appendix Glossary
TALARA REFINERY MODERNIZATION PROJECT PART A PROJECT PERSPECTIVE
PAGE 1 OF 48
DATE: JULY 4, 2009
PART A
PROJECT PERSPECTIVE
1. STRATEGIC AND BUSINESS OBJECTIVES
In agreement with the national policies of the environment protection, defined in
Law N 28694 Law that regulates the amount of Sulphur in Diesel, which
states that the commercialization of Diesel that contains more Sulphur than 50
ppm by weight will be forbidden on the internal market, PETROPERU S.A.
started the Talara Refinery Modernization (TRM) Project as part of a program to
improve the quality of air and regional initiatives to use energy-efficient
technology in the production of clean fuels.
The Strategic and Business Objectives of the PETROPERU S.A. TRM Project
are as follows:
OBJECTIVE 1: Increase and support the company profitability;
OBJECTIVE 2: Keep and increase the participation in the hydrocarbons
commercialization market
OBJECTIVE 3: Increase the refining capacity and improve its flexibility.
It is included the reduction of the sulphur content
according to Law.
To comply with these objectives, it will be considered the following:
Comply with Peruvian rules, regulations and Laws that establish a maximum
limit of 50 ppm Sulphur content for motor fuels and gasoline products,
including D.S. No. 025-2005-EM and Law N 28694.
Product fuels that align with international product quality specifications at
competitive prices.
Improve the Company profitability by reducing dependence on light crude
purchases, which come at higher cost than heavy crudes, and develop the
operating flexibility to permit the different crude processing.
Improve Operating Costs (OPEX) through utilization of bottom conversion
processes and energy consumption optimization.
Expand the Talara Refinery capacity from 62,000 BPSD to 95,000 BPSD.
Increase the PETROPER S.A. participation in the national combustibles
market.
PAGE 2 OF 48
DATE: JULY 4, 2009
Improve the national Trade Balance by reducing the level of imports of
diesel fuels, high-octane gasoline components and other products.
2. PROJECT OBJECTIVES
The Project Objectives of the PETROPERU S.A. TRM Project are as follows:
Scope:
o Modify the refinery to be able to produce Diesel 2 and Gasoline with
a maximum content of 50 ppm of sulphur.
o Extend and modernize the refinery to process heavy crudes and
reduce the fuel oil production.
Time:
o Develop the project in the shortest period technically and
economically feasible.
Cost:
o Develop the TRM Project within the approved Investment Amount.
In accordance with the Scope Objectives, the TRM Project Product is defined
as:
Modernized Talara Refinery with capacity to produce Diesel 2 and Gasoline
with less than 50 ppm of sulphur, to process heavy crudes and to reduce
the fuel oil production.
The TRM Project objectives will be complied following the next specific
guidelines:
Add processes and facilities that allow the processing of heavier crude oils
at lower or reduced cost to promote new investments.
Improve the trade balance of the country, replacing imports of diesel and
components of high octane, and purchase crude oil at lower costs.
Be adapted to both the diversification of Energy Counterfoil by marketing
the Natural Gas extensively, and to other changes in the market.
Generation of employment and added national value
1
.

1
Question 22 Round 1 (Contractor must comply with the Peruvian law and the Employers
internal policies which are in force during the execution of the works, and with the commitments
stated in Attachment 12 of the Information to Bidders.)
PAGE 3 OF 48
DATE: JULY 4, 2009
Upgrade the Talara Refinery by:
- Incorporating facilities that reduce sulphur content, improve the quality
of fuels produced in the Refinery by aligning with international
specifications for low sulphur fuels.
- Expand and upgrade existing facilities and construct New Facilities
and Units to enhance the Talara Refinerys capability of producing
greater volumes of diesel engine and distillate fuels and elevate
octane levels over that which can be presently produced at the
Refinery.
- Introduce advanced process controls to improve the Talara Refinerys
profitability and security.
- Develop the Talara Refinerys capability for self-generation of
electrical and thermal energy from residual energies derived from
processing of bottoms and heavier crude.
- Commercialization of additional by-products such as sulphuric acid
and coke into the national and international markets.
- Develop the Project on the most economical Capital Cost (CAPEX)
basis, using updated technologies that support low CAPEX and OPEX
goals and objectives achievement.
- Motivate the interest of internationally recognized, experienced, high
qualified Contractors and Licensor organizations to cooperatively
participate in the development, design, procurement, construction,
commissioning, testing and start-up of the Project within established
cost and schedule targets.
- Modernize the Refinery capabilities and operational flexibility by
including state-of-the-art technologies and processes.
- Consider the use of qualified Peruvian local resources, including labor,
suppliers, manufacturers, etc.; according to the Social Management
Plan of the EMPLOYER.
- Minimize impact on local environment and infrastructure during
construction and operation of the modernized facilities.
- Minimize interference/interruptions to ongoing refinery operations
during tie-ins, construction and start-up of the modernized facilities to
the maximum extent practical.

PAGE 4 OF 48
DATE: JULY 4, 2009
- Recognize and adopt appropriate Best Practices and Value
Improving Practices (VIPs) to maximize the success potential of the
TRM Project and achieve top quintile performance results.
3. SCOPE OF WORK
The optimized configuration of the Talara Refinery is to include the
desulphurization of diesel and gasoline engine fuels, conversion of bottom,
provide for the increase of the average octane of gasoline, develop the
capability for production of sulphuric acid production and generation of electrical
energy for self-consumption. The physical Scope of Work therefore includes
the following Units and Facilities:
New and Expanded/Upgraded Facilities:
- UDP - Crude (Atmospheric) Distillation Unit
- UDV -I - Vacuum Distillation Unit I
- UDV -III - Vacuum Distillation Unit III
- UCK - Coking/Gasification & Treatment Unit
- HDSN - Naphtha Hydrotreater and Splitter
- URCN Naphtha Reformer
- UFCC - Fluid Catalytic Cracking Unit & revamp of URG
- HDSG - Fluid Cat Cracker Gasoline Hydrotreater
- URG I Gas Recovery Unit I
- URG II Gas Recovery Unit II
- HDSD - Diesel Hydrotreater
- Jet Fuel A 1 Treatment Plant
- Amine Plant
- Sulphuric Acid Plant
- Hydrogen Plant
- Caustic Treatment Units
- Electric power generation and Co-Generation Plant
- GLP Treatment
PAGE 5 OF 48
DATE: JULY 4, 2009
- Waste process water Stripper
- Modification and General Extension of Utilities and Industrial
Facilities Units
- Feed, Intermediate and Product Storage
- Instrument Air System
- Steam Assisted Flare System
- Flare Gas Recovery System
- Sea Water Uptake Installation for Cooling Water
- Seawater/Wastewater Discharge Line
- Segregated Wastewater Stream Treatment
2
- Fire Water System
- Fuel Gas System
- Nitrogen Pressure Swing Absorption Plant
- Buildings (Administration/Technical Office, Laboratory Building)
- Harbors Facilities Improvements
- Other Facilities identified in the Project execution and the attached
Figure
The optimized configuration of the TRM Project which will be confirmed by
FEED-EPC CONTRACTOR, including the Units and Processes noted above is
diagrammatically shown in Exhibit 1-1.
Additional descriptive information relative to the Scope of Work is included in
MJS Part B Bases of Design. Furthermore, additional information regarding
Services and Deliverables requirements are included in Part C Services and
Deliverables.
FEED-EPC CONTRACTOR shall ensure that TRM Project Objectives for such
considerations as operational flexibility, reliability, turndown rate, turnaround
cycle (duration between turnarounds), spare parts philosophy, etc., as
described in Parts A and B of this MJS are fully integrated into the design,
procurement, and construction of the TRM Project facilities.

2
Question 33 Round 1 (Successful bidder will receive more details than those ones stated in
the bases.)
PAGE 6 OF 48
DATE: JULY 4, 2009
In design developing, constructing and starting-up these new and/or expanded
facilities, FEED-EPC CONTRACTOR shall ensure that these facilities are fully
integrated into the existing facilities and that all interfaces between the existing,
expanded and new Units are appropriately considered and included. It is
expected that certain Units works, where expansion and/or modifications are
required, will be done within, or in close proximity to, existing operating Units.
For certain of these operating Units, where shutdowns will be necessary to
allow for the integration, upgrade or expansion requirements, the FEED-EPC
CONTRACTOR will provide its recommendations for how best to accomplish
the work associated with the TRM Project and at the same time the measures
to minimize impacts or interruption to ongoing operations which will be included
in the Preliminary PEP [P-PEP]. Such recommendations should consider
whether modernization Work can be done with the units that are running or
whether shutdowns will be required. If shutdown(s) are believed to be
necessary by the FEED-EPC CONTRACTOR, the CONTRACTOR shall advise
EMPLOYER on the minimum expected duration of the interruption to
operations.
The FEED-EPC Contractor shall also include in the P-PEP how it intends to
provide for minimization of impacts or nuisances to local population as a result
of such activities as traffic, noise, dust, relocation of fencing, roadways,
drainage facilities, etc.
PAGE 7 OF 48
DATE: JULY 4, 2009
4. RISK MANAGEMENT PLAN
It is the intention of EMPLOYER to adhere to Risk Management Best Practices
throughout the course of developing and implementing this Project.
EMPLOYER shall assume the leadership role in overall Risk Management for
the TRM Project. However, all parties involved in the Project are expected to
instill, support and maintain this Risk Management posture within their
organization (and supervised contracted organizations). EMPLOYERs
Representative (Project Management Consultancy Contractor PMC) shall act
on behalf of EMPLOYER to confirm that all Contractors maintain a pro-active,
up-to-date Risk Management Register that includes Risks and Challenges,
Mitigation Measures and status of actions being taken to address the Projects
Risks and Challenges. EMPLOYERs Representative (PMC) shall also be
tasked with follow-up responsibilities to ensure that approved mitigation
measures and actions are driven to successful termination. While each
contractor shall maintain its own Risk Management Register, EMPLOYERs
Representative (PMC) shall maintain a consolidated, overall Project Risk
Management Register on behalf of EMPLOYER to facilitate a holistic approach
to mitigation, mitigation responsibility and resource assignment, aggressive
action and resolution of Project Risks and EMPLOYER decision making
support.
These Risk Management Best Practices shall include, but are not necessarily
limited to the following processes:
Risk Management Plan and Risk Register EMPLOYER shall develop
and shall require that its Contractors develop a comprehensive Risk
Management Plan and Risk Register that shall identify Risks and
Challenges to the achievement of Strategic and Business Objectives,
Project Objectives and/or implementation of the Project Scope of
Work/Services. The Risk Register shall identify the Risk/Challenge, its
Impact Magnitude (Cost, Schedule, Safety, Environmental, etc.), Proposed
Mitigation Measures, Responsible Party(ies), Target Date for
implementation of the Mitigation Measure and its effect(s). The Risk
Register shall be maintained, updated and communicated to EMPLOYER
(or designated EMPLOYERs Representative [PMC], acting on behalf of
EMPLOYER) preferably Weekly, but no less than Monthly (as further
described in Master Job Specification Part C - Project Instructions -
Instruction N 14 - Monthly Progress Report).
Cost Estimate Risk Analysis EMPLOYER shall require that the FEED-
EPC Contractor develop an Open Book Estimate (OBE) during the FEED
phase of the Project, as a deliverable of this phase. The OBE will serve as
the basis for conversions from a Reimbursable Cost (RC) structure to a
Lump Sum (LS) structure. At progressive development intervals of the OBE
during the FEED Phase, EMPLOYER and Contractor shall engage in a
series of Risk Analysis exercises and advances in Detailed Engineering,
PAGE 8 OF 48
DATE: JULY 4, 2009
preparation of critical equipment specifications, request for proposals and
quotes analysis, to reduce Risks and exposures that would affect the
Project costs and levels of Cost Contingency. FEED-EPC CONTRACTOR
shall therefore develop neat Cost Estimates (including appropriate
allowances, but excluding Contingencies) for these Risk Analysis
exercise(s). The Cost Estimate Risk Analysis results shall be initially
utilized to determine an appropriate level of Contingency for the Project,
which shall then be included in the OBE.
When the Scope Definition stage is complete, the FEED-EPC Contractor
will submit the first OBE (initial OBE) that will be a component of the Front
End Engineering Design of the TRM Project.
Several iterations of OBE updates and risk analysis exercises may be
required to achieve Conversion. Such updates to the OBE (and Risk
Analysis) shall be conducted on a continuing basis (at least weekly) until
achievement of an approved OBE and Conversion is effected.
Following approval of the OBE, FEED-EPC Contractor shall be responsible
for their own Cost Management, under the auspices of the Lump Sum (LS)
Conversion conditions. EMPLOYER (or EMPLOYERs Representative,
acting on behalf of EMPLOYER) shall utilize these same Risk Analysis
techniques and practices, applying these to overall Project Cost Forecasts
as the Project advances, to order to facilitate accuracy in forecasting which
incorporates recognition of Risks and Challenges, Change Order
Management and Mitigation Measure effectiveness. This process is
expected to also facilitate effective Contingency Management
(Contingencies draw-down) throughout the Project life cycle.
Additional descriptions and details associated with the development of the
OBE process and its supporting documentation are included in Part C,
Annex C1 - Number 3.7 of this MJS.
PAGE 9 OF 48
DATE: JULY 4, 2009
5. ORGANIZATION PLAN
The TRM Project Organizational Structure (Macro-level view) is shown in
Exhibit 1-2. EMPLOYER expects FEED-EPC CONTRACTOR to develop and
provide EMPLOYER with its more detailed Organization Chart, together with
detailed Roles and Responsibilities descriptions for its personnel. As such,
FEED-EPC CONTRACTOR shall expand upon the generalized roles and
responsibilities noted herein, providing EMPLOYER, at the Contract signature,
with a complete FEED phase Organization Chart and a General EPC phase
Organization Chart, resource and roles and responsibilities plan in its
Preliminary PEP (P-PEP).
Organizational roles and responsibilities relative to the overall Organizational
Structure (Exhibit 1-2) are intended to be as follows:
Petroperu General Management (GM)
GM is a distinct organizational entity within PETROPERU S.A. responsible for
the direction, management, organization, and oversight of the execution and
commissioning of the Talara Modernization Project, under leadership of Miguel
Celi Rivera, General Manager of Petroperu.
PETROPERU S.A. Talara Refinery Modernization Project FEED-EPC and
PMC Management Team (PT)
This is the unit reporting to GM that will oversee both the FEED-EPC and PMC
CONTRACTORS under leadership of Lino Cerna, TRM Project Manager.
Project Management Consultancy Contractor (PMC)
PMC is the Contractor organization that will serve as EMPLOYER
Representative for the TRM Project. In this capacity, with respect to
EMPLOYER PT, they shall manage and administrate the internal functions and
obligations of the PT in accordance with pre-defined PMC/PT coordination
procedures that will be jointly prepared/approved.
With regard to the FEED-EPC CONTRACTOR, the PMC role will be to consult,
provide overview surveillance, counsel, vet work products, perform preliminary-
reviews for EMPLOYER approval and/or endorsement, etc., in accordance with
pre-defined coordination procedures jointly prepared/approved between
PMC/PT. The PMC will also act as EMPLOYERs independent projects
oversight entity, expected to thoroughly review the quotations and control
reports submitted by the FEED-EPC CONTRACTOR and any other
participating entity and provide EMPLOYER with its independent assessment of
the situation and recommended actions where appropriate.
PAGE 10 OF 48
DATE: JULY 4, 2009
PMCs liabilities as are indicated in the Master Job Specifications are only
pertinent between PETROPERU and the PMC, without affecting the FEED-EPC
CONTRACTORs liabilities.
The main activities of the PMC will include, but will not necessarily be limited to:
Supervision and Control
In general, PMC shall act on EMPLOYERs behalf and provide comments,
remarks and recommendations based on its review of activities,
deliverables, documents, etc., in terms of the following classifications:
- In Scope PMC shall recommend action to EMPLOYER for FEED-EPC
Contractor and/or Licensors to rectify deficiencies in accordance with
contractual obligations
- Out Of Scope (no or minor cost/schedule impact) PMC shall
recommend action or approval to EMPLOYER.
- New/Strategic (Unplanned) Proposal - PMC shall recommend action
or approval to EMPLOYER. PMC shall communicate EMPLOYERs
decision or directive to Contractors.
Definitive Supervision and Control roles and responsibilities will be advised
prior to the signature of FEED-EPC Agreement.
Quality Assurance and Control
Conformity of designs and deliverables, materials and equipment, testing
and commissioning of revamped, new Units, audits etc. In this capacity,
PMC will review technical and execution documents on behalf of
EMPLOYER and provide analysis, comments and recommendations for
disposition and/or approval for final decision by EMPLOYER. EMPLOYER
shall provide the FEED-EPC Contractor with a full description of PMCs
roles and responsibilities, interface and communication lines with FEED-
EPC and boundaries of authority relative to interaction and approvals with
respect to FEED-EPC prior to Contract Signature.
Risk and Safety Management
Consulting and conformity due diligence on issues relating to health,
safety, environmental protection, and supervision of risks and challenges,
including hazard reviews, execution risks, etc.
Consulting on Start-Up, Commissioning and Performance Guarantees
FEED-EPC CONTRACTOR will be responsible for the planning and
implementation of Start-Up, Commissioning and Performance Testing for
the TRM Project. However, PMC will be expected to provide assistance to
PAGE 11 OF 48
DATE: JULY 4, 2009
GM and PT relative to Start-Up, Commissioning and Performance Testing
planning and implementation including such activities as review of
Operating Manuals, Project Team Organization and EMPLOYERs
resourcing and staffing, training requirements, etc.
Project Close-Out
PMC shall provide assistance to GM and PT with Project Close Out
processes, procedures, document preparation, etc., and coordinate
preparation of required documents with FEED-EPC Contractor and other
Contractors associated with the Project as deemed necessary by
EMPLOYER.
Front End Engineering Design - Engineering, Procurement, and
Construction (FEED-EPC) Contractor
The FEED-EPC CONTRACTOR is intended to have a prominent role in the
Project as the Prime Contractor for preparation of FEED deliverables, including
coordination with Licensors and Main Automation Sub-Contractor (MAC)
3
, and
managing the efficient and effective execution of EPC contract requirements
and deliverables. FEED work is intended to be performed on a Reimbursable
Cost (RC) basis, with Conversion to a Lump Sum (LS) basis at some point prior
to start of Construction. FEED-EPC Contractor will be responsible for but not
limited to coordinating and assuring that the overall Refinery design is fully
integrated and optimized with heat and energy efficiencies, designed and
developed in accordance with industry accepted Best Practices, compliant with
EMPLOYER requirements and requirements of local, regional and international
codes, regulations specifications, standards, applicable Laws, etc.
During the FEED Phase, MAC sub-contractors costs will be managed under
Early Work terms and will be paid under Lump Sum modality, adding the EPC
Mark-Up. After the conversion is done, MAC Sub-contractors costs will be part
of the lump sum (determined in the OBE) for the EPC work execution; and the
MAC contracting conditions will be according to the legal and contractual
requirements, as well as those ones of guarantees supply, and other ones
stated by the FEED-EPC CONTRACTOR and the EMPLOYER
4
.
FEED-EPC CONTRACTOR will submit, at the beginning of Works, its
procedure and selection proposal of the MAC Sub-Contractor which will be
revised and approved by the EMPLOYER within a maximum period of 30
calendar days
5
.

3
Question 40 Round 1 (Successful bidder will receive more information about the system
architecture and models of each system.)
4
Question: 266 Round 3
5
Question 160 Round 2
PAGE 12 OF 48
DATE: JULY 4, 2009
The philosophy of modernization of the processes control systems and
instrumentation shall extend to the packages and rotary machines, integrating
for such effect the particular systems of each manufacturer or supplier
6
.
The General Engineering Specifications for the TRM Project will be supplied by
the FEED-EPC CONTRACTOR before the beginning of the FEED activities, in
coordination with the EMPLOYER. The FEED CONTRACTOR will give the
EMPLOYER a complete set of such standards, in Spanish and English (printed
and electronic copies), except otherwise agreed
7
.
FEED-EPC CONTRACTOR shall also prepare Basic Design Packages (BDPs)
for the Open Art units and then complete/extend the Open Art and licensed
Basic Design Packages (BDPs) to full FEED package requirements.
FEED-EPC Contractor is required to regularly update the initial P-PEP and
produce a comprehensive PEP suitable to support the OBE and allow efficient
transition into the EPC phase of the project. Said PEP should include
consideration of Start-Up, Commissioning and Testing activities, etc. It will also
prepare a FEED Open Book Estimate (OBE) and subsequent upgrades thereof
until such time as the OBE is approved and Conversion to LS basis is achieved.
The initial OBE precision shall be improved progressively by the FEED-EPC
CONTRACTOR during the Preconstruction Stage in a manner that will permit
early identification and engineering of critical long lead equipment in time to get
quotations and place Purchase Orders with EMPLOYER and PMC approval,
and reduce uncertainties in the OBE submitted once the FEED phase is
finished.
In order to manage simultaneously the activities related to the Basic Design of
the Processes elaborated by the Licensors and the activities related to the
Basic Design of the unlicensed units and the integration and optimization of the
global Front End Engineering Design of the Talara Refinery Modernization
Project, under PETROPER FEED-EPC Contractors responsibility, as
anticipated to manage the project; it is necessary that PETROPER, the
Licensors and the FEED-EPC Contractor coordinate properly such activities.
The FEED-EPC Contractor to prepare the BDPs of UDP, UDV I and UDV III
will take as reference the results of the characterization of the load and
products of these units, that PETROPERU entrusted to the Licensor of the
Vacuum Residue Coking Unit (Coker). Furthermore, it will perform the following
activities related to the licensors work:
1. Revise, complying with the obligations with PETROPER and following the
Good Engineering and Construction Practices, the Licensor Technical
Information (LTI) provided by the Licensors to PETROPER to verify,

6
Question 84 Round 3
7
PAGE 13 OF 48
DATE: JULY 4, 2009
validate, integrate and optimize the provided information, and calculate the
Energy and Mass Balance of the Project scheme.
2. Expand and integrate the Licensed and Unlicensed processes and the
utilities units and general facilities required in the global Project design. For
such purpose, it will use the Basic Design Packages (BDPs) elaborated by
the Licensors and the Contractor.
3. Standardize the TRM Project basic design criteria related to utilities,
communication technology and data processing, and equipment
constructability and assembly.
4. Coordinate and secure that the general basic design of the modernized
Refinery is fully integrated and optimized, defining the energy and mass
balance, and heat and energy efficiencies, according to the Best Practices
of the industry complying with PETROPERU requirements and the local,
regional and international statute books, rules, standards, pertinent law, etc.
5. Coordinate so that the Licensed and Unlicensed basic designs are
compatible in regimes and units load qualities, between them, and all with
the Project Processes Scheme.
6. Integrate and execute the Front End Engineering Design services of the
process control system to integrate all Licensed and Unlicensed basic
design engineering packages and those ones of detail engineering,
procurement and construction of all the involved systems, under the MAC
sub-contractors responsibility.
MAC will coordinate, design and provide the Distributed Control System
(DCS) and, where is indicated, the advanced Controls of the Units in the
modernized Refinery. It is expected that the Licensors and FEED-EPC
CONTRACTOR cooperate and coordinate with MAC to help it performing its
obligations and liabilities in an efficient and timely manner.
7. Coordinate with the Licensors the revision and updating of the equipment
suppliers list to provide PETROPERU the best information for the early and
normal equipment procurement.
8
FEED-EPC Contractor will be required to prepare purchase orders and
administer all approved long-lead equipment purchases and Contracts prior to
Conversion. FEED-EPC CONTRACTOR shall define a procedure to perform
the purchase activities that will be executed during the FEED phase in relation
to the EMPLOYER commitments for purchasing of long lead items and
subcontracts as follows:

8
Question 28 Round 3.
PAGE 14 OF 48
DATE: JULY 4, 2009
a. The FEED-EPC CONTRACTOR is responsible for procurement which
include but are not limited to:
The technical specifications development for the purchase and
specifications sheets, with the prior EMPLOYER approval.
Elaboration of the recommended suppliers list to be invited, with the
prior EMPLOYER approval
Invitation to quote
Award of a bid, with the prior EMPLOYER approval
Contract signature
Contract Management including the Quality Control
Insurance payment when these are not covered by EMPLOYER
Transport from the factory and customs clearance if it is the case
Internal Transport and reception in the work place
Contract close-out
b. EMPLOYER will recognize buying team expenses adding the
CONTRACTOR EPC Margin.
c. In the event of cancellations or changes of purchase orders, EMPLOYER
will recognize associated expenses, with prior EMPLOYER approval.
After Conversion, FEED-EPC Contractor will also be expected to carry out all
Construction Management responsibilities, including provision of craft labor,
sub-contracts and supervision of construction resources, as part of its LS
Conversion obligations.
FEED-EPC CONTRACTOR will also be responsible for the Start-up,
Commissioning, and Performance Testing and Turnover of Care, Custody and
Control (TCCC) of the TRM Project facilities to EMPLOYER. Such activities to
be carried out by FEED-EPC Contractor include planning, preparation and
presentation of documentation, provision of craft labor to support Start-up,
Commissioning and Performance Testing, adherence to agreed to Turnover
sequencing of Sections and other pre-agreed to support on behalf of
EMPLOYER during Start-up, Commissioning, and Performance Testing.
FEED-EPC CONTRACTOR will be responsible for the training of EMPLOYER
personnel needed to initiate the operation of the upgraded refinery installations,
taking in account the best practices for health, security and environmental
PAGE 15 OF 48
DATE: JULY 4, 2009
matters, following worldwide international standards and regulations. This
involves the preparation of specific operating and maintenance manuals in
Spanish, for performing facility check-out, pre-commissioning, commissioning,
process simulations for emergency situations, etc. The manuals shall be
delivered to EMPLOYER at least one year before Initial Start-Up. In case of
licensed Units, it will use the Licensors operation and maintenance guidelines
and will plan the training in coordination to the Licensors.
Training of the EMPLOYERs personnel will be defined by the CONTRACTOR
considering the revision of the Preliminary Implementation Plan, presented in
Appendix 5.4 Part B Bases of Design of the Master Job Specification (MJS)
and the Start Up Management Plan.
The EMPLOYER does not make yet the selection of staff that will participate in
such works. Pursuant to the required in the Start Up Management Plan, Part A
Project Perspectives of the Master Job Specification (MJS), the FEED-EPC
CONTRACTOR will provide the EMPLOYER the staff selection requirements
for the start up, the normal operation and the maintenance of the Talara
Refinery Modernization Project at the proper time to permit the EMPLOYER to
select these necessities.
Additionally, the CONTRACTOR is asked to provide ad hoc on-the-job advisory
counseling for EMPLOYER personnel through the FEED-EPC project phases
with the objective of improving EMPLOYER personnel knowledge of design,
engineering, maintenance, procurement, and construction practices.
FEED-EPC CONTRACTOR shall prepare an initial Training Management Plan,
which will describe how and when EMPLOYER operational and maintenance
personnel will be trained giving EMPLOYER sufficient lead time to recruit and
hire such personnel.
Process Licensors
Contracts with Process Licensors will be negotiated and executed between
EMPLOYER and Licensors with instructions that Licensors shall cooperate with
FEED-EPCs designated Representative(s) on technical issues, such as
integration of Licensors designs with FEED deliverables. EMPLOYER shall be
responsible for Licensor communications of a commercial and contractual
nature. Thus, Licensors and FEED-EPC Contractor shall be authorized to
communicate directly on matters of a purely technical nature, wherein there are
no commercial or contractual considerations. FEED-EPC CONTRACTOR shall
integrate the licensed Basic Design Packages (BDPs) and Open Art
packages of the Project, looking for the optimum solution to the refinery process
configuration.
Matters of a purely commercial or contractual nature, or matters where a
technical issue also involves cost or schedule impacts, the matter shall be
PAGE 16 OF 48
DATE: JULY 4, 2009
directed by Licensors and FEED-EPC Contractor to EMPLOYER, unless
expressly directed otherwise by EMPLOYER. For example, if a communication
between Licensors and FEED-EPC Contractor involves cost or schedule
implications due to a change in strategy, design, materials of construction, etc.,
the matter will be communicated to PETROPERU S.A. pursuant to the
indicated in each Contract.
Contracts with Licensors include the following liabilities:
1. Licensors and FEED-EPC Contractor will execute a Confidentiality
Agreement between them for the proper management of the information
and the activities related to the Project. The scope of such agreement will
be stated by mutual agreement between the Parties and will be informed to
PETROPERU.
2. Licensors whose projects generate gases (LPG and off-gases) will provide
the FEED-EPC Contractor the volumetric balances and the respective
BDPs qualities. Such information shall be completed, as far as possible, in
a maximum period of sixty (60) days after the Licensor receives from
PETROPERU the load data so that the FEED-EPC Contractor elaborates
the BDP of the new URG II Gases Recovery Unit.
3. Licensors of the Coker, and FCC Extension and modernization processes
will provide the FEED-EPC Contractor the volumetric balances and the
respective BDPs qualities which shall be completed, as far as possible, in a
maximum period of sixty (60) days from the Licensor receives from
PETROPERU the load data so that the FEED-EPC Contractor elaborates,
together with the URG II data, the BDP of the new Amine Unit.
4. Licensors whose projects generate sour water will provide the FEED-EPC
Contractor the volumetric balances and the respective BDPs qualities which
shall be completed, as far as possible, in a maximum period of sixty (60)
days after the Licensor receives from PETROPERU the load data so that
the FEED-EPC Contractor elaborates the BDP of the new Sour Water
Stripping (SWS) Unit.
5. Licensors will provide, directly the FEED-EPC Contractor or by
PETROPERU, with its processes critical equipment lists and will prioritize
the BDP level specifications sheets issuance of such equipment for the
corresponding early procurement.
6. BDPs that Licensors provide PETROPERU will be canalized efficiently by it
to the FEED-EPC CONTRACTOR for the compliance with its integration
liabilities.
PAGE 17 OF 48
DATE: JULY 4, 2009
7. Licensors will cooperate, in a general manner, with the FEED-EPC
Contractor to facilitate and carry out successfully the Project integration
labor by such Contractor, in quality, opportunity and economy terms.
8. Licensors will coordinate with PETROPERU and the FED-EPC Contractor
the details to make the Good Performance Guarantee Testing.
Main Automation Sub-Contractor (MAC)
9
As previously indicated, the FEED-EPC CONTRACTOR shall investigate and
recommend the engagement of a competent MAC and following EMPLOYERs
approval, engage, coordinate, integrate and manage MAC as an integral part of
its project organization.
During the first stage of FEED, the FEED-EPC CONTRACTOR shall prepare a
bidding package based on typical General Specifications and typical
architecture of the refinery which shall be sent to companies for its quotation.
As indicated in the two mentioned documents (Part A and Annex C1 of the
Master Job Specification) the MAC shall be a FEED-EPC CONTRACTORs
sub-contractor, therefore the last one shall be responsible for the services
execution.
10
The EMPLOYER needs to know the details of the MAC selection tender and
approve the final outcome, indicating that one of the factors to be evaluated
shall be the score of the MAC competences, based on the experience and
quality of the projects already executed of a similar scope to the Talara Refinery
Modernization Project.
The proposal for the contracting of the MAC shall be performed as maximum, 2
months after the start date of the Contract Agreement in order that the MAC
participates since the beginning on the FEED works.
The scope of MACs activities shall include the following subjects:
Basic design of the TRM Project process control system to integrate all of
the Licensed and Open Art basic design engineering packages
Integration with existing control systems. Prior to this, it is necessary to
define those systems that can be recovered and/or re-potentiated according
to the design and technology standards stated in the new Unit design.
Replace of existing systems that cannot be integrated to the new control
system.

9
10
Questions: 41 - Round 1 and 171 Round 3 (Breach of time or works by MAC will be
penalized to the FEED-EPC Contractor).
PAGE 18 OF 48
DATE: JULY 4, 2009
Design and implementation of Inventory control systems of raw material,
Products, dispatches, and Asset management taking as reference the
EMPLOYERs ERP strategies.
Development of the detailed Engineering, Procurement and Construction of
the process automation and control systems.
Design and implementation of emergency systems for each one of the
modernized refinery Units.
Design and installation of a Project database and a documentation control
system. All developed drawings have to be integrated using the plant design
management system described in chapter 11-Design Management Plan,
Part A of the Master Job Specification.
Design and implementation of a Management Information System, for
gathering and control of all refinery data (production, maintenance, logistics,
accounting, sales and marketing, etc), elaborating the appropriate interfaces
with the EMPLOYERs ERP.
Training planning and development for the EMPLOYERs personnel which
includes processes simulation units installation for attending operating
emergencies.
Participation in the pre-commissioning, Commissioning, start up and
Performance testing activities.
Pursuant to the aforementioned, it is required the participation of the MAC from
the integration works of the Basic Engineering of the licensed and open-art
processes, up to the Final Acceptance Date, aiming at optimizing the process
control strategies and the managerial system design
11
.
After the Project Final Acceptance, EMPLOYER and MAC will enter in a new
agreement (to be discussed and agreed properly) to get continuing technical
assistance during refinery operations.
MAC shall coordinate, design and provide the Distributive Control System
(DCS
12
), and, where designated, Unit advanced or optimization Controls in the
upgraded Refinery. Licensors and the FEED-EPC Contractor shall be expected
to cooperate and coordinate with MAC to assist MAC in carrying out its
obligations and responsibilities in an efficient, timely manner. FEED-EPC

11
Question 107 - Round 1.
12
Question 48 Round 1 (Currently there is only DCS for the Primary Distillation Unit, which was built by
SIEMENS.
The Contractor shall design and supply the new DCS system to be installed for all the scope of the
project, which may come from a manufacturer different from the existing one).
PAGE 19 OF 48
DATE: JULY 4, 2009
Contractor will be responsible for all the activities and deliverables generated by
the MAC subcontractor.
Other Contracts
It is envisioned that other Contracts not specifically mentioned or noted herein
will be required to achieve the TRM Projects goals and objectives. These
Contracts may involve supervised Contracts under the management and
direction of FEED-EPC Contractor, such as equipment and material suppliers,
vendors, sub-suppliers, sub-vendors, various support Contracts, etc. Other
Contracts may be entered into directly between EMPLOYER or the PMC and
Contractors other than FEED-EPC CONTRACTOR. In such cases where
FEED-EPC CONTRACTOR may be required to interact with such Other
Contractors, the respective lines of communication, roles and responsibilities
for interaction and coordination, etc., will be defined and communicated to
FEED-EPC CONTRACTOR by PMC, on behalf of EMPLOYER.
PAGE 20 OF 48
DATE: JULY 4, 2009
6. MASTER PLAN/SCHEDULE
As noted in Sub-section 5 Organization Plan above, it is expected that FEED-
EPC CONTRACTOR will prepare a Preliminary Project Execution Plan (P-PEP.
Post the Contract Agreement start date, FEED-EPC CONTRACTOR will be
required to further develop and define the various sections and aspects of the
P-PEP to more fully describe the details of its plans and implementation of its
roles and responsibilities for the TRM Project. EMPLOYER expects that FEED-
EPC Contractor will adopt the structure and format of its PEP to the same
structure and format as provided herein (Part A Project Perspective Table of
Contents) and extend the concepts noted in the sections herein to a more
specific and detailed level. Bidders are reminded that P-PEP will be submitted
by the successful Bidder at the contract signature.
As an integral part of this PEP, FEED-EPC Contractor shall develop a Critical
Path Management (CPM) network diagram (with logical inter-connections
between activities) Master Plan/Schedule (MP/S) for the TRM Project,
describing in detail each stage of development, including:
FEED Package development, integrating BDPs development prepared by
Licensors and Open Art Units BDPs to be prepared by the FEED-EPC
CONTRACTOR
Engineering activities needed to specify long lead equipment/material items
and obtain quotations
Open Book Estimate (OBE) development and submission, including
Estimate Basis Memorandum (pre-OBE development basis document/plan)
Conversion from RC to LS basis
Pre-Construction stage activities
Long Lead Equipment and Materials Procurement
Detailed Engineering
Procurement of Equipment and Materials
Construction
Pre-Commissioning
Commissioning
Performance Testing
Start-Up
PAGE 21 OF 48
DATE: JULY 4, 2009
Turnover
Final Acceptance
EMPLOYER expects that the FEED-EPC CONTRACTOR will prepare an initial
MP/S for inclusion with the P-PEP. EMPLOYER expects that the level of detail
to be included in this MP/S will be consistent with a Level 2 Schedule for the
FEED work effort (~600 activities) and that the EPC activities will be developed
to a Level 1 Schedule detail level (~50 activities), including discipline level
activities and major deliverables categories, at a minimum, in both the Level 2
and Level 1 components of the MP/S.
Minimum requirements for content, coverage and level of detail to be included
in the MP/S are further described in Part C of the MJS (Project Instructions,
Instruction N 2 Time Management). FEED-EPC Contractor is expected to
develop the MP/S to a level of detail deemed necessary to provide sufficient
insight, management and control into the development and submittal of its
services and deliverables.
In order to provide FEED-EPC Contractor with a basis for initial development of
the MP/S and PEP, FEED-EPC Contractor should base their initial MP/S on the
sequence and timing shown in Exhibit 1-3, as well as the Tentative Schedule for
Development of Basic Designs as shown in Exhibit 1-4, and integrate this
preliminary schedule information into the development of the MP/S to be
included in its P-PEP and Proposal.
PAGE 22 OF 48
DATE: JULY 4, 2009
7. FUNDING PLAN
The FEED Phase of the TRM Project will be carried out under the investment
scheme with the EMPLOYERs equity or resources directly financed by the
EMPLOYER.
13

For EPC activities, it is expected that the EMPLOYER obtains the financing by
non recourse finance that will be effective at the Conversion. During the
financing structure development, the FEED-EPC CONTRACTOR is expected to
fully cooperate with EMPLOYER (or EMPLOYERs Representative [PMC],
acting on behalf of EMPLOYER) in responding to Funders requests for special
information (whether technical or non-technical in nature), typically required in
such situations.
Information provided in Project Instructions (MJS - Part C), Instruction N 10
Finance and Insurance may apply to Funders requests.

13
PAGE 23 OF 48
DATE: JULY 4, 2009
8. CONTRACTING PLAN
For the TRM Project, the acquisition and contracting process shall be
conducted by means of an international, public bidding process. As noted in
Section 5 Organization Plan of this document, EMPLOYER expects that a
number of Contracts will need to be developed and carried out for the TRM
Project, which include, but not necessarily are limited to the following:
Licensors
FEED-EPC CONTRACTOR (the subject of this IFP)
Program Management Consultancy (PMC) Contractor
Other Support Contracts as may be required to achieve Business and
Project goals and objectives
A preliminary Contracting Plan, diagrammatically showing these contractual
relationships, is included herein as Exhibit 1-5.
All Contracts associated with the TRM Project shall be directly between
EMPLOYER and the respective Contractors, prior to Conversion. Handling of
Supervised Contracts after Conversion under the scope of responsibility of the
FEED-EPC Contractor, shall be determined prior to achievement of Conversion,
based on mutual agreement between EMPLOYER and FEED-EPC Contractor.
Where so designated by EMPLOYER, communications related to the exchange
of technical information between Contractors shall be permitted. All
communications with commercial or contractual implications to EMPLOYER or
requiring an alteration of the design shall be initially resolved between
EMPLOYER (or EMPLOYERs designated Representative [PMC]) and the
Contractor involved.
Process Guarantees and their conditions will be communicated to FEED-EPC
Contractor along with BDP technical information. It is expected that the FEED-
EPC Contractor shall ensure the preservation of the Process Guarantee terms
and conditions validity while developing its design for the fully integrated and
optimized facilities. It is also expected that the FEED-EPC CONTRACTOR
shall take the lead role in Project development and execution until such time as
Performance Testing and Start-Up of the facilities have been completed to the
satisfaction of EMPLOYER. FEED-EPC CONTRACTOR shall be responsible
for carrying out such Performance Testing as required by EMPLOYER and/or
Licensor. During Performance Testing, FEED-EPC CONTRACTOR may
identify and communicate clarifications or re-test requirements to Licensors for
remedies which may be required by Licensors and shall coordinate Licensor
Performance Testing and Start-Up support efforts. Ultimately, it is expected that
the Process Licensors shall be obligated to EMPLOYER for upholding the terms
and conditions of the Process and Performance guarantees and warrantees as
PAGE 24 OF 48
DATE: JULY 4, 2009
per their respective Contracts. For unlicensed (Open Art) Technology Units,
FEED-EPC CONTRACTOR shall be responsible for Performance/Process
guarantees and warrantees, as well as all mechanical and/or hydraulic
warrantees and guarantees, as included in its obligations per the Agreement.
The FEED-EPC CONTRACTOR shall be responsible for developing and
administering Sub-Contracts and Purchase Orders with other Contractors,
Vendors, Suppliers, etc., associated with FEED-EPC Scope of Work. Until
such time as Conversion is achieved, FEED-EPC Contractor shall seek
EMPLOYER approval before committing funds and/or awarding said Contracts
or Purchase Orders. Post-Conversion, FEED-EPC Contractor shall place such
Contracts and Purchase Orders on their own account, subject to use of pre-
approved Sub-Contractors and/or Vendors. If Sub-Contractors or Vendors
identified by the FEED-EPC Contractor do not appear on the agreed to
Approved Vendors or Manufacturers List, FEED-EPC shall provide
qualifications as necessary to EMPLOYERs satisfaction prior to award of said
Contracts or Purchase Orders. FEED-EPC CONTRACTOR shall also consider
local content in developing its bidding processes, based on EMPLOYER
approved local contractors, sub-contractors, vendors, suppliers, etc. in order to
achieve EMPLOYERs objective to maximize participation for local content (the
FEED-EPC CONTRACTOR shall develop specific procedures to manage these
activities which shall be approved by EMPLOYER).
EMPLOYER may appoint a Representative (PMC) to act on behalf of
EMPLOYER under the FEED-EPC Agreement. In this event, EMPLOYER shall
give notice to the FEED-EPC Contractor of the name, address, duties and
authority of its Representative.
The PMC shall carry out the duties assigned to him and shall exercise the
authority delegated to him by EMPLOYER. The PMC shall have no authority to
vary or waive any term of the FEED-EPC Agreement.
Additional Information regarding Contracting Plan Requirements is included in
the Project Instructions (MJS Part C) as:
- Instruction N 11 Responsibility For Other Contracts
- Instruction N 14 Monthly Progress Reporting (Sub-Contract Reporting
requirements)
PAGE 25 OF 48
DATE: JULY 4, 2009
9. VALUE ENGINEERING PLAN
It is expected that the FEED-EPC Contractor shall integrate the engineering
and design Best Practices such as Value Improving Practices (VIPs) into the
Open Art BDP, and services, activities and deliverables of the Basic Design
Packages and of the Detailed Engineering.
VIPs are defined as specific applications of the science of Value Engineering
that are used to improve the investment cost, execution schedule and/or
operability/reliability of a construction investment project. FEED-EPC
CONTRACTOR is expected to provide EMPLOYER (or EMPLOYERs
Representatives) with its recommendations for application of such VIPs as may
be applicable to the TRM Project, based on generally industry accepted Best
Practices. EMPLOYER shall give consideration to FEED-EPC Contractors
recommendations for the application of recognized and accepted VIPs such as:
Class of Facility Quality
Customized Standards and Specifications
Design to Capacity
Process Simplification
Expense Minimization
Energy Optimization
Process Reliability Modeling
Predictive Maintenance
Constructability Reviews
Value Engineering
Design Tools
FEED-EPC CONTRACTOR shall present in its Preliminary Project Execution
Plan (P-PEP) its proposal for the application of such Best Practices and VIPs
which (in the CONTRACTORs opinion) if are adopted will:
(a) Accelerate Project Completion
(b) Reduce the cost to EMPLOYER of executing, maintaining or operating the
Facilities
PAGE 26 OF 48
DATE: JULY 4, 2009
(c) Improve the efficiency or value to EMPLOYER of the completed Facilities,
or
(d) otherwise be of benefit to EMPLOYER (without increasing the costs referred
to in paragraph (b) or reducing the efficiency or value to EMPLOYER of the
completed Facilities)
PAGE 27 OF 48
DATE: JULY 4, 2009
10. CONSTRUCTABILITY PLAN
As noted in Section 9 Value Engineering, above, Constructability is a
recognized Best Practice that EMPLOYER expects the FEED-EPC Contractor
shall incorporate into its services and deliverables for FEED-EPC design
development and Construction planning activities.
Constructability is an analysis of the design and construction planning efforts to
reduce cost or save time in project execution. Thus, EMPLOYER expects that
the FEED-EPC Contractor shall make optimum use of construction knowledge
and experience in planning, design, procurement and field operations to
achieve overall Project Objectives.
EMPLOYER expects that the FEED-EPC CONTRACTOR shall provide
descriptions of the plans, processes, practices and methods it intends to apply
to the TRM Project in the Preliminary PEP (P-PEP). The FEED-EPC
Contractors P-PEP should include specific examples of unique Constructability
measures it intends to incorporate into the TRM Project and the benefits
expected to be derived there from. Examples to be included should address
such specific considerations as modularization, pre-assembly and pre-
fabrication, introduction of Construction Supervision-level expertise at early
(BDP/FEED) stages of design, etc., that FEED-EPC Contractor believes, in its
opinion, would benefit this Project.
As industry accepted practice for Constructability typically includes three (3)
such formal Reviews, the above paragraphs descriptions are to incorporate
provisions for Constructability integration at each of the BDP, FEED and EPC
stages of Project development.
PAGE 28 OF 48
DATE: JULY 4, 2009
11. DESIGN MANAGEMENT PLAN
FEED-EPC Contractor shall, subject to the express terms of the Agreement, be
responsible for the FEED-EPC design stages of the TRM Project and for the
accuracy of such specifications and deliverables as may be required (including
design criteria and calculations and any other design data).
EMPLOYER expects that the FEED-EPC Contractors facility designs,
practices, documents, procured equipment and materials, construction
practices and execution/completion of facilities shall comply with international,
and all applicable Peruvian, codes, rules, regulations and laws. This would
include technical standards, building, construction and environmental protection
Laws, Laws applicable to the product being produced from the facilities, and
other standards applicable to the facilities or defined by other applicable Laws.
In addition, EMPLOYER expects the FEED-EPC Contractors and Licensors to
incorporate state-of-the-art processes and technologies that align with
EMPLOYERs intent for modernization of the facilities to improve profitability,
operating flexibility, reliability, safety, and environmental compliance, in
accordance with EMPLOYERs Business and Project Objectives.
It is EMPLOYERs intention to obtain the services of an experienced,
internationally recognized and reputable Contractor, with well established
engineering work processes and practices, to carry out the FEED-EPC services
and deliverables associated with the TRM Project. EMPLOYER (and/or its
designated Representative) shall assemble a team that will work in the FEED-
EPC CONTRACTORS office(s). EMPLOYER expects this team to facilitate
review, analysis, commentary and communication of questions, and
clarifications as necessary to perform engineering oversight and due
diligence, including participation in design reviews, 2D/3D model reviews and
hazards analyses (HAZOP) in support of the FEED-EPC Contractors work
efforts. EMPLOYER shall reserve the right to approve certain types of
engineering deliverables, such as P&IDs, etc. The presence of EMPLOYERs
resident team shall not be construed to absolve or reduce FEED-EPC
Contractors responsibilities for effective Design Management including quality
control and assurance.
FEED-EPC CONTRACTOR shall provide office space and facilities for
EMPLOYERs resident team and shall be expected to fully cooperate with such
Representative(s).
The EMPLOYERs or EMPLOYERs Representative (PMC) personnel number
shall be defined taking into consideration the Work Breakdown Structure and
the Management Plans to be submitted by the FEED-EPC CONTRACTOR,
pursuant to the requirements contained in Attachment 19 of the INFORMATION
TO BIDDERS.
PAGE 29 OF 48
DATE: JULY 4, 2009
It is FEED-EPC CONTRACTORS obligation to provide the appropriate place to
each EMPLOYERs and its Representative (PMC) Personnel, and the facilities
to perform its supervision and administrative labors (computers, connection to
internet, a desk, a telephone, etc)
14
Following completion of the FEED-EPC designs (including vendor data,
information and documents, including 2D/3D Model database attributes, etc.)
and prior to declaration of Mechanical Completion, FEED-EPC CONTRACTOR
shall supply to EMPLOYER the specified numbers and types of copies of the
relevant as-built drawings (preliminary issue), in accordance with EMPLOYERs
requirements, to facilitate EMPLOYERs inspection and verification of systems
and facilities mechanical integrity. Final as-builts drawings shall be issued to
EMPLOYER as a condition of receiving the Ready For Start-Up Certificate. The
facilities shall not be considered to have achieved Ready For Start-Up until
EMPLOYER has received these documents. All as-built drawings shall be
provided as clean, updated revisions (not hand-marked or highlighted copies).
Regarding the numbering system per units, equipments, instruments and the
symbolism for the P&IDs and one-line diagrams, it is made clear that the FEED-
EPC CONTRACTOR shall present at the beginning of the works its proposal for
a new numbering system that shall be used for the Comprehensive scope of the
Project engineering, including the licensed Basic Design Packages.
15
Such
proposal will be approved by the EMPLOYER considering the Refinery rules
and procedures in force.
FEED-EPC CONTRACTOR shall use a 3D CAD platform with an integrated
data base that together constitutes a plant design management system (PDMS
or equivalent) to develop all of the drawings required for the project. This
system shall be provided to the EMPLOYER in order to permit the review and
approval of the engineering deliverables. FEED EPC CONTRACTOR shall
elaborate and up-date drawings of the existing refinery facilities using a laser,
scanner or equivalent system.
Additional Information regarding Design Management Requirements is included
in the Project Instructions (MJS Part C) as follows:
- Instruction N 17 Models
- Instruction N 19 Companys Reviews, Agreements, Approvals and
Authorizations
- Instruction N 20 Protection of Proprietary/Confidential Information

14
Questions 26 and 200 Round 1
15
PAGE 30 OF 48
DATE: JULY 4, 2009
12. MATERIALS MANAGEMENT PLAN (INCLUDING PROCUREMENT PLAN
FEED-EPC Contractor shall be responsible for the procurement and
management of equipment and materials necessary to construct the facilities in
accordance with the specifications. Such activities shall include but not
necessarily be limited to:
Requisitioning
Inquiry
Bid Tabulation and Negotiation
Purchase
Expediting
Inspection
Management of delivery (logistics, traffic management, customs clearance,
etc.)
Positive Material Identification (where required)
Proper Storage
Preservation
Efficient distribution of these materials to the respective job sites
Etc.
EMPLOYER expects that the FEED-EPC Contractor shall make effective use of
world-wide marketplace procurement to achieve best/competitive pricing,
delivery and quality. EMPLOYER expects the FEED-EPC Contractor to
describe its intentions for world-wide procurement, as well as its processes and
practices for procurement and materials management in the Preliminary PEP
(P-PEP). EMPLOYER expects that FEED-EPC CONTRACTOR will exercise
cost consciousness in its procurement recommendations and that its control
measures for ensuring EMPLOYER (or EMPLOYERs Representative, acting
on behalf of EMPLOYER) approval of purchases prior to Conversion are
effectively described in its P-PEP.
FEED-EPC CONTRACTOR shall respect EMPLOYERs Approved Vendor,
Manufacturer and Sub-Contractor Listings in its plans and activities. FEED-
EPC Contractor shall also consider local content in developing its bidding
processes, based on EMPLOYER approved local contractors, sub-contractors,
PAGE 31 OF 48
DATE: JULY 4, 2009
vendors, suppliers, etc., in order to achieve EMPLOYERs objective to
maximize participation for local content.
Additional Information regarding Materials Management and Procurement
Requirements is included in the Project Instructions (MJS Part C) as follows:
- Instruction N 5 Procurement
- Instruction N 6 Material Control
- Instruction N 14 Monthly Progress Reporting (Procurement, Material
Control and Sub-Contract Reporting requirements)
PAGE 32 OF 48
DATE: JULY 4, 2009
13. CONSTRUCTION MANAGEMENT PLAN
EMPLOYER expects FEED-EPC Bidders to describe a Construction
Management Plan/Strategy for the FEED and EPC Phases defining the
processes, methods, tools, techniques and resources to be applied when
appropriate as part of its P-PEP.
The Bidders Construction Management Plan at this early stage would be of a
conceptual nature, addressing from its experience and general knowledge of
Peru how the following activities would be addressed:
Management of labor
Labor sources
Labor supervision
Sub-Contracts planning and management
Construction equipment
Temporary facilities
Marshalling yards and laydown areas
Warehousing
Camp requirements
Path of construction
Tie-ins and interconnections shutdown plans
Etc.
With respect to qualified craft labor, EMPLOYER requires that local labor be
utilized wherever economically practical, protects quality standards and meets
scheduling objectives.
Additional Information regarding Construction Management Requirements is
included in the Project Instructions (MJS Part C) as follows:
- Instruction N 12 Overall Construction Plan
- Instruction N 16 Mechanical Completion and Facilities Turnover
PAGE 33 OF 48
DATE: JULY 4, 2009
14. START-UP MANAGEMENT PLAN
FEED-EPC CONTRACTOR shall be required to plan, organize, manage and
provide appropriately and sufficiently with experienced, qualified personnel to
carry out the Pre-Commissioning/Testing, Commissioning, Efficiency Tests and
Start-Up of the facilities associated with the TRM Project.
FEED-EPC Contractor shall also be responsible for coordinating and
cooperating with EMPLOYER to develop the most efficient, effective and safest
sequence for Start-Up of systems and Units that will provide for maximization of
earliest revenue generation. In addition, EMPLOYER shall provide
appropriately qualified operators and technicians employed by EMPLOYER
for training by the FEED-EPC Contractor and prepare to take over and run the
facilities after Initial Acceptance
16
. Some of these EMPLOYER personnel will
participate in Commissioning and Performance testing under the direct
supervision of the FEED-EPC CONTRACTOR.
Also, regarding to the licensed processes, the Licensee Contractors will provide
assistance to the project team, in accordance to the agreements, to perform
good quality training programs and the execution of the commissioning and
performance testing.
FEED-EPC CONTRACTOR shall provide the necessary training materials (in
Spanish) such as manuals, simulators, class-room and field materials, etc., to
carry out the training of EMPLOYERs Personnel in the Commissioning, testing,
operation and maintenance of the TRM Project facilities to the extent required in
the specifications. During the FEED Phase, a Training Plan will be developed
and maintained by the FEED-EPC Contractor in coordination with Licensors
and EMPLOYER and/or its Representative.
FEED-EPC CONTRACTOR shall provide EMPLOYER with TRM Project startup
and operating and maintenance staffing requirements in adequate time to allow
EMPLOYER to recruit these needs
17
.
Additional Information regarding Start-Up Management Requirements is
included in the Project Instructions (MJS Part C):
- Instruction N 16 Mechanical Completion and Facilities Turnover

16
Question 67 Round 1 (See answer to question 66 Round 1).
17
PAGE 34 OF 48
DATE: JULY 4, 2009
15. ENVIRONMENTAL MANAGEMENT PLAN
FEED-EPC CONTRACTOR shall comply with the Project Environmental Impact
Assessment provided by PETROPERU. The EMPLOYER is responsible for
obtaining the approval of the Environmental Impact Assessment in the Peruvian
Government Agency
18
. FEED-EPC CONTRACTOR shall comply with
EMPLOYER Environmental Management System policies, which establish
among others activities: identification, mitigation and control of all the project
impacts. In addition it shall prepare and submit all the project reports related to
the Environmental Assessment Study and EMPLOYER Management System.
That assessment also includes the social impact management.
EMPLOYER expects FEED-EPC Contractor to develop and maintain a
comprehensive Environmental Management Plan at the appropriate point
during FEED phase as per the Agreement. Further, EMPLOYER expects the
FEED-EPC Contractor to take all reasonable steps to protect the Environment
(both on and off the Site) and to limit damage and nuisance to people and
property resulting from pollution, noise and other results of his field operations.
A Preliminary Environmental Management Plan describing how the FEED-EPC
Contractor would intend to meet these intentions as well as the following
objectives should be expressed in the P-PEP.
The FEED-EPC CONTRACTOR is obliged to comply with Environment
Management System that the EMPLOYER has implemented for its operations
or Project Management; it will also prepare and submit all the project reports
related to such system.
FEED-EPC CONTRACTOR shall consider, in the plan to be presented, the
identification and development of the following factors, as minimum:
Process List
Process Mapping
List of environmental aspects per process
Significance Evaluation Matrix
Significant environmental aspects list
Operating control matrix

18
PAGE 35 OF 48
DATE: JULY 4, 2009
The EMPLOYER (or EMPLOYERs Representative who acts on behalf of the
EMPLOYER) will be entitled to perform audits of any aspect of the FEED-EPC
CONTRACTOR system.
FEED-EPC CONTRACTOR shall ensure that emissions, surface discharges,
effluent, noise and dust levels, etc., from the Contractors activities shall not
exceed the values indicated in the Specifications and shall not exceed the
values prescribed by applicable Laws.
FEED-EPC CONTRACTOR shall be responsible for:
(a) use, storage and disposal, in accordance with all applicable Laws and the
Specification, of all hazardous, toxic or contaminated materials or
substances generated or used by the Contractor in carrying out the work
and its other obligations under the Contract. It will consider particularly Law
N 27314-General Law of Solid Waste.
(b) rectifying and remedying any contamination of the Facilities, the Site and
any neighboring areas of land caused by carrying out the work and its other
obligations under the Contract
At the earliest opportunity during the FEED Phase, the FEED-EPC
CONTRACTOR shall expand its Preliminary Environmental Management Plan
into a comprehensive description of the processes, plans, methods, procedures
and techniques by which these Environmental Management measures will be
governed and carried out.
Additional Information regarding Environmental Management Requirements is
included in the Project Instructions (MJS - Part C) as follows:
- Instruction N 13 Site Health, Safety, Security and Environmental
Protection
- Instruction N 14 Monthly Progress Reporting
PAGE 36 OF 48
DATE: JULY 4, 2009
16. COST MANAGEMENT PLAN
Throughout Scope Definition and Pre-Construction Stages of the TRM Project,
the FEED-EPC Contractor shall be responsible for preparation of detailed Cost
Reports indicating Budgets, Commitments, Expenditures and Forecasts to the
level of detail agreed between EMPLOYER and Contractor. After Conversion,
Cost Reporting shall be limited to cost status versus the Construction Stage
Lump Sum price and subsequent change orders.
Monthly Progress Reports shall be prepared by the FEED-EPC Contractor and
submitted to EMPLOYER, each within 5 days after the last day of the period to
which it relates. Reporting shall be issued until issue of the Initial Acceptance
Certificate.
Throughout the TRM Project, EMPLOYER expects that FEED-EPC Contractor
will maintain an attitude of cost consciousness consistent with EMPLOYERs
and TRM project strategic objectives. It is expected that during the course of
the work, various studies will be undertaken to analyze the costs associated
with alternatives and may extend into projections of operating cost impacts as
well. The FEED-EPC Contractor is expected to encourage and facilitate this
type of optimization activity.
A vital aspect of the TRM Project FEED-EPC Agreement involves Conversion
at which point Contractors payment way changes from reimbursable cost to
lump sum. A key element in this transition is the FEED-EPC CONTRACTORS
development of an AACEI Class 2 Open Book Cost Estimate (+/-10% accuracy
which represents the approximate development of 30% of the Detailed
Engineering) by the end of the FEED Phase. In order to facilitate the
preparation of the OBE, EMPLOYER expects FEED-EPC CONTRACTOR to
develop an Estimate Basis Memorandum (EBM) approximately six months
before completion of the OBE wherein EMPLOYER and Contractor agree on
the degree of support needed for each of the major elements within the
estimate and, as far as possible, establish the factors and methodology that will
apply (e.g., construction labor productivity, equipment and bulk material
allowances, risk analysis philosophy). Section 3.7 of Annex C1-Part C provides
further detail regarding the OBE.
Additional Information regarding Cost Management Requirements is included in
the Project Instructions (MJS Part C) as follows:
- Instruction N 3 Cost Management
- Instruction N 8 Change Control
- Instruction N 10 Finance and Insurance
- Instruction N 15 Measurement of Percentage Completion
PAGE 37 OF 48
DATE: JULY 4, 2009
17. SCHEDULE MANAGEMENT PLAN
As previously indicated, EMPLOYER expects that the FEED-EPC Contractor
will prepare and maintain a Master Plan/Schedule (MP/S) and other
subordinate project schedules as required to effectively provide for Time
Management of the activities within its scope of services as defined per the
Agreement. A schedule classification system is defined in Project Instructions,
Instruction N 2 which the Contractor is to follow. In addition to the MP/S,
various schedules may be required, including look-ahead schedules related to
design, procurement, construction, pre-commissioning, commissioning,
performance testing, start-up as required or requested by EMPLOYER or
EMPLOYERs Representative.
EMPLOYER reminds the Bidders that the execution time is one of the principal
TRM Project objectives; therefore, the CONTRACTOR shall try its best to
perform the works in the shortest possible time. Particularly, it is required that
during the FEED phase the CONTRACTOR make the design packages
integration and the open book estimate (OBE) as soon as possible, using the
necessary resources and engineering practices. In such sense, it is expected
that the FEED phase activities termination, at the definitive OBE submission,
happen approximately 9 months after the last (licensed or unlicensed,
whichever happens last) Basic Design Package has been completed.
CONTRACTOR will show in the Preliminary Project Execution Plan the
schedules and strategies that will develop to comply with this expectation.
Monthly Progress Reports, as outlined in Part C of the Master Job Specification,
Appendix 14, Project Instructions, shall be prepared by the FEED-EPC
Contractor and submitted to EMPLOYER, each within 5 days after the last day
of the period to which it relates. Reporting shall continue until issue of the last
Initial Acceptance Certificate.
In addition to Monthly Progress Reporting (including Schedule Reporting), the
FEED-EPC CONTRACTOR may be required to develop specific schedule
reports and/or analyses as directed by EMPLOYER or EMPLOYERs
Representative (PMC).
Additional Information regarding Schedule Management Requirements is
included in the Project Instructions (MJS Part C) as follows:
- Instruction N 2 Time Management
- Instruction N 8 Change Control
- Instruction N 15 Measurement of Percentage Completion
PAGE 38 OF 48
DATE: JULY 4, 2009
18. QUALITY MANAGEMENT PLAN
EMPLOYER expects that the FEED-EPC Contractor shall institute a Quality
Assurance and Control system to assure compliance with the requirements of
the Agreement. The system shall be in accordance with accepted/approved
industry wide practices. EMPLOYER (or EMPLOYERs Representative, acting
on behalf of EMPLOYER) shall be entitled to audit any respect of the FEED-
EPC CONTRACTORs system.
FEED-EPC CONTRACTOR is obliged to comply with the Quality Management
System that the EMPLOYER has implemented for its operations or Project
Management; it will also prepare and submit all the project reports related to
such system.
EMPLOYER (or EMPLOYERs Representative, acting on behalf of
EMPLOYER) shall be responsible for TRM project quality management
oversight, which shall include provisions to verify that all Contractors and
suppliers involved in the TRM Project have appropriate Quality Assurance and
Control plans, systems, standards, practices and procedures in place, and will
conduct regular and unexpected assessments to verify that such programs
are being effectively applied and maintained by the Contractor(s).
Details of all procedures and compliance documents, covering quality in design,
procurement, construction and all other project activities, shall be submitted to
EMPLOYER for information before each design and execution stage is
commenced. Compliance with the Quality Assurance system shall not relieve
or reduce the Contractor of any of his duties, obligations or responsibilities
under the Agreement, including provisions to ensure that Supervised
Contractors, Sub-Contractors, Suppliers, etc., within their scope of responsibility
also have Quality Assurance and Control procedures in place and abide by the
same Quality Assurance and Controls required of the FEED-EPC Contractor by
EMPLOYER
Additional Information regarding Quality Management Requirements is included
in the Project Instructions (MJS - Part C) as follows:
- Instruction N 4 Quality Management
PAGE 39 OF 48
DATE: JULY 4, 2009
19. SAFETYAND HEALTH AT WORK MANAGEMENT PLAN
EMPLOYER expects FEED-EPC Bidders to describe a Strategic Safety
Management Plan for the FEED and EPC Phases defining the processes,
methods, tools, techniques and resources to be applied when appropriate as
part of its P-PEP.
The Safety/Security Management Plan at this early stage would be of a
conceptual nature, addressing from its experience and general knowledge of
Peru how Safety/Security would be provided for on the TRM Project.
The FEED-EPC CONTRACTOR is obliged to comply with safety policies, rules
and procedures that the EMPLOYER has implemented; it will also prepare and
submit all the project reports related to Integrated Occupational Health, Safety,
Environment and Quality Management System.
FEED-EPC CONTRACTOR shall consider, in the plan to be presented, the
identification and development of the following factors, as minimum:
Process List
Process Mapping
Danger identification and risk evaluation matrix
Significant risks controls determination Matrix
The EMPLOYER (or EMPLOYERs representative that acts on behalf of the
EMPLOYER) will be entitled to perform audits of any aspect of the FEED-EPC
CONTRACTOR system.
At the Contract Signature, the EMPLOYER will provide the FEED-EPC
CONTRACTOR with the Safety, Health at Work and Environmental Protection
Manual, for the Contractors M 040, which is of mandatory enforcement for all
the activities that the FEED-EPC CONTRACTOR and sub-contractors, related
to the TRM Project, have to perform.
EMPLOYER is dedicated to ensuring that all participants in the Project and
personnel working on or off the Refinery Site are provided with a safe and
secure environment within which to carry out their various duties and activities.
As such, EMPLOYER expects that all organizations and personnel involved in
the TRM Project reflect this level of attention to safety. Safety, in this context, is
taken to include safety in design, construction and operation of the facilities, as
well as personal safety vigilance and protection.
EMPLOYER expects the FEED-EPC CONTRACTOR to prepare a
comprehensive Health, Safety and Security Management Plan for the TRM
Project as early as practical and regularly maintain same as related to its scope
PAGE 40 OF 48
DATE: JULY 4, 2009
of responsibility per the Agreement. Said Plan shall therefore include detailed
descriptions of the design safety related provisions as Design Reviews, Peer
Reviews, HAZOP analyses, etc. The Plan shall describe safety measures to be
taken during Construction such as Safety Training, Safety Talks, Job Hazard
Analyses, safety monitoring, etc. Safety statistics are to be reported as part of
each monthly Progress Report.
The scope of the Plan is to encompass all stages of FEED-EPC, including
design, procurement, construction, pre-commissioning, start-up, commissioning
and performance testing. The Plan shall include provisions regarding all
aspects of health and safety and Site Security, including requirements for the
enforcement of Site regulations, whilst the Site is managed by the FEED-EPC
CONTRACTOR, and up to the Initial Acceptance of the entire Project facilities.
FEED-EPC CONTRACTOR shall be responsible for keeping unauthorized
persons off the Site. Authorized persons shall be limited to FEED-EPC
Contractors Personnel and EMPLOYERs Personnel (including EMPLOYER
Representatives Personnel) and to any other personnel notified to the
Contractor by EMPLOYER or EMPLOYERs Representative (acting on behalf of
EMPLOYER).
FEED-EPC CONTRACTOR will be responsible for the compliance with all
applicable Peruvian rules and law referred to the migratory conditions for
working purposes by its foreign personnel that have to perform activities related
to the TRM Project in Peru.
FEED-EPC CONTRACTOR shall describe in the Plan its plans, procedures and
measures to describe how it intends to and shall implement the means to:
(a) comply with all applicable Safety regulations and with the Health and
Safety requirements of EMPLOYER
(b) take care for the Safety of all persons entitled to be on Site
(c) use reasonable efforts to keep the Site clear of unnecessary obstruction
so as to avoid danger to these persons
(d) provide fencing, lighting, guarding and watching of the facilities until
completion and taking over by EMPLOYER
(e) provide any Temporary Facilities (including roadways, footways, guards
and fences) which may be necessary, because of the execution of the
Project, for use and protection of the public and of owners and occupiers
of adjacent land
PAGE 41 OF 48
DATE: JULY 4, 2009
Additional Information regarding Safety/Security Management Requirements is
- Instruction N 13 Site Health, Safety, Security and Environmental
Protection
- Instruction N 14 Monthly Progress Reporting (Safety Reporting
requirements)
EMPLOYER will maintain control and approval of all traffic and personnel
entering or leaving the refinery. EPC Contractor personnel will be instructed to
follow the EMPLOYER policies and procedures, particularly during operating
emergency events.
PAGE 42 OF 48
DATE: JULY 4, 2009
20. INFORMATION MANAGEMENT PLAN
EMPLOYER expects the FEED-EPC Contractor to be responsible for
compliance with proper methods and techniques for ensuring efficient and
effective communications, records management, chain of custody, preservation
of confidentiality, etc., associated with Project related communications and
documentation. Given the prominent role and breadth of the FEED-EPC
Contractors Scope of Work and services, EMPLOYER expects that FEED-EPC
Contractor shall be the principal entity responsible for centralized Document
Control/Retention and Information Management for the Project. As such,
EMPLOYER expects that FEED-EPC CONTRACTOR makes provisions for all
Document Control and Information Management infrastructure such as office
space, computer equipment, reproduction (printers and plotters), computer
networks necessary to carry out the Project Scope of Work.
The EMPLOYERs or its Representative (PMC) personnel number shall be
defined taking into consideration the Work Breakdown Structure and the
Management Plans to be submitted by the FEED-EPC CONTRACTOR,
pursuant to the requirements contained in Attachment 19 of the INFORMATION
TO BIDDERS.
As an initial reference, the EMPLOYER has provided a Preliminary Project
Execution Plan, which is in Appendix 5.4 of Part B Bases of Design of the
Master Job Specification (MJS).
The Contractor has to provide the suitable space for each personnel of the
EMPLOYER and its Representative, and the facilities for carrying out its
supervision and administration work (computers, internet, desk, telephone,
etc.).
It is Contractors obligation to provide the appropriate place to each
EMPLOYERs and its Representative (PMC) Personnel, and the facilities to
perform its supervision and administrative labors (computers, connection to
internet, a desk, a telephone, etc).
EMPLOYER expects that FEED-EPC Contractor shall provide EMPLOYERs
(and EMPLOYERs Representatives) personnel full access with appropriate
privileges to FEED-EPC CONTRACTORS related networks and files during the
stages prior to Conversion (RC basis) of Project development. Following
Conversion (LS basis), EMPLOYER recognizes that FEED-EPC Contractor
may exclude access privileges for EMPLOYER (and EMPLOYERs
Representative) to specific files and folders that contain certain
(CONTRACTOR internal) cost information in accordance with the LS
arrangement.
EMPLOYER expects that all notices, instructions, information and other
communications given by the FEED-EPC Contractor to EMPLOYER under the
PAGE 43 OF 48
DATE: JULY 4, 2009
Agreement shall be given to EMPLOYERs Representative (PMC) unless
EMPLOYER otherwise advises the FEED-EPC CONTRACTOR in writing.
EMPLOYER may issue to the FEED-EPC CONTRACTOR instructions, which
EMPLOYER considers to be necessary or expedient in connection with the
FEED-EPC scope of responsibilities under the Contract. Each instruction shall
be given in writing and shall state the obligations to which it relates. FEED-EPC
Contractor shall take instructions from EMPLOYER, EMPLOYERs
Representative (PMC), or other designee to whom the appropriate authority has
been delegated.
FEED-EPC CONTRACTOR shall appoint a Representative and shall give him
all authority necessary to act on the Contractors behalf under the Contract.
Such Contractor shall, on behalf of the FEED-EPC CONTRACTOR, receive
instructions from EMPLOYER and/or EMPLOYERs Representative (PMC) or
other EMPLOYER authorized designee.
FEED-EPC Bidders shall include in their P-PEP an expanded description of
how they intend to carry out these Information Management responsibilities and
outline their plan for such.
Additional Information regarding Information Management Requirements is
- Instruction N 1 Correspondence
- Instruction N 7 Document Control
- Instruction N 18 Compilation of Project Data
- Instruction N 19 Companys Reviews, Agreements, Approvals and
Authorizations
- Instruction N 20 Protection of Proprietary/Confidential Information
PAGE 44 OF 48
DATE: JULY 4, 2009
21. SPECIAL CONSIDERATIONS PLAN
This section of Part A Project Perspective includes discussion of
several aspects of the TRM Project development and execution program
that may require special attention by EMPLOYER, FEED-EPC Contractor
and other participants. It should be recognized that the issues noted
herein are not a complete or exhaustive list at this time. EMPLOYER
therefore expects that FEED-EPC Contractor shall not only address the
issues noted herein in its P-PEP, but subsequently shall also further
develop this listing, providing its intentions and recommendations for
mitigating impacts associated with such issues.
Developing/Verifying Vital Information/Data Needed to Effectively and Efficiently
Initiate FEED-EPC Work for the TRM Project
FEED-EPC CONTRACTOR should provide in their P-PEP a list of what they
consider vital information needed to be able to proceed diligently with the FEED
work for the TRM Project and recommending a plan for acquisition and/or
verification of such information/data.
Protection of the Current Operating Plant During Construction of the
Modernization Facilities
FEED-EPC Contractor activities during Construction will be conducted in
adjacent areas and/or within existing, operating Units of the Refinery.
EMPLOYER expects FEED-EPC Contractor to take necessary measures to
comply with construction permitting
19
, Operations coordination, safety and
preservation of EMPLOYER and local populace property. EMPLOYER expects
FEED-EPC Contractor to describe what and how protective and compliance
measures will be applied to mitigate these conditions.
Sea Water Intake and Discharge Systems
FEED-EPC Contractor shall be required to design and construct Sea Water
Intake and Discharge Systems in a manner which will protect environmentally
sensitive areas. FEED-EPC Contractor shall provide its recommendations /
mitigation plans for EMPLOYER review, including recommendations for
preservation of the environment during Operation of these systems.
Significantly More Complex Technology Configuration than in Current
Refinery Configuration
TRM Project facilities shall inherently include processes and technologies, such
as Coking, Hydrotreating, etc., which are not familiar to its staff, including
Operations and Maintenance personnel. EMPLOYER expects that FEED-EPC

19
Question 246 Round 1 (The CONTRACTOR shall be responsible for preparing all the
necessary information that helps the EMPLOYER to obtain local, regional or national permits).
PAGE 45 OF 48
DATE: JULY 4, 2009
Contractor will provide the necessary plans and provisions for Operating
Manuals, Training, documentation, etc. needed to ensure that Refinery staff is
prepared to knowledgeably inspect and operate the new and upgraded facilities
safely, efficiently and effectively after Transfer of Care, Custody and Control
(TCCC).
Limited EMPLOYER Staff
EMPLOYER expects to engage the services of a Project Management
Consultancy (PMC) Contractor to supplement/augment its staff to facilitate
management and monitoring of the Project, as well as to ensure efficient and
effective communications. Such engagement notwithstanding, EMPLOYER
intends to engage a highly qualified and experienced, internationally recognized
and respected Contractor to perform the FEED-EPC Scope of Work.
EMPLOYER expects that the FEED-EPC Contractor will also provide the
expertise and support services necessary to efficiently and effectively achieve
EMPLOYERs and Project Business goals and objectives by fully cooperating
with and supporting EMPLOYER and EMPLOYER Representatives (PMC)
efforts.
Public Bidding Requirements
EMPLOYERs charter requires full transparency in its procurement and
contracting activities. EMPLOYER expects that the FEED-EPC
CONTRACTOR will also support EMPLOYERs efforts in this regard fully
cooperating with and supporting EMPLOYER and EMPLOYER
Representatives (PMC) efforts to comply with the requirements, rules,
regulations and Laws governing this type of Process in terms of its interrelations
of the EMPLOYER, the FEED-EPC CONTRACTOR, its Sub-Contractors, and
Suppliers, etc., where rules, regulations, principles, practices and Laws of the
performed procurement and contracting processes apply.
Workload of Contracting and Supply Marketplace
EMPLOYER expects that the FEED-EPC CONTRACTOR shall include the
necessary plans, programs and measures needed to ensure the most cost
effective and time efficient delivery of the TRM Project facilities. Such measures
are expected to include world-wide procurement to ensure best cost, quality
and delivery programs, timely placement of requirements for materials to have
sufficient time for timely procurement delivery, surveys to ascertain labor
availability, ensure timely availability of experienced staff, etc.
Preservation of Process Guarantees
Licensors shall provide EMPLOYER with Process Guarantees and their
conditions which will be communicated to FEED-EPC CONTRACTOR along
with licensed BDP technical information. It is expected that the FEED-EPC
PAGE 46 OF 48
DATE: JULY 4, 2009
Contractor shall ensure the preservation of the Process Guarantee terms and
conditions while developing its design for the fully integrated and optimized
facilities. It is expected that the FEED-EPC Contractor shall take the lead role in
Project development and execution until such time as Performance Testing and
Start-Up of the facilities have been completed to the satisfaction of
EMPLOYER. FEED-EPC CONTRACTOR shall be responsible for carrying out
such Performance Testing as required by EMPLOYER and/or Licensor. During
Performance Testing, FEED-EPC CONTRACTOR may identify and
communicate clarifications or re-test requirements to Licensors for remedies
which may be required by the Licensor(s) and shall coordinate Licensor
Performance Testing and Start-Up support efforts.
Financing Considerations
It is anticipated that third party funding will be obtained for the TRM Project by
EMPLOYER, effective at Conversions. Until the time the Conversion is
achieved and third party non-recourse funds become available, it is the
expectation that EMPLOYER performs the Project activities with the
EMPLOYERs equity or resources directly financed by the EMPLOYER
20
. The
FEED-EPC CONTRACTOR is expected to fully cooperate with EMPLOYER (or
EMPLOYERs Representative, acting on behalf of EMPLOYER) in responding
Funders requests for special information (whether technical or non-technical in
nature), typically required in such situations.

20
PAGE 47 OF 48
DATE: JULY 4, 2009
22. APPENDIX - GLOSSARY
The following Glossary includes definition and/or description of acronyms
included in the text of Part A Project Perspective.
Acronym/Term Definition/Description
BDP Basic Design Package Licensors
Package or Open Art Unit Basic/Process
Designs
DCS Distributive Control System
Energy and Material Balances Synonymous with Heat and Material
Balances
EPC Detailed Engineering, Procurement and
Construction Phase (includes Pre-
Commissioning/Testing, Start-Up,
Commissioning and Performance Testing
activities)
FEED It includes the Scope Definition and Pre-
construction stages up to the Conversion.
FEED-EPC Scope Definition and Pre-construction
plus continuation into Detailed
Engineering, Procurement, Construction
HAZOP Process Hazards and Operations
Review(s)
LS Lump Sum
MAC Main Automation Sub-Contractor
MB/DO Thousands of Barrels (equivalent) per Day
of Operation
MMSCF/DO Millions of Standard Cubic Feet per Day of
Operation
MP/S Master Plan/Schedule
OBE Open Book Cost Estimate
PAGE 48 OF 48
DATE: JULY 4, 2009
PEP Project Execution Plan
PMC Program Management Consultancy
Contractor
PD EMPLOYER TRM Directorate
PT EMPLOYER Talara Modernization Project
Team
QA Quality Assurance
QA/QC Quality Assurance and Control
QC Quality Control
RC Reimbursable Cost
TCCC Transfer of Care, Custody and Control
TM/DO Metric Tons per Day of Operation
VIP Value Improving Practice(s)
PAGE 1 OF 1
DATE: JULY 4, 2009
Exhibit 1-1 (to Sect 3 Scope of Work)
Talara Refinery Modernization Project
Optimized Refinery Configuration Scheme
Light Naphtha
Kerosene
Naphtha
Hydrotreatment
and splitter
13.3 KBPSD
VDU I
Vacuum
Distillation
Unit I
21.0 KBPSD
VDU III
Vacuum
Distillation
Unit III
35.0 KBPSD
FCCU
Fluid
Catalytic
Cracking
Unit
25.0 KBPSD
HCO
CSO
Diesel
Crude
Reduced
Crude
LVGO
HVGO
Slop Wax
Vacuum Bottoms
Kerosene
LPG
Diesel 2
Fuel Oil
Solvent 3
Jet Fuel A1
Diesel
Hydro
Treatment
41.0 KBPSD
Heavy Naphtha
LCO
HVGO
Asphalt
Vacuum Bottoms
Gasoline
Naphtha
LVGO
CKU
Coking
Unit
22.6 KBPSD
Catalytic
Reforming
9.5 KBPSD
Solvent 1
Gas Recovery
Unit
Slop Wax
Naphtha
LKGO
HKGO
Naphtha FCC
Hydro
Treatment
9.5 KBPSD
C
1
/C
4
H
2
H
2
Gases
Gases
H
2
H
2
Cracked
Naphtha
Gases
Fuel
Coke
Gasifyer /CO Boiler
Gas Treatment Coke
Fuel Gas
C
1
/C
4
C
3
/C
4
CDU
Crude
Distillation
Unit
95.0 KBPSD
LPG
Treatment
MODERNIZED EXISTING UNIT
NEW UNITS
NEW RELATED UNITS
Hydrogen
Plant
30.0 MSCFSD
Natural
Gas
Sulphuric Acid
Plant
460 Ton/D
Amine
Treatment
Plant
Process
Gas Cogeneration Plant,
Heaters and Boilers
Optimized Refining Scheme
Caustic
Treatment
H
2
Acid
Gas
Treat. Gas
General
Utilities and Facilities
GPMR 13.06.2008
FCC
Naphtha
Iquitos
Reduced
Crude
Note: Iquitos Reduced Crude is a foreign stream which is produced by the Petroperus Iquitos
Refinery and is shipped to the Talara Refinery. It is composed by reduced crude (80% vol) plus
straight run naphtha (20% vol) with an average flow of around 3,500 BPD.
Exhibit 1-2 (to Sect 5 Organization Plan)
Petroper General
Management (GM)
PMC
Licensors
FEED-EPC
Contractor
- Red Contractual relations
- Blue Communications and
hierarchical relations
Non-Commercial
Communications
Main Automation
Sub-Contractor
(MAC)
Non-Commercial
Communications
Petroper Project Team (PT)
PETROPERU, S.A.
FEED-EPC CONTRACTOR IFP
International Bidding Process N PCI-002-2008-OFP/PETROPERU
VOLUMEN 2
PAGE 1 OF 1
DATE:: JULY 4, 2009
LxnI8I1 S M S
1 S L 8 D D
VOLUMEN 2
PAGE 1 OF 1
DATE: JULY 04, 2009
PETROPERU, S.A.
L S M S
1 S L U 8 D D
VOLUMEN 2
PAGE 1 OF 1
DATE: JULY 4, 2009
PETROPERU, S.A.
Amine (AWWS, GT, Water and electric
Overall Project Management
Licensor - LS Licensor - LS Licensor - LS Licensor - LS Licensor - LS Licensor - LS Licensor - LS Licensor - LS Licensor - LS
(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)
ensors and FEED-EPC Contractor throughout the BDP, FEED and EPC stages. Issues of technical nature will be managed as required (directly with FEED-EPC and by the FEED-EPC for interaction w/Licensors). Documents of Contractual/Commercial nature must be approved by EMPLOYER.
tractor throughout the BDP, FEED and EPC stages. Issues of technical nature will be managed as required. Documents of Contractual/Commercial nature shall be approved by EMPLOYER.
FEED-EPC CONTRACTOR - LS (Post Conversion)
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Project Management Consultancy (PMC) Contractor - RC (Reimbursable Cost)
PETROPERU
A.D. Little/EnGlobal - RC
FEED-EPC CONTRACTOR - RC (Pre-Conversion)
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TALARA REFINERY MODERNIZATION PROJECT PART B BASES OF DESIGN
PAGE 1 OF 6
DATE: JULY 10, 2009
Table of Contents
1. INTRODUCTION
2.1 Existing ISBL
2.1.4 Gas Recovery Unit (URG)
2.1.5 Merox Unit
2.2 Existing OSBL
2.2.1 Utilities
2.2.3 Flare System
2.2.4 API and CPI Separators
2.2.5 Storage Tankage
2.2.6 Dispatch Systems
2.2.7 Buildings
2.3 Expanded/Modernized ISBL (Process Units)
2.3.2 Vacuum Distillation Unit I (VDU-I)
2.3.3 Vacuum Distillation Unit II (VDU-II)
2.3.4 Vacuum Distillation Unit III (VDU-III)
PAGE 2 OF 6
DATE: JULY 10, 2009
Table of Contents
2.3.8 Fluid Cat Cracker Unit (FCCU) and Gas Recovery Unit (GRU-I)
2.3.11 Amine Plant
2.4.3 Feed, Intermediate and Products Storage
2.4.3.2 Intermediate
2.4.3.3 Products
2.4.4.1 Air for instruments
2.4.4.5 Deep Sea Piping Installation for Cooling Water
PAGE 3 OF 6
DATE: JULY 10, 2009
Table of Contents
2.4.4.7 Segregated Wastewaster Stream Treatment
Oil/Water Separation
Biological Treatment System
Chemical Sewer Treatment System
2.4.4.9 Fuel Gas System
2.4.4.11 Buildings
Administrative, Technical Office Building and
Laboratory Building
Central Control and Operations Center Building
Liquid Product Loading Dock
Upgrades in the existing Shipload Dock
Upgrade the Ballast Plant
3. DESIGN BASIS
PAGE 4 OF 6
DATE: JULY 10, 2009
Table of Contents
Feed
3.2.1 Crude Oil
3.2.1.6 Reduced Crude Iquitos
3.2.2 Crude Oil Assays
3.2.3.1 Gasoline
3.2.3.2 LPG
3.2.3.5 Solvents
3.2.3.6 Asphalt
PAGE 5 OF 6
DATE: JULY 10, 2009
Table of Contents
3.3.1 Bases and Criteria for the Licensed Basic Design
3.3.2 Specifications for the Licensed Basic Design
3.3.3 Main Equipment Sheets
3.3.4 Revision and Conformity of Drawings and Documents for
construction
3.3.5 Inspection of the Equipment Manufacturing
3.3.6 Training
3.3.7 Deliverables
3.3.8 Coordination
3.4.1 Location
3.4.2 Plot Plan of Existing Facilities
3.4.3 Local Conditions
3.4.4 Expanded/Modernized Utility Specifications
a) Steam
b) Electric Power
c) Nitrogen
d) Plant Air/Air for Instruments
e) Water
1) Boilers Feed Water
2) Fresh Water (Osmotized sea water)
PAGE 6 OF 6
DATE: JULY 10, 2009
Table of Contents
3) Cooling Water
4) Fire Water
5) Potable Water
7) Natural Gas (Typical quality)
8) Hydrogen
9) Stack Emission
10) Noise Abatement
1. STANDARDS
1.2 Regulations
2. APPENDICES
Information Only)
5.2 Preliminary Work Breakdown Structure (WBS)
herein for Background Information Only
5.4 A.D. Little/ENGlobal Engineering, Inc. Implementation Plan (Document 10-
371257-007 Project No. 10-371257)
5.5 A.D. Little/ENGlobal Engineering, Inc./PETROPERU S.A. Environmental
Viability Study (Document 10-371257-033, Rev. 4 April 2008)
PAGE 1 OF 81
DATE: JULY 10, 2009
PART B
BASES OF DESIGN
1. INTRODUCTION
Part B is a subset portion of the MASTER JOB SPECIFICATION (MJS) for the
PETROPERU S.A. Talara Modernization Project (TRM) FEED-EPC Invitation
for Proposal. It provides basic design information intended to define loads and
products flow regimes, specifications, development and completion requirements
for the Basic Design Packages (BDP) produced by Licensors. The BDPs
Licensors will also be used by the FEED-EPC CONTRACTOR to develop the
Open Art BDPs, and extend, integrate and optimize all BDPs into a complete
Basic Engineering set of deliverables.
Unless specifically cited as Relied Upon Information in Clause 20 of the EPC
Conditions, this document presents preliminary information to perform the TRM
FEED design of process inside and offsite installations. However, FEED-EPC
Contractor shall understand that it is solely responsible for adequately sizing and
designing all installations, unless that referred in the reliable Information.
In addition, Part B provides a description of the existing Talara Refinery facilities
and operations, the facilities and operations to be expanded/modernized, general
design philosophy, optimization objectives, crude and product specifications,
selected technologies and preferred processing sequence, local conditions, utility
specifications and design standards. A chart describing the modified or new
facilities for the Project is shown below:
PAGE 2 OF 81
DATE: JULY 10, 2009
Unit Post Modernization
Capacity
(KB/SD or Other)
New or
Expanded
Technology
Source
Primary Distillation 95.0 Expanded Open-Art
Vacuum Distillation I 21.0 Re-rated Open-Art
Vacuum Distillation III 35.0 New Open-Art
Coking of Vacuum Residue 22.6* New Licensed
Naphtha Hydrotreater 13.3* New Licensed
Naphta catalytic reformer and Splitter 9.5* * New Licensed
FCCU (Fluid Cat Cracker Unit) and URG
(Gas Recovery Unit)
25.0* Expanded Licensed
Fluid Cat Cracker Naphtha
Hydrotreatment
9.5* New Licensed
Diesel Hydrotreatment 41.0* New Licensed
Gas Recovery Unit (URG II) TBD During FEED New Open-Art
Treatment Plant Turbo A1 20.0* Expanded Open-Art
Amine System TBD During FEED New Open Art
Sulfuric Acid Plant 460 Tonnes/Day* New Licensed
Hydrogen Plant 30MSCFD* New Licensed
LPG Treatment 8.0* New Licensed
Caustic Treatment Units Expanded Open Art
Caustic Treatment Units Expanded Open Art
Cogeneration (Heaters & Boilers) TBD During FEED New Open Art
Utilities and Off-sites TBD During FEED
Expanded
& New
Open Art
General Facilities & Services (incl. new
product dispatch jetty and Electric Power
Plant)
TBD During FEED
Expanded
& New
Open Art
NOTES:
* These capacities are preliminary, and shall be defined as part of the FEED-EPC CONTRACTORs
services.
- For BDPs for Open Art units are to be prepared by the FEED-EPC Contractor.
- Licenses of the process and Basic Packages of the licensed processes shall be provided by the
EMPLOYER in FEED phase.
1
- TBD: To be Determined
- Treatment Unit of sour waters is about an Open Art process which Basic Engineering shall be
developed by FEED-EPC CONTRACTOR.
2

1
Question 55 Round 1
2
PAGE 3 OF 81
DATE: JULY 10, 2009
Detailed information available on every existing Process Unit in the Refinery shall be
forwarded to the Successful Bidder who obtains the award of a bid, at the beginning of
the works
3
.
During the execution of the FEED activities, the FEED-EPC CONTRACTOR shall
execute the processes and mechanical condition diagnostics of the existing units, in
order to define all the modifications and additions to execute. The Bidders, to prepare
their proposal, shall use the information given in the IFP (Bases) and visit the units as
many times as they may consider necessary, requesting previously an appointment to
the EMPLOYER
4
.
This section of MJS Part B Bases of Design describes Existing inside ISBL and
outside OSBL Units of the battery limits their function and existing capabilities
(Subsection 2.1) and also describes the facilities to be Expanded/Modernized and
their capacities (Subsection 2.2).
2.1. Existing ISBL (see Figure 2-1 Existing Configuration)
The existing Atmospheric Tower is a multi tray distillation column that
separates the desalted crude into numerous distilled cuts such as Light
Naptha, Heavy Naptha, Kerosene/Jet Fuel and Diesel. The bottoms from
the Tower (Reduced Crude) are fed to the two (2) Vacuum Distillation
Units. The current capacity of the Unit is 62 KBSD of crude.
There are two (2) existing Vacuum Distillation Towers (UDV I, II) that
process the Reduced Crude from the Atmospheric Tower and separate
them into various cuts, including Light and Heavy Gas Oils (for the
production of Diesels and for increasing the Catalytic Crack Gasolines
respectively) as well as Vacuum Residuals which serve for producing
Asphalts and Fuel Oil. The capacity for VAC-1 which has been operated
at 26-28,000 BPSD, is to be (re-rated) for high sulphur products
operation at a 21,000 BPSD capacity. The capacity for VAC-II is
approximately 2,000 BPSD; this unit shall be decommissioned.
The existing Fluid Catalytic Cracking Unit (UFCC) processes HV Gas
Oils and cracks them to produce lower carbon containing compounds
that increase the octane number of gasoline. Overhead gases from the

3
4
Question 176.f Round 2.
PAGE 4 OF 81
DATE: JULY 10, 2009
FCC are sent to the Gases Recovery Unit (URG) to produce LPG. The
FCC capacity is 19,000 BPSD.
2.1.4 Gases Recovery Unit (URG)
The existing Gas Recovery Unit (URG) processes the overhead gasses
from the FCC and produces LPG as a condensate stream. Off gasses
are sent to the flare. The URG capacity matches with the existing
capacity of the FCC Unit and should be revamped to suit.
2.1.5 Merox Unit
The existing Merox Unit turns the mercaptants to disulphurs of the FCC
Naptha stream by using caustic and catalyst which is regenerated by an
air stream to produce low sour gasoline. The Merox Unit capacity is
approximately 8,000 BPSD and its future use will depend on the solution
provided by the Licensor to develop the New FCC Gasoline HDT.
In the existing Caustic Treatment Plant, the light Naphtha, heavy Naptha
and Kerosene from the Atmospheric Tower are converted to finished
products (Solvent 1, Solvent 3, Gasolines and Jet Fuel/Kerosenes).
The capacity of the Caustic Treatment Plan is only adequate for 62,000
BPSD of Crude.
2.2. Existing OSBL
2.2.1 Utilities
This section provides the Refinery with the following streams:
Steam: 150# and 600# systems
Air: For Plant and Instrumentation purposes
Sea water: For process cooling purposes and firefighting system
Fuel Gas: involves the purchased natural gas and refinery gas
Raw water
Electricity distribution system
- The electric system shall be modified and extended pursuant to
the Project requirements, which includes the self generation
power system.
PAGE 5 OF 81
DATE: JULY 10, 2009
- There is no specific requirement for the modification of the power
system. The Contractor must design it pursuant to future
necessities and existing standards.
- Existing one-line diagrams shall be provided to the Successful
Bidder
5
2.2.2. Process Control System
The current Refinery counts with control systems of processes of
different technology; of this way, the system of the Distillation Primary
Unit consists in a control room installed in 2003, which counts with a
DCS, with a Emergency Shutdown system (ESD) from Siemens
Technology. For the case of the Complex FCC (UVD I, FCC, URG,
Merox Unit and WWS) consists of a control room with systems basically
pneumatic systems that were installed originally in 1974, and some
electronic systems installed in recent years.
The Utilities count also with a Control Room of pneumatic Control. By its
part the Offshore n 1 possess its own control stati on that involves the
dispatch systems an, the technology is electronic but need to repowered
due to its poor mechanic condition.
The Refinery is installing a new system to control the level of the tanks
store.
2.2.3. Flare System
It consists of:
Pressure relief systems for the FCC Complex and the Primary
Distillation Unit.
Blow down system: There are two drums into the FCC Complex to
recover the liquids heavier than butanes, and two others drums to
recover liquids heavier than propane. The last ones are located in the
base of the Flare.
The Flare. There is a solely smokeless flare (steam assisted) located
in a hill toward the west side of the Refinery
2.2.4. API and CPI Separators
The oily water from the drainage systems flows to the oil-water
separators to recover the oil before to be released to the ocean. There
are two API separators which process the oily water from the Topping
Unit and the Storage area.

5
Question 51 Round 1
PAGE 6 OF 81
DATE: JULY 10, 2009
The CPI separator process the oily water from the FCC Complex.
In addition, the Refinery has a flood system to gather and dispose the
raining water from the tankage area, that is collected in the containment
dams of the storage tanks during the rainy season and which must be
poured into the sea
6
.
2.2.5. Storage Tankage
The storage tanks are distributed on the east and south sides of the
refinery grouped according to the fuel type produced.
In addition, the refinery has a tankage yard located in the east side of
Talara (called Patio de Tanques Tablazo) to receive all the oil production
od the Talara basin.
A brief list of the storage tanks follows:
Products Tank Number Capacity (MB)
Crude Oils 14 1,116
LPG 04 55
Gasolines 143 933
Solventes 02 17
Jet Fuel A-1 04 135
Kerosene 02 66
Diesel 09 490
Fuel Oils 13 723
Asphalts 10 38
Medium
Products
09 260
Slop 08 50
Others (1) 14 332
Total 102 213
(1) Include raw water and chemicals

6
Question 34 Round 1
PAGE 7 OF 81
DATE: JULY 10, 2009
2.2.6. Dispatch systems
Around 80% of the refinery production is dispatched to the market using
vessel ships through the 2 following systems:
Offshore Mooring Berth
Located towards the south of the Refinery, consists of two submarine
pipelines, 12 diameter and 1,600 m long each, plus four 100 TM
buoys as a mooring berth. Crude oils are received and fuel oils are
dispatched
Product Pier N1
Located at the Talara Bay, consists of 6 weigth balanced quick
coupling tanker loading arms and an electronic control system for
operation and emergency shutdown. It has 04 mooring wharfs. It is
used to load and unload different products from LPG to fuel oils and
to receive crude oils.
This offshore count with a Ballast Plant for the treatment of the oily
water that is in charge of processing the water received of the ships.
This plant needs to be evaluated and repowered according to the
future requirements of dispatch.
In addition, the Refinery has 2 Sale Plants located in Talara and Piura
(100 km. southern Talara), to attend the demand of the local market.
These plants are out of the TRM Project Scope.
2.2.7. Buildings
Several buildings are located into the refinery for the operating and
supporting personnel (i.e control rooms
7
, laboratory, warehouses, pump
stations, maintenance shops, and administrative areas).
Also, a firefighting station is located at the south side of the refinery.

7
Question 56 Round 1 (More details about the characteristics of the Control Room shall be
provided to the Successful Bidder).
PAGE 8 OF 81
DATE: JULY 10, 2009
FIGURE 2-1
TALARA REFINERY
EXISTING CONFIGURATION
UDV I
UDV II
Crude
UDP
Light Naphtha / Solvent 1
Heavy Naphtha / Solvent 3
Kerosene / Jet Fuel A1
Caustic
Treatment
Plant
Diesel
LVGO
HVGO
Slop Wax
VaccumBottoms
LGO
HGO
VaccumResidue II
FCC
URG
Merox
Unit
FCC Naphtha
LCO
HCO
CSO
Solvent 3
Solvent 1
Gasolines
Jet Fuel A-1
Kerosene
Diesel 2
LPG
Cut Material
Fuel Oil
Asphalts
UDV I
UDV II
Crude
UDP
Light Naphtha / Solvent 1
Heavy Naphtha / Solvent 3
Kerosene / Jet Fuel A1
Caustic
Treatment
Plant
Diesel
LVGO
HVGO
Slop Wax
VaccumBottoms
LGO
HGO
VaccumResidue II
FCC
URG
Merox
Unit
FCC Naphtha
LCO
HCO
CSO
Solvent 3
Solvent 1
Gasolines
Jet Fuel A-1
Kerosene
Diesel 2
LPG
Cut Material
Fuel Oil
Asphalts
PAGE 9 OF 81
DATE: JULY 10, 2009
2.3. Expanded/Modernized ISBL [Process Units] (see Figure 2-2
Expanded/Modernized Facilities)
This section of MJS Part B Basis of Design describes the expected ISBL Unit
functions and their new or expanded capacities. The processing sequence and
flow rates indicated herein are derived in Case 2 of FED-2 work performed by
Arthur D. Little and ENGlobal. As noted, the selected FEED-EPC Contractor t
shall independently verify that these relationships and rates are accurate and
satisfy the overall integration and optimization of the modernization facility. The
Conceptual Engineering prepared by Arthur D. Little/ENGlobal will be provided
only as a reference and shall be used by the FEED-EPC CONTRACTOR on its
own responsibility. The FEED-EPC CONTRACTOR must perform the integration
of the licensed Basic Design Packages to be provided by the EMPLOYER, and
the open-art Design Packages prepared by the FEED-EPC CONTRACTOR.
Direct use of the Arthur D. Little/ENGlobal information will be at FEED-EPC
CONTRACTORs sole risk
8
.
Within the scope of the service, the FEED-EPC CONTRACTOR must revise the
existing instrumentation, and replace whatever is necessary, pursuant to the
technology defined in the Basic Engineering to be developed
9
.
The Existing (Atmospheric) Tower will need to be modified to process an
increased load of crude (from 62,000 to 95,000 BPSD)
The FED-2 studies suggested the following modifications that must be
confirmed, verified and possibly adjusted by the FEED-EPC Contractor:
Increase in the tower bottom diameter.
Replacement of trays in all the tower sections.
Possible needs to respecify metallurgy of tubes of the crude feed with
high acidity and high sulphur.
Additional heat exchange surface in the cut (side) streams to
accommodate the higher flow rates.
Possible addition of a preflasher tower between heater and CDU
tower to separate reduced crude avoiding intervention in the tower
bottom, and reducing CDU shut down time.
The FED-2 study indicated that, after discussion with the vendor, the
Desalter can handle the increased flow rate by increasing the
temperature of the Desalting operation. However, the maximum salt

8
Questions: 53 Round 1 and 143 Round 2
9
PAGE 10 OF 81
DATE: JULY 10, 2009
content that a single stage Desalter leaves in the treated crude, may
affect the quality of the coke produced in the coker unit; this should be
addressed.
The CONTRACTOR shall design the UDP keeping the operating
flexibility to produce the aliphatic solvents (Solvent 1 and Solvent 3),
following the quality specifications of these products.
2.3.2 Vacuum Distillation Unit I (UDV-I)
According to the FED-2 study, the existing Vacuum Distillation Unit I is
undersized for the expanded capacity and will need extensive
renovations.
The capacity for VDU-I is to be derated to 21,000 BPSD, to deal with
higher furnace inlet temperature and a higher salt and sulfur content.
2.3.3 Vacuum Distillation Unit II (UDV-II )
The existing Vacuum Distillation Unit II will be decommissioned and
taken out of service.
2.3.4 Vacuum Distillation Unit III (UDV-III )
Vacuum Distillation Unit III will be a new unit. The FED-2 study suggests
it will be twice the size of the existing Vacuum Distillation Unit I. The total
capacity for VDU-III is to be 35,000 BPSD. The capacity of combined
Vacuum units should be 56,000 BPSD.
The new Coking Unit (CKU) will process the bottoms streams from the
Vacuum Towers (Units I and III). Coke and natural gas shall be burned
to supply heat for the coking operation. Light coking vapors are sent to
an internal Gas Recovery Unit, and heavy coking liquids that are coked
and converted materials are sent to a scrubber and fractionator.
The coke produced is sent to a gasifier where it is converted to a low
gas (Low Btu Gas) which is cleaned up with an internal Amine
Treatment Unit before being used as refinery fuel gas, while purged and
recovered coke fines released and recovered are deposited in bins and
transported off site for sale.
The capacity for the Coking Unit is to be 22,600 BPSD*.
PAGE 11 OF 81
DATE: JULY 10, 2009
The new Naphtha Hydrotreatment removes the sulfur from the Reformer
feed to prevent poisoning of the catalyst. This Reformer consists of two
reactors in series and a stripping column.
The capacity of the Naphtha Hydrotreatment is to be to 13,300* BPSD.
The new Naphtha Splitter (UDNP) processes the desulphurized Naptha
stream to keep the benzene precursors out of the Reformer, so that high
octane finished gasolines meet max benzene specification. Unreformed
naphtha is of low octane, but increases the volume of gasoline. The
capacity of the Naphtha Splitter is to be 13,300* BPSD*.
The new Reformer (URCN) converts straight run virgin and coking
naptha to high octane aromatics hydrocarbons for gasoline blending. It
consists primarily of feed furnaces, a series of reactors, separators;
recycle gas compressor, and a product stabilizing unit.
The capacity of the Reformer is to be 9,500 BPSD*.
2.3.8 Fluid Cat Cracker Unit (FCCU)
10
and Gas Recovery Unit (URG-I)
The existing FCCU Unit will need several modifications to accommodate
the increased feed rate of 25,000 BPSD*.
According to the FED-2 study, the suggested modifications are
11
:
Re-design of the FCC catalyst Regenerator section in order to
process the higher coke content as a result of the FCC capacity
increase.
Replacing of the standpipes and slides valves to match the higher
mass and heat fluxes.
Replacing of the process control and emergency shut down systems.
Redesign of the main fractionator tower in line with the higher
capacity.
Replacing or increasing the capacity of the wet gas compressor and
the air blower.

10
Question 156 Round 2 (Item 2.3.8 is about the Catalytic Cracker Unit which will be modified
and expanded but not demolished).
11
Question 43 Round 1 (More detailed information shall be provided to the Successful Bidder of
the selection process).
PAGE 12 OF 81
DATE: JULY 10, 2009
Modification of the riser, disengager, stripper and cyclones.
In addition to modifying the existing Gas Recovery Unit I to handle the
increased FCC off gases, a new URG II will be necessary to handle the
off gases from the other new units (Vacuum Unit, Reformer and
Hydrotreatment Units)
Sulphur rich off gases from the URGs I and II will be sent to the new
Amine Plant for H
2
S removal.
The new FCC Gasoline Hydrotreatment (HDSG) removes sulfur from the
FCC gasoline to meet sulfur requirements. This is accomplished by
mixing hydrogen and FCC gasoline over a catalyst bed where the
sulphur is removed. The gases are treated in the new URG II Unit and
then are sent to the new Amine Unit for processing.
The capacity of the FCC Gasoline Hydrotreatment is to be 9,500 BPSD.
The new Diesel Hydrotreatment (HDSD) serves for two purposes: it
removes sulphur from the diesel fuel (blend of diverse streams such as
light gasoils including virgin, vacuum and cracked streams) and also
open ring compounds in the diesel, thus increasing the Cetane number.
This unit shall be designed to process the LCO stream from the FCC
Unit. The product is desulphurized diesel fuel for sale. The gases are
sent to the new URG II Unit.
The capacity of the Diesel Hydrotreatment is to be 41,000* BPSD
2.3.11 Amine Plant
The new Amine Plant removes hydrogen sulphide from the plant off gas
stream by stripping it with recirculating amine. The absorbed H
2
S in the
amine stream is stripped off in the Stripper column and sent to the
Sulphuric Acid Plant. Sweet gas that is produced in the Absorption
column is used as refinery treated gas.
The capacity of the Amine Plant is to be determined during FEED.
The new Sulphuric Acid Plant converts the Hydrogen Sulfide from the
Amine Plant directly to Sulphuric Acid, without going through the process
of producing elemental sulphur. Sour WWS unit gases containing
ammonia are also sent directly to this unit, where the ammonia is
PAGE 13 OF 81
DATE: JULY 10, 2009
converted to nitrogen. The Licensor must determine if the tail gas stream
needs to be treated with hydrogen peroxide to meet emissions limits.
The capacity of the Sulphuric Acid Plant is to be 460 Tonnes/Day*.
The new Hydrogen Plant will be built to generate hydrogen for the
hydrotreater (desulphurization) units.
The capacity of the Hydrogen Plant is 30 MM SCFD*.
The existing units have to be resized in order to process the higher flow
rates of kerosene, jet fuel and industrial solvents, looking for the
complying of the products specifications.
The modernized Jet Fuel A1 shall include new contact elements, salt
filters and clay, and heater interchangeable as well, so the quality
specifications are satisfactorily accomplished for this product.
The Refinery is performing a project to install a Spent Caustic Oxidizer
Plant, which capacity has to be reviewed by the FEED-EPC
CONTRACTOR according to the new expected flow rates.
A new licensed process shall be design and installed to remove all the
sulphur compounds of the LPG streams (URG I and URG II and others).
The CONTRACTOR shall analyze the convenience of re-use the existing
caustic LPG treatment facilities.
* These capacities are preliminary, and shall be analyzed in the
Contractors process optimization scope, and approved by EMPLOYER..
New facilities have to be installed in order to recover off gases and flue
gases from the refinery and produce steam and electricity to satisfy all of
the modernized refinery necessities. Natural gas shall be used to
complement the energy requirements.
During the FEED effort, the CONTRACTOR shall optimize the basic
design of the final energy system looking for the electricity self generation
and using the heat and mass balance for the refinery. The new electricity
PAGE 14 OF 81
DATE: JULY 10, 2009
system shall be design to comply a reliability factor of 0.999, and the final
design shall be approved by EMPLOYER.
According to the Project feasibility study, the Refinery will not sell
electricity to the public grid (Red Electrica Peruana), but will buy from this
system a small quantity of electricity to be used in non-critical uses.
The burners of fire heaters and boilers shall be designed to maximize the
refinery off gases production, in particular the flexigas.
The modernized refinery shall count with a centralized process control
system that integrates all the units of processes, utilities, storage areas,
and dispatch and the emergency shutdown and plant shutdown
correspondent systems. The FEED-EPC CONTRACTOR, trough the
MAC subcontractor during the FEED phase of the services, shall execute
the whole process design.
Regarding the activities to develop in the FEED phase, by MAC include
among others:
The basic design of the process control system of TRM Project to
integrate all the packages of engineering of licensed basic design
and Open Art.
Integration with the existing control systems, for which it must be
previously, defines those that can be recovered and /or repowered,
according to the design standards.
Replacement of the existing systems that may not be integrated to
the new control system.
Design and implementation of the control systems of inventory of raw
material and Products, dispatches and management of the assets,
having as reference the strategies of ERP of the EMPLOYER.
Development of the detail Engineering necessary for the stimulation
of Project Costs (OBE), of the process automation and of the control
systems.
Design of the emergency systems for each one of the Unities of the
modernized refinery.
Design and installation of a database of the project and a control
system of documentation. All the drawings developed shall get
integrated using the Plant Design Management System, described in
PAGE 15 OF 81
DATE: JULY 10, 2009
chapter 11- Design Management Plan, Part A of the Master Job
Specifications.
Design and implementation of a System of General Information to
compile and control all the data of the modernized refinery
(production, maintenance, logistic, accountability, sales and
marketing, etc) elaborating the proper interfaces with the ERP of the
EMPLOYER.
2.4.3 Feed, Intermediate and Product Storage
The design of the storage and handling system shall maintain the high
product quality of products as required for delivery to the customer.
It will be necessary to improve the systems of inventory control and
custody transfer systems in order to process all the data from the existing
and new storage and dispatch facilities
12
.
The material of construction selected shall maintain the required quality
with no significant deterioration of product quality. These aspects must
be taken into account in selecting the most economic material for
construction.
There are currently 13 fuel oil storage tanks with a capacity of 723 M bbls.
The new refinery configuration will produce less fuel oil. Some of the
existing fuel oil tanks may be converted into diesel fuel service.
The crude oil storage tanks shall be designed to store a
minimum of 30 days supply. The current crude oil storage is
1,116 Mbbls. The expanded refinery nominal capacity of
90,000 BPDC will require approximately 2,700 Mbbls of storage
at a minimum.
The deficit of 1,584 Mbbls can be made up by changing the
service for some tanks, which are also of a floating roof, but it
may be preferable to add new higher capacity crude tanks.
The Reduced Crude storage requirement is 135Mbbls. This
requirement can be filled by converting some of the fuel oil tanks
freed up by the change in the refinery product slate.

12
Question 44 Round 1 (More details about the instruments to be reused or replaced shall be
provided to the Successful Bidder)
PAGE 16 OF 81
DATE: JULY 10, 2009
2.4.3.2. Intermediate
Two days storage will be provided for each intermediate. These
products are:
Coker Feed
FCC feed (The FCC gasoline hydrotreatment will not need
intermediate storage, since this unit can be integrated into
the existing FCC gas plant and continuously operated as a
part of the gas plant.)
Diesel Hydrotreatment Feed
Naphtha Hydrotreatment Feed
Reformer Feed
Light Naphtha
Reformed Naphtha
Reduced Crude
In addition, blend tanks for both gasoline and diesel fuel will be
needed. These tanks will be converted from either existing fuel
oil or existing gasoline storage.
It is clarified that the scope of the services includes in-line
blending systems for gasoline, diesel and residual oils. Some
blending tanks shall be used for the export products
13
.
FEED-EPC design is expected to provide lines and pumps as
required to change services on the tanks in the tank farm as
indicated on the tank service change table.
2.4.3.3. Products
The product storage tanks shall be designed to store a minimum
of 15 days supply. The current total product storage is 1,679
Mbbls, excluding the residual oil. The expanded refinery nominal
capacity of 90,000 bbls/day will require approximately 1,341
Mbbls of storage, at a minimum, leaving an excess of 338 Mbbls,
which would be used for intermediate products. It can be noted
from the table below that additional LPG and diesel storage are
required. The shortage of diesel fuel tanks can be covered by
changing the service of existing fuel oil tanks to diesel fuel, and
possible new large Diesel tanks.
Within the scope of the service, the Contractor must revise the
existing instrumentation, and replace whatever is necessary,
pursuant to the technology defined in the Basic Engineering to

13
PAGE 17 OF 81
DATE: JULY 10, 2009
be developed. Moreover, the Contractor shall integrate the
existing systems that would be compatible with the design and
technology of the new Distributed Control System of the Refinery
to be installed
14
.
The deficit in LPG storage will need to be covered by
constructing new bullet tanks horizontally pressurized or
spheres. As an option it will be analyzed the use of semi-
refrigerated spheres.
New sulphuric acid tanks will also be required as a part of the
new sulphuric acid unit. A shipload of sulfuric acid is 35,000
tonnes.
Tankage designed to hold an entire shipload is necessary while
another tank should be available for storage of production.
Installation of two new 120,000-140,000 Bbls or three
60,000Bbls sulphuric acid tanks should be studied and
implemented.
The CONTRACTOR shall design the new facilities keeping the
storage capacity and dispatch systems to ship the aliphatic
solvents (Solvent 1 and Solvent 3), straight run naphtha and
FCC naphtha, the flow rates will remain like the current volumes.
The FEED-EPC design is expected to move the four tanks
indicated on the plot plan to the new location and provide
concrete paved dikes or similar technology as required by
Peruvian law.
The current required storage by products is as follows:
Product
Current
Product
Storage,
Mbls
Required Storage at
Nominal 90,000 BPD
Feed, in the CDU
(Mbls)
Product
Excess or
(Shortfall),
Mbls
LPG 55 132 77
Gasoline 933 288 645
Kerosene 66
Jet Fuel 135
257 56
Diesel 490 649 (159)*
Sulphuric Acid 0 15 (15)**
Total 1,679 1,341 338
* To be covered by the conversion of Fuel Oil tanks.
** Requires 30,000 bbls for a full shipload of product.

14
PAGE 18 OF 81
DATE: JULY 10, 2009
The FED-2 Study suggested modifications and/or further studies that will
be required during the FEED stage for Special Utilities and Offsites are
noted in the following sub-sections. This needs to be confirmed,
validated and detailed by the FEED-EPC Contractor.
New utilities in principle shall be grouped in a new Utilities II area, and
shall include only new equipment to serve new process units. Existing
utilities may be normalized or derated for more stable operation and
serve the revamped units in whole or part.
2.4.4.1 Air for Instruments
Replacement of the instrument air surge drums (if they are not
suitable for the increased pressure) and increase instrument air
operating pressure from 50 psig to 125 -150 psig.
Replacement and upgrade the instrument air compressors and
dryers to handle both the existing and new instrument air load
with at least one spare compressor and provisions for nitrogen
back up to the instrument air system.
Evaluate existing flare system including existing relief valve
sizing to meet the current codes and accommodate the existing
unit revamped capacity. A new ground flare for new units
should be studied and provided as indicated in the next
numeral.
Install a new smokeless steam assisted flare with accumulators
of liquid separation that will accommodate the refinery
expansion. A ground flare multi-nozzle progressive relief grid
should be studied.
Design and install a new a flare gas recovery system to recover
the gases heavier than ethane, to be segregated to the LPG
inventory, and the C1/C2 gases to be included to the fuel gas
system.
2.4.4.5. Deep Sea Piping Installation for Cooling Water
Install a deep sea intake system in the Pacific Ocean capable of
intaking and delivering 65,000 gpm of sea water for cooling.
The design of this structure shall be required to reduce inlet
PAGE 19 OF 81
DATE: JULY 10, 2009
velocity to less than 0.5 ft/sec with screen openings not to
exceed 5 mm and provide a Medusa fence (adult jelly fish) to
protect the intake from the seasonal presence of these
seafares.
Install a combined seawater and wastewater discharge line to
discharge the warm seawater and the plant wastewater
according to Peruvian law so as to not be visible from the
beach, or have impact about the use of the beach. This system
shall include a passive aerator to reduce the residual chlorine.
The seawater discharge needs to be located so as to not mix
with the intake water and to discharge the water using a
disperser to maintain a temperature not to exceed 2.5 C at the
point of the mixing zone, which will be approximately 100
meters or less from the discharge pipe. If seawater from the
Pacific is used, this should not be a problem with a reasonable
temperature rise of 10 to 15 C for the cooling wate r. If the
source of cooling water is from Talara Bay, this water would be
out up to 2 C warmer than the Pacific Ocean and it would be
very expensive to build a dispersion device that would handle
the expected temperature rise limit.
2.4.4.7 Segregated Wastewater Stream Treatment
Wastewater streams now all flow into the existing API and CPI
(Corrugated Plate Interceptor) separators where cooling
seawater and all other waste streams are co-mingled. This
system may be demolished and a new segregated system be
installed with separate treatment systems on each wastewater
stream as detailed below:
o Oil/Water Separation
Oil/water separation should be designed to remove most of
the oil from the desalter using the existing CPI separator
followed by a centrifugal separator, or equivalent device,
that will remove oil up to 10 ppm or less. This will be
followed by a DAF (Dissolved Air Flotation) unit and/or oil
absorbing clay bed to assure that the wastewater stream is
below 10 ppm oil and grease at all times. A centrifugal
separator may also be used on the crude oil tank drain
streams routed into the same back up system to assure that
the discharged oil and grease do not exceed 10 ppm. All
sumps that collect oil and CPI separators discharges will be
equipped with tube skimmers to remove any floating oil prior
to final separation producing a recovered oil stream that will
PAGE 20 OF 81
DATE: JULY 10, 2009
be over 95% oil and contain minimal water. All wastewater
discharge streams will be monitored by oil in water
sensor(s) that will alarm the operator if the free oil and
grease exceeds 10 ppm.
o Biological Treatment System
Since the discharge of the desalter, crude oil tank water
draining and treated chemical sewer may exceed the
allowable level of COD (Chemical Oxygen Demand), the
project may require these streams to be further treated in a
biological treatment system to reduce the dissolved
composed organics.
o Chemical Sewer Treatment System
The chemical sewer discharge should be treated as follows:
The stream shall be acidified to free up the contained
saponified oil. The oil then will be removed for recovery
using a CPI separator with a tube skimmer followed by a
DAF unit. The discharge pH will have to be adjusted to be
in the allowable range of 6 to 9 prior to discharge or
additional treatment.
Install a four hour fire water storage tank (fresh water), jockey
pump, electric pump, and diesel pump for the fire water system.
Also install diesel pumps in the Pacific Ocean sump to provide
the necessary back up firewater after four hours. The docks
can be served by using the existing seawater supply lines as
fire water lines.
The CONTRACTOR should thoroughly check the current
design, the mechanical limitations and the general problems
of the existing equipment, for subsequently deciding its
operative continuity within the new process outline
15
.
The CONTRACTOR must define first the foreseen risks and
the new characteristics required by the fire-prevention water
system for the improved and new units
16
.

15
16
PAGE 21 OF 81
DATE: JULY 10, 2009
2.4.4.9. Fuel Gas System
Install a dual refinery fuel gas system capable of separately
handling Flexigas and refinery fuel gas and evaluate exporting
the surplus refinery fuel gas to over the fence installations like a
new Power Plant.
The new refinery Power Plant utilizes 4 gas turbines and one
Waste Heat Recovery Boiler that will serve as a basis for
Cogeneration of steam and electricity. Treated refinery off gas
should be used as the design basis for fuel; natural gas will be
used as a stand by fuel to this critical unit.
Install a Nitrogen Pressure Swing Absorption (PSA) plant to
provide nitrogen for purging and as a back up to the instrument
air system. This would include a compressor to provide
nitrogen at 125-150 psig and a surge tank capable of holding
enough nitrogen to purge the two largest hydrocarbon vessels.
The flow rate should provide adequate nitrogen to refill the
surge vessels in less than 24 hours plus the normal usage of
purging nitrogen on tanks and the flare system.
2.4.4.11 Buildings
The FED-2 Study suggested the following Building additions.
This is to be confirmed, validated and detailed by the FEED-
EPC Contractor.
The CONTRACTOR must prepare the design corresponding to
the new installations based on the Plot Plan of Appendix 5.1 of
Part B Bases of Design of the MJS, the preliminary location of
the new Power Generating Plant and the existing electrical Sub-
station is shown
17
. The availability, conditions and restrictions of
the electric power and fresh water supply that the EMPLOYER
will provide for the building works, shall be determined when the
Contractor has defined its requirements and schedules
18
.
An area located in the eastern side of the Refinery has been
also taken into consideration for the contractors. It is indicated
as Area available for new facilities (See Plot Plan provided in
Appendix 5.1)
19
.

17
18
19
PAGE 22 OF 81
DATE: JULY 10, 2009
The requirement or the non-requirement of any additional sub-
station shall be defined by the Contractor within the scope of
the services.
20
.
FEED-EPC CONTRACTOR shall be responsible for the hazard
and operability studies (HAZOP or others) for the complete
configuration of the modernized refinery to minimize the
damages to the personnel and the facilities. Particularly for the
distribution and distancing of the equipments and processes
facilities, it shall be taken into account the standards of the IRI
(Industrial Risk Insurers) or superior ones
21
. In the scope of
services for the licensed Basic Design Packages, preliminary
hazard studies for each licensed Unit have been included
22
.
o Administrative, Technical Office Building and Laboratory
Building
Install an approximate 1900 m
2
Office Building for
administrative, technical, and management office personnel
and a 1200 m
2
Laboratory Building for the analytical
requirements of the enlarged and modernized facility.
These buildings should be located at a safe distance for
worst case explosion conditions using either distance or
building design to handle adequate over pressure to
withstand the worst case explosion in the newly configured
refinery.
o Central Control and Operations Center Building
Install a central control room and operation center remote
from the refinery located at a safe distance for worst case
explosion conditions using either distance or building design
to handle adequate over pressure to withstand the worst
case explosion in the modernized refinery.
The design of the Control Room for all the operations of the
Refinery is within the scope of the Contractors services, for
which it should take into consideration the Basic Design
Packages of the licensed and open-art processes
23
.
The design of the buildings (technical and administrative offices,
laboratory, operation and control centers) and the number of
persons that shall work shall be defined by the Contractor by
means of a revision of the Preliminary Implementation Plan

20
21
22
Questions 105 and 241 Round 1.
23
PAGE 23 OF 81
DATE: JULY 10, 2009
presented in Appendix 5.4 Part B Bases of Design of the
Master Job Specification (MJS)
24
.
The FED-2 Study suggested the following Harbor Facilities
modifications/upgrades. They need to be confirmed, validated
and detailed by the FEED-EPC Contractor.
o Liquid Product Loading Dock
Construct a new liquid product loading dock in Talara Bay
for handling of refined products and sulfuric acid, capable of
loading one or two 35,000 DWT ships at one time in addition
to the existing liquid product dock. Sulphuric Acid shipping
shall take place on the new dock.
o Upgrades in the existing Shipload Dock
Upgrade the existing shipload dock to handle the dispatch
of powdered coke in containers on 35,000 DWT ships, as an
alternative to the facilities for containers truck loading.
o Upgrade the Ballast Plant
The existing Ballast Plant will be evaluated to define its
operativity and scope of the necessary modifications in
accordance to the design of the systems of modernized
dispatch and the upgrades to be implemented in the docks.

24
PAGE 24 OF 81
DATE: JULY 10, 2009
FIGURE 2-2
OPTIMIZED REFINING SCHEME
(Expanded/Modernized Facilities)
Note: Iquitos Reduced Crude is a foreign stream which is produced by the Petroperu Iquitos
Refinery and shipped to the Talara Refinery. It is composed by reduced crude (80% vol) plus
straight run naphtha (20% vol), and the average flow rate is 3,500 BPD. It shall be analyzed then to
be used in the refinery optimized by the CONTRACTOR.
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3. DESIGN BASIS
Equipment design and sparing should be sufficient to obtain a
minimum operating service factor of 0.95, with 3-4 years of
operations between major shutdowns or general inspections. To
achieve this high reliability, all components of the plant should be of
proven design with the necessary redundancy.
The selection of materials for the plant and critical parts of principle
equipment will be designed for a 40 year service life, taking into
consideration safety factors, climatic conditions, etc.
The refinery will be designed to produce the following product slate
from a 95,000 BPSD of Crude Feed:
Product # Product Title
Nominal
Production Pattern
1. LPG 8,831 BPD
2. Gasoline 19,352 BPD
3. Kerosene/Jet Fuel 8,200 BPD
4. Diesel Fuel 39,819 BPD
5. Heavy Fuel Oil & Asphalt 10,837 BPD
Total Liquid Product (1-5) 87,039 BPD
6. Sulphuric Acid 460 T MD
7. Petroleum Coke 488 T MD
EMPLOYER has defined a service factor (refinery utilization factor) of
95% as a minimum. During the FEED effort the CONTRACTOR must
follow this instruction, taking in account the complexity of each
process unit. Any change shall be approved by the EMPLOYER.
Solvent streams shown in Figure 2-2 are intended to be transferred to
other EMPLOYER refineries for processing, while Naphtha stream
shown in Figure 2-2 will be used in the TRM Gasoline pool. But the
refinery will keep the operating flexibility to maintain the production
and dispatch of these streams.
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Capacities of individual units are listed in Sections 1 and 2 of this
MJS Part B Basis of Design document. The refinery must be able to
operate efficiently at a minimum 50-60% of the design capacity.
The FEED-EPC CONTRACTOR, in consultation with the
EMPLOYER or EMPLOYER Representative, will develop design
philosophies which will serve as a basis and dictate the design for:
Complying of the project objectives
Energy recovery
Piping hydraulics
Waste and Effluent generation and management
Process controls
Electrical consumption
The International unit system of measurements will be used,
nevertheless for the measurements of volume or flow rate they will be
indicated also in barrels and barrels per day and the measurements
of pressure expressed in kilogram/ square centimeters and in
pounds/square inch.
The following Subsections of Section 3.2 of this MJS Volume 2 Basis of
Design document provide the Feed and Product Specifications for the Talara
Modernization Project.
PAGE 27 OF 81
DATE: JULY 10, 2009
Feed
3.2.1 Crude Oil
Property Specification Units Method
API Gravity 18.8 @ 60 F ASTM D-287
Specific Gravity 0.9414 60/60 F ASTM D-1298
SaltContent 23.1 Lbs/1000 bbls ASTM D-3230
Pour Point +5 F ASTM D-97
Sulphur 2.18 wt. % ASTM D-4294
Salt Content 85.0 Lbs/1000 bbls ASTM D-3230
Pour Point 20 F ASTM D-97
Sulphur 0.071 wt. % ASTM D-4294
Salt Content 100 Lbs/1000 bbls ASTM D-3230
Pour Point -30 F ASTM D-97
Sulfur 0.094 wt. % ASTM D-4294
PAGE 28 OF 81
DATE: JULY 10, 2009
Salt Content 18.0 Lbs/1000 bbls ASTM D-3230
Pour Point -60 F ASTM D-97
Sulfur 0.065 wt. % ASTM D-4294
The design basis for crude oil slate expressed in
nominal BPD is:
Napo 57,500 BPD
Talara Blend 7,150 BPD
Talara Petrobras 3,000 BPD
Talara Petrotech 12,350 BPD
TOTAL 90,000 BPD
With an average refinery utilization of the refimery of
95% for the TRM Project the nominal 90,000 BPD
increases to a 95,000 BDP per stream day rate (BPSD)
3.2.1.6 Reduced Crude - Iquitos
It is a raw material. Its use must be evaluated by the
Contractor as part of the project basic engineering
services. The typical characteristics are:
25
Sulfur 0.5 % weight ASTM D-4294
kinematic
viscosity
40 cSt @ 120 F -

25
Question 54 Round 1
PAGE 29 OF 81
DATE: JULY 10, 2009
Flash Point 125
o
F ASTM D-56
3.2.2 Crude Oil Assays:
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3.2.3.1 Gasoline
PETRLEOS DEL PER PETROPER S.A.
MAIN OIL FUTURE SPECIFICATIONS
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3.2.3.2 LPG
PAGE 55 OF 81
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3.2.3.5 Solvents
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3.2.3.6 Asphalt
The minimum concentration will be 98% (in weight).
The coke produced will be sold as fuel coke (petcoke).

PAGE 57 OF 81
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The following chart shows a general description of the licensed packages
(L-BDP):
Unit New or Expanded
Coking of vacuum residue
New
Naphtha Hydrotreatment
New
Light Naphtha Splitter and Reformer
New
FCCU (Fluid Cat Cracker Unit)
and GRU (Gas Recovery Unit)
Expanded
LPG Treatment Plant
New
Diesel Hydrotreatment
New
Fluid Cat Cracker Naphtha Hydrotreatment
New
Hydrogen Production
New
Sulphuric Acid Production
New
3.3.1. BASES AND CRITERIA FOR THE LICENSED BASIC DESIGN.
a) Basic Design Philosophy
The licensor, for the elaboration of the BDP, shall be
follow the practices and standards generally accepted in
the international industry and the particular knowledge
that had developed in the commercial unit design of
proven success, accomplishing with the objetives, goals,
specifications and other indications given to the
EMPLOYER and specifying the equipment and systems
in armony with the security and the environment.
The Licensor shall establish a summary of the Design
Bases that are going to serve as bases for the
development of the Basic Design. The plant shall be
designed considering the adequate securities and factor
designs, weather conditions, winds, seismicity, etc.
b) Measurement System
The International System of Measurement will be used;
however, for the volume measures it should be indicated
PAGE 58 OF 81
DATE: JULY 10, 2009
the barrels per day and the pressure measures should be
indicated in kilograms/ square centimeters and pounds
and square inches.
c) Characterization of charges and products
The BDP cocking process of vacuum residue starts
and completes with the characterization of the charge
to be executed by the same Licensor.
The BDP process of Expansion and Modernization of
the FCC unit starts and finishes woth the
characterization of the charge to be executed by the
Licensors itself.
d) Minimal charge steady factor
Although it's quite clear that it is foreseen to operate the
plants to maximum design charge, the EMPLOYER
wishes to put it into consideration for operating to a
minimal steady secure charge sufficiently low.
e) Shutdown and Maintenance Times:
Scheduled general shutdowns are desirable at first every
4 years for process units exceptionally every 3 years.
f) Operative Flexibility
The basic design of the Unit shall be elaborated
considering the following conditions:
Normals, according to cases of design considered, for
example 50 ppm or 10 ppm S, high or low severity,
etc.
Start-up and shutdown of the plant
Emergency Shutdown
g) Design Limits
They are going to beindicated for the BDP, the maximum
conditions of design (contaminant in charges,
temperatures, pressures, etc), Limits of hydraulic design,
termic, etc.
PAGE 59 OF 81
DATE: JULY 10, 2009
h) Selection of materials and metallurgy
The materials of the plant for critical parts of the main
equipment (structures, supports, housings and other parts
that are not frequently renewable) shall be designed at
first to for at least 40 years of service, considering
adequate securites and design factors, weather
conditions, winds, seismicity, etc.
The norms and codes shall be identified: NACE, ASME,
TENA, API, ANSI, NEC, etc, those will be used as
minimal requirement that are attached with the BDP
equipment specification sheets. In addition, the Licensor
shall complement the previous codes with general
specifications for design and construction developed by
itself and generally provided in the BDP packages. For
example in the case of piping, it shall be prepared
specifications by proper classes for fluids and conditions
of each process.
i) Special performance requirement
Consider specific requirements to optimize the operation
of the main process equipment, indicating conditions as:
maximum mechanical efficiency catalyst activity, mass
and energy transference efficiency, lineal speeds, mass
speeds, special speeds, residence times, etc.
j) Catalysts and chemical Products
To develop the Basic Design consider the guarantees
performance offered and determined margins that allow
the accomplishment of the maximum or minimum offered
limits without overpass them, specially those related to
the type and volume of the catalyst. If it is completely
necessary it shall be specified the employment of
additives and chemical products to fouling control, coke
deposition on pipes, foaming, corrosion, oxidation,
polymerization, rubber forming, etc.
k) Catalyst life cycle
For fixed beds of hydrodesulphurizators is desirable at
first 4 years. For other processes that economically are
PAGE 60 OF 81
DATE: JULY 10, 2009
convenient have less, it will be accepted or defined
between the Licensor and the EMPLOYER.
l) Industrial Services
The licensor shall establish the miminum conditions
requeried of industrial services provided from outside of
the battery limits for its process. In case the industrial
services designed by the FEED-EPC Contractor, for
standardization reasons differ from the required in the
process unit, the the ways of control adequacy, must be
specified in the BDP Package.
m) Emissions, Effluents, Solid Residual and Noises
The licensor shall consider the accomplishment of the
maximum limits established in the World Bank guides
2007 for oil refineries.
n) List of qualified suppliers
Provide these lists only in those cases where the Licensor
consider essential to guarantee the performance of its
process for critical equipment.
o) HAZOP risk studies
HAZOP risk studies shall be executed by the FEED-EPC
Contractor. The Licensor shall elaborate a preliminar
P&ID which will be perfected by the FEED-EPC
CONTRACTOR. A Licensor specialist will participate at
the Pre HAZOP and HAZOP discussions.
p) Control Instrumentation
The Licensor shall take into account in the BDP
preparation that the EMPLOYER wishes that the FEED-
EPC considers the detailed design, implementation and
post start-up service of the instrumentation and
automation to an integrator that shall be a MAC Sub-
Contractor of the FEED-EPC Contractor, that
standardizes the systems and provide maintenance and
upgrade to themselves.
q) Drawings
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The Licensor shall take into account in the BDP
preparation that the EMPLOYER wishes that in the
FEED-EPC stage osiders the detailed design drawings
and As-Built under a unique platform integrated by data
and graphics, PDMS type (Project Design Management
System) or equivalent, it is desirable that the P&ID of the
Licensor are developed under the same concept.
3.3.2. SPECIFICATIONS FOR THE LICENSED BASIC DESIGN
The specifications for the basic design shall be prepared in a
book package, conteining the bases and design criteria, the
volumetric balances of matter and enthalpy, the sheets of
equipment specifications, instruments, diagrams, general
specifications and others, in such a way the FEED-EPC
Contractor may complete with no inconvenient the
development of the FEED and subsequently the EPC.
Each package must contain the following:
a. Process description:
Provide a brief description of the productive process,
making reference to the PDF's (Process Flow Diagrams)
and indicating a summary of mass balance of feed and
products.
b. Charges, principal products and by-products:
Indicate the yields and qualities of the principal products
and byproducts of the process, indicating its final
disposition.
c. Mass and Energy Balance:
Submit in tabular form or as print out of the simulation
design software, the mass and energy balances,
identifying mass and volumetric flow patterns and
thermodynamic properties of the principal streams for
each design case of process or type of operation.
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d. Equipment List:
Provide a list of the equipment and process systems;
indicating a tag item for each of them, including principal
dimensions and design conditions.
e. Piping and Instruments List:
Provide a list of pipes indicating its tag for each item,
diameter, design class and other characteristics.
Instrument list (valves, controllers, indicators, analyzers,
etc.) indicating a tag for each item and the main
characteristics..
f. Drawings and Diagrams:
Provide a set of drawings and diagrams for the process
installations and equipment that correspond to the design
of the Unit, according to the following list:
f.1. Process Flow Diagrams (PFD's):
Indicating the general scheme of flows, process
equipment symbols and location of process controls
f.2. Process Flow Flagged Diagrams:
PFD Diagrams foreach case of design and operation
showing the data of the variable of main process as:
flow rates, temperatures, pressure and transferred
caloric charges.
f.3. Piping and Instrumentation Diagrams (P&ID):
Showing all main process equipment, process
piping, instruments, valves and basic control
schemes with points of control and monitoring
together with lines and facilities for start up, shut
down and other main operations.
The symbols of the instruments and tag numbers
(tag for each item) shown will be codified to indicate
the type of control, the type of primary element and
the locations of the instruments.
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In addition, they will show:
Identification of piping and identification of
process lines and utility service lines within
Battery Limit.
Specification of the process piping and
accessories, according to the class.
Shutdown instrumentation for emergency (for
example, initiators, alarms, final elements with
logic inputs and outputs).
Locations of the blockage valves of emergency.
Vent and Drainage.
Requirements of thermal isolation
Position of failure of the valves of sampling of the
analyzers and the handling systems of sampling.
Special requirements of piping and details
(Blending point liquid/ steam)
Preliminary dimensioning of the main lines based
in pression falls and typical speeds and paths
assumed by the pipes.
MAC Sub-CONTRACTOR shall integrate all the
P&IDs looking for defining the appropriate
information technology and establishing the
engineering and construction specifications.
The existing units count with their respective pipeline
and instrumentation diagrams (P&ID). The
CONTRACTOR shall prepare the P&ID of the
modernized units, as part of its functions in the
FEED activities.
26
Also, the existing units count with the specifications
sheets of the control instruments. The
CONTRACTOR shall prepare the specifications
sheets of the new instruments as part of its functions

26
Question 176.a Round 2.
PAGE 64 OF 81
DATE: JULY 10, 2009
in the FEED activities
27
. They also count with the
control narrative and logical diagrams. The
CONTRACTOR shall prepare the new control
narrative and logical diagrams, as part of its
functions in the FEED activities
28
.
It is confirmed that documents related to
instrumentation and control logic is available printed
in paper, and that the Companys Instrumentation
Engineers and Maintenance People shall be
available since the beginning of the works to assist
the CONTRACTOR's specialist personnel in
surveying the existing units and collecting the
information about the current status of the
instrumentation.
29
f.4. Plot Plan Diagram:
Preliminary Plot Plan equipment based in
engineering standard practices, considering the
operating factors, maintenance, handling of
catalysts, safety and flexibility. PETROPERU S.A.
wants the spacing between equipment to abide with
the spacing guides of the former IRI (Industrial Risk
Insurances).
f.5. Drawings with details of main equipment:
Provide sketches of reactors, vessels and main
equipment of the Unit, that conform the standard
supply of the Licensor.
f.6. Define, tables of motor power and other electronic
equipment of the process area providing a list of
electric information of all type: permanent, temporary
and emergency, necessary for the development of
the detail engineering and preliminary classification
of electric areas within the process battery limit.
f.7. The drawings and diagrams will be elabvorated and
delivered of preference using an integrated sysmte
of data base and graphic platform, similar to the
Plant Design Management System.

27
Question176.b Round 2
28
Question 176.c Round 2
29
Question 176.d and e Round 2
PAGE 65 OF 81
DATE: JULY 10, 2009
3.3.3. MAIN EQUIPMENT SHEETS:
Licensors will provide as a minimum the following:
EQUIPMENT DESCRIPTION
Includes:
Code and dimensions defined by the basic design.
Determination of heat duties transferred and overall heat transfer
coefficient (thermal rating clean and fouled) and process specifications,
which includes, among other aspects, inlet/outlet temperatures, phase
change enthalpies, materials and conditions for the mechanical design.
Basic heat integration with other heat exchangers within the battery limit.
Others that supplement choices allowed by codes.
Heat
exchangers, air
coolers
Does not include: The mechanical design of the equipment, mechanical
specification and vibration analysis sheets, and rigorous heat integration with
equipment of other process units.
Includes:
Process specification and basic hydraulic design, including, among other
aspects, project performance requirements, fluid conditions and
properties, estimate of the NPSHD, materials and conditions for
mechanical design.
Definition of performance flexibility, turndown, , maximum head, power
required, selection of equipment type and driver element.
Preliminary selection of the type of mechanical seals, and seal plan
according to the corresponding API standard.
Pumps and
compressors
Does not include: Mechanical specification sheets.
Includes:
Process specification and basic hydraulic design, including, among other
aspects, project performance requirements, fluid conditions and
properties, materials and conditions for mechanical design.
Definition of performance flexibility, maximum RPM, power required (HP),
selection of equipment type and driver element.
Preliminary selection of control type (electronic governors, vibration
meters, anti-surge system, etc.).
Turbines
Does not include:
Mechanical specification sheets.
PAGE 66 OF 81
DATE: JULY 10, 2009
Includes:
Process specifications and diagrams of general layouts, including height
and inside diameters, nozzles, vents, accesses, location of thermocouples,
liquid level, thermal isolation requirements, materials, linings, corrosion
margins and mechanical design conditions.
List of nozzles and description of internal parts sold separately, such as
entry distributors, exit collectors, anti-vortex devices, mist or foam
eliminators, with the critical dimensions of specified processes.
Vessels,
Accumulators
Does not include:
Mechanical specifications as welding details or plate distribution another
detailed blueprints.
In addition to the above specification for vessels, includes:
Number, type and spacing of the trays and/or packing filling, distributors
and collectors with the hydraulic load information for the final verification by
the internal parts supplier.
Columns
Does not include:
Mechanical specifications or detailed blueprints.
In addition to the specifications for vessels, it includes:
Process specifications and diagrams of general layouts, including height
and inside diameters, nozzles, vents, accesses, location of thermocouples,
height of catalyst bed, layout for catalyst and inert loads, thermal isolation
requirements, materials and mechanical design conditions.
Process details for internal parts, such as entry distributors, distributor
trays, cooling devices, exit collectors, etc.
Mechanical specifications, detailed detail drawings for issuing of quote
requisition, including the specification of processes, pressure and
temperature of design, metallurgy and main geometrical dimensions.
Reactors
Does not include:
Mechanical blueprints for the cutting and welding of sheets and similar
items that are normally provided by the manufacturer.
PAGE 67 OF 81
DATE: JULY 10, 2009
Includes:
Definition of type of furnace.
API 560 form for furnaces, containing the specification of the heat duty and
process data sheet, including performance requirements, conditions and
properties of the currents, heat absorbed, allowable pressure drop,
materials of the tubes and supports, mass velocities, film temperatures or
heat flow limits.
Process details for the furnace elements, such as tube coils, distribution of
burners, stacks or chimneys, convective, radiant and crossover area, etc.
Process
furnaces
Does not include:
Mechanical specifications, detailed blueprints for issuing of quote
requirements, including the specification of processes.
Includes:
Summary list of instruments, control loops, interlock and permission
systems, process monitoring instruments identified by number of
processes and services.
Identification of critical alarms related to the process.
Properties of the currents for flow instruments and control valves.
Process specification of on-line analyzers.
Summary description of emergency shutdown systems, safe operation
systems, listing start-up and response conditions.
Instrumentation
and process
control
Does not include:
Manufacturer specification sheets for instruments and control valves.
Mechanical/electrical/logic design of process control and emergency
shutdown systems.
Safety facilities
Includes:
Identification of pressure relief devices controlled by instrumentation,
defining the loads to be relieved, conditions and properties of the currents,
and location of the devices.
PAGE 68 OF 81
DATE: JULY 10, 2009
Does not include:
The selection of relief device catalogs.
Calculation of small relief valves, that correspond normally to the FEED or
detailed design.
Dimensions of the torch systems, including the blow-down headers,
entries and blow-down vessels.
Includes:
Process specification and mass loads, performance requirements (filters,
ejectors, separators, etc.).
Miscellaneous
equipment
Does not include:
Mechanical specifications or detailed blueprints
Includes:
Define the main characteristics of the piping according to type in the flow
diagrams, indicating type and rating of the flanges, construction materials,
thickening due to corrosion and necessity for thermal isolation
(conservation of energy, personal protection or heating tracing veins or
tapes due to process needs).
Piping
Does not include:
Development of detailed mechanical specifications.
Note: The licensors will provide a list with a minimum of 03 recommended qualified suppliers for
each type of critical equipment and shall be provided with the licensed basic design packages.
For the other equipments and systems, the FEED-EPC Contractor shall present a proposal for
the approval of the EMPLOYER.
30
3.3.4. REVISION AND CONFORMITY OF DRAWINGS AND
DOCUMENTS FOR CONSTRUCTION
Review and give conformity to the technical documentation and the
detail drawings of the equipment and main vessels issued by the
Licensors, FEED-EPC Contractor or equipment manufacturer of
processes, before initiating the construction, to verify the
accomplishment of the process specifications and the philosophy of
design.

30
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The Licensor shall submit this service since their offices receiving
by electronic mail or another way, the documentation to be
reviewed.
The list of documents to be reviewed shall be proportionated
previously by the Lincesors to PETROPERU.
3.3.5. INSPECTION OF THE EQUIPMENT MANUFACTURING
Participating in the inspection in workshops about the main
characteristics of the process of the principal equipment, during the
construction and before the delivery of port of shipment.
The equipment list that require said inspection will be defined
previously by the Licensor to the EMPLOYER.
3.3.6. TRAINING
Development of technical courses about the process, operation,
security and control of quality of the product addressed to technical
and operative personal of the EMPLOYER. These courses will be
given in Talara city for approximately 25 people and a minimum
duration of 40 hours before the start-up plant.
The chance of these courses shall be coordinated by the Licensor
with the EMPLOYER in a date the closest possible to the unit start-
up.
Likewise, the licensor is engaged to insert its professionalism and
maximum effort, to facilitate the operative training to facilitate the
operative training of the EMPLOYERs Personal in other countries,
where the application of the processes of the present licensing.
3.3.7. DELIVERABLES
Basic Design Packages (BDP or PB) of the process, which will be
delivered:
For the EMPLOYER 5 sets of pressed copies and 5 sets of
electronic copies in DVD or equivalent. The previous copies are
additional to those that are distributed for revision or conformity
during the design development.
For FEED-EPC Contractor the EMPLOYER 2 set of pressed
copies and 2 sets of electronic copies in DVD or equivalent.
The EMPLOYER will communicate to the Licensor the chance
of this deliver.
PAGE 70 OF 81
DATE: JULY 10, 2009
3.3.8. COORDINATION
With the purpose of integrate and harmonize the development of
the Licensed Basic Design and Open Art, the Licensor and the
FEED-EPC Contractor will coordinate adequately the execution of
the activities that allow that the set of project works as well.
3.4.1. Location
The Talara Refinery is located on the northwest coast of Peru in
the city of Talara, in the province of Talara, Department of Piura,
approximately 1100 km by highway from the city of Lima. The
Refinery is bordered to the north by the Bay of Talara and the port
area; to the south by the Punta Arenas residential area; to the east
by the urban areas of the city of Talara; and to the west by the
Pacific Ocean and public beaches.
3.4.2. Plot Plan of Existing Facilities
A Preliminary (FED-2 Stage) Plot Plan for the Talara Refining
Modernization Project is included as Exhibit No. 5-1 in this MJS
Part B Basis of Design document for Information Only. The
FEED-EPC Contractor is expected to develop its own Plot Plan
during the FEED-EPC effort, reflecting the optimized and integrated
facilities.
3.4.3. Local Conditions
Talara area is located in the coast of Peru which is considered
zone 3 for seismic design. The classification of zone 3
corresponds to seismic zoning used in Seismic Resistance
Standard E-030 of the National Building Regulations
31
.

31
Question35 Round 1.
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DATE: JULY 10, 2009
A summary of the meteorological conditions for the city of
Talara by periods is given below
Period Period Period Period Period
Condition
1973-1982 1983 * 1984-1997 1998 * 1999-2007
Average temperature ( C) 22.1 24.9 22.4 23.4 24.3
High Average temperature ( C) 27.1 29.8 28.3 29.3 28 .1
Low Average temperature ( C) 18.9 21.8 19.2 20.1 20. 8
Atmospheric pressure at sea
level (mb) 1011.9 1010.8 1011.9 1011.6 1012.5
Average relative humidity (%) 77.1 78.5 74 79.3 66.4
Total rainfall (mm) 3.7 124.5 8.9 96.9 0.7
Average visibility (km) 12.4 12.1 12.8 12.9 14.7
(*) El Nio-Southern Oscillation Phenomenon
Reference: Tu Tiempo web page, www.tutiempo.net
PAGE 72 OF 81
DATE: JULY 10, 2009
3.4.4. Expanded/Modernized Utility Specifications
a) Steam
Low Pressure
Operating pressure 150 psig (10.35
Bar) 10.55
kg/cm2
Vapor Type Saturated
Design pressure 200 psig
Design temperature 500 F
Intermediate Pressure
Bar) 31.64
kg/cm2
High Pressure
Bar) 42.2 kg/cm2
Operating temperature Saturated
Very High Pressure
Operating pressure 1200 psig (83
Bar) 84.4 kg/cm2

b) Electric Power
4001 HP and above 13.2 kV, 3PH
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DATE: JULY 10, 2009
201 HP to 4000 HP 4.16 kV, 3PH
0.5 HP to 200 HP 480 V, 3PH
More than 0.5 HP 120 V, 1PH
c) Nitrogen
Normal pressure 125 psig
Maximum pressure 150 psig
Minimum pressure 85 psig
d) Plant Air / Air for Instruments
Normal pressure 115 psig
Maximum pressure 150 psig
Minimum pressure 85 psig
Temperature (maximum) 115 F
Dew point (instrument air) -20 F
e) Water
1) Boiler Feed Water
Temperature 268 F
Pressure As required for the boiler
to overcome the relief
valve settings
General appearance Clear and colourless
pH at 25 C > 9.0
Silica as SiO2 <0.02 mg/kg
Oxygen as O2 <0.02 mg/kg
Total copper as Cu <0.01 mg/kg
Potassium permanganate
consumption
<10 mg/kg
Oil <1.0 mg/kg
PAGE 74 OF 81
DATE: JULY 10, 2009
Boiler feedwater is treated in a reverse osmosis plant that
is owned and operated by PRIDESA. Untreated water is
delivered from the seawater cooling system, and filtered
RO water is provided as boiler feedwater.
Since the operating reliability of the public water system is
quite low, it is supposed the sea water RO system is the
best alternative as the process water source.
The FEED-EPC Contractor shall define the processes
water requirements for the modernized Refinery.
The Contractor shall evaluate the available alternatives and
recommend the best. If the proposal is to extend the
capacity of the PRIDESA Plant, such activity shall be out of
the Contractors Services. If the alternative is not to extend
the capacity of the PRIDESA Plant, in such case such
activity shall be within the FEED-EPC Contractors
Scope
32
.
2) Raw Water (Ocean Water)
Sea water will be the main source to obtain process,
cooling and fire water for the refinery necessities. FEED-
EPC CONTRACTOR shall design the new system
considering a very high reliability factor to minimize the
failures and upsets.
The intake system shall be designed considering the
minimum content of sand and temperature. A chlorine or
equivalent system shall be provided to minimize the fouling
and corrosion conditions.
3) Cooling Water
The cooling water shall be supplied from the Pacific Ocean,
which at a maximum temperature to approximately 62 F. A
flow rate of 65,000 gpm is required (to be confirmed during
the FEED).
4) Fire Water
Sea water shall be used for the firefighting system. Jockey
pumps shall be installed to maintain the pressured
condition anytime. Diesel engine pumps are required to get
the water flow during electricity failures.

32
PAGE 75 OF 81
DATE: JULY 10, 2009
5) Potable Water
EMPLOYER will buy a small quantity of potable water from
the Talara public system to be used for domestic purposes.
The Project Environmental Assessment provides
information in relation to the Peruvian regulations and the
approved plan to mitigate the project impacts caused by
these streams.
f) Natural Gas (Typical Quality)
The typical quality of the natural gas, purchased from the local
producers, follows:
COMPOSITION % VOL
Methane 92.44
Ethane 4.45
Propane 1.80
l-Butane 0.23
n-Butane 0.27
l-Pentane 0.03
n-Pentane 0.01
n- Hexane 0.00
Oxygen 0.13
Nitrogen 0.36
Carbon Dioxide 0.28
Total 100.00
Specific Gravity 0.6058
CALORIC CAPACITY
SCF/Net Foot
3
970.9
SCF/GrossFoot
3
1075.6
g) Hydrogen
High purity hydrogen from the hydrogen plant shall meet
the following specification:
PAGE 76 OF 81
DATE: JULY 10, 2009
Component Units Specification
H
2
Mol % >99.9
Nitrogen Ppmv <100
CO+ CO
2
Ppmv <10

Pressure Psig 360
Temperature F As available
Normal flow 800,000 scfh
Design flow 900,000 scfh
h) Stack Emissions
Regulations for this matter are provided in the Project
Environmental Assessment.
i) Noise Abatement
Following the Project Environmental Assessment, the noise
equipment like burners, compressors, control valves and motor
engines shall be designed using special devices for noise
abatement. As a preliminary value 80 decibels is the maximum
noise level allowed, into the process areas.
This value is not mandatory and shall be defined according to
the existing regulations and to the Environmental Impact
Assessment of the Project
33
.

33
PAGE 77 OF 81
DATE: JULY 10, 2009
4. STANDARDS
The FEED-EPC Contractor shall develop the Basic Design taking into
account the codes and regulations for design manufacture and
construction as indicated in Part C - Project Instructions 9 from Master Job
Specifications.
The relevant GES will be identified by EMPLOYER during FEED-EPC
CONTRACTOR bid preparation or early in the FEED preparation work
period. Those GES shall be provided by FEED-EPC CONTRACTOR, to
be used during the Project activities, a whole set (printed and electronic
files) of these GES shall be given to the EMPLOYER Project Manager.
4.2 Regulations
The FEED-EPC CONTRACTOR shall develop the Basic Design taking
into account the following regulations for design, manufacturing and
construction of the Talara Refinery Modernization Project facilities:
PERUVIAN REGULATIONS
The Hydrocarbons Act, Law 26221, and its Regulations. D.S. 051-93-EM,
052-93-EM, 015-2007-EM.
For designing the building structures, the Bidder shall present its proposal
about regulations, engineering and building standards, for the
EMPLOYERs approval, but the compliance with the national structural
standards in force of the National Building Regulations must necessarily
be taken into consideration
34
.
Standard E-050; Soils and Foundations.
Standard E-030; Seismic-resistant Design.
Standard E-060; Reinforced Concrete, these shall be complemented with
the regulations for structural concrete, regulations and standards of the
ACI; the most demanding requirements shall be taken into consideration.
Standard E-070; Brickwork.
Standard E-090; Metallic Structures, must be complemented with the
AISC-LRFD structural steel standards for high-seismic areas.

34
PAGE 78 OF 81
DATE: JULY 10, 2009
The Contractor will utilize industry accepted design practices that insure
that the required levels of quality, deliverables, definition and technical
integrity are achieved for the documentation developed and services
provided for the Basic Design Package and Detailed Engineering.
To achieve technical quality integrity, the Contractor is required to use
their own internal design review procedures, such as intra-department and
inter-department checks, squad checks, Peer Reviews, design audits,
etc. These design quality control procedures should be submitted to
Employer for review and approval prior to the start of design work.
Requirements for technical document review/approval should be listed in
a Design Document Review/Approval Distribution Matrix to be prepared
by the Contractor and approved by the Employer, or Employers
representative (PMC), acting on behalf of Employer.
Formal design review meetings will be conducted during the course of the
project with multi-discipline and multi-organization personnel attending. A
list of formal review meetings and their participants will be prepared jointly
by the FEED-EPC Contractor and Employer (or Employers
Representative - PMC) prior to start of design work.
The review/approval of technical documentation by Employer (or
Employers Representative) does not relieve the FEED-EPC Contractor of
its responsibility for the accuracy and integrity of the design.
It is expected that the FEED-EPC Contractor shall integrate engineering
and design Best Practices such as Value Improving Practices (VIPs)
into its Open Art BDP, services, activities and deliverables of the Basic
Design Packages and Detailed Engineering
Value Practices to improve (VIPs) are defined as specific applications of
the science of Value Engineering that are used to improve the capital cost,
execution schedule and/or operability/reliability of a capital construction
project. The FEED-EPC Contractor is expected to provide Employer (or
Employers Representatives) with its recommendations for application of
such VIPs as may be applicable to the TRM Project, based on industry
recognized and accepted Best Practices. Employer shall give
consideration to of such recommendations for the application of
recognized and accepted VIPs such as:
Class of Facility Quality
Customized Standards and Specifications
Design to Capacity
PAGE 79 OF 81
DATE: JULY 10, 2009
Process Simplification
Waste Minimization
Energy Optimization
Process Reliability Modeling
Predictive Maintenance
Constructability Reviews
Value Engineering
Design Tools
FEED-EPC Contractor shall submit in its P-PEP as stated in Part A
Project Perspective, Section 9, its proposal for application of such Best
Practices and VIPs, which (in the Contractors opinion) will, if adopted:
(a) accelerate completion
(b) reduce the cost to Employer of executing, maintaining or operating the
Facilities
(c) improve the efficiency or value to Employer of the completed Facilities,
or
(d) otherwise be of benefit to Employer (without increasing the costs
referred to in paragraph (b) or reducing the efficiency or value to
Employer of the completed Facilities.
A Work Breakdown Structure (WBS) for the Talara Modernization Project
is included in this MJS Part B Bases of Design as Appendix N 5-2. as a
work breakdown structure for the TRM Project.
Regarding the numbering system per units, equipment, instruments and
simbology for P& IDs and online diagrams, the FEED-EPC
CONTRACTOR shall submit at the beginning of the works its proposal for
a new numbering system, that shall be used for the integral scope of the
Project Engineering, including the licensed basic design packages
35
. Said
proposal shall be approved by the EMPLOYER, having into account the
norms and procedures in force of the Refinery.

35
Questions 244 and 245 Round 1.
PAGE 80 OF 81
DATE: JULY 10, 2009
The drawings and the diagrams for the works of engineering and
construction shall be elaborated and delivered using an integrated system
of database and graphic platform using PDMS
TM
(Plant Design
Management System) or similar.
The process diagrams (P&ID, PFD, Plot Plan, on-line diagram, etc) shall
be elaborated using the intelligence technology 2D and following the ISO
15926 standards.
The Contractor shall submit its proposal to be approved by the
EMPLOYER which shall accomplish with the ISO 15926 standard
requirements.
The product or suite the contractor shall use for the development of the
technoly of intelligence in 2 dimensions, shall generate in an automatic
way, output file(s) that follow with the ISO 15926 standard.
The generation of the drawings in 2 dimensions shall be used as graphic
platform Autocad or Similar, the drawings may be elaborated working
locally or of remote way. The drawings shall be subject to a consistent
verification of the graphic elements.
The application used shall be able to question and visualize through the
graphic generated in Aauto Cad, specific and particular information of
each one of the represented elements in the diagram of 2 dimensions.
This information shall be stored in a Database which does not permit that
the elements with the same identification or tag number, all and each one
of the registers will be stored showing the actual status and representing
the whole life cycle of the installation.
The information content in the Data Base, shall be able to be taken out
from in form of data sheets, lists and report, using a proper interface and
exported to some software of public domain.
The versions of the electronic tool shall be the most recent, this version
shhal be used nowadays in similar industries (Oil and Gas) through the
American continent. The developer and owner of the technology, shall
recommend the more functional and optimal version for the project.
PAGE 81 OF 81
DATE: JULY 10, 2009
The FEED-EPC Contractor shall propose the proper system which shall
be approved by the EMPLOYER.
36
Also, the FEED-EPC Contractor shall provide to the EMPLOYER, at the
beginning of the FEED works, the software packages and at least three
licenses so that this allow to the EMPLOYER review the drawings and the
diagrams developed by the CONTRACTOR. It is required, also, to have a
computer work station type.
Also, the FEED-EPC CONTRACTOR will elaborate new drawings of the
existing installations using the technology of 3D scanning surveying. This
activity refers to the development of 3D models from the data of the dotted
diagram obtained from the laser scanning surveying.
The scope of the Contractor works includes the development of the 3D
models and the extraction of the isometric drawings of the Refinery of the
new as well as of the existing installations.
5. APPENDICES
Information Only FEED-EPC Contractor to develop its own Plot Plan for
the Project)
5.2 Preliminary Work Breakdown Structure
herein for Background Information Only FEED-EPC Contractor is
advised that any information used from this document is unofficial and to
be independently evaluated and confirmed by FEED Contractor before
accepting it for use. Direct use of this information will be at Contractors
sole risk.
5.4 A.D. Little/ENGlobal Engineering, Inc. Implementation Plan (Document
10-371257-007) FEED-EPC Contractor is advised that any information
used from this document is unofficial and to be independently evaluated
and confirmed by FEED Contractor before accepting it for use. Direct use
of this information will be at Contractors sole risk.
5.5 A.D. Little/ENGlobal Engineering, Inc./Petroperu Environmental Viability
Study (Document 10-371257-033, Rev. 4, April 2008) FEED-EPC
Contractor is advised that any information used from this document is
unofficial and to be independently evaluated and confirmed by FEED
Contractor before accepting it for use. Direct use of this information will
be at Contractors sole risk.

36
f detail to Employer's Code of Account level
Arthur D. Little Conceptual Engineering Report Project No. 10-371257
ENGlobal Engineering, Inc. Document 10-371257-004 Rev. 3
2-1
Table of Contents
2.1 Introduction and Summary ..........................................................................................2-4
2.1.1 Conclusions ...............................................................................................................2-5
2.2 Section 1 Selected Case:.......................................................................................2-6
2.2.1 Selected Case Overview ...........................................................................................2-6
2.2.2 The Selected Case Will Consist of the Following Units .............................................2-7
2.3 Units in the Selected Case .......................................................................................2-8
2.3.1 Atmospheric Tower....................................................................................................2-8
2.3.2 Vacuum Tower.........................................................................................................2-11
2.3.3 Flexicoker ................................................................................................................2-11
2.3.4 Fluid Catalytic Cracker.............................................................................................2-14
2.3.5 Diesel Fuel Desulfurizer...........................................................................................2-16
2.3.6 FCC Gasoline Desulfurizer ......................................................................................2-18
2.3.7 Naphtha Desulfurizer ...............................................................................................2-20
2.3.8 Reformer..................................................................................................................2-22
2.3.9 Hexane-Heptane Splitter .........................................................................................2-24
2.3.10 New Gas Plant .......................................................................................................2-24
2.3.11 Amine Absorber Stripper ....................................................................................2-24
2.3.12 Sulfuric Acid Plant..................................................................................................2-26
2.3.13 Hydrogen Plant ......................................................................................................2-28
Overall Refinery................................................................................................................2-28
2.3.14 Blending.................................................................................................................2-44
2.3.14.1 Gasoline......................................................................................................2-44
2.3.14.2 Diesel ..........................................................................................................2-45
2.3.14.3 The calculations showing the blending of Gasoline and Diesel Fuel are given
in Table 2.1.and 2.2. .....................................................................................................2-45
2.4 Units Rejected for the Selected Case....................................................................2-48
2.4.1 Delayed Coker .........................................................................................................2-48
2.4.2 Residual Oil Hydrocracker .......................................................................................2-48
2.4.3 Solvent Deasphalter (ROSE Unit): ..........................................................................2-48
2.4.4 Medium Pressure Hydrocracker ..............................................................................2-49
2.4.5 Alkylation .................................................................................................................2-49
2.4.6 Benzout Unit ............................................................................................................2-50
2.4.7 Circulating Fluidized Bed Boiler...............................................................................2-50
2.4.8 Fluidized Bed Boiler.................................................................................................2-50
2.4.9 Claus Unit for Sulfur Production ..............................................................................2-50
2.4.10 Isobutane Column..................................................................................................2-51
2.5 Residue Reduction..................................................................................................2-51
2.5.1 Technologies Available............................................................................................2-51
2.5.2 Coking......................................................................................................................2-51
2.5.2.2 Residuum Hydrocraking..............................................................................2-52
2.5.2.3 Solvent Deasphalting ..................................................................................2-52
2.6 Environmental Considerations ..............................................................................2-52
2.7 Plot Plan and PFDs .................................................................................................2-53
2.7.1 Process Units...........................................................................................................2-53
2.7.2 Utilities .....................................................................................................................2-53
2.7.3 General Facilities.....................................................................................................2-54
2.7.4 A Block Flow Diagram of the refinery has been presented as Figure 2.11. ..........2-54
2-2
2.7.5 The Flow Diagrams for the individual units have been given as Figures 2.1 2.9. 2-54
2.7.6 Material Balances ....................................................................................................2-55
2.7.6.1 The overall refinery material balance..........................................................2-55
2.7.7 Table 2- 4 Unit to Unit Material Balance.................................................................2-60
2.7.8 The gas balance within the refinery, showing sources and disposition of various gas
streams is also shown in Table 2.4. ................................................................................2-68
2.7.9 The hydrogen balance is given in Table 2.6.. ..........................................................2-68
2.7.10 The sulfur balance is given in Table 2.7. ...............................................................2-69
2.8 Catalyst and Chemical Consumption....................................................................2-69
2.9 Operating Cost ........................................................................................................2-70
2.10 Capital Estimate ......................................................................................................2-72
2-3
Table of Figures
Figure 2- 1 Crude Unit .............................................................................................................2-10
Figure 2- 2 Flexicoker ..............................................................................................................2-13
Figure 2- 3 Fluid Catalytic Cracker ..........................................................................................2-15
Figure 2- 4 Diesel Fuel Desulfurizer ........................................................................................2-17
Figure 2- 5 FCC Gasoline Desulfurizer....................................................................................2-19
Figure 2- 6 Naphtha Desulfurizer.............................................................................................2-21
Figure 2- 7 Reformer................................................................................................................2-23
Figure 2- 8 Amine Unit .............................................................................................................2-25
Figure 2- 9 Sulfuric Acid Plant A...........................................................................................2-27
Figure 2- 10 Overall Refinery Block Flow Diagram..................................................................2-29
Figure 2- 11 Diagram of Results of Refinery Simulation..........................................................2-30
Table 2- 1 Calculations of Blending Gasoline and Diesel Fuel - Selected.............................2-46
Table 2- 2 Calculation of Blending Gasoline and Diesel Fuel - Selected...............................2-47
Table 2- 3 The Overall Refinery Material Balance - Selected................................................2-56
Table 2- 4 Unit to Unit Material Balance - Selected...............................................................2-60
Table 2- 5 Gas Specific Balance - Selected ..........................................................................2-68
Table 2- 6 Hydrogen Balance - Selected...............................................................................2-68
Table 2- 7 Sulfur Balance - Selected .....................................................................................2-69
Table 2- 8 Major Catalyst and Chemical Consumptions - Selected......................................2-70
Table 2- 9 Operating Cost Selected.......................................................................................2-71
Table 2- 10 Capital Estimate - Selected ................................................................................2-73
2-4
PETROPERU
Talara Refinery Expansion Modernization
Selected Case
2.1 Introduction and Summary
The Selected Case chosen by PETROPERU is presented and discussed. This case
includes vacuum distillation of the atmospheric column residuum, and an FCC
desulfurizer to bring the gasoline into sulfur specification. This case produces
specification gasoline, and cetane specification for diesel fuel. This case also produces
heavy fuel oil. This case will adequate provide power to supply the refinery.
The Selected Case contains a Flexicoker, two vacuum towers (one existing), diesel,
naphtha, and FCC gasoline desulfurizers, a reformer, a new gas plant, a
hexane/heptane splitter, a hydrogen plant, and a sulfuric acid plant. It does not export
electricity. It does not produce natural gas. The capital cost for this plant, including
offsites is $1,306,000,000 including the 12% contingency and 20% location factor as
provided by PETROPREU. It produces a product slate that includes 39,800 bpdo of
diesel fuel, 10,800 bpdo of high sulfur fuel oil and 488 short tons of petroleum coke per
day.
There are three basic ways to dispose of the residuum from the crude slate coking,
hydrocracking, and solvent deasphalting. Of these three choices, Flexicoking, as a sub
case of coking, is the best one. This is because it will make the residuum go away by
converting in into liquid fuels and low BTU gas. The low BTU gas can have other uses,
such as refinery fuel gas, generation of electric power, or as a synthesis gas for the
production of other hydrocarbons or alcohols (with the addition of hydrogen).
The wastewater can be brought up to Peruvian and World Bank standards by the
segregation of the various waste water streams. The cooling water can be discharged
directly back into the Pacific Ocean without treatment. The other streams can be deoiled
with centrifugal equipment, and then treated in an aerobic biological treatment unit to
reduce COD and BOD.
2-5
The air emissions are controlled by removing the hydrogen sulfide and converting it into
sulfuric acid to control SOx. The NOx will be controlled by using Flexigas, which will
burn at a much lower temperature than natural gas, plus using low NOx burners where
necessary.
The refinery has almost no solid wastes. Catalysts can be returned to the supplier.
Sludges can be handled in the Flexicoker. The few remaining solid wastes can be land-
filled.
2.1.1 Conclusions
The Talara Expansion and Modernization project is viable both technically and
environmentally.
x The Selected Case does not export electric power and requires minimum capital
expenditure.
2-6
2.2 Section 1 Selected Case:
2.2.1 Selected Case Overview
After a review of Cases II VI, PETROPERU decided that the Selected Case should be based
upon the use of a Flexicoker for residue reduction and a Wet Sulfuric Acid plant for sulfur
disposal.
The constraints that were put upon this case are:
x Capital Expenditure should be minimized
x The consumption of natural gas should be minimized or eliminated.
x LPG needed to be a minimum of 70% C
3
s.
x Gasoline was to be 91 RON minimum, and contain 50 ppm Sulfur, maximum.
x Diesel Fuel was to be 47 Cetane Index, minimum, and 50 ppm Sulfur maximum, with
the ability to reduce sulfur to 10 ppm.
x No power will be exported, but the needs of the plant will be supplied.
x The refinery emissions were to meet Peruvian and World Bank standards.
x Tankage for 30 days of crude oil and 15 days of refined products is available from
existing tankage or projects under construction at Talara.
Several different technologies were evaluated. The competing technologies for the
same function were investigated when possible. Based upon these studies, the
following process units were selected:
2-7
2.2.2 The Selected Case Will Consist of the Following Units
1. Atmospheric Tower
2. Vacuum Tower(s)
3. Flexicoker
4. Gas Plant
5. Fluid Catalytic Cracker
6. FCC Gasoline Desulfurization
7. Diesel Fuel Desulfurization
8. Naphtha Desulfurization
9. Catalytic Reformer
10. Amine Plant for H
2
S removal
11. Sulfuric Acid Plant
12. Hydrogen Plant
The following units were considered and rejected:
1. Delayed Coker
2. Residual Oil Hydrocracker
3. Solvent Deasphalting
4. Medium Pressure Hydrocracker
5. Alkylation
6. Benzout Unit
7. Circulating Fluidized Bed Boiler
8. Fluidized Bed Boiler
9. Claus Unit for Sulfur Production
10. Isobutane Column
The following units are being modified:
The Atmospheric Tower is being retrayed, and is having the bottom section replaced
with a larger diameter bottom. The heat exchangers will need to be augmented with
2-8
additional new ones to provide the increased heat exchange needed for the higher flow
rate.
The existing vacuum tower will need to have its heater either retrofitted or replaced. A
second larger vacuum tower will need to be added to handle the increased volume of
atmospheric tower bottoms generated from the heavier crude slate.
The FCC will be revamped from 19,000 bpdo to 24,000 bpdo on a feed of coker gas oil,
supplemented by HVGO. To handle the increased feed rate, the wet gas compressor
will need to be replaced, the air blower will need to be replaced, and the riser will need to
be modified. The catalyst in the unit will be changed, and the unit will be operated at
lower severity to increase the production of diesel fuel and decrease the production of
gasoline.
2.3 Units in the Selected Case
2.3.1 Atmospheric Tower
The atmospheric tower already exists in Talara. This column can be expanded to
process 90,000 bpdo of the Talara crude blend that is 64% Napo. The column needs to
be debottlenecked by replacing the current 5 foot diameter bottom with a bottom that is
at least 10 feet in diameter. The existing bubble trays in the middle section of the tower
need to be replaced with valve trays.
The Refsys simulation (refinery process simulation by Aspen Tech by rigorous plate to
plate calculation) indicated that the current tower, modified as described above, will
handle between 100,000 & 110,000 bpdo of the considered crude slates. The limiting
factor is the vapor traffic within the column, indicating an even lighter crude slate could
limit the feed to the tower to a lower level.
The existing fired feed heater has been reviewed with Tulsa Heaters, Inc, the company
that made it. It was determined that the current heater will probably handle 100,000
bpdo, but not 110,000 bpdo. If much lighter crude is charged to the tower, the heater
may not handle the higher flow rate, since it takes more heat to boil a liquid than it takes
to heat it up.
2-9
Increased heat exchange surface will need to be added to recover heat from the
products at the new higher feed rate.
The desalter was designed and built by Petreco. They reviewed the capability of the unit
to be operated at a higher feed rate. They determined that 100,000 bpdo of Napo crude
can be desalted by increasing the operating temperature of the unit.
A sketch of the flows in this unit is given as Figure 2.1.
2-10
Figure 2- 1 Crude Unit
2-11
2.3.2 Vacuum Tower
The existing vacuum tower with capacity 21 MBDO is undersized for the proposed
expansion, and also needs extensive renovation to bring it up to current standards. In
addition, the existing vacuum tower will need to be supplemented with a second tower of
about twice the size of the existing one in order to handle the larger amount of atmospheric
tower bottoms generated by the heavier crude slate. This would require a capital
expenditure, estimated at $60 MM.
2.3.3 Flexicoker
The Flexicoker was chosen over the other 3 residue disposal technologies for two reasons:
It can eliminate almost all of the resid while not generating large amounts of either fuel oil or
coke. Both fuel oil and coke will present a disposition problem for the refinery. Because of
the configuration of the Flexicoker, the heat for distilling the VGOs will come from burning
coke, not natural gas or refinery gas.
The Flexicoker converts the bulk of the petroleum coke into Flexigas, a low BTU gas that can
be used to fuel the refinery, minimizing or eliminating the need to purchase natural gas.
The capital required is comparable to that required for the other cases.
In the Flexicoker, the feed is sent to the top of the reactor section, where the lighter liquids
are boiled off. The heavier liquids are coked, with the vapors going overhead, commingled
with the lighter liquids from the feed, and sent into a fractionator, where they are distilled into
the various cuts. The coke flows into a Fluidized Bed (Heater Vessel), where it is partially
burned to supply the heat for the coking operation. The coke then goes into a gasifier, where
it is converted into low BTU gas. A small coke stream remains that consists of carbon and
the inorganic contaminants in the feed. There is a cement plant in Peru that that can take
this stream.
2-12
If desired, it is possible to reduce the production of Flexigas and make more coke. The trade
off rate is that for each 100 MM BTU/hr. of Flexigas not produced, an additional 200 (short)
tons a day of coke is produced. It is expected that this will be over 1000 (short) tons/day of
additional coke. Based on the current balance the low Btu gas can be utilized to generate
high pressure steam that will be used in the process.
A sketch showing the flows in this unit is given in Figure 2.2.
2-13
Figure 2- 2 Flexicoker
2-14
2.3.4 Fluid Catalytic Cracker
The Fluid Catalytic Cracker (FCC) will have an increased feed rate (~24000 bpdo). The feed
to the FCC will be heavy vacuum gas oil and coker heavy gas oil.
The unit will need several modifications to handle the increased feed rate. These
modifications include replacing or increasing the capacity of the wet gas compressor and the
air blower. The riser will also need to be modified to handle the higher feed rate.
It will be necessary to return to the original design operation of the unit in order to control the
C4 content in the LPG product. The C4 bottoms product will be suitable for use as either a
blend component in gasoline for controlling RVP, as a feed to a steam reformer for the
production of hydrogen, or use in the refinery fuel gas system.
Because of this increased flow rate to the FCC gas plant, it will be necessary to add a
second gas plant to handle the off gases from the other units.
2-15
Figure 2- 3 Fluid Catalytic Cracker
2-16
2.3.5 Diesel Fuel Desulfurizer
The diesel fuel desulfurizer will perform two tasks. It will remove the sulfur from the diesel
fuel, and it will raise the cetane by opening rings in the diesel fuel. ExxonMobil has
technology that will perform both tasks well. The Haldor Topsoe technology has not been
evaluated in detail.
The ExxonMobil technology is capable of producing low sulfur (3 ppm) diesel fuel and raising
the cetane index of the product diesel. This technology returns about 84% of the feed as low
sulfur diesel, and 11% of the feed as kerosene.
2-17
Figure 2- 4 Diesel Fuel Desulfurizer
2-18
2.3.6 FCC Gasoline Desulfurizer
It will be necessary to desulfurize the FCC gasoline to meet sulfur specifications.
Conventional desulfurization technologies will also convert the olefins in the FCC gasoline
into paraffins. This saturation of the olefins will reduce the octane of the FCC gasoline
significantly. In order to avoid this, it is necessary to use different technology and different
catalysts. One commercial method available is reactive distillation, a technology developed
by CD Tech. In this technology, the trays or packing in a distillation column are replaced with
catalyst beds.
The hydrogen feed goes into the bottom of the column, while the FCC gasoline is fed into the
top of the column. They mix over the catalyst bed, and the sulfur is removed. Also, the
diolefins are converted into mono-olefins to reduce gum problems. This is a low capital cost
method for desulfurizing FCC gasoline.
This is a proven technology, with over 1,000,000 bpdo of installed capacity.
ExxonMobil and Chevron have technically equivalent technologies that use more
conventional (and more expensive) configurations.
2-19
Figure 2- 5 FCC Gasoline Desulfurizer
2-20
2.3.7 Naphtha Desulfurizer
The naphtha desulfurization unit removes the sulfur from the reformer feed. Feed naphtha to
desulfurizer is a blend of LSRG and coker naphtha. Reforming catalyst is based upon noble
metals (primarily platinum), and is very expensive. Sulfur poisons these catalysts.
ExxonMobil technology is being used for this unit, since they do have technology in this area,
and because they are working on several other units for the project. UOP, Haldor Topsoe,
and Chevron Lummus have equivalent technologies that can be considered.
A sketch showing the flows in this unit are given in Figure 2.6.
2-21
Figure 2- 6 Naphtha Desulfurizer
2-22
2.3.8 Reformer
Reformers dramatically increase the octane of naphtha by dehydrogenating the naphthenes
in the naphtha to aromatics, by dehydrocyclizing some of the paraffins in the naphtha to
aromatics, and isomerizing normal paraffins to isoparaffins. The resulting product is high
octane blend stock. This blend stock will have zero sulfur. It will be high in aromatics, which
could be a problem, since the aromatic specification for gasoline is 35%. If the naphtha is
not prefractionated to remove benzene precursors, it will also be high in benzene. There is a
1% max specification in gasoline. The reformer will return about 85% of the naphtha feed as
reformate. The reformer also generates hydrogen at a rate of about 1200 scfb, depending
upon the severity of operation. Higher severity produces higher octane and more hydrogen
at the expense of product yield and length of time between regenerations.
ExxonMobil also has technology in this area. This technology utilizes semi-continuous
regeneration. In a semi-continuous reformer, the reformer is taken out of operation on a
periodic basis (usually six months to one year) for the catalyst to be regenerated by burning
the coke off the catalyst. A fresh charge of catalyst can be expected to last about 10
regenerations. This differs from a continuous catalyst regeneration reformer, where catalyst
is continually removed from a reactor, regenerated, and recycled into either the same, or a
different reactor. The Talara refinery will not have enough naphtha to justify the increased
capital for installing a continuous catalyst regeneration type of reformer.
UOP also has reforming technology that is widely respected within the industry. The
ExxonMobil was selected for this case because we are working with them on several
different technologies. Reforming technology is almost open art technology.
A sketch showing the flows in this unit are given in Figure 2.7.
2-23
Figure 2- 7 Reformer
2-24
2.3.9 Hexane-Heptane Splitter
This unit will be used on the desulfurized naphtha stream to keep the benzene precursors
out of the reformer. This approach increases the production of gasoline by about 200 bpdo,
and decreases the size of the reformer from 12,000 bpdo to 9,000 bpdo, with the
corresponding reduction in capital.
This approach also avoids the need for a benzene reducing unit, such, as a Benzout, to
remove benzene from the gasoline pool. The net effect is to reduce the capital requirements,
including reduction in capital for a much smaller reformer, by about $27,000,000.
2.3.10 New Gas Plant
Because the expansion of the FCC exceeded the capacity of the existing gas plant, it was
necessary to add a new gas plant to accommodate the off gases from the desulfurization and
reforming units. This unit will recover the C
3
s and C
4
s and any heavier materials for
inclusion into either the LPG or gasoline streams. A gas plant to handle the Flexicoker off
gases is included in the Flexicoker design.
2.3.11 Amine Absorber Stripper
This plant will remove the Hydrogen Sulfide (H
2
S) from the combined gas streams and then
recover it as a pure H
2
S stream for feed to the sulfuric acid plant. This is open art
technology. The Crosstex unit was also selected for consideration because it is a skid
mounted low cost unit. Other suppliers could also provide similar equipment. ExxonMobil
has included a hydrogen sulfide absorber in their unit.
The gases from the sour water strippers cannot be sent to this unit, because of the ammonia
contained in the gases. The ammonia will dissolve in the dilution water for the amine,
causing problems within the absorber. These gases will be taken directly to the sulfuric acid
plant that can handle them.
Sketch showing the flows in this unit are given in Figures 2.8.
2-25
Figure 2- 8 Amine Unit
2-26
2.3.12 Sulfuric Acid Plant
The Haldor Topsoe Wet Sulfuric Acid (WSA) technology was selected for use in the study.
This technology is capable of converting hydrogen sulfide directly into sulfuric acid, without
going through the sulfur intermediate. This technology can handle the ammonia in the gases
from the sour water strippers, converting it into nitrogen. The sour water stripper gases will
be fed directly to this unit, bypassing the amine unit.
This technology has two advantages for the project it reduces the capital requirement
significantly, as compared to a Claus unit, and it provides a product, sulfuric acid that has a
market in the Peruvien market area, and avoids a product, sulfur, that is already oversupplied
in South America.
There is no known comparable technology available. There are several plants in operation
around the world, so the technology is proven.
A sketch showing the flow in this unit is given in Figure 2.9.
2-27
Figure 2- 9 Sulfuric Acid Plant A
2-28
The hydrogen plant is part of the utilities and is covered in Section 3.2.7 of the utilities
section.
The Licenses of processes and the Basic Design Packages of the licensed processes shall be
provided by the EMPLOYER during the FEED phase.
Overall Refinery
An overall refinery Block Flow Diagram is given in Figure 2.10.
The results of the Refinery Simulation are given in Figure 2.11. The flows for this simulation
are similar to, but not identical to those used in the unit by unit material balance. This is
expected, because the unit by unit material balance uses technology supplier estimates,
while the simulation used generalized estimates. The closeness of the numbers confirms the
information given to us by the technology suppliers.
2-29
Figure 2- 10 Overall Refinery Block Flow Diagram
2-31
2-32
2-33
2-34
2-35
2-36
2-37
2-38
2-39
2-40
2-41
2-42
2-43
2-44
2.3.14 Blending
2.3.14.1 Gasoline
The gasoline produced at Talara will be a blend of four different components. These are
FCC gasoline octane 93.5 based on current FCC operations (no additional data was
available from the catalyst supplier for the future case), Reformate, ethanol, and Butane.
The desulfurized FCC gasoline will be low in benzene and sulfur. Reformate will be very low
in sulfur, and have little or no benzene. The gasoline blend meets all of the specifications,
and has an octane of 93.5, as compared to a specification of 91 minimum.
ADL received from PETROPERU instructions to maximize the production and yields of diesel
of which FCC Light Cycle Oil (LCO) is an important component. FCC low severity catalyst
operation is known to increase the yield of LCO from 15%-18% to 30-33% vol.
Notwithstanding the foregoing, ADL could not obtain a reply from commercial FCC catalyst
suppliers for such low severity yields, and as a result opted to produce a Conceptual Design
Volumetric Balance using the less attractive diesel yields of high severity FCC yields of the
current Talara FCC operation.
If Petroperu can revise the Basic Design of the FCC revamp to be based on a low severity
operation and design, the profitability of the project may be increased.
Removal of the C
5
and C
6
from reformate will increase the octane making the overall
gasoline blend higher than required.
The reformate will be very low in sulfur. It will be necessary to distill the reformer feed to
remove the benzene precursors. The blend of these materials is given in Table 2.1. The
octane of the heavy reformate is also calculated in this table.
Butane (or butylene) is added to the gasoline to set the RVP. For the purpose of this study,
a target RVP of 10 was selected. Since butane has an octane of 100, any butane added to
the blend will further increase the octane of the blend. Any excess butane will go into either
the hydrogen plant or the refinery fuel system.
2-45
2.3.14.2 Diesel
The diesel fuel from the Talara refinery will be blended from two different blend stocks.
These blend stocks will be the desulfurized diesel stream, a heavy naphtha from the diesel
desulfurizer. The blend of these materials is given in Table 2.2. Excess jet fuel was
desulfurized, and blended into the diesel fuel pool.
The diesel desulfurizer will desulfurize a mixture of straight run diesel, LCO from the FCC,
and the Flexicoker diesel cut.
The blended diesel will have a cetane index of 47.1, compared to a 47.0 minimum
specification, and a sulfur content of <2 ppm.
It is clarified that the scope of the services includes in-line blending systems for residual
gasoline and fuel oils. Some blending tanks shall be used for the export products.
2.3.14.3 The calculations showing the blending of Gasoline and Diesel Fuel are given in Table
2.1.and 2.2.
2-46
Table 2- 1 Calculations of Blending Gasoline and Diesel Fuel - Selected

Table 2.1
Gasoline and Diesel Blending
Selected Case
Product Qualities

Product:

Gasoline BBLS RON RON-bbls Sulfur ppm S - bbls Benzene,
%
BZ-
bbls
Aromatics,
%

FCC
Naphtha 8916 93.4 832754.4 3.0 26748.0 0.5 4279.7 29.6
Lt Naphtha 4196 58.8 246934.0 0.0 0.0 1.3 5454.8 1.3
Reformate 6195 110.9 686801.6 0.0 0.0 0.0 0.0 44.7
Ethanol* 1498 120.0 179760.0 0.0 0.0 0.0 0.0 0.0

Blend 20805 93.5 1946250.0 1.3 26748.0 0.5 9734.5 26.3
Specification
91,
min 50. max 1.0, max 35, max

Diesel Fuel BBLS Cetane
Cetane -
bbls Sulfur ppm S - bbls

0.0
Desulfurized
Diesel 28075 47.2 1325140.0 0.1 2807.5
Desulfurized
Heavy
Naphtha 973 30.4 29579.2 0 0.0

Blend 29048 46.6 1354719.2 0.1 2807.5
Specification
47,
min 50, max

* Dictated by
Peruvian
Law
2-47
Table 2- 2 Calculation of Blending Gasoline and Diesel Fuel - Selected

Table 2.2
Octane Calculation*
Selected Case

Lt Naphtha Lt Naphtha from Reformer

Component Fraction RON Component Fraction RON

n-Pentane 0.0518 62 3.2 n-Pentane 5.15 62
i-Pentane 0.0131 92 1.2 i-Pentane 7.17 92
Cyclopentane 0.0033 83 0.3 Cyclopentane 0.43 83
n-Hexane 0.1037 25 2.6 n-Hexane 5.17 25
2m-Pentane 0.1008 75 7.6 2m-Pentane 13.51 75
m-Cyclopentane 0.0215 103 2.2 m-cyclopentane 0.25 103
Cyclohexane 0.0215 97 2.1 Cyclohexane 0.02 97
Benzene 0.005 101 0.5 Benzene 4.56 101
n-Heptane 0.01317 0 0.0 n-Heptane 1.34 0
2m-Hexane 0 44 0.0 2m-Hexane 0 44
Blend 0.33387 58.8 19.6 Blend 37.6 0.0

Heavy Reformate

Component Fraction RON
Lt Naphtha 0.253 58.8 14.9
Calculated
above
Hvy Reformate 0.4636 111 51.4
Reformate 0.7166 92.5 66.3 From Exxon

* Assumes linear blending
2-48
2.4 Units Rejected for the Selected Case
2.4.1 Delayed Coker
The delayed coker was based upon Foster Wheeler technology. This technology has two major
drawbacks that led to its being discarded. The first is that the capital required is higher than the
capital required for the Flexicoker. This seems to be counter-intuitive. Upon rechecking with
both Foster Wheeler and with ExxonMobil, they both confirmed that their original estimates were
correct. The difference between the two processes is the huge amount of coke generated by
the delayed coker from the heavy crude. This leads to bigger coke drums, and more and/or
bigger coke handling equipment. Hence, the higher capital estimate.
The second drawback is the large amount of coke made by the delayed coker. There is no
reasonable way of disposing of it. The coke market is currently oversupplied, so it will be very
difficult to sell it. The Talara refinery is not situated to handle the large amount of coke. It does
not have the dock or solids handling equipment necessary to ship the coke. It does not have
the land available to store the coke. One possible solution is to convert the coke into electricity
and put the power on the Peruvian grid. The revenues generated by this approach do not
produce an acceptable return on the capital required to generate and export the power.
2.4.2 Residual Oil Hydrocracker
The residual oil hydrocracker does not convert enough residual oil, leaving large amounts of the
residual oil to be blended into fuel oil. There is no particular capital expenditure advantage to
going this route. The large amount of bottoms is analogous to the large quantity of coke
generated by the delayed coker.
One of the objectives of the project is to minimize or eliminate the quantity of fuel oil that is sold
by the refinery. This option does not meet this objective. Therefore, this option was dropped.
2.4.3 Solvent Deasphalter (ROSE Unit):
This technology is the lowest capital cost approach to the modernization project. This
technology has two fatal flaws. It generates a large quantity of residuum, and for the maximum
quantity of deasphalted oil (DAO), the con carbon content of the DAO is too high for further
2-49
processing in a MPHC. The large quantity of residuum results in high sales of fuel oil, which is
contrary to the project objective of minimizing the production of fuel oil. This option was
dropped.
2.4.4 Medium Pressure Hydrocracker
The ExxonMobil technology is very good, but expensive. The kerosene plus diesel fuel
production is about 60% of the feed to the unit. Haldor Topsoe, and Chevron Lummus have
similar technologies that can be considered. All of these technologies could be evaluated in
depth at the FEED stage of the project. The comparisons of ExxonMobil and Chevron -
Lummus technologies are given as an example in the technology selection report the RFP for
the Chosen Technologies.
The ExxonMobil process is a two stage process that desulfurizes, opens rings, cracks, and
isodewaxes the feed to the unit. It does this in a way that maximizes the production of diesel
fuel and kerosene. The kerosene plus diesel yield from Napo crude is 65+%. The unit also
produces naphtha, LPG, refinery gas, and H
2
S. The nitrogen in the feed comes out as
ammonia. The bottoms product is a highly paraffinic low pour product that is an excellent feed
for an FCC, except for its lack of con carbon.
In spite of the advantages of this technology for the Talara Refinery, the capital required for this
unit is too high, and it was dropped from further consideration.
2.4.5 Alkylation
Although the FCC generates isobutene and olefins, the quantity of this material is not adequate
to fully supply a minimum economically sized alkylation plant. There is no need for additional
high octane gasoline feedstock, because reformate and FCC gasoline provide more than
enough octane to satisfy the demands of the gasoline market.
With no economic justification for this unit, this option was dropped.
2-50
2.4.6 Benzout Unit
This unit is designed to remove benzene from gasoline by reacting it with either ethylene or
propylene to form either ethyl benzene or cumene. This has the additional advantage of
converting the olefins in the refinery gas stream into gasoline.
For a refinery as small as Talara, the cost of the unit is not economically justified. This unit
would cost $15,000,000. In addition, the reforming of the light naphtha would increase the size
of the reformer by about 50%. This will increase the cost of the reformer by an additional
$17,000,000. The expenditure of $32,000,000 to avoid the purchase of high octane blend
stocks is not economically justifiable.
2.4.7 Circulating Fluidized Bed Boiler
With the Flexicoker, there will be insufficent coke to burn in a boiler. This is the highest capital
cost boiler which will require up three times the stoichiometric amount of limestone to operate
and control sulfur emissions. The closest limestone to Talara is over 60 miles away and would
require an excessive number of truck loads a day. There is no need or economic justification for
this unit.
2.4.8 Fluidized Bed Boiler
With the Flexicoker, there will be little coke to burn in a boiler. This is the second highest capital
cost boiler but it only requires the stoichiometric amount of limestone to control emissions.
There is no justification for this unit.
2.4.9 Claus Unit for Sulfur Production
The H
2
S stream can either be converted into sulfur in a Claus unit or into sulfuric acid in a WSA
unit. There is three times as much sulfuric acid produced as sulfur. Sulfuric acid sells at about
twice the price as sulfur, to increase the income from the H
2
S stream by a factor of 6. At the
same time, the capital required for a WSA unit is one third to one half the capital required for a
Claus unit.
For these economic reasons, this option was dropped.
2-51
2.4.10 Isobutane Column
This column was considered in conjunction with the alkylation unit. There is no need to
separate the butane streams to isolate isobutane as an alkylation unit feed. The other
requirement would be to adjust the proportion of C4s in the LPG stream. This can be done by
operating the depropanizer within the existing FCC gas plant hotter to take some C4s out
overhead with the C3s.
With the reasons for the isobutane column eliminated by either taking away the use for the
isobutane, or finding another way to put butanes into LPG, the need for the column was
eliminated, along with the capital cost for installing the column.
2.5 Residue Reduction
2.5.1 Technologies Available
2.5.2 Coking
Coking is the slow cracking of residuum into lighter products and coke. In the process, almost
all of the hydrogen in the residuum goes into the lighter products, while the coke contains the
remaining carbon, and any ash, metals or other solids contained in the crude oil.
2.5.2.1.1 Delayed Coking
One of the coking methods is delayed coking. In this process, the coking process is done in a
coke drum. The light products leave the coke drum as a vapor, and the coke collects in the
drum. Periodically (every twelve hours or so), the coke is cut out of the drum with high pressure
water or steam and collected in a coke pit. This technology is open art, and can be generally
used by anyone. Some licensors, such as Foster Wheeler, have improved on portions of the
process and charge a royalty for the use of their improvements.
2.5.2.1.2 Flexicoking
A second method is Flexicoking. In this technology, the coking operation takes place in a
reactor, rather than the coke drum. The coke generated in the coking operation goes into a
heater, where it is heat exchanged with coke from a downstream gasifier. This hot coke
2-52
provides the heat for the coking operation. The coke finally finds its way into the gasifier, where
it is gasified into a low BTU fuel gas. This technology is only available from Exxon.
The advantages of this operation are that relatively little coke is generated, and that a low BTU
gas suitable as a fuel to a fired heater or a CO boiler is produced.
2.5.2.2 Residuum Hydrocraking
In this process, the residuum is contacted with hydrogen in the presence of a catalyst. This
converts the asphaltenes in the residuum into hydrogenated products that can be further
processed and converted into light products. This approach would take large quantities of
hydrogen to convert most of the asphaltenes into hydrogenated products. The catalyst usage is
high, because the metals that are normally presence in crude oil residuum poison the catalysts
that are required for the hydrocracking process.
2.5.2.3 Solvent Deasphalting
Deasphalting dissolves all of the hydrocarbons except the asphaltenes in the residuum in a light
paraffinic solvent, such as propane or pentane. The two liquid phases are separated, and the
solvent is distilled off for recycle. This is old technology that was originally developed by lube oil
refiners. It has been adapted for the processing of heavy crudes, such as Napo.
This is the lowest cost method of reducing the volume of residuum, because it does not require
large amounts of equipment, and does not operate at high temperatures and pressures.
This process, however, only concentrates the asphaltenes in the residuum. It does nothing to
convert the asphaltenes into usable products. For this reason, there are large quantities of fuel
oil that are generated by this process.
2.6 Environmental Considerations
Details of the environmental viablity are provided in the Environmental Viability Report.
2-53
2.7 Plot Plan and PFDs
x The plot plan provided by PETROPERU has been updated to show the location of the
proposed new units, utilities, environmental controls, and general facilities. This plot plan is
given in Appendix A-1.
x All new units were marked with a blue honeycomb fill on the plot plan.
x All of the items on the plot plant will be reviewed during the preparation of the FEED. It is
expected that the final locations will be updated somewhat with the more detailed
information that will be developed during the FEED.
2.7.1 Process Units
x The existing units were not moved. The jet fuel caustic treater upgrade was not included,
since it will be completed as a refinery project prior to the Talara expansion and
modernization.
x The new units were placed in the same corridor as the existing units, in order to make the
modernized refinery as compact as possible and to keep the operating units well within the
refinery and away from the view of the public. The new units were also located to minimize
the length of runs for the connecting piping, cables and wiring.
x Spacing in the units and between the units conforms to NFPA and good refinery design
practices. The spacing takes into account accessibility for safety, operations and
maintenance. Plus adequate spacing is provided for all fired heaters to keep them a safe
distance from hydrocarbons.
2.7.2 Utilities
x The refinery is almost internally balanced on utilities. It will require only the purchase of 10
MM BTU/hr of natural gas to operate the gas turbine power generators. Much larger
quantities of natural gas will be required during start up before the refinery starts generating
2-54
its own fuel and waste heat. The start up quantities of natural gas could be as high as 850
MM BTU/hr.
x The sea water cooling inlet and discharge were relocated on the Pacific Ocean side of the
refinery. The inlet was located south of the discharge to take advantage of the Humboldt
Current that flows from south to north. This location will help avoid the short circuiting of
warm water into the cooling water inlet.
x New offsite facilities, such as instrument air compressors, and the PSA nitrogen unit will be
located within the existing Industrial Services area and the new Industrial services area.
2.7.3 General Facilities
See General Facilities for detailed discussion.
2.7.4 A Block Flow Diagram of the refinery has been presented as Figure 2.11.
This diagram shows the unit sizes, and the flows between the process units within the
modernized refinery.
2.7.5 The Flow Diagrams for the individual units have been given as Figures 2.1 2.9. The units that
have flow diagrams are:
x Flexicoker
x Diesel Desulfurizer
x FCC Gasoline Desulfurizer
x Naphtha Desulfurizer
x Reformer
x New Gas Plant
x Amine Unit
x Sulfuric Acid Unit
x Hydrogen Plant
2-55
2.7.6 Material Balances
2.7.6.1 The overall refinery material balance shows that the revamped refinery will produce:
x 8831 BPDO of LPG
x 19352 BPDO of Gasoline
x 8200 BPDO of Jet Fuel
x 39819 BPDO of Diesel Fuel
x 10837 BPDO of Heavy Fuel Oil and Asphalt
x For a total of 87039 BPDO total liquid products
x 344 short tons a day of sulfuric acid
x 488 short tons a day of petroleum coke
From:
x 57500 BPDO of Napo Crude
x 12350 BPDO of Petrotech crude
x 13000 BPDO of Petrobras crude
x 7150 BPDO of Talara Varios crude
2-56
The overall material balance was given in Table 2.3.
Table 2- 3 The Overall Refinery Material Balance - Selected
Table 2.3A
Selected Case Refinery Products

Fuel
Gas
LPG Gasoline
Jet
Fuel
Diesel
Fuel
Sulfuric
Acid
Heavy
Fuel
Oil

Feeds

Napo Crude bpdo
Iquitos Reduced Crude bpdo

Products:

Atmospheric Tower
Refinery Gas kscfd
Light Naphtha bpdo
Heavy Naphtha bpdo
Kerosene bpdo 8200
Diesel Fuel bpdo
Reduced Crude bpdo 1160

Flexicoker
Hydrogen Sulfide kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
Butane bpdo
Naphtha bpdo
Diesel bpdo
Residue bpdo
Coke
short
tons/day
Gasified Coke, MMBTU/day
2-57
Table 2.3B

Fuel
Gas
LPG Gasoline
Jet
Fuel
Diesel
Fuel
Sulfuric
Acid
Heavy
Fuel Oil
Fluid Catalytic Cracker
Ammonia kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
i - Butane bpdo
n - Butane bpdo
Naphtha bpdo
Kerosene bpdo
Diesel bpdo
Residue bpdo 1677
2-58
Table 2.3C
Fuel
Gas
LPG Gasoline
Jet
Fuel
Diesel
Fuel
Sulfuric
Acid
Heavy
Fuel Oil

Diesel Desulfurizer
Ammonia kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
i-Butane bpdo
n-Butane bpdo
i-Pentane bpdo
n-Pentane bpdo
Naphtha bpdo
Heavy Naphtha bpdo 1168
Kerosene bpdo 4943
Diesel bpdo 33708
Naphtha Desulfurizer
Ammonia kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
i-Butane bpdo
n-Butane bpdo
i-Pentane bpdo
n-Pentane bpdo
Lt. Naphtha bpdo 8893
Naphtha bpdo
2-59
Table 2.3D
Fuel
Gas
LPG Gasoline
Jet
Fuel
Diesel
Fuel
Sulfuric
Acid
Heavy
Fuel
Oil
Reformer
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
i-Butane bpdo
n-Butane bpdo
i-pentane bpdo
n-Pentane bpdo
Lt Naphtha bpdo 4224
Reformate bpdo 6235
Gas Plant
Ammonia kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Propane bpdo 7048
i-Butane bpdo 655
n-Butane bpdo 1129
i-Pentane bpdo 139
n-Pentane bpdo 196
Amine Plant
Ammonia kscfd
Hydrogen kscfd 6123
Methane kscfd 7564
Ethane kscfd 4680
Sulfuric Acid
Sulfuric Acid st/day 344

Total Refinery Production 8831 19352 8200 39819 344 10837
The unit to unit material balance is given in Table 2.4.
2-60
2.7.7 Table 2- 4 Unit to Unit Material Balance
Table 2- 4 Unit to Unit Material Balance - Selected
Table 2.4A
Selected Case Refinery Unit Material Balances

Atmospheric
Tower
Vacuum
Tower
Flexicoker FCC
Naphtha
Desulfurization
FCC Gasoline
Desulfurization
Reformer
Diesel
Desulfurization
Feeds

Talara Blend bpdo 90,000
Napo bpdo

Products:

Atmospheric Tower
Refinery Gas kscfd 0
Light Naphtha bpdo -7996 7996
Heavy Naphtha bpdo -1150 1150
Kerosene bpdo -12700 4500
Diesel Fuel bpdo -14880 14880
Reduced Crude bpdo -53300 51300 840
Vacuum Tower
LVGO -6396 6396
HVGO -24580 24580
Vac. Resid -20300 20300
Flexicoker
Hydrogen Sulfide kscfd -2033
Hydrogen kscfd -1279
Methane kscfd -2880
Ethane kscfd -1450
Propane bpdo -591
Butane bpdo -421
Naphtha bpdo -4243 4243
Diesel bpdo -1888 1888
Residue bpdo -6882 6882
Coke
short
tons/day -488

Gasified Coke,
MMBTU/hr -1099
2-61
Table 2.4B

Atmospheric
Tower
Vacuum
Tower
Flexicoker FCC
Naphtha
Desulfurization
FCC Gasoline
Desulfurization
Reformer
Diesel
Desulfurization

Fluid Catalytic Cracker 24302
Ammonia kscfd
Methane kscfd -1657
Ethane kscfd -573
Propane bpdo -5526
i - Butane bpdo -5
n - Butane bpdo -6
Naphtha bpdo -8992 8992
Kerosene bpdo
Diesel bpdo
-
10110 10110
Residue bpdo -1677
2-62
Table 2.4C

Atmospheric
Tower
Vacuum
Tower
Flexicoker FCC
Naphtha
Desulfurization
FCC Gasoline
Desulfurization
Reformer
Diesel
Desulfurization
Diesel Desulfurizer 38923
Ammonia kscfd -15
Methane kscfd -1527
Ethane kscfd -1266
Propane bpdo -240
i-Butane bpdo -185
n-Butane bpdo -178
i-Pentane bpdo -21
n-Pentane bpdo -20
Naphtha bpdo 467 -467
Heavy Naphtha bpdo -1168
Kerosene bpdo -4943
Diesel bpdo -33708
Naphtha Desulfurizer 12239 0
Hydrogen Sulfide kscfd -31 -23
Ammonia kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd -30 -11
Propane bpdo
i-Butane bpdo
n-Butane bpdo
i-Pentane bpdo
n-Pentane bpdo
Lt Naphtha bpdo
Naphtha bpdo -12104 -8893 12104
2-63
Table 2.4D

Atmospheric
Tower
Vacuum
Tower
Flexicoker FCC
Naphtha
Desulfurization
FCC Gasoline
Desulfurization
Reformer
Diesel
Desulfurization

Reformer 12571
Methane kscfd -1500
Ethane kscfd -1346
Propane bpdo -690
i-Butane bpdo -465
n-Butane bpdo -523
i-pentane bpdo -119
n-Pentane bpdo -175
Lt Naphtha bpdo -4224
Reformate bpdo -6235

Gas Plant
Ammonia kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
i-Butane bpdo
n-Butane bpdo
i-Pentane bpdo
n-Pentane bpdo
Amine Plant
Ammonia kscfd
Hydrogen kscfd
Methane kscfd
Ethane kscfd
Sulfuric Acid
Sulfuric Acid st/day

Total Refinery
Production
Fuel Gas MMBTU/hr
Low BTU Gas MMBTU/hr 1099

Total Fuel Gas Available MMBTU/hr
2-64
Table 2.4E
Minimum Capital Case Refinery Unit Material Balances

Gas Plant
Amine
Unit
Sulfuric
Acid
Caustic
Treating

Feeds

Napo Crude bpdo
Iquitos Reduced Crude bpdo

Products:

Atmospheric Tower
Refinery Gas kscfd 5
Light Naphtha bpdo
Heavy Naphtha bpdo
Kerosene bpdo 12700
Diesel Fuel bpdo
Reduced Crude bpdo

Flexicoker
Hydrogen Sulfide kscfd 2033
Hydrogen kscfd 1279
Methane kscfd 2880
Ethane kscfd 1450
Propane bpdo 591
Butane bpdo 421
Naphtha bpdo
Diesel bpdo
Residue bpdo
Coke
short
tons/day
Gasified Coke,
MMBTU/day
2-65
Table 2.4F

Gas Plant
Amine
Unit
Sulfuric
Acid
Caustic
Treating

Ammonia kscfd
Methane kscfd
Ethane kscfd
Propane bpdo
i - Butane bpdo
n - Butane bpdo
Naphtha bpdo
Kerosene bpdo
Diesel bpdo
Residue bpdo
Fluid Catalytic Cracker
Hydrogen Sulfide kscfd 209
Ammonia kscfd
Methane kscfd 1657
Ethane kscfd 573
Propane bpdo 5526
i - Butane bpdo 5
n - Butane bpdo 6
Naphtha bpdo
Kerosene bpdo
Diesel bpdo
Residue bpdo
2-66
Table 2.4G
Gas Plant
Amine
Unit
Sulfuric
Acid
Caustic
Treating
Diesel Desulfurizer
Hydrogen Sulfide 271
Ammonia 15
Hydrogen 3344
Methane 1527
Ethane 1266
Propane 240
i-Butane 185
n-Butane 178
i-Pentane 21
n-Pentane 20
Naphtha
Heavy Naphtha
Kerosene
Diesel
Naphtha Desulfurizer
Hydrogen Sulfide 54
Ammonia
Hydrogen
Methane
Ethane 41
Propane
i-Butane
n-Butane
i-Pentane
n-Pentane
Lt Naphtha
Naphtha
2-67
Table 2.4H
Gas Plant
Amine
Unit
Sulfuric
Acid
Caustic
Treating

Reformer
Hydrogen
Methane 1500
Ethane 1346
Propane 690
i-Butane 465
n-Butane 523
i-pentane 119
n-Pentane 175
Lt Naphtha bpdo
Reformate

Gas Plant
Hydrogen Sulfide -2567 2567
Ammonia -15 15
Hydrogen -6123 6123
Methane -7564 7564
Ethane -4680 4680
Propane -7048
i-Butane -655
n-Butane -1129
i-Pentane -139
n-Pentane -196
Amine Plant
Hydrogen Sulfide -2567 2567
Ammonia -15 15
Hydrogen -6123
Methane -7564
Ethane -4680
Sulfuric Acid
Sulfuric Acid -344
2-68
2.7.8 The gas balance within the refinery, showing sources and disposition of various gas
streams is also shown in Table 2.4. A gas specific balance is given in Table 2.5. This gas
balance shows that the refinery can expect 377 MM BTU/hr of refinery gas.
Table 2- 5 Gas Specific Balance - Selected
Table 2.5
Selected Case Fuel Gas from Refinery

Fuel Gas MMBTU/hr 811 1216 BTU/scf
Low BTU Gas MMBTU/hr 1099 130 BTU/scf

Total Fuel Gas Available MMBTU/hr 1910
2.7.9 The hydrogen balance is given in Table 2.6. This table shows that the refinery needs to
produce 20 MM scfd of hydrogen in addition to the reformer hydrogen that is produced.
Table 2- 6 Hydrogen Balance - Selected
Table 2.6
Hydrogen Balance

Sources: Size
Unit
Consumption
Total
Consumption
BPDO scfb MMscfd

Hydrogen Plant 20
Reformer 8300 1350 11

Total Produced 31

Uses:

FCC Gasoline Desulfurization 9000 -350 -3
Diesel Desulfurization 25099 -760 -19
Naphtha Desulfurization 13793 -350 -5

Total Consumed -27

2-69
2.7.10 The sulfur balance is given in Table 2.7. The sulfur balance accounts for 96% of the
sulfur.
Table 2- 7 Sulfur Balance - Selected

Table 2.7
Sulfur Balance

Sulfur In: Feed
Specific
Gravity Weight % Sulfur
Weight
Sulfur
BPDO lbs/day lbs/day
Napo Crude 57500 0.9414 18945675 2.18 413016
Petrotech 12350 0.8389 3626145 0.065 2357
Petrobras 13000 0.8593 3909815 0.094 3675
Varios 7150 0.8542 2137636 0.071 1518

Total Sulfur 420566

Sulfur Out:

Sulfuric Acid tpd 344 688000 0.326531 224653.1
Fuel Oil 11681 1.014 4145587 3.25 134732
Coke 230000 1.5 3450
Jet Fuel 16817 0.85 230000 0.3 690
Gasoline 19307 0.75 5068088 0.0003 15

Total Sulfur
363540

Sulfur Accounted for,
% 86
2.8 Catalyst and Chemical Consumption
The major catalyst and chemical consumptions are given in Table 2.8. This balance
shows that the annual chemical cost is $430,000, and the annual catalyst cost is
$9,458,000. There are probably other small consumptions of chemicals that will add to
the chemical total.
2-70
Table 2- 8 Major Catalyst and Chemical Consumptions - Selected

Table 2.8
Catalyst and Chemical Consumption
Preferred Case

Unit Chemicals Catalysts
(K $) (K $)

Flexisorb SE 175
Proprietary
Amine
FCC 4460
Diesel Desulfurizer 3900
Naphtha Desulfurizer 360
FCC Gasoline
Desulfurization 260
Reformer 478
Amine 5 Amine
WSA 250
Hydrogen
Peroxide

Total Annual Cost 430 9458

2.9 Operating Cost
The operating cost items are summarized in Table 2.9. This table summarizes the labor,
supervision, maintenance, and other factors, shown as number of people, a factor of the
number of people, catalyst and chemical cost, or as a factor based upon capital
expenditure.
These data are typical United States Gulf Coast (USGC) numbers, and are presented in
this fashion to enable PETROPERU to adapt them to their particular operating style and
philosophy. ADL made its operating cost estimates based on industry experience, similar
operations, benchmark analysis, and other sources.
2-71
Table 2- 9 Operating Cost Selected
Table 2.9
Operating Cost Basis
Selected Case

Unit
Men/
Shift
Total
Men Men/Shift
Total
Men

Atmospheric
Column 2 Technical:
Vacuum Column I 2
Vacuum Tower II 2
Flexicoker 6
FCC Gasoline
Desulfurizer 2 Process Engineers 7
Diesel Desulfurizer 2 Maintenance Engineers 7
Naphtha
Desulfurizer 1
Reformer 1 Utilities:
FCC 2
New Gas Plant 2 Supervisors 4
Hydrogen 2
Amine Plant 2 Engineers 1
WSA 2
Blending 2 Environmental:
Swing Operators 3
Utility Operators 4 Supervisors
Share with
Utilities
Environmental Operators 2 Engineers
Share with
Utilities
Total
Operators/Shift 39
Supervisors 25
Total Operators on Staff 156
Laboratory Technicians 20
Labor: Laboratory Supervision 4
Coke Handling 25
Shipping &
Receiving 24
General 20

Total Laborers 69

2-72
Table 2. 9 Con't
Operating Cost Basis
Selected Case

Total Personnel

Laborers 69
Operators 156
Technicians 20
Supervisors 33
Engineers 15

Operating Supplies 10% of Operators plus Laborers
Utilities See Utility Summary
Catalyst & Chemicals See Table
Maintenance
3% of Capital (Includes Maintenance
Mechanics)
Taxes & Insurance
5% of Capital (Will vary by Peruvian Regulations and
Tax Rates)
2.10 Capital Estimate
The capital is shown in Table 2.10. This estimate shows that the total capital
required is $954,000,000, USGC basis. The contingency factor is included
in table 2.10 as provided by Petroperu policy.
Description of power generation is included as a utility in section 3.2.5. The
estimate includes a remote control room, programmer, testing, controls and
installation of the control system. This estimate includes an Emergency
Shutdown System (ESO) as listed in Chapter 4.
2-73
Table 2- 10 Capital Estimate - Selected
Table 2.10
Talara Refinery Selected Case
Capital Estimate
ISBL OSBL
Size
Cost,
$MM Units Size
Cost,
$MM
Cost,
$MM
Utilities General Facilities Environmental
Atmospheric
Tower BPDO 90000 10
Power
Generator MW 44 60 Dock 45 Waste Water 6
Vacuum
Tower BPDO 53000 61
Substation
& Power
Lines 10 Tankage 20
Smokeless
Flare 3
Flexicoker BPDO 20000 193
Cooling
Water
MM
gpm 65 25 Fire Water 7
Chemical
Sewer 1
FCC BPDO 24000 40
CW
Pumps
MM
gpm 65 6 Nitrogen 2
Sanitary
Sewer 1
Diesel
Desulfurizer BPDO 39000 50 CO Boiler M#/hr 421 6 Office Building 5
FCC
Gasoline
Desulfurizer BPDO 9000 14 Laboratory 5
Naphtha
Desulfurizer BPDO 12600 24 Deaerator gpm 3500 1
Instrumentation &
Control Systems 64
Total
Environmental 11
Reformer BPDO 9000 40
BFW
Pumps gpm 3500 7
Coke Shipping
Equipment 21
Naphtha
Splitter BPDO 13000 5 RO Plant 0 Total OSBL 301
New Gas
Plant 30
Instrument
Air scfm 6
Total General
Facilities 169
Amine gpm 600 8 Connections 71
Sulfuric Acid ST/day 344 28
Total
Utilities 121
Hydrogen MMscfd 20 79 Total, USGC 954
Total ISBL 582
Location 20% 191
Contingency 12% 140
Owner Cost 21
Total Cost 1,306
2-74
3-1
Table of Contents
TABLE OF CONTENTS..........................................................................................1
TABLES..................................................................................................................2
FIGURES ................................................................................................................3
3 TALARA REFINERY UTILITIES.....................................................................4
3.1 Descriptive of Conceptual Systems...................................................................................................... 4
3.1.1 Document of Calculations Made .................................................................................................. 4
3.2 Sea Water Cooling............................................................................................................................... 11
3.2.1 Cooling Water .......................................................................................................................... 11
3.2.1.1 Seawater/Waste Water Discharge: ...................................................................................... 13
3.2.1.2 Seawater Cooling Pump...................................................................................................... 14
3.2.1.3 Desalinated Water ............................................................................................................... 15
3.2.1.4 Deionized Water for Boiler Feed ........................................................................................ 16
3.2.1.5 Desalter Wash Water........................................................................................................... 16
3.2.1.6 Boiler Feed Water ............................................................................................................... 16
3.2.1.7 Boiler Feed Water Pump ..................................................................................................... 17
3.2.2 Steam.......................................................................................................................................... 17
3.2.3 Deaerator .................................................................................................................................... 18
3.2.4 Electric Power ............................................................................................................................ 19
3.2.5 Gas Turbine Generator ............................................................................................................... 19
3.2.6 Fuel Gas...................................................................................................................................... 20
3.2.7 Hydrogen Plant........................................................................................................................... 21
3.2.8 Instrument Air ............................................................................................................................ 24
3.2.9 Nitrogen Plant............................................................................................................................. 24
3.2.10 Calculations................................................................................................................................ 24
3.3 Conceptual Process Flow.................................................................................................................... 25
3.4 Diagrams and Descriptions of Conceptual Processes ...................................................................... 30
3.5 Diagrams and Descriptions of Conceptual Processes ...................................................................... 31
3.6 Unit Chemical Consumptions ............................................................................................................ 31
3.7 Liquid Effluent and Gas Emissions ................................................................................................... 31
3.8 Technical Reasons for Discarding Options ....................................................................................... 31
3.9 Investment............................................................................................................................................ 31
3.10 Labor Requirements ........................................................................................................................... 32
3.11 Implementation Plan....................................................................................................................... 32
3-2
Tables
TABLE 3- 1 UTILITY SUMMARY SELECTED CASE............................................................................................. 5
TABLE 3- 2 UTILITY USAGE SELECTED CASE................................................................................................... 9
TABLE 3- 3 NET REFINERY CONSUMPTIONS ..................................................................................................... 10
3-3
Figures
FIGURE 3 A....................................................................................................................................................... 22
FIGURE 3 B....................................................................................................................................................... 23
FIGURE 3- 1 COOLING WATER SYSTEM............................................................................................................ 26
FIGURE 3- 2 FUEL GAS SYSTEM....................................................................................................................... 27
FIGURE 3- 3 STEAM SYSTEM............................................................................................................................. 28
FIGURE 3- 4 ELECTRICAL SYSTEM.................................................................................................................... 29
FIGURE 3- 5 FLOW OF FUEL GAS, STEAM AND POWER TO AND FROM PLANT.................................................... 30
3-4
3 Talara Refinery Utilities
3.1 Descriptive of Conceptual Systems
3.1.1 Document of Calculations Made
Overall utility balances for the Selected Case have been prepared, and are given
in the attached Tables 3.1 - 3.3. The tables show both generation and consumption
for all utilities.
The Selected Case will buy 10 MM BTU/hr of natural gas.
3-5
Table 3- 1 Utility Summary Selected Case
Table 3.1
Expanded and Modernized Talara Refinery
Selected Case
Utility Summary

Unit
Atmospheric
Tower
Flexicoker
FCC
Gasoline
Desulfurizer
Utility
Feed
Rate
Consumption
per barrel
Total
Consumption
Feed
Rate
Consumption
per barrel
Total
Consumption
Feed
Rate
Consumption
per barrel
Total
Consumption

Power KW 90000 0.029 2610 51300 0.5684 29158.92 9015 0.00239 21.54585
Fuel
Gas
MM
BTU/hr
90000 0.002122 191 51300 0 9015 0.00123 11.08845
Low
BTU
Gas
MM
BTU/hr
90000 0 51300 -0.0401 -2057.13 9015 0 0
Cooling
Water
gpm 90000 0.075 6750 51300 0.3336 17113.68 9015 0.063 567.945
Boiler
Feed
Water
gpm 90000 0 51300 0.01262 647.406 9015 0
LP
Steam
M
lbs/hr
90000 0.0002 18 51300 -0.0123 -630.99 9015 0
MP
Steam
M
lbs/hr
90000 0 51300 0 0 9015 0.00331 29.83965
HP
Steam
M
lbs/hr
90000 0.0000173 1.557 51300 0.0105 538.65 9015 0

3-6
Table 3.1 Cont
Selected Case
Utility Summary
Unit FCC
Diesel
Desulfurizer
Naphtha
Desulfurizer
Utility
Feed
Rate
Consumption
per barrel
Total
Consumption
Feed
Rate
Consumption
per barrel
Total
Consumption
Feed
Rate
Consumption
per barrel
Total
Consumption

Power KW 10950 0.066 722.7 25099 0.1552 3895.3648 13793 0.00239 32.96527
Fuel
Gas
MM
BTU/hr 10950 0 0 25099 0.0014 35.1386 13793 0.00123 16.96539
Low
BTU
Gas
MM
BTU/hr 10950 0 25099 0 0 13793 0 0
Cooling
Water gpm 10950 0.442 4839.9 25099 0.15 3764.85 13793 0.063 868.959
Boiler
Feed
Water gpm 10950 0 25099 0 13793 0
LP
Steam
M
lbs/hr 10950 0.00104 11.388 25099 0.00584 146.57816 13793 0
MP
Steam
M
lbs/hr 10950 0 25099 0 13793 0.00331 45.65483
HP
Steam
M
lbs/hr 10950 0.00525 57.4875 25099 0 13793 0

3-7
Table 3.1 (cont)
Selected Case
Utility Summary, Continued

Unit Reformer Hydrogen*
Utility
Feed
Rate
Consumption
per barrel
Total
Consumption
Feed
Rate
Consumption
per MMscf/hr
Total
Consumption
Feed
Rate
Consumption
per gpm
Total
Consumption

MM
scfd gpm
Power KW
1309
9 0.125 1637 20 16.03 321 600 0.833 499.8
Fuel
Gas
MM
BTU/hr
1309
9 0.0126 165 20 15.52 310 600 0.069416667 41.65
Low
BTU
Gas
MM
BTU/hr
1309
9 0 0 20 0.70 14 600 0
Coolin
g
Water gpm
1309
9 0.278 3642 20 8.57 171 600 0
Boiler
Feed
Water gpm
1309
9 0 20 5.10 102 600 0
LP
Steam
M
lbs/hr
1309
9 0.00131 17 20 0 600 0
MP
Steam
M
lbs/hr
1309
9 0 20 0 600 0
HP
Steam
M
lbs/hr
1309
9 0 20 -1.50 -30 600 0

* Based
upon
Refinery
gas as
the
feedstock
3-8
Table 3.1 (cont)
Selected Case
Utility Summary, Continued

Unit
Vacuum
Tower Sulfuric Acid
Utility
Feed
Rate
Consumption
per barrel
Total
Consumption
Feed
Rate
Consumption per
ton
Total
Consumption
tpd
Power KW 51000 0.029 1479 344 2.1 722
Fuel Gas
MM
BTU/hr 51000 0.002122 108 344 0
Low BTU
Gas
MM
BTU/hr 51000 0 344 0
Cooling
Water gpm 51000 0.075 3825 344 3.14 1080
Boiler
Feed
Water gpm 51000 0 344 262
LP Steam
M
lbs/hr 51000 0.0002 10.2 344 0
MP
Steam
M
lbs/hr 51000 0 344 0
HP Steam
M
lbs/hr 51000 0.0000173 0.8823 344 -0.2 -69
3-9
Table 3- 2 Utility Usage Selected Case

Table 3.2
Utility Usage
Refinery
Total
Consumption
Refinery
Requirement

From
Steam
From
Low
BTU
Gas
From
Refinery
Gas
Amount
Produced
Net Required
MM BTU/hr KW
MM
BTU/hr
MM
BTU/hr MM BTU/hr
Power KW 41101 0 315 95
Fuel Gas
MM
BTU/hr 880 377 -484 -396 773 0
Natural Gas 23 23
Low BTU Gas MMBTU/hr 484 1228 169
Cooling Water gpm 42623 42623
Boiler Feed
Water gpm 1011 1011
LP Steam M#/hr -428 400 -28
MP Steam M#/hr 75 -75 0
HP Steam M#/hr 500 -500 0
3-10
Table 3- 3 Net Refinery Consumptions
Table 3.3
Net Refinery Consumptions

Power 0 KW
Fuel Gas 23 MM BTU/hr
Low BTU Gas 0 MM BTU/hr
Cooling Water 42623 GPM
3-11
3.2 Sea Water Cooling
3.2.1 Cooling Water
The total amount of cooling water required for the expanded refinery is nominally
50,000 gpm
The cooling water system currently utilizes water from Talara Bay. The suction is
on the south side of the product loading dock. In Talara Bay, the water
temperature can reach 82
o
F during the summer. This is a relatively high
temperature, compared to the Pacific Ocean temperature, which is typically 62
o
F
in the summer. The seawater cooling pumps discharge into a common header that
feeds five 20 inch seawater lines to the plant. Four pumps are normally in
operation, with one on standby. During the summer, cooling water pumps have a
problem with taking in sand. This is caused by seasonal changes in currents within
Talara Bay.
The Bay is only 10 to 11 meters deep at the seawater intake. The pumps are
located within the natural channel in Talara Bay. The intake suction screens have
openings in excess of 50mm. They are currently encrusted with barnacles. As the
screens age, they are becoming more corroded. The pumps current location is
too close to the shore and bottom of the bay to accommodate the necessary
physically larger size, finer mesh screens. As an interim solution, it is
recommended that the pumps be moved to the existing mooring dolphin located
northeast of the existing loading dock. However, this will not provide cooler water
and will not solve the problem of the shallow bottom which will not provide
adequate area to reduce the inlet velocity for the new units to 0.5 ft/sec with
smaller 5 mm, screen openings. A seasonal problem in the Talara Bay and Pacific
Ocean are the Medusa (adult jelly fish) that will plug up seawater intakes. To
overcome this seasonal problem a Medusa guard shall be installed around the
seawater intake.
The best solution is to provide a deep sea intake system installed deep on the
Pacific Ocean floor. This will provide cooler water, year round, as well as provide
the increased flow rate and cooling duty requirements of the new units. Additional
3-12
distribution lines will be required to get the increased flow of water to the
consuming locations. PETROPERU has operated a similar system in the past with
no operating problems.
A Pacific Ocean cooling water design will provide an intake approximately 18
meters deep in the ocean. This water will travel through a concrete weighted line
to a sump, where 3 or more cooling water pumps and 2 diesel powered fire water
pumps will be located. This cooling water system will be sized to provide all of the
cooling water needed by the refinery. The seawater will need to be chlorinated to
a low residual chlorine in order to control marine growth in the cooling water
system.
The use of the Pacific Ocean as a source for seawater cooling will provide lower
summer time water temperatures.
Additionally, with the low velocity intake design (0.5 ft/sec max velocity, with 5 mm
screen openings), problems with mobile marine life will be minimized. This problem
is currently being experienced at the refinery, with the existing system.
The warm seawater currently is commingled with other waste water streams, and
treated before it is discharged into the Pacific Ocean. It currently flows through a
CPI Separator and an API separator to remove any oil that is accumulated from
the tank farm, process units, and leaks. This system is not working well at the
present time and the additional loading from the expansion would make it
impossible to discharge water that meets the requirements all the time.
An improved system would segregate the various water streams. If deemed
desirable, some of the warm seawater used as cooling water could be exchanged
within a secondary closed cooling loop to eliminate any possibility of hydrocarbon
contamination. Some of the warm discharge from these coolers can be routed to
the desalination unit to improve desalination efficiency.
Oil residue from the desalter wash water will be a source of oil contamination in the
outfall caused by the increased capacity. Oil/water separation should be designed
3-13
to remove most of the oil from the desalter using the existing CPI separator
followed by a centrifugal separator that will remove oil down to about 10 ppm or
less. This will be followed by a DAF (Dissolved Air Flotation) unit or oil absorbing
clay bed to assure that the wastewater stream is below 10 ppm oil & grease at all
times.
The exact methods to be used and ocean sensitivities will be assessed during the
preparation of the Environmental Impact Assessment.
At this time, no bathymetric study is available at the Talara site detailing
subsurface topography. Also, unavailable is information on Talara Pacific Ocean
tides, currents, water temperature and seasonal variations. This information will
assist in determining the length and location of the seawater intake line. For the
purpose of this estimate, it is assumed that the line will extend about 300 meters to
the seawater intake structure and the intake sump will be located on land,
approximately 100 meters from the shore line.
3.2.1.1 Seawater/Waste Water Discharge:
The seawater discharge is currently using three outfalls. The outfalls are at an
elevation between high and low tides. According to environmental regulations, a
discharge line must be buried and the discharge must extend far enough beyond
the beach to eliminate beach impact.
Currently, the wastewater discharge is a combined flow between the API and CPI
Separators. The API and CPI Separators emit a hydrocarbon odor indicating
excessive hydrocarbon discharge to the atmosphere. The existing oil/water
separators are not covered which is considered unacceptable by normal good
environmental design practices. The open discharge on the beach has left
remnants of dark oil stains on the sand. Additionally, the main outfall emits a
hydrocarbon odor as it discharges. This smell suggests that the free oil and grease
in the discharge is over the regulatory limit.
3-14
The most stringent applicable wastewater effluent regulation is from the World
Bank. It requires that the wastewater system must produce discharge water does
not exceed a maximum 10 ppm free oil and grease.
The seawater discharge needs to be located to not mix with the intake water and to
discharge the water using a disperser to maintain a temperature not to exceed
2.5C at the edge of the mixing zone which will be 100 meters or less from the
discharge pipe. If seawater from the Pacific Ocean is used this should not be a
problem with a reasonable temperature rise of 10 to 15C for the cooling water. If
the source of cooling water is from Talara Bay it will start out up to 20C warmer
than the Pacific Ocean and would be expensive to build a dispersion device that
would handle the expected temperature rise up to 35C.
3.2.1.2 Seawater Cooling Pump
The source of cooling water will come from the Pacific Ocean. The Pacific Ocean
cooling water will come from an intake system approximately 18 meters deep in
the ocean. This water will travel through a concrete weighted line to a sump,
where there will be at least 3 cooling water pumps, including a spare. The cooling
water will be pumped to the refinery to handle all cooling water needs.
The RO plant needs to be fed with the warmest, oil free saltwater feed stream
possible. Some of the seawater used as cooling water could be either heated using
plate exchangers in a secondary closed cooling loop or by using all titanium tubes
in the shell and tube heat exchangers, eliminating the possibility of any
hydrocarbon contamination. As an alternative, warm sea water return could be
routed to the desalination unit. In the desalination unit, desalinated water will be
sent to process water system, while the discharged brine will be routed back to the
clean seawater discharge line.
The use of the Pacific Ocean instead of Talara Bay as the source for seawater
cooling will provide water with a lower summer time temperature and less marine
life than is currently being used in the refinery. The seawater will still need to be
treated with chlorine using either conventional chlorination methods or advanced
3-15
methods that use low level chlorination to only control marine growth in the cooling
water system.
The seawater circulation pumps will be specified in the detailed design phase. The
wet end parts must be made of a material resistant to seawater corrosion, such as
nickel aluminum bronze. Motors and electrical supply must be capable of
withstanding a marine environment including the effects of any storm surge.
3.2.1.3 Desalinated Water
The desalinated water for the plant is provided from a Reverse Osmosis plant
operated by Pridesa, S.A., a Spanish company. This plant will need to be at least
doubled in capacity to provide sufficient desalinated water for the expanded and
modernized refinery. A supply of about 1800 gpm will be necessary to supply the
boiler feed water and the water to the desalter. Additional uses, such as potable
water will be in addition to this basic requirement.
In the current system, the feedwater to the desalination unit comes from the
refinery seawater cooling system. It is filtered through four stages of filtration prior
to going to the RO membranes. The plant operates at 64 bars (~900psig) using
FRP housings, SS inlet piping and PVC discharge piping. The plant currently
produces 2,200 m
3
/day (403gpm) of desalinated water, 1,500 m
3
/day (275 gpm) of
industrial water at 5ppm Total Dissolved Solids (TDS), and 700 m
3
/day (128 gpm)
of raw water at 200 300 ppm TDS.
The expanded RO plant will receive warmed sea water from the sea water cooling
system. This is desirable, because the higher temperature water can be more
effectively desalinated.
The current RO building was designed to be doubled in capacity within the same
building. The facility has power recovery turbines for improving the internal power
efficiency of the plant.
The reject brine from the RO plant will be mixed with the warmed sea water, and
will be returned to the Pacific Ocean.
3-16
3.2.1.4 Deionized Water for Boiler Feed
The desalinated water from the RO plant requires deionization prior to using as
boiler feed water. Generally, boilers operating above 600 psi require deionized
water. Since the expanded boiler will operate at pressures up to 1200 psi,
deionization is required.
Electrodeionization (EDI) technology should be considered for treatment of RO
effluent prior to introduction to the boilers. This is particularly promising for the
purest desalinated water stream from the RO plant. Bed regeneration is by electric
field. No chemicals are involved, but it is limited to less contaminated feeds.
An alternative to EDI technology is the older mixed bed deionization technology.
This technology will work, but has the disadvantage of requiring alternate
regeneration with caustic solution and sulfuric acid. These liquids have to be
disposed of and will require neutralization prior to discharge.
3.2.1.5 Desalter Wash Water
Desalter Effluent Oil residue from the desalter wash water is a source of oil
contamination in the outfall. Consider installation of centrifuges and corrugated
plate interceptors, (CPI) separators, to remove this residual oil prior to returning to
the warm seawater return line. Also either a DAF unit or oil absorbing clay should
be used to assure that the discharge is less than 10 ppm oil & grease
3.2.1.6 Boiler Feed Water
The modernized refinery will require much larger flows of boiler feed water, due to
the increased steam generation. This water will be required for the boilers fired
with Flexigas to produce the steam used for refinery operation. In addition, the
refinery will have a great deal of waste heat recovered as steam in economizers.
This boiler feed water will need to be treated, deaerated, and pumped up to the
boiler pressure.
3-17
3.2.1.7 Boiler Feed Water Pump
The boiler feedwater pumps provide the flow of boiler feedwater from the deaerator
storage tank to the inlet of the economizer. The pumps supply the pressure
necessary to overcome the friction losses in high pressure feedwater heaters,
piping, and the required pressure for the inlet of the boiler @ boiler relief valve
settings. The pumps will be able to supply 133% of the boiler flow, including
blowdown at relief valve setting in order to accommodate a relief situation on the
boiler. A spare pump will be provided.
The boilers will be equipped with three 66% pumps, including one installed spare.
Normally, at full steaming rates, two pumps will be operating at all times. At
steaming rates of 50% capacity or less, only one boiler feed pump will operate.
3.2.2 Steam
Currently, the refinery produces steam in a CO boiler, package boilers, and
economizers in the stacks of fired heaters.
In a CO boiler, a low BTU heating value gas, such as FCC off-gas or Flexigas, is
admitted into a fire box along with combustion air. The fire box is maintained at
about 985C. The temperature in the fire box is controlled by the fuel and air flow.
The boiler is started up using natural gas as fuel to get the fire box up to operating
temperature. Once the fire box is up to temperature the low heat value fuel is
introduced into the fire box. An advantage of a CO Boiler is that it has a large
turndown ratio, and will operate at less than 100% of design without problems.
CO Boilers are normally package boilers limited to about 300,000 lb/hr of steam
each. This can be overcome by using multiple units. Additionally, the low heat
value fuel gas can be blended with refinery off gas and used in existing process
heaters. Since this fuel is low sulfur fuel, SOx control is not required for
combustion. Since low BTU gases burn with a lower flame temperature, low NOx
burners will probably not be necessary.
3-18
The steam that is generated by this boiler is at 600 psi and super heated. This
steam can be let down to plant steam pressures in one or more extraction turbines
to generate electric power. .
The refinery convention for steam pressure is as follows:
x 600 psi steam is designated high pressure.
x 450 psi steam is designated medium pressure
x 150 psi steam is designated low pressure
x The expanded and modernized refinery will both generate and consume steam.
In the Selected Case,
The refinery will consume medium pressure steam and of high pressure steam. This
steam will be produced from low BTU gas in a CO boiler. Boilers will be required for start
up.
3.2.3 Deaerator
The purpose of the deaerator is to remove dissolved gases (N
2
, O
2
, NH
3
, CO
2
, etc.)
from boiler feedwater and to provide adequate net positive suction head for the
boiler feedwater pumps. Incoming water flows through hydraulically-balanced,
self-adjusting spray valves and enters the condensing chamber that is filled with
steam. The steam strips the non-condensable gases from the feed
water/condensate feed. The noncondensable gases exit the system through the
deaerator vent(s). Then the water cascades through counter flowing steam and is
heated to the saturation temperature of the steam. The deaerated water gravity
flows to the deaerator storage tank as boiler feedwater.
According to industry standards, the deaerator operating pressure is based on the
required head needed for the suction of the boiler feedwater pumps, which also
dictates the deaerator operating temperature. The typical industry practice is a
residence time of 5 10 minutes in the deaerator storage tank. This residence
time determines the size of the storage tank. In a typical deaerator the O
2
content
3-19
will be reduced to less than 0.005 cc/L and the CO
2
to zero, both of which are
industry standards.
3.2.4 Electric Power
The refinery currently uses about 8 MW of power. With the expansion, the
demand for power will increase. The current electrical substation cannot handle
additional power. Neither can the electrical system within the plant.
Energy failures occur twice per year from EEPSA and once per month from the
Talara internal distribution system. These outages are very disruptive to refinery
operations and will be addressed with the modernization.
Electric Power is currently being supplied by EEPSA from Malacca. There are two
33 kV circuits running 6 km from Malacca to the Talara substation. The 33 kV is
transformed to 2.4 kV for power distribution to the refinery, where the power
consumption is 7,300 kW.
Electric power for the refinery will be supplied by gas turbines fired with refinery
fuel gas and natural gas and will be independent of the local power grid.
3.2.5 Gas Turbine Generator
A gas turbine generator spins a turbine by burning a gas, like refinery gas or
natural gas. This turbine, in turn, drives a generator, generating electricity. The
waste heat from the gas turbine is recovered as steam. The steam is used to drive
supply process steam, as described in the previous section. These units are called
Heat Recovery Steam Generators (HRSGs).
The major advantage of HRSGs is that they recover additional energy from the fuel
used to run the gas turbine, and therefore are more thermally efficient. The major
disadvantage is that they require semi annual regular maintenance. Routine
3-20
maintenance is probably available in Talara, but major repairs and overhauls will
need to be shipped to a repair shop which is probably available in Lima.
Operationally, without a grid back up, they are subject to going off line at any time.
If spare capacity is not operating and capable of handling 100% of the load at that
time, all operating units will go off line. This requires operating the gas turbines at
less than 66% of full load. 100% of full load is the most efficient operating point for
a gas turbine with efficiency reductions as the load decreases. The efficiency and
power availability from a gas turbine is dependent on the ambient temperature,
which will make balancing the load to the gas turbines a little more complicated.
3.2.6 Fuel Gas
For the Selected Case, the modernized and expanded refinery will require 1920
MM BTU/hr in fuel, including the fuel gas used to generate hydrogen and electric
power. The refinery gas will provide 850 MM BTU/hr in refinery gas, including
excess butane that is included in the fuel gas. The Flexicoker will provide and
additional 1099 MM BTU/hr of low BTU gas. An additional 10 MM BTU/hr of
natural gas will need to be purchased.
Natural Gas: The refinery is currently buying natural gas to fire the heaters and
boilers within the refinery. This is a large expense for them, and they want to
minimize this expense.
The reconfigured refinery will produce both refinery gas from the Flexicoker, the
FCC, and the various new hydroprocessing units.
The Flexicoker will also produce a large quantity of low BTU gas that can be
utilized within the refinery as a source of fuel.
Refinery Gas: This gas is produced by the FCC, the Flexicoker, and the
hydrodesulfurizers. It also includes the excess butane that cannot be blended into
the LPG product. If any butane is necessary to adjust the RVP of the gasoline
product, it will be taken from this stream.
3-21
Low BTU Gas: This gas only has a heat content of 130 BTU/scf this gas produced
from the Flexicoker, and is in the FCC off-gas. This gas can be burned in fired
heaters using special burners. It can also be burned in a CO boiler.
The technology selected for hydrogen production is steam methane reforming.
Haldor Topsoe has extensive experience in this technology, which can also be
extended to produce methanol. Their technology is capable of using natural gas,
refinery gas, butane, or light naphtha as a feedstock, giving the refinery flexibility in
their operation. For these reasons, the Haldor Topsoe technology was used for
the optimum case. The unit will consume refinery fuel gas or naphtha as a
hydrocarbon feed.
Flexigas is unsuitable as a source of hydrocarbon feedstock for hydrogen
production. The Flexigas used from the Flexicoker will be used as a source of fuel
gas, not process feed gas, in the hydrogen plant. The unit will consume flexigas
mixed with refinery fuel gas as fuel gas.
Other steam methane reforming technologies are in use. None have the
widespread use of Haldor Topsoe technology.
Sketches showing the flows in this unit are given in Figures 3A & 3B.
3-22
Figure 3 A
3-23
Figure 3 B
3-24
3.2.8 Instrument Air
The instrument air system is inadequate to handle the new units added during the
modernization. For the expanded refinery, the system pressure should be
increased to 125 150 psig. The current system operates at 50 psig.
The oiled compressors currently in operation should be replaced with oil free
compressors. The current air dryers are Pressure Swing Adsorption (PSA) dryers.
The existing surge drums have an unknown pressure rating, which means they
may or may not be capable of holding the higher pressure. It is recommended that
the existing surge drums be replaced with new ones. The new surge drums will be
placed both before and after the air dryers. This ensures that when a compressor
goes down, the refinery will still have a supply of instrument air until another
compressor is brought online.
3.2.9 Nitrogen Plant
A Pressure Swing Adsorption nitrogen plant (PSA) is recommended for purging
equipment of air prior to putting any hydrocarbons in it. The nitrogen gas is
produced from atmospheric air by molecular sieve adsorption. This process uses
a carbon based molecular sieve that preferentially removes oxygen from air.
Nitrogen is needed to inert vessels prior to introducing hydrocarbons, back up the
instrument air system, and provide tank blanketing to keep the products dry.
3.2.10 Calculations
The utility balance was given in the attached Table 3.1, as presented in Section
3.1.
The BTU availability was given in Table 3.2 was multiplied by .00029 for
conversion into KW. The KW was multiplied by .35 to account for the inefficiencies
in the steam system, and then divided by 1000 to convert to MW.
3-25
3.3 Conceptual Process Flow
x Figure 3.2 shows the cooling water system and the flow from it to and from the
Water Desalination Plant.
x Figure 3.3 shows the Fuel Gas System, including the refinery gas, natural gas,
FCC vent gas, and the Flexigas.
x Figure 3.4 shows the Steam system.
x Figure 3.5 shows the electrical system
x Figure 3.6 shows the flow of fuel gas, steam, and power to and from the
expanded and modernized refinery, and how they are inter-related.
3-26
Figure 3- 1 Cooling Water System
3-27
Figure 3- 2 Fuel Gas System
3-28
Figure 3- 3 Steam System
3-29
Figure 3- 4 Electrical System
3-30
Figure 3- 5 Flow of Fuel Gas, Steam and Power to and from Plant Needs updated
3-31
3.4 Diagrams and Descriptions of Conceptual Processes
See the diagrams 3A through 3.6 in Section 3.2.
3.5 Unit Chemical Consumptions
See Table 2.8.
3.6 Liquid Effluent and Gas Emissions
These emissions are covered in the environmental section of the report
3.7 Technical Reasons for Discarding Options
The Circulating Fluidized Bed Boiler (CFB) was included as an option to burn
petroleum coke to make steam and power this unit is designed to burn coal which
is higher ash and it requires the addition of sand to replace the coal ash. Further
to partially replace coal ash and mainly control the SOx emissions limestone is
added along with the coke to the fire box. The CFB boiler requires about three
times the stoichiometric amount of limestone to operate properly when using
petroleum coke. This option was discarded since all the limestone would have to
be shipped into the site for distant sources. The CFB boiler was also higher capital
cost than the Fluidized Bed Boiler (FBB).
The Fluidized Bed Boiler (FBB) was a better lower cost option than the CFB and
only requires the stoichiometric amount of limestone to operate properly with a little
sand. This option was discarded when the decision was made to use a flexicoker
and ship the resulting coke to a cement plant for fuel.
3.8 Investment
The total investment for the utilities in the selected case was given in Table 3.3.
3-32
3.9 Labor Requirements
It is estimated that the utility system will require three inside and two outside
operators. The system will require one supervisor and one engineer, although
these people may be shared with other refinery functions, such as truck loading.
3.10 Implementation Plan
The plan will be implemented by constructing and starting up a new system, and
then shutting down the old system.
The sea water cooling system will be started up before the old one is shut down.
In this start up, the flow to and from the desalination plant will be established. The
warm sea water will be segregated from other effluents, and the brine from the RO
plant will be mixed with the warm sea water effluent before the existing unit is shut
down.
The start up of the Desalination plant will be done by Pridesa.
The Boiler Feed Water will be treated, as necessary, and deaerated prior to start
up. This system will need to be started up and functioning before the boiler start
up is attempted. The existing treatment system may or may not be adequate for
the expanded refinery.
The new refinery will have new boilers for the generation of high pressure steam.
These boilers will be used in conjunction with the existing CO boiler. The existing
package boilers in the refinery will be shut down and possibly removed when the
new boilers are brought on line.
The expanded refinery will require a new substation and power lines. Upgrades
should be designed to handle both the increased startup power requirements. The
existing electrical system is limited by both voltage and capacity. The electrical
upgrades must be installed prior to the startup of the expanded refinery.
3-33
Fuel gas will be needed to start up the plant. After start up, the refinery will
generate large amounts of both refinery gas and Flexigas that will be used to fuel
the refinery and to make hydrogen. The refinery will need to purchase some
natural gas. Any Flexigas that is not consumed will be converted to coke by not
generating as much flexigas.
The hydrogen plant will need to be on line and running prior to starting up any of
the hydrogen consuming units, such as a hydrocracker, if included, or
hydrodesulfurizers. The hydrogen plant will be started up on natural gas, and then
converted to refinery gas (as a raw material) and Flexigas (as a burner fuel). The
hydrogen plant will only produce hydrogen as needed to run the refinery, and will
supplement the reformer hydrogen.
The nitrogen plant must be online before any of the hydrocarbon processing units
are started up. This is because the vessels in the refinery will need to be purged
with nitrogen, and oxygen-free prior to start up.
4-1
Table of Contents
4 Control and Instrumentation....................................................................................... 2
4.1 Introduction........................................................................................................ 2
4.2 Standards and Codes........................................................................................ 3
4.3 Existing Systems ............................................................................................... 3
4.3.1 Crude Distillation ........................................................................................... 3
4.3.2 FCC............................................................................................................... 3
4.3.3 Utilities........................................................................................................... 4
4.3.4 Product Storage and Transfer ....................................................................... 4
4.3.5 Fire Water System......................................................................................... 4
4.3.6 Product Loading Terminal ............................................................................. 5
4.3.7 Ballast Water Treatment................................................................................ 5
4.3.8 Electrical Substations .................................................................................... 5
4.3.9 Oil Separators................................................................................................ 5
4.4 Proposed Integrated Control System................................................................ 5
4.4.1 Overview........................................................................................................ 6
4.4.2 Distributed Control Systems.......................................................................... 8
4.4.3 SIS System.................................................................................................... 9
4.4.4 Oil Movements & Storage............................................................................ 11
4.4.5 Asset Management...................................................................................... 12
4.4.6 Advanced Process Controls ........................................................................ 12
4.4.7 Closed Circuit Television System................................................................ 12
4.4.8 Paging System............................................................................................ 13
4.4.9 Fire and Gas Detection System................................................................... 14
4.4.10 Instrumentation........................................................................................ 15
4.4.11 Remote Instrument Enclosures ............................................................... 15
4.4.12 Analyzer Systems.................................................................................... 16
4.4.13 Continuous Emissions Monitoring ........................................................... 16
4.4.14 Custody Transfer Meeting ....................................................................... 17
4.4.15 Communications Infrastructure................................................................ 17
4.5 Project Execution & Project Schedule............................................................. 18
4.5.1 Main Automation Contractor........................................................................ 18
4.5.2 Modernization Front End Engineering & Design ......................................... 19
4.5.3 Detail Engineering....................................................................................... 20
4.5.4 Testing......................................................................................................... 21
4.5.5 Factory Acceptance Test............................................................................. 22
4.5.6 Integrated Factory Acceptance Test............................................................ 22
4.5.7 Site Acceptance Test................................................................................... 22
4.5.8 Loop Check ................................................................................................. 23
4.6 Installation ....................................................................................................... 23
4.7 Options & Recommendations.......................................................................... 23
4.7.1 Engineering Productivity Tools.................................................................... 23
4.7.2 Vendor Pre-Selection .................................................................................. 24
4.7.3 Analyzer Networks/Remote Access ............................................................ 24
4.7.4 Continuous Emission Monitoring Systems .................................................. 24
4.7.5 Product Tank Gauging................................................................................. 24
4.7.6 Central Control Room.................................................................................. 25
4-2
4 Control and Instrumentation
4.1 Introduction
The intent of this chapter is to describe at a high level the scope of work and the
functionality that is expected from the new control systems that are part of the
overall modernization and expansion of the Talara Refinery Complex.
At a conceptual level the scope of work includes the instrumentation and controls
associated with the new process units and the modernization of the retained and
the modified process units.
The overall philosophy for the execution of the control systems is to have as
many of the systems as possible installed into pre-fabricated
enclosures/buildings to allow for a fully integrated test of the largest part of the
systems prior to shipment to site. This will provide a significant reduction in the
duration and resources required on site for the equipment installation and site
acceptance testing.
Because none of the technology suppliers have been selected and contracted
with by PETROPERU detailed information as to the equipment required any
more than a general I/O count and number of analyzers is not available at this
time. However, the I/O count and number of analyzers will provide adequate
information to estimate the cost of the instrumentation. The details on what
instrumentation is required and what analyzers are required will be available
during the FEED and detailed engineering phase of the project.
An equipment list during the feasibility phase of the project would be only an
estimate to what is required since selected technology vendors al have a
different listing of what equipment is required to make their technology work
properly. The detailed information needed to generate an equipment list is not
available during the feasibility study and will only be partially available during the
FEED study. A detailed equipment list will be generated during detailed design
when all the technology suppliers are contracted to supply all the details of their
technologies to the detailed design contractor.
4-3
4.2 Standards and Codes
x IEC 61508 Part 1 - 7: Functional safety of E/E/PES safety-related
system
x ISA 5.1 1984 Instrumentation Symbols and Identification
x ISA 5.3 1983 Graphic Symbols for Distributed Control/Shared Display
x Instrumentation, Logic, and Computer Systems
x ISA 5.4 1991 Instrument Loop Diagrams
x NEC 2008 National Electrical Code
x NFPA 72 National Fire Protection Association
4.3 Existing Systems
Control system details on the retained and modified units are provided below.
4.3.1 Crude Distillation
The Crude Unit currently has Siemens DCS and APACS SIS and uses HART
field instruments although the instruments are operating as conventional 4-20mA
devices. Modification will be associated with the changes to the process; the
incorporation of the DCS/SIS into the refinery wide architecture and the
integration of the HART data.
4.3.2 FCC
The FCC unit is currently 80% pneumatic with stand alone controllers. Some
electronic sub-systems are present and these include controls for the
hydraulically actuated valves, electronic governors on the blowers, and multipoint
temperature indicators. The Waste Water Treatment plant associated with this
unit has hybrid PLC system. All the instrumentation and controls will be replaced
with new HART instrumentation integrated into a new DCS and SIS System. This
will also be integrated into the refinery wide system.
4-4
4.3.3 Utilities
The Utility Plant has a separate control room and is currently 95% pneumatic
with panel controllers.
x The two boilers both have pneumatic controls with a stand alone
electronic burner management system.
x The Instrument/Plant Air controls are completely pneumatic.
x The de-mineralization is currently operated though an obsolete electronic
sequence controller.
All the instrumentation and controls will be replaced with new HART
instrumentation integrated into a new DCS and SIS System. This will also be
integrated into the refinery wide system.
4.3.4 Product Storage and Transfer
PLC systems are currently installed for both the hydrocarbon and LPG custody
transfer. These systems are obsolete and will require replacement and
integration into the refinery wide system.
4.3.5 Fire Water System
The complex has two fire water pumping stations, the salt water system has
some data being passed to the Jetty Loading Control SCADA system while the
fresh water system has a stand alone PLC that communicates to the Fire Station.
There is no coordination between the two systems. These systems are obsolete
and will require replacement. The integration will include coordination of the
control of the two systems; the ability to monitor and control from the main
Control Building and the Fire Station; and integration into the refinery wide
system. It is envisioned that the seawater fire water pumps will be relocated from
the dock to the seawater intake sump to prevent sanding up and will be upgraded
to all vertical lift diesel driven pumps. The fresh water system will be replaced
4-5
with an on site fresh firewater tank and new electric and diesel driven pumps. All
the fire water pumps will be controlled from the main control room.
4.3.6 Product Loading Terminal
The Product Loading Terminal is controlled by an Allen Bradley PLC 1990s
vintage. This system is obsolete and will require replacement and integration into
the refinery wide system.
4.3.7 Ballast Water Treatment
The Ballast Water Treatment is controlled by an Allen Bradley PLC 1990s
vintage which communicates to the Product Loading Terminal PLC via DH+. This
system is obsolete and will be retired when the ballast water treatment system is
retired since ballast water will not be present when the refinery expansion is
started.
4.3.8 Electrical Substations
The main sub-station has a PC based monitoring system that utilizes relays
connected via Modbus. This system is obsolete as is the main sub-station which
will be replaced to a higher voltage and larger capacity system. The controls
from the new main sub-station will be integrated into the refinery wide system
and will be controlled from the main control room.
4.3.9 Oil Separators
The Oil Separators are in part on/off control and in part manual. This system is
obsolete and will be demolished and modified along with the demolition and
upgrading of the oil/water treatment system. The new segregated wastewater
treatment system will all be controlled not only locally but will interface back to
the main control room with all monitoring and on line quality control available and
alarmed at the central control room.
4.4 Proposed Integrated Control System
4-6
4.4.1 Overview
The control systems shall comprise of the following major systems:
x Distributed Control System (DCS)
x Safety Instrumented System (SIS)
The primary operator interface shall be through the DCS Graphics. These
graphics shall be Abnormal Situation Management (ASM) compliant.
The DCS and SIS systems will be tightly integrated with the SIS system(s) being
time synchronized to maintain data event time stamping integrity in the data
historian. This integration shall include standard SIS status details being
displayed graphically on the DCS Consoles.
In addition the following sub-systems shall be provided and these will
communicate to, and be integrated with the DCS:
x Fire and Gas Detection (F&G)
x Continuous Emissions Monitoring (CEMS)
x Custody Transfer Metering
x Analyzers
The preferred method for communication between the sub-systems and the DCS
will be through OPC. Should an OPC interface be unavailable then Modbus will
be an acceptable alternative.
For interfacing to the existing equipment sub-systems (i.e. turbine controls, Jetty
SCADA system, etc) the preferred method will be via OPC if this option is
available, with Modbus being an acceptable alternative. If these sub-systems do
4-7
not support communication protocols then consideration should be given to their
replacement.
Within the DCS the following applications shall be provided:
x Advanced Regulatory Control
x Process Unit Optimization
x Asset Management
x Mass/Material Balance
x Oil Movements and Storage
x Pipeline Leak Detection (if applicable)
x Recording and alarm on environmental parameters
x Historization (PI)
x Alarm Management
To support the operations of the facility each unit will be provided with:
x Paging System
x Closed Circuit Television
All field instrumentation shall support HART protocol. HART data shall be
supported within the DCS system for device supervisory functions, or if this is not
supported then in a PC/Host Application shall be provided. This data shall also
be made available for future use in Asset Management and/or Maintenance
Management Systems.
4-8
4.4.2 Distributed Control Systems
The DCS shall be the state-of-the art latest technology based on an open
architecture. That is, the system shall have inherent capability to integrate and
exchange information with other sub/systems and equipment from other vendors.
The DCS system hardware and software shall be of latest version, tested
successfully and proven in similar applications and has the capability to configure
Advanced Control Functions without modifications of the supplied hardware.
The Contractor shall be responsible to prepare the detailed specification meeting
all functional requirements of the system. The Contractor shall be responsible for
total system engineering, including cabinet / console layouts, equipment
compatibility, power loading and distribution, circuit protection, wire sizing,
system grounding, and the DCS and sub-system hardware and software
requirements.
Contractor shall provide hardware, marshalling cabinets, documentation,
interconnecting cables and all project services including supply of DCS with
console mounted hardware and all other equipment and services. Contractors
supply shall include but not be limited to redundant system hardware, redundant
gateways hardware required to interface to SIS systems / Flow computers/ Asset
Management System / Alarm Management System and other foreign devices,
workstations, Hardwired console with annunciator, pushbuttons, selector
switches, indication lamps, and printers with printer pedestals, etc.
DCS hardware shall be segregated by process unit. Contractor scope shall also
include software supply and software configuration for the entire DCS system
including software for integration of the DCS & SIS systems, alarm and report
management system, primary domain controller, plant control network and color
printers, etc. The integration that is now being used as mentioned above is
more advanced and more desirable than a RTIS integration since it is time
stamped and seamless.
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Contractor shall also provide all hardware and software necessary for fiber optic
communication between the central control location and the various satellite
installations which will include the remote DCS and SIS equipment in the local
RIE buildings; Analyzer houses; CEMS systems; Metering Systems; CCTV
Systems; Third Party Package sub-systems and to the plant wide networks. This
scope of supply shall include all firewalls; routers; fiber optic cables, patch
panels, etc.
As part of the C-HAZOP study, the entire control system (DCS & SIS) and
associated systems like Tank Gauging System, Flow computing, interfaces etc.
shall be Hazoped.
The Contractor shall also be responsible for providing the following services:
x System assembly
x System staging and testing
x System operation, engineering and maintenance training
x Installed system check-out
x Loop Transfer / Hot cutover and start-up services
The Contractor shall provide a protocol for performing and shall perform a fully
integrated Factory Acceptance Test. This test shall include the interfaces to all of
the third party sub/systems.
The Contractor shall provide a recommended spare parts list and list of any
special test equipment required for the proper maintenance of the proposed
system as well as list of any special programs / options required for the above.
4.4.3 SIS System
Triple Modular Redundant (TMR) and Quadruple Modular Redundant (QMR) are
the only SIS System architectures which are acceptable. The Contractor
proposed SIS systems shall provide safeguarding functionality for various units
and associated equipment. These systems shall be TV-approved and the
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implementation shall be in accordance with IEC 61508. A SIL Study shall be
performed to determine the AK class and corresponding SIL level.
The Contractor shall perform all system hardware engineering and design;
configuration of I/O; configuration of the SIS - DCS communications;
configuration of the associated DCS applications, alarms and graphics. Key
switches shall be provided for on-line testing of the SIS system and for
maintenance by-pass functions.
Where these SIS systems are to replace existing PLC and relay systems, the
Contractor shall provide proposed execution approach for the implementation of
the required modifications with the minimum of disruption to the process plants.
The proposed execution plan shall include the operational implications; it shall be
clearly stated how the intended modifications can be implemented and tested on-
line, with minimum operator disturbance. The SIS Systems shall be configured to
perform the functions as detailed in the existing SIS System Cause & Effect
and/or Sequence Logic diagrams and/or ladder logic and/or wiring diagrams
where the process units are not being modified. The Contractor shall verify the
drawings against the actual programming/wiring, from the existing Safety
Systems. For new process units or where modifications to the existing unit
impact the SIS systems, cause and effect diagrams and associated
documentation shall be provided to the Contractor.
Each of the SIS systems shall be fully tested at the SIS System Contractor works
during the SIS System FAT. The interface and integration with the DCS shall be
fully tested during the Integrated Factory Acceptance test. Factory Acceptance
Testing (FAT) of the Systems shall include the provision of all required test
facilities, test panels, where all input- and output signals can be simulated by
switches and lamps with the corresponding I/O category characteristics,
temporary workstation to enable a complete FAT of the new hardware and
applications. During the Integrated FAT a sub-set of the I/O shall be tested to
validate and confirm the SIS integration with the DCS.
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The Contractor shall provide a recommended spare parts list and list of any
special test equipment required for the proper maintenance of the proposed
system as well as list of any special programs / options required for the above.
4.4.4 Oil Movements & Storage
The Oil Movements and Storage (OM&S) Application shall run on the selected
DCS platform. This application will optimize the planning and execution of all
aspects of the product inventories, product blending and shipment. The
application shall have functionality that will:
x Provide inventory management and reporting
x Optimize the use of tank farm storage
x Plan and schedule blending and product transfer tasks
x Manage batch production, blends and shipments
x Minimize the potential for cross contamination of products
x Provide automated path selection, isolation, line up and execution for product
movements
x Enforcement of rules to ensure compliance with operational policies and
procedures to prevent the misuse or damage to plant equipment
x Provide material balances and reconciliations
x Provide reports and receipts to enterprise systems and data historian
As part of the Inventory Management, custody transfer accuracy (+1 mm) tank
gauges (radar or servo gauges) shall ideally be installed on all product storage
tanks.
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4.4.5 Asset Management
The Asset Management system (AMS) shall be a standard product offering that
resides within the architecture of the DCS control system. The Asset
Management System receives data from field devices and transforms this data
into a format that is usable by Plant Operations and Maintenance to make
informed decisions that will allow for greater plant availability and productivity.
4.4.6 Advanced Process Controls
Advance Process Controls (APC) shall be applied to the process units to
maximize process yields; reduce production costs; ensure product quality while
automatically adjust to changing process conditions. The APC shall use Mutli-
Variable controllers and Real Time Optimization to achieve these goals.
4.4.7 Closed Circuit Television System
The CCTV system shall be a networked system of IP based cameras located at
security points and critical process areas throughout the refinery. The cameras
shall be out-door rated with dual lens allowing day and night continuous
monitoring.
Cameras shall be networked using the plant fiber optic network and Ethernet
cabling. For remote plant locations where the fiber/copper network is not
accessible digital Ethernet radios shall be considered. For hazardous locations,
cameras shall be mounted in an explosion proof enclosure with a glass window.
Dedicated computer(s) shall be located in CCR for monitoring and recording
camera activity. All video management software and recording functionality shall
be integrated in the camera. Multiple cameras shall be viewable from one
computer using a web browser.
The Contractor shall be responsible for preparing the specification to meet the
functional requirements of the CCTV system during detail engineering. Actual
camera quantities and locations shall be determined at that time.
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4.4.8 Paging System
The Paging or Multi Party communication system shall be a microprocessor
controlled freely programmable exchange. Programming shall be by means of
user-friendly menu driven software.
The Paging or Multi Party communication system shall have a processor module
for the control of the central exchange. The speech diagram and other features,
such as all call, group call, alarm call, priority call, conferencing etc., shall be
resident in the processor module as a software program which shall be re-
programmable at site using laptop PCs with user friendly menu structure. Distinct
Push buttons shall be provided for various tones and their re-setting. The central
communication system shall have built-in fault diagnostic unit using test and
monitoring modules.
Paging system shall comprise of but not limited to following:
x Microprocessor based Page/Multi party communication system
x Explosion proof / weatherproof handset station / call station suitable for
hazardous area classification
x Explosion proof / weatherproof external loud speakers suitable for
hazardous area classification
x Hand set station / call station suitable for non - classified areas for indoor
/ out door use.
x All the outdoor stations shall be housed in standard Industrial Acoustic
Booths.
x Master call station(s), interface facility with other exchanges, all call
communication facility, individual page / part / conference facility, initiate
voice page & alarms, route the voice pages & alarms, acknowledge
system status & other facilities etc.
x All ancillary mounting brackets and cabling.
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The number of central control units (central exchanges) shall be equal to the
number of Process Units, quantities of peripheral devices; handsets, loud
speakers, etc shall be determined during detail engineering.
4.4.9 Fire and Gas Detection System
The F&G system shall be certified compliant to NFPA 72 (2002). The system
shall include independent stand alone panels to support fire and gas
requirements in the various process areas. The F&G panels shall be located in
the RIE buildings or existing electrical buildings. Each panel shall include the
following:
x controller and I/O modules
x local display panel for monitoring
x power supply and battery backup per NFPA 72
x Modbus or OPC interface for DCS integration
Each panel shall have I/O capabilities to support the following field devices:
x combustible gas detectors
x H2S detectors
x fire detectors
x horns
x beacon/strobe lights
x push buttons
x fire suppression systems
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Each F&G panel shall include a factory acceptance test witnessed by the
contractor and owner at the vendors manufacturing facility.
Each F&G panel shall be available during the integrated Factory Acceptance
Test for testing with the DCS and SIS systems.
The contractor shall be responsible for specification of the F&G system during
detail engineering including:
x quantity of field devices
x location of field devices
x location of panels
x installation details
4.4.10 Instrumentation
All field transmitters and valve positioners shall support HART digital protocol.
4.4.11 Remote Instrument Enclosures
Three RIE Buildings have been included in the scope of this feasibility study to
permit the installation of the control equipment in close proximity to the process
units while having the control performed from a safe location outside of the
process areas. The current DCS control room can be used as one of the RIE
buildings.
The RIE will contain DCS equipment cabinets; SIS equipment cabinets; Third
Party Sub-system equipment and cabinets; and the associated communications
infrastructure. The RIEs shall also contain an Uninterruptible Power System,
sized to be able support the equipment within the building for a period of 20
minutes in the event of a power failure. The building shall be pressurized and
have redundant HVAC and include fire detection and suppression. Current
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estimate is for each building to be 14 wide by 40 long and 13 heigh; these
dimensions are to be confirmed during detail engineering.
Each of the RIE buildings will contain the control equipment for multiple process
units; with the equipment for each process unit being physically segregated. All
the system cabling and marshalling wiring within the building will have been
completed and tested with the Central Control Room equipment and other sub-
systems prior to release for shipment to site. When details are available a
specific proposal can be requested from ENGlobal Systems group.
4.4.12 Analyzer Systems
Analyzers shall be provided as packaged systems that include the analyzers
installed in pre-fabricated shelters that are complete with all sample; drain; vent;
carrier gas and purge systems necessary for the operation of the individual
analyzers. In addition all sample probes and/or sample systems shall also be part
of the scope of supply. For the basis of this estimate we have assumed that there
will be five analyzer shelters, each with six analyzers.
4.4.13 Continuous Emissions Monitoring
The CEMs analyzers shall be provided to monitor SO2, NOx, O2, CO, CO2 and
Opacity. These shall be provided as packaged systems that include the CEMs
controller and analyzers installed in pre-fabricated shelters that are complete with
all sample; drain; vent; carrier gas and purge systems necessary for the
operation of the individual analyzers. In addition all sample probes and/or sample
systems shall also be part of the scope of supply. For the basis of this estimate
we have assumed that there will be ten analyzer shelters, each with three
analyzers.
The CEMs controller shall communicate and pass data to the DCS through an
OPC interface.
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4.4.14 Custody Transfer Meeting
It has been assumed for the purpose of this feasibility study that custody transfer
metering will be required for the following produce streams;
x Crude
x LPG
x Gasoline Low Octane
x Gasoline - Medium Octane
x Gasoline - High octane
x Jet Fuel
x Diesel
x Fuel Oil
x Sulfuric Acid
x Water
Two meters will be provided for each product stream; these shall be non-intrusive
Coriolis multivariable flow and density transmitters.
4.4.15 Communications Infrastructure
The existing fiber optic cable network shall be used or expanded to support the
new process areas and central control building. The new process areas shall be
linked back to the central control room via redundant fiber optic cable runs. The
fiber optic cable shall be outdoor armored rated cable. The number of strands per
cable shall be specified to support the new control system topology. Separate
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cable routes for the redundant fiber runs are preferred to provide system
integrity.
For remote plant locations where the fiber/copper network is not accessible
digital radios shall be considered. The preference is to hardwire all plant control
and system interfaces where possible.
The contractor shall be responsible for specification of the plants fiber optic and
communication requirements during detail engineering.
For estimating purposes fiber routing through the new process areas and existing
process areas was estimated at 10km installed.
4.5 Project Execution & Project Schedule
4.5.1 Main Automation Contractor
In essence from a control systems perspective there are two projects being
enacted at the Talara site?
i. Replacement of the existing obsolete control equipment with a modern
control system.
ii. A green field refinery expansion where new process units are being
constructed, most likely by different process licensors/EPCs in different
locations.
This adds complexity to the project execution and requires a high degree of
coordination between the project teams to ensure that the implementation of the
control systems is consistent; providing plant operators with the same look and
feel and a consistency in the engineering approaches to facilitate future
maintenance and modifications in the long term and simplifying the
implementation; pre-commissioning and commissioning activities in the short
term.
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To achieve this goal a Main Automation Contractor (MAC) should be assigned at
the inception of the project. The role of the MAC will be to establish the standards
for the design and implementation of the controls; in part these will be standards
documents and will also include the development of preferred vendors lists for
the application of specific equipment; selection and administration/management
of engineering tools; development of graphics sub-pictures and libraries;
development of standard logic blocks for standard functions; etc.
During the execution the MAC may either be directly responsible for the
implementation of the control solutions (the preferred approach) or shall be in a
position to have monitoring and oversight responsibility to ensure that all systems
are implemented to the same set of standards.
The MAC would also have responsibility for the over-arching systems that do not
fall within the process areas; this would include the plant wide networking; plant
wide applications; historization; etc.
4.5.2 Modernization Front End Engineering & Design
For the modernization of the existing units the first step will be to understand the
current controls strategies and requirements and changes/improvements that are
required. The first step in this process will be to review and fully update the
process units P&IDs to the current As Installed status; this will require full and
detailed site surveys. The next step will be to modify these P&IDs to show the
changes that are being requested and provide the new instrumentation and
controls. These modified P&IDs will have two layers, the new controls and the
equipment to be demolished in order to arrive at the final state. This will start to
form the basis for the definition of the scope.
The next step will be a review of the current site documentation in order to more
fully understand what is available; whether this has been kept up-to-date and is
in accordance with the installed state; and what will need to be reverse
engineered in order to start adding the detail to the control systems design. Give
sufficient time a comparison between the documentation and the installation
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should be performed to ensure that past modifications to the installation have
been captured in the plant documentation.
On the basis that the controls will be a replacement in kind; then surveys will be
required to collect the instrumentation data, much of this will be obtained from
existing instrument datasheets and specification documents but some will need
to be obtained by physical inspection of the control components which will
include controller tuning parameters; alarm set points; reverse engineering of
auxiliary device functions; instrument hook-ups; etc. As these details are
collected they should captured in electronic format as the basis of the Instrument
Database.
With this degree of detail having been assembled and compiled for the current
process units and their modification detailed engineering can commence.
4.5.3 Detail Engineering
With the scope of work for each of the process areas having been developed
either by the process licensor or through the FEL process on the existing units
detail engineering can now commence within the framework defined by the MAC.
This will entail the following activities:
x Development of the project schedules and execution plans
x Hazop and LOPA Studies
x Development of the overall System Architecture
x Specification of the Controls Systems components and layouts
x Development of the Instrument Database; Location Pans; Hook-Ups;
Datasheets; etc.
x Preparation of Functional and Detail Specifications
x DCS and SIS configuration
x Development of the HMI Graphics
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x Implementation of SIS Logic
x Implementation of DCS control strategies
x Preparation of procurement packages and material/equipment
procurement
x Preparation of construction work packages
x Preparation of test plans
x Closeout and transfer to site
4.5.4 Testing
Testing will be carried out at the various vendor locations (FAT) and at the overall
systems integrator (IFAT) to ensure that the control systems are tested to the
maximum extent possible prior to shipment to the site. This investment will
reduce the issues encountered at the site and reduce the time required for site
testing; loop checking; commissioning and start-up. Specifically this testing will
include:
x Factory Acceptance Test - Each sub-system at the vendors works
x Integrated Factory Acceptance Test All sub-systems as Systems
Integrator
x Site Acceptance Test A sub-set of the FAT/IFAT at the site
x Loop Check & Commissioning
For each of these tests there will be a documented test plan developed that will
follow a methodical and structured approach to performing the system tests.
There shall also be the opportunity for unstructured testing by the client.
The system vendors and the systems integrator shall have performed and
documented these tests to their own satisfaction and quality standards prior to
offering the systems for client testing. Copies of these internal test results shall
be made available for review.
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During each phase of testing punch lists of non-compliance or incompletion will
be generated and addressed. Each phase of testing will require resolution of
punch list items and customer acceptance to be deemed complete. Any
deficiencies or incomplete items shall be clearly identified along with plans for
their completion.
4.5.5 Factory Acceptance Test
This testing will be carried out at each sub-system at the vendors works and the
intent is to verify that the system has been implemented in accordance with the
documented and approved specifications and requirements. The system will be
inspected to ensure that all component parts are present, that all workmanship is
to the required standards and that all work has been completed. The tests will
include simulation of I/O points to check wiring and point parameters; graphical
displays; controller configuration; logic; historization; etc. In the case of the
Safety Systems this will require that all points are simulated in order to test
functionality of the system logic.
4.5.6 Integrated Factory Acceptance Test
This testing will be performed at the Systems Integrator and will test the overall
control system as it will be installed at the site with all system interconnection
cables (temporary) in place. The purpose of the testing is to ensure that the sub-
systems communicate; pass data and interact correctly. I/O will be simulated to
prove data transfer; communications and interactions between the sub-systems.
4.5.7 Site Acceptance Test
Once the system has been installed at the site and has been inspected;
powered-up and all the system software and configuration has been loaded and
communication between the sub-systems verified then the site acceptance test
can commence. This test will be a sub-set of the FAT and IFAT and is to ensure
that there has been no damage during shipment and that all systems are
performing as they were prior to shipment.
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4.5.8 Loop Check
With this project being partly a conversion of the existing units from pneumatic to
DCS control and partly new units/changes to existing units it is envisaged that
loop checking could be for hot and cold cut-overs, however for the purpose of
this document the assumption has been made that all loop checks will be on
cold process plants. The loop check will verify that the field installation has
been completed correctly; loops are energized and functioning correctly;
transmitter and valve calibrations are within specification; control action is
correct; alarm limits are correctly configured and that points are displayed
correctly on graphics. Once these tests are complete the loops are signed off and
ready for turn-over to operations for pre-start-up activities.
4.6 Installation
While it is anticipated that a Construction Contractor will be engaged to provide
the on-site resources to carry out the installation of the CCR console and
equipment; the RIE buildings; the Analyzer Shelters; the CEMs Systems,
specialist resources from the Controls Contractor shall be present to direct and
supervise this work.
Pre-deliver work shall include the running of the power cables to all of the
locations of the RIE buildings; the Analyzer Shelters; the CEMs Systems in order
that power may be provided for the HVAC systems to protect the equipment from
local environmental conditions. Installation of the home run cables; the grounding
and the system communications cables shall only be carried out by a qualified
contractor.
Field instrumentation shall have been installed in accordance with the project
specifications and instrument hook-up details.
4.7 Options & Recommendations
4.7.1 Engineering Productivity Tools
In order to facilitate the instrumentation and controls systems design process we
would recommend the selection of an engineering productivity tool such as SPI
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(INtools). The decision to such a tool needs to be made early in the project
lifecycle so that all design work is started in the tool making full use of the
efficiency and productivity savings that this will provide.
4.7.2 Vendor Pre-Selection
It would be our recommendation that a short list of qualified and acceptable
vendors be compiled prior to the commencement of detailed engineering and a
pre-selection process be performed to select one vendor in the major equipment
categories. This pre-selection will reduce the procurement cycle times during
project execution; enhance standardization; and provide a more consistent
implementation that will benefit the project during lifecycle support and
maintenance.
4.7.3 Analyzer Networks/Remote Access
To facilitate the maintenance and trouble shooting of the proposed analyzer
systems secure network tunneling technology should be implemented to allow
remote access, diagnostics and repair.
4.7.4 Continuous Emission Monitoring Systems
The scope of work calls for provision of CEMs Systems and this has been
included in the design basis it would be our recommendation that unless these
CEMs systems are required for permitting then the CEMs budget should be used
to reduce emissions. The CEMs estimate allows for 10 systems with a budget of
around $2.5 million. Based on gas that will be burned in the process heaters and
boilers the emissions from these units with low NOx burners should be low
enough as to not require the use of a CEMs unit. The use of CEMs will not
reduce emissions but will increase the maintenance and operating cost more
than it will benefit the environment in this situation.
4.7.5 Product Tank Gauging
The requirement to gauge product and crude tanks to 1 mm is a nice goal but if
the existing tank gauging system is reliable and will provide input to the DCS
system then the added accurately using radar tank gauging is not worth changing
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out the tank gauging system currently in place. However, radar tank gauging is
recommended for all new tank installations and for any gauging equipment that is
being replaced.
4.7.6 Central Control Room
The automated control room extinguishing system with the ban on using Halon is
not recommended since carbon dioxide systems are usually not effective and
safe for the operators. The modern control room designs do not generate the
heat and have adequate combustible material in a small space to sustain a fire.
The addition of smoke detectors will foresee a problem prior to a fire starting and
all cabinets will be temperature monitored.
5-1
Table of Contents
5 Talara Refinery General Facilities.......................................................................... 2
5.1 Description of General Facilities ................................................................... 2
5.1.1 Storage Facilities....................................................................................... 2
5.1.1.1 Tank Service Change Over ................................................................... 4
5.1.1.2 Coke Storage......................................................................................... 4
5.1.2 Roads: ....................................................................................................... 4
5.1.3 Buildings.................................................................................................... 4
5.1.3.1 Laboratory Building................................................................................ 4
5.1.3.2 Office Building ....................................................................................... 5
5.1.3.3 Control Room/DCS................................................................................ 5
5.1.4 Flare System: ............................................................................................ 6
5.1.5 Other General Facilities............................................................................. 7
5.1.5.1 Fire Water.............................................................................................. 7
5.1.5.2 Dock Facility .......................................................................................... 8
5.1.5.3 Loading and Unloading Docks in Talara Bay......................................... 9
5.1.5.4 Sanitary Sewer ...................................................................................... 9
5.1.5.5 Crane................................................................................................... 10
5.1.5.6 Fork Truck ........................................................................................... 10
5.2 Calculations for General Facilities .............................................................. 11
5.2.1 Tank Requirements Calculations............................................................. 11
5.3 Description and Flow Diagrams for General Facilities .............................. 12
5.4 Unit Chemical Consumptions ...................................................................... 12
5.5 Effluents and Emissions............................................................................... 12
5.6 Discarded Options ........................................................................................ 12
5.6.1 The Talara Refinery has adequate tankage for all of the hydrocarbon
products to be produced in the optimum case. Several tanks will be needed in
other services. However, no floating roof tanks will need to be added. ................. 12
5.6.2 The exception to this is LPG storage. To have adequate storage,
additional LPG storage will need to be added......................................................... 12
5.6.3 Using the existing control room as a plant central control room was
discarded as discussed in Chapter 6 Control and Instrumentation. The primary
reason is the safety issue in the event of a disaster the control room personnel will
not be safe in the existing control room................................................................... 12
5.6.4 Relocating the lab and office building is for safety reasons to reduce the
number of personnel at risk in the event of a refinery disaster................................ 13
5.7 Capital Expenditures for the General Facilities in Chapter 2.................... 13
5.8 Labor Required See Chapter 2.................................................................. 13
5.9 Implementation Plan ..................................................................................... 13
5.10 Plot Plan......................................................................................................... 13
5-2
5 Talara Refinery General Facilities
5.1 Description of General Facilities
5.1.1 Storage Facilities
The tank storage requirements of the new expanded refinery are based on 30
days of feed crude oil, and 15 days of finished product storage. The overall
tankage requirements were calculated, and compared to the available tankage.
In order to meet the expanded tankage requirements, an additional 81,000
barrels of LPG storage capacity need to be constructed along with new sulfuric
acid storage. Discussed below.
New 30,000 bbl fire water tank for fresh water storage.
The rest of the storage requirements can be met by changing the service of
existing tanks as follows:
x 320,000 barrels of gasoline storage tanks converted to crude oil storage.
x 30,000 barrels of jet fuel storage tanks converted to diesel fuel storage.
x 127,000 barrels of fuel oil storage tanks converted to diesel fuel storage.
x 41,000 barrels of fuel oil storage tanks converted to reduce crude storage.
This will give the refinery the following overall storage capacities:
x 2,700,000 barrels of crude oil
x 135,000 barrels of reduced crude
x 132,000 barrels of LPG
x 626,000 barrels of gasoline
x 255,000 barrels of jet fuel
x 645,000 barrels of diesel fuel
x 320,000 barrels of fuel oil
5-3
Note: Minor products, such as solvents and asphalt, were not considered, since
they already have tanks for storage, and the production of these products will not
increase.
The Talara Refinery has two tank farms, one on the hill and one at the main
refinery elevation.
The tank farm on the hill receives local Talara crude in four tanks and
international crude in two tanks. Additionally, a third tank is being converted from
a water tank into a crude tank.
The lower tank farm has 30 tanks (20 for Products & 10 for crude). The refinery
is expanding their capacity for storing both crude oil and products. Four new
tanks will be added to this tank farm for crude storage with existing projects that
are under construction. The crude oil storage will need to be able to
accommodate a 30 day supply, and the product storage would need to be able to
accommodate a 15 day capacity of each product plus 14 day capacity for sulfuric
acid storage.
Sulfuric Acid Storage requirements:
Sulfuric acid storage requirements depend upon whether the required storage is
based on 14 days of production or the amount required to load out one full
shipload.
Based upon 750 short tons a day of acid production, 14 day capacity of sulfuric
acid storage would be two tanks with a capacity of 20,000 bbl each. The amount
of sulfuric acid stored in each tank would be 5,836 tones.
The capacity of one ship for sulfuric acid is 35,000 metric tons (tones), or 50 days
production. In order to load full shiploads, the total acid storage capacity will
need to be increased to 130,000 bbls.
Since the RFQ did not ask that storage match full shipments it will be assumed
that since the storage for a full ship load of sulfuric acid is 50 days production
5-4
and it would not be reasonable to have a dedicated sulfuric acid ship it will be
assumed that it will be shipped with the other petroleum products. Shipping
sulfuric acid with hydrocarbons will require adequate safeguards to assure that
the acid never gets mixed with the hydrocarbons since this could promote a mild
exothermic reaction.
5.1.1.1Tank Service Change Over
Currently the Talara Refinery is making service changes with some of its product
tanks. They are changing their fuel oil storage tanks over to kerosene and diesel
service. With the expansion of the refinery throughput there will be more low
sulfur diesel and kerosene produced, which means that more tank storage will be
needed. The fuel oil tanks are being converted over because the market for fuel
oil in South America is declining. In the change over, the kerosene and diesel
tanks must meet a 40 ppm sulfur spec based on industry service changes
standards. The existing piping for fuel oil will be blinded off and taken out of
service, and new piping will be installed for the kerosene and diesel service.
5.1.1.2Coke Storage
The Flexicoker will produce powdered coke. This will be shipped in closed
reusable containers. Since the containers will be returnable, container storage
for two months of coke production should be provided. An area capable of
holding empty and full containers will be provided.
5.1.2 Roads:
The existing road system will need to be augmented with new roads for access.
A road will be provided on each side of the new units. In addition, road access to
new facilities as, such tanks, buildings, flare, dock, etc will be provided.
5.1.3 Buildings
5.1.3.1Laboratory Building
The new laboratory building will be built outside the process area of the refinery,
and must provide laboratory space for both the existing laboratory and the new
5-5
laboratory area required for the current and new testing to accommodate the new
units. The new lab will be a replacement of the existing lab plus meet the
demands of the expanded refinery. The new lab will provide offices for chemists,
and laboratory space for existing and new test equipment. Areas of the new lab
will be electrically classified to handle light hydrocarbons safely.
This building area is estimated to be approximately 1,200 square meters. The
actual size will be determined during detailed design. The location must be out
of the area that will be impacted from a worst case explosion. This building must
be able to protect the personnel with either distance or overpressure design or a
combination of the distance and building design to survive the worst case
explosion.
5.1.3.2Office Building
The new office building will be built outside of the process area. This building will
be a replacement for the existing office building and also provide work space for
the administrative personnel required for the expanded and modernized refinery.
It will house 75 100 administrative and management employees. The building
is estimated to provide 15 square meters per employee plus a 20% allowance for
conference rooms and other non office space for a total of about 1,900 square
meters. The actual size will be determined during detailed design based on the
needs of PetroPeru.
The location must be out of the area that will be impacted from a worst case
explosion. This building must be able to protect the personnel with either
distance or overpressure design or a combination of the distance and building
design to survive the worst case explosion.
5.1.3.3Control Room/DCS
The new control room/ DCS systems will be housed in a new control room
located a safe distance from the new and existing units. Using modern DCS
control the existing control room will be utilized as described in Chapter 6 Control
and Instrumentation.
5-6
The actual building size will be determined during detailed design based on the
needs of PetroPeru. The location must be out of the area that will be impacted
from a worst case explosion. This building must be able to protect the personnel
with either distance or overpressure design or a combination of the distance and
building design to survive the worst case explosion.
The control system and the building to house it are discussed further in Chapter
6, Control and Instrumentation.
5.1.4 Flare System:
The existing flare system may be undersized for the current operation, and it will
be undersized for the modernized and expanded refinery. This system is
continuously burning 30,000 scfd of vented gas. The refinery off gas that is
vented could be compressed and used as fuel gas. Currently, the refinery does
not have any overhead flare lines from the distillation towers. The flare system
handles all emergency relief situations from the towers. A knockout drum to
separate liquids from vapors prior to going to the flare is highly recommended.
The existing relief and flare systems need to be reevaluated based on the
increased capacity and the latest API RP-520 and 521 standards for the existing
units.
The refinery will need a new flare system to handle the new units. This system
can have a controlled compressor that will use the waste gases as refinery fuel
gas. The flare line will require a small positive pressure to exclude oxygen. This
pressure can be provided by either a nitrogen or natural gas purge. There are
several flare systems available for consideration that should be considered for
the final configuration of the refinery. The lowest cost option is used for this
estimate which is a simple pipe flare with steam assist for smokeless operation.
Based on the flare loads or requirements of Petroperu determined during detailed
design the type of flare may be more complex.
The Flare Gas Recovery System will reduce emissions from the facility. This has
value in environmental protection and public relations. This unit also reduces
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natural gas purchases, and extends the life of the flare tips. It can be integrated
into the existing flare system.
Flare sizes and types will be determined during detailed engineering.
For the purpose of this study it is assumed that the main flare has a 36 inch line.
The exact capacity and sizing will be determined during detailed design once the
relief load cases are determined and the relief valve sizing is complete.
5.1.5 Other General Facilities
5.1.5.1Fire Water
Currently the refinery is operating with fire water from the ship loading dock
facility. Fire water pumps are available on the dock, however they can sand up
when in operation. It is recommended that fire water pumps for the dock be
placed where they have a clear seawater intake. Relocate the existing diesel
pumps in Talara Bay to a deeper location and provide new diesel pumps in the
Pacific Ocean seawater intake sump to provide the necessary water capacity to
provide firewater back up for the dock and refinery.
The existing fire water system in the refinery is on a ring main, to supply fire
water to all process units if any one portion of the main is shut off. When the
refinery adds new units, there will be a need for more fire water. To address the
current and future fire water demands, a fresh water storage tank is
recommended in addition to jockey, electric, and diesel pumps being added to
the ring main. These pumps would be fed from the fresh water tank. The water
storage tank, jockey, electric, and diesel pumps will work in series. The water
tank will be the first choice of fire water supply. The jockey pump will maintain
pressure on the ring main to provide for leaks and small uses of fire water. If the
fire water needs increases, the second choice will be the electric pump(s)
supplying fresh water and the final resort will be the diesel pumps supplying
seawater.
5-8
5.1.5.2Dock Facility
The Talara Refinery has a dock facility located in Talara Bay. The dock can only
handle one ship at a time. Ships are being loaded 20 hours a day at the existing
dock. Talara Bay can also be used for barges, however the additional liquid
products produced in the expanded refinery will require additional shipping
capability. There is another existing dock that is being used for tug boats. It will
need extensive rebuilding to make it suitable for loading ships.
Solids loading could conceivably be done on the Pacific Ocean side, but it would
require an extremely long and expensive dock, and possibly a breakwater
structure to protect against wave action. On the ocean side, there is either a cliff
or gently sloping land followed by a gentle sloping beach and ocean bottom. A
long dock would be required to reach adequate water depth. For these reasons,
the upgrade of the construction dock detailed in section 5.1.5.3, below, is
recommended.
An existing sub sea system is in place for unloading crude the system is being
upgraded from two 12 inch lines to two, 20 inch diameter lines. The upgraded
system will include a seawater reuse purge system that will reduce the amount of
seawater in the crude tanks. Currently seawater is purged trough the lines after
each load of crude and left in the lines until the next load of crude is unloaded
pushing this seawater into the crude tanks. The new seawater reuse system will
collect and store this seawater purge and reuse it to purge the sub sea lines
between crude loads.
A new dock will be built south of the existing dock in Talara bay extending the
existing tug dock. Both docks will be located in the bay in the existing natural
channel.
The new dock, will be constructed so a 35,000 ton ship can be berthed on either
side for unloading crudes and loading petroleum products and sulfuric acid. The
design unloading capacity is 21 - 30 MMbbl/month for each side. Duel loading
5-9
arms will be provided to accommodate loading two ships at once. The dock is
expected to operate 24 hours a day.
The new dock will be 500 to 700 feet long, and about 120 feet wide. A concrete
slab and beam system is proposed for the decks, with steel pipe columns with
braces supporting the decks. Sea bed geotechnical data and wave load
conditions need to be considered in the structural design of the dock. Mooring
dolphins will be built as necessary. The dock is to be designed for
accommodating up to a 50 ton crane. The crane will be used for maintenance.
The location and size of the new dock is shown in the plot plan.
5.1.5.3Loading and Unloading Docks in Talara Bay
The ships currently load products out of the existing ship loading dock in Talara
Bay. All products and crudes at this dock are loaded or unloaded using loading
arms that are equipped with shut of valves and spill prevention systems to
reduce the risk of hydrocarbon spills into the Bay.
A new liquids loading dock will be constructed in Talara Bay that will use the
latest technology for spill prevention and capture. This dock will be constructed
in the existing natural channel and will not require disruptive dredging of the Bay.
Solids and containerized chemicals and solid products will be shipped and
received with an upgraded dock. The existing construction dock will be upgraded
and equipped with a loading/unloading crane, to load and unload containers.
This will divert shipments from trucks to ships, and reduce the amount of truck
traffic that would be required to ship the petroleum coke. This also provides a
means for receiving containerized materials and chemicals needed for refinery
operations.
5.1.5.4Sanitary Sewer
The purpose of the sanitary sewer is to carry sewage, liquid or waterborne waste
from the sewage source to a sanitary treatment facility. The flat topography at
Talara Refinery requires lift stations for pumping the sewage to a treatment
5-10
facility. It will be treated and then reused in the irrigation system. This will
probably be an expansion of the existing wastewater treatment and reuse
system.
5.1.5.5Crane
The containers must be physically loaded onto a transportation vehicle either a
truck or a ship. One method of doing this is by a crane. A lifting crane typically
has capacity of 50.8 tons, a lifting height of 18 meters, a span of 50 meters, and
an outreach of up to 12 meters. Its hoisting speed with a load 30 is m/min, with a
trolley transverse speed up to 150 m/min, and a gantry travel speed of up to 240
m/min.
The Rail Mounted Gantry (RMG) crane will be used for the unloading of
equipment during construction, and will be used to load containers of coke for
shipment. This is a practical design for this application. The crane is based on a
sophisticated Load Control System that does not use hydraulics. Full AC
frequency controlled drives control squirrel cage motors. The RMG gantry
wheels are made of surface hardened chrome molybdenum steel, which has
exceptionally high impact strength and durability. The wheels can be realigned
for the site conditions to assure smooth gantry travel and minimum wearing of
the crane rails.
5.1.5.6Fork Truck
An alternative method of handling containers to load and unload trucks or ships
is a heavy duty fork lift. These units are capable of stacking containers three
high. This approach could save capital.
5-11
5.2 Calculations for General Facilities
5.2.1 Tank Requirements Calculations
Tankage Requirements
Preferred Optimum Case
Required Tankage Service Changes
30 Day Crude, 15 Day Products, 2 Day Intermediate, & Blend Tanks

Current Need Add/Remove Source New Total

Raw Materials
Crude Oil 2380 2700 320 From Gasoline 2700
Reduced Crude 94 135 41 From Fuel Oil 135

Intermediate
Products
Coker Feed 0 103 103 From Fuel Oil 103
MPHC Feed 0 60 60 From Fuel Oil 60
FCC Feed 0 48 48 From Fuel Oil 48
Diesel
Desulfurizer
Feed 0 50 50 From Fuel Oil 50
Naphtha
Desulfurizer
Feed 0 40 40 From Gasoline 40
Reformer Feed 0 20 20 From Gasoline 20
Lt Naphtha 0 20 20 From Gasoline 20
Reformate 0 20 20 From Gasoline 20

Blend Tanks
Gasoline Blend
Tank 0 50 50 From Gasoline 50
Diesel Blend
Tank 0 40 40 From Fuel Oil 40

Products
LPG 51 132 81 Build 132
Gasoline 946 285 -320 To Crude Oil 626
-80 To Intermediate Storage 546
-50 To Blending 496
Jet Fuel 285 255 -30 To Diesel Fuel 255
Diesel 488 645 30 From Jet Fuel 518
127 From Fuel Oil 645
Fuel Oil 488 -41 To Reduced Crude 447
-127 To Diesel Fuel 320
-261 To Intermediate Storage 59
-40 To Blending 19

Net Actions Required:
Convert 320,000 bbls of Gasoline storage to Crude Oil
Convert 80,00 bbls of Gasoline storage to Intermediate
Convert 50,000 bbls of Gasoline storage to Blending
5-12
Convert 30,000 bbls of Jet Fuel storage to Diesel
Convert 127,000 bbls of Fuel Oil storage to Diesel
Convert 41,000 bbls of Fuel Oil storage to Reduced Crude
Convert 261,000 bbls of Fuel Oil storage to Intermediate
Convert 40,000 bbls of Fuel Oil storage to Blending
Build 81,000 bbls of LPG storage
The LPG storage tanks selected are horizontal bullets which can be shop
fabricated and shipped to Talara. These tanks are much more cost effective
than the Horton Spheres not only because they are built in the field but
because they cost less per barrel of storage. The choice of type of tanks and
location will be determined during detailed design based on the disaster
model and client preferences. The number of tanks required can easily be
reduced to save capital cost without any impact on adding more tanks later.
5.3 Description and Flow Diagrams for General Facilities
NOT APPLICABLE
5.4 Unit Chemical Consumptions
NOT APPLICABLE
5.5 Effluents and Emissions
See Environmental Viability Report
5.6 Discarded Options
5.6.1 The Talara Refinery has adequate tankage for all of the hydrocarbon products to
be produced in the optimum case. Several tanks will be needed in other
services. However, no floating roof tanks will need to be added.
5.6.2 The exception to this is LPG storage. To have adequate storage, additional LPG
storage will need to be added.
5.6.3 Using the existing control room as a plant central control room was discarded as
an option due to the location in the center of the operating plant. The primary
5-13
reason is the safety issue in the event of a disaster the control room personnel
will not be safe in the existing control room.
5.6.4 Relocating the lab and office building is for safety reasons to reduce the number
of personnel at risk in the event of a refinery disaster.
5.7 Capital Expenditures for the General Facilities in Chapter 2
5.8 Labor Required See Chapter 2
5.9 Implementation Plan
5.10 Plot Plan
The plot plan for the refinery showing all of the modifications in the refinery is
attached.
Arthur D. Little Implementation Plan Project No. 10-371257
ENGlobal Engineering, Inc. Document 10-371257-007
1-1
Table of Contents
Table of Contents.............................................................................................................. 1
Definition of the Scope..................................................................................................... 2
A. Project Objectives.............................................................................................. 2
B. Scope Description ............................................................................................. 2
1. Utilities .............................................................................................................. 3
2. Controls and Instrumentation........................................................................... 3
3. Environmental................................................................................................... 3
4. General Facilities.............................................................................................. 4
5. Shipping............................................................................................................ 4
6. Buildings ........................................................................................................... 4
7. Other General Facilities.................................................................................... 4
8. Project Constraints ........................................................................................... 5
C. Main Deliverables............................................................................................... 5
D. Milestones and Main phases............................................................................ 6
E. Work Breakdown Structure .............................................................................. 6
F. Cost Estimate of major Items........................................................................... 8
G. Chronogram of the estimate........................................................................... 10
H. Management contingency reserves .............................................................. 12
I. Recommended Owners Organization Chart................................................. 12
1-2
Definition of the Scope
A. Project Objectives
PETROPERU S.A. is the Peruvian state-owned petroleum company. ENGlobal
Engineering has assisted Arthur D. Little in performing a technical feasibility
study for the expansion and modernization of the PETROPERU Talara Refinery.
The technical objectives for the study are to modernize and expand the Talara
refinery, to improve the quality of the LPG, gasoline and diesel products, to
maximize the production of diesel fuel, and to minimize the production of heavy
fuel oil, and to allow processing of heavier sour crudes and residues.
The feasibility study evaluates the current status of the PETROPERU S.A. Talara
Refinery and what modifications are required to enable it to make low sulfur
motor fuels to meet the Peruvian requirements. The 2010 regulations require a
level of 50 ppm sulfur in both diesel fuel and gasoline. An additional objective is
to determine the configuration necessary for increasing the refinery capacity from
62,000 BDO to 90,000 BDO. The crude slate to be considered is 57,500 BDO
Napo crude, 7,150 BDP mixed Talara crude, 13,000 BDO Talara Petrobras
crude and 12,350 BDO Talara Petrotech crude.
B. Scope Description
The Selected Case is based upon including vacuum distillation capability and
includes the following units.
Atmospheric Tower (Existing)
Vacuum Tower(s) (New and Existing)
Flexicoker (New)
Fluid Catalytic Cracker (FCC) (Expanded existing unit)
New Gas Plant (New)
FCC Gasoline Desulfurization (New)
Diesel Fuel Desulfurization (New)
Naphtha Desulfurization (New)
1-3
Reformer (Includes a C
6
/C
7
Splitter) (New)
Amine Plant for H
2
S removal (New)
Sulfuric Acid Plant (New)
Hydrogen Plant (New)
The expected capital expenditure for the Selected Case is $954,000,000, United
States Gulf Coast Basis (USGC), with no allowance for contingencies or location
factor. The total cost after applying these factors will be $1,306,000,000. The
project will be built using a fast-track implementation approach, with the same
contractor for FEED and EPC stages of the project.
1. Utilities
Cooling water will be taken from and returned to the Pacific Ocean.
The process water will continue to be supplied by Pridesa. A warmed
cooling water stream will be supplied to them for their reverse
osmosis (RO) units.

Steam will generated by waste heat boilers, process kettles, and
boilers that will burn either gas from the Flexicoker (Flexigas) or a CO
rich flue gas from the FCC regenerator.
The refinery gas generated and flexigas produced by the Selected
Case will supply in great part the needs of heat for furnaces and
boilers. Excess gas will be used for the generation of electricity in a
self generation cogeneration power plant.
2. Controls and Instrumentation
The control system will use a Distributed Control System (DCS).
3. Environmental
The project will be designed to meet both Peruvian and World Bank
Standards.
1-4
4. General Facilities
Existing Hydrocarbon Fuels Storage is adequate. The service for
several Fuel Oil and Gasoline Tanks will need to changed, but no new
tanks will need to be added for liquid hydrocarbons.
There is not enough storage for LPG. Several LPG tanks will need to
be added to provide the required 15 day storage. For economic
reasons, bullets should be preferred to spheres.
Sulfuric Acid storage will need to be added, since none is currently on
site.
Coke storage was provided in shipping containers to allow for easy
loading, storage and shipping of coke.
5. Shipping
Two new docks were provided. One is a two sided dock that will
handle two ships simultaneously. The other is the existing shipping
dock. The required equipment for loading and unloading containers
was included.
6. Buildings
A new office building was included.
A new laboratory was included.
The DCS/Control room will be relocated away from the units for
personnel safety.
7. Other General Facilities
A new flare to handle the refinery is included.
1-5
A new sanitary sewer with a treatment plant for the new facilities is
included.
8. Project Constraints
Water depth is only 10 meters at the port
Roads to the town are 2 lane roads with heavy traffic
Flooding and heavy rains, resulting from possible future El Ninos
Lime stone is 60 miles from the site; the site is all sand stone
Desert Climate
o Limited fresh water supply
Limited local supply of skilled labor
o Limited infra structure to support imported labor
Location is 600 miles from Lima
Limited number of hotel rooms
No supermarkets in the area
Limited infrastructure to support construction
o Limited amount of construction materials available
o Lack of available rental construction equipment in the area
o Lack of construction support service
C. Main Deliverables
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The following table lists the main deliverables for the Talara Refinery Expansion and
Modernization project.
Figure 1: Main Deliverables
ITEM DELIVERABLE DATE
1. Technology Design Q1-2009
2. Environmental Assessment Q3-2009
3. Front End Engineering Design Q3-2009
4. Project Finance approved Q3-2009
5. Detail Engineering Q3-2011
6. Procurement Q3-2011
7. Construction Q4-2014
8. Commissioning and Start up Q4-2014
D. Milestones and Main phases
The project schedule has four major phases as indicated on the Gantt Chart and the
milestones are shown in red color. This is an estimated schedule on a range of plus or
mines three months based on the feasibility study information. See the attached
schedule built in Microsoft Project version 2003 according to PMBOK guidelines
(Attachment 1). This schedule was developed on a fast-track basis and assumes the
same contractor is used in both the FEED and EPC phases.
E. Work Breakdown Structure
The Work Breakdown Structure will define the major phases for the Talara Refinery
Project and establish the structure for the cost, schedule and resource information
according to PMBOK guidelines. See the major Work Breakdown Structure in
Attachment 2.
1-7
1.0 PHASE 1 PRELIMINARY ENGINEERING & TECHNOLOGY
1.1 TECHNOLOGY Technology selection and design package
1.1.1 Selection/Award Prepare and send RFP, selection of best bidder and award
1.1.2 License Contract Review contract, negotiate and sign
1.1.3 Develop Basic Design Package Selected suppliers develop design
1.1.4 Engineering Design Package from Licensors Suppliers deliver information and design package as required
1.2 ENVIRONMENTAL Environmental Assessment
1.2.1 Selection/Award Contract Prepare and send RFP, selection of best bidder and award
1.2.2 Environmental Assessments Supplier develop and deliver Environmental Assessment
1.2.3 Permits Owners summit and obtain require permits for the project
1.3 PMC Project management contract process
1.3.2 Manage the FEED Package contract Subcontractor performs control on the FEED Package process
1.3.3 Manage Construction and Startup Subcontractor performs control on the EPC execution and Startup
1.4 ENGINEERING Basic Engineering process
1.4.2 FEED PREP for units/offsite Contractor develop basic engineering for units and offsite
1.4.2.1 Phase 1 Develop and deliver phase 1 as per RFP FEED document
1.4.3 Detail Engineering and Data Sheets for long lead items Develop and deliver data sheets for long lead items
1.4.4 Estimate for Major Equipment Develop estimate for the major long lead items
1.4.5 Bids and award Long lead Items Prepare and send RFQ, selection of best bidder and award
1.4.6 Estimate -15% to +20% Develop and deliver the estimate for the scope of the EPC contract
1.4.7 Schedule Develop and deliver the schedule for the EPC contract
2.0 PHASE 2 FINANCE /CONTRACT ADMINISTRATION
2.1 PROJECT FINANCE Financing process for the project
2.1.1 Supply requirement & documents Supply necessary requirement & documental to financial institution
2.1.2 Financial Review Financial review of project documentation for project finance approval
2.1.3 Sign financial agreement Financial Institution approvals of agreement for the project execution
2.2 EPC CONTRACT ADMINISTRATION EPC contract process
2.2.1 Legal EPC Contract Creation Prepare legal and technical documents for the EPC contract
2.2.2 Legal Review/Negotiation Legal review and negotiate difference for scope and condition w/Parties
2.2.3 EPC Contract Signed Obtain final contract signed
3.0 PHASE 3 DETAILED ENGINEERING & PROCUREMENT
3.1 ENGINEERING Detail engineering processes
3.1.1 Civil Specs & Detail Engineering Develop and deliver detail structural and civil engineering
3.1.2 Mech/Piping Specs & Detail Engineering Develop and deliver detail Mechanical and piping engineering
3.1.3 Elect/IE Specs & Detail Engineering Develop and deliver Instrument and Electrical engineering
3.1.4 Process Specs & Detail Engineering Develop and deliver specs and detail process engineering
3.1.5 Automation Specs & Detail Engineering Develop and deliver specs and detail automation engineering
3.1.6 Estimate for Bulk Commodities Develop and deliver estimates for minor equipment and bulk material
3.1.7 Fabrication Needs Identified Develop constructability plan and prefabrication needs
3.2 PROCUREMENT Procurement process
3.2.1 Civil Prepare and send RFQ, selection of bidder and award for equipment & material
3.2.2 Mech/Piping Prepare and send RFQ, selection of bidder and award for equipment & material
3.2.3 Elect/IE Prepare and send RFQ, selection of bidder and award for equipment & material
3.2.4 Process Prepare and send RFQ, selection of bidder and award for equipment & material
3.2.5 Automation Prepare and send RFQ, selection of bidder and award for equipment & material
3.2.6 Bulk Commodities Prepare and send RFQ, selection of bidder and award for material
4.0 PHASE 4 CONSTRUCTION/STARTUP
4.1 CONSTRUCTION Construction process
4.1.1 QA/QC Auditing & Testing Develop plan and execute QA/QC
4..1.2 Site Prep Execute site preparation
4.1.3 Civil Construction & Installation Execute civil construction and installation
4.1.4 Large Equipment Set Up Plan and execute requirements for large equipment installation
4.1.5 Long Lead Items Installation Plan and execute requirements for long lead equipment installation
4.1.6 Mech/Piping Construction & Installation Execute mechanical and piping installation
4.1.7 Elect/IE Construction & Installation Execute instrument and electrical equipment installation
4.1.8 Automation Construction & Installation Execute automation equipment and material installation
4.1.9 Commissioning of Equipment Plan equipment commissioning for earlier startup units
Figure 2: Work Breakdown Structure Dictionary
1-8
F. Cost Estimate of major Items
The cost estimate is summarized in the conceptual engineering document Figure 3 below and it
is also structured by WBS components on the next Chronogram with the Cost Breakdown.
1-9
Figure 3: Cost Estimate
Talara Refinery Selected Case
Capital Estimate Per the Latest Information from PetroPeru
ISBL OSBL
Size
Cost,
$MM Units Size
Cost,
$MM
Cost,
$MM
Utilities General Facilities Environmental
Atmospheric
Tower BPD 90000 10
Power Generator
- 4 Half Sized
Units MW 44 60 Dock 45 Waste Water 6
Vacuum
Tower BPD 53000 61
Substation &
Power Lines 10 Tankage 20 Smokeless Flare 3
Flexicoker BPD 20000 193 Cooling Water MM gpm 65 25 Fire Water 7 Chemical Sewer 1
FCC BPD 24000 40 CW Pumps MM gpm 65 6 Nitrogen 2 Sanitary Sewer 1
Diesel
Desulfurizer BPD 39000 50 CO Boiler MW/hr 421 6 Office Building 5
FCC
Gasoline
Desulfurizer BPD 9000 14 Laboratory 5
Naphtha
Desulfurizer BPD 12600 24 Deaerator gpm 3500 1
Instrumentation &
Control Systems 64 Total Environmental 11
Reformer BPD 9000 40 BFW Pumps gpm 3500 7
Coke Shipping
Equipment 21
Naphtha
Splitter BPD 20000 5 RO Plant 0 Connections 71
New Gas
Plant 30 Instrument Air scfm 6
Total General
Facilities 169 Total OSBL 372
Amine gpm 600 8
Sulfuric Acid ST/day 800 28 Total Utilities 121
Hydrogen MMscfd 20 79 Total, USGC 954

Total ISBL 582
Peru Location
Adjustment (20%) 191
Owners Cost 21
Total, Peru 1166
Contingency (12%) 140
Total 1306
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G. Chronogram of the estimate
The Figure 4 shows a cost breakdown estimate chronogram for the project. This cost breakdown is in the range of +/-30%.
Figure 4: Estimate Chronogram
1-11
1-12
H. Management contingency reserves
The contingency reserves distribution is shown in a separate line in the previous table. Assuming
contingency reserves are 12% the contingency amount is $140 MMUSD.
I. Recommended Owners Organization Chart
The proposed organization chart for PETROPERU Project Team has been broken down into Phases
following the WBS and the Gantt Chart. See Organization chart in figure 5.
1-13
Figure 5: Recommended Owners Organization Chart
1-14
Arthur D. Little Talara Refinery Expansion Modernization Project Project No. 10-371257
ENGlobal Engineering, Inc. Environmental Viability Study Rev. 4 Document No. 10-371257-003
1

ENVIRONMENTAL VIABILITY
APRIL 2008
2
Table of Contents
EXECUTIVE SUMMARY 1 ____________________________________________________________ 4
ACRONYMS 1 _______________________________________________________________________ 9
1 Environmental Viability.................................................................................................... 14
1.1 OverviewEnvironmental Viability: ................................................................................ 14
1.2 Volumetric Balance Regarding Emissions, Effluents and Residuals .............................. 17
1.3 Estimated Volumes or Quantities of Gas Emissions, Liquid Effluents and Solid
Residuals ............................................................................................................................................ 20
1.3.1 Air Emissions ............................................................................................................................................20
1.3.2Wastewater Effluents....................................................................................................................................22
1.3.3Solid Waste Considerations .........................................................................................................................23
1.4 Estimated Concentration of Emissions, Effluents and Residuals.................................... 26
1.4.1 Air Emissions ............................................................................................................................................26
1.4.2Wastewater Effluent .....................................................................................................................................27
1.4.3Solid Waste (Residuals) ...............................................................................................................................28
1.5 Project Evaluation in Light of National and International Regulations (Standards): .. 31
1.5.1Perus National Regulations:........................................................................................................................31
1.5.1.1 General Law / Rights and Principles...........................................................................................31
1.5.1.2 Regulations Related to Hydrocarbons ........................................................................................33
1.5.1.3 Public Hydraulic Issues: ..............................................................................................................33
1.5.1.4 General Law of Waters ................................................................................................................34
1.5.1.5 Hydrocarbons ...............................................................................................................................36
1.5.1.6 Air Quality Standards ..................................................................................................................36
1.5.1.7 Law of Solid Residuals ................................................................................................................37
1.5.1.8 Noise and Vibrations....................................................................................................................39
1.5.1.9 Planning for Disasters ..................................................................................................................40
1.5.1.10 Conservation of Natural Resources.............................................................................................40
1.5.1.11 Control of Restricted Goods........................................................................................................40
1.5.2Additional Peruvian Regulations: ................................................................................................................41
1.5.2.1 Oil Spills .......................................................................................................................................41
1.5.2.2 Construction Authorization .........................................................................................................42
1.5.2.3 Storage ..........................................................................................................................................42
1.5.2.4 Fire Protection ..............................................................................................................................42
1.5.2.5 Reporting Requirements ..............................................................................................................43
1.5.2.6 Other Regulatory Environmental Issues.....................................................................................43
1.5.3World Bank Regulations ..............................................................................................................................44
1.6 Define Concepts to Control & Treat Pollutants ................................................................ 50
1.6.1Addressing Air Emissions............................................................................................................................51
1.6.2Addressing Water and Wastewater Issues: .................................................................................................52
1.6.3Solid Waste (Residuals): ..............................................................................................................................61
1.6.4Other Considerations (Noise, Radiation, Odors, etc.) ................................................................................62
1.6.5Summary of Concepts to Control and Treat Pollution ...............................................................................63
1.6.5.1 Air Emissions ...............................................................................................................................63
1.6.5.2 Water Effluents.............................................................................................................................65
1.6.5.3 Solid Waste (Residuals)...............................................................................................................66
1.7 Estimate Footprint & Investment Requirements.............................................................. 72
1.7.1 Land Footprint............................................................................................................................................72
1.7.2Investment in Environmental .......................................................................................................................73
3
1.8 Provide a General Diagram of the Plant and Processes Used to Control Emissions,
Effluents and Residuals .................................................................................................................... 74
1.9 Summary and Present Conclusions Related to the Project and Identify Measures that
will Affect Construction.................................................................................................................... 75
1.10 References............................................................................................................................. 77
1.11 Appendices............................................................................................................................ 78
1.11.1Pacific Ocean Cooling Water System.......................................................................................................79
1.11.2Summary of Air Emissions ........................................................................................................................80
1.11.3 Plant Plot Plan with Emission Points (Appendix/Drawing sent separately).........................................81
1.11.4 Wastewater Treatment Plant (Process Flow Diagram) ...........................................................................84
1.11.5Talara Refinery Process Flow Diagram (Selected Case) .........................................................................85
4
Executive Summary 1
EXECUTIVE SUMMARY
SUMMARY/OVERVIEW: There are nine (9) Client-Specific Requests (CSRs) included in
the clients planning document titled: TERMINOS DE REFERENCIA (TDR) 7.1-2007. This
Environmental Viability document (report) addresses each of the nine CSRs.
1. Overview of ENVIRONNMENTAL VIABILITY considerations:

There will be minimal impact on the surrounding area due to the Talara refinery expansion.
There will be changes to the seawater intake system; however, designs for lower velocity
intakes with smaller screen openings and adequately dispersed discharges along with taking
them out of Talara Bay will improve fishing and beach conditions.
Air emissions will be affected, however new equipment and unit processes will be designed to
meet Peruvian Regulations and World Bank Standards. As a result, modernization efforts that
include the production of low-sulfur fuels, the utilization of wastes and the control of emissions
can have an overall positive impact on the environment not only of Talara but of the country of
Peru as well as create positive economics. The latter includes income for the sale of coke,
sulfuric acid and higher value motor fuels. The pollution control impact will be reviewed in
detail in the Environmental Impact Assessment (EIA).
2. Volumetric balance regarding emissions, effluents and residuals:
State-of-the-art environmental technology processes are included as part of the modernization
feasibility assessment. The air emissions addressed (to comply with both Peruvian and World
Bank requirements) are volatile organic compounds, sulfur oxides, nitrogen oxides, carbon
monoxides, particulates, and noise.
Liquid leaving the plant will primarily be once-through seawater that will have only a minimal
temperature effect on receiving water. All process water, blowdowns and other liquid streams
enter a wastewater treatment plant whose effluent will meet regulations for biological and
chemical oxygen demand, oil and grease, suspended and dissolved solids, and for other
contaminants that must be removed in order to meet national or World Bank standards.
5
3. Estimated volumes or quantities of gas emissions, liquid effluents and solid residuals:
High sulfur heavy crude oil can be handled by the retrofitted refinery with sulfur recovery units
tied to a new sulfuric acid plant that will meet national and international standards. This acid
unit carries the bonus of providing a saleable product tied to pollution control. Wastewater
effluents are estimated based on profiles for typical world scale refineries.
Using once-through seawater alleviates fresh water consumption tied to heat transfer, and
estimates for the amounts of process water are consistent with profile-outputs from typical
petroleum refinery processes.
Solid waste considerations are a factor during construction. Once the modernization is and
startup is completed, many sludges and process solids end up in the coking unit where the
organics and residuals become refined product, refinery fuel, or a saleable solid fuel.
4. Estimated concentrations of emissions, effluents and residuals:
Sulfur oxide emissions will be below the regulator requirements of 150 parts per million for the
sulfur recovery unit. Sulfur oxide emissions from the balance of the refinery will be negligible
nitrogen oxides over all plant average will be approximate 20 parts per million leaving the
stacks and particulate emissions will be less that 50 parts per million leaving the stacks.
Once-through seawater will be aerated to reach less than 0.1 parts per million of residual
chlorine. All potentially oily water will be treated to less than 10 ppm oil & grease and
discharged at less than the 150 parts per million limit for Chemical Oxygen Demand (COD)
set by the World Bank with the COD in specification the Biological Oxygen Demand will also
be in specification since the sanitary waste will not be discharged to the sea. The wastewater
treatment units shall be designed to meet the requirement for removal of suspended solids.
The refinery upgrade offers the potential for at source reduction of solid waste. This, coupled
to the addition of the Flexicoker, will allow the upgraded refinery to virtually eliminate refinery
sludges and tank bottoms as a source of pollution.
5. Project evaluation per National and International regulations:
6
This report involved a page-by-page assessment of:
System of Environmental Management--Peruvian Standards
General Analysis of Perus Environmental Regulations
World Bank Pollution Prevention Abatement Handbook
Specifically, ENVIRONMENTAL VIABILITY assesses feasibility by reviewing (Article by Article
in the regulations) the requirements for air, wastewater and residuals. Tabular data is included
for: Handling (transport) of hydrocarbons, General Law of Waters, dangerous residuals, noise,
allowable air emissions, pollutant loads per tonne of crude oil processed and specific
requirements for minority pollutants including temperature rise.
ISO-14000 will be used for refinery operation as it is now at Talara and was considered as
part of ENVIRONMENTAL VIABILITY.
6. Define concepts to control and treat pollutants:
A unit-by-unit pollution control assessment was considered in respect to pollutants. Thus, in
considering expansion feasibility, environmental issues address treatment issues for air, water
and solid waste. Besides the normal pollutants expected and evaluated, the report also
considers the presence of ammonia, hydrogen sulfide, and other sulfur-containing
compounds. The selection of processes for wastewater treatment led to aeration units,
centrifugation, and corrugated plate separators integrated with pollution abatement
recommended by the American Petroleum Institute. The selection of sulfuric acid technology
is tied to minimizing exhausts of sulfur oxide and acid mist.
In respect to sludge, the Flexicoker becomes a desirable home for all such wastes, organic or
other. Because the ultimate use for the coke is probably in cement production, this end-use
alleviates leachate issues for heavy metals (that become part of the oxide portion of the
cement).
As part of ENVIRONMENTAL VIABILITY, the feasibility study did not uncover any specific
issue that would preclude the expansion. Specifically, this includes evaluations of issues
7
discussed above, and more focused attention to: Seawater, cooling issues, all plant
wastewater streams, pollution tied to loading or unloading of ships, stormwater runoff, tank
leaks, accidental incidents, oil recovery and reuse, chemical sewer wastewater treatment, and
acid or basic nature of process streams of effluents. The report includes an outline for the
TALARA SOLID WASTE MANGAGMENT PLAN.
7. Estimate footprint and investment requirement:
While there are several new units that are included in expansion considerations, the existing
refinery plot can easily handle all of the new units or expansions. The impacted environmental
footprint of the existing refinery is about 100,000 square meters of area that is already in the
refinery area.
8. General Diagram of the plant and processes:
Plot plans and block flow diagrams are part of the Appendix of the report. ENVIRONMENTAL
VIABILITY suggests that the expansion is consistent with national and international standards
and can meet any local requirement.
9. Summary and conclusions related to the project and identify measures that will affect
construction:
In respect to construction there are issues related to housing, feeding and social
considerations of thousands of workers that will be at the construction site. These issues
include the interface with local population. Technical issues during construction are addressed
but do not create insurmountable problems.
In respect to the finished project the expanded refinery will provide the base for new hiring for
both, operations and maintenance personnel as well as supporting shops and industries for
parts, supplies and services (welders, machine shops, millwrights). These jobs are considered
well paid. Other jobs will be created to support the expanded marine and shipping industry.
RECOMMENDATIONS: The air ENVIRONMENTIAL VIABILITY is consistent with choosing
the new processes that both alleviate pollution and provide two additional income streams for
the refinery. These are positive attributes toward the modernization processes. The expansion
8
also improves the potential to produce more electricity than required to operate the refinery
that could have a positive Return on Investment.
In respect to water, there are scenarios that enhance the possibility for improved fishing
conditions in areas of the bay. The changes in the intake hardware will have a positive effect
on newly-hatched species and the potential for additional aquaculture benefits. This new
equipment will also improve or eliminate entanglements of larger fish or mollusks. This speaks
to the positive value of the project from an environmental aspect.
In respect to residuals, new and existing contracts with catalyst suppliers to handle catalysts
from cradle-to-grave become a bonus for PETROPERU. Furthermore, minimal residuals are
expected that will require removal of toxic or hazardous waste from the site, nor is there a
requirement for landfarming. Instead, the Flexicoker becomes a depository for all oily sludges
and solids, so that they leave the plant as a saleable product or are consumed. Hence, this is
a positive recommendation tied to environmental issues.
CONCLUSIONS: From an ENVIRONMENTAL VIABILITY point of view, one can conclude
that the Talara modernization will positively affect the air people breath both in Talara and
Peru, and it will improve the quality of nearby receiving waters. It will not create oily solid
waste residuals that are harmful to the environment. In fact, two of the new pollution
control/processing units (The Flexicoker and the Sulfuric Acid plant) actually reduce pollution
while creating saleable byproducts.
Those byproducts (coke for fueling cement plants and sulfuric acid used in mining operations)
have two economic benefits: (1) Provide two new income steams for PETROPERU [that were
not there prior to the expansion], (2) Improve the countrys balance of payments issue
because Peru will not have to import as much sulfuric acid or fuel for the cement plants. Also,
should the refinery will use flexigas to run the plants boilers, this is an environmentally friendly
use of flexigas, and improves energy conservation that reduces formation of NOx emissions.
In addition, there is another overall community and regional benefit. That is: The refinery will
be making low-sulfur fuel for use in transportation. This will create a positive effect on ambient
air quality because trucks and cars will be using a better quality fuel. This is a benefit that is
over and above any improvements that result from better pollution-control measures at the
refinery itself.
9
Acronyms and Definitions
Acronyms 1
Acronym Definition
# Pounds
$ US Dollar (unless specified otherwise)
% Percent
~ Approximate
Inches
Feet
Ag Silver
API American Petroleum Institute
B A bel (See db) Also B is the symbol for benzene
Ba Barium
BACT Best Available Control Technology
bbl Barrels, (one barrel equals 44 gallons)
BOD Biological Oxygen Demand
BTX Benzene, Toluene, Xylene
Btu British thermal unit
C Carbon
Ca Calcium
Cd Cadmium
CEMS Continuous Emission Monitoring System
centi 1/100
CGS See SI
Cl Chlorine
cm Centimeters
CN Cyanide
CO Carbon Monoxide
CO
Carbon Dioxide
COD Chemical Oxygen Demand
CONAM Perus National Council of the Environment
CPI Corrugated Plate Interceptor
CPM Critical Path Method
CSRs Client Specific Requests
d Day
DAF Dissolved Air Flotation
DAY
Perus Declaration of Environmental Import for solid waste
(residuals)
db
Decibel (measurement of noise level) A decibel is one tenth of
a bel (B). A decibel is a dimensionless unit
dB
Decibel, a measurement of noise. Noise level is usually
measured in dB for relative poweror it is a measure in
picowatts for absolute power. A suffix (for example, the A in
dBA) is added to denote a particular reference base or specific
qualities of the measurement.
dB (A) See dB
10
Acronym Definition
dBA See dB
DCS Distributed Control System
deci 1/10
deka 10
DGAAE Perus Ministry of Energy and Mines
DICAPI Environmental arm of Perus Ministry of Defense
DIGEMID Perus Department of Medication and Drugs
DIGESA Perus Department of Environmental Health
DO Dissolved Oxygen
Document 19128 World Bank Pollution and Abatement Handbook
ECA
Standard of Environmental Quality, it is the measure of the
concentration or grade of elements, substances or physical,
chemical and biological parameters, in the air receiving body
that doesnt represent significant risk to health.
e.g. For Example
EIA Environmental Impact Assessment
Environmental
Management
Group of decisions, general or specific that are related to
politics and environmental legislation
EPA Environmental Protection Agency
ES Earliest Start Time
Fe Iron
FEED Front End Engineering Design
Flexicoker
A method of producing coke as licensed by EXXON
Corporation
Flexigas Gaseous products exiting the Flexicoker process
ft Feet
ft/sec Feet per Second
Fugitive Emissions Emissions that escape from flanges, valves, fittings, etc.
GAELR General Analysis of Environmental Legal Requirements
gal Gallon
gpm Gallons per minute
gm Gram (or gramme)
H
2
Hydrogen (two atoms)
H
2
S Hydrogen Sulfide
H
2
SO
4
Sulfuric Acid
Haz waste Hazardous waste
HC Hydrocarbons
hecto 100
Hr or hr Hour
Hydrocarbons
All organic, gassy compounds, liquid or solid, that consist
mainly of carbon and hydrogen
IPCC Intergovernmental Panel on Climate Change
ISO International Standards Organization
ISU See SI
Kg Kilogram (or kilogrammes )
kilo 1000
11
Acronym Definition
L or l
The litre or liter is a unit of volume. There are two official
symbols: the letter L in lower (l) and upper case (L). The liter
appears in several versions of the metric system although it is
not an SI unit. It is accepted for use with the SI. The
international unit of volume is the cubic meter (m). One liter
is denoted as 1 cubic decimeter (dm).
Law Law N 26221, Organic Law of Hydrocarbons and their
modifications
LGDA Ley General del Ambiente
LMP Maximum Permissible Limit (also see MPL)
LNG Liquefied Natural Gas
Long ton 2240 pounds. In the United Kingdom the long ton is often
referred to simply as: ton (also see t)
LPG Liquefied Petroleum Gas (usually liquid propane and/or
butane)
LST Latest Start Time
m Meters or minute
MT Metric tonne (also see t and tonne, metric tonne and ton). It
is 1000 kilograms of mass.
Maximum Permissible
Limit (LMP)
They are the values or measures of the concentration or grade
of elements, substances or physical, chemical and biological
parameters present that characterize to an effluent or an
emission that, when being exceeded, can cause damages to
the health, human well-being and to the environment.
Metric ton MT a metric ton (also referred to as a metric tonne) is 1000
kilograms of mass, or roughly 2204.6 pounds.
Metric tonne See metric ton
mg Milligram
Mg (weight) Megagram (also see tonne and t) megagram is the proper SI
word for a tonne.
Mg (an element) Magnesium
mg/L Milligrams per liter (preferred over mg/l)
mg/l Milligram per liter (see mg/L)
mg/lt Incorrect nomenclature for mg/L
mic Micrometer (a measurement gauge not a unit of length)
milli 1/1000
Min Minute (Also see m)
MKS See SI
mm Millimeters
Mn Manganese
MPL Maximum Permissible Limit (some use LMP instead of MPL)
MTBC Mean Time Between Change out
MTBF Mean Time Between Failure
MTBT Mean Time Between Turn Around
mwg Meters Water Gauge
N or N
2
Nitrogen (usually expressed N
2
because two nitrogen atoms
travel together)
12
Acronym Definition
NDT Non Destructive Testing
NORM Naturally Occurring Radioactive Materials
Ni Nickel
NMP Fecal Coliforms
N Number
NO
2
Dioxide of Nitrogen (Nitrogen Dioxide)
NOx Nitrogen Oxide (all types)
O or O
2
Oxygen (usually expressed as O2 because two oxygen atoms
travel together
O
2
Oxygen (two atoms of oxygen)
O
3
Ozone (three atoms of oxygen)
C Degree Centigrade
F Degree Fahrenheit
P Phosphorous
P Pressure Change or Pressure drop
PA Polynuclear Aromatics
PAMA Perus program for handling environmental waste
PEMS Predictive Emission Monitoring System
PERT
Program Evaluation and Review Technique (often referred to
as a PERT chart or a PERT diagram or PERT arc).
pH
Measure of acidity and basicity on a scale 0-14 with water
being neutral with a value of 7.0
PM Particulate Matter
PM-10 Particulate Matter 10.0 millimeter or less
PM-2.5 Particulate Matter 2.5 millimeter or less
PPB or ppb Parts per Billion
PPM or ppm Parts per Million
PPMV or ppmv Parts per Million by Volume
psi Pounds per square inch
psig Pounds per square inch gauge
PW
Produced Water (Produced water is the water that
accompanies crude oil during the production (recovery) of
crude oil from the earth.
Residual Solid waste (Usually from a process unit or tank bottoms)
RO Reverse Osmosis
s Second (also see sec)
S Sulfur
Se Selenium
sec Second (also see s)
Short ton 2000 pounds. In the USA the short ton is often referred to
simply as: ton (also see t)
13
Acronym Definition
SI
International System of Units (also known as ISU) There are
two clusters of metric units in science and engineering. One
cluster, based on the centimeter, the gram and the second is
called the CGS system. The other, based on the meter, the
kilogram and the second is called the MKS system.
International System of Units is normally abbreviated SI from
the French: Le Systeme International d unites
SINANPE Perus national System of Natural Protected Area
SO
2
Sulfur Dioxide
SO
3
Sulfur Trioxide
SOP Standard Operating Procedure
SOx Sulfur Oxide (all types)
t
Tonne, also known as a metric ton (M/T) or a metric tonne.
A tonne is a measurement of mass equal to 1000 kilograms. It
is not an SI unit but is accepted for use with SI. Also see ton.
t Time, or, temperature
T Temperature, Also see t.
TDR
Terminos de Referencia (Planning document for Talara
project)
TDS Total Dissolved Solids
Ton
2000 pounds (also see t, ton, see long ton and see short ton.
The ton is a term mainly used in the USA). The letter t is the
acronym for ton or tonne.
tonne 1000 kilograms or 1 megagram, Mg or 2205 pounds
TSS Total Suspended Solids
UN United Nation
US United States (a shorter version of USA)
US EPA United States Environmental Protection Agency
USA United States of America
V Vanadium
VOCs Volatile Organic Compounds
WSA Wet Sulfuric Acid
WWT Wastewater Treatment
yr Year
Z
n
Zinc
14
1 Environmental Viability
There are certain Client-Specific Requests (CSRs) to be addressed and included in
the ENVIRONMENTAL VIABILITY section of this feasibility report. These CSRs were
listed in Section Six of the planning document: TERMINOS DE REFERENCIA (TDR)
7.1-2007. The TDR listed the CSRs as follows:
Overview of ENVIRONMENTAL VIABILITY considerations (1.1)
Volumetric balance regarding emissions, effluents and residuals (1.2)
Estimated volumes or quantities of gas emissions, liquid effluents and solid
residuals (1.3)
Estimated concentration of emissions, effluents and residuals (1.4)
Project Evaluation per National and International regulations (1.5)
Define concepts to control and treat pollution (1.6)
Estimate footprint and investment requirements (1.7)
Provide a General Diagram of the plant and processes used to control
emissions, effluents and residuals (1.8)
Summarize and present conclusions related to the project and identify
measures that will affect construction (1.9)
Each of these CSRs is addressed in the following paragraphs;
1.1 OverviewEnvironmental Viability:
The impact of the refinery expansion to the Talara area will be covered in the
Environmental Impact Assessment (EIA) to be performed during the next phase of the
project. Based on the current usage of the site and no additional land requirements for
the project, it is anticipated that the environmental impact of the project will be minimal
to the Talara area. The only disturbance of areas outside of the refinery will be to
install an additional new product shipping dock and seawater intake and discharge
15
lines in the Pacific Ocean. Since the new seawater intake and discharge lines will
improve the current seawater cooling system by using low velocity intakes, mobile sea
life can avoid the intake. Also, a deep sea discharge complies with the Peruvian law
that bans discharging wastewater on the beach.
A risk study using disaster modeling should be run to determine the impact on the local
schools and homes that may either require design modification to move high risk items
further away or to relocate the sensitive receptors including the office building, control
room and laboratory. The main consideration would be the location of the Horton
Spheres since they are now close to the administration building and may pose an
unacceptable risk in their proposed location. The risk study will be performed during
the FEED stage of the project on location and types of equipment that can be used to
mitigate the risks.
The proposed upgrades and new units that will be added to the refinery will all be
designed to meet or exceed World Bank Standards, National Standards and local
regulations. The net effect will be that the entire refinery will be upgraded to meet all
of the above standards.
The EIA will quantify and mitigate emissions, effluents and solid waste (residuals).
The water currently being discharged into the Pacific Ocean sometimes exceeds the
10 parts per million (ppm) free oil and grease limits set by World Bank. Air emissions
on new, modified, and existing equipment will be designed to be within Peruvian and
World Bank standards.
The overall impact of the refinery modernization to the country of Peru will be a net
environmental positive since the sulfur in the motor fuels will be reduced from up to
3000 ppm to less than 50 ppm and the amount of high sulfur residual fuel oil sold will
be reduced to only supply the small local market.
The impact of the refinery expansion to the Talara area will be reviewed in detail in the
EIA. One major advantage in the modernization is that less high-octane blending stock
will need to be imported under the new refinery configuration reducing the amount of
material that will be imported to Peru at a high cost.
16
The modernization of the refinery will provide a source of low sulfur gaseous fuels that
will reduce the dependence on burning natural gas in the refinery. These low sulfur
fuels can also be used to make steam and subsequently electricity for refinery use and
for sales.
The conversion of the residual material from fuel oil to refinery products, Flexigas and
coke will reduce the amount of fuel oil currently being sold in Peru thus reducing the
amount of sulfur dioxide from burning the high sulfur fuel oil.
The seawater intake for cooling will be designed using US EPA criteria to prevent
mobile sea life from entering the seawater intakes. Wastewater treating will be
designed to meet World Bank regulations with safeguards to assure that all waters
discharged to the sea meet World Bank regulations.
The production of sulfuric acid as a by-product from the refinery will reduce Peruvian
imports of sulfuric acid.
The generation of petroleum coke will provide fuel to the cement plants operating in
Peru and thus reduce the importing of coal.
By using modern refinery unit design to include low NOx burners, and by operating the
refinery heaters at cooler temperatures, there will be a reduction in NOx emissions
once the refinery expansion is completed.
The refinery expansion will be in an area (existing acreage) that is already being used
by the refinery and is approved for industrial purposes. The project will not require the
use of any land that is not already part of the refinery except some area in and near
Talara Bay for the new docks.
17
1.2 Volumetric Balance Regarding Emissions, Effluents and Residuals
The modernization project will affect the amounts of:
Gaseous Emissions
Liquid Effluent
Solid Residues (toxic, hazardous & non-toxic, non-hazardous)
Other Considerations (Noise, radiation, odors, etc.)
State-of-the art environmental technology processes and equipment can actually
improve some of the current conditions at the facility.
When considering the affects of the expansion on air, water and solid waste, gaseous
emissions (emissions into the atmosphere) are the most important for the project to
address. Gaseous emissions are the emissions that are noticed by the community first
and can impact the quality of life in the short term. This is because the volume (or
weight) of materials reaching the air is more noticeable than in the case of pollutants in
the water discharges or that of solid waste. In the case of water discharges there are
no significant problems with toxic or hazardous pollutants (for example, heavy metals).
In the case of solid waste, the most significant volume (or weight) is in spent catalysts.
Air emissions include Volatile Organic Compounds (VOCs), Sulfur Oxides (SOx),
Nitrogen Oxides (NOx). Carbon Monoxide (CO) which is allowable at higher levels
and particulates which will not be detectable in a desert climate from a plant burning
mostly gaseous fuels without sulfur. The largest amount of air emissions will be NOx
which will be generated from burning refinery fuel gas and low-Btu (British thermal
units) Flexigas. The VOC emissions are typical for a refinery of this size.
Liquids leaving the plant will primarily be seawater cooling discharge which, basically,
is clean seawater with some increase in temperature and a slight residual of chlorine.
The balance of the liquid effluents will be wastewater from boiler blow down, and
treated oily water from various sources. These wastewater streams will only be a
18
small fraction of the seawater discharge stream. The wastewater treatment plant will
utilize Best Available Control Technology (BACT).
Solids will consist of mainly municipal type trash from packing and human activity
since catalyst and chemical containers will all be recycled (to suppliers of these
materials) leaving only such things as scrap metal and a small amount of hazardous
waste which will primarily be filter cartridges and solvents from maintenance
operations.
Noise will be generated by the construction of the facility but will be temporary and will
be mitigated as to reduce the impact to the community by using mufflers on
construction equipment and receiving as many supplies as practical by sea to reduce
traffic through the community. The noisy construction will be limited to daytime only if
it becomes a problem. A problem is not anticipated since the main part of the
construction effort will be in an area remote from the community shielded by the
existing plant tank farm. The only potential problem area for construction is driving of
pilings for the new product shipping dock. This can easily be mitigated if needed using
newer quieter pile driving methods.
Noise emissions after the project is completed will be minimal since equipment will be
shielded form the community by the tank farm and will be purchased to mitigate noise
since potentially noisy equipment will be specified with noise limitations. Many pieces
of new equipment, such as large motors, are now designed with lower decibel (dB)
output in mind, so, the refinery expansion will benefit by these advances in technology
Noise should not be problem from this project.
Social considerations could become a construction issue due to the influx of large
numbers of specialized skilled workers required to build the new plant. The imported
workers will be brought in to supplement local labor availability and lack of adequate
local skilled workers. First hiring preference will be to local labor if they are qualified
for the task. The impact of over a thousand men living single-status, far from a major
city, might increase the incidence of crime by both the imported men and opportunists
taking advantage of many single men who will have cash to spend or loose. The
project should address the needs of additional police, as well as a clinic to handle any
19
social diseases that are common with the influx of many single status men on the
community.
Overall, the economic impact on the community will be positive for the five years
during construction, but the influx of additional people may strain the economy to
provide adequate goods and services causing potential local inflation. When
construction is complete and the imported work force leaves the area, the community
could experience a mild recession since the demand for goods and services will drop.
The resulting economy will still be larger than it is now since the added capacity will
bring more permanent jobs and opportunities for support services. Strategic planning
by PETROPERU, in concert with community government, should address during and
after-construction issues.
20
1.3 Estimated Volumes or Quantities of Gas Emissions, Liquid Effluents and
Solid Residuals
The process-intensive refining industry has demanding environmental challenges to
protect air, water and soil. A first step in meeting these challenges is to consider the
various processes that are needed to make the product slate. Once the unit
operations have been determined, engineers must address the material balances and
emissions that reach air, water and land.
1.3.1 Air Emissions
The VOCs emitted are estimated are about 296 tons/yr based on what is known about
the existing and proposed refinery. This number is expected to increase about 20 to
30% during Front End Engineering Design (FEED) and detailed design when more
accurate information is available on the exact number of valves, flanges, and pumps.
Also several minor emission sources such as fugitives from wastewater treating were
not included in these numbers. The tank emissions were determined using the US
EPA program Tanks version 4.09d that does not calculate accurate emissions for
crude tanks with floating roofs below 100 foot in diameter. The less than 100 foot in
diameter crude tanks were factored off of the larger tank calculations. The VOC
emissions by source are found in the Appendix 1.11.2.
The Nitrogen Oxide (NOx) emissions will be the next largest air emission estimated for
each heater but may change during detailed design based on the actual burner used
and heater design. More accurate numbers will be obtained during FEED and refined
during detailed design. The NOx estimate for each fired sources can be found in the
Appendix 1.11.2 on the summary table and the heater and boiler calculation sheet.
In summary, the total plant NOx emissions, based on the process heaters for each
unit, is shown for point source 001 in the appendix for NOx, plus the additional
contribution from FCC, CO Boiler, flares, engines and power generation. The NOx
levels are reasonable since the low Btu gas burned to make steam will combust at a
low temperature and will not generate NOx; however, some of the process heaters and
WSA unit will be operated at a higher temperature and may generate more NOx.
21
Sulfur Dioxide (SOx) emissions will be minimized since all the fuel gas and Flexigas
will have most of the sulfur removed before combustion reducing the SOx emissions
from the heaters and boilers to very low levels. SOx emissions from burning diesel
fuel for the cranes, fire water pumps and emergency generators will be lower than the
4 tonnes/yr because the diesel fuel being burned will be a low sulfur diesel fuel
produced by the refinery. The regeneration of FCC catalyst will also generate SOx
emissions as indicated in the Appendix. Some SOx emissions will be generated from
the Wet Sulfuric Acid (WSA) unit. The emission level of SOx from the WSA will be
less than 150 ppm, which is below the Peruvian, World Bank, and US EPA standards.
SOx emissions from the storage and loading of sulfuric acid will be controlled using a
wet scrubber system to capture and control these emissions.
The emissions from the WSA unit are as follows without any emissions control. The
without emissions control case is what is shown on the summary of emissions table in
the Appendix 1.11.2.
Pollutant ppm tonnes/yr
SOx 150 351
NOx 50 80
VOC 5 5
CO 5 5
With the addition of a hydrogen peroxide unit down stream, the capital cost of the unit
including the hydrogen peroxide unit will not increase but the complexity will increase
and it will require the purchase of hydrogen peroxide to operate the unit. The revised
emissions would be as follows:
Pollutant ppm tonnes/yr
SOx 15 35
NOx 5 8
VOC 0 0
CO 0 0
COS 3 7
The WSA unit without emissions control will meet World Bank standards on
concentration of pollutants. Currently no units in South America include the hydrogen-
peroxide-emissions-reduction option, which will cost more to operate. PETROPERU
and the lenders must consider if the low emissions option will be implemented at
Talara on the basis that it will increase the operating cost while producing about 344
22
tonnes per year of sulfuric acid. The low emissions option is shown in the emissions
table in the Appendix 1.11.2.
Since the refinery will be burning fuel gas in all heaters and boilers, particulate
generation form fired sources will not be of concern. Talara is a desert location.
Particulate emissions from the site can be reduced by paving over the tank dikes
(which is a current project) and paving the expansion area.
1.3.2 Wastewater Effluents
The once-through seawater cooling will use about 65,000 gallons/minute of seawater.
One can compare this value with typical, rule-of-thumb, refinery wastewater usage.
TYPICAL WASTEWATER GENERATION BY REFINERY UNIT
Process
Wastewater flow (Gallons
per bbl of oil)
Crude distillation 26.0*
Fluid Catalytic Cracking 15.0*
Reforming 6.0
Desalting 2.1
Coking 1.0
Hydrotreating 1.0
Source: Energetics, 1998 Industrial Water Use and Energy Implications
* Original source is: EPA Office of Compliance Sector Notebook Project, Profile of the
Petroleum Refining Industry September 1995, Office of Compliance Office of
Enforcement and Compliance Assurance U.S. Environmental Protection Agency401 M
St., SW (MC 2221-A) Washington, DC 20460 Exhibit 15: Typical Material Outputs
from Selected Petroleum Refining Processes
Based on simulations preformed during the feasibility study it appears that the above
numbers are high by a factor of 10. Other water considerations include: water exiting
23
the vacuum tower (steam jets) and the effects of water conservation tied to design
efficiencies that will be part of the expanded facility.
Except for the desalter, the resulting amount of wastewater generated by refinery
processes will be less than shown in the above table because much of the wastewater
generated is sour water, which will be stripped and reused in the desalter, in the
hydrogen unit and the hydrotreating units. At steady state operations, the real amount
of process wastewater (excluding the desalter water) will approach zero or close to
zero.
All other wastewater flows will be from wash down, maintenance and rainwater and will
be based on the design and operation of the refinery. Which based on the tour of the
refinery will be minimal to non-existent since all operating areas were free of
hydrocarbons. The predicted flows for the Groups of wastewater are listed in Section
1.6.2. The wastewater are listed as types of wastewater since the wastewater form
maintenance wash down and rainfall are based on the area of the operating plant and
is not assignable units since the operation of each unit will be different when the plant
is operating. The plant design will include the maximum predicted instantaneous flow
from each unit and the maximum flow from all units at any given time. The values
provide are average predicted flows from the refinery.
1.3.3 Solid Waste Considerations
In the refinerys planning, catalysts suppliers have agreed to pick up and recycle these
solids, so, there is no solid waste catalyst disposal requirement by PETROPERU.
Spent catalysts leave the site as the property and responsibility of the manufacturer.
Empty chemical containers will also be recycled back to the suppliers for reuse or
disposal. This is a common practice.
The construction effort will generate many tonnes of packing material, and metal scrap
that can be recycled. Since the packing material will be clean and free of chemicals, it
is possible that some of it can be recycled locally. The control of these materials will
be the responsibility of the construction contactor with reports provided to
PETROPERU to make sure all materials are recycled properly and will not cause
24
environmental problems. All items disposed of during construction will be handled in a
traceable manner with oversight by PETROPERU.
During the operation of the facility, the largest solid waste stream will be normal
garbage from personnel. This will be handled the same as household garbage.
During construction, the quantity of solid waste will be dependent upon how many
workers will be at the site at a particular time. The latter will be compatible with
PETROPERU planning using a Critical Path Method (CPM) for construction that will be
tied to a Program Evaluation and Review Technique (PERT) diagram and timetable.
A very small quantity of hazardous waste (such as paint sludges containing residual
solvents) will be generated during construction. Similarly, once the expansion is
completed, during normal operations and maintenance procedures, (or as a result of
spills or events), the refinery will handle materials such as cleaning liquids, solvents,
oily rags, oil soaked materials, spent absorbents, insulation, filter cartridges,
chemically contaminated materials or other hazardous substances generated in the
Operation and Maintenance (O&M) of the facility. Standard Operating Procedures
(SOPs) will be developed that will address O&M and disposal procedures, plus policies
and regulations to handle all types of waste (normal, toxic, hazardous, other). This will
include a secured area, controlled access, policing, training and personnel-safety
issues (such as protective clothing and breathing apparatus).
Solid waste generation from the incoming crude and recovered oily sludges will be
eliminated since the sulfur will be removed from the products and converted into
sulfuric acid which will be sold and the remaining sulfur, residuals, and metals will be
reduced to petroleum coke which will be partially gasified.
Heavy metals (that end up in the coke from the Flexicoker) will not be a problem.
These materials are part of the fuel-coke that will be fed into the cement kiln where the
metals are oxidized to a non-leachable state rendering them harmless to the
environment.
The only solid waste coming from the units that is not consumed in the refinery and not
returned to the supplier is filter cartridges and maintenance wastes. It is not possible
25
to separate the quantities by refinery unit or predict the total quantity of this material
that will result from the refinery operation.
26
1.4 Estimated Concentration of Emissions, Effluents and Residuals
From an environmental perspective, the Talara retrofit/expansion can actually lead to
improvements in air quality and water quality around and near the refinery. This is
because there have been advances in technology used to control air emissions, water
effluents and disposal of solid waste. There are improvements in design and
equipment that allow for optimized pollution control. In addition, sensors and process
control systems allow for better and more accurate monitoring of environmental issues.
1.4.1 Air Emissions
The air emissions will consist of NOx, VOC, CO, SOx, and particulate matter. Since
this refinery will not be burning any residual fuel oils or coke, there will be no heavy
metals detectable as air emissions.
The NOx levels leaving the heater stacks will vary from a high of 200 ppm from the old
modified 2,000 bbl/day vacuum tower heater and atmospheric tower heater which are
existing heaters will be limited in the ability to reduce NOx emissions. For practical
reasons the NOx levels may not be able to be reduced down to 48 ppm and may
remain at a couple of hundred ppm especially for the small vacuum tower heater. The
other new process heaters NOx levels will be easily controlled to a maximum of 20
ppm NOx using low NOx burner technology and heater design.
The steam boilers designed to burn low Btu gasses from the Flexicoker will be able to
operate with less than 5 ppm NOx since they can be designed to operate below
1400 F flame temperature without increasing the NOx above the levels in the fuel gas
[1400 F is the NOx formation temperature].
The overall average NOx will be about 20 ppm as it leaves the stacks. The SOx
emissions will be a couple of ppm in the flue gas because all the gas being burned will
be low in sulfur compounds. CO emissions will be about 50 ppm out of the stacks but
may exceed this number during an upset or start up condition. Particulate emissions
will be less than 50 ppm and will exceed this number during abnormal operating
conditions.
27
Based on the location and strong prevailing winds from the Southeast or Southwest,
dispersion modeling using a screening model will show that the projected worst-case
emissions increase will be negligible on the community.
1.4.2 Wastewater Effluent
The once-through seawater will be returned to the sea after aeration that will partially
de-chlorinate the seawater down to less than 0.1 ppm residual chlorine. The
temperature increase in the Pacific Ocean after the initial mixing of the cooling water
will be less than the 2.5 C. This meets allowable t emperature increase by Peruvian
regulations and the 3 C limit by the World Bank. Ac cording to the Revised World bank
April 2007 Guidelines the 2.5 C is at the edge of t he mixing zone At the edge of a
scientifically established mixing zone which takes into account ambient water quality,
receiving water use, potential receptors and assimilative capacity. This was more
simply stated in the previous World bank Guidelines ..at the edge of the zone where
initial mixing and dilution take place. Were the zone is not defined use 100 meters
from the point of discharge.
All the potentially oily water streams will be segregated and individually treated to less
than 10 ppm free oil and grease prior to discharge into the warm seawater discharge
stream.
In some cases, the chemical sewer, tank drainage, and desalter water may contain
more than the allowable 150 ppm Chemical Oxygen Demand (COD) limit set by the
World Bank. If this is the case, these streams will be biologically treated (after the oil
and grease is removed) down to less than 150 ppm COD to reduce both the Biological
Oxygen Demand (BOD) and COD to acceptable limits.
The desalter, tank water draws, and treated chemical sewer liquids will be the only
significant wastewater streams that will contain dissolved organics. These streams will
be salty from their origins and may have to be treated biologically to reduce the
dissolved organics to acceptable levels. As long as the salt levels remain reasonably
constant, biological treating will be successful and inexpensive due to the low flow rate
of these streams.
28
1.4.3 Solid Waste (Residuals)
As part of the modernization project at Talara and anticipation of the project the
refinery is adopting substantial changes to its solid was management system. A
number of new initiatives are being introduced into the solid waste management
program and these changes will be integrated into the total environmental
management program. Specifically, the refinery expansion will also offer the
opportunity for at source solid waste reduction and recycling. The program should
result in considerable waste reduction and reduce waste generation resulting in
substantial saving in waste handling and disposal costs. In respect to residuals, the
new Flexicoking unit offers the opportunity to move organic sludge and bottom-of-the
barrel materials into the coker where disposal costs can be turned into product profits.
[Note: Integrated waste management practices must involve both waste minimization
and recycling].
As part of the EIA, the solid waste section of that document should address technical
advances that have occurred. In addition, the SOP for solid waste must address
changes due to a variety of reasons including economic conditions, regulatory and
licensing requirements, health and safety issues and changing public attitudes.
Reducing pollution involves both pollution prevention options and process modification
options. This includes training in good housekeeping practices, segregating waste
streams, avoiding dilution, control of solids entering sewers and minimizing solids
entering the crude tower. (Solids entering the crude distillation unit are likely to attract
more oil and can produce emulsions and sludge).
Cleaner production initiatives involve a unit-by-unit process evaluation that considers
both the Source of solid waste and its Material Characteristics. For Talara this
includes:
29
SOURCE MATERIAL CHARACTERISTIC
FCC UNIT CATALYST FINES
STORAGE TANKS OIL CONTAMINATED SOLIDS
SEWER OILY SLUDGE
VARIOUS SOURCES CONTAMINATED SOIL
PROCESS UNITS SPILL CLEAN-UP DRUMS
NEW PROCESS UNITS SPENT CATALYST
WASTEWATER TREATING RECOVERED OIL & BIOSOLIDS
FLEXICOKER CONTAMINATED OR SPILLED
COKE FINES
In addition, a typical refinery compared to the expanded Talara Refinery generates a
variety of uncontaminated solid wastes (some recyclable) that can have a considerable
impact on overall waste management costs. These wastes, and an estimated
generation rate in tonnes per year, are:

MATERIAL MATERIAL CHARACTERISTIC
CLEAN DRUMS 20
SCRAP METAL 450
WASTE PAPER 6
CARDBOARD 10
ALUMINUM 2
GREEN WASTE 1
Source: Caltex Refinery, Lytton, QLD, Australia
Note: Solid waste reduction is enhanced by site environmental audits conducted by
external contractors that can provide objective overviews of processes and
procedures].
Most of the solid waste listed as generated by a typical refinery will be recycled or
shipped back to the supplier such as drums and catalysts. Recycling will take place
30
for scrap metal, cardboard, aluminum, paper, recovered oil, and oily sludge. This will
only leave oil contaminated rags, household garbage,
The basis for Talaras waste management program will be to introduce cleaner
production elements to the manufacturing process. These elements include:
Continuing waste management awareness training especially in respect to
toxic and hazardous wastes
Inventorying solid waste streams and identifying where they are generated
Identify process-unit waste recycling technologies and opportunities
Developing additional on-site waste reduction and recycling options
Creating or modifying SOPs for solids waste handling to cover the new units
31
1.5 Project Evaluation in Light of National and International Regulations
(Standards):
In order to address the ENVIRONMENTAL VIABILITY of PROYECTO:
MODERNIZACION DE REFINERIA TALARA, Petro Peru S.A. requested an analysis
of both National and International regulations that pertain to the project. In that light,
the technical screening includes an evaluation of:
National: Perus Environmental General Law No. (N) 28611(15.10.2005)
English Ref. Environmental General Law No. 28611
Spanish Ref. Ley General del Ambiente Ley N28611(15.10.2005)
International: World BankPollution and Abatement Handbook April 2007
(Document 19128)
1.5.1 Perus National Regulations:
To provide the following regulation assessment, engineers thoroughly reviewed
approximately 7000 pages of:
System of Environmental Management ISO 14001 (SEM-ISO)
General Analysis of Environmental Legal Requirements (GAELR)
The SEM-ISO / GAELR provide a National perspective, for the following list of
regulations that are considered important to the project. Each item listed below was
evaluated as part of the ENVIRONMENTAL VIABILITY of this feasibility document.
Each of the following headings is in sequential order as the data appeared in SEM-ISO
/ GAELR.
1.5.1.1 General Law / Rights and Principles
Article 25 Environmental Impact Assessment (EIA) (Artculo 25 .- De los Estudios de
Impacto Ambiental): Each of the proposed expansion activities and each process
considered in the modernization are considered in respect to the pollution impact and
its affect on the social environment.
32
Article 32 Maximum Permissible Limit (MPL or LMP)( Artculo 32.- Del Lmite Mximo
Permisible): In every environmental evaluation of the project the LMP is characterized
as the concentration of elements or physical and biological parameters that
characterize an emission or effluent as exceeding the limit that can cause danger to
human well-being or to the environment.
Article 56 Public Authorities (Artculo 56.- De la Autoridad Ambiental Nacional): For
the project, the final authority for environmental questions is: Environmental national
Authority The National Council of the Environment (CONAM) to include all regulations
and functions.
Articles 74 & 75 Responsibilities & Risk Prevention: The project will clearly identify
operator responsibilities in respect to emissions effluents, discharges and negative
impact on the environment, Furthermore, the operators shall adopt risk prevention
measures that conform to Peruvian law.
Article 101 Marine & Coastal Ecosystems (Artculo 101.- De los ecosistemas marinos y
costeros): The project will prevent or control the negative impact that the refinery will
generate that could result in discharges that negatively affect the sea and/or coastal
adjacent wetlands.
Article 107 National System of Natural Protected Area (SINANPE) (Artculo 107.- Del
Sistema Nacional de reas Naturales Protegidas por el Estado): The project must assure
the continuity of the ecological and evolutionary process as well s the history and
culture of the country
Article 115- -Noises & Vibrations (Artculo 115.- De los ruidos y vibraciones): Project
managers are responsible to the sectoral (local) authorities in respect to noises and
vibrations that may ensue from construction and operation of the project. See Noise
and Vibrations below.
Article 116 - Radiation (Artculo 116.- De las radiaciones): While radiation should not be
a factor in either constructions or operation of the modernized refinery, management
33
must be aware of the need to address radiation if there is a health concern. This is a
possibility
1.5.1.2 Regulations Related to Hydrocarbons
English Ref. - Regulations for Environmental Protection of Hydrocarbon Activity
D.S. No. 015-2006-EM
Spanish Ref. Reglamento de Proteccion Ambiental en las Actividades de
Hidrocarburos D.S. N 015-2006-EM(05.03.2006)
Article 1 Applicable Laws & Regulations: It is the objective of the project o meet all
laws governing the environments starting with the General Law (28611), but, in respect
to hydrocarbons to consider 28245 (Environmental Management), 27446 (Evaluation
and Environmental Impact) and Ordinance Supreme 04202005-EM (pertains directly to
hydrocarbons and volatile organic compounds [VOCs] ).
Article 28 (and previous) Environmental Impact Studies: The project must address
certain timetable requirements and provisions for source identification of hydrocarbons
and their control. This will be done through the appropriate government agencies (e.g.
DGAAE [Ministry of Energy & Mines]) as required by Peruvian Law. Hydrocarbon
issues are extremely important because inappropriate action can lead to prosecution
(Article 82).
1.5.1.3 Public Hydraulic Issues:
Both underground water and surface water are important issues that are the domain of
the state under: Waters Law 29 dated August 2, 1985
English Ref. Waters Law 29 dated August 2, 1985
Spanish Ref. Ley 29-1985, del 2 de agosto, de Aguas(Ley General de Aguas
Decreto Ley N 17752(25.07.1979))
Article 57 7 58 Water Concessions: All concessions and hydrological plans are
granted for 75 years and must be adopted in ways that serve the public. The project
must consider hydrological criteria in its planning. This includes water needs of the
public, irrigation, industrial and marine uses.
Article 91 Saltwater Incursion: The refinery modernization must assure that there is
no degradation of groundwater through leaching from the surface into the aquifer, or
34
by intrusion of saline waters. Spills of hazardous or toxic materials cannot reach the
aquifer. Surface containment is required. (Stormwater runoff ponds will be sized to
accommodate rainfall).
1.5.1.4 General Law of Waters
English Ref. Regulation of Titles I, II, and III of D.L.N. No. 17752 of General Law
of Waters - Supreme Decree - No. 261-69-AP
Spanish Ref. Reglamento de Los Titulos I, II, Y III Del D.L.N. N 17752 Sobre Ley
General De Aguas Decreto Supremo N 261-69-AP
Article 7, 8 & 9 International Waters: The project must consider international waters
out to a distance of 200 adjacent miles and address fishery rights plus regulations that
pertains to lakes, lagoons and tidelands.
Article 56 ff Preservation: Project approvals in respect to vertimento (spillage) (both
domestic and industrial) must be addressed in concert with local sanitation authorities,
commissions and ministries that have authority over drainage, and water quality in
fresh water area or marine or terrestrial waters.
Article 81 Pollutants: Since we will be discharging to the Pacific Ocean this will be a
Class IV discharge requirement pollutants that will be addressed in the expansion
(modernization project) for discharge include: Color, suspended solids, dissolved
materials, oil & grease, BOD, fluorine, cyanides, and heavy metals (from arsenic to
zinc).
35
PERUVIAN CLASS IV WATER REGULATIONS
(Applicable to coastal regions)
Contaminant Peruvian Requirement Talala Refinery
Color 30 units Applies
Substances that cause
scent or flavor
Absent Applies
Floating solids Absent Applies
Suspend solids 100 mg/l Applies
Oil and grease Absent Address in EIA
Phenols Less than 0.01 mg/L Applies
Lead 0.1 mg/L Applies
Arsenic 0.2 mg/L Applies
Fluorine 1.0 mg/L Applies
Selenium 0.05 mg/L Applies
Hexavalent chromium 0.05 mg/L Applies
Cyanide 0.01 mg/l Applies
Barium 0.01 mg/L Applies
Cadmium 0.01 mg/L Applies
Silver 0.05 mg/L Applies
Iron 0.03 mg/L Applies
Zinc 5.0 mg/L Applies
NMP 20,000 C/100 ml Applies
BOD (five day) Less than 50 mg/L @
20 C
Applies
DO 3 mg/L minimum Applies
pH 6 -8.5 Applies
Temperature Less than 2.5 C Applies
Cobalt 1.0 mg/l Applies
NOTE: Comparing Peruvian regulations for effluents with World Bank regulations shows that
several Peruvian requirements are more stringent that the World Banks. In addition, The
World Bank did not address the issue of fecal coliforms (NMPs). This value is tied to the
presence of pollutant bacteria and/or virus. In that light, the refinery would normally have to
address the issue of sanitary sewage discharge and any processing conditions that would
lead to presence or growth of harmful organisms. Since the sanitary sewage is being treated
for reuse as irrigation water for non-contact irrigation and not being discharged.
PETROPERU will have to label the green areas that are irrigated with reclaimed water that
this area is irrigated with non-potable water.
36
The oil and Grease standard of absent is not reasonable for a large refinery but the
level of 10 ppm as specified by the World Bank is reasonable. It is possible that this
may be interrupted as no visible oil and grease which 10 ppm will satisfy since it will
not be detected except by a laboratory test. The EIA will address this issue in more
detail and determine if this means no visible oil and grease on non-detectable.
1.5.1.5 Hydrocarbons
Under the direction of Resolution Number 030-96-EM / DGAAE (1) pertaining to
Hydrocarbons, there are supreme decrees and directives (as many as fifty each) that
will be addressed by the project to include requirements as detailed as identifying
sampling points, monitoring of pollutants and control points and control equipment to
reduce or eliminate fugitive emissions and hydrocarbons reaching cooling water or
wastewater.
English Ref. Maximum Levels of Permissible Effluents of Active Liquid Products,
Exploitation and Commercialization of Hydrocarbon Activity - Directorial Resolution
No. 030-96-EM/DGAA(1)
Spanish Ref. Niveles Maximos Permisibles Para Efluentes Liquidos Producto De
Actividades Explotacion Y Comercializacion De Hidrocarburos Resolucion Directoral
N 030-96-EM/DGAA (1)
Peruvian Environmental Agencies utilize GNATT Charts for timetables and
scheduling. Gantt Charts identify significant milestones of a project and provide a time
line for completing each task. Each milestone is to have a measurable result of
whether tasks are completed and that completion is verified. This project monitoring
techniques can be important to construction and operations objectives.
1.5.1.6 Air Quality Standards
English Ref. Regulation of National Standards of Environmental Air Quality -
Supreme Decree No. 074-2001-PCM
Spanish Ref. Reglamento De Estandares Nacionales De Calidad Ambiental del Aire,
Decreto Supremeo N 074-2001-PCM
Articles 2 & 4 Standards 7 measurements: Consistent with the Decree Supreme
Number 044-98-PCM for Air Pollution Control, the project will address seven major air
pollutants to include monitoring instruments and timing of monitoring, these are: sulfur
dioxide, carbon monoxide, nitrogen oxides, ozone, hydrogen sulfide, lead and
37
particulates. Particulate monitoring and control will address particulates as small at 2.5
millimeters. This latter is referred to as PM-2.5. Less stringent (PM-10 standards)
apply in certain cases. This will be addressed further in the EIA considering the
location of this project in the desert. Also monitoring will be addressed since this could
mean periodic samples taken and analyzed compared to Continuous Emission
Monitoring System (CEMS). Since continuous emission monitoring is expensive and
it does not improve the environment when other options are available like taking
periodic manual samples for analysis and programming in Predictive Emission
Modeling System (PEMS) data to allow the DCS to do the modeling based on process
parameters and conditions from heaters and furnaces.
Article 10 Air Quality Improvement: The project will emphasize Best Available
Control Technology (BACT) with a focus on improving the quality of fuels, especially
low sulfur diesel. The EIA should address how the refinery can minimize driving miles
associated with refinery operations
Article 28 - : Dispositions: Both COMPLEMENTARY DISPOSITIONS and
TRANSITORY DISPOSITIONS are addressed by national and sectoral (local)
authorities. Peruvian air control recommendations consider guidelines tied to the US
EPA and the State of California Air Resources Board.
1.5.1.7 Law of Solid Residuals
English Ref. Approve the Regulation of Supreme Law No. 27314, General Law of
Solid Residuals, Supreme Decree No. 057-2004-PCM
Spanish Ref. Aprueban el Reglamento de la Ley N 27314, Ley General De Residuos
Slidos, Decreto Supremo N 057-2004-PCM
Article 26 Environmental Issues related to Solid Waste: Three important issues (in
respect to solid waste) should be noted as part of this feasibility document:
1. Management of solid generated residuals must be addressed in the
Declaration of Environmental Impact (DAY)
2. DAY information must be integrated into the EIA. [The Peruvian government
often refers to this integration as: Studies of Environmental Impact].
Article 39 & 40 Storage: Storage regulations exist for dangerous materials and their
handling to include a timetable for handling and removal. Key issues must be
38
addressed in the EIA (as per these paragraphs 39 & 40) to include risk of fire,
emissions, hygiene and security.
Article 73 Handling and Infrastructure: in addressing issues related to solid waste,
there must be a program for handing this waste (under PAMA). Also, all residual
programs must be approved by the Department of Environmental Health (DIGESA).
DICAPI of the Ministry of Defense addresses residual issues in marine waters and
ports. Contact DICAPI.
39
LIST OF DANGEROUS RESIDUALS
The residuals of this table are defined as dangerous in conformity with the Peruvian
Legislative Resolution Number 26234, Agreement of Basle
CHEMICALS AND HEAVY
METALS
OTHER RESIDUALS
Antimony Heavy metal muds or sludges
Arsenic Galvanic muds
Beryllium Paint wastes
Cadmium Solids from dust collectors
Chromium Sludge from WWT operations
Lead Contaminated soils
Mercury Catalyst fines
Selenium Filter aids and filter media
Tellurium Certain electronic components
Thallium Ashes
Tank bottoms
While some of the above materials are not common to refinery construction or
operations and maintenance, the EIA must address the possible existence or creations
of some of these solid wastes and provide for appropriate treatment or disposal. In
cases of toxic or hazardous material fixation, technology can be considered to make the
residual neutral and harmless (by oxidizing it to a non-leachable state).
1.5.1.8 Noise and Vibrations
Noise and Vibrations Supreme Decree No. 085-2003-PCM lists the noise limits as
follows:
Allowable noise levels
Area Daytime limit Night time
limit
Area of Special
Protection
50 dBA 40 dBA
Residential Area 60 dBA 50 dBA
Business District 70 dBA 60 dBA
Industrial Area 80 dBA 70 dBA
These limits will have to be met at the refinery fence line using the design and location
of the noisy units that will be included in the refinery expansion.
40
World Bank noise regulations are not as strict as Supreme Decree No. 085-2003-
PCM.
English Ref. Approve the Regulation of National Standards of Environmental Quality
for Noise - Supreme Decree No. 085-2003-PCM
Spanish Ref. Aprueban el Reglamento de standares Nacionales de Calidad
Ambiental para Ruido, Decreto Pupremo N085-2003-P CM
1.5.1.9 Planning for Disasters
Under guidelines set by The Department of Energy & Mines (supreme Resolution
Number 047-2004-EM, the EIA and the project itself must address issues related to
hydrocarbons and their transport, storage and dikes, emissions, and the potential for
gaseous or spontaneous combustion.
English Ref. Approve the Disaster Plan of Prevention and Attention of the Sector of
Energy and Mines - Supreme Resolution No. 047-2004-EM
Spanish Ref. aprueban el Plan De Prevention y Attencion de Desastres del Sector
Energia y Mines, Resolucion Suprema N 047-2004-EM
1.5.1.10 Conservation of Natural Resources
Peruvian natural resources are protected by the Constitution (Article 68). Project
modifications / modernizations at the refinery are near natural Protected Area declared
as such. The EIA will address issues of biological diversity, cultural and historical
interests as will as the countrys goals of sustainable development.
1.5.1.11 Control of Restricted Goods
While the refining industry does not normally produce chemicals that are a security risk
or usable for illegal purposes, the EIA and the project must address a display of
organic compounds (sometimes used as solvents) that fall into the category of
forbidden goods. Such materials would be covered under Supreme Ordnance Number
037-91-AG published 16.09.91 .and.Law Number 26744 published 18.01.1997.
Control of forbidden goods is addressed the Department of Medications, and Drugs
(DIGEMID). DIGEMID also is responsible for any radioactive activity. Radioactivity
does not appear to be a factor in the modernization project unless the crudes contain
(NORM) Naturally Occurring Radioactive Materials. As explained in Section 1.5.2.7.
41
1.5.2 Additional Peruvian Regulations:
The previous section of this report addressed key (National Government) regulations
for air, water and solid waste (residuals). These were contained in the first 2200 pages
of Ley General del AmbienteLey No. 28611 (15.10.2005). This section deals with the
regulations contain in the final 4800 pages of the regulations.
1.5.2.1 Oil Spills
Peruvian regulations in respect to oil spills address three spill possibilities:
Plant spills, marine transportation spills and land transportation spills. In all three
cases, the regulations suggest that spill possibilities, especially at sea, are not remote.
In that light, the EIA must carefully address the detailed requirements of the law and
even more so PETROPERU probably already has SOPs in place that deal with spills
of all types from the standpoint of both immediate response and strategic response.
Reaction training is essential, a risk assessment document should deal with what on-
site spill absorbents, and other materials must be on-hand at all times to address both
mini-spills (less than ten barrels) potential catastrophic spills. Leak protection and tank
inspections are part of a spill program (in order to identify problems before they
happen). Double hull ships are a requirement to assure bay and ocean spills are
minimized. Training should include contingency planning (as recommended by law).
Spill laws particularly address on-land loading and unloading equipment and strategies
(to include VOC control). In the case of marine spills, planning must address SOPs for
the terminal and its interface with the sea, rivers, jetties, navigable lakes and from an
equipment viewpoint: floating faucets, moorings, snub service, naval devices,
manifolds, headers, connections and there must be an active an interface with marine
authorities.
42
1.5.2.2 Construction Authorization
There are environmental considerations that must be addressed in terms of
construction and contractors used for the modernization, particularly if the companies
are not Peruvian-based. Licenses and permits are involved, and each of these must be
addressed by the EIA. Assure compliance at both the national level and at the
Provincial Municipality level.
Contractors should be aware of the potential impacts of El Nino on construction
activities and the possibility of heavy rainfall events that are possible during and after
construction. The design should include provisions to accommodate these rainfall
events without causing an environmental excursion.
1.5.2.3 Storage
The project must address Perus laws in respect to storage, storage tanks, storage
tank design and containment. This extends into special requirement for storage of
liquid propane and/or liquefied butane.
1.5.2.4 Fire Protection
Addressing fire issues may seem obtuse in respect to environmental concerns, but
Peruvian regulations do cover certain aspects of flammable liquids. Not only are the
liquids VOCs, but environmental regulators can be concerned about the health effects
of the combustion products of materials that burn. In some cases after a fire, engineers
and chemists may be required to proved a complete combustion/oxidation analysis of
everything that burned in a fire (from solvents to forklift tires). The government can use
this information to determine fines and health issues.
The plot plan spacing both within the individual units and between the units is based
on NFPA standards for safe distance from fired heaters to hydrocarbon sources both
within the units and between the units. The FEED package design and the detailed
design will determine the details of spacing within the units and arrange them to
maximize the safe spacing between hydrocarbons and potential ignition sources. The
detailed design contractor will have to run studies to assure that adequate escape
routes of adequate size are provided for personnel to avoid injury while fleeing from a
43
possible fire or explosion. The new administration building and lab are located remote
from the plant to maintain a safe distance from the processing units in case of a fire or
explosion. The exact distance required and the building design to handle the potential
over pressure will be determined during detailed design when it is possible to calculate
the amount of material that will be involved in a worst-case explosion.
1.5.2.5 Reporting Requirements
There are two types of reports that must be addressed in the EIA.
Required environmental reports that are tied to a timetable
Reports that must be submitted if there is an episode
Special conditions apply to eachandsubmission of the reports can be critical
because late reports can lead to fines or other legal action by the government.
There is also a concern (and legal requirements) tied to any solvent that can be
construed as necessary raw materials to make drugs.
1.5.2.6 Other Regulatory Environmental Issues
Electricity generation can become a part of the pollution assessment of the refinery.
One important consideration is NOx formation. The EIA should address any equipment
that operates at temperatures above 1400 F (the NOx formations temperature).
Radiation: Radiation is generally not a problem for refineries, however plant
management should be aware that uranium falls into the same valence line as calcium
and other minerals that area found in certain produced water (PW) and/or crude oil
assays. Often these metals are crusted onto the side of the tubing of the oil well but to
avoid this deposition, chemicals can be added (at the well) to keep the salts from
scaling onto the pipe/tubing. With this treatment, the salts are carried out as part of the
crude oil production. Thus, a crude oil can contain uranium salts (some which are
radioactive) that can end up as part of the refinery feedstock (rather than remaining in
the producing zone or fouled onto the production tubing). Consequently, there should
44
be periodic quantitative analysis of all crudes entering the refinery to make sure they
do not contain NORM.
1.5.3 World Bank Regulations
In respect to petroleum refining, the World Bank reference document for environmental
issues is: POLLUTION PREVENTION AND ABATEMENT HANDBOOK Toward
Cleaner Production 1998 (revised April 1999) pages 377-381 plus the April 2007
update of the Pollution Prevention Handbook.
In reviewing appropriate air pollution practices, the World Bank does not publish an
emission requirement for carbon dioxide. However, in the Banks discussion of
emission gases carbon dioxide is specifically mentioned as a pollutant that must be
addressed in the selection of boilers, process heaters and other operations that
generate carbon dioxide. In that light, the summary section of this report suggests that
the EIA address how and if the topic of carbon dioxide credits need to be addressed
for the project. If, for example, biodiesel fuel can become part of the final diesel blend,
this will not only reduce the sulfur level in the fuel, but may also lead to credit
payments.
As part of the EIA, that document must address the specific levels of pollution control
required by The World Bank for air, water and solids waste (residuals).
For air, this includes; Particulate matter, sulfur oxides, nitrogen oxides, aromatics
(BTX), VOCs, as well as hydrogen sulfide and nickel + vanadium. The latter carries a
combined value (emission total) that must be less than 2 milligrams per normal cubic
meter.
45
WORLD BANK
Allowable Air Emissions
Per tonne of Crude oil Processed
Pollutant Allowable limit per
tonne of crude
processed
Estimated Talara
Emission Level
(after expansion)
Particulate matter 0.1-3.0 kg Applies
Sulfur Oxides 0.2-0.6 kg Applies
Nitrogen Oxides 0.06-0.5 kg Applies
BTX
(Benzene, Toluene,
Xylene)
0.75-6.0 g Applies
VOC Emissions 0.5-6.0 kg Applies
NOTE: BTX values: Tabular value is approximately 0.14 grams (gr) Benzene, 0.55 gr
toluene, 1.8 gr xylene. Gram values are per tonne of crude processed. Values are tied
to Claus sulfur recovery. BACT is acceptable if better than Claus. WSA is better than
Claus and much better than Claus with a tail gas-treating unit with the H
2
O
2
unit for
additional pollution control.
Talara will meet these standards and reduce air emissions by:
Minimizing losses from storage tanks and product - transfer area by methods such as
vapor recovery systems, double seal floating roofs, double mechanical seals on pumps
and flanges and valves that have reduced leakage and by positive or negative
pressure conditions that move emissions into pollution control equipment instead of to
the atmosphere.
Minimizing SOx emissions by using state-of-the art processing and pollution control
hardware that meets Peruvian (and World Bank) standards.
Recovering and recycling catalysts back to the supplier and controlling dust emissions
46
Monitoring and limiting fugitive emissions
Keeping fuel usage to a minimum and firing below the NOx formation temperature of
1400 F. (Fuel will be low sulfur).
Utilizing stack gas monitoring (Maximum opacity level of 10%)
Create SOPS for Corrective action as well as response to emergencies
For water, the World Banks effluent guidelines for refineries are generally consistent
with Peruvian regulations. The EIA can address a side-by-side comparison (World
Bank vs. Peru) for: pH, BOD, COD, TSS, oil and grease, and nitrogen levels. In
respect to nitrogen, there are specific (more lenient) World Bank notations related to
unit operations and unit process that are not considered to add nitrogen to the water
(such as hydrogenation and amine processing).
The World Bank also addresses effluent control requirements for chromium, lead,
phenol, benzene, benzo(a) pyrene, sulfides and nitrogen. Talara will meet World Bank
standards for these pollutants as well as for temperature increases. Temperature
increases of the receiving bodies are addressed in other sections of this document,
and the conclusion is that temperature increase in the receiving waters is not a
problem. This is because of dispersion design and location of the outfall and depth and
flow of water in the sea.
Refinery wastewaters will utilize a combination of treatment equipment (Separators,
DAF units etc.) to meet World Bank regulations. Where required, separation of
different streams, such as storm water, cooling water, process water, sanitary,
sewage, etc. will compliment and be synergistic with WWT. Effluents will meet
Peruvian and/or World Bank Standards (whichever is more stringent).
47
WORLD BANK REQUIREMENTS
FOR WASTEWATER
(Achievable pollutant loads per tonne
Of crude oil processed)
Contaminant World Bank Talara
BOD 6 g Applies
COD 50 g Applies
TSS 10 g Applies
Oil and grease 2 g Applies
For solid waste, World Bank recommends that generation of sludges be kept below
0.3 kg per tonne of crude processed with a maximum limit of 0.5 kg per ton of crude
processed. This should not be a problem since hydrocarbon-based sludges and some
organic sludges can be processed to extinction in the Flexicoker. In respect to solid
waste, disposal techniques or fixation techniques must address the issue that leachate
must be at acceptable levels. Overall, the challenge of residuals (solid waste) issues at
the local or Peruvian level may be more stringent than Bank guidelines, particularly in
respect to the affect on groundwater or runoff into the sea.
It is important that project engineers understand the monitoring and reporting
requirements of The World Bankespecially if such reporting is tied to financing the
project. Address such issues in the EIA. [Also, be aware that The World Bank does not
normally finance the purchase of used environmental or process equipment].
In summary, the project will consider ISO-14000 as part of ENVIRONMENTAL
VIABILITY. In addition, the project will address World Bank emission levels and
effluent levels using the following parameters:
48
WORLD BANK AIR EMMISSION
LEVELS FOR REFINERIES
(Milligrams per normal cubic meter)
Parameter Maximum value Talara
Particulate Matter
(PM)
50 Applies
NOx 460 Applies
SOx 150 for sulfur
recovery units; 500
for other
Applies
Nickel & Vanadium
(combines)
2 Applies
Hydrogen Sulfide
(H
2
S)
152 Applies
49
WORLD BANK EFFLUENT REQUIREMENTS
(Milligrams per liter)
Parameter Maximum Value Talara
pH 6 - 9 Applies
BOD 30 Applies
COD 150 Applies
TSS 30 Applies
Oil and grease 10 Applies
Chromium

Hexavalent
Total
0.1
0.5
Applies
Lead 0.1 Applies
Phenol 0.5 Applies
Benzene 0.05 Applies
Benzo(a) pyrene 0.05 Applies
Sulfide 1 Applies
Nitrogen (total) 10 Applies
Temperature
Increase
Equal or less than
3C
Applies
NOTE: Peruvian regulations for temperature increase is equal or less than 2.5 C
50
1.6 Define Concepts to Control & Treat Pollutants
In considering expansion feasibility, environmental issues are addressed in this report
using root cause analysis, or, more specifically, unit-by-unit pollution potential for air,
for water and for solid waste. In the case of air, fugitive emissions (non-point-source)
are part of the analysis.
Air pollution associated with the Talara Refinery includes: VOCs, SOx, NOx, COS and
particulates. The report also considered the presence of carbon monoxide (CO),
ammonia (NH
3
), hydrogen sulfide (H
2
S), and other organic and inorganic emissions to
include all toxic and hazardous gases.
Wastewaters from the refinery include an analysis of once-through ocean -cooling
water and effluents from process units, cooling systems, stormwater and sanitary
sewage water. Sanitary sewage water is treated and reused as irrigation water.
Controlling contaminated water containing BOD, COD, TSS, TDS, NH
3
are specifically
addressed as WWT issues. The study considers affects of pollutants on biological
treatment.
Solid waste residuals include: tank bottoms and sludges (to include heavy metals),
emulsions, dissolved oil and greases, heavy hydrocarbon residues and hazardous
waste, contaminated soils, used oils and lubricants, paint and solvent wastes sludges,
and waste chemicals. Solid waste also includes non-hazardous solids such as trash
and scrap materials from operation and maintenance.
In addition to standard pollution control procedures, the environmental assessment
includes the potential of accidental discharges of large quantities of pollutants that may
occur because of abnormal operations, equipment failure or human error that
potentially poses a major local environmental hazard.
All environmental issues are addressed in respect to local laws, Peruvian standards
and World Bank regulations.
51
1.6.1 Addressing Air Emissions
The expected air emissions are listed and summarized for all pollutant sources in the
Appendix section 1.11.2.
All furnaces and boilers installed as part of this project will utilize low NOx burners to
reduce, if necessary, the NOx to about 48 ppm or less in the flue gas. The use of
Flexigas in the heaters will reduce the flame temperatures in the heaters, and thereby
reduce the NOx generated.
The SOx emissions will be controlled on heaters by removing the sulfur in the fuel prior
to combustion. The removed sulfur will be converted to sulfuric acid for sales.
Vapor recovery will be provided on the ship loading and unloading to minimize VOC
pollution. The oil/water separators will all be covered to reduce VOC emissions.
Volatile products, such as gasoline, and crude oil will be stored in double seal floating
roof tanks to reduce emissions. High vapor pressure liquid products, such as LPG will
be stored in pressurized tanks.
The less volatile products and recovered oil will be in cone roof tanks with
conservation vents to reduce VOC emissions. The process pumps will be equipped
with mechanical seals and flanges and valves will be inspected and maintained on a
regular schedule to reduce VOC emissions.
Sulfuric acid tankage and ship loading vents will be routed to scrubber(s) that will
remove most of the acid fumes and the resulting acidic water will be routed to
wastewater treatment where it will be neutralized prior to disposal.
In summary, in respect to gaseous emissions there are three major considerations.
The first is Volatile Organic Compounds (VOCs). The second is Sulfur Oxides (SOx),
and the third is Nitrogen Oxides (NOx). VOCs will be controlled for gasoline and crude
oil by the floating roofs on the volatile products within the refinery tank farm, which are
all being currently upgraded to double seal floating roofs. VOCs will be further
controlled by adding double mechanical seals to all hydrocarbon pumps, which is
52
currently taking place and will be included on all new pumps. SOx will be controlled by
the removal of most of the sulfur compounds from the fuel gas streams in the refinery.
These sulfur compounds will be converted into sulfuric acid. NOx will be minimized by
the extensive use of Flexigas within the refinery. The Flexigas will burn with a lower
flame temperature, lowering the NOx production within the facility. If it is necessary,
the existing burners within the refinery can be converted into low NOx burners to meet
the emission requirements. All new burners will be low NOx burners.
In respect to air pollution control, in all cases, the project will consider:
Fugitive emissions (From tanks, valves, flanges, pumps etc.)
Stack emissions
Flare Operations and emissions
Other air pollution control techniques applicable to the refinery process units (e.g.
collection of catalyst fines from those units that require catalysts)
1.6.2 Addressing Water and Wastewater Issues:
SEAWATER: An important consideration for the project is seawater both intake
seawater and seawater discharge.
The seawater intake is currently located in Talara Bay and is capable of taking in sea
life since it is only protected by a screen with 5 cm openings. The current system is
proposed to be replaced with a deeper sub sea system located in the Pacific Ocean
using the recommended maximum 0.15 meters/sec (0.5 ft/sec) velocity required by the
US EPA and will use heavy duty intake screens that have slot openings of less than 5
mm and possibly velocity caps as defined by the US EPA.
The low velocity will provide a mechanism for mobile sea life to swim away from the
intake screens since they will naturally avoid an artificial current such as seawater
intake screens. The sub surface intake(s) will also be protected with Medusa (large
jellyfish) fences to keep the Medusa from plugging the intake structures. This will
reduce potential damage and impact on the sea life in both Talara Bay and the Pacific
Ocean. The seawater will be used for cooling the process either directly using titanium
53
tube heat exchangers or using titanium plate heat exchangers to cool an intermediate
cooling fluid where no process contact is possible.
The warm seawater will be discharged into the Pacific Ocean to avoid impacting the
sensitivity of Talara Bay. It will be at a location that will not short circuit to the intake
structure (probably north of the inlet to take advantage of the Humboldt Current). The
only other material mixed in with the effluent that has not been treated and sampled is
the reject brine from the desalination plant. The desalination plant takes the warm
seawater as a feedstock, to produce desalinated water. The rejected water is higher
salinity brine that is mixed with the other warm seawater for discharge into the ocean.
At this time, no bathymetric study is available at the Talara site detailing subsurface
topography. There is currently no available information on Talara Pacific Ocean tides,
currents, water temperature and seasonal variations. This information will assist in
determining the length and location of the seawater intake line. For the purposes of
this estimate, it is assumed that the line will extend about 300 meters to the seawater
intake structure, and, the intake sump will be located on land, approximately 100
meters from the shoreline.
Cooling water could potentially have hydrocarbon contamination if there are leaks in
heat exchangers or other processing equipment. All tubes of heat exchangers with
hydrocarbons using seawater cooling will be titanium to mitigate potential leaks.
[Titanium reduces corrosion that, in turn, can lead to leakage. Choosing this corrosion-
resistant metal is an environmentally sound practice].
In addition, to assure that no pollutants reach the receiving waters, oil-water sensors
will monitor the once-through cooling water to identify if and when oil is present in the
effluent. Engineers performing the EIA can address the remedial Standard Operating
Procedures (SOPs) tied to monitoring and control of cooling water effluent. Analyzers
will identify if a leak occurs. On-line quality control procedures integrated with
laboratory analysis will enable operators to determine where the leak is located so that
immediate remedial action can be taken. The monitoring system can be fitted with
alarms.
54
The offending heat exchange will be isolated, and, any tainted discharge can be routed
to the area drains where the effluent can be treated in the Corrugated Plate Interceptor
(CPI) separator system prior to discharge.
The warm sea water from the cooling system will be discharged directly to the ocean,
with the warning that analyzers to detect oil will be placed in the stream to determine
whether oil has entered the stream, the location will be determined by testing the
discharge water at key locations throughout the facility to isolate the leaking heat
exchanger. Cooling water circulation will be in a closed loop that goes from the Pacific
Ocean to the heat exchangers within the refinery, and then back to the Pacific Ocean.
A slip stream of warm water will be diverted into the Reverse Osmosis plant to make
the desalinated water required within the plant. (A higher temperature improves the
operation of a reverse osmosis unit.) The Reverse Osmosis concentrate will be
discharged with the seawater cooling. The seawater for cooling will be chlorinated to
control the growth of biological material in the refinery since this will be once through
cooling the chlorination will be at a low residual level. The warm seawater will be
analyzed continuously for hydrocarbon contamination which detection of hydrocarbons
will be alarmed for remedial action. The seawater will be aerated prior to discharge to
reduce residual chlorine to acceptable levels.
OTHER WASTEWATER STREAMS: All other plant wastewater streams will be
isolated to be treated and discharged separately from the warm seawater. These
other water discharge streams will be cleaned to World Bank standards and be
analyzed prior to discharging.
PLANT WASTEWATER: The plant has several types of potential wastewater pollution
sources they are:
Other Sources of Water Pollution
Continuous oily wastewater
Potentially contaminated storm water
Spent caustic
Other chemical wastewaters
55
These wastewater streams will all be treated to World Bank standards prior to being
discharged. Maximum use of waste minimization and source treatment will be used to
reduce the load on the treatment systems and increasing their effectiveness.
Each wastewater stream that will potently contain hydrocarbons will be treated as
close to the source as possible using oil/water separation technology and oil skimming
that will recover no more than 5% water and the balance oil. Using this skimming
equipment will leave only small quantities of oil in the oil/water separators. These
separators will be covered to control Volatile Organic Compounds (VOC) emissions.
Monitoring equipment will be installed down stream of all oil/water separators to detect
oil concentrations that exceed World Bank Standards. Some oil/water monitor brands
are Slick Watch by Ionics or Oil monitor from Analytical Systems International.
OTHER SOURCES OF WATER POLLUTION: The unloading crude of ships uses
offshore mooring dolphins to unload through two 12 sub sea lines. These lines are
currently being flushed with seawater after unloading each ship to mitigate the
possibility of oil leaking into the sea. The lines are left full of seawater between ship
unloading events. The seawater in the line is pushed into the crude tanks when the
next ship is unloaded. This generates more water to be drained from the crude oil
tanks prior to processing the crude in the refinery.
This situation will be corrected by PETROPERU with a separate project of replacing
the 12 sub surface lines with 20 sub surface unloading lines and a seawater capture
and reuse system. This will reduce the seawater that is added to each load of crude
unloaded and reduce the amount of water that needs to be drained from the crude
tanks.
STORM WATER RUNOFF: The Talara area (and the refinery) lies in an arid plane that
receives less than three inches of rainfall annually. It would seem that rainfall runoff
would not be a problem in an arid location. However, all runoff which can occur during
a heavy rainfall will be collected and sampled prior to discharge if it has the potential to
be contaminated. This is addressed in the individual units that will include sumps to
catch and wash down water or rainfall runoff and send it to be treated prior to
discharge. This will be an issue for consideration in the EIA. Storm water will be
56
contained and tested and treated prior to discharge as required to assure that runoff
will be within the required discharge limits.
.
TANK LEAKS: The tank farm storage tanks are all adequately contained to handle a
single tank rupture in each dike and each dike is being lined with concrete to reduce
the risk of contaminating the soil and ground water under the tank. All new tankage
will be contained and the containment area will be lined with concrete or a water proof
impervious liner to meet Peruvian regulations.
WASTEWATER TREATMENT (WWT): The current refinery wastewater treatment
consists of American Petroleum Institute (API) separators and Corrugated Plate
Interceptors (CPI) separators. The separators are not covered and have large
amounts of oil floating on top. A CPI Separator is receiving spent caustic from the
caustic wash operation that contains soaps from the caustic soda and the naphthenic
acids in the oils. This causes partial emulsification of the oil and water.
The water and oil drained from the crude oil tanks is routed through a flooded sewer by
gravity to the main CPI Separator, causing the CPI Separator to be overloaded with oil.
The API Separator receives oily water from the process units including the desalter
after it passes through a CPI separator dedicated to the desalter effluent and the
seawater used for process cooling. This hydraulically overloads the separator, and is
the cause of the large amount of oil found on this unit.
Currently, split pipe skimmers are located on both the API and CPI Separators.
These skimmers skim off the oil and take large amounts of water with the oil. New oil
skimming technology using oilphilic tube shimmers will be installed to limit the amount
of water that is mixed with the recovered oil. This will not only facilitate oil recovery
(and its recycle) but will also reduce the energy input and size of the WWT system.
The current configuration for the existing API and CPI Separator will be completely
reworked. The old API Separator will be demolished and the CPI Separator will be
refurbished to include a cover to reduce VOCs and oilphilic tube skimmers. The feeds
will be segregated so that feeds containing large amounts of oil are treated separately
to remove the gross quantities of oil. The water sent to the separators should not have
more than a slight sheen of hydrocarbon. The water from the desalter and the tank
57
farm will be centrifugally deoiled to a 10 ppm level. The water from deoiling the
desalter and tank farm will be sent to CPI separators and finally to a common
Dissolved Air Flotation (DAF) unit prior to discharge directly to the ocean. The
recovered oil will be suitable for recycling to the oil feed tanks.
The process water will use oil-skimming technology such as oilphilic roll or oilphilic
tube skimmers.
The water from the caustic treatment area will be acidified to break the emulsion,
separate the oil and water, and then pH adjusted to meet environmental standards.
OIL RECOVERY & REUSE: Currently oil is recovered in the API and CPI Separators.
The recovered oil is placed in a storage tank and re-used as feed stock. In the current
system, there is not enough retention time for the oil and water to separate causing the
retained oil to build up. The presence of salt water with oil and the inclusion of dust
and dirt from the open separators increase the severity of the separation problem by
causing dirt and salt stabilized emulsions. This makes the re-use of the recovered oil
possible, but difficult.
Normally heating, chemical addition, and increased retention time would improve the
performance of the oil recovery system based on past refinery operations. However,
to make the system cost effective and more effective segregation of wastes and
collecting oil without collecting large quantities of water is more effective at cleaning up
the wastewater prior to discharge. Handling the chemical waste separately to keep the
emulsifiers out of the oil recovery system will also improve its performance. It is
recommended that wastewater streams be segregated, and that a new oil skimming
system be installed on streams with lesser amounts of oil to decrease the amount of
water that is recovered with the oil to less than 5% water.
The water from both the tank farm and the desalter will be treated separately in
centrifugal separators to meet effluent specifications, and will not flow through the
existing CPI separator. Both the old and any new separators will be covered to
prevent VOCs from escaping into the air. All of the oil/water separators will be covered
to reduce VOC emissions. The covers will also keep dust out of the oil and/or water.
58
A pair of small CPI separators will be provided for the process area to remove oil from
wash down and rain water. Several different oil analyzers will be installed to locate the
source of any off specification discharge water.

The exact configuration and location for each analyzer centrifuge, and separator will
be determined during the FEED package and detailed engineering.
CHEMICAL SEWER WASTEWATER TREATMENT: Chemical sewer WWT will be
determined and detailed during the FEED engineering phase of the project. There are
several options for the treatment of spent caustic. The amount of spent caustic will
increase in quantity after the refinery modernization is completed and operations begin
at the new, higher capacities. The current practice of doing a simple gravity separation
and releasing this material will not be adequate after the expansion because
environmental control measures must follow World Bank and Peruvian Standards.
The refinery is currently upgrading the kerosene caustic treating. This upgrade will
reduce the quantity of the load on the chemical sewer system, but it will also improve
the quantity of wastewater that needs to be treated.
When one considers in-line WWT there is the potential to use low-energy static mixers
to facilitate treatment. Static mixers consist of a sequence of stationary guide plates
that result in a systematic, radial mixing of fluids flowing through a pipe. The flow path
follows a geometrical pattern, precluding any random mixing. The mixing operation is
completed within a very short flow distance.

In contrast to stirred tanks or empty pipe systems, static mixers ensure that the
complete fluid stream is subjected to compulsory or enforced mixing or contacting.
The energy required mixing or for mass transfer is taken from the main stream, which
is taken by a slightly higher-pressure drop than found in a comparable empty pipe
system. This pressure drop depends on the design of the mixer, the properties of the
fluids being mixed, and the operating conditions. This pressure drop is generally 0.02
3.0 Meters of Water Gauge (mwg). The energy requirement of static mixers is at
least an order of magnitude smaller, as compared to agitator systems. The energy is
evenly dissipated throughout the entire mixer volume.
59
In the Talara Refinery chemical sewer configuration, the static mixer will be placed
upstream of the CPI Separator to be used in the adjustment of pH. Downstream of the
static mixer, a pH probe will be used to control pH of the stream to 4 or less to spring
the naphthenic acids from the soaps, and break the emulsion. Oilphilic tube skimmers
in the CPI system will then finish separating the oil from the system to assure that the
oil in the discharge is within the discharge requirements. To understand the total
wastewater treatment system, refer to the process flow diagram in the Appendix
1.11.1.
In summary, the water from the refinery will be segregated into three different groups.
GROUP #1: The oily water from the desalter is normally about 5% of the crude charge
or about 45000 bbls/day of desalter water. Since the crude is high in salts, the flow will
be higher, as shown in the following table. This water will contain high levels of oil,
dissolved organics and salts after treating in the existing deoiler.
The levels expected from the existing deoiler, factoring in the capacity increase range
as follows, depending on operation of the deoiler and the crude.
Flow 190 to 270 gpm
Oil & Grease 100 to 1,000 ppm expected with additional flow
COD 350 to 4,000 ppm, based on current range
Salts 25,000 to 50,000 ppm
pH 6 to 8.5
Tank farm drainage from crude tanks this water will be generated as it is now, with
varying flows dependent on manual tank drainage practices.
The properties of this stream will range as follows, prior to treatment.
Flow 0 to 2,500 gpm
Oil & Grease 100 to 100% crude oil
COD 350 to 4,000 ppm
Salts 50,000 ppm
pH 6 to 8.5
60
GROUP #2: The oil and water from the process units will be caught and processed
through the existing CPI separator. The work of this separator will be augmented by
tube skimmers to remove the last bit of oil before going into the DAF unit and then to
the outfall.
The properties of this stream will range as follows, prior to treatment.
Flow 10 to 3,100 gpm, based on 2 cm/hr rain fall (dependent
on paved area estimated at 1,400,000 sq meters)
Oil & Grease 0 to 1,000 ppm at units
COD 25 to 150 ppm
Salts 10 to 500 ppm
pH 6 to 8.5
GROUP #3: The water in the chemical sewer will be acidified to a pH of 4.0 or less to
spring the oil and break any emulsions. The acidified water will be sent to a CPI
separator. After the CPI separator, the pH will be adjusted to 6.0 to 8.5. The process
unit drains will be sent to the modified existing CPI Separator. This will reduce the oil
content of the water effluent to below the 10 ppm level. By mixing the CPI separator
with the centrifugal oil/water discharge in the DAF, the plant effluent will be below the
10 ppm oil limit.
The levels expected, prior to treatment area, depending on the unit operation.
Flow 205 to 300 gpm,
Oil & Grease 20 to 1,000 ppm
COD 500 to 5,000 ppm
Salts 0 to 10,000 ppm
pH 10.0 to 13.0
The pH of the water effluent must be between 6.0 and 8.5. The effluent from the
refinery will easily be within these limits.
61
1.6.3 Solid Waste (Residuals):
The amount of solid waste generated by the refinery will consist of the following:
Oily sludge from oil/water treating, tank bottoms, and other non-leaded sources can
be disposed of in the Flexicoker.
Spent catalysts which will be returned to the suppliers for reprocessing or disposal
Empty chemical drums or containers which will be sent back to the original supplier
for reuse or disposal
Mixed oils from lab operations which will be recycled in to the crude tanks for
reprocessing
Scrap metal from maintenance operations, which will be recycled for scrap value.
Non-hazardous office, lab, food, and maintenance waste which will be disposed of
in a local municipal disposal site.
Hazardous waste from maintenance operations like used oil can be disposed of in
the crude tanks.
Hazardous waste other than used oil such a oil filters, oily rags, oil dry, solvents,
paint and other miscellaneous hazardous waste will be disposed of in a hazardous
waste incinerator or licensed hazardous waste land fill.
Radioactive waste form level detectors and other sources will be disposed of in
licensed radioactive waste facility. It is possible with Radar level gauges that
additional radioactive level detectors will not be used in this design.
All used lumber, and chemical containers will potentially be contaminated they will be
disposed of using secure disposal sites that assure that they will not be recycled in the
community with potential ill effects to the community. It will be the responsibility of the
refinery to police the disposal of all solid waste and only allow clean streams of waste
to be recycled.
62
1.6.4 Other Considerations (Noise, Radiation, Odors, etc.)
Neither noise, vibration, nor radiation is currently considered a problem at the refinery
at this time. To assure that there are no significant noise increases under the
modernization program, purchases of equipment will be within work place noise
limitations as part of the purchase order. All equipment must be within the work place
noise limits of Perus National Regulations (Section 1.5.1.8 of this report) and as noted
in Ley General del AmbienteLey N28611 and Decreto Supremo N085-2003-
PCM also World Bank regulations on noise apply.
The new refinery units that will contain major noise sources will be located near the
existing refinery and will be shielded by both distance and large storage tanks from the
community. The only portion of the project that will not be handled by distance and/or
shielding will be the loading of coke on the ships and moving of the containers to and
from the dock. This will be mitigated using mufflers on the truck engines and using low
emission diesel engines on the cranes loading the containers on the ships and to
remove them from the trucks.
The other area of possible noise pollution to the community would be the new
emergency flare on top of the small hill in the refinery. This will have to be addressed
during detailed design to make sure it does not exceed the nighttime noise levels for
the community or is exempt since it will only be used at full rate in an emergency.
Noise levels in the plant related to work place noise and will be limited by design,
shielding, or by designating mandatory hearing protection areas due to high noise
levels.
Construction noise may be a problem and will be the responsibility of the construction
contractor who may have to consider doing noisy operations only during the day time
and using mufflers on equipment and muffling the piling for new dock facilities.
As a protection against existing ambient noise from other sources, it is recommended
that PETROPERU take ambient noise readings in and around the plant prior to start of
63
construction to make determine a noise base line. This will protect PETROPERU from
existing noise sources that may put the project over the allowable limit.
It is also recommended that a predicted noise model be run on the new facilities during
detailed design to make sure it will not exceed the allowable noise limits when the unit
is built. The noise model should take into account not only the distance but also the
impact of shielding from tanks and buildings.
Information on radiation is also covered in Section - 1.5.2.6 of this report.
Any odor emanating from the refinery is the result of a VOC or sulfur compounds.
Control of odors is therefore consistent with control of VOCs and in the particular case
of sulfur emissions; the sulfur-related technology being considered in the
modernization is well within the Best Available Control Technology (BACT) for all types
of sulfur-containing gases.
1.6.5 Summary of Concepts to Control and Treat Pollution
Previous paragraphs addressed the volume and quantity of emissions, effluents and
residuals. This section (following paragraphs) summarizes certain aspects of
technology selection, optimization and verification.
1.6.5.1 Air Emissions
There is a summary of air emission data found in the Appendix of this report. VOC
tank emissions were calculated using EPA Tank-emission software Tanks version
4.0.9d. It was discovered that the software tanks 4.09d did not handle floating roof
tanks under 100 feet in diameter. This inconsistency was corrected by factoring the
emissions from the tanks under 100 feet in diameter. The equipment covered by this
report includes: compressors, storage tanks (kerosene, crude oil, jet fuel, diesel fuel,
gasoline, and other liquid fuels, feedstocks or intermediates), turbine systems, loading
racks and other equipment that has the potential to emit VOCs.
Fugitive VOC Emissions were included as part of the air emission calculations.
Standard emission factors were used in calculating air emissions. These factors and
other basis for the air emission calculations are found in the Appendix of this report,
64
SUMMARY OF AIR EMISSIONS. The basis of the calculations for air emissions
(including fugitive emissions) are found in Section 1.10.
NOx considerations were part of the analysis for modernization, and control of NOx is
addressed by selecting heating equipment (furnaces, boilers, etc. that can operated
below the NOx-formation temperature of 1400 degrees Fahrenheit or operated with
low NOx burners. In preparing the EIA, the NOx emission potential will be considered
for every piece of fuel-burning equipment.
Of particular importance in control of air emissions and plant safety is a properly
operating relief and flare system that can safely vent and flare gasses and liquids in an
upset condition. This is why the new flare is tentatively located on top of the hill away
from refinery operations and higher than the main refinery allowing the relief lines to all
to slope into a relief drum and then run up to the flare with out any liquid trapping
pockets. This design without any pockets in the lines will provide a safe relief system
that will provide an environmentally acceptable method of disposing of excess
pressure on towers and vessels during abnormal operating conditions.
The existing flare system may be undersized for the current operation, and it will be
undersized for the modernization and expanded refinery. Currently there are no
overhead flare lines tied to the distillation towers. The flare system handles all
emergency relief valves or rupture disks, these must be re-evaluated in light of refinery
changes, which will increase the throughput in existing equipment, and new methods
of calculation flare loads based on the current API 521 standard, which was revised
after the existing units, were constructed. A knockout drum to separate liquids from
vapors (prior to flaring) is required.

In the new flare system, the piping will be designed to maintain either a positive
pressure or it will be purged with either Flexigas or an inert gas to assure no oxygen
enters into the system. There are several flare systems available, but the
configuration chosen must match the requirements of the new refinery units and be
smokeless. There are several aspects of flare selection (discussed in more detail in
the General Facilities Section of the Final Report). These factors are:
Flare Gas Recovery System (to recover usable energy)
65
Steam-assisted flaring (to water gas shift and mix incoming gases for
smokeless operation)- lowest cost option used in the study
Staged flaring (to utilize available pressure to provide smokeless flaring)
1.6.5.2 Water Effluents
The wastewater treatment plant will be expanded and upgraded under the refinery
modernization program. The new system will consist of a series of high efficiency
hardware and isolation of streams that will be utilized to treat:
Desalter water
Tank water draws
Unit wash water
Chemical sewer water
Sea water (used for once-through)
The system is integrated and sized to handle; Solids (particulate) removal, treatment of
dissolved organics and to treat or control minor pollutants if required by regulation.
(See Appendix 1.11.4)
While minimal pollution is expected in the combined single seawater outfall, the EIA
can address how additional (higher) flow rates and/or temperature rise will affect the
receiving bodies. The incoming seawater from the Pacific Ocean will exclude all
mobile fish and sea life which will successfully avoid the intake screen with a velocity
not to exceed 0.5 ft/sec with the screens and all currently, it is expected that the
temperature rise of the receiving bodies will be virtually unaffected. This is because of
the location of the discharge pipe and because the temperature rise due to once-
through cooling is expected to be less than 20 F. If the intake is from Talara bay the
expected temperature rise can be in excess of 40 F in the summer time and may
exceed the 2.5 C mixing zone limitation. The disch arge stream will be dispersed into
the sea to provide adequate mixing with the seawater as to not short circuit and come
back to the inlet or increase the temperature at the discharge more than a few
degrees. A slight temperature increase in the seawater will increase the fish
66
population in the immediate area due to the increased food supply from algae and
other smaller sea life whose growth will be stimulated with the increased temperatures.
Most of the heavy metals in the crude will leave the process in the coke except
selenium, which is present in the crude and increases as the sulfur levels in the crude
increase. The current Peruvian regulations of 0.05 mg/l of selenium in ocean
discharge will not be reached with the wastewater if it is biologically treated since
biological treating will remove 60 to 80% of the selenium present in the wastewater.
The only potential source of this metal is from the stripped sour water, which is used
for the desalter.
For purposed of an estimate the amount of wastewater generated by refinery units,
one can consider the following information:
1.6.5.3 Solid Waste (Residuals)
The major source of solid waste generated by the modernized refinery will be spent
catalyst. However, under agreements with the catalyst manufacturers, PETROPERU
has and will negotiate a cradle-to-grave concept for spent catalyst. The suppliers will
be responsible for picking up spent catalyst and reworking it (or disposal) so that that
residual is not a consideration in terms of land disposal.
There will solids related to the periodical change-out of caustic in the sodium hydroxide
treater and there is no cooling tower blowdown or sludges related to the cooling tower
is eliminated by using once-through cooling.
Some disposal considerations may have to be given to handling spent cartridge filters.
Depending on the contaminates in these filters they may be hazardous and may have
to be disposed of in hazardous waste landfills. While some refinery waste (garbage
and miscellaneous waste) can go to a standard landfill, processing sludge and any
toxic or hazardous waste will be addressed by an updated detailed WASTE
MANAGEMENT PLAN as follows.
67
TALARA SOLID WASTE MANAGEMENT PLAN
CONTEXT:
The expansion project will generate solid waste during construction and during routine
plant operations and maintenance. Some waste will originate from processing units or
from environmental processing. Both general waste and toxic and hazardous waste
are addressed as feasibility issues to include where the waste is produced (generated)
and the specific disposal requirements for each waste. Licensed landfill will be used for
wastes moving offsite. Very little process waste will be moved offsite because these
materials can be fed to the coking unit.
PURPOSE AND SCOPE:
The Talara waste management plan applies to all project construction wastes, also
operations, and maintenance wastes. For the purpose of this plan, engineers will
address both hazardous and non-hazardous waste and wastes that are toxic (due to
heavy metal content or chemical contamination). Catalyst wastes are not a
consideration because catalyst suppliers have accepted cradle-to-grave disposal
and/or recycle.
LEGISLATIVE AND POLICY REQUIREMENTS:
In respect to residuals, the principle environmental objective for waste management is
to assure that liquid and solid wastes (to include sludges) do not adversely affect
groundwater, surface water or ocean water quality nor lead to soil contamination of
any kind. All Peruvian and World Bank requirements are considered as part of the
plan.
The project will address legal requirements for solid waste (residuals) to include waste
reduction issues (particularly at the unit level), treatment of soils that may become
contaminated with hydrocarbons, collections of runoff (with attention to leaching),
68
direction of both contaminated and non-contaminated water to avoid solid
contamination (that, in turn, could lead to solid waste issues).
The expansion will address all licensing and permitting requirements with a specific
goal to, as much as possible, reclaim, reuse and recycle solid waste generated on the
Talara refinery site
EXISTING SOLID WASTE COMMITMENTS:
Existing commitments include:
Continuing the philosophy of waste minimization
Promoting reused and recycling where practical and economical
Operating refinery solid waste facilities in a manner that protects the values of
surface and ground water
Investigate practical alternatives for on-site reuse
Investigate alternatives for recycling waste oil
Ongoing communication with local community leaders to assure the refinery
remains an asset to the community
Commitments after the expansion include:
Identify and quantify all project waste
Identify and quantify all process waste
Minimize the generation of waste at the unit level
Monitor waste volumes (mass) and disposal methods
Consider state-of-the art methodology to handle toxic or hazardous waste
Continually evaluate the economics solid waste alternatives
69
An example of economic considerations would be to consider fixation schemes that
would neutralize toxic or hazardous wastes so that they would be suitable for standard
general disposal.
POTENTIAL IMPACTS / ENVIRONMENTAL OBJECTIVES:
Address activities or aspects of the proposed expansion so that they will have minimal
impact on:
Disposal of waste to alleviate or prevent surface water from contaminating ocean
water, ground water or reaching soils.
Assure there is no accumulation of large volumes of waste that is either unsightly
or is a potential for rodents
Assure disposal of residuals in an acceptable manner
KEY PERFORMACNE INDICATORS:
The effectiveness of waste management for Talara will be indicated (through
recordkeeping) against performance parameters that include:
Reduction in generation of waste
Landfill storage volumes
Disposal costs for each type of waste
Volume of contaminated materials from each unit operation
Volumes of solid waste from every environmental operation
Monitoring surface and groundwater quality
Performance against corporate minimization targets
Positive interface with government environmental officials
Meeting or exceeding permit levels
Creating and passing SOP for residual housekeeping
70
MANAGEMENT PRIORITIES:
Specific priorities relate to management of all types of solid waste by:
Identification and quantification of types of waste (waste characterization)
Source segregation of wastes
Maximizing the re-use and recycling of waste
To the degree possible, turn waste into saleable product (this may involve novel
aspects of using the new coker)
Minimizing disposal of waste to landfill
Reduction of packaging and consumables purchased for operating and
maintenance
Expand Vendor return policies (already being considered for catalysts)
MANAGEMENT PLANNING AND CONTROL:
Establish waste minimization teams that have the responsibility for facilitating waste
minimization programs. These teams will have the objective of reducing both office
and industrial waste and increasing recycle. The waste minimization teams will accept
responsibility for the corporate targets of PETROPERU.
Storage, handling and disposal of waste will be managed to ensure that the risk
contamination of soil, source water or groundwater is both monitored and minimized
through bundling or containment. The entire refinery site will be operated to minimize
any off-site impacts.
At the refinery, all runoff from unit process area will be treated to remove oil wastes.
The WWT facility is designed to accommodate treatment of each waste that is
expected under the higher operation rates of the refinery.
71
Contingency measure will be put into place that will address collection, containment
and redirection of waste should monitoring indicate a leakage or spillage has occurred.
Monitoring of the Talara waste management program includes volume surveys,
residual disposal techniques, shipping and containerization of wastes (especially
hazardous material that may leave the site). An important aspect of solid waste
disposal and handling of residual includes monitoring water quality to include
monitoring wells as required.
Talara will report waste management information in an Annual Environmental
Assessment Report to include minimization measures, waste volumes, landfill
volumes, reductions of waste (year-to-year) and, finally, annual water quality
comparisons.
72
1.7 Estimate Footprint & Investment Requirements
As part of the ENVIRONMETAL VIABILITY assessment one must consider the land-
footprint requirements and its effect on the environmental aspects of the project. One
must also consider investment requirements, and, define the estimated dates for
completion of the Modernized Refinery:
1.7.1 Land Footprint
In respect to the overall land footprint and the plot plan, the following facilities must be
considered during (FEED) and in EIA planning: These include: the control room,
laboratory, administration building, the existing and new (larger) flare system, the cargo
dock, and WWT facilities to include API and CPI separators. These are discussed
below. Specific to environmental, the primary land requirements are for the WSA plant,
the WWT facilities and the amine unit.
The control room final location will have to be determined by the FEED contractor after
the results of a disaster model is run on the new and existing units. This will determine
the impact of the worst-case explosion on the control room. At that time, the control
room will either have to be located at an adequate distance or the structure will have to
be constructed to withstand any over pressure from the worst-case explosion.
The lab and administration building are located remote from the new and existing units
and their location too will have to be reviewed to assure the safety of the occupants,
which is enhanced by the existing warehouse, which will act as a shield and the
distance form the units.
The existing flare and relief valves will have to be reviewed by the FEED or detailed
engineering contractor to determine if they are adequate for current regulations (API-
521) and the increased capacity.
The new flare can be a simple pipe flare with steam for smoke control located on top of
the hill using a 100 meter radius for thermal radiation. The exact size of the radius will
be determined during detailed engineering based on flare loading and stack height.
73
The fishing dock which was the original cargo dock will be used to load out containers
of coke and is shown approximately on the plot plan. Containers will be moved form
the Flexicoking area to the dock area by truck.
The existing API separator will be taken out of service and replaced with a segregated
sewer system using modern oil/water separation technology that will use less energy
and produce higher quality recovered oil while meeting international and US standards
for vapor control for oily water separators. If the refinery will meet US EPA standards a
biological treatment plant will be required in the area shown as available for additional
process units near the sea. A biological treatment facility will require at least a three
day retention pond (must consider footprint and lining in EIA and FEED) where the
wastewater can be buffered with lime or limestone if required since treating
contaminated desalinated water in a biological treatment unit will cause pH drifts form
carbon dioxide production that will kill the biological material that provides the
treatment.
The environmental-equipment footprint needed for the expansion is approximately
42,000 square meters (not contiguous). Totally, the WSA unit, the WWT unit and the
amine unit will require approximately this amount of square footage.
1.7.2 Investment in Environmental
The environmental investment projections are included in the overall capital
investment required for the modernization. The current estimate is that environmental
capital investment will be about $11 MM. It can be argued that the WSA unit should
be added to this number, which would be about $28 MM, and the amine unit should be
included along with the Flexicoker. When including units that are considered
environmental investment it is possible to argue that with the exception of increasing
the refinery through put all the units that produce low sulfur motor fuels and reduce
residuals that would otherwise end up as high sulfur fuel oil and make them into low
sulfur fuel gas and products are environmental investments. If this logic is used then
most of the investment is environmental.
74
1.8 Provide a General Diagram of the Plant and Processes Used to Control
Emissions, Effluents and Residuals
In the analysis one must also Include the Plant Flow Diagram in the Appendix 1.11.3
as part of the Feasibility Study plus address issues of equipment and process
selection as well as environmental (or other) emitting of each process. One must
assure that under all regulatory guidelines that the technology will assure the
expansion meets national and international regulations.
75
1.9 Summary and Present Conclusions Related to the Project and Identify
Measures that will Affect Construction
While ENVIRONMENTAL VIABILITY is a serious issue for any refinery or
petrochemical plant, there are a number of favorable factors when considering
modernization:
Processes have become more efficient in controlling pollutantsgaseous, liquid and
solid. For example, A Wet Sulfuric Acid (WSA) sulfuric acid plant can now reach sulfur
emissions down to 150 ppmv or lower. (World Bank requirement). The US EPA
standard is 250 ppmv of SO
2
for a sulfur recovery plant with an incinerator. Thus, the
WSA process is better than EPA requirements. This technology is noteworthy and it is
being used for the expansion project being considered.
Equipment is available that greatly extends on-line time: This translates into extended
MTBF (Mean Time Between Failure) or MTBC (Mean Time Between Change outs).
High-volume, large-scale, pleated cartridge filters for amine plants dramatically reduce
filter costs and on-line time.
There is one issue that may be a factor as the project unfolds and that is the question
of whether the project might somehow be tied in to the availability of carbon credits
from the United Nations (UN) Intergovernmental Panel on Climate Change (IPCC)
The refinery expansion will have a social and economic impact on the Talara area.
The construction phase will create jobs, and, with refinery startup there will be long-
term jobs for the local community and additional long-term cash flow in the community.
The expansion will provide low sulfur motor fuels not only to the local community but
also to the country of Peru reducing the amount of SOx emissions from operating
vehicles.
The truck traffic created during construction will be alleviated once construction is over.
Traffic will be a short-term impact and will be mitigated as much as possible by
receiving as much as possible through the construction dock in Talara Bay.
76
One of the biggest burdens on the local economy will be an influx of construction
workers that will have to have temporary housing, sanitation and food service. The
community is not equipped to handle the large number or additional workers and is
unable to supply the majority of the workers due to lack of skills. Once the local labor
pool is exhausted, workers will be imported to the construction site on a temporary
basis.
Another short-term impact will be a marginal inconvenience and potential short-term
impact to the fishing industry due to dock construction. The disruption will be kept as
confined as possible and an attempt will be made to schedule ship arrivals later in the
day as to not interfere with the fishing activities. The long-range impact will be neutral
since more of the Bay will be used for shipping and receiving products but the
seawater intake from and discharges of wastewater to the Bay will be stopped. This
will reduce the impact on juvenile fish and small sea life, improving the fishing. The
new dock will also provide some artificial reef areas that will improve the quantity of
fish in the Bay. The warm seawater discharge into the Pacific Ocean may actually
lead to a localized increase in fish population at the discharge point, which will help
local fishermen.
Fire protection, security, routine and emergency medical services will be provided by
the construction contractors to reduce the burden on the local economy during
construction.
The footprint of all new units will be located on land that is already in industrial use and
owned by the refinery with the exception of the construction that will take place on the
two docks. The laboratory and administration building will be relocated away from
both the existing and new units, and will act as a buffer between the community and
the new refinery units. The area near the community will be landscaped, as it is now
to provide an attractive appearance for the community.
77
1.10 References
1. Laboratory evaluation of NOx reduction techniques or refinery CO boilers.
Final report, March-December 1983
Creator/Author Lange, H.B. ; Arand, J.K. ; Mansour, M.N. ; Hunter, S.C.
Publication Date 1985 Apr 01
OSTI Identifier OSTI ID: 5489192
Report Number(s) PB-85-200285/XAB;KVB-72-806034-1948
Research Org KVB, Inc., Irvine, CA (USA)
78
1.11 Appendices
79
1.11.1 Pacific Ocean Cooling Water System
80
1.11.2 Summary of Air Emissions
(Appendix sent separately)
81
1.11.3 Plant Plot Plan with Emission Points (Appendix/Drawing sent separately)
Talara Refinery Expansion and Modernization Project Refinery Plot Plan (Plant
Flow Diagram)
All new units were marked with a blue honeycomb fill on the plot plan.
All of the items on the plot plant will be reviewed during the preparation of the FEED. It is
expected that the final locations will be updated somewhat with the more detailed information
that will be developed during the FEED.
Process Units:
The existing units were not moved. The jet fuel caustic treater upgrade was not included,
since it will be completed as a refinery project prior to the Talara expansion and
modernization.
The new units were placed in the same corridor as the existing units, in order to make the
modernized refinery as compact as possible and to keep the operating units well within the
refinery and away from the view of the public. The new units were also located to minimize
the length of runs for the connecting piping, cables and wiring.
The new units were spaced to take into account internally the required spacing for
maintenance and what is required by NFPA. The plot lay out in general included spacing as
required for safety by NFPA and taking into account the risk of explosion to protect the people
in the lab, control room and administration building during the worst-case disaster in the
refinery. The exact spacing and lay out may be modified as required during detailed design to
assure that it is in full compliance with good design practices, NFPA, and meets the needs of
the worst case explosion while allowing adequate escape routes from the units in case of
emergency.
82
Utilities:
The new power plant was located close to the existing power plant to take advantage of as
many existing facilities as possible, and as close to the source of Flexigas as possible.
The seawater cooling inlet and discharge were relocated on the Pacific Ocean side of the
refinery. The inlet was located south of the discharge to take advantage of the Humboldt
current that flows from south to north. This location will help avoid the short-circuiting of warm
water into the cooling water inlet.
New offsite facilities, such as instrument air compressors, and the PSA nitrogen unit will be
located within the existing Industrial Services area.
As an alternative to this, the FEED should analyze the possibility of placing the sea water inlet
in the new dock as a way to potentially reduce cost.
Environmental:
The new flare is a simple pipe flare with steam for smoke control located on top of the hill
using a 100 meter radius for thermal radiation.
The wash down water and potentially contaminated storm water will be handled in the unit to
separate most of the oil from the water streams prior to sending the wastewater to the new
wastewater treatment facility.
The existing API and CPI separators will be taken out of their current service and replaced
with a segregated sewer system using modern oil & water separation technology. The
wastewater treatment area will be located near the current separators. An existing CPI
separator may be used for treatment of unit wash down water, and potentially contaminated
storm water. If the refinery will meet US EPA standards for BOD and COD, a biological
treatment plant will be required to handle the wastewater. A biological treatment facility will
require at least a three day retention pond.
General Facilities:
83
A new two-sided dock for loading liquid products, including sulfuric acid was provided. It is
located within the existing channel. This new dock will provide the capability to load twice the
capacity of the existing dock, so that the modernized and expanded refinery will have three
times the loading capacity of the existing one.
The fishing dock was the original cargo dock. It will be returned to this service during
construction, and will be used to load out containers of coke after start up. Its location is
shown on the plot plan. Containers will be moved form the Container storage area to a
staging area by dock area via truck.
The lab and administration building are located remote from the new and existing units. This
location will have to be reviewed in the worst explosion case to assure the safety of the
occupants. The proposed location is enhanced by the existing warehouse, which will act as a
shield.
The control room final location will have to be determined by the FEED contractor after the
results of a disaster model is run on both the new and existing units. The worst case
explosion will determine the exact location of the control room. The structure will need to be
constructed to withstand any over pressure from the worst case explosion. For the purposes
of this study, an optimum location was selected, based upon safety considerations.
Two new sets of tanks are provided one for LPG and one for sulfuric acid. They are located
in the area proposed by PETROPERU for the storage of sulfur.
The firewater area was moved to the south side of the dock, an area that is not prone to
sanding up, like the existing area. Additional fire water facilities will be provided near the new
cooling water intake sump. There will also be a four hour fresh water tank for normal fires,
with the emergency back up of seawater from the relocated fire water pumps.
84
1.11.4 Wastewater Treatment Plant (Process Flow Diagram)
85
1.11.5 Talara Refinery Process Flow Diagram (Selected Case)
Eliminado: <sp>
86

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Proyecto Modernizacin Refinera Talara

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