Mini Oil Refinery Review

Rifka Aisyah

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About Mini Oil Refinery

Capacity is about 4000 – 30 000 BPD.

Usually built to fulfill oil demand in remote region.

Modular mini oil refinery is used because relatively low capital cost and ease and
speed of contruction.

Petroleum Product Balances in Indonesia (2015)
Demand Production Net export
Share Share
(thou. BPD) (thou. BPD) (thou. BPD)
Product Total 1973 100.0% 1256 100.0% -717
Gasoline 386 19.6% 352 28.0% -34
Naphta 90 4.6% 18 1.4% -72
Kero/Jet 398 20.2% 130 10.4% -268
Gas Oil 795 40.3% 386 30.7% -409
Heavy Fuel 236 12.0% 318 25.3% 82
Fuel oil total 1905 96.6% 1204 95.9% -701
LPG 53 2.7% 27 2.1% -26
Other products 15 0.8% 25 2.0% 10

Current production facilities cannot fullful national petroleum product demand,

therefore more oil refineries need to be developed.
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Economy of Scale

Capital cost to refine a litter of crude oil is higher in the case of a mini-refinery.

Some conditions that make investment in mini oil refinery workable:

o Close access to cheap crude oil

o Near to sizable market – to decrease distribution cost

o An acceptable market for HFO

o Project finance on preferential terms for development credit agencies

o Gain government incentives to support regional development

To minimize capital cost, mini refinery is often supplied only as a simple straight run
atmospheric distilation refinery for diesel and/or kerosene production, with naphta and fuel
oil as by-product

EXPENSIVE lighter + sweeter crude oil
less facility upgrading
but crude oil source is
limited

CHEAPER heavier crude oil
more facility upgrading
crude oil source is increasing

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Recommended Feed Stock Characteristics for
Mini Oil Refinery

Salt Content

o Maximum salt content 1 kg/1000 barrel

o Pre-treatement required if salt content is more than 1 kg/1000 barrel.

o Additional desalter is still feasible. Fresh water source & waste water disposing
method should be considered.

Sulphur Content

Crude oil with <1% sulphur will normally refine within the allowable fuel specification
without the need for de-sulphuring process.

Other Characteristics

o High API

o High natural diesel fraction in its assay

o Low in sulphur, salts, and other contaminant

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Some Configurations of Mini Oil Refinery

Refinery configuration is influenced by product demand.

Topping Plant Hydroskimming Cracking Refinery Coking Refinery

Facilities • Crude distilling unit • Crude distilling unit • Crude distilling unit • Crude distilling unit
• Catalytic reformer • Vacuum distilling • FCCU or Hydro-
(additional) unit cracker
• HDS • Catalytic cracking
unit
Feedstock Condensates/light sweet Light sweet crude Processed gas oil Processed residual
crude fuel
Process Simple distillation Simple distillation with Break gas oil using Thermally crack
catalytic reforming & catalyst at high T & P residual fuel into
hydrodesulfurization into gasoline and gasoline and diesel
distillates (jet fuel, oil
kerosene, diesel,
intermediate fuel oil)
Products • Diesel and/or kerosene • High octane gasoline • Heavy diesel • Diesel
• Naphta and fuel oil (by (vacuum gas oil) • Fuel oil
product) • Heavy residual oil

Increasing complexity

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Product Yield using “Heavy Crude Oil” at
Different Refinery Configuration

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Current Mini Oil Refinery in Indonesia (1/2)
PT Tri Wahana Universal (TWU) PT TransPacific Petrochemical PT Humpuss Pengolahan Minyak
Indotama (TPPI) (HPM)
Location Bojonegoro, East Java Tuban, East Java Cepu, Central Java

Year of built 2008 1995

Capacity (bpd) 6000 100 000 10 000

Feed stock source Mobil Cepu Limited (MCL) Pertamina Expected from MCL or from
Pertamina-Petrochina (50 km
distance)
Characteristics of Light-medium and waxy grade crude NA
feedstocks with very low sulfur. Very high
kerosene, diesel, and VGO cuts but
very low naphtha and resid cuts
Feed stock supply By 5 km pipeline Expected using 28 km pipeline
method
Facilities Atmospheric Distillation Column, Precut column, Condensate Splitter, Atmospheric Distillation Column,
Vacuum Distillation Unit Distillate Column, Aromatic Plant Naphta Hydrotreated, Catalytic
Reformer
Products • Naphta/Straight Run Gasoline • Naphta • Naphta
• Solar/High Speed Diesel • Kerosene • HSD
• Marine Diesel Oil (MDO) • Diesel Oil • IDO
• Residue/Vacuum Tower Bottom • Fuel Oil • MFO
• Aromatics (Ortho-xylene, Para-
xylene, Mixed-xylene, Benzene,
Toluene, Reformate)

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Current Mini Oil Refinery in Indonesia (2/2)
PT Pertamina RU VII PT PatraSK PT Kilang Muba

Location Kasim, Papua Dumai Musi Banyuasin, South Sumatera

Year of built 2008

Capacity (bpd) 10 000 25 000 800

Feed stock Walio (60%) + Salawati (40%) Unconverted Oil (UCO) from PT
source Pertamina RU II Dumai
Characteristics of
feedstocks
Feed stock
supply method
Facilities Atmospheric Distillation Column, Crude Distillation Unit, Crude Distillation Unit
Naphta Hydrotreating Unit, High Vacuum Unit,
Catalytic Reforming Unit Hydro Cracking Complex
Vacuum Distillation Unit
Catalytic Dewaxing Unit
Products • Fuel gas (969 bpd) • Lube base oil • Premium
• Premium fuel (1987 bpd) • Kerosene
• Kerosene (1831 bpd)
• ADO/solar (2439 bpd)
• Residue (3390 bpd)

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Future Plant of Mini Oil Refinery Development
in Indonesia
Company Planned Capacity Remarks
(BPD)
PT Tri Wahana Universal 10 000 Additional

Joint PT Bojonegoro Bangun Sarana & 10 000

PT Tierra Energi Perkasa
PT Chandra Asri Petrochemical 100 000

PT Indo Kilang Prima 2 x 3000 • On going.

• Location: Padang Lawas, North Sumatera
• Expected products: HSD, MFO, kerosene,
naphta
• Start producing in April 2016.
• Total investment USD 54 million.
• Crude supply : PT EMP Tonga, possibly
additional source from PHE Siak, Pacific Oil
PT Indo Kilang Prima 15 000 In Kalimantan and Sumatera

PT Nusantara Energy Resources 25 000 – 30 000 • In Banyuwangi, East Java.

• Feed stock source: Vitol Trader Group
(Netherland)

PT Pertamina RU VII Kasim 50 000 Improve capacity from 10 000 BPD to 50 000
BPD

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Mini Oil Refinery Facilities

Atmospheric Distilling Unit (ADU)
Separate different fractions of the crude oil according to boiling range into naphtha, kerosene,
diesel, and residuum products. It operates at less than 15 psig.

Vacuum Distilling Unit (VDU)
Performs the same function as an ADU, but operates at a pressure of less than zero psig. It
produces products like marine fuel oil (MFO) and asphalt from the ADU residuum (heavy fuel oil).

Hydrodesulfurization Unit (HDU)
Removes sulfur and other impurities from naphtha and distillate fuels.

Catalytic Reformer Unit (CRU)
Produces high octane gasoline from naphtha.

Hydrocracker Unit (HCU)
Produces naphtha, kerosene, and diesel from heavy feedstocks like VDU distillates.

Desalter
Removes salt from crude oil prior to distillation to prevent fouling and corrosion.

Splitter/Stabilizer
Separates a feedstock into two products.

Flare
Combusts any excess vapor released by process equipment.

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 Configuration of Mini Oil Refinery at
PT Tri Wahana Universal
Off gas 11 BOPD
Overhead
Accumulator 355 BOPD
Naphta
Max Density = 781.6 kg/m3 (at 60F)
Max sulfur content = 0.053 %m/m
Max RVP = 5.5 psi (at 100 F)
530 BOPD
Kerosene

2003 BOPD
Oil Feed A Density = 850.3 kg/m3 (at 60F)
Stock D High Speed
Sulfur content = 0.257 %m/m
U Diesel Cetane index = 52oC
Banyu Urip
Field
6000 BOPD Atmospheric 1150 BOPD
550 psig
140oF
gas oil
Off gas 19 BOPD
API 32.8
<0.5% BS&W 1927 BOPD
<10 ppm H2S Atmospheric 600 BOPD
10.5 psia TVP V Light vacuum gas oil
bottom
D
U Heavy vacuum gas oil 300 BOPD

946 BOPD
Vacuum Tower
Bottom Max Density = 925 kg/m3 (at 60F)
11 Max sulfur content = 0.45%m/m
 Configuration of Mini Oil Refinery at
PT Pertamina RU VII Kasim, Papua
Fuel gas and
flare
Light 969 BPD
naphta
H2

Heavy Sweet Naphta Catalytic

naphta naphta Hydrotreater Reformer Premium
1987 BPD

Oil Feed A Kerosene

Stock D 1831 BPD
10 000 BPD U
Walio : 60%
Salawati : 40% Solar
(Local Sorong)
2439BPD

Residue
3390 BOPD

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 Configuration of Mini Oil Refinery at
PT Humpuss Pengolahan Minyak
The facility has been built completely, but not yet commissioned because no crude oil supply.

Off gas To flare High octane

gasoline
Crude column
486 BPD
accumulator
Hydro Catalytic
Naphta
desulfurization reforming
1285BPD

Kerosene

Oil Feed A
Stock D 3461 BPD
Plan: Banyu U
Urip Crude Diesel
10000 BPD

4764 BPD
Atmospheric
residue

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 Possible Configuration for Mini Oil Refinery
Gas Use for distillation

H2
H2

Catalytic High octane

Naphta gasoline
Naphta Hydrotreater Reformer

H2S

Oil Feed Kerosene

Stock H2
A
D
U Diesel
Diesel oil Diesel oil Butene/
Hydrotreater
Pentene
H2S
Atmospheric gas Naphta
FCC
oil

FCC oil
Off-gas

Hydrocracker Hydrocracked
Unit Gasoline
LVGO
V
Atmospheric
D HVGO
bottom Coker naphta
U

Coker Coker gas oil

VTB

Petroleum coke
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Aspects to be Considered

Refinery Location
o Steam/water availability
o Wastewater disposing facility
o Required refiniery capacity
o Distance to source oil
o Distance to pipeline
o Distance to sea port

Quality of Crude Oil
o Crude assay

Product Specification
o Product specification for naphta, diesel, and fuel oil
o Storage capacity
o Average selling price

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Indonesian Oil Product Specification
Gasoline

16
Indonesian Oil Product Specification
Industrial Diesel Oil (IDO)

17
Indonesian Oil Product Specification
Marine Fuel Oil (MFO)

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Example CDU Simulation using Hysys
Assumption:
- Capacity = 10 000 BPD
- Oil characteristics = Type C Banyu Urip (using assay characteristics)
- API 32.6 (60oF)

Products:
- Naphta = 895 BPD
- Kerosene = 1122 BPD
- Diesel = 3860 BPD
- Atm residue = 4124 BPD

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Example Catalytic Reforming Simulation using
Hysys
Atmospheric residue is further processed in Vacuum Distilling Unit to produce LVGO, HVGO, and
Vacuum Resid.

Products:
- Offgas : 2.94 BPD
- LVGO : 975.3 BPD
- HVGO : 1057 BPD
- Vacuum resid : 2091 BPD

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