5 replies to this topic

[hedgie]

I'm in a project team to built a crude oil refining facilities. As for now, we are in the stage of doing the business model and feasibility studies. This is my first time involve in the business model and feasibility studies for crude oil refinery. Could anyone assist me in the business model. What should i take into account. If possible anyone could provide me with the sample for the business model.

[Technical Bard]

Critical data:

• Capital Cost of the facility, including the utilities and offsites (which can be a significant portion).
• Pricing of Crude Oil slate you intend to process, including forecast into the future
• Pricing of product slate you intend to make, including forecast into the future. Should include variations by season, market focus over time, etc.
• Pricing of natural gas to be purchased
• Pricing of electricity to be purchased
• Costing of maintenance and operating expenses, such as labour, materials, chemicals, catalysts.
• Estimate of onstream factor (how many equivalent operating days per year will you achieve).
• A material balance that shows the conversion of crude into products, byproducts (i.e. offgas, sulfur, etc)
• Estimate of regulatory costs
• Information on government subsidies, tax rates, interest costs (if you are financing the investment), etc

Take all of that, put it into an economic model and determine if you meet the economic criteria you have (such as IRR hurdle rate, positive NPV, or other).

[Profe]

Hi Hedgie

For help you, if you give me a valid e-mail addres I will send the "Manual for the preparation of Industrial Feasibility Studies" from UNIDO and attached you find the "Iranian standard preparation of feasibility studies of refining facilities".

I hope you find them useful.

Good luck.

Attached Files

•  e-pr-150 Basic Design Package.pdf   691.3KB   106 downloads

Edited by Profe, 13 April 2012 - 09:06 AM.

[Praveen_Rawat]

Profe ,
Can You send me the "Manual for the preparation of Industrial Feasibility Studies".
My mail id is rawat205@gmail.com.

regards
Praveen

[Profe]

Hi Praveen_Rawat

I Tried to send you the "Manual for the preparation of Industrial Feasibility Studies", but is too big and its imposible to send it.

I apologize for that.

Edited by Profe, 18 July 2012 - 12:48 PM.

[gegio1960]

Very interesting (and difficult) task.
Have you experience of Linear Programming? A good LP tool is a must in this kind of studies.
Another important skill is the knowledge of Crude Oil Management.
Just to start......