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TENDER FOR ADVANCED PROCESS CONTROLS

(VOLUME -I )

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INDEX FOR (VOLUME -I )

SECTION 1 : NOTICE INVITING TENDER SECTION 2 : MODALITY OF SUBMISSION OF BID

SECTION 3 : AGREED COMMERCIAL TERMS & CONDITIONS (ACTC) ALONG WITH FE & CD VARIATION CLAUSE . SECTION 4 : FORMAT FOR PRICED BID WITH TAXES AND DUTIES ( PHASE -I & PHASE -II ) SECTION 5 : GENERAL TERMS & CONDITIONS OF WORKS CONTRACT SECTION 6 : ARBITRATION CLAUSE SECTION 7 : BANK GUARANTEE IN LIEU OF EARNEST MONEY SECTION 8 : BANK GUARANTEE FOR PERFORMANCE OF THE OBLIGATIONS

OF SUPPLIER / CONTRACTOR.

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SECTION -1.0

NOTICE INVITING TENDER

FOR ADVANCED PROCESS CONTROL

TENDER NO : 4000191 - HD - 46009

To : 1.0 Hindustan Petroleum Corporation Limited (HPCL) , Visakh Refinery , Visakhapatnam , Andhra Pradesh invites sealed bids for “ Advanced Process Controls “ in two bid system (Part I : Techno – Commercial ) Unpriced part and ( Part-II :Priced Part ) from the competent agencies with sound technical and financial capabilities fulfilling the pre qualification criteria stated in the tender. 2.0 Brief scope of work involves to design , install , supply and commission Model based Multivariable Predictive Controller and Inferential Property Prediction package at HPCL-Visakh Refinery along with the required hardware , interface software and training as per specifications laid down in the tender document on LSTK (Lumpsum Turnkey ) basis for the following process units . Phase -I : CDU-I , CDU-III & FCCU-(I) (R) Phase -II : CDU-II , FCCU-II & PRU , VBU and DHDS & HYDROGEN The model based Multivariable Predictive Controllers and Inferential Property Prediction Package shall be suitable for long term use throughout the life cycle of the plant . 3.0 The salient features of the bidding documents are as follows : Earnest Money Deposit (EMD)

Cost of Bidding Document

Last Date and Time for receipt of Bids

Rs 2 Lakh Or USD 4600

Rs 9000 Or USD 200

15.00 Hrs on 25/05/2005 �

4.0 Vendors intending to participate shall meet the Prequalification criteria specified in the tender.

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5.0 The failure to meet the qualifying criteria will render the bid rejected . Therefore the bidder shall, in his own interest , furnish complete documentary evidence including copies of work orders, completion certificates from clients etc. Bidder shall also furnish the annual reports containing the audited balance sheets and profit & loss account statements in the first instance itself , in support of their fulfilling the qualification criteria . 6.0 It is to be noted that if the bidder is in the holiday list of HPCL , then the offer of such bidder for

this tender shall be rejected and shall not be considered at the any stage of this tender .

7. For any technical clarifications you may please contact : Mr P.N. Varaprasad , Sr Manager , Process

Analysis & Design , Technical Department HPCL , VR . Phone : 0891-2577862 , 2578200 Extn : 4806,

Fax : 0891-2759861

8.0 A set of Bidding documents may be purchased on any working day ( Monday to Friday ) between

1330 Hrs to 1500 Hrs (IST) from the office of Chief Materials Manager (P) , Hindustan Petroleum

Corporation Limited , Visakh Refinery , Post Box No 15, Visakhapatnam – 530011 by paying the cost of

Bidding document in the form of crossed demand draft only issued by a Scheduled Bank (other than C0-

operative Bank ) in favour of Hindustan Petroleum Corporation Limited payable at Visakhapatnam. The

tender document is not transeferable .

The complete bidding is also available on the website of HPCL (www.hindustanpetroleum.com ) .

Bidders desirous to submit their bid on downloaded document have to pay cost of Bidding document , in

the form of demand draft as mentioned in the above para, while submitting the bid , failing which their

bid shall not be considered for evaluation .

EMD shall be paid in favour of Hindustan Petroleum Corporation Limited , Visakhapatnam in the form of

a demand draft payable at Visakhapatnam or Bank Guarantee in the prescribed proforma issued by

Scheduled Bank in India (other than co-operative bank ) and valid for 6 months period from the due date

of submission of bid .

However , Central Public Sector Enterprises are exempted from furnishing EMD subject to submission of

declaration to that effect . Also small scale units registered with National small Scale Industries for

similar works are exempted from payment of EMD. Small scale units registered with National Small

Scale Industries should enclose a photocopy of their registration certificate with their bid to make their

bid eligible for consideration with out EMD.

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Purchase Preference for Products & services to public sector enterprises shall be applicable as per

Government Existing Policy .

Sealed bids to be submitted in the office of undersigned . Techno-commercial part , unpriced part of the

bids shall be opened at 25/05/2005 , 15.30 Hrs on the last date of for submission of bids, in the

presence of authorized representatives of bidders . Time and date of opening of Price Bids shall be

notified to the qualified and acceptable bidders at a later date .

Where parties are requesting tender documents by Post , HPCL is not responsible for delay due to any

reason including postal delays in receiving the party’s request as well as receipt of these documents by the

party .

Telex/Telegraphic/Fax/E-mail bids shall not be accepted .

HPCL reserve the right to accept / reject any or all bids without assigning any reason , whatsoever .

A.RAGHAVENDRACHAR CHIEF MATERIALS MANAGER (P) Phone : 0891- 2761878 , 0891-2578200- Extn 4331 Fax : 0891- 2577637.

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SECTION - 2

MODALITY OF SUBMISSION OF BIDS Bids shall be prepared in two bid system i.e. Priced and Un-Priced offers as detailed below. Un-Priced bid: The unpriced bid shall contain two envelopes as detailed below: Envelope 1 : ( Contains both Proposal against Pre bid qualification as per tender and EMD and cost of tender document. This shall contain all the documents /details required for compliance of the pre qualification criteria specified in the tender . The proposal which meet the pre bid Qualification will only be evaluated for unpriced bid . This envelope shall also contain the Earnest money Deposit (EMD) & cost of tender document. The value required for EMD is as below: For Indian Bidders Rs 2,00,000/- In the form of a crossed DD in favour of HPCL Payable at

Visakhapatnam or in the form of Bank Guarantee as per the format attached to this tender document (, Format for Bank Guarantee in lieu of Earnest Money).The Bank Guarantee shall be non revocable bank guarantee from any scheduled bank (other than co-operative bank). The Bank Guarantee shall be valid for six months from the date of opening of the unpriced bid.�

For Overseas Bidders US$ 4600 In the form of Bank Guarantee as per the format attached to this tender document ( Format for Bank Guarantee in lieu of Earnest Money). The bank guarantee shall be issued by a reputed international bank, confirmed by a bank located in India acceptable to HPCL. The Bank Guarantee shall be valid for six months from the date of opening of the unpriced bid.

It is to be noted that Indian Bidders to give cost of document and EMD in Indian currency and Overseas bidders to give in US$. However Public Sector Enterprises are exempted from furnishing EMD subject to submission of declaration to this effect . Also vendors registered with National small scale Industries Corporation are exempted from payment of EMD . Such vendors should enclose a copy of the valid registration certificate with their bid to make their bid eligible for consideration without EMD . In case the tender document was down loaded from the web site, the tenderer shall enclose a non refundable fee of Rs 9000/- (Indian Bidders) or US$ 200 (Overseas Bidders) in the form of a crossed Demand Draft in favour of HPCL payable at Visakhapatnam, towards the cost of tender documents. Tenders received without EMD and tender document fee will be rejected.

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Enclose the EMD and tender document fee in Envelope - 1 and superscribe the same with “ 4000191 -HD-46009 Advanced Process Controls at Visakh Refinery due on 25/05/2005 at 15.00 hrs IST - EMD and tender document price enclosed ” Tenderers may note that the tender documents issued from the office of Chief Materials Manager (Projects), HPCL, Visakh Refinery, Visakhaptnam - 530 011 are not transferable. Envelope 2 :(Contains the full unpriced Bid proposal ) The complete tender document both ( Volume-I and Volume -II ) shall be duly filled up and stamped , signed and submitted along with the supporting documents as sought in the tender Also the specified SOR Format (with price column blank) should be submitted in this envelope. Superscribe the envelope 2 with “ 4000191-HD-46009 Advanced Process Controls at Visakh Refinery “ due on 25/05/2005 at 15.00 hrs IST - Unpriced bid enclosed“. Priced bid: Enclose the duly filled up Format for Price bid with Taxes and Duties (Section 4 of Volume -I) and Schedule of quotation ( Annexure -X of Volume -II ) . The priced bid shall be submitted in an envelope marked Envelope - 3 and superscribe the same with 4000191 -HD-46009 Advanced Process Controls due on 25/05/2005 at 15.00 hrs IST - Priced bid enclosed“. Bids as prepared above shall be made available at the office of Chief Materials Manager (Projects), HPCL, Visakh Refinery, Visakhaptnam - 530 011, India before the bid due date ie 25/05/2005 at 15.00 hrs IST. Bids received after the bid due date ie. 25/05/2005 at 15.00 hrs IST will be rejected. HPCL shall not be responsible for delay in receipt of bids due to postal or any other reason. Telex / fax / e-mail offers are not acceptable. The unpriced part of the tenders, of those bidders who have submitted the required EMD and cost of tender document will be opened on 25/05/2005 at 15.30 hrs IST in presence of bidders/their authorised representatives. The date and time of opening of the priced bid will be intimated subsequently to the technically and commercially acceptable bidders. Foreign tenderers shall submit the tender directly to HPCL and not through the Indian representative. However, in case the foreign suppliers are operating through Indian representatives, it will be necessary for the foreign bidder to identify and disclose along with copy of the agreement, the Indian representative, while responding to the tender. Tenderers / Indian representatives may note that , one representative can not represent two suppliers of the same item or quote on their behalf. . HPCL reserves the right to reject any or all bids without assigning any reason whatsoever thereof and also reserve the right to give purchase preference to Indian Public Sector Enterprises/Undertaking, price preference to Small Scale Units etc. as admissible under the guidelines of Govt. of India. Deviations if any shall be indicated separately. Such deviations will lead to loading of prices or rejection of offer, at the sole discretion of HPCL without any reference to the bidder. NOTE : The entire offer shall be submitted in Duplicate .

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SECTION 3 AGREED COMMERCIAL TERMS & CONDITIONS (ACTC) Deviations if any shall lead to loading of the prices or rejection of offer .

Clause TERMS & CONDITIONS VENDOR’S CONFIRMATION 1 Confirm that you meet all the Bidders

prequalification criteria specified in the tender

2 Confirm that you will execute the entire job as a Turnkey contract basis.

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3 For Foreign tenderers, in case the tenderer wishes to utilise the service of another firm (Indian) for the site services, etc., please specify the name of the company, mailing address, telephone, fax nos. and contact person etc. of the firm. Confirm that you have quoted accordingly in the Priced bid. HPCL may consider placing a separate order on them for this component. However, the overall responsibility shall rest with the tenderer.

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4 Confirm that NO Indian Agency’s Commission is payable by HPCL nor is included in your offer.

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5 Confirm acceptance of attached General terms & Conditions of Works Contract (GCC) in toto.

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6 Confirm acceptance of attached Arbitration clause : 7 For indian vendors If offer is based on certain

imported raw materials required for equipments / materials offered: i. Indicate maximum CIF value (itemwise) ii. Rate of customs duty considered and included in the quoted price. FE/CD VARIATION CLAUSE APPLICABLE AS ATTACHED.

8 Foreign bidders may note that Cargo is to be transported in Indian flag vessels / as advised by our freight forwarders - OPT Overseas Project Transport Inc. N.J (for USA / Canada): M/s.Panalpina World Transport, Panalpina Welttransport GmbH, Hamburg (for UK, Continental Ports); Embassy of India, Tokoyo (for Japan). Please indicate the weight & dimensions of the Cargo. In case the weight of the cargo is less than 300 Kgs, Air freighting by AIR INDIA shall be done through our nominated air consolidation agents, whose HAWB only acceptable for negotiation.�

9 Confirm furnishing valid duty paying documents / duplicate for transporter etc.

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alongwith the material for HPCL to avail CENVAT. In case the same is not received, the excise duty / equivalent component claimed by the vendor shall not be payable.

10 PAYMENT TERMS : CONFIRM ACCEPTANCE FOR THE PAYMENT TERMS SPECIFIED IN THE TENDER (POINT NO 9 OF VOLUME -II ) Retention clause as mentioned in the GCC shall not be applicable.

10a All Bank charges shall be to vendor’s account 10b Specify the Name,Complete postal

address,telephone and fax no of your bankers

11 WARRANTY : CONFIRM ACCEPTANCE FOR WARRANTY CLAUSE AS SPECIFIED IN TENDER .

12 Confirm that you will furnish Performance Bank Guarantee ( PBG ) for 10% of order value which shall be valid for the warranty period. (vendor to note that all foreign bank guarantee shall be valid for the warranty period and shall be issued by our bankers (State Bank of India) or any of your correspondent scheduled banks in India.

13 CONFIRM ACCEPTANCE FOR DURATION OF JOB : AS SPECIFIED IN THE TENDER(POINT NO : 8 OF VOLUME -II )

14 LD CLAUSE : In case of delayed delivery, prices will be reduced @ 1/2% of the total order value for every week of delay or part thereof subject to a maximum of 5% of the total basic value.

15a Specify the country of origin of the material offered

15b You shall furnish , at no extra charge, a certificate of Country of origin, issued / attested by a Chamber of Commerce / Trade Association

16 Confirm that your quotation shall be valid for 6 months from the date of opening of the tender .

17 Quoted rates shall be firm & fixed till complete execution of the order.�

18 Security Deposit : 1% of the total order value by DD in favour of HPCL payable at visakhapatnam to be paid with in 15 days from the date of intimation of acceptance of

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your tender . 19 Confirm that if you submit bid , qualifies and

does not get the contract because of you being not the lowest , you will be prohibited from working as a sub contractor for the contractor who is executing the contract

20 Confirm that you have not been banned or delisted by any Government or quasi Government agencies or PSUs

21a Confirm the Service Tax indicated in the price schedule is CENVATABLE

21b In case service tax is cenvatable , same shall be reimbursed at actuals against submission of cenvatable documents for service tax as mentioned in the following para19C and to the satisfaction of Owner. Confirm acceptance.

21c As per Cenvat credit rules 2004 , Owner can avail credit on payment of Service Tax to the Contractor . Contractor shall submit proper invoices showing the service tax paid and payable on the taxable value. To enable HPCL to claim cenvat benefit Contractor shall furnish the following information in invoice , bill/challa issued by him A) Name and address of the contractor B) Service Tax Registration No /STC No C) SL NO of the Invoice /bill/challan D) Date of Issue E)Description and value of input service F)Service Tax paid / Payable

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FOREIGN EXCHANGE ( FE )VARIATION CLAUSE The CIF value in indian Rupees / Foreign currency to be declared should cover the currencies of the countries from which import material / components are envisaged to administer foreign currency variation . The FE Variation will be paid for if imports are made at the listed currency subject to ceiling limit The list of foreign currency , country of origin , ceiling of foreign value of import envisaged against each item of material / component for import and rate of conversion into Rupees envisaged to be furnished in the tender.The period with in which import shall be made after placement of FOI (Contractual Completion date of imports ,CDD) shall also be indicated in the offer For reimbursement of foreign exchange variation , documentary evidence like bank certificates of remittance showing the date of payment and rate of foreign currency to indian rupees to be furnished along with a copy of bills of entry duly attested by Customs department . All downward variations in conversion rate will be to owner’s account. Variation will be paid only if imports are made within the period as specified in offer for import . For imports made beyond that period , foreign currency variation will be paid basis the conversion rates prevailing on the last date of the period agreed to for imports . The last date for imports agreed to will be the import landing date in India as envisaged by bill of entry. Vendor shall indicate the maximum CIF component along with currency of import . In case vendor imports less than the CIF value indicated in the bid , Duty , FE variation etc , shall be reimbursed only on the actual import carried out. Foreign Exchange Variation will be paid only if imports are made within the last date of the period agreed to in the offer for imports, as mentioned

i) For the purpose of Foreign Exchange variation reimbursement , SBI selling rate applicable on the bill of Entry date or SBI selling rate on Bank remittance date or actual remittance rate , whichever is lower shall be considered . The following clause also to be considered :

The BOE date may fall within Contractual Completion Date or beyond , it has already been stipulated as above conditions that no reimbursement for FE/CD variation will be paid if the actual import is beyond Contractual completion Date . In such a case , the variation reimbursement will be restricted to the difference between the rate quoted in the tender and the lower of the following :

a. The actual remittance rate b. SBI Bill Selling rate on the date of CDD.

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CUSTOMS DUTY ( CD ) VARIATION CLAUSE

The prices mentioned in offer are subject to Customs Duty (CD) variation. In case of any increase in rates of Custom Duty, Countervailing Duty, Special Additional Duty by the Indian Government through Gazette notification after the submission of last priced offer but within time Schedule for import of material, as mentioned , HPCL shall reimburse the increase in taxes & duties at actuals against satisfactory supporting documents.

All downward variations in the rates of all such duties shall be to HPCL’s account and same shall be calculated on actual CIF value of imported material subject to the limit mentioned . Vendor shall submit all relevant documents to HPCL for the proof of duty paid by them within one month from the date of Bill of Entry. CD Variations will be paid only if the imports are made within the period as agreed in the offer for import . For imports made beyond the period specified CD variation will be paid based on CD rate prevailing on the last date of the period agreed to for imports, in the offer . The actual date for import will be the import landing date in India as evidenced by Bill of Entry. Custom Duty variation shall be paid by HPCL upto the limit of maximum CIF value of imported components as indicated in the offer . Rates of Custom Duty along with tariff no considered by vendor in the prices shall be indicated in the offer

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SECTION - 4 FORMAT FOR PRICED BID WITH TAXES AND DUTIES (SOQ FOR Phase-I)

Sl no. Description I SUPPLY (S.NO 1, 2, 3 OF SOQ ) 1 FOR INDIAN TENDERERS LUMPSUM PRICE 1a Total cost of all the items specified in schedule of quotation

under S.NO 1,2 & 3 ( Supply of software , Supply of computer hardware items , Supply of Furniture items )

1a.1 Packing & Forwarding charges 1a.2 Excise duty (Lumpsum) and Cess % considered Excise Tariff No 1.a.2c Confirm total Excise duty indicated against S.no 1a.2 is

cenvatable . If not advise us the cenvatable Excise duty for which you shall provide the documents to avail the cenvat benefit by HPCL

1a.3 Sales Tax (Lumpsum ) % considered Advise whether APGST /CST Confirm requirement of “C” form (Yes / No) 1a.4 The inland transportation charges upto HPCL project site 1a.5 Transit Insurance charges upto Project site 1 it Total FOR site price for supply portion for Indian vendors

(1a + 1a.1+ 1a.2 + 1.a.3 + 1.a.4 + 1a.5)

1b Details of CIF component included in price 1a by Indian vendors

1b.1 CIF component 1b.2 Exchange rate considered 1b.3 Custom Duty considered Basic + CVD 1b.4 Advise us the cenvtable CVD that can be passed on to

HPCL if any Also confirm acceptance that all the documents required for availing cenvat benefit for CVD shall be provided.

2 a FOR FOREIGN TENDERERS Lumpsum Price 2a 1 Total cost of all the items specified in schedule of quotation

under S.NO 1,2 & 3 ( Supply of software , Supply of computer hardware items , Supply of Furniture items ) in USD as applicable

2a 2 Transit insurance charges 2a 3 Ocean freight /Air freight for foreign tenderers upto Air /

Sea port , ( chennai )in india

2a 4 C I F Price for Foreign tenderers (2a 1 + 2a 2 + 2a 3 ) 2 b Landing Charges 2 c Custom duty

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2 c 1 Basic custom duty ( Lumpsum value ) % considered 2 c 2 Additional Duty ( C V D ) & Cess % considered 2 c 2c Confirm CVD indicated in 2 c 2 is cenvatable . All

documents for availing cenvat benefit shall be furnished (Yes /No )

2 c t Total Custom Duty (2 c 1 + 2 c 2 ) 2 d Charges for Custom Clearance by foreign tenderer / their

indian counterpart

2 e Transportation charges from Chennai port to HPCL site. 2 e i Transit insurance charges from Chennai upto HPCL

project site

2 f t Total FOR site price for supply portion for Foreign Tenderers ( 2a 4 + 2 b + 2 c t + 2 d + 2 e + 2 e i)

II SERVICES ( S.NO 4 OF SOQ ) Lumpsum Price II a Total price for Engineering Services and Training services

as per 4 (supply of services ) of Schedule of Quotation

II b Any taxes, duties, levies (like WCT, Service tax etc), other charges etc. which is not included in the above price ( details also may be mentioned)

II t Total ( II a + II b ) IIc Cenvatable service Tax included in II b III AMC Charges (S.No 5 of SOQ ) Lumpsum price III a Total charges for AMC 5 of Schedule of Quotation III b Any taxes, duties, levies (like WCT, Service tax etc), other

charges etc. which is not included in the above price (details also may be mentioned )

III t Total (IIIa +III b ) IIIc Cenvatable service Tax included in III b GT f GRAND TOTAL (for foreign tenderers) { 2ft + II t +III t } GT i GRAND TOTAL (for Indian tenderers) { 1 it + II t + III t }

Notes:1. For Indian Tenderers, prices are to be quoted in Indian Rupees only. 2. For Foreign Tenderers, prices to be quoted in USD only . 3. All the prices mentioned above shall be firm till complete execution of order and on lumpsum basis,

except statutory variation in customs duty, foreign exchange rate, excise duty and sales tax during contractual completion period.

4. FE and CD variation is applicable as specified in the tender . 5. Any upward variation in taxes and duties like Excise duty , Sales Tax and Service Tax beyond

contractual delivery date will be to vendors account. However, any downward variation is to be passed on to HPCL.

6. Tenderers must specify the prevailing rates of all taxes & duties alongwith the tariff no. considered by him . Any upward variation due to change in classifications to be absorbed by vendor. However, any reduction due to change in classifications is to be passed on to HPCL.

7. Tenderers to submit the duly filled Schedule of Quotation (Annexure -X of Volume -II ) shall also be submitted along with this Format in the priced bid

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FORMAT FOR PRICED BID WITH TAXES AND DUTIES (SOQ FOR Phase-II)

Sl no. Description I SUPPLY (S.NO 6,7 & 8 of SOQ ) 1 FOR INDIAN TENDERERS LUMPSUM PRICE 1a Total cost of all the items specified in schedule of quotation

under S.NO 6,7 & 8 ( Supply of software , Supply of computer hardware items , Supply of Furniture items )

1a.1 Packing & Forwarding charges 1a.2 Excise duty (Lumpsum) and Cess % considered Excise Tariff No 1.a.2c Confirm total Excise duty indicated against S.no 1a.2 is

cenvatable . If not advise us the cenvatable Excise duty for which you shall provide the documents to avail the cenvat benefit by HPCL

1a.3 Sales Tax (Lumpsum ) % considered Advise whether APGST /CST Confirm requirement of “C” form (Yes / No) 1a.4 The inland transportation charges upto HPCL project site 1a.5 Transit Insurance charges upto Project site 1 it Total FOR site price for supply portion for Indian

vendors (1a + 1a.1+ 1a.2 + 1.a.3 + 1.a.4 + 1a.5)

1b Details of CIF component included in price 1a by Indian vendors

1b.1 CIF component 1b.2 Exchange rate considered 1b.3 Custom Duty considered Basic + CVD 1b.4 Advise us the cenvtable CVD that can be passed on to

HPCL if any Also confirm acceptance that all the documents required for availing cenvat benefit for CVD shall be provided.

2 a FOR FOREIGN TENDERERS Lumpsum Price 2a 1 Total cost of all the items specified in schedule of quotation

under S.NO 6,7 & 8 ( Supply of software , Supply of computer hardware items , Supply of Furniture items ) in USD as applicable

2a 2 Transit insurance charges 2a 3 Ocean freight /Air freight for foreign tenderers upto Air /

Sea port (Chennai) in india

2a 4 C I F Price for Foreign tenderers (2a 1 + 2a 2 + 2a 3 ) 2 b Landing Charges 2 c Custom duty

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2 c 1 Basic custom duty ( Lumpsum value ) % considered 2 c 2 Additional Duty ( C V D ) & Cess % considered 2 c 2c Confirm CVD indicated in 2 c 2 is cenvatable . All

documents for availing cenvat benefit shall be furnished (Yes /No )

2 c t Total Custom Duty (2 c 1 + 2 c 2 ) 2 d Charges for Custom Clearance by foreign tenderer /

their indian counterpart

2 e Transportation charges from Chennai port to HPCL site. 2 e i Transit insurance charges from Chennai upto HPCL

project site

2 f t Total FOR site price for supply portion for Foreign Tenderers ( 2a 4 + 2 b + 2 c t + 2 d + 2 e + 2 e i)

II SERVICES ( S.NO 9 OF SOQ ) Lumpsum Price II a Total price for Engineering Services and Training services

as per 9 (supply of services ) of Schedule of Quotation

II b Any taxes, duties, levies (like WCT, Service tax etc), other charges etc. which is not included in the above price ( details also may be mentioned)

II t Total ( II a + II b ) IIc Cenvatable service Tax included in II b III AMC Charges (S.No 10 of SOQ ) Lumpsum price III a Total charges for AMC 10 of Schedule of Quotation III b Any taxes, duties, levies (like WCT, Service tax etc), other

charges etc. which is not included in the above price (details also may be mentioned )

III t Total (IIIa +III b ) IIIc Cenvatable service Tax included in III b GT f GRAND TOTAL (for foreign tenderers) { 2ft + II t +III t } GT i GRAND TOTAL (for Indian tenderers) { 1 it + II t + III t }

Notes:1. For Indian Tenderers, prices are to be quoted in Indian Rupees only. 2. For Foreign Tenderers, prices to be quoted in USD only . 3. All the prices mentioned above shall be firm till complete execution of order and on lumpsum basis,

except statutory variation in customs duty, foreign exchange rate, excise duty and sales tax during contractual completion period.

4. FE and CD variation is applicable as specified in the tender . 5. Any upward variation in taxes and duties like Excise duty , Sales Tax and Service Tax beyond

contractual delivery date will be to vendors account. However, any downward variation is to be passed on to HPCL.

6. Tenderers must specify the prevailing rates of all taxes & duties alongwith the tariff no. considered by him . Any upward variation due to change in classifications to be absorbed by vendor. However, any reduction due to change in classifications is to be passed on to HPCL.

7. Tenderers to submit the duly filled Schedule of Quotation (Annexure -X of Volume -II ) shall also be submitted along with this Format in the priced bid

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SECTION - 5

GENERAL TERMS & CONDITIONS OF WORKS CONTRACT

1 PRELIMINARY 1.1 This is a Contract for execution of __________________ work at ______________________. (please fill up the blanks) 1.2 The tenderer for the above mentioned item of work is ____________________________. (please give the name and address of the tenderer) 1.3 The terms and conditions mentioned hereunder are the terms and conditions of the Contract for the execution of the work mentioned under item 1.1 above. 1.4 It is the clear understanding between Hindustan Petroleum Corporation Limited and the tenderer ______________________________________ that (name and address of the tenderer) in case the tender of ______________________________________________________________ is (name and address of the tenderer) accepted by Hindustan Petroleum Corporation Limited and an intimation to that effect is so issued and also a Purchase Order is placed with ______________________________________________ (name and address of the tenderer) this document will be termed as a Contract between the parties and terms and conditions hereunder would govern the parties interest. 1.5 Interpretation of Contract Documents: All documents forming part of the Contract are to be taken mutually explanatory. Should there be any discrepancy, inconsistency, error or omission in the contract, the decision of the Owner/Engineer-in-Charge/Site-in-Charge shall be the final and the contractor shall abide by the decision. The decision shall not be arbitrable. Works shown upon the drawings but not mentioned in the specification or described in the specifications without being shown on the drawings shall nevertheless be deemed to be included in the same manner as if they are shown in the drawings and described in the specifications. 1.6 Special conditions of Contract : The special conditions of contract, if any provided and whenever and wherever referred to shall be read in conjunction with General Terms and Conditions of contract, specifications, drawings, and any other documents forming part of this contract wherever the context so requires. Notwithstanding the subdivision of the documents into separate sections, parts volumes, every section, part or volume shall be deemed to be supplementary or complementary to each other and shall be read in whole. In case of any misunderstanding arising the same shall be referred to decision of the Owner/ Engineer-in-Charge/Site-in-Charge and their decision shall be final and binding and the decision shall not be arbitrable. It is the clear understanding that wherever it is mentioned that the Contractor shall do/perform a work and/or provide facilities for the performance of the work, the doing or the performance or the providing of the facilities is at the cost and expenses of the work not liable to be paid or reimbursed by the Owner. 2. DEFINITIONS In this contract unless otherwise specifically provided or defined and unless a contrary intention appears from the contract the following words and expressions are used in the following meanings;

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2.1 The term "Agreement" wherever appearing in this document shall be read as "Contract" . 2.2 The "Authority" for the purpose of this Contract shall be the Chairman and Managing Director or any other person so appointed or authorised. 2.3 The "Chairman and Managing Director" shall mean the Chairman and Managing Director of HINDUSTAN PETROLEUM CORPORATION LIMITED or any person so appointed, nominated or designated and holding the office of Chairman & Managing Director. 2.4 The "Change Order" means an order given in writing by the Engineer-in-Charge or by Owner to effect additions to or deletion from or alterations into the Work. 2.5 The "Construction Equipment" means all appliances and equipment of whatsoever nature for the use in or for the execution, completion, operation or maintenance of the work except those intended to form part of the Permanent Work. 2.6 The "Contract" between the Owner and the Contractor shall mean and include all documents like enquiry, tender submitted by the contractor and the purchase order issued by the owner and other documents connected with the issue of the purchase order and orders, instruction, drawings, change orders, directions issued by the Owner/Engineer-in-Charge/Site-in-Charge for the execution, completion and commissioning of the works and the period of contract mentioned in the Contract including such periods of time extensions as may be granted by the owner at the request of the contractor and such period of time for which the work is continued by the contractor for purposes of completion of the work. 2.7 "The Contractor" means the person or the persons, firm or Company whose tender has been accepted by the Owner and includes the Contractor's legal heirs, representative, successor(s) and permitted assignees. 2.8 The "Drawings" shall include maps, plans and tracings or prints thereof with any modifications approved in writing by the Engineer-in-Charge and such other drawings as may, from time to time, be furnished or approved in writing by the Engineer-in-Charge. 2.9 The "Engineer-in-Charge or Site-in-Charge" shall mean the person appointed or designated as such by the Owner and shall include those who are expressly authorised by the owner to act for and on its behalf. 2.10 "The Owner" means the HINDUSTAN PETROLEUM CORPORATION LIMITED incorporated in India having its Registered office at PETROLEUM HOUSE, 17, JAMSHEDJI TATA ROAD, BOMBAY - 400020 and Marketing office at ____________________________________________ or their successors or assignees. 2.11 The "Permanent Work" means and includes works which form a part of the work to be handed over to the Owner by the Contractor on completion of the contract. 2.12 The "Project Manager" shall mean the Project Manager of HINDUSTAN PETROLEUM CORPORATION LIMITED, or any person so appointed, nominated or designated. 2.13 The "Site" means the land on which the work is to be executed or carried out and such other place(s) for purpose of performing the Contract.

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2.14 The "Specifications " shall mean the various technical and other specifications attached and referred to in the tender documents. It shall also include the latest editions, including all addenda/corrigenda or relevant Indian Standard Specifications and Bureau Of Indian Standards. 2.15 The "Sub-Contractor" means any person or firm or Company (other than the Contractor) to whom any part of the work has been entrusted by the Contractor with the prior written consent of the Owner/Engineer-in-Charge/Site-in- Charge and their legal heirs, representatives, successors and permitted assignees of such person, firm or Company. 2.16 The "Temporary Work" means and includes all such works which are a part of the contract for execution of the permanent work but does not form part of the permanent work confirming to practices, procedures applicable rules and regulations relevant in that behalf. 2.17 The "Tender" means the document submitted by a person or authority for carrying out the work and the Tenderer means a person or authority who submits the tender offering to carry out the work as per the terms and conditions. 2.18 The "Work" shall mean the works to be executed in accordance with the Contract or part thereof as the case may be and shall include extra, additional, altered or substituted works as maybe required for the purposes of completion of the work contemplated under the Contract. 3. SUBMISSION OF TENDER 3.1 Before submitting the Tender, the Tenderer shall at their own cost and expenses visit the site, examine and satisfy as to the nature of the existing roads, means of communications, the character of the soil, state of land and of the excavations, the correct dimensions of the work facilities for procuring various construction and other material and their availability, and shall obtain information on all matters and conditions as they may feel necessary for the execution of the works as intended by the Owners and shall also satisfy of the availability of suitable water for construction of civil works and for drinking purpose and power required for fabrication work etc. Tenderer, whose tender may be accepted and with whom the Contract is entered into shall not be eligible and be able to make any claim on any of the said counts in what so ever manner for what so ever reasons at any point of time and such a claim shall not be raised as a dispute and shall not be arbitrable. 3.2 The Tenderer shall be deemed to have satisfied fully before tendering as to the correctness and sufficiency of his tender for the works and of the rates and prices quoted in the schedule of quantities which rates and prices shall except as otherwise provided cover all his obligations under the contract. 3.3 It must be clearly understood that the whole of the conditions and specifications are intended to be strictly enforced and that no work will be considered as extra work and allowed and paid for unless they are clearly outside the scope, spirit, meaning of the Contract and intent of the Owner and have been so ordered in writing by Owner and/or Engineer-in-Charge/Site-in-Charge, whose decision shall be final and binding. 3.4 Before filling the Tender the Contractor will check and satisfy all drawings and materials to be procured and the schedule of quantities by obtaining clarification from the Owner on all the items as may be desired by the Tenderer. No claim for any alleged loss or compensation will be entertained on this account, after submission of Tender by the Tenderer/Contractor and such a claim shall not be arbitrable.

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3.5 No escalation in the Tender rates will be permitted throughout the period of contract or the period of completion of the job whichever is later on account of any variation in prices of materials or cost of labour or due to any other reasons. Claims on account of escalation shall not be arbitrable. 3.6 The quantities indicated in the Tender are approximate. The approved schedule of rates of the contract will be applicable for variations upto plus or minus 25% of the contract value. No revision of schedule of rates will be permitted for such variations in the contract value, including variations of individual quantities, addition of new items, alterations, additions/deletions or substitutions of items, as mentioned above. Quantities etc.mentioned and accepted in the joint measurement sheets shall alone be final and binding on the parties. 3.7 Owner reserve their right to award the contract to any tenderer and their decision in this regard shall be final. They also reserve their right to reject any or all tenders received. No disputes could be raised by any tenderer(s) whose tender has been rejected. 3.8 The Rates quoted by the Tenderer shall include Costs and expenses on all counts viz. Cost of materials, transportation of machine(s), tools, equipments, labour, power,Adminstration charges, price escalations, profits, etc. etc. except to the extent of the cost of material(s), if any, agreed to be supplied by Owner and mentioned specifically in that regard in condition of Contract, in which case, the cost of such material if taken for preparation of the Contractor's Bill(s) shall be deducted before making payment of the Bill(s) of the Contractor. The description given in the schedule of quantities shall unless otherwise stated be held to include wastage on materials, carriage and cartage, carrying in and return of empties, hoisting, setting, fitting and fixing in position and all other expenses necessary in and for the full and complete execution and completion of works and in accordance with good practice and recognised principles in that regard. 3.9 Employees of the State and Central Govt. and employees of the Public Sector Undertakings, including retired employees are covered under their respective service conditions/rules in regard to their submitting the tender. All such persons should ensure compliance to the respective/applicable conditions, rules etc. etc. Any person not complying with those rules etc. but submitting the tender in violation of such rules, after being so noticed shall be liable for the forfeiture of the Earnest Money Deposit made with the tender, termination of Contract and sufferance on account of forfeiture of Security Deposit and sufferance of damages arising as a result of termination of Contract. 3.10 Tender submitted by Tenderer shall remain valid for a period of 6 months from the date of opening of the tender. The Tenderer shall not be entitled during the said period of 6 months, to revoke or cancel the tender without the consent in writing from the Owner. In case the tenderer revokes or cancels the tender or varies any of terms of the tender without the Consent of the Owner, in writing, the Tenderer forfeits the right to the refund of the Earnest Money paid along with the tender. 3.11 The prices quoted by the tenderer shall be firm during the validity period of 6 months and also during the period of Contract including period(s) of extensions of time, if any, as stated earlier. Escalation in prices will not be permitted during the said period. The tenderer shall particularly take note of this factor before submitting their tender(s). 3.12 The works shall be carried out strictly as per approved specifications. Deviations, if any, shall have to be authorised by the Engineer-in-Charge/Site-in-Charge in writing prior to implementing deviations. The price benefit, if any, arising out of the accepted deviation shall be passed on to the Owner. The decision of Engineer-in-Charge shall be final in this matter.

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3.13 The contractor shall make all arrangements at his own cost to transport the required materials outside and inside the working places and leaving the premises in a neat and tidy condition after completion of the job to the satisfaction of Owner. All materials except those agreed to be supplied by the Owner shall be supplied by the contractor at his own cost and the rates quoted by the Contractor should be inclusive of all royalties, rents, taxes, duties, octroi, statutory levies, if any, etc. Etc. 3.14 The Contractor shall not carry on any work other than the work under this Contract within the Owners premises without prior permission in writing from the Engineer-in-Charge/Site-in-charge. 3.15 The Contractor shall be bound to follow and ensure compliance to all the safety and security regulations and other statutory rules applicable to the area. In the event of any damage or loss or sufference caused due to non-observance of such rules and regulations, the contractor shall be solely responsible for the same and shall keep the Owner indemnified against all such losses and claims arising from the same. 3.16 At any time after acceptance of tender, the Owner reserves the right to add, amend or delete any work item, the bill of quantities at a later date or reduce the scope of work in the overall interest of the work by prior discussion and intimation to the Contractor. The decision of Owner, with reasons recorded therefor, shall be final and binding on both the Owner and the Contractor. The Contractor shall not have right to claim compensation or damage etc. in that regard. The Owner reserves the right to split the work under this contract between two or more contractors without assigning any reasons. 3.17 Contractor shall not be entitled to sublet, sub contract or assign, the work under this contract without the prior consent of the Owner obtained in writing. 3.18 All signatures in tender document shall be dated as well as all the pages of all sections of the tender documents shall be initialled at the lower position and signed, wherever required in the tender papers by the Tenderer or by a person holding Power of Attorney authorising him to sign on behalf of the tenderer before submission of tender. 3.19 The tender should be quoted in English, both in figures as well as in words. The rates and amounts tendered by the Tenderer in the Schedule of rates for each item and in such a way that insertion is not possible. The total tendered amount should also be indicated both in figures and words with the signature of tenderer. 3.20 All corrections and alterations in the entries of tender paper will be signed in full by the tenderer with date. No erasures or over writings are permissible. 3.21 Transfer of tender document by one intending tenderer to the another one is not permissible. The tenderer on whose name the tender has been sent only can quote. 3.22 The Tender submitted by a tenderer if found to be incomplete in any or all manner is liable to be rejected. The decision of the Owner in this regard is final and binding. In case of any error/discrepancy in the amount written in words and figures, the lower amount between the two shall prevail. 4. DEPOSITS a) EARNEST MONEY DEPOSIT (EMD) The tenderer will be required to pay a sum as specified in the covering letter, as earnest money deposit alongwith the tender either thru a crossed demand draft or a non-revokable Bank Guarantee in favour of

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Hindustan Petroleum Corporation Limited, from any Scheduled Bank (other than a Co-Operative Bank) payable at Visakhapatnam in favour of Hindustan Petroleum Corporation Limited, Visakhapatnam in the proforma enclosed.The earnest money deposit will be refunded after finalisation of the contract. In case of overseas tenderers, EMD shall be in the form of a Bank guarantee issued by a reputed international bank. All foreign bank guarantees should be confirmed by a bank located in India acceptable to HPCL. Note: Public sector enterprises and small scale units registered with National Small Scale Industries are exempted from payment of Earnest Money Deposit. Small scale units registered with National Small Scale Industries should enclose a photocopy of their registration certificate with their quotation to make their quotation eligible for consideration. The Registration Certificate should remain valid during the period of the contract that may be entered into with such successful bidder. Such tenderers should ensure validity of the Registration Certificate for the purpose. b) SECURITY DEPOSIT The tenderer, with whom the contract is decided to be entered into and intimation is so given will have to make a security deposit of one percent (1%) of the total contract value in the form of account payee crossed demand draft drawn in favour of the Owner payable at Visakhapatnam, within 15 days from the date of intimation of acceptance of their tender, failing which the Owner reserves the right to cancel the Contract and forfeit the EMD. 5. EXECUTION OF WORK All the works shall be executed in strict conformity with the provisions of the contract documents and with such explanatory details, drawings, specifications and instructions as may be furnished from time to time to the Contractor by the Engineer-in-Charge/ Site-in-Charge, whether mentioned in the Contract or not. The Contractor shall be responsible for ensuring that works throughout are executed in the most proper and workman- like manner with the quality of material and workmanship in strict accordance with the specifications and to the entire satisfaction of the Engineer-in- Charge/Site-in-Charge.The completion of work may entail working in monsoon also. The contractor must maintain the necessary work force as may be required during monsoon and plan to execute the job in such a way the entire project is completed within the contracted time schedule. No extra charges shall be payable for such work during monsoon. It shall be the responsibility of the contractor to keep the construction work site free from water during and off the monsoon period at his own cost and expenses. For working on Sundays/Holidays, the contractor shall obtain the necessary permission from Engineer Incharge/Site Incharge in advance. The contractor shall be permitted to work beyond the normal hours with prior approval of Engineer-In-Charge/Site-In-Charge and the contractors quoted rate is inclusive of all such extended hours of working and no extra amount shall be payable by the owner on this account. 5.a. SETTING OUT OF WORKS AND SITE INSTRUCTIONS 5.a.1. The Engineer-in-Charge/Site-in-Charge shall furnish the Contractor with only the four corners of the work site and a level bench mark and the Contractor shall set out the works and shall provide an efficient staff for the purpose and shall be solely responsible for the accuracy of such setting out. 5.a.2. The Contractor shall provide, fix and be responsible for the maintenance of all necessary stakes, templates, level marks, profiles and other similar things and shall take all necessary precautions to prevent their removal or disturbance and shall be responsible for consequences of such removal or disturbance should the same take place and for their efficient and timely reinstatement. The Contractor shall also be responsible for the maintenance of all existing survey marks, either existing or supplied and fixed by the Contractor. The work shall be set out to the satisfaction of the

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Engineer-in-Charge/Site-in-Charge. The approval thereof or joining in setting out the work shall not relieve the Contractor of his responsibility. 5.a.3. Before beginning the works, the Contractor shall, at his own cost, provide all necessary reference and level posts, pegs, bamboos, flags ranging rods, strings and other materials for proper layout of the work in accordance with the scheme, for bearing marks acceptable to the Engineer-in-Charge/Site-in-Charge. The Centre longitudinal or face lines and cross lines shall be marked by means of small masonary pillars. Each pillar shall have distinct marks at the centre to enable theodolite to be set over it. No work shall be started until all these points are checked and approved by the Engineer-in-Charge/Site-in-Charge in writing. But such approval shall not relieve the contractor of any of his responsibilities. The Contractor shall also provide all labour, materials and other facilities, as necessary, for the proper checking of layout and inspection of the points during construction. 5.a.4. Pillars bearing geodetic marks located at the sites of units of works under construction should be protected and fenced by the Contractor. 5.a.5. On completion of works, the contractor shall submit the geodetic documents according to which the work was carried out. 5.a.6. The Engineer-in-Charge/Site-in-Charge shall communicate or confirm his instructions to the contractor in respect of the executions of work in a "work site order book" maintained in the office having duplicate sheet and the authorised representative of the contractor shall confirm receipt of such instructions by signing the relevant entries in the book. 5.a.7. All instructions issued by the Engineer-in-Charge/Site-in-Charge shall be in writing. The Contractor shall be liable to carry out the instructions without fail. 5.a.8. If the Contractor after receipt of written instruction from the Engineer-in-Charge/ Site-in-Charge requiring compliance within seven days fails to comply with such drawings or 'instructions' or both as the Engineer-in-Charge/Site-in-Charge may issue, owner may employ and pay other persons to execute any such work whatsoever that may be necessary to give effect to such drawings or `instructions' and all cost and expenses incurred in connection therewith as certified by the Engineer-in-Charge/ Site-in-Charge shall be borne by the contractor or may be deducted from amounts due or that may become due to the contractor under the contract or may be recovered as a debt. 5.a.9. The Contractor shall be entirely and exclusively responsible for the horizontal and vertical alignment, the levels and correctness of every part of the work and shall rectify effectually any errors or imperfections therein. Such rectifications shall be carried out by the Contractor, at his own cost. 5.a.10. In case any doubts arise in the mind of the Contractor in regard to any expressions, interpretations, statements, calculations of quantities, supply of material rates, etc. etc.,the contractor shall refer the same to the Site-in-Charge/ Engineer-in-Charge for his clarification, instructions, guidance or clearing of doubts. The decision of the Engineer-in-Charge/Site-in-Charge shall be final and the contractor shall be bound by such a decision. 5.a.11. "The Contractor shall take adequate precautions, to ensure that his operations do not create nuisance or misuse of the work space that shall cause unnecessary disturbance or inconvenience to others at the work site".

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5.a.12. "All fossils, coins articles of value of antiquity and structure or other remains of geological or archaeological discovered on the site of works shall be declared to be the property of the Owner and Contractor shall take reasonable precautions to prevent his workmen or any other persons from removing or damaging any such articles or thing and shall immediately inform the Owner/ Engineer-in-Charge/Site-in-Charge." 5.a.13. "Contractor will be entirely and exclusively responsible to provide and maintain at his expenses all lights, guards, fencing, etc. when and where even necessary or/as required by the Engineer-in-Charge/Site-in-Charge for the protection of works or safety and convenience to all the members employed at the site or general public." 5.b. COMMENCEMENT OF WORK The contractor shall after paying the requisite security deposit, commence work within 15 days from the date of receipt of the intimation of intent from the Owner informing that the contract is being awarded. The date of intimation shall be the date/day for counting the starting day/date and the ending day/date will be accordingly calculated. Penalty, if any, for the delay in execution shall be calculated accordingly. Contractor should prepare detailed fortnightly construction programme for approval by the Engineer-in-Charge within one month of receipt of Letter Of Intent. The work shall be executed strictly as per such time schedule. The period of Contract includes the time required for testing, rectifications, if any, re-testing and completion of work in all respects to the entire satisfaction of the Engineer-in-Charge. # A Letter of Intent is an acceptance of offer by the Owner and it need not be accepted by the contractor. But the contractor should acknowledge a receipt of the purchase order within 15 days of mailing of Purchase Order and any delay in acknowledging the receipt will be a breach of contract and compensation for the loss caused by such breach will be recovered by the Owner by forfeiting earnest money deposit/bid bond. 5.c. SUBLETTING OF WORK 5.c.1. No part of the contract nor any share or interest thereof shall in any manner or degree be transferred, assigned or sublet, by the Contractor, directly or indirectly to any firm or corporation whatsoever, without the prior consent in writing of the Owner. 5.c.2. At the commencement of every month the Contractor shall furnish to the Engineer-in-charge/Site-in-Charge list of all sub-contractors or other persons or firms engaged by the Contractor. # 5.c.3 The contract agreement will specify major items of supply or services for which the Contractor proposes to engage sub-Contractor/sub-Vendor. The contractor may from time to time propose any addition or deletion from any such list and will submit the proposals in this regard to the Engineer-in-charge/Designated officer-in-charge for approval well in advance so as not to impede the progress of work. Such approval of the Engineer-in-charge/Designated officer-in-charge will not relieve the contractor from any of his obligations, duties and responsibilities under the contract. 5.c.4. Notwithstanding any sub-letting with such approval as resaid and notwithstanding that the Engineer-in-Charge shall have received copies of any sub-contract, the Contractor shall be and shall remain solely to be responsible for the quality and proper and expeditious execution of the works and the performance of all the conditions of the contract in all respects as if such subletting or sub-contracting had not taken place and as if such work had been done directly by the Contractor. #5.c.5 Prior approval in writing of the Owner shall be obtained before any change is made In the constitution of the contractor/Contracting agency otherwise contract shall be deemed to have been

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allotted in contravention of clause entitled “sub-letting of works” and the same action may be taken and the same consequence shall ensue as provided in the clause of “sub- letting of works”. 5.d EXTENSION OF TIME If the contractor does not complete the work within the contractual period he may apply in writing to the owner before two months of the period of expiry of the contract stating therein in detail, the reasons on which he desires to have extension and the period of extension, the contractor so desires. The owner on his part shall consider the request of the contractor for such extension of time and shall take a decision after discussion with the contractor and communicate the same to the contractor before 30 days of expiry of the contract. The decision of the owner in this regard shall be final and binding. If the owner extends the time for completion of work as mentioned above, it shall be the understanding between the owner and the contractor that the contractor shall be liable to pay damages, costs and expenses to the owner at the rate of 1% per month of the value of the remaining portion of work to be determined on the last date of the original period of contract, such value being determined by the owner and accepted by the contractor. In case of any dispute arising in the determination of the amount; the owner shall be at liberty to terminate the contract, upon which event, consequences would follow according to the term and condition provided under the Clause for termination of the contract. 5.e. SUSPENSION OF WORKS 5.e.1. Subject to the provisions of this contract, the contractor shall if ordered in writing by the Engineer- in-Charge/Site-in-Charge for reasons recorded suspend the works or any part thereof for such period and such time so ordered and shall not, after receiving such, proceed with the work therein ordered to uspended until he shall have received a written order to re-start. The Contractor shall be entitled to claim extension of time for that period of time the work was ordered to be suspended. Neither the Owner nor the Contractor shall be entitled to claim compensation or damages on account of such an extension of time. 5.e.2. In case of suspension of entire work, ordered in writing by Engineer-in-Charge/Site-in-Charge, for a period of 30 days, the Owner shall have the option to terminate the Contract as provided under the clause for termination. The Contractor shall not be at liberty to remove from the site of the works any plant or materials belonging to him and the Employer shall have lien upon all such plant and Materials . 5.e.3. The contract shall, in case of suspension have the right to raise a dispute and have the same arbitrated but however, shall not have the right to have the work stopped from further progress and completion either by the owner or through other contractor appointed by the owner. 5.f. OWNER MAY DO PART OF WORK Not withstanding anything contained elsewhere in this contract, the owner upon failure of the Contractor to comply with any instructions given in accordance with the provisions of this contract, may instead of Contract and undertaking charge of entire work, place additional labour force, tools, equipment and materials on such parts of the work, as the Owner may decide or engage another Contractor to carryout the balance of work. In such cases, the Owner shall have the right to deduct from the amounts payable to the Contractor the difference in cost of such work and materials with ten percent overhead added to cover all departmental charges. Should the total amount thereof exceed the amount due to the contractor, the Contractor shall pay the difference to the Owner within 15 days of making demand for payment failing which the Contractor shall be liable to pay interest at 24% p.a. on such amounts till the date of payment. 5.g. INSPECTION OF WORKS

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5.g.1. The Engineer-in-Charge/Site-in-Charge and Officers from Central or State Government will have full power and authority to inspect the works at any time wherever in progress, either on the site or at the Contractor's premises/workshops of any person, firm or corporation where work in connection with the contract may be in hand or where the materials are being or are to be supplied, and the Contractor shall afford or procure for the Engineer-in-Charge/Site-in-Charge every facility and assistance to carryout such inspection. The Contractor shall, at all times during the usual working hours and at all other times at which reasonable notice of the intention of the Engineer-in-Charge/Site-in-Charge or his representative to visit the works shall have been given to the Contractor, either himself be present to receive orders and instructions, or have a responsible agent, duly accredited in writing, present for the purpose. Orders given to the Contractor's agent shall be considered to have the same force as if they had been given to the Contractor himself. The Contractor shall give not less than seven days notice in writing to the Engineer-in-Charge/Site-in-Charge before covering up or otherwise placing beyond reach of inspection and measurement any work in order that the same may be inspected and measured. In the event of breach of above, the same shall be uncovered at Contractor's expense for carrying out such measurement and/or inspection. 5.g.2. No material shall be removed and despatched by the Contractor from the site without the prior approval in writing of the Engineer-in-charge. The contractor is to provide at all times during the progress of the work and the maintenance period proper means of access with ladders, gangways, etc. and the necessary attendance to move and adapt as directed for inspection or measurements of the works by the Engineer-in-Charge/Site-in-Charge. 5.h. SAMPLES 5.h.1. The contractor shall furnish to the Engineer-in-charge/Site-in-Charge for approval when requested or required adequate samples of all materials and finishes to be used in the work. 5.h.2. Samples shall be furnished by the Contractor sufficiently in advance and before commencenent of the work so as the Owner can carry out tests and examinations thereof and approve or reject the samples for use in the works. All material samples furnished and finally used/applied in actual work shall fully be of the same quality of the approved samples. 5.i. TESTS FOR QUALITY OF WORK 5.i.1. All workmanship shall be of the respective kinds described in the contract documents and in accordance with the instructions of the Engineer-in-Charge / Site-in- Charge and shall be subjected from time to time to such tests at Contractor's cost as the Engineer-in-Charge/Site-in-Charge may direct at the place of manufacture or fabrication or on the site or at all or any such places. The Contractor shall provide assistance, instruments, labour and materials as are normally required for examining, measuring and testing any workmanship as may be selected and required by the Engineer-in-Charge/Site-in-Charge. 5.i.2. All the tests that will be necessary in connection with the execution of the work as decided by the Engineer-in- charge/Site-in-Charge shall be carried out at the contractors cost and expenses. 5.i.3. If any tests are required to be carried out in connection with the work or materials or workmanship to be supplied by the owner, such tests shall be carried out by the Contractor as per instructions of Engineer-in-Charge/Site-in-Charge and expenses for such tests, if any, incurred by the contractor shall be reimbursed by the Owner. The contractor should file his claim with the owner within 15 (fifteen) days of inspection/test and any claim made beyond that period shall lapse and be not payable. 5.j. ALTERATIONS AND ADDITIONS TO SPECIFICATIONS, DESIGNS AND WORKS

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5.j.1. The Engineer-in-Charge/Site-in-Charge shall have powers to make any alterations, additions and/or substitutions to the schedule of quantities, the original specifications, drawings, designs and instructions that may become necessary or advisable or during the progress of the work and the Contractor shall be bound to carryout such altered/extra/new items of work in accordance with instructions which may be given to him in writing signed by the Engineer-in-Charge/Site- in-Charge. Such alterations, omissions, additions or substitutions shall not invalidate the contract. The altered,additional or substituted work which the Contractor may be directed to carryon in the manner as part of the work shall be carried out by the Contractor on the same conditions in all respects on which he has agreed to do the work. The time for completion of such altered added and/or substituted work may be extended for that part of the particular job. The rates for such additional altered or substituted work under this Clause shall, be worked out in accordance with the following provisions: 5.j.2. If the rates for the additional, altered or substituted work are specified in the contract for similar class of work, the Contractor is bound to carryout the additional, altered or substituted work at the same rates as are specified in the contract. 5.j.3. If the rates for the additional, altered or substituted work are not specifically provided in the contract for the work, the rates will be derived from the rates for similar class of work as are specified in the contract for the work. In the opinion of the Engineer-in-Charge/Site-in-Charge as to whether or not the rates can be reasonably so derived from the items in this contract, will be final and binding on the Contractor. 5.j.4. If the rates for the altered, additional or substituted work cannot be determined in the manner specified above, then the Contractor shall, within seven days of the date of receipt of order to carry out the work, inform the Engineer-in-Charge/ Site-in-Charge of the rate at which he intends to charge for such class of work, supported by analysis of the rate or rates claimed and the Engineer-In-Charge/ Site-in-Charge shall determine the rates on the basis of the prevailing market rates for both material and labour plus 10% to cover overhead and profit of labour rates and pay the Contractor accordingly. The opinion of the Engineer-in- Charge/Site-in-Charge as to current market rates of materials and the quantum of labour involved per unit of measurement will be final and binding on the contractor. 5.j.5. The quantities indicated in the Tender are approximate. The approved schedule of rates of the contract will be applicable for variations of upto +25% of the estimated contract value. No revision of schedule of rates will be permitted for such variations in the contract value, even for variations of individual quantities, addition of new items, alterations, additions/deletions or substitutions of items, as mentioned above. 5.j.6. In case of any item of work for which there is no specification supplied by the Owner and is mentioned in the tender documents, such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard Specifications do not cover the same, the work should be carried out as per standard Engineering Practice subject to the approval of the Engineer-in-Charge/ Site-in-Charge. 5.k. PROVISIONAL ACCEPTANCE Acceptance of sections of the works for purposes of equipment erection, piping, electrical work and similar usages by the Owner and payment for such work or parts of work shall not constitute a waiver of any portion of this contract and shall not be construed so as to prevent the Engineer from requiring replacement of defective work that may become apparent after the said acceptance and also shall not absolve the Contractor of the obligations under this contract. It is made clear that such an acceptance

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does not indicate or denote or establish to the fact of execution of that work or the Contract until the work is completed in full in accordance with the provisions of this Contract. 5.l. COMPLETION OF WORK AND COMPLETION CERTIFICATE As soon as the work is completed in all respects, the contractor shall give notice of such completion to the site in charge or the Owner and within thirty days of receipt of such notice the site in charge shall inspect the work and shall furnish the contractor with a certificate of completion indicating: a) defects, if any, to be rectified by the contractor b) items, if any, for which payment shall be made in reduced rates c) the date of completion. 5.m. USE OF MATERIALS AND RETURN OF SURPLUS MATERIALS 5.m.1. Notwithstanding anything contained to the contrary in any or all of the clauses of this contract, where any materials for the execution of the contract are procured with the assistance of Government either by issue from Government stocks or purchase made under orders or permits or licences issued by Government, the contractor shall use the said materials economically and solely for the purpose of the contract and shall not dispose them of without the permission of the Owner. 5.m.2. All surplus(serviceable) or unserviceable materials that may be left over after the completion of the contract or at its termination for any reason whatsoever, the Contractor shall deliver the said product to the Owner without any demur. The price to be paid to the Contractor, if not already paid either in full or in part, however, shall not exceed the amount mentioned in the Schedule of Rates for such material and in cases where such rates are not so mentioned, shall not exceed the CPWD scheduled rates. In the event of breach of the aforesaid condition the contractor shall become liable for contravention of the terms of the Contract. 5.m.3. The surplus (serviceable) and unserviceable products shall be determined by joint measurement. In case where joint measurement has failed to take place, the Owner may measure the same and determine the quantity. 5.m.4. It is made clear that the Owner shall not be liable to take stock and keep possession and pay for the surplus and unserviceable stocks and the Owner may direct the Contractor to take back such material brought by the Contractor and becoming surplus and which the Owner may decide to keep and not to pay for the same. 5.n. DEFECT LIABILITY PERIOD The contractor shall guarantee the work executed for a period of 12 months from the date of completion of the job. Any damage or defect that may arise or lie undiscovered at the time of completion of the job shall be rectified or replaced by the contractor at his own cost. The decision of the Engineer In-charge/Site-Incharge/Owner shall be the final in deciding whether the defect has to be rectified or replaced. # Equipment or spare parts replaced under warranty/guarantees shall have further warranty for a mutually agreed period from the date of acceptance. The owner shall intimate the defects noticed in writing by a Registered A.D. letter or otherwise and the contractor within 15 days of receipt of the intimation shall start the rectification work and complete within the time specified by the owner failing which the owner will get the defects rectified by

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themselves or by any other contractor and the expenses incurred in getting the same done shall be paid by the Contractor under the provision of the Contract. Thus, defect liability is applicable only in case of job/works contract (civil, mechanical, electrical, maintenance etc. ) where any damage of defect may arise in future (i.e. Within 12 months from the date of completion of job) or lie undiscovered at the time of completion of job. In other words, in case of service contracts (like car hire etc.) where there is no question of damage or defect arising in future, the defect liability clause is not applicable. 5.o. DAMAGE TO PROPERTY 5.o.1. Contractor shall be responsible for making good to the satisfaction of the Owner any loss of and any damage to all structures and properties belonging to the Owner or being executed or procured by the Owner or of other agencies within the premises of the work of the Owner, if such loss or damage is due to fault and/or the negligence or willful acts or omission of the Contractor, his employees, agents, representatives or sub-contractors. 5.o.2. The Contractors shall indemnify and keep the Owner harmless of all claims for damage to Owner's property arising under or by reason of this contract. 6. DUTIES AND RESPONSIBILITIES OF CONTRACTOR 6.a. EMPLOYMENT LIABILITY TOWARDS WORKERS EMPLOYED BY THE CONTRACTOR 6.a.1 The Contractor shall be solely and exclusively responsible for engaging or employing persons for the execution of work. All persons engaged by the contractor shall be on Contractor's payroll and paid by Contractor. All disputes or differences between the Contractor and his/their employees shall be settled by Contractor. 6.a.2. Owner has absolutely no liability whatsoever concerning the employees of the Contractor. The Contractor shall indemnify Owner against any loss or damage or liability arising out of or in the course of his/their employing persons or relation with his/their employees. The Contractor shall make regular and full payment of wages and on any complaint by any employee of the Contractor or his sub contractor regarding non-payment of wages, salaries or other dues, Owner reserves the right to make payments directly to such employees or sub- contractor of the Contractor and recover the amount in full from the bills of the Contractor and the contractor shall not claim any compensation or reimbursement thereof. The Contractor shall comply with the Minimum Wages Act applicable to the area of work site with regard to payment of wages to his employees and also to employees of his sub contractor. 6.a.3. The Contractor shall advise in writing or in such appropriate way to all of his employees and employees of sub-contractors and any other person engaged by him that their appointment/employment is not by the Owner but by the Contractor and that their present appointment is only in connection with the construction contract with Owner and that therefore, such an employment/appointment would not enable or make them eligible for any employment/appointment with the Owner either temporarily or/and permanent basis. 6.b. NOTICE TO LOCAL BODIES

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The contractor shall comply with and give all notices required under any Government authority, instruction, rule or order made under any act of parliament, state laws or any regulations or by-laws of any local authority relating to the works. 6.c. FIRST AID AND INDUSTRIAL INJURIES 6.c.1 Contractor shall maintain first aid facility for his employees and those of his sub-contractors. 6.c.2. Contractor shall make arrangements for ambulance service and for the treatment of all types of injuries. Names and telephone numbers of those providing such services shall be furnished to Owner prior to start of construction and their name board shall be prominently displayed in Contractor's field office. 6.c.3. All industrial injuries shall be reported promptly to owner and a copy of contractor's report covering each personal injury requiring the attention of a physician shall be furnished to the Owner. 6.d. SAFETY CODE 6.d.1. The Contractor shall at his own expenses arrange for the Safety provisions as may be necessary for the execution of the work or as required by the Engineer-in-Charge in respect of all labours directly or indirectly employed for performance of the works and shall provide all facilities in connections therewith. In case the contractor fails to make arrangements and provide necessary facilities as aforesaid, the Owner shall be entitled to do so and recover the cost thereof from the Contractor. 6.d.2. From the commencement to the completion of the works, the contractor shall take full responsibility for the care thereof and of all the temporary works (defined as meaning all temporary works of every kind required in or for the execution, completion or maintenance of the works). In case damage, loss or injury shall happen to the works or to any part thereof or to temporary works or to any cause whatsoever repair at his (Contractor's) own cost and make good the same so that at the time of completion, the works shall be in good order and condition and in conformity in every respect with the requirement of the contract and Engineer-in-Charge's instructions. 6.d.3. In respect of all labour, directly or indirectly employed in the work for the performance of the Contractor's part of this agreement, the contractor shall at his own expense arrange for all the safety provisions as per relevant Safety Codes of C.P.W.D Bureau of Indian Standards, the Electricity Act/I.E. Rules. The Mines Act and such Other Acts as applicable. 6.d.4. The Contractor shall observe and abide by all fire and safety regulations of the Owner. Before starting construction work, the Contractor shall consult with Owner's Safety Engineer or Engineer-in-Charge/Site-in-Charge and must make good to the satisfaction of the Owner any loss or damage due to fire to any portion of the work done or to be done under this agreement or to any of the Owner's existing property. 6.d.5. The Contractor will be fully responsible for complying with all relevant provisions of the Contract Labour Act and shall pay rates of Wages and observe hours of work/conditions of employment according to the rules in force from time to time.

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6.d.6. The Contractor will be fully responsible for complying with the provision including documentation and submission of reports on the above to the concerned authorities and shall indemnify the Corporation from any such lapse for which the Government will be taking action against them. 6.d.7. Owner shall on a report having been made by an inspecting Office as defined in the Contract Labour Regulations have the power to deduct from the money due to the Contractor any sum required or estimated to be required for making good the loss suffered by a worker(s) by reasons of non-fulfillment of conditions of contract for the benefit of workers no-payment of wages or of deductions made from his or their wages which are not justified by the terms of contract or non observance of the said contractor's labour Regulation. 6.e. INSURANCE AND LABOUR Contractor shall at his own expense obtain and maintain an insurance policy with a Nationalised Insurance Company to the satisfaction of the Owner as provided hereunder. 6.e.1. EMPLOYEES STATE INSURANCE ACT i. The Contractor agrees to and does hereby accept full and exclusive liability for the compliance with all obligations imposed by Employees State Insurance Act, 1948, and the Contractor further agrees to defend indemnify and hold Owner harmless from any liability or penalty which may be imposed by the Central, State or local authority by reason of any asserted violation by Contractor, or sub-contractor of the Employees' State Insurance Act, 1948 and also from all claims, suits or proceedings that may be brought against the Owner arising under, growing out of or by reason of the work provided for by this contract whether brought by employees of the Contractor, by third parties or by Central or State Government authority or any political sub-division thereof. ii. The Contractor agrees to file with the Employees State Insurance Corporation, the Declaration forms and all forms which may be required in respect of the Contractor's or sub-contractor's employee whose aggregate emuneration is within the specified limit and who are employed in the work provided or those covered by ESI Act under any amendment to the Act from time to time. The Contractor shall deduct and secure the agreement of the sub-contractor to deduct the employee's contribution as per the first schedule of the Employee's State Insurance Act from wages and affix the employee's contribution cards at wages payment intervals. The Contractor shall remit and secure the agreement of the sub contractor to remit to the State Bank of India, Employee's State Insurance Corporation Account, the Employee's contribution as required by the Act. iii. The Contractor agrees to maintain all records as required under the Act in respect of employees and payments and the Contractor shall secure the agreement of the sub contractor to maintain such records. Any expenses incurred for the contributions, making contribution or maintaining records shall be to the Contractor's or sub-contractor's account. iv. The Owner shall retain such sum as may be necessary from the total contract value until the Contractor shall furnish satisfactory proof that all contributions as required by the Employees State Insurance Act, 1948, have been paid. v. WORKMAN'S COMPENSATION AND EMPLOYEE'S LIABILITY INSURANCE Provide Insurance for all the Contractor's employees engaged in the performance of this contract. If any of the work is sublet, the Contractor shall ensure that the sub contractor provides workmen's compensation and Employer's Liability Insurance for the latter's employees who are not covered under the Contractor's insurance.

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vi. AUTOMOBILE LIABILITY INSURANCE Contractor shall take out an Insurance to cover all risks to Owner for each of his vehicles plying on works of this contract and these insurances shall be valid for the total contract period. No extra payment will be made for this insurance. Owner shall not be liable for any damage or loss not made good by the Insurance Company ,should such damage or loss result from unauthorised use of the vehicle. The provisions of the Motor Vehicle Act would apply. vii. FIRE INSURANCE Contractor shall within two weeks after award of contract insure the Works, Plant and Equipment and keep them insured until the final completion of the Contract against loss or damage by accident, fire or any other cause with an insurance company to be approved by the Employer/Consultant in the joint names of the Employer and the Contractor (name of the former being placed first in the Policy). Such Policy shall cover the property of the Employer only. 6.e.2. ANY OTHER INSURANCE REQUIRED UNDER LAW OR REGULATION OR BY OWNER i. Contractor shall also provide and maintain any and all other insurance which may be required under any law or regulations from time to time. He shall also carry and maintain any other insurance which may be required by the Owner. ii. The aforesaid insurance policy/policies shall provide that they shall not be cancelled till the Engineer-in-Charge has agreed to their cancellation. iii. The Contractor shall satisfy to the Engineer-in-Charge/Site-in-Charge from time to time that he has taken out all insurance policies referred to above and has paid the necessary premium for keeping the policies alive till the expiry of the defects liability period. iv. The contractor shall ensure that similar insurance policies are taken out by his sub-contractor (if any) and shall be responsible for any claims or losses to the Owner resulting from their failure to obtain adequate insurance protections in connection thereof. The contractor shall produce or cause to be proceed by his sub-contractor (if any) as the case may be, the relevant policy or policies and premium receipts as and when required by the Engineer-in-Charge/Site-in-Charge. 6.e.3. LABOUR AND LABOUR LAWS i. The contractor shall at his own cost employ persons during the period of contract and the persons so appointed shall not be construed under any circumstances to be in the employment of the Owner. ii. All payments shall be made by the contractor to the labour employed by him in accordance with the various rules and regulations stated above. The contractor shall keep the Owner indemnified from any claims whatsoever inclusive of damages/costs or otherwise arising from injuries or alleged injuries to or death of a person employed by the contractor or damages or alleged damages to the property. iii. No labour below the age of eighteen years shall be employed on the work. The Contractor shall not pay less than what is provided under the provisions of the contract labour (Regulations and Abolition) Act, 1970 and the rules made thereunder and as may be amended from time to time. He shall pay the required deposit under the Act appropriate to the number of workman to be employed by him or through sub contractor and get himself registered under the Act. He shall produce the required Certificates to the Owner before commencement of the work. The Owner recognises only the Contractor and not his sub contractor under the provisions of the Act. The Contractor will have to submit daily a list of his

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workforce. He will also keep the wage register at the work site or/and produce the same to the Owner, whenever desired. A deposit may be taken by the Owner from the Contractor to be refunded only after the Owner is satisfied that all workmen employed by the Contractor have been fully paid for the period of work in Owner's premises at rates equal to or better than wages provided for under the Minimum Wages Act. The contractor shall be responsible and liable for any complaints that may arise in this regard and the consequences thereto. iv. The Contractor will comply with the provisions of the Employee's Provident Fund Act and the Family Pension Act as may be applicable and as amended from time to time. v. The Contractor will comply with the provisions of the payment of Gratuity Act, 1972, as may be applicable and as amended from time to time. vi. IMPLEMENTATION OF APPRENTICES ACT, 1961 The Contractor shall comply with the provisions of the Apprentices Act, 1961 and the Rules and Orders issued thereunder from time to time. If he fails to do so, his failure will be a breach of the contract and the Engineer-in-Charge may, at his discretion, cancel the contract. The Contractor shall also be liable for any pecuniary liability arising on account of any violation by him of the provision of the Act. vii. MODEL RULES FOR LABOUR WELFARE The Contractor shall at his own expenses comply with or cause be complied with Model rules for Labour Welfare as appended to those conditions or rules framed by the Government from time to time for the protection of health and for making sanitary arrangements for worker employed directly or indirectly on the works. In case the contractor fails to make arrangements as aforesaid the Engineer-in-Charge/Site-in-Charge shall be entitled to do so and recover the cost thereof from the contractor. 6.f. DOCUMENTS CONCERNING WORKS 6.f.1. All documents including drawings, blue prints, tracings, reproducible models, plans, specifications and copies, thereof furnished by the Owner as well as all drawings, tracings, reproducibles, plans, specifications design calculations etc. prepared by the contractor for the purpose of execution of works covered in or connected with this contract shall be the property of the Owner and shall not be used by the contractor for any other work but are to be delivered to the Owner at the completion or otherwise of the contract . 6.f.2. The Contractor shall keep and maintain secrecy of the documents, drawings etc. Issued to him for the execution of this contract and restrict access to such documents, drawings etc. and further the Contractor shall execute a SECRECY agreement from each or any person employed by the Contractor having access to such documents, drawings etc. The Contractor shall not issue drawings and documents to any other agency or individual without the written approval by the Engineer-in-Charge/Site-in- Charge. 6.f.3. Contractor will not give any information or document etc. concerning details of the work to the press or a news disseminating agency without prior written approval from Engineer-in-charge/Site-in-Charge. Contractor shall not take any pictures on site without written approval of Engineer-in-Charge/Site-in-Charge. 7. PAYMENT OF CONTRACTOR'S BILLS

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7.1. Payments will be made against Running Accounts bills certified by the Owner's Engineer-in-Charge/Site-in-Charge within 15 days from the date of receipt of the certified bill by the Disbursement Section of the Owner. 7.2. Running Account Bills and the final bill shall be submitted by the Contractor together with the duly signed measurements sheet(s) to the Engineer-in-Charge/Site-in-Charge of the Owner in quadruplicate for certification. The Bills shall also be accompanied by quantity calculations in support of the quantities contained in the bill along with cement consumption statement, actual/theoretical, wherever applicable duly certified by the Engineer-in-Charge/ Site-in-Charge of the Owner. 7.3. All running account payments shall be regarded as on account payment(s) to be finally adjusted against the final bill payment. Payment of Running Account Bill(s) shall not determine or affect in any way the rights of the Owner under this Contract to make the final adjustments of the quantities of material, measurements of work and adjustments of amounts etc.etc. in the final bill. 7.4. The final bill shall be submitted by the Contractor within one month of the date of completion of the work fully and completely in all respects. If the Contractor fails to submit the final bill accordingly Engineer-in-Charge/Site-in-Charge may make the measurement and determine the total amount payable for the work carried out by the Contractor and such a certification shall be final and binding on the Contractor. The Owner/Engineer- in-Charge/Site-in-Charge may take the assistance of an outside party for taking the measurement, the expenses of which shall be payable by the Contractor. 7.5. Payment of final bill shall be made within 45 days from the date of receipt of the certified bill by the Disbursement Section of the owner. 7.a. MEASUREMENT OF WORKS 7.a.1. All measurements shall be in metric system. All the works will be jointly measured by the representative of the Engineer-in-Charge/Site-in-Charge and the Contractor or their authorised agent progressively. Such measurement will be recorded in the Measurement Book/Measurement Sheet by the Contractor or his authorised representative and signed in token of acceptance by the Owner or their authorised representative. 7.a.2. For the purpose of taking joint measurement, the Contractor/representative shall be bound to be present whenever required by the Engineer-in-Charge/Site-in-Charge. If, however, they are absent for any reasons whatsoever, the measurement will be taken by the Engineer-in-Charge/Site-in-Charge or his representative and the same would be deemed to be correct and binding on the Contractor. 7.a.3. In case of any dispute as to the mode of measurement for any item of work, the latest Indian Standard Specifications shall be followed. In case of any further dispute on the same the same shall be as per the certification of an outside qualified Engineer/ Consultant. Such a measurement shall be final and binding on the Owner and the Contractor. 7.b. BILLING OF WORKS EXECUTED The Contractor will submit a bill in approved proforma in quadruplicate to the Engineer-in-Charge/Site-in-Charge of the work giving abstract and detailed measurement for the various items executed during a month, before the expiry of the first week of the succeeding month. The Engineer-in-Charge/Site-in-Charge shall take or cause to be taken the requisite measurements for the purpose of having the bill verified and/or checked before forwarding the same to the disbursement office

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of the Owner for further action in terms of the Contract and payment thereafter. The Engineer-in-Charge/Site-in-Charge shall verify the bills within 7 days of submission of the Bill by the Contractor. 7.c. RETENTION MONEY 10% of the total value of the Running Account and Final Bill will be deducted and retained by the Owner as retention money on account of any damage/defect liability that may arise for the period covered under the defect liability period clause of the Contract free of interest. Any damage or defect that may arise or lie undiscovered at the time of issue of completion certificate connected in any way with the equipment or materials supplied by contractor or in workmanship shall be rectified or replaced by the contractor at his own expense failing which the Owner shall be entitled to rectify the said damage/defect from the retention money. Any excess of expenditure incurred by the Owner on account of damage or defect shall be payable by the Contractor. The decision of the Owner in this behalf shall not be liable to be questioned but shall be final and binding on the Contractor. Thus, deduction towards retention money is applicable only in case of job/works contracts (civil, mechanical, electrical, maintenance etc. ) where any damage or defect may arise in future (i.e. within 12 months from the date of completion of job) or lie undiscovered at the time of issue of completion certificate. 7.d. TAXES, DUTIES, OCTROI ETC. 7.d.1 The Contractor accepts full and exclusive liability for the payment of any and all taxes, duties, octroi, rates, cess, levies, and statutory payments payable under all or any of the statutes etc. now or hereafter imposed, increased from time to time in respect of works and materials and all contributions and taxes for unemployment compensation, insurance and old age pensions or annuities now or hereafter imposed by Central or State Governmental authorities which are imposed with respect to or covered by the wages, salaries or other compensations paid to the persons employed by the Contractor and the Contractor shall be responsible for the compliance with all obligations and restrictions imposed by the Labour Law or any other law affecting employer-employee relationship and the Contractor further agrees to comply and to secure the compliance of all sub-contractors with all applicable Central, State, Municipal and local laws, and regulations and requirements of any Central, State or Local Government agency or authority. Contractor further agrees to defend, indemnify and hold harmless from any liability or penalty which may be imposed by the Central, State or Local authorities by reason of any violation by Contractor or sub-contractor of such laws, regulations or requirements and also from all claims, suits or proceedings that may be brought against the Owner arising under, growing out of, or by reasons of the work provided for by this contract by third parties, or by Central or State Government authority or any administrative sub-division thereof. The Contractor further agrees that in case any such demand is raised against the Owner, and Owner has no way but to pay and pays/makes payment of the same, the Owner shall have the right to deduct the same from the amounts due and payable to the Contractor. The Contractor shall not raise any demand or dispute in respect of the same but may have recourse to recover/receive from the concerned authorities on the basis of the Certificate of the Owner issued in that behalf. 7.d.2. The rates quoted should be inclusive of all rates, cess, taxes and sales tax on works contracts wherever applicable. However, wherever the sales tax on works contract is applicable and is to be deducted at source, the same will be deducted from the bills of the Contractor and paid to the concerned authorities. The proof of such payments of sales tax on works contract will be furnished to the contractor. 7.d.3. Income tax will be deducted at source as per rules at prevailing rates, unless certificate, if any, for deduction at lesser rate or nil deduction is submitted by the Contractor from appropriate authority. 7.e. MATERIALS TO BE SUPPLIED BY CONTRACTOR

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7.e.1. The Contractor shall procure and provide the whole of the materials required for construction including tools, tackles, construction plant and equipment for the completion and maintenance of the works except the materials viz. steel and cement which may be agreed to be supplied as provided elsewhere in the contract. The contractor shall make arrangement for procuring such materials and for the transport thereof at their own cost and expenses. 7.e.2. The Owner may give necessary recommendation to the respective authority if so desired by the Contractor but assumes no responsibility of any nature. The Contractor shall procure materials of ISI stamp/certification and supplied by reputed suppliers borne on DGS&D list. 7.e.3. All materials procured should meet the specifications given in the tender document. The Engineer-in-charge may, at his discretion, ask for samples and test certificates for any batch of any materials procured. Before procuring, the Contractor should get the approval of Engineer-in-Charge/Site-in-Charge for any materials to be used for the works. 7.e.4. Manufacturer's certificate shall be submitted for all materials supplied by the Contractor. If, however, in the opinion of the Engineer-in-Charge/Site-in-Charge any tests are required to be conducted on the material supplied by the Contractor, these will be arranged by the Contractor promptly at his own cost. 7.f. MATERIALS TO BE SUPPLIED BY THE OWNER 7.f.1. Steel and Cement maybe supplied by the Owner to the contractor against payment by Contractor from either godown or from the site or within work premises itself and the contractor shall arrange for all transport to actual work site at no extra cost. 7.f.2. The contractor shall bear all the costs including loading and unloading, carting from issue points to work spot storage, unloading, custody and handling and stacking the same and return the surplus steel and cement to the Owner's storage point after completion of job. 7.f.3. The contractor will be fully accountable for the steel and cement received from the Owner and contractor will give acknowledgement/receipt for quantity of steel and cement received by him each time he uplifts cement from Owner's custody. 7.f.4. For all computation purposes, the theoretical cement consumption shall be considered as per CPWD standards. 7.f.5. Steel and Cement as received from the manufacturer/stockists will be issued to the contractor. Theoretical weight of cement in a bag will be considered as 50 Kg. Bags weighing upto 4% less shall be accepted by the contractor and considered as 50 Kg. per bag. Any shortage in the weight of any cement bag by more than 4% will be to the Owner's account only when pointed out by the Contractor and verified by Engineer-in-Charge/Site in Charge at the time of Contract or taking delivery. 7.f.6. The contractor will be required to maintain a stock register for receipt, issuance and consumption of steel and cement at site. Cement will be stored in a warehouse at site. Requirement of cement on any day will be taken out of the warehouse. Cement issued shall be regulated on the basis of FIRST RECEIPT to go as FIRST ISSUE. 7.f.7. Empty cement bag shall be the property of the Contractor. Contractor shall be penalised for any excess/under consumption of cement. The penal rate will be twice the rate of issue of cement for this work.

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7.f.8. All the running bills as well as the final bills will be accompanied by cement consumption statements giving the detailed working of the cement used, cement received and stock-on-hand. 7.f.9. The Contractor will be fully responsible for safe custody of cement once it is received by him and during transport. Owner will not entertain any claims of the contractor for theft, loss or damage to cement while in their custody. 7.f.10. The contractor shall not remove from the site any cement bags at any time. 7.f.11. The Contractor shall advise Engineer-in-charge/Site-in-charge in writing atleast 21 days before exhausting the Cement stocks already held by Contractor to ensure that such delays do not lead to interruptions in the progress of work. 7.f.12. Cement shall not be supplied by the Owner for manufacturing of mosaic tiles, precast cement jali and any other bought out items which consume cement and for temporary works. 7.f.13. Cement in bags and in good usable condition left over after the completion of work shall be returned by the contractor to the Owner. The Owner shall make payment to the Contractor at the supply rate for such stocks of cement they accept and receive. Any refused stock of cement shall be removed by the Contractor from the site at his cost and expenses within 15 days of completion of the work. 8. PAYMENT OF CLAIMS AND DAMAGES 8.1. Should the Owner have to pay money in respect of claims or demands as aforesaid the amount so paid and the costs incurred by the Owner shall be charged to and paid by the Contractor and the Contractor shall not be entitled to dispute or question the right of the Owner to make such payments notwithstanding the same may have been without his consent or authority or in law or otherwise to the contrary. 8.2. In every case in which by virtue of the provisions of Workmen's Compensation Act, 1923, or other Acts, the Owner is obliged to pay Compensation to a Workman employed by the Contractor in execution of the works, the Owner will recover from the Contractor the amount of compensation so paid and without prejudice to the rights of owner under the said Act. Owner shall be at liberty to recover such amount or any part thereof by deducting it from the security deposit or from any sum due to the Contractor whether under this contract or otherwise. The Owner shall not be bound to contest any claim made under Section 12 sub section (1) of the said Act, except on the written request of the Contractor and upon his giving to the Owner full security for all costs for which the owner might become liable in consequence of contesting such claim. 8.a. ACTION AND COMPENSATION IN CASE OF BAD WORK If it shall appear to the Engineer-in-Charge/Site-in-Charge that any work has been executed with bad, imperfect or unskilled workmanship, or with materials, or that any materials or articles provided by the Contractor for execution of the work are not of standards specified/inferior quality to that contracted for, or otherwise not in accordance with the contract, the CONTRACTOR shall on demand in writing from the Engineer-in-Charge/Site-in-Charge or his authorised representative specifying the work, materials or articles complained of, notwithstanding that the same may have been inadvertently passed, certified and paid for, forthwith rectify or remove and reconstruct the work so specified and at his own charge and cost and expenses and in the event of failure to do so within a period of 15 days of such intimation/ information/knowledge, the Contractor shall be liable to pay compensation equivalent to the cost of

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reconstruction by the Owner. On expiry of 15 days period mentioned above, the Owner may by themselves or otherwise rectify or remove and re-execute the work or remove and replace with others, the materials or articles complained of as the case may be at the risk and expenses in all respects of the Contractor. The decision of the Engineer-in- Charge/ Site-in-Charge as to any question arising under this clause shall be final and conclusive and shall not be raised as a dispute or shall be arbitrable. 8.b. INSPECTION AND AUDIT OF CONTRACT AND WORKS This project is subject to inspection by various Government agencies of Government of India. The contractor shall extend full cooperation to all the Government and other agencies in the inspection of the works, audit of the Contract and the documents of Contract Bills, measurements sheets etc. etc. and examination of the records of works and make enquiries interrogation as they may deem fit, proper and necessary. Upon inspection etc. by such agencies if it is pointed out that the contract work has not been carried out according to the prescribed terms and conditions as laid down in the tender documents and if any recoveries are recommended, the same shall be recovered from the contractors running bills/final bill/from ordered/suggested Security Deposit/retention money. The Contractor shall not rise any dispute on any such account and the same shall not be arbitrable. 9. CONTRACTOR TO INDEMNIFY THE OWNER The Contractor shall indemnify the Owner and every member, officer and employee of the Owner, also the Engineer-in-Charge/Site-in-Charge and his staff against all the actions,proceedings, claims, demands, costs, expenses, whatsoever arising out of or in connection with the works and all actions, proceedings, claims, demands, costs, expenses which may be made against the Owner for or in respect of or arising out of any failure by the Contractor in the performance of his obligations under the contract. The Contractor shall be liable for or in respect of or in consequence of any accident or injury to any workmen or other person in the employment of the Contractor or his sub contractor and Contractor shall indemnify and keep indemnified the Owner against all such damages, proceedings,costs, charges and expenses whatsoever in respect thereof or in relation thereto. 10. LIQUIDATED DAMAGES In case of delay in completing the work beyond the period of contract the contractor shall be liable to pay liquidated damages at the rate of 0.5% of the total contract value for every week or part thereof of the delay subject to a maximum of 5% of the total contract value. The liquidated damages shall be recovered by the Owner out of the amounts, payable to the Contractor or from the Guarantees or Deposits furnished by the Contractor or the Retention Money retained from the Bills of the Contractor. Should the amount of liquidated damages is not recoverable or recovered in any manner in part or in full, the same shall be payable by the Contractor on demand by the Owner with 24% p.a. interest till the date of payment. 11. DEFECTS AFTER TAKING OVER OR TERMINATION OF WORK CONTRACT BY OWNER The Contractor shall remain responsible and liable to make good all losses or damages that may occur/appear to the work carried out under this Contract within a period of 12 months from date of issue of the Completion Certificate and/or the date of Owner taking over the work, which ever is earlier. The Contractor shall issue a Bank Guarantee to the Owner in the sum of 10% of the work entrusted in the Contract, from any nationalised Bank acceptable to the Owner and if however, the Contractor fails to furnish such a Bank Guarantee the Owner shall have right to retain the Security Deposit and Retention Money to cover the 10% of the Guarantee amount under this clause and to return/refund the same after the expiry of the period of 12 months without any interest thereon.

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12. TERMINATION OF CONTRACT 12.1 The owner may terminate the contract at any stage of the construction for reasons to be recorded in the letter of termination. 12.2 The Owner inter alia may terminate the Contract for any or all of the following reasons that the contractor a) has abandoned the work/Contract. b) has failed to commence the works, or has without any lawful excuse under these conditions suspended the work for 15 consecutive days. c) has failed to remove materials from the site or to pull down and replace the work within 15 days after receiving from the Engineer written notice that the said materials or work were condemned and/or rejected by the Engineer under specified conditions. d) has neglected or failed to observe and perform all or any of the terms acts, matters or things under this Contract to be observed and performed by the Contractor. e) has to the detriment of good workmanship or in defiance of the Engineer's instructions to the contrary sub-let any part of the Contract. f) has acted in any manner to the detrimental interest, reputation, dignity, name or prestige of the Owner. g) has stopped attending to work without any prior notice and prior permission for a period of 15 days. h) has become untraceable. i) has without authority acted in violation of the terms and conditions of this contract and has committed breach of terms of the contract in best judgement of the owner. j) has been declared insolvent/bankrupt. k) in the event of sudden death of the Contractor. 12.3 The owner on termination of such contract shall have the right to appropriate the Security Deposit, Retention Money and invoke the Bank Guarantee furnished by the contractor and to appropriate the same towards the amounts due and payable by the contractor as per the conditions of Contract and return to the contractor excess money, if any, left over. 12.4 The owner shall have the right to carry out the unexecuted portion of work either by themselves or by contractor through other agencies at the cost of the Contractor. 12.5 The contractor within or at the time fixed by the Owner shall depute his authorised representative for taking joint final measurements of the works executed thus far and submit the final bill for the work as per joint final measurement within 15 days of the date of joint final measurement. If the contractor fails to depute their representative for joint measurement, the owner shall take the measurement with their Engineer-in-Charge/Site-in-Charge or any other outside representatives. Such a measurement shall not be questioned by the Contractor and no dispute can be raised by the Contractor for purpose of Arbitration. 12.6 The Owner may enter upon and take possession of the works and all plant, tools, scaffoldings, sheds, machinery, power operated tools and steel, cement and other materials of the Contract at the site or around the site and use or employ the same for completion of the work or employ any other contractor or other person or persons to complete the works. The Contractor shall not in any way object or interrupt or do any act, matter or thing to prevent or hinder such actions, other Contractor or other persons employed for completing and finishing or using the materials and plant for the works. When the works shall be completed or as soon thereafter the Engineer shall give a notice in writing to the Contractor to remove surplus materials and plant, if any, and belonging to the Contractor except as provided elsewhere in the Contract and should the Contractor fail to do so within a period of 15 days after receipt thereof the Owner may sell the same by public auction and shall give credit to the contractor for the amount realised. The Owner shall thereafter ascertain and certify in writing under his hand what (if anything) shall be due or payable to or by the Owner for the value of the plant and materials so taken possession and the expense or loss which the Owner shall have been put to in procuring the works, to be so completed, and the amount if any, owing to the Contractor and the amount which shall be so certified

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shall thereupon be paid by the Owner to the Contractor or by the Contractor to the Owner, as the case may, and the Certificate of the Owner shall be final and conclusive between the parties. 12.7 When the contract is terminated by the Owner for all or any of the reasons mentioned above the Contractor shall not have any right to claim compensation on account of such termination. 13. FORCE MAJEURE 13.1. Any delay in or failure of the performance of either part hereto shall not constitute default hereunder or give rise to any claims for damage, if any, to the extent such delays or failure of performance is caused by occurrences such as Acts of God or an enemy, expropriation or confiscation of facilities by Government authorities, acts of war, rebellion, sabotage or fires, floods, explosions, riots, or strikes. The Contractor shall keep records of the circumstances referred to above and bring these to the notice of the Engineer-in-Charge/Site-in-Charge in writing immediately on such occurrences. The amount of time, if any, lost on any of these counts shall not be counted for the Contract period. One decision of the Owner arrived at after consultation with the Contractor, shall be final and binding. Such a determined period of time be extended by the Owner to enable the Contractor to complete the job within such extended period of time. 13.2. If Contractor is prevented or delayed from the performing any of its obligations under this Agreement by Force Majeure, then Contractor shall notify Owner he circumstances constituting the Force Majeure and the obligations performance of which is thereby delayed or prevented, within seven days of the occurrence of the events. # 14. ARBITRATION 14.1 All disputes and differences of whatsoever nature, whether existing or which shall at any time arise between the parties hereto touching or concerning the agreement, meaning, operation or effect thereof or to the rights and liabilities of the parties or arising out of or in relation thereto whether during or after completion of the contract or whether before after determination, foreclosure, termination or breach of the agreement (other than those in respect of which the decision of any person is, by the contract, expressed to be final and binding) shall, after written notice by either party to the agreement to the other of them and to the Appointing Authority hereinafter mentioned, be referred for adjudication to the Sole Arbitrator to be appointed as hereinafter provided. 14.2 The appointing authority shall either himself act as Sole Arbitrator or nominate some officer of Hindustan Petroleum Corporation Limited (referred to as owner or HPCL) to act as Sole Arbitrator to adjudicate the disputes and differences between the parties. The contractor/vendor shall not be entitled to raise any objection to the appointment of such officer of the owner as the Sole Arbitrator on the ground that the said officer is an officer and/or shareholder of the owner or that he/she has to deal or dealt with the matter to which the contract relates or that in the course of his/her duties as an officer of the owner, he/she has/had expressed views on all or any of the matters in dispute or difference. 14.3 In the event of the Arbitrator to whom the matter is referred to, does not accept the appointment, or is unable or unwilling to act or resigns or vacates his office for any reasons whatsoever, the Appointing Authority aforesaid, shall nominate another Officer of the Owner to act as Arbitrator. 14.4 Such Officer nominated as Sole Arbitrator shall be entitled to proceed with the arbitration from the stage at which it was left by his predecessor. It is expressly agreed between the parties that no person other than the Appointing Authority or an Officer of the Owner nominated by the Appointing Authority, shall act as an Arbitrator. 14.5 The Award of the Sole Arbitrator shall be final and binding on the parties to the Agreement.

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14.6 The work under the Contract shall, however, continue during the Arbitration proceedings and no payment due or payable to the concerned party shall be withheld (except to the extent disputed) on account of initiation, commencement or pendency of such proceedings. 14.7 The Arbitrator may give a composite or separate Award(s) in respect of each dispute or difference referred to him and may also make interim award(s) if necessary. 14.8 The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The Award of the Sole Arbitrator shall be final and binding on both the parties. 14.9 Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and the rules made thereunder, shall apply to the Arbitration proceedings under this Clause. 14.10 The Contract shall be governed by and constructed according to the laws in force in India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at Visakhapatnam for all purposes. The Arbitration shall be held at Visakhapatnam and conducted in English language. 14.11 The Appointing Authority is the Functional Director of Hindustan Petroleum Corporation Limited. 15. GENERAL 15.1. Materials required for the works whether brought by the or supplied by the Owner shall be stored by the contractor only at places approved by Engineer-in-Charge/Site-in-Charge. Storage and safe custody of the material shall be the responsibility of the Contractor. 15.2. Owner and/or Engineer-in-Charge/Site-in-Charge connected with the contract, shall be entitled at any time to inspect and examine any materials intended to be used in or on the works, either on the site or at factory or workshop or at other place(s) manufactured or at any places where these are laying or from which these are being obtained and the contractor shall give facilities as may be required for such inspection and examination. 15.3. In case of any class of work for which there is no such specification supplied by the owner as is mentioned in the tender documents, such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard Specifications do not cover the same the work should be carried out as per standard Engineering practice subject to the approval of the Engineer-in-Charge/Site-in-Charge. 15.4. Should the work be suspended by reason of rain, strike, lockouts or other cause the contractor shall take all precautions necessary for the protection of the work and at his own expense shall make good any damages arising from any of these causes. 15.5 The contractor shall cover up and protect from injury from any cause all new work also for supplying all temporary doors, protection to windows and any other requisite protection for the whole of the works executed whether by himself or special tradesmen or sub-contractors and any damage caused must be made good by the contractors at his own expense.

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# 15.6 If the contractor has quoted the items under the deemed exports, then it will be the responsibility of the contractor to get all the benefits under deemed exports from the Government. The Owner’s responsibility shall only be limited to the issuance of required certificates. The quotation will be unconditional and phrases like “subject to availability of deemed exports benefit” etc. will not find place in it.

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SECTION 6 ARBITRATION CLAUSE

1. All disputes and differences of whatsoever nature, whether existing or which shall at any time arise between the parties hereto touching or concerning the agreement, meaning, operation or effect thereof or to the rights and liabilities of the parties or arising out of or in relation thereto whether during or after completion of the contract or whether before after determination, foreclosure, termination or breach of the agreement (other than those in respect of which the decision of any person is, by the contract, expressed to be final and binding) shall, after written notice by either party to the agreement to the other of them and to the Appointing Authority hereinafter mentioned, be referred for adjudication to the Sole Arbitrator to be appointed as hereinafter provided. 2. The appointing authority shall either himself act as Sole Arbitrator or nominate some officer of Hindustan Petroleum Corporation Limited (referred to as owner or HPCL) to act as Sole Arbitrator to adjudicate the disputes and differences between the parties. The contractor/vendor shall not be entitled to raise any objection to the appointment of such officer of the owner as the Sole Arbitrator on the ground that the said officer is an officer and/or shareholder of the owner or that he/she has to deal or dealt with the matter to which the contract relates or that in the course of his/her duties as an officer of the owner, he/she has/had expressed views on all or any of the matters in dispute or difference. 3. In the event of the Arbitrator to whom the matter is referred to, does not accept the appointment, or is unable or unwilling to act or resigns or vacates his office for any reasons whatsoever, the Appointing Authority aforesaid, shall nominate another Officer of the Owner to act as Arbitrator. 4. Such Officer nominated as Sole Arbitrator shall be entitled to proceed with the arbitration from the stage at which it was left by his predecessor. It is expressly agreed between the parties that no person other than the Appointing Authority or an Officer of the Owner nominated by the Appointing Authority, shall act as an Arbitrator. 5. The Award of the Sole Arbitrator shall be final and binding on the parties to the Agreement. 6. The work under the Contract shall, however, continue during the Arbitration proceedings and no payment due or payable to the concerned party shall be withheld (except to the extent disputed) on account of initiation, commencement or pendency of such proceedings. 7. The Arbitrator may give a composite or separate Award(s) in respect of each dispute or difference referred to him and may also make interim award(s) if necessary. 8. The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The Award of the Sole Arbitrator shall be final and binding on both the parties. 9. Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and the rules made thereunder, shall apply to the Arbitration proceedings under this Clause. 10. The Contract shall be governed by and constructed according to the laws in force in India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at Visakhapatnam for all purposes. The Arbitration shall be held at Visakhapatnam and conducted in English language. 11. The Appointing Authority is the Functional Director of Hindustan Petroleum Corporation Limited.

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ARBITRATION CLAUSE IN FOREIGN PURCHASE AGREEMENTS 1. Disputes or difference arising out of or in relation to this agreement shall be settled by Arbitration in India. The arbitration shall be by a Sole Arbitrator appointed by HPCL. The Sole Arbitrator will

adjudicate the disputes and differences between the parties except those in respect of which the decision of any person is by the agreement expressed to be final and binding.

2. In the event of the Sole Arbitrator to whom the matter is originally referred to, is unable to act or

he/she vacates the office, HPCL, shall nominate another Sole Arbitrator to settle the said disputes and differences.

3. The second Sole Arbitrator shall be entitled to proceed with the arbitration from the stage at which it

was left by his/her predecessor. 4. The award of the arbitrator shall be final, conclusive and binding on all the parties to the agreement

subject to the provisions of the Arbitration & Conciliation Act, 1996, as in force in India and the rules made thereunder and for the time being in force. This agreement shall be covered by the laws of India.

5. The award shall be made in writing and shall be published by the Sole Arbitrator within six months

after entering upon reference or within such further time mutually extended by the parties. The Sole Arbitrator shall have power to order and direct the parties to abide by, observe and perform such directions as the Sole Arbitrator may think fit and proper to issue having regard to the fact that the arbitration proceedings have to be completed within the specified period solely on the principles of Natural Justice.

6. The Sole Arbitrator shall be at liberty to appoint, if so necessary, any Accountant or Engineer or other

person to assist him/her and act by the opinion so taken. 7. The Sole Arbitrator shall have powers to make one or more awards whether interim or otherwise in

respect of the disputes and differences, and in particular, shall make separate awards in respect of each claim or cross claim of the parties.

8. The Sole Arbitrator shall be entitled to direct any of the parties to pay the cost of arbitration in such a

manner and to such an extent as the Sole Arbitrator may in his discretion determine and shall also be entitled to require one or both the parties to deposit funds in such proportions to meet the arbitration expenses. The parties to arbitration, whenever called upon to do so, shall be bound to comply with such directions without any demur.

9. Notwithstanding anything contained to any other law, the parties hereby agree that the courts in the city of Visakhapatnam alone shall have jurisdiction in respect of all or anything arising under this agreement and any award(s) made by the Sole Arbitrator hereunder shall be filed in the court in the city of Visakhapatnam only.

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SECTION 7

(specimen)

BANK GUARANTEE IN LIEU OF EARNEST MONEY

(On Non-Judicial stamp paper of appropriate value) TO : Hindustan Petroleum Corporation Limited Visakh Refinery, Visakhapatnam IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION LIMITED a Government of India Company registered under the Companies Act, 1956, having its registered office at 17, Jamshedji Tata Road, Bombay-20 (hereinafter called "The Corporation" which expression shall include its successor in business and assigns) issued a tender on Messrs. ................................................ a partnership firm/sole proprietor business/a company registered under the Companies Act, 1956 having its office at (hereinafter called "the Tenderer" which expression shall include its executors, administrators and assigns) against Global Tender no VTC 9796 (hereinafter called "the tender" which expression shall include any amendments/ alterations to "the tender" issued by "the Corporation") for the supply of goods to/execution of services for "the Corporation" and "the Corporation" having agreed not to insist upon immediate payment of Earnest Money for the fulfillment of the said tender in terms thereof on production of an acceptable Bank Guarantee for an amount of ....... ( .................................(in words) Only). We, ................................... Bank having office at ..................................................... Bombay (hereinafter referred to as "the Bank" which expression shall include its successors and assigns) at the request and on behalf of "the Tenderer" hereby agree to pay to the Corporation without any demur on first demand an amount not exceeding ..............( ..........................(in words) only) against any loss or damage, costs, charges and expenses caused to or suffered by "the Corporation" by reason of non performance and fulfillment or for any breach on the part of "the Tenderer" of any of the terms and conditions of the said "tender". 2. We, ........................................ Bank further agree that "the Corporation" shall be sole Judge whether the said "Tenderer" has failed to perform or fulfill the said "tender" in terms thereof or committed breach of any of the terms and conditions of "the order" and the extent of loss, damage, cost, charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in favour of "the Corporation" all the rights and defences to which we as guarantors and/or "the Tenderer" may be entitled to. 3. We, ................................. Bank further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank" 's liability to pay and the amount demanded and "the Bank" to undertake to pay "the Corporation" the amount so demanded on first demand and without any demur notwithstanding any dispute raised by "the Tenderer" or any suit or other legal proceedings including arbitration pending before any court, tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional. 4. We, ....................................... Bank further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said "tender"/or to extend time of performance by "the Tenderer" from time to time or to postpone for any time to time any of the powers exercisable by

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"the Corporation" against "the Tenderer" and to forbear to enforce any of the terms and conditions relating to "the tender" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Tenderer" or for any forbearance, act or ommission on the part of "the Corporation" or any indulgence by "the Corporation" to "the tenderer" or by any such matter or things whatsoever which under the law relating to sureties would but for this provision have the effect of relieving us. 5. NOTWITHSTANDING anything hereinbefore contained, our liability under this Guarantee is restricted to ...............(....................................(in words) only). Our liability under this guarantee shall remain in force until expiration of six months from the due date of opening of the said "tender". Unless a demand or claim under this guarantee is made on us in writing within said period, that is, on or before .................................... all rights of "the Corporation" under the said guarantee shall be forfeited and we shall be relieved and discharged from all liabilities thereunder. 6. We, ........................................ Bank further undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in Writing. 7. We, ......................................... Bank lastly agree that "the Bank" 's liability under this guarantee shall not be affected by any change in the constitution of "the Tenderer". 8. "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the Agreement/Contract or MOU entered into between "the Tenderer" and "the Bank" in this regard. IN WITNESS WHEREOF the Bank has executed this document onthis .......................... day of ........................ For ........................ Bank (by its constituted attorney) (Signature of a person authorised to sign on behalf of "the Bank")

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SECTION 8 (specimen)

BANK GUARANTEE FOR PERFORMANCE OF THE OBLIGATIONS OF SUPPLIER /

CONTRACTOR

(on non-judicial stamp paper of appropriate value)

To, Hindustan Petroleum Corporation Ltd., Visakh Refinery, Visakhapatnam IN CONSIDERATION OF THE HINDUSTAN PETROLEUM CORPORATION LTD. A Government of India Company registered under the Companies Act, 1956, having its registered office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called "the Corporation" which expression shall include its successors and assigns) having awarded to M/s____________________________________________ a partnership firm/sole proprietor business/a company registered under the Companies Act, 1956 having its office at ______________________________ (hereinafter referred to as "the Supplier" which expression shall wherever the subject or context so permits includes its successors and assigns) a supply contract in terms inter alia, of "the Corporation's" Order No.____________ dated __________________ and the General purchase conditions of "the Corporation" and upon the condition of "supplier's" furnishing security for the performance of "the Supplier's" obligations and/or discharge of "the supplier's" liability under and/or in connection with the said supply contract upto a sum of Rs. _______________ (Rupees_____________________) amounting to 10% (ten percent) of the total contract value. We, ______________________ (hereinafter called "the Bank" which expression shall include its successors and assigns) hereby jointly and severally undertake and guarantee to pay to "the Corporation" in rupees forthwith on demand in writing and without protest or demur of any and all moneys anywise payable by "the Supplier" to "the Corporation" under, in respect of or in connection with the said supply contract inclusive of all the Corporation's losses and damage and costs, (inclusive between attorney and client) charges, and expenses and other moneys anywise payable in respect of the above as specified in any notice of demand made by "the Corporation" to the Bank with reference to this Guarantee upto and aggregate limit of Rs.___________ (Rupees __________________________ ) and "the Bank" hereby agrees with "the Corporation" that: 1. This Guarantee/Undertaking shall be a continuing Guarantee / Undertaking and shall remain valid and irrecoverable for all claims of "the Corporation" and liabilities of "the Supplier" arising upto and until midnight of _______________ 2. This Guarantee/Undertaking shall be in addition to any other guarantee or security whatsoever that "the Corporation" may now or any time anywise have in relation to "the Supplier's obligation/liabilities under and/or connection with the said supply contract, and "the Corporation" shall have full authority to take recourse to or enforce this security in preference to the other security(ies) at its sole discretion and no failure on the part of "the Corporation" to enforcing or requiring enforcement to any other security shall have the effect of releasing "the Bank" from its full liability hereunder. 3. "The Corporation" shall be at liberty without reference to "the Bank" and without affecting the full liability of "the Bank" hereunder to take any other security in respect of "the Supplier's" obligation and/or

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liabilities under or in connection with the said supply contract and to vary the term vis-a-vis "the supplier" of the said supply contract or to grant time and/or indulgence to "the Supplier" or to reduce or to increase or otherwise vary the prices of the total contract value or to release or to forebear from enforcement of all or any of the obligations of "the supplier" under the said supply contract and/or the remedies of "the Corporation" under any other security(ies) now or hereafter held by "the Corporation" and no such dealing(s), variation(s) or other indulgence(s) or agreement(s) with "the supplier" or release of forbearance whatsoever shall have the effect of releasing "the Bank" from its full liability to "the Corporation" hereunder or of prejudicing rights of "the Corporation" against "the Bank". 4. This Guarantee/Undertaking shall not be determined or affected by the liquidation or winding up, dissolution or change of constitution or insolvency of "the supplier" but shall in all respects and for all purposes be binding and operative until payment of all moneys payable to "the Corporation" in terms hereof. 5. "The Bank" hereby waives all rights at any time inconsistent with the terms of this Guarantee/Undertaking and the obligations of "the Bank" in terms hereof shall not be anywise affected or suspended by reason of any dispute having been raised by "the suppliers" (whether or not pending before any arbitrator, officer, tribunal or court) or any denial of liability by "the supplier" or any other order of communication whatsoever by "the supplier" stopping or preventing or purporting to stop or prevent any payment by "the Bank" to "the Corporation" in terms hereof. 6. The amount stated in any notice of demand addressed by "the Corporation" to "the Bank" as liable to be paid to "the Corporation" by "the supplier" or as suffered or incurred by "the Corporation" on account of any losses or damages or costs, charges/and/or expenses shall be as between "the Bank" and "the Corporation" be conclusive of the amount so liable to be paid to "the Corporation" or suffered or incurred by "the Corporation", as the case may be, and payable by "the Bank" to "the Corporation", in terms hereof. 7. Not withstanding anything contained herein above : i) Our liability under this guarantee shall not exceed Rs.......... ii) This Bank Guarantee shall be valid upto and including .......; and iii) We are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of 30 days from the date of expiry of this guarantee. 8. "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the agreement/contract or MOU entered into between "the supplier" and "the Bank" in this regard. IN WITNESS Where of __________________ Bank, has executed this document at ________________ on _______________ 200 . ____________________________ Bank (by its constituted attorney) (signature of a person authorized to sign on behalf of "the Bank")

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TENDER FOR ADVANCED PROCESS CONTROLS

(VOLUME -II )

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INDEX S.No Title

1. DEFINITIONS & ABBREVIATIONS

2. JOB OBJECTIVE

3. BACKGROUND & INTRODUCTION

4. PRE BID QUALIFICATION

5. LICENSER JOB SCOPE

6. HPCL JOB SCOPE

7. DELIVERABLES

8. DURATION OF JOB

9. PAYMENT TERMS

10. GUARANTEES AND LIABILITIES

11. MISCELLANEOUS TERMS AND CONDITIONS

12. Annexure – I Description of Process Units

13. Annexure– II Diagrammatic representation of DCS and APC

14. Annexure – III SCOPING STUDY REPORT

15. Annexure – IV Post Audit of MVPC

16. Annexure – V Post Audit of IPPP

17. Annexure – VI – Warranty Services

18. Annexure – VII – AMC (Annual Maintenance Contract) Services

19. Annexure – VIII – Technical Specifications of MVPC and IPPP

20. Annexure – IX – Technical Specifications of Hardware

21. Annexure – X – Schedule of Quotation

22. Annexure – XI – Project Team

23. Annexure – XII – Check List of Documents to be submitted with the Offer

24. Annexure – XIII – Nil Deviation Statement

25. Annexure – XIV – Summary of Systems Proposed

Contd..

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1.0 DEFINITIONS

1.1 ABB - Asea Brown Boveri

1.2 ADVANCED PROCESS CONTROL (APC) shall mean collectively both Model Based Multivariable Controller (MVPC) and Inferential Property Prediction Package (IPPP)

1.3 AMC – Annual Maintenance Contract

1.4 APP Node – Interface hardware for DCS supplied by Tata Honeywell GUS / TDC 3000

1.5 ATF – Aviation Turbine Fuel, a stream from Atmospheric Distillation column of CDUs given further treatment.

1.6 BG – Bank Guarantee

1.7 C4s – Organic compound with carbon chain consisting of 4 carbon atoms

1.8 CDU-I - Crude Distillation Unit – I, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.9 CDU-II – Crude Distillation Unit – II, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.10 CDU-III – Crude Distillation Unit – III, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.11 COT – Coil Outlet Temperature

1.12 CRN – Cracked Naptha – Stream from FCCUs blended to Motor Spirit.

1.13 CV – Control Variable

1.14 DCS – Distributed Control System

1.15 DHDS – Diesel Hydro Desulferisation Unit, process unit of HPCL, Visakh Refinery, Visakhapatnam

Contd..

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1.16 DV – Disturbance Variable

1.17 ECGW3 – Existing gateway hardware supplied by M/s Yokogawa for Centum XL.

1.18 FAT – Factory Acceptance Test

1.19 FBP – Final Boiling Point

1.20 FCCU-II – Fluidized Catalytic Cracking Unit – II, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.21 FCCU-I(R) – Fluidized Catalytic Cracking Unit – Revamp, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.22 FO – Fuel Oil – Product made from Refinery.

1.23 GCU – Gas Concentration Unit

1.24 GENERAL CONDITIONS OF CONTRACT (GCC) shall mean the general conditions usually followed for the contracts of Hindustan Petroleum Corporation.

1.25 H2 – Hydrogen Unit, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.26 HCO II – Heavy Cycle Oil – Stream from FCCU-II Distillation Column

1.27 HD – Heavy Diesel, a stream from Atmospheric Distillation column of CDUs

1.28 HN – Heavy Naptha, a stream from Atmospheric Distillation column of CDUs

1.29 HPCL – Hindustan Petroleum Corporation Limited.

1.30 IBP – Initial Boiling Point

1.31 IFP – Institut Francais Du Petrole (France)

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1.32 INTERFACE SOFTWARE shall mean any software required for interfacing DCS, its Gateway and/ or supervisory computer.

1.33 IMS – Interface hardware for DCS supplied by M/s ABB

1.34 IPPP – Inferential Property Prediction Package

1.35 KERO – Kerosene, a stream from Atmospheric Distillation column of CDUs

1.36 KTI – Kinetics Technology International

1.37 LCOI - Light Cycle Oil – Stream from FCCU-I(R) Distillation Column

1.38 LCOII – Light Cycle Oil – Stream from FCCU-II Distillation Column

1.39 LD – Light Diesel, a stream from Atmospheric Distillation column of CDUs

1.40 LICENSE AGREEMENT shall mean the agreement to be executed/entered into between Licenser and the Licensee to firm up the conditions under which the Licenser shall grant the Licensee the right to use the Licenser’s technology and improvements for implementing and operating the technology in the Licensee’s UNIT.

1.41 LICENSEE – shall mean Hindustan Petroleum Corporation Limited, Visakh Refinery, Visakhapatnam.

1.42 The LICENSER shall mean the party/parties who warrants that it is the owner of the technology or a legal representative of the PRINCIPAL who owns the technology to be acquired by the LICENSEE through this tender and has the right to grant to Licensee the use of the same. Licenser is the legal entity bidding for this Project in whose name the tender document is issued.

1.43 LIMS – Laboratory Information Management System. The system has been customized for Refinery requirements. The front-end screens are made using Visual Basic with SQL Server forming the backend database.

1.44 LOI – Letter of Intent

1.45 LPG – Liquified Petroleum Gas, a Refinery product

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1.46 LSHS – Low Sulfur Heavy Stock, a product made from Refinery

1.47 LSTK – Lump Sum Turn Key

1.48 MMTPA – Million Metric Tonnes Per Annum

1.49 MV – Manipulated Variable

1.50 MVPC – Multi-Variable Predictive Controller.

1.51 P&IDs – Process and Instrumentation Diagrams

1.52 PFDs – Process Flow Diagrams

1.53 PIN – Process Information Network. The system is installed for viewing the process information. The database installed is IP.21 from Aspentech with appropriate interface software from Aspentech

1.54 PRBS – Pseudo Random Binary Signal

1.55 The PRINCIPAL shall mean the original owner of the Technology who grants the Licenser the right to grant the Licensee the use of the technology.

1.56 PRU – Propylene Recovery Unit, process unit of HPCL, Visakh Refinery, Visakhapatnam

1.57 RTDBMS – Real Time DataBase Management System

1.58 RVP – Reid Vapor Pressure

1.59 SAT – Site Acceptance Test

1.60 SITE LICENSE shall mean the right to use, implement and operate the Technology in any present or future facilities of HPCL-Visakh Refinery.

1.61 SOQ – Schedule of Quotation. This is the format in which Licenser is requested to quote his cost.

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1.62 SR – Short Residue – Stream from Vacuum Distillation Column of CDUs

1.63 SRN – Straight Run Naptha, stream from Naptha stabilizer

1.64 SRU – Sulfur Recovery Unit

1.65 TCO- Total Cycle Oil, combined stream of light cycle oil and heavy cycle oil from FCCUs

1.66 TECHNICAL SPECIFICATIONS shall mean the part of the Tender Document, which gives the project details necessary for the Licenser to quote for this job.

1.67 The TECHNOLOGY shall mean individually or collectively the know-how of matrix based Model Predictive Multi-variable Controller and Inferential Property Prediction Package developed by the Licenser or his PRINCIPAL.

1.68 TECHNOLOGY TRANSFER shall mean the complete transfer of know-how with training for designated engineers as mentioned in the Tender document at PRINCIPAL’s works and association of Licensee’s engineers in all the activities of Project, which ensures complete self- sufficiency to implement, operate and maintain the Technology.

1.69 The TENDER DOCUMENT shall mean the conditions set forth in the Tender Document and all their separate Sections / Volumes / Documents to be read collectively and shall include all subsequent addendum, corrections /modifications and variations, if any.

1.70 THL – Tata Honeywell Ltd

1.71 TPA – Tonnes per Annum

1.72 The UNIT shall mean individually or collectively the facilities where the Technology is intended to be implemented.

1.73 UOP – Universal Oil Products

1.74 VBGO – Visbreaker Gas Oil – Stream from Visbreaker Unit Distillation Column

1.75 VBU – Visbreaking Unit, process unit of HPCL, Visakh Refinery, Visakhapatnam

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1.76 VD – Vacuum Diesel, a stream from Vacuum Distillation column of CDUs

1.77 VGO – Vacuum Gas Oil – Stream from Vacuum distillation column of CDUs. This forms feed for FCCUs

1.78 VR – Visakh Refinery. This is one of the two refineries of HPCL (a Government of India enterprise). The refinery is located at Visakhapatnam in the state of Andhra Pradesh.

1.79 WGC – Wet Gas Compressor

1.80 YBL – Yokogawa Blue Star Limited.

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2.0 JOB OBJECTIVE

To design, install, supply and commission Model based Multivariable Predictive Controller and Inferential Property Prediction Package at HPCL-Visakh Refinery along with required hardware, interface software and training as per specifications laid down in the tender document on LSTK (Lump Sum Turn Key) basis for the following Process Units:

Phase - I a. CDU-I b. CDU-III c. FCCU-I(R) Phase - II d. CDU-II e. FCCU-II & PRU f. VBU g. DHDS & HYDROGEN

The Model based Multivariable Predictive Controllers and Inferential Property Prediction Package shall be suitable for long term use throughout the life cycle of the plant.

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3.0 INTRODUCTION

Hindustan Petroleum Corporation Limited (HPCL), a Government of India enterprise,

has crude oil refining operations at Mumbai and Visakhapatnam in India with wide

network for marketing and distribution of products.

3.1 HPCL intends to implement Model based Multivariable Predictive Controller and

Inferential Property Prediction Package at its Refinery located at Visakhapatnam

(called as Visakh Refinery) for its process units (CDU-I, CDU-II, CDU-III,

FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen) on LSTK (lump sum

turn key) basis.

3.2 The design capacities of the units mentioned above are as under:

CDU-I : 1.5 MMTPA

CDU-II : 3.0 MMTPA

CDU-III : 3.0 MMTPA

FCCU-I(R) : 0.95 MMTPA

FCCU-II : 0.65 MMTPA

PRU : 23000 TPA of Propylene

VBU : 1.0 MMTPA

DHDS : 1.8 MMTPA

Hydrogen : 25000 NM3 / Hr

Tha actual sustained thruputs may be higher

3.3 A brief description of the Process Units is given in Annexure-I.

3.4 The existing DCS connected to Process Units of HPCL is shown in Annexure-II

3.5 The scoping study for MVPC & IPPP has already been done by HPCL with the

assistance of renowned APC consultant. A copy of the scoping study report is

enclosed in Annexure- III.

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3.6 It is intended to award the job of design, supply, installation, commissioning,

testing and training of the appropriate Model based Multivariable Predictive

Controller and Inferential Property Prediction Package for the process units of

HPCL, VR (requirements of which are specified in this document) through this

tender on turnkey basis.

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4.0 PRE BID QUALIFICATION

The bidder shall satisfy all the following five (item nos 4.1 to 4.5) prequalification criteria. If any one criteria is not satisfied, the bid shall be rejected and no further review beyond this stage shall be done.

4.1. The bidder should be Principal Licenser of APC Technology or subsidiary of Principal licenser of APC technology. The bidder shall provide a notarized copy of the suitable supporting document. In case of subsidiary, the Principal Licenser of APC Technology shall submit an undertaking for the active involvement and responsibility for every stage of implementation of APC Project and also the technology support for next 5 years from the date of issue of this tender

OR

The bidder should be a Joint Venture Company (JVC) / Collaboration / Partnership with the Principal Licenser of APC Technology. The JVC / Collaboration / Partnership shall be minimum 1 year old from the date of issue of this tender. The notarized copy of the suitable document clearly indicating the status of JVC / Collaboration / Partnership shall be provided alongwith an undertaking from the Principal Licenser of APC Technology for the active involvement and responsibility for every stage of implementation of APC Project and also the technology support for next 5 years from the date of issue of this tender.

Offers from the bidders who do not fall in above categories are not acceptable.

4.2. The offered APC technology should have been successfully implemented in atleast one Crude distillation Units (Atmospheric and Vacuum distillation), two Fluidised Cracking Units (FCCU) and two DHDS / Hydrotreater units of Petroleum Refineries during last 5 years from the date of issue of this tender. Copy of the notarized documents (completion certificate & satisfactory performance certificate (or Post Audit report)) shall be provided.

4.3. Annual turnover of the bidder in at least one of the last three financial years, as applicable, should not be less than Rs. 4 crores (Rupees Four crores only) or US

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$0.87 million (US Dollar Eight hundred seventy thousand only). Turnover of Principal Licenser of APC Technology is also acceptable in case bidding is done by subsidiary. A published copy of the annual report or such other acceptable documents (audited Profit & Loss account, audited balance sheet etc) shall be submitted.

4.4. Bidder shall submit bank solvency certificate from their bankers for an amount of Indian Rs 1 crores or the equivalent in US Dollars duly confirmed by any Indian bank recognized by Reserve Bank of India. The solvency certificate should be in the name of the specific entity bidding for this job. The solvency certificate shall not be prior to January 1, 2005.

4.5. Bidders must have technical support base in India with sufficient and qualified technical manpower to facilitate implementation and post warranty technical support. Licenser to submit an undertaking giving details of its technical support base and qualified technical manpower in India.

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5.0 JOB SCOPE OF THE LICENSER

The implementation of Model based Multivariable Predictive Controller (MVPC) and Inferential Property Prediction Package (IPPP) is planned to be carried out in two phases. Phase-I shall comprise of 3 (three) Process Units and Phase-II shall comprise of 4 (Four) Process Units. Following Process Units shall be covered in the above mentioned phases: Phase –I : CDU-I, CDU-III, FCCU-I(R)

Phase – II : CDU-II, FCCU-II & PRU, VBU, DHDS & Hydrogen For each phase, the scope of job of the Licenser for design, engineering, supply,

installation, commissioning, training and testing of hardware / software of Advanced Process Control for Process Units of HPCL, VR is planned to be carried out in stages given below. The stages mentioned below are applicable to each phase / each process unit for which MVPC / IPPP are to be implemented.

Stages Title

1. Pre implementation activities 2. Functional Design specification (FDS) 3. Step Test 4. Detailed Design Specifications (DDS) 5. Factory Acceptance Test (FAT) 6. Controller Graphics Generation and Installation 7. Commissioning 8. Site Acceptance Test (SAT) 9. Training 10. Updated Documentation 11. Post Audit 12. Warranty Services 13. Post Warranty AMC support

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5.1 Stage –1: Pre Implementation activities

5.1.1 This Stage shall start with the Kick Off Meeting (KOM). Following points shall be covered as minimum during KOM: • Finalization of date for start of Project • Documents / Data / Support required from HPCL. • Proposed schedule of executing the Job (Bar chart to be provided

by the Licenser) • Licenser to provide information on type of inferential techniques

which shall be used for inferring various properties. • Details on functional integration of APC modules with regulatory

controls of DCS and among APC modules themselves. • Place of work of Licenser and the place where HPCL shall visit for

finalization of FAT. • Licenser to give HPCL a draft license agreement copy for review.

5.1.2 Licenser to review and study the P&IDs and have discussion with Process / Operations / Laboratory / Planning representatives on the Operating philosophy of the process units.

5.1.3 Licenser shall check the existing regulatory controllers, which will affect the commissioning of APC modules and document the changes required before commencement of project implementation and provide guidance for smooth take-off of the project.

5.1.4 Licenser shall bring out any changes required in APC strategies (vis a vis strategies proposed in the scoping study) based on information gathered during pre-implementation activities (Kick off meeting, discussions, etc).

5.1.5 Licenser shall submit 3 copies of the draft report along with soft copy on pre implementation activities detailing KOM, basic regulatory controllers checks carried out, APC strategies along with changes, if any, as identified in the point 5.1.4.

5.1.6 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any, and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.1.7 Licenser to submit 3 copies of final hard bound duly approved pre-implementation report together with soft copy for Stage-I completion .

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5.2 Stage – 2: Functional Design Specification (FDS)

5.2.1 Licenser to check field responses of basic regulatory controllers and carry out tuning / configure new regulatory controller, if required.

5.2.2 Licenser to identify the inferentials and develop offline inferential models. 5.2.3 The inferential property prediction package as per specifications given in

the tender document shall be utilized to develop the inferential models. 5.2.4 Licenser to identify the APC models that are required to be developed. 5.2.5 Licenser to prepare draft procedure for carrying out step test. The

procedure shall be linked to pointwise check lists. 5.2.6 Licenser shall submit 3 copies of draft FDS report (which shall include

inferential models along with procedure & calculations and envisaged APC models required to be developed and step test procedure as minimum) along with soft copy to HPCL for review.

5.2.7 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any, and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.2.8 Licenser to submit 3 copies of final hard bound FDS report together with soft copy for Stage-II completion which shall include following as minimum: • Identified Inferentials • Envisaged APC Models to be developed • Step test procedure

5.2.9 Licenser to provide “Developer / Administrator Level Training” to HPCL officers as per the details given in item number 5.9.1.

5.3 Stage – 3: Step Test

5.3.1 Licenser to carry out step test for identification / confirmation of response of various interlinked process parameters as per the agreed step test procedure.

5.3.2 The step test shall also include the verification of inferential model output in the offline mode. In case of variation in the inferential model output, same need to be reworked till the inferential model is acceptable to HPCL.

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5.3.3 Licenser shall submit 3 copies of draft Step Test report along with soft copy to HPCL for review.

5.3.4 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.3.5 Licenser to submit 3 copies of final hard bound step test report together with soft copy for Stage-III completion

5.4 Stage – 4: Detailed Design Specifications (DDS)

5.4.1 The MVPC package as per technical specifications given in this tender document shall be utilized for development of models / controller etc.

5.4.2 Licenser to prepare the Detailed Design Specifications (DDS) of the APC models and the controller(s) based on the step test data for process parameters, lab results and all previous data / information collected.

5.4.3 The Detailed Design Specification shall include final controller structure to be implemented, inferential calculation details, complete list of tag numbers used as input / output for MVPC, Inferential etc. and Models finalized for the controllers.

5.4.4 Licenser shall submit 3 copies of Draft report along with soft copy of Detailed Design Specifications for HPCL review.

5.4.5 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL

5.4.6 Licenser shall prepare the draft Factory Acceptance Test (FAT) procedure. The procedure shall be linked to pointwise check lists.

5.4.7 Licenser shall submit 3 copies of Draft FAT procedure report along with soft copy for HPCL review.

5.4.8 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL

5.4.9 Licenser to submit 3 copies of final hard bound DDS report together with soft copy for Stage-IV completion which shall include the following: • Approved Detailed Design Specifications • Approved Factory Acceptance Test Procedure.

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5.5 Stage – 5: Factory Acceptance Test (FAT)

5.5.1 Licenser shall build the controller based on the controller structure and models identified in the stage-IV and carry out off-line simulation and tuning activities.

5.5.2 The Licenser shall submit an internal test report to HPCL minimum two weeks prior to the start of FAT in order to inform HPCL of its readiness.

5.5.3 FAT shall be performed at Licenser’s office to verify the compliance of the developed MVPC models with DDS.

5.5.4 Licenser to carry out FAT to demonstrate the performance of offline simulation / controllers as per FAT procedure.

5.5.5 FAT shall be witnessed by HPCL representatives.

5.5.6 Licenser shall submit 3 copies of Draft FAT completion report along with soft copy for HPCL review.

5.5.7 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.5.8 Licenser to submit 3 copies of hard bound approved FAT report together with soft copy for Stage-V completion

5.6 Stage – 6: Controller Graphics Generation and Installation

5.6.1 Licenser shall deliver, install and commission the hardware supplied as per the technical specifications given in the Tender document.

5.6.2 Licenser shall configure / develop graphics for DCS panel operator which shall serve as interface with the APC modules. These shall be in the form of DCS tags which will allow the DCS panel operator to choose set points, ranges, constraints, etc.

5.6.3 Licenser shall provide necessary security so as to distinguish between graphic pages for operators and engineers.

5.6.4 Licenser shall install the configured MVPC models / controllers, Inferentials and other required software (supplied under the current

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Project) on the hardware machines and make the system ready for commissioning after testing the communication with respect to DCS etc.

5.6.5 The licenser shall prepare and configure the reports required for monitoring of APC strategies.

5.6.6 Licenser shall prepare the draft detailed commissioning procedure and check list to be followed during commissioning each of the identified MVPC model / Inferentials.

5.6.7 Licenser shall submit 3 copies of Draft installation report along with details of commissioning procedure together with soft copy for HPCL review.

5.6.8 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.6.9 Licenser to submit 3 copies of final hard bound report together with soft copy for Stage-VI completion

5.6.10 Licenser to provide “User level training” to HPCL personnel as per the details given in 5.9.2 of the tender document.

5.7 Stage – 7: Commissioning

5.7.1 Licenser shall commission the developed inferentials and the MVPC controller as per the identified procedure and check list.

5.7.2 Licenser to carry out online tuning of the controller. 5.7.3 Licenser shall submit 3 copies of Draft report on Commissioning activities

along with soft copy for HPCL review 5.7.4 HPCL shall review and comment on the same and the Licenser shall

incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.7.5 Licenser shall prepare the Draft Site Acceptance Test (SAT) procedure. The procedure shall be linked to pointwise check lists.

5.7.6 Licenser shall submit 3 copies of Draft SAT procedure along with soft copy for HPCL review.

5.7.7 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

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5.7.8 Licenser to submit 3 copies of final hard bound report together with soft copy for Stage-VII completion which shall include: • Commissioning report • Approved SAT procedure

5.8 Stage – 8: Site Acceptance Test (SAT)

5.8.1 Licenser to sign the License Agreement for MVPC and IPPP Softwares with the Licensee (i.e. HPCL, VR)

5.8.2 Licenser to conduct SAT as per approved SAT procedure. 5.8.3 SAT shall be witnessed by HPCL representatives. 5.8.4 Licenser shall submit 3 copies of Draft SAT completion report along with

soft copy for HPCL review. 5.8.5 HPCL shall review and comment on the same and the Licenser shall

incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.8.6 Licenser to submit 3 copies of final hard bound report on SAT together with soft copy for Stage-VII completion

5.9 Stage – 9: Training

5.9.1 Developer / Administrator Level Training (Technology Training) For each phase, Licenser shall provide extensive training to 8-10 licensee’s engineers at PRINCIPAL Licenser’s works, which ensures complete self-sufficiency in implementing, operating, troubleshooting, maintaining the complete APC technology (shall be conducted before Step test i.e. before Stage-III). This training shall be conducted by the personnel well qualified and have complete knowledge on the technical aspects of the offered technology and have adequate experience in implementation of the technology. The training shall be focused for technology absorption by the licensee’s engineers. Licenser shall provide the details of the Technology Training such as Course contents, Location of Training and Time Schedule in the Bid.

Contd..

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There shall be two batches of this training, one in Phase-I and another in Phase-II. Licenser shall clearly indicate the location/s of the training.

5.9.2 User Level Training Licenser shall provide adequate training to around 60 number licensee’s operating and maintenance personnel at Licenser’s Indian Office for 3-5 working days. The training shall be held in maximum 7 batches (both phases included, one batch each for one unit) of 7-10 licensee’s personnel. This training need to be conducted before carrying out commissioning activity i.e. before starting the Stage – VII.

5.9.3 The Licenser shall provide requisite training material to all the participants of the respective training courses.

5.10 Stage – 10: Updated Documentation

5.10.1 Following documents in 6 number hard bound copies shall be supplied by Licenser to licensee within one month from successful completion of SAT. The manuals shall have index followed by the content with perfect alignment. The manual shall be aided with the screen captures.

A) Administrative Manual

This shall be made as a complete guide for the administrator. All the documents required for administrator to manage the server and APC applications shall form part of this manual. This shall comprise of following as minimum: i. Maintenance aspects ii. Backup iii. Troubleshooting guide iv. Installation of Operating system, APC modules,

Inferentials etc v. Procedure of updation of MVPC / Inferential models based

on operating performance and lab results vi. Management of Server

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vii. Reports (daily / monthly) for monitoring of APC strategies B) Unit wise Operating Manual

This shall be made as a complete guide for Operating the APC modules. The manual shall describe various modules, limitations, troubleshooting, graphics configured etc. This shall comprise of following at minimum: i. Details of each MVPC strategy and Inferential in each

Process Unit ii. Identified MVPC strategies and inferentials iii. Steps for running / shutting down the APC modules /

Inferentials iv. Various graphics made as front end v. Troubleshooting vi. Limitations, if any vii. How the APC should be operated to get maximum benefit

C) Training Manual This shall be made as guide to enable the licensee to train their other operators. This shall be in the form of easy stepwise guide with screen captures.

5.10.2 Following items in 3 number CD-ROMs shall be supplied by Licenser to licensee within one month from successful completion of SAT: • APC modules both real time and offline • Configured inferential models • Administrative manual as described in point 5.10.1 • Operating Manual as described in point 5.10.1 • Training Manual as described in point 5.10.1

5.10.3 The Licenser shall update the Detailed Design specification after SAT and provide the updated document in 6 number hard bound copies along with 3 number CD –ROMs to licensee.

5.10.4 The Licenser shall properly document any other activities, test results etc. during the various Stages of project execution to the satisfaction of Licensee. These documents shall be handed over to HPCL after successful completion of SAT.

5.11 Stage – 11: Post Audit

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5.11.1 Licenser shall carry out the Post Audit of the installed MVPC and Inferentials as per Annexure – IV and Annexure – V respectively after the Site Acceptance test.

5.11.2 Licenser to submit 3 copies of Draft Post Audit report along with soft copy for HPCL review.

5.11.3 HPCL shall review and comment on the same and the Licenser shall incorporate HPCL’s comments, if any and resubmit the report for HPCL’s review till the fulfillment of HPCL’s requirement and approval by HPCL.

5.11.4 Licenser to submit 3 copies of final hard bound report together with soft copy for Stage-XI completion

5.12 Stage – 12: Warranty Services

5.13.1 The licenser shall provide warranty for one year (after successful completion of Site Acceptance Test (SAT)) for maintenance and support services for MVPC, Inferential Property Prediction Package, APC hardware and Interface software supplied for Process Units of HPCL - Visakh Refinery.

5.13.2 The warranty document clearly specifying its scope is attached as Annexure – VI. The standard warranty document being part of the License agreement (as supplied by the Licenser) shall automatically stand replaced by warranty document attached as Annexure VI

5.13 Stage – 13: Post Warranty AMC Support

5.13.1 The licenser shall provide Post warranty AMC support for 3 (three) years (after the completion of warranty period) for maintenance and support services for MVPC, Inferential Property Prediction Package, APC hardware and Interface software supplied for Process Units of HPCL - Visakh Refinery.

5.13.2 The Post Warranty AMC support / AMC agreement clearly specifying its scope is attached as Annexure – VII. Any standard maintenance document / agreement of the licenser shall automatically stand replaced by the AMC Support Agreement Document attached as Annexure-VII.

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6.0 HPCL’s JOB SCOPE

6.1 HPCL will supply only the available data (viz PFDs, DCS graphic prints, P&IDs, Process Data, DCS / laboratory data) which are needed for development of the model upon written request. Any additional information required need to be collected / generated by the Licenser from his own sources.

6.2 Necessary electrical power supply and place for installation of the hardware shall

be made available by HPCL.

6.3 HPCL will designate a project coordinator who will interact with Licenser for execution of required project activities. HPCL shall depute its representative for Project activities conducted at site as well as out of site as deemed required by HPCL. Travel and living expenses of HPCL personnel shall be to HPCL account.

6.4 Existing Gateways to DCS (APP Node, IMS, ECGW3) as mentioned in the

Annexure-II, shall be made available by HPCL.

6.5 Carry out review of the draft document submitted by the Licenser in respective stages (as given in the Job scope of the Licenser - item 5.0) within one week

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7.0 DELIVERABLES Licenser to supply the Multi Variable Predictive Controller (MVPC) and Inferential Property Prediction Package (IPPP) along with necessary hardware items as per the following deliverables: 7.1 Phase – I and Phase-II

7.1.1 License for MVPC and IPPP The Licenser shall supply the MVPC and IPPP software together with all the other software modules required for APC implementation in the process units (meeting the requirement laid down in Annexure - VIII and all other terms & conditions). All software shall be licensed to HPCL, VR.

7.1.2 Hardware and Furniture items The licenser shall supply the hardware items as detailed in the `

Annexure - IX 7.1.3 Implementation Services

The licenser shall design, install, supply and commission Model based Multivariable Predictive Controller and Inferential Property Prediction Package defined by the job scope of this project as described in section 5.0 along with all other terms and conditions of this tender document.

7.1.4 Training The vendor shall provide training services as per the requirements laid down in job scope (section 5.9 and all other terms and conditions).

7.1.5 Warranty and Post Warranty AMC Support The vendor shall provide Warranty Services and AMC support as per the requirements laid down in job scope (section 5.12 and 5.13 and all other terms and conditions).

7.1.6 Documentation The vendor shall supply all documentation as per the requirements laid down in job scope (section 5.10 and all other terms and conditions)

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8.0 DURATION OF THE JOB The Project implementation shall be taken up in two phases as defined in the point number 5.0. Each phase shall be completed within the time frame given below: 8.1 Phase-I

The date of start of Phase-I shall be Kick Off meeting date, which shall be advised by HPCL within one month of the placement of the purchase order. 8.1.1 Kick Off Meeting

Zero Date 8.1.2 DDS (Completion of Stage–IV of Job scope of this tender document) Within 7 months from Zero Date 8.1.3 FAT (Completion of Stage–V of Job scope of this tender document)

Within 2 months of completion of DDS 8.1.4 SAT (completion of Stage – VIII of Job scope of this tender document)

Within 3 months from the date of completion of FAT Notes a) Total duration for completion of phase-I shall be 12 months from the zero date.

Liquidated Damages shall be applicable in case the total time for Phase-I completion exceeds 12 months from zero date for reasons not attributable to HPCL. Liquidated Damages for individual milestone as mentioned in the points 8.1.1, 8.1.2, 8.1.3 and 8.1.4 shall not be applicable.

b) Liquidated damages shall be applicable on total value of Purchase Order (Phase-I

and Phase-II) as per HPCL’s General Conditions of Contract (GCC), in case of delay in completion in Phase-I.

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27

8.2 Phase – II (after completion of Phase-I) The date of start of Phase-II shall be Kick off meeting date, which shall be advised by HPCL after the completion of Phase-I. 8.2.1 Kick Off Meeting

Zero Date 8.2.2 DDS (Completion of Stage – IV of Job scope of this tender document)

Within 7 months from Zero Date 8.2.3 FAT (Completion of Stage – V of Job scope of this tender document)

Within 2 months of completion of point DDS 8.2.4 SAT (completion of Stage – VIII of Job scope of this tender document)

Within 3 months from the date of completion of point FAT Notes

a) Total duration for completion of phase-II shall be 12 monthsfrom zero date. Liquidated Damages shall be applicable in case the total time for Phase-II completion exceeds 12 months from zero date for reasons not attributable to HPCL. However, Liquidated Damages for individual milestone as mentioned in the points 8.2.1, 8.2.2, 8.2.3 and 8.2.4 shall not be applicable.

b) Liquidated damages shall be applicable on total value of Purchase Order

(Phase-I and Phase-II) as per HPCL’s General Conditions of Contract (GCC), in case of delay in completion in Phase-II.

Contd..

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28

9.0 PAYMENT TERMS 9.1 Phase – I

CDU-I CDU-III FCCU-I(R)

1.0 Supply of Software (Cost of item 1.0 of Schedule of Quotation) On the day of start of Site Acceptance Test (SAT) i.e. start of Stage VIII of Section 5.0 of this tender document and on signing of License Agreement of respective unit

50% 50% 50%

On the day of successful completion of Post Audit

50% 50% 50%

2.0 Supply of Computer Hardware items and Furniture items (Cost of item 2.0, 3.0 of Schedule of Quotation) On receipt of material at site 70% On completion of Stage-VI of Job Scope of Licenser (Section 5.0) as given in this tender document

30%

3.0 Supply of Implementation Services (Cost of items 4.1, 4.2, 4.3 of Schedule of Quotation) After completion of Stage-IV (DDS) of Job Scope of this tender document (Section 5.0)

30% 30% 30%

After completion of Stage-V (FAT) of Job Scope of this tender document (Section 5.0)

15% 15% 15%

After completion of Stage-VII (Commissioning) of Job scope of this tender document (Section 5.0)

15% 15% 15%

After satisfactory completion of Site Acceptance Test (SAT) and on receipt of BG*

15% 15% 15%

After successfully meeting the performance Guarantee in Post Audit

25% 25% 25%

4.0 Supply of Training Services (Cost of item 4.4, 4.5 of Schedule of Quotation) After completion of training as per item 4.4 of Schedule of Quotation

100%

After completion of Training as per item 4.5 of Schedule of Quotation

100% 100% 100%

5.0 AMC (Annual Maintenance Contract) for Software & Hardware (Cost of item 5.0 of Schedule of Quotation) On Half Yearly basis after satisfactory completion of each Half year Term

100% 100% 100%

* Bank Guarantee (BG) need to be submitted as per the details given below

Contd..

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29

BANK GUARANTEE (S) SUBMISSION, SCHEDULE, VALIDITY AND CONDITION OF THEIR RELEASE FOR PHASE-I S. No. Type of BG Amount Schedule of

Submission Validity Period Date of Release

1

Performance BG for each unit for the warranty period

10% of Software License fee for

the unit + 10% of

implementation charges for the

unit

On the completion day

of Site Acceptance

Test (SAT) for each unit

Till the expiry of warranty

period of each unit

After submission of fresh BG

equivalent to 20% of the total

Annual Maintenance

Contract (AMC) for 3 years for

each unit.

2

Performance BG for Annual

Maintenance Contract

(AMC) period

20% of the total Annual

Maintenance Contract (AMC) for 3 years for

each unit

Before expiry of warranty for

each unit

Till the end of 3 years of Annual

Maintenance Contract

(AMC) period for each unit

After completion of 3 years of

Annual Maintenance

Contract (AMC) period for each

unit.

Contd..

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30

9.2 Phase – II

CDU-II FCCU-II & PRU

VBU DHDS & H2

1.0 Supply of Software (Cost of item 6.0 of Schedule of Quotation) On the day of start of Site Acceptance Test (SAT) of any of the Phase-II Process Units i.e. start of Stage VIII of Section 5.0 of this tender document and on signing of License Agreement for upgradation to site wide license and submission of four different BGs of amount 12.5% of the Total amount quoted in item 6.0 of SOQ

100%

2.0 Supply of Computer Hardware items and Furniture items (Cost of item 7.0, 8.0 of Schedule of Quotation) On receipt of material at site 70% On completion of Stage-VI of Job Scope of Licenser (Section 5.0) as given in this tender document

30%

3.0 Supply of Implementation Services (Cost of item 9.1, 9.2, 9.3, 9.4 of Schedule of Quotation) After completion of Stage-IV (DDS) of Job Scope of this tender document (Section 5.0)

30% 30% 30% 30%

After completion of Stage-V (FAT) of Job Scope of this tender document(Section 5.0)

15% 15% 15% 15%

After completion of Stage-VII (Commissioning) of Job scope of this tender document (Section 5.0)

15% 15% 15% 15%

After satisfactory completion of Site Acceptance Test (SAT) and on receipt of BG*

15% 15% 15% 15%

After successfully meeting the performance Guarantee in Post Audit

25% 25% 25% 25%

4.0 Supply of Training Services (Cost of item 9.5, 9.6 of Schedule of Quotation) After completion of Technology Training as per item 9.5 of SOQ

100%

After completion of User Training as per item 9.6 of SOQ

100% 100% 100% 100%

5.0 AMC (Annual Maintenance Contract) for Software & Hardware (Cost of item 10.0 of Schedule of Quotation) On Half Yearly basis after satisfactory completion of each Half Year Term

100% 100% 100% 100%

* Bank Guarantee (BG) need to be submitted as per the details given below

Contd..

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BANK GUARANTEE (S) SUBMISSION, SCHEDULE, VALIDITY AND CONDITION OF THEIR RELEASE FOR PHASE-II S. No. Type of BG Amount Schedule of

Submission Validity Period Date of Release

1 For releasing the Software License Fee

Four number BGs (for each process

unit) each of amount 12.5 % of item 6.0 of SOQ

On the Day of Start of SAT

Till the successful

completion of Post Audit of

respective unit

After successful completion of Post Audit of

respective unit

2

Performance BG for each unit for the warranty period

10% of Software License fee for

the unit (Note-1) +

10% of implementation charges for the

unit

On the completion day

of Site Acceptance

Test (SAT) for each unit

Till the expiry of warranty

period of each unit

After submission of fresh BG

equivalent to 20% of the total

Annual Maintenance

Contract (AMC) for 3 years for

each unit.

3

Performance BG for Annual

Maintenance Contract

(AMC) period

20% of the total Annual

Maintenance Contract (AMC) for 3 years for

each unit

Before expiry of warranty for

each unit

Till the end of 3 years of Annual

Maintenance Contract

(AMC) period for each unit

After completion of 3 years of

Annual Maintenance

Contract (AMC) period for each

unit. Note-1: License Fee shall be calculated on pro rata basis with per unit license calculated as follows:

Per unit license fee = (Upgradation license fee for MVPC (item 6.1.1 of SOQ) / 4) + (Upgradation License fee for IPPP (item 6.1.2 of SOQ / 4)) + License fee for interface software for that unit

Contd..

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10.0 GUARANTEES AND LIABILITIES:

10.1 MVPC benefit Guarantees and Liabilities Licenser to guarantee the following for MVPC: 10.1.1 The following minimum benefits shall be guaranteed:

Phase-I CDU-I : 4.71 cents per barrel of crude processed.

CDU-III : 8.57 cents per barrel of crude processed. FCCU-I(R) : 18.57 cents per barrel of feed processed Phase–II CDU-II : 7.53 cents per barrel of crude processed. FCCU-II & PRU: 18.87 cents per barrel of feed processed VBU : 2.06 cents per barrel of feed processed DHDS & H2 : 3.69 cents per barrel of feed processed

10.1.2 These guaranteed figures shall be validated as per the post implementation audit procedure given in Annexure – IV of this Tender document.

10.1.3 If the guaranteed benefits are not met in the post audit, the LICENSER shall carry out corrective engineering within 30 days (subject to maximum 3 number of times) immediately after post audit of MVPC & IPPP without any additional charges. Licenser shall then carry out Post Audit within next 15 days for failed parameters till all guarantees for that unit are fulfilled.

10.1.4 If the guaranteed benefits are not met for MVPC of a particular unit even after corrective engineering, 25% of the total Implementation Charges of that particular unit and 50% license fee of MVPC of that particular unit shall be deducted as penalty for non- performance.

10.1.5 As license fee for Phase-II is a lumpsum amount, for penalty purpose, the license fee of MVPC for individual units of Phase-II units will be considered on prorata basis of the license fee quoted for “Upgradation of MVPC license for 3 process units to sitewide license (as per item 6.1.1 of SOQ)” i.e. license fee for individual unit covered in Phase-II shall be the amount quoted against item 6.1.1 of SOQ / 4.

Contd..

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33

10.2 Inferentials Guarantee and Liabilities 10.2.1 The inferential property measurements shall match to their corresponding lab

values in terms of their percentage variability as per the evaluation procedure and details given in Annexure V.

10.2.2 If the guaranteed performance of inferential properties for a particular unit is not met, penalty for non performance shall be levied, on pro-rata basis, as per the formula and details given in Annexure – V.

10.3 Project completion Guarantee and Liabilities

As given in item 9.1 for Phase-I and 9.2 for Phase-II.

Contd..

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11.0 MISCELLANEOUS TERMS AND CONDITIONS The below mentioned terms and conditions need to be met by the Licenser. The terms and conditions have been split into following categories: • General • Project Team • Implementation / Commissioning / Training / Time Schedule • SAT / Post Audit

11.1 General

11.1.1 The Licenser shall quote as per Schedule of Quotation given in Annexure-X. The Licenser shall quote for the entire scope of work as detailed in the various sections of the tender document. Incomplete quotation w.r.t. Schedule of Quotation shall be rejected.

11.1.2 Advanced Process Controls (APC) Project is planned to be implemented in two phases on LSTK basis. Three number process units shall be covered in Phase-I and four number process units in Phase-II. Licenser to quote for both the phases together in the Schedule of Quotation and same will be evaluated together.

11.1.3 The order for supply of all the items / services (for both the phases) as given in Schedule of Quotation shall be placed on the single vendor. Split order shall not be placed.

11.1.4 Tender submitted by the Vendor (i.e. LICENSER) shall remain valid for acceptance for a period of 6 months from the due date of the tender. The LICENSER shall not be entitled during the said period to revoke or cancel, his tender or to vary the tender given or any term thereof without the consent of HPCL, in writing. In Case of LICENSER revoking or canceling the tender or varying any terms in regard thereof without the consent of HPCL in writing, HPCL shall forfeit the Earnest money paid by him along with this tender.

11.1.5 On account of exigencies, if the LICENSER is asked to extend the validity of offer, the same should be without any deviation of terms and conditions and change in prices. However if the LICENSER deviates from the terms and conditions and change of prices while extending the validity of offer, the offer shall be liable for rejection.

Contd..

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35

11.1.6 HPCL reserves the right to revoke or cancel the implementation of APC in any process Unit(s) in any Phase and no cancellation charges shall be paid to the licenser.

11.1.7 Upon cancellation of implementation of APC in any of its process units covered under Phase-I, following cost specified by the Licenser for the related items mentioned as under (as given in the Schedule of Quotation) shall not be payable: a. Supply of Software for that particular unit (item 1.1, 1.2, 1.3 of SOQ) b. Supply of hardware for that particular unit (item 2.1, 2.2, 2.3 of SOQ) c. Supply of implementation services for that particular unit (item 4.1, 4.2, 4.3

of SOQ) d. User training for that particular unit (item 4.5.1, 4.5.2, 4.5.3 of SOQ) e. AMC for that particular unit for software (item 5.1, 5.2, 5.3 of SOQ) f. AMC for that particular unit for Hardware (item 5.4, 5.5, 5.6 of SOQ)

11.1.8 Upon cancellation of implementation of APC in any of its process units covered

under Phase-II, following cost specified by the Licenser for the related items mentioned as under (as given in the Schedule of Quotation) shall not be payable: a. Supply of Interface Software for that particular unit (item 6.2, 6.3, 6.4, 6.5

of SOQ) b. Supply of hardware for that particular unit (item 7.1, 7.2, 7.3, 7.4 of SOQ) c. Supply of implementation services for that particular unit (item 9.1, 9.2, 9.3,

9.4 of SOQ) d. User training for that particular unit (item 9.6.1, 9.6.2, 9.6.3, 9.6.4 of SOQ) e. AMC cost against License Fee for interface software for that particular unit

(item 10.2, 10.3, 10.4, 10.5 of SOQ) f. AMC for that particular unit for Hardware (item 10.6, 10.7, 10.8, 10.9 of

SOQ) 11.1.9 In case, the Licenser needs any clarification as to the meaning or intent of any

part of the tender, the Licenser shall seek written clarification from HPCL. No oral interpretation shall be entertained.

11.1.10 The Licenser shall submit an indicative bar chart for Phase-I and Phase-II along with the offer.

11.1.11 The Licenser shall accept full job scope of the tender document. Part acceptance of Job Scope is not acceptable. Licenser to submit his acceptance of the entire Job Scope by stamping and signing on each page of the tender

Contd..

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36

document. Also, Licenser shall submit No Deviation Certificate attached as Annexure-XIII.

11.1.12 Licenser to submit the documents / Information as per the check list given in Annexure-XII.

11.1.13 The licenser shall inform HPCL regarding visit of any foreign nationals at least 45 days in advance along with necessary documents viz passport copy etc.

11.1.14 The Licenser shall give an undertaking that the DCS shutdown or plant shutdown is not required for MVPC and IPPP implementation

11.1.15 The Licenser shall ensure that the existing running applications i.e. PIN (Process Information Network) and LIMS (Laboratory Information Management System) is not affected in anyway for running APC application. PIN and LIMS shall continue to be running independent of APC application.

11.1.16 All Softwares supplied shall have perpetual type licenses signed with HPCL. 11.1.17 Complete design, engineering, testing at Licenser’s work place as well as at site,

transport of complete deliverables to HPCL’s project site including packing, forwarding and freight, storage at site including storage insurance, handing over at various stages, installation, testing, start up, commissioning and successful handing over the system to HPCL shall be under Licenser’s scope.

11.1.18 Licenser shall be responsible for all the APC project activities & the total job shall be treated as Lump Sum Turnkey Project (LSTK).

11.1.19 The APC strategies (controller, inferentials, etc) to be implemented shall be based on the specifications given in scoping study report attached as Annexure – III.

11.1.20 In cases, where enhanced regulatory control is capable of achieving the desired objectives, they should be implemented without MVPC in consultation with Licensee. However, the implementation of the same shall be in Licenser’s scope and shall be carried out in presence of HPCL Engineers.

11.1.21 Licenser shall offer the latest version of the software (as on date of tender submission) meeting the minimum specifications as given in the Annexure-VIII. Licenser to submit an undertaking for the same.

11.1.22 The Licenser shall provide all the software tools, which are required for complete design, development, testing, tuning & commissioning of Multivariable control / Inferential and maintenance of the system. These shall be available at Licensee works for administration, maintenance etc. even after implementation of APC project.

Contd..

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37

11.1.23 The Licenser shall provide all application files / source codes, which the Licensee may require for administration and maintenance of MVPC / IPPP. HPCL reserves all the rights of being the sole owner of any developed model and source code etc. No part of the software shall be concealed by the licenser which would obstruct further developments / application modifications in future. Complete documentation of the system shall be submitted to Licensee before completion of the project as detailed in job scope of the Licenser.

11.1.24 The interface for the supervisory computer (Interface driver software) with DCS shall be in the scope of Licenser. However, DCS hardware gateway shall be supplied by the Licensee. The configuration of Interface hardware machines (i.e.Gateways) existing at HPCL is given in Annexure -II

11.1.25 HPCL reserves the right to bring its own internal / external experts for conducting FAT / SAT / Post Audit.

11.1.26 The Licenser shall provide networking device (hubs, cables etc) for connecting supervisory computers / PC / Laptop etc with requisite UTP cables, connectors etc.

11.1.27 All the documentation shall be provided in English language. 11.1.28 All manpower (both skilled and unskilled), tools, tackles and consumables shall

be arranged by the Licenser at their cost. 11.1.29 Successful completion of Post Audit of all the Units shall be treated as Closure

of the Project. However, Licenser shall continue to provide the required Warranty services for one year from the date of SAT completion

11.1.30 Licenser shall submit along with the offer the specific tasks/ activities in the project execution and the corresponding responsibility of Licenser, HPCL and joint activities.

11.1.31 The Licenser shall specify the information required from Licensee for carrying out all the activities in the offer itself.

11.2 Project Team

11.2.1 The organization chart for rendering logistics and on-site services during implementation of the Project is attached as Annexure-XI

11.2.2 The Project Manager should have atleast 8 years of experience (Prior to the date of issue of this tender document) in the field of APC implementation and should have executed at least one APC Project in the role of Project Manager.

11.2.3 The lead engineer(s) should have atleast 5 years of experience (Prior to the date of the issue of this tender document) in the field of APC implementation.

Contd..

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38

11.2.4 Lead engineer for a particular unit viz. CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS / Hydrotreater & Hydrogen should have implemented APC in atleast one unit of that kind in the role of lead engineer.

11.2.5 The lead engineer shall be extensively involved during all the stages of the Project viz. step testing, model building, Functional design preparation and commissioning of MVPC and IPPP.

11.2.6 The control engineer should have atleast 3 years of experience (Prior to the date of the issue of this tender document) in the field of APC implementation. The control engineer for a particular unit should have implemented MVPC in atleast one of the three units CDU, FCCU, DHDS / Hydrogen

11.2.7 The experience of the persons to be involved in the project should be submitted strictly as per the proforma given in Annexure – XI.

11.3 Implementation / Commissioning / Training / Time Schedule

11.3.1 Review of regulatory control system in DCS, tuning of regulatory controllers to match with MVPC settings for better operational stability, Data collection, DCS graphic & point building, all DCS related jobs for MVPC / IPPP implementation shall be in Licenser’s scope.

11.3.2 Licenser shall provide 24 hours engineering coverage during plant step testing and commissioning of the controller.

11.3.3 The Licenser shall associate Licensee’s engineers along with his engineers for data analysis, model building, design & off-line/on-line controller tuning/calibration to make the technology transfer complete.

11.3.4 Licenser shall develop graphics for operating, making on- off and changing the MVPC parameters from DCS. These DCS graphics should be capable of selectively or collectively starting or stopping controllers and individual Manipulated Variable (MV), Control Variable (CV) and Disturbance Variable (DV).

11.3.5 The graphic pages shall be accessible from the PC on which real time APC modules/applications are running.

11.3.6 The graphic pages shall also be accessible from the PC on which off-line APC modules/applications are running.

11.3.7 Weekly/ monthly program shall be drawn up with Licensee keeping in view the target set in the time schedule.

11.3.8 The Licenser shall scrupulously adhere to the time schedules by deploying adequate personnel. In all matters concerning the extent of target set out in

Contd..

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39

weekly and monthly programs and degree of achievement, the decision of Licensee is binding. The time period shall however, exclude the time taken for annual turn around and planned shut down by HPCL.

11.4 FAT/SAT / Post Audit

11.4.1 FAT shall be witnessed at Licenser’s location by HPCL representatives. In case FAT is not successful at first instance, Licenser shall make necessary arrangements at his own cost for conducting FAT at HPCL-Visakh Refinery location.

11.4.2 SAT shall be performed only after 15 days (and not more than 30 days) of successful running of APC modules after its commissioning. It shall be conducted individually for each Process unit.

11.4.3 All the modules (MVPC, Crude change over, Inferential Property prediction package etc) should run on online mode during SAT.

11.4.4 All controllers must show online service factor of 95% for 15 consecutive days each for Process Units (CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen) during SAT. Online factor calculation shall exclude the downtime due to severe process upsets attributable to Licensee or circumstances beyond the scope of APC Licenser . In case, online factor is not met, the Licenser shall have to carry out corrective engineering within 30 days immediately after SAT for MVPC / IPPP. After corrective engineering SAT need to be repeated.

11.4.5 During SAT, acceptance test for crude switch over shall be carried out for two crude changeovers in each unit CDU-I, CDU-II and CDU-III. The product streams during switch over should meet product specifications with minimum process disturbance and switchover time.

11.4.6 Furnace pass balance strategy, Furnace combustion control strategy, stripping steam ratio control strategies, Feed switch over control strategy shall be among the strategies to be implemented for the process units and need to be successfully demonstrated during SAT.

11.4.7 Licenser’s engineer (minimum 1 number) shall be stationed at HPCL Visakh Refinery for a period of 3 months after SAT of FCCU-I(R) amd FCCU-II units to ensure the stabilization and effective operation of APC in these units.

11.4.8 Post Audit shall be unit-wise and should be completed within one month from the SAT.

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40

11.4.9 Similarly, post audit for inferential shall be carried out along with the post audit of the MVPC as described above.

11.4.10 During Post Audit, if it is required to supply/modify any hardware or software to meet the guarantees, the same shall be executed by the Licenser without any cost implication to HPCL.

11.4.11 During the post audit period, no overstay compensation will be paid to the Licenser. Also, cost of all the resources required for Post audit shall be in the scope of Licenser at their cost.

11.4.12 If any modification is to be carried out during Post Audit, then the same shall be incorporated in the as built documents and revised as built document shall be submitted in six sets.

Annexure-I

1

BRIEF DESCRIPTION OF PROCESS UNITS A) Crude Units (CDU – I / II / III) : Crude Distillation Units

There are three Crude Distillation Units namely CDU I, CDU II & CDU-III at Visakh Refinery with the capacity of 1.5 MMTPA, 3.0MMTPA and 3.0 MMTPA respectively. Crude oil is preheated in a battery of heat exchangers by hot streams coming out of CDU/ VDU (Vacuum Distillation Unit) and finally heated to the required temperature in a fired heater before entering crude distillation column. In this column, crude is fractionated into various products i.e Unstabilized Naphtha, Heavy Naphtha, Kerosene, Diesel and Reduced Crude Oil (RCO). Unstabilized Naphtha is further processed in a “Stabiliser Column” where LPG [Liquefied Petroleum Gas] and Naphtha are separated.

Reduced crude oil from column goes in as feed to Vacuum Distillation Unit (VDU).

Vacuum Distillation Unit : There are three Vacuum Distillation Units at VR. Reduced Crude Oil from a CDU is distilled under vacuum in respective VDU. The required temperature for distillation is achieved by a fired heater and the required vacuum is achieved by set of ejectors. The side streams from VDU are Vacuum Diesel, LVGO, HVGO and Short Residue obtained from Vacuum Distillation Column. There are three VDUs at VR. Vacuum Gas Oil (LVGO and HVGO) form the feed to FCCUs. Short residue from VDU is used for Fuel Oil / LSHS production or as feed to VisBreaker Unit.

B) VisBreaker Unit (VBU) The capacity of VisBreaker Unit is 1.0 MMTPA. This unit helps in reduction of Viscosity of Vacuum Residue by subjecting it to thermal cracking using the heater and Soaker Drum and in the process generates

Annexure-I

2

LPG, Naphtha, Gas Oil and Vistar ( Visbreaker Unit Bottoms) which are separated in a Distillation column.

C) FCCU Units (FCCU-I (R), FCCU-II) There are two FCCUs at VR- FCCU-I(R)(EXXON technology) & FCCU-II (UOP design) with the capacity of 0.95 MMTPA and 0.65 MMTPA respectively. Vacuum Gas Oil from CDUs or Tank is pumped to Furnace for achieving the desired Preheat Temperature. Fresh feed is mixed with hot regenerated catalyst and enters the Reactor at the base of riser where it gets vaporized at the reactor temperature by the hot catalyst. The mixture of oil vapor and catalyst travels up the riser into the reactor. The gas oil commences to crack immediately after coming in contact with the hot catalyst in riser and continues until the oil vapors are disengaged from the catalyst in the Reactor. The catalyst activity lost during the cracking reaction due to coke built up on the catalyst is restored in the regenerator. Restoration of catalyst activity is accomplished by burning off the coke and any hydrocarbon which was not completely stripped off in the reactor stripping section. Vapors from the reactor are sent to fractionation section where they are fractionated into recycle gas oil which is returned to the reactor and products like Unstablized Naptha, Light cycle oil, heavy cycle oil and clarified oil are separated from the Fractionating Column. Unstabilized Naptha from the Fractionator overhead flows to Gas Concentration Unit (GCU) through WGC for recovery of LPG and Gasoline.

D) Propylene Recovery Unit (PRU): This unit is designed for recovery of Propylene of 95% Purity from Cracked LPG at design capacity of 23000 TPA. It consists of two fractionation columns where Propylene is separated from a Mixture of Propane and C4s.

E) DHDS / Hydrogen Units

Annexure-I

3

DHDS unit DHDS unit is IFP / Axens design with capacity of 1.8 MMTPA. The feed to DHDS unit is a blend of straight run and cracked Gas oils. The Sulphur compounds present in the Diesel are removed in the presence of Hydrogen and Catalyst in the reactor maintained at desired temperature and pressure. Hydrogen Sulphide generated in the process is removed after amine treating in SRU Hydrogen The Process Licenser of Hydrogen unit is KTI / Technip. Hydrogen required for the process requirement is generated in Hydrogen unit using Naphtha as feed and fuel for burning. Hydrogen is produced by steam reforming and is purified in Pressure Swing Adsorption.

Annexure-II

1

EXISTING DCS LAYOUT AND GATEWAY DETAILS

1. Existing DCS and the available gateways are shown above. 2. LIMS is based on Database Management System and has SQL Server 2000 as the backend database

and front end utility developed in Visual Basic (customized to Refinery requirements). 3. Refinery LAN is based on Optical Fibre / UTP cable linkage. 4. Refinery has established PIN network (IP.21 from Aspentech) and has interfaced the above shown

DCS with appropriate interface softwares. 5. ACG10S, proprietary hardware supplied by YBL along with P-III computer is being utilized as

gateway for data communication between YBL Centum DCS and PIN Server. Interface software for collecting data from ACG10S is installed in P-III computer.

6. HPCL has ECGW3 gateway for YBL Centum XL system which is being proposed to be used for APC. Hardware details of the existing gateways at VR SNo Title Gateway for

CDUI,FCCUR Gateway for CDU-II, FCCU-II & PRU

Gateway for CDU-III & VBU

Gateway for DHDS

1 CPU details X86 Family 6 Model 8 stepping 10 Genuine Intel ~ 993 MHz

X86 Family 6 Model 8 stepping 3 Genuine Intel ~ 668 MHz – Simple P-III machine

~ 180 MHz X86 Family 6 Model 8 stepping 10 Genuine Intel ~ 993 MHz

2 RAM 128 128 160 512 3 Operating

System NT 4.0 SP4 NT 4.0 SP5 HP – UX

10.2 NT 4.0 SP 6

4 Cards (Proprietary) other than normal cards

LCNP Nil – Simple PC taking data from ACG10S hardware machine

LCNP RTA

5 Nomenclature of gateway

APP Node Gateway to ACG10S

IMS station APP Node

CDU-I, FCCUR

APP NODE

CDUIII & VBU

IMS

ABB MOD300

DCS

DHDS, HYDROGEN

APP NODE

THL TDC 3000

DCS

THL GUS DCS

REFINERY LAN

CDU-II, PRU, FCCU-II

ACG10S with P-III COMPUTER

YBL CENTUM XL / CS DCS

LIMS SERVER

PIN SERVER

Gateways

DCS

Annexure-III

1

SCOPING STUDY REPORT Attached separately with the Tender document

Annexure-IV

1

POST AUDIT PROCEDURE FOR MVPC IMPLEMENTATION The benefit evaluation procedure shall be done as per the data and procedure provided below: Section I : Procedure Description Section II : The Economic Data of various Products / utilities / Feed Section III : Areas of expected benefits Section IV : Calculation details for Post Audit. Section IV : Other points to be considered during Post Audit Section I : Procedure Description 1. During the Post Audit, the controller will be switched OFF for 48 hours to

establish a base case and then switched ON for 48 hours to collect the data of APC ON case.

2. Post audit will be carried out individually for each of the Process Units 3. During the Post Audit, same crude shall be processed in CDUs during APC OFF

and ON cases. For all other units, similar feed shall be processed during APC OFF and ON cases.

4. Hourly average data will be collected using RTDBMS for both OFF and ON cases.

5. Lab sampling shall be carried out preferably every 8 hours or as agreed mutually between licenser and HPCL. Re-sampling / Re-testing, if any, shall be carried out only after the requirement is agreed mutually between licenser and HPCL.

6. Data conditioning will be done for the hourly averages based on any abnormal condition arising, instrument indication being bad or faulty or any in-correct modes of regulatory controllers for both the OFF and ON case. In such case, the data of hourly averages will be completely deleted from the calculations.

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2

7. The limits for various CV’s specifically product properties shall be agreed upon and not violated during ON or OFF case. This is because, the product yield pattern cannot be compared when different quality products are being made.

8. The inferential calculations will be turned OFF during the OFF case run. 9. The list of tags for various flows required for a unit and target values of product

streams of a unit shall be agreed mutually between Licenser and HPCL before the start of the Post Audit.

10. The value of the Product slate of a unit for MVPC “ON” case shall be compared with the value of the product slate for MVPC “OFF” case to ascertain the benefit.

11. The material balance of a unit for “OFF” and “ON” cases shall be prepared and standard deviation for all data shall be calculated.

Section II : FEED / PRODUCT PRICES

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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Section III : Areas of Expected Benefits CDU-I / CDU-II / CDU–III 1. Throughput Maximisation 2. LPG yield maximization 3. ATF maximization 4. Diesel Yield maximization 5. VGO maximization FCCU-I(R) 1. Throughput maximization 2. LPG yield maximization 3. CRN yield maximization 4. LCO yield maximization FCCU-II / PRU 1. Throughput maximization 2. LPG yield maximization 3. CRN yield maximization 4. TCO yield maximization 5. Propylene yield maximization VBU 1. VBGO yield maximization DHDS / Hydrogen 1. Hydrogen saving benefit Section IV : Calculation Details The calculation details for various units is given as per following: 1. CDU-I, II, III, FCCU-II, FCCU-I(R) 2. VBU & PRU

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3. DHDS & Hydrogen

1. FOR CDU-I, CDU-II, CDU-III, FCCU-II, FCCU-I(R) The set point of Crude / Feed Flow Controller shall not be changed during APC OFF case and APC ON case. Benefits in the units mentioned are calculated on two accounts i.e. due to Product maximization due to incremental Crude / Feed flow. Product maximization calculation procedure is given in point number 1.1 below. Thruput maximization shall be calculated as per the procedure given in point number 1.2.

1.1 Product Maximization

After conditioning of the data for both the OFF and ON cases,

average of the conditioned data would be used for further calculations.

Material balance for a Unit to be prepared. This shall total to 100%. In case of variation, efforts to be made to identify the faulty flow meter and make suitable adjustment for material balance after mutual agreement. Further normalization shall be carried out using the weighted average for all products.

The calculation procedure for product flows are mentioned below:

If average flow rate of product 1 = F1 M3/Hr

Then Mass flow rate of Product 1 = F1 * D1 Tons/Hr where D1 is

density of Product 1.

Yield % of Product 1 = (F1 * D1)/(F0 * D0) * 100 = Y1

(where F0 and D0 are crude / feed flow rate and density

respectively)

Similarly, Yield % will be calculated for all products

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Consider the sum of all yield % = Y

Then Normalized Yield % of Product 1 = Y1/Y * 100 = N1

Similar Normalization for all Products will be done.

Normalized Mass flow rate shall be calculated for Base case Feed

flow finalized during APC OFF case. Therefore, Normal Mass

Flow shall be (Normal Yield/100)*F

Where F is the Base Case Feed Flow

This will be calculated for all Product streams.

The Normalized Mass flow rate will then be multiplied by the cost

of the Product stream to get the Price of the Product in Rs/Hr.

This will be carried out for both OFF and ON cases. The table as

shown below shall be made for both APC OFF case and APC ON

Case.

Averag

e Flow

Yield (Y) Normal Yield

(NY)

Normal Mass

flow

(NM) for Base

case feed flow

(F)

Price

C1

Price

Tons/h

r

% % Tons/hr Rs/To

n

Rs/Hr

Crud

e /

Feed

F0

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LPG F1 Y1=F1/F0*1

00

NY1=(Y1/Y)*1

00

NM1=NY1*F/1

00

C1 C1*NM

1

SRN F2 Y2=F2/F0*1

00

NY2=(Y2/Y)*1

00

NM2=NY2*F/1

00

C2 C2*NM

2

HN F3 Y3=F3/F0*1

00

NY3=(Y3/Y)*1

00

NM3=NY3*F/1

00

C3 C3*NM

3

… … … … … … …

… … … … … … …

Total Y 100 F X1

The total value is calculated during APC OFF case (Rs/hr)= X1

The total value is calculated during APC ON case(Rs/Hr)= X2 Value addition due to APC Rs/hr = X2 – X1

The value shall be converted to cents per barrel = V(1)

1.2 Thruput Maximization

Crude / Feed during APC Off Case (T/hr) = Y1 Crude / Feed during APC ON Case (T/hr) = Y2 Crude / Feed incentive (Rs / Ton) = I Incremental Crude = Y2-Y1 Value addition due to Incremental Crude / Feed = (Y2-Y1)*I The value obtained above shall be converted to cents per barrel V(2) (considering base case feed flow).

Total Value generated by APC = V(1) + V(2)

2. For VBU & PRU

The procedure to be followed shall be same as Point number 1.1 as given above.

3. For DHDS & Hydrogen

Hydrogen consumed per ton of Feed during APC OFF case - H1

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Hydrogen consumed per ton of Feed during APC ON case - H2 Saving in Hydrogen - H1-H2 Hydrogen Price - I Value Addition - (H1 – H2) * I The value obtained above shall be converted to cents per barrel (considering base case feed flow).

Section V : Other points to be considered during Post Audit • The dollar conversion rate shall be taken as one Dollar = Rs 45 and shall remain firm

for evaluation purposes • Unit on stream hours shall be taken as 8000 hours for CDU-I, CDU-II, CDU-III,

FCCU-II, PRU, FCCU-I(R), DHDS, Hydrogen and 35% service factor for VBU, as required

• The post audit for CDUs shall be conducted for crude being processed at that time.

Since the gains are based on delta increase in the parameters, the value of crude incentive & Price of Products will remain same for crude during the post implementation audit regardless of the origin of the crude

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POST AUDIT PROCEDURE FOR INFERENTIAL PROPERTIES PREDICTION PACKAGE

The post audit for Inferential Properties shall be carried out along with the Post audit for MVPC. The percentage variability with respect to laboratory results to be guaranteed for each property is attached as Table 1 below. Wherever, guarantees on IBP of some product are to be verified, the 5% distillation point of that product shall be verified and similarly wherever, FBP of some product is to be verified, the 95% distillation point of that product shall be verified. However, IBP and FBP shall also be displayed. As it is desirable to have more number of samples analyzed for verifying the guarantees on inferential properties therefore, the test for inferential properties shall be for 96 hours i.e. for 48 hours without MVPC in line and next 48 hours with MVPC in line during the post audit period i.e. the post audit test run for IPPP shall run parallel to post audit test run for MVPC The procedure to be followed shall be as follows: 1. The required (mutually agreed & practically feasible) number of samples for each

guaranteed inferential shall be collected during the test run period with proper time stamping.

2. The list of Property inferentials with required guarantee is given in the Table1 below.

3. The value of each property say, L(1,2,3… n) as determined by laboratory shall be recorded.

4. Lab sampling shall be carried preferably every 8 hours or as agreed mutually between licenser and HPCL. Re-sampling / Re-testing, if any, shall be carried out only after the requirement is agreed mutually between licenser and HPCL.

5. The corresponding values of the predicted inferential properties shall be recorded. Say I(1,2,3,….n)

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6. The guaranteed range of value shall then be calculated as mentioned in point number 7 below

7. Corresponding to % lab variability guarantee, the lab value L shall be multiplied by the guaranteed percentage of lab variability for that property to obtain G(min), whereas the lab value L shall be divided by the guaranteed percentage of lab variability for that property to obtain G(max)

8. The values (I) as determined by the inferential property prediction package should fall between the range G(min) and G(max) for respective samples

9. Similar calculations shall be carried out for all the samples collected. 10. The inferential output for minimum 80% of the samples shall meet the guarantee

of respective property. If it is below 80 %, penalty as mentioned below shall apply

• Let the total number of properties guaranteed for a particular unit be X • The number of properties for which the guarantees could be proved is Y. • Let the License fees of IPPP for a particular unit is L and the implementation

fees that unit is IM. The liability for not meeting the guarantees for inferential properties is considered as 50% of License Fees of IPPP and 25% of implementation cost of a unit.

• Thus, penalty for not meeting the guarantees of a unit = ((X-Y)/X) * (25% IM+ 50% of L)

• The license Fee of IPPP for Phase-II units shall be on pro-rata basis i.e. license of units covered in Phase-II shall each be “Upgradataion License Fee for IPPP (as per item 6.1.2 of SOQ)/ 4”

Take for example, the SRN RVP. The guaranteed and predicted inferential properties shall be worked out as indicated below.

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Guaranteed range of predicted Inferential property values

Property to be tested

Sample Time

Lab Value (L)

Guranteed range of Inferential property

Min Value G(min)

Max Value G(max)

Value as predicted by Inferential Property Package (I)

Meeting / Not Meeting

SRN RVP 0800 hrs

L(1) V L(1) * (100-V)/100

L(1) * (100+V) /100

I(1) Meeting

SRN RVP 1200 hrs

L(2) V V * L(2) L(2) / V I(2) Not Meeting

… … … … … … … … … … … … … … … …

Percentage of inferential output meeting the guarantee = _____%

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Table 1 : Inferential Property and required Accuracy

CDUs (CDU-I, II, III)

CDU properties Guaranteed Range of Inferential Accuracy with respect to lab results in +/- % (V)

LPG WEATHERING 10

SRN RVP 5

SRN FBP 5

Kero / ATF Flash point 5

ATF FBP 2

ATF Freezing Point 5

LD, HD & VD 95% distillation point 2

LD, HD & VD Flash point 5

VGO End Point 2

SR Viscosity 5

FCCU-II, PRU & FCCU-I(R)

LPG Weathering 10

CRN FBP 5

CRN RVP 5

CRN Octane (RON) 2

LCO Flash 5

LCO 95% distillation point 2

Propylene Purity 2

DHDS & Hydrogen

Sweet Diesel Flash Point 5

Sweet Diesel 95% distillation 2

Stabilised Naptha FBP 2

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VBU

LPG WEATHERING 10

VB Naptha RVP 5

VB Naptha End point 2

VBGO Flash 5

VBFO Viscosity 5

VB Tar Viscosity 5

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Annexure – VI

WARRANTY AGREEMENT FOR MAINTENANCE AND SUPPORT SERVICES

FOR MVPC, INFERENTIAL PROPERTY PREDICTION PACKAGE, APC

HARDWARE AND INTERFACE SOFTWARE SUPPLIED BY LICENSER FOR

PROCESS UNITS CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU,

DHDS & HYDROGEN AT VISAKH REFINERY.

Licenser, hereby agrees to provide to Hindustan Petroleum Corporation Limited, Visakh

Refinery (hereinafter referred to as "LICENSEE"), “Warranty” in connection with

maintenance and support services as a part of Advanced Process Control implementation

at the Process units of Visakh Refinery i.e. CDU-I, CDU-II, CDU-III, FCCU-I(R),

FCCU-II & PRU, VBU, DHDS & Hydrogen. The following terms and conditions shall

apply during the entire warranty period.

1 The Warranty period for individual unit shall start after successful completion of

Site Acceptance Test (SAT) in accordance with the specifications of the

respective unit viz. CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU,

VBU, DHDS & Hydrogen

2 The warranty agreement shall be for one year from the date of start of warranty of

the respective units. The warranty agreement shall be with the Principal Licenser

/ manufacturer of the product (Hardware and Software). Warranty shall be unit-

wise.

3 The visiting advanced control professional shall be one of the Lead Engineers

involved during the implementation stage of the project or the lead engineer

having similar experience elsewhere. The visiting lead Engineer should be

capable of handling the hardware including supervisory computer and software

problems related to APC of all the Seven units viz. CDU-I, CDU-II, CDU-III,

FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen

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4 The scope of Warranty shall cover Support and Maintenance of MVPC,

Inferential Property Prediction Package, APC Hardware (including Servers /

machines used for MVPC & IPPP installation, backup server and all the

hardwares supplied under the Project) and Interface Software supplied and

implemented as part of the Advanced Process Control in CDU-I, CDU-II, CDU-

III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen at Visakh Refinery.

Licenser to submit the valid hardware and software AMC agreement (with

Original equipment / software manufacturer) to licensee for the one year period

after SAT. The following services shall form essential part of the scope of the

warranty.

4.1 In case of minor or usage related problems in the system, immediate

telephonic/ Fax/ E-mail support shall be provided by the party.

4.2 In case of major problem, which cannot be resolved through online phone/

E-mail/ Fax. On Site Support shall be provided with in 5 working days.

However, the Licenser will have to correct/ rectify, such problems within

a maximum period of 20 working days from the day it is notified to

Licenser by the Licensee in writing through fax/email. If the system

remains down due to problems with Licenser supplied software and

hardware of APC for reasons solely attributable to Licenser, even after 20

days from the day it is notified to the Licenser, the warranty period will be

extended for a period the system remains down.

4.3 Even if no problem arises in the system, the advanced control professional

of Licenser shall visit the site once in every three months during the

warranty period for 3 days at site to check the proper & efficient

functioning of the system.

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Following activities shall be carried out by visiting APC professional

during such visits:

4.3.1 Analyze the performance of various controllers and evaluate

whether they meet the intended objectives on a sustained basis and

online factor is maintained.

4.3.2 Review critically the control performance of the MVPC, suggest

relaxation of the binding constraints and carry out the necessary

tuning improvements, if necessary, to make the controllers further

effective.

4.3.3 Review the economic targets for the MVPC, suggest and

incorporate necessary changes, to provide the right direction to the

controllers. This may be required to incorporate the new economic

indicators, if any, and make the controller to constantly work

towards the current economic objectives.

4.3.4 Advise and incorporate modifications to the controller

configuration, in terms of proposing addition of new variables/

constraints, deletion of the redundant variables, wherever found

necessary.

4.3.5 Review the Inferential properties performance and carry out any

modifications that are found to be necessary. Suggest and

incorporate any major improvements that would make the

Inferential properties variables more effective and implement new

Inferential properties to meet the changing product quality

specifications of the market.

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4.3.6 To act on the generated error logs so as to ensure that no further

errors are generated based on observations / experience between

the SAT till the date of current visit and as per maintenance

requirement.

4.4 A comprehensive report shall be submitted by the visiting expert on the

APC activities/ modifications carried out during each visit. The report

shall also include suggestions and recommendations for follow-up.

4.5 The priority and scope of jobs to be executed during each visit shall be

decided by the Engineer-in-charge at site, in consultation with the visiting

APC professional, such that the jobs can be completed within the

scheduled duration of 3 days.

4.6 Licenser shall provide Licensee all the software upgrades (subject to

correcting version bugs and minor upgrades of APC modules of same

release) as may be released by Licenser from time to time during the

warranty period without any additional cost and Maintenance Fee for the

License during the warranty period.

4.7 Licenser shall also provide Licensee all regularly issued maintenance

package software and/or user manual updates (subject to correcting

version bugs and minor upgrades of APC modules of same release)

without any additional cost and Maintenance Fee for License during

warranty period.

5 Upgrades of MVPC and Inferential Property prediction package software and

Maintenance software package and/ or User manual updates (subject to correcting

version bugs and minor upgrades of APC modules of same release) shall be

installed by the representative of the Licenser without any additional cost during

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5

their quarterly visit of the year to the site or any emergency visit to the site,

whichever is earlier during the warranty period.

6 Licenser shall fix any and all program defects in the software package(s) and APC

hardware brought to its notice by the licensee that are solely attributable to

Licenser. However, the Licenser’s liability for fixing such defects shall be limited

to the problems that are solely attributable to Licenser, which interfere with

proper execution of the package for which it was originally designed and

upgraded by the Licenser along with hardware supplied by it.

7 Any MVPC, Inferential Property prediction package and/or User Manual

Updates, which are provided to the Licensee under this Agreement, shall be

subject to the same use-rights and restrictions on access set forth in the mutually

agreed Terms and Conditions laid down in the original tender document,

Addendum(s) to the tender document and job order.

8 No cost reimbursements whatsoever shall be paid for the services & License

upgrades provided during warranty period. All boarding, lodging, local

conveyance, Air/ train tickets within India or abroad and any other expenses shall

be borne by the Licenser at his cost.

9 The performance bank guarantee shall remain valid till end of warranty period.

Annexure-VII

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ANNEXURE - VII

ANNUAL MAINTENANCE CONTRACT (AMC) FOR MAINTENANCE AND SUPPORT SERVICES FOR MVPC, INFERENTIAL PROPERTY PREDICTION PACKAGE, APC HARDWARE AND INTERFACE SOFTWARE SUPPLIED BY LICENSER FOR CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & HYDROGEN OF HPCL REFINERY.

Licenser, hereby agrees to provide to Hindustan Petroleum Corporation Limited, Visakh Refinery, Visakhapatnam (hereinafter referred to as "Licensee"), support and Annual maintenance in connection with MVPC, Inferential Property Prediction Package, APC hardware and Interface software supplied by Licenser implemented as a part of Advanced Process Control at CDU-I, CDU-II, CDU-III, FCCU-II, FCCU-I(R), VBU, DHDS, HYDROGEN, VBU OF HPCL REFINERY under the terms and conditions provided hereunder. 1. The Annual Maintenance Contract (AMC) for individual unit shall be applicable

after expiry of the warranty period of the respective unit viz. CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen

2. The agreement shall continue for a period of 3(three) years from the above

starting date of the respective unit (s). The maintenance agreement should be with the Principal Licenser / manufacturer of the product (both hardware and software). AMC shall be unit-wise.

3. In case, the warranty period has not expired and therefore, AMC did not start for

the particular unit(s) amongst the seven units’ viz., CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen in that case, the payment of AMC shall be released only for the unit for which AMC has started. However, as and when AMC of the remaining unit (s) start (s), the payment for that respective unit (s) shall be released accordingly.

4. The scope of the Annual Maintenance Contract (AMC) agreement shall cover

Support and Maintenance of MVPC, Inferential Property Prediction Package, APC Hardware and Interface Software supplied and implemented as part of the

Annexure-VII

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Advanced Process Control in CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen at HPCL Refinery. The following services shall form part of the Annual Maintenance Contract.

4.1 In case of minor or usage related problems in the system, immediate

telephonic/ Fax/ E-mail support shall be provided by the party.

4.2 In case of major problem, which cannot be resolved through online phone/ E-mail/ Fax, On Site Support shall be provided with in 5 working days. However, the Licenser will have to correct/ rectify, such problems within a maximum period of 20 working days from the day it is notified to Licenser by the Licensee in writing through fax/email. If the system remains down due to problems with Licenser supplied software and hardware of APC for reasons solely attributable to Licenser even after 20 days from the day it is notified to the Licenser, the AMC period will be extended for a period the system remains down at no extra cost to HPCL.

4.3 Even if no problem arises in the system, the advanced control professional

of Licenser shall visit the site once in six months for 3 days i.e. two such visits per year for all three years of AMC to check the proper & efficient functioning of the system. Following activities shall be carried out by the visiting APC professional during such visits:

4.3.1 Analyze the performance of various controllers and evaluate

whether they meet the intended objectives on a sustained basis and online factor is maintained.

4.3.2 Review critically the control performance of the MVPC, suggest

relaxation of the binding constraints and carry out the necessary tuning improvements, if necessary, to make the controllers further effective.

4.3.3 Review the economic targets for the MVPC, suggest and

incorporate necessary changes, to provide the right direction to the

Annexure-VII

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controllers. This may be required to incorporate the new economic indicators, if any, and make the controller to constantly work towards the current economic objectives.

4.3.4 Advise and incorporate modifications to the controller

configuration, in terms of proposing addition of new variables/ constraints, deletion of the redundant variables, wherever found necessary.

4.3.5 Review the Inferential properties performance and carry out any

modifications that are found to be necessary. Suggest and incorporate any major improvements that would make the Inferential properties variables more effective and implement new Inferential properties to meet the changing product quality specifications of the market.

4.3.6 To update the error logs based on the performance between ‘SAT’

till the date of current visit and as per maintenance requirement.

4.3.7 During first half-yearly routine visit of each year of AMC, the visiting Advanced control professional shall have to stay for total 5 days (3 days for routine preventive maintenance visit and 2 additional days for training the HPCL personnel). The proposed training is required to constantly update the team involved on the technical aspects and to enhance the maximum benefits from this technology. However depending on the requirement, HPCL at its discretion may utilize the services of the APC professional for APC related jobs of any of seven units viz. CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen for all 5 days or vice versa.

4.4 During first half yearly visit of every year of AMC, the visiting advanced

control professional shall be one of the Lead Engineers involved during the implementation stage of the project or the lead engineer having similar experience elsewhere. The visiting lead Engineer should be capable of handling the hardware and software problems related to APC of all the

Annexure-VII

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seven units viz. CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen. He should also have the capability to provide training on advanced process control to HPCL personnel.

However, during the 2nd half-yearly visit of every year of AMC, the visiting advanced control professional may be any one of the lead engineers or the control engineers involved during the implementation stage of the project or the engineer having similar experience elsewhere. The visiting Engineer should be capable of handling the hardware and software problems related to APC of all the seven units viz. CDU-I, CDU-II, CDU-III, FCCU-I(R), FCCU-II & PRU, VBU, DHDS & Hydrogen

4.5 A comprehensive report shall be submitted by the visiting expert on the

APC activities/ modifications carried out by him and training imparted to HPCL personnel, during each visit. Report should also include suggestions and recommendations for follow-up by technical team of HPCL

4.6 The priority, scope and limit of jobs to be executed during the visit shall

be decided by the Engineer-in-charge at site, in consultation with the visiting APC professional, such that the jobs can be completed within the duration of the scheduled visit.

5. No revision in Annual Maintenance Contract (AMC) charges as given in Job

Order shall be permitted during the entire AMC period of three (3) years. 6. Licenser shall provide Licensee all the software upgrades (subject to correcting

version bugs and minor enhancements of APC modules) as may be released by Licenser from time to time during the said AMC period without any additional cost & Annual Maintenance Fee for the License during the years of Annual Maintenance Contract.

7. Licenser shall also provide Licensee all regularly issued maintenance package

software (subject to correcting version bugs and minor enhancements of APC modules) and/ or user manual updates during AMC period without any additional cost & Annual Maintenance Fee for the License during the years of Annual Maintenance Contract.

Annexure-VII

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8. Upgrades of MVPC and Inferential Property prediction package software and

Maintenance software package (subject to correcting version bugs and minor enhancements of APC modules) and/ or User manual updates shall be installed by the representative of the Licenser without any additional cost during their half-yearly visit of the year to the site or any emergency visit to the site, whichever is earlier.

9. Licenser shall fix any and all program defects in the software package(s) and APC

hardware brought to its notice by the USER that are solely attributable to Licenser. However, the Licenser’s liability for fixing such defects shall be limited to the problems, which are solely attributable to the Licenser, which interfere with proper execution of the package for which it was originally designed and upgraded by the Licenser along with hardware supplied by it.

10. Any MVPC, Inferential Property prediction package and/or User Manual

Updates, which are provided to the Licensee under this Agreement, shall be subject to the same use-rights and restrictions on access set forth in the mutually agreed Terms and Conditions laid down in the original tender document, Addendum(s) to the tender document and job order.

11. From the effective date of start of the agreement and after Completion Date of one

annual term, this Agreement shall continue year to year unless terminated by Licensee (HPCL) by giving written notice thirty (30) days prior to the end of the then current yearly term. This agreement shall remain valid for a period of three (3) years minimum and the same may be further extended by mutual written consent.

12. The payment of AMC charges shall be made on half yearly basis after completion

of the job within thirty (30) days of receipt of the invoice and as per mutually agreed terms and conditions of the job order. No cost reimbursements whatsoever shall be paid for the services & License upgrades provided. All boarding, lodging, local conveyance, Air/ train tickets within India or abroad and any other expenses shall be borne by the Licenser at his cost.

Annexure-VII

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13. The Licenser shall submit a performance bank guarantee equivalent to 20% value of the total Annual Maintenance Contract value for all the three (3) years. This bank guarantee shall be valid for a period of three (3) years and shall be submitted within 10 days of the placement of Letter of Intent/ Job order for Annual Maintenance Contract (AMC)

Annexure-VIII

1

Annexure – VIII

Technical specifications of MultiVariable Predictive Controller (MVPC) and Inferential Property Prediction Package (IPPP) 1.0 Multi Variable Predictive Controller (MVPC)

1.1 Controller capability 1.1.1 The MVPC shall be a model based, predictive, optimising

controller capable of handling control problems with multiple inputs (independent variables) and multiple outputs (dependent variables) having significant interactions.

1.1.2 In one MVPC application (single controller), preferably, it should be possible to handle at least the following number of variables:

• Manipulated variables : 60 • Controlled / Dependent variables: 100 • Disturbance / Feed forward variables: 25 1.1.3 With the MVPC technology offered it should be possible to

configure a single large controller for the whole unit to capture full benefits of APC implementation, if significant interactions are found between various sub-sections of the unit during plant test and / or modelling or if the licensee so desires.

1.1.4 Within the single large controller, capability to define sub-controllers shall be provided and the coordination between these sub-controllers must be through an overall LP technology. Licenser to clearly specify how this will be achieved.

1.1.5 The controller should have embedded optimizer (LP\QP) and the capability to ensure that the process is continuously pushed towards the most profitable and optimal operation.

1.1.6 MVPC shall have facility for switching off any sub-controller with no effect on the overall MVPC performance. Sub-controller status tracking features shall be available.

1.1.7 The MVPC shall be capable of handling constraints both on manipulated variables and controlled variables.

Annexure-VIII

2

1.1.8 The MVPC shall be capable of handling on-line change in control objectives (constraint limit changes/ priority changes/ setpoint or range target changes/ etc.) without switching off the MVPC.

1.1.9 The MVPC shall be capable of accepting control targets either as range or set point .

1.1.10 The MVPC shall have the facility for on-line updation of gains. 1.1.11 The MVPC shall have option of automatically changing the gains

based upon the defined operating range. 1.1.12 The MVPC shall not violate any of the physical, operational,

metallurgical constraints of any equipment specified in it. The MVPC shall ensure safe and stable control methodologies so that it does not cause physical damage to the equipments.

1.1.13 A mechanism shall be provided for automatic mode switching between conventional control and MVPC. During such changeover the transition shall be smooth without set point or controller output bumping. Licenser to specify how this will be achieved.

1.1.14 If one or more MVs are taken off the MVPC, the controller shall be set/configured such that the backup regulatory control scheme, if applicable, takes on for regulating that MV automatically. Features for switching off individual CVs and MVs to be provided.

1.1.15 In case of negative degrees of freedom, the MVPC shall be able to select the controlled variables based on relative importance, keeping the controlled variables within constraints. Licenser to specify how this will be achieved.

1.1.16 MVPC shall have the features of tight control of dependant variables at its set values even when operating close to constraint limits. Licenser to specify how this will be achieved

1.1.17 The MVPC shall be capable of handling the following: zero gain models inverse responses non-square system. anti-reset windup for MV. Non linear gains

Annexure-VIII

3

1.1.18 The MVPC shall have MV/CV set point tracking facility to aid smooth changeover during dropping of MV/CV or switching off of MVPC.

1.1.19 Licenser to specify how the MVPC will handle bad values for MV/CV.

1.1.20 The MVPC shall be capable of optimising independent variables moves based on cost/price information supplied by the operator. Licenser to specify what objectives (minimise cost/maximise profit/etc.) can be specified and how this optimisation will be handled.

1.1.21 The MVPC shall be capable of handling unmeasured disturbances. Licenser to specify how this will be achieved.

1.1.22 The MVPC shall be capable of interfacing with on-line optimiser based on rigorous on-line process models.

1.1.23 The MVPC shall support custom calculations, which shall take input from/write output to MVPC or any other APC module. Licenser to specify how this will be achieved.

1.1.24 In the absence of (that is, say, switching off) inferred controlled variables temporarily, MVPC must have capabilities for controlling the measured intermediate variables related to the inferred calculations which has been switched off. Licenser to specify how this will be achieved.

1.1.25 Specify how many future MV movements are supported by MVPC.

1.1.26 The snap shot data of the MVPC shall be available for use in other custom/offline programs from user interface itself.

1.1.27 The MVPC shall be configurable for execution cycle down to at least once per minute.

1.1.28 The software shall have the feature to start, stop and monitor individual and group of MVPC.

1.1.29 MVPC configured shall be capable of being online even during major operational changes like crude switch in CDU/VDU and feed change in FCCU / DHDS / VBU. The controller should be robust enough to handle these disturbances. Licenser to specify how this will be achieved.

1.1.30 The controller shall be capable of handling the following:

Annexure-VIII

4

Long dead times, unusual dynamics and dynamic compensations.

Unmeasured disturbances All other expected dynamics like catalyst deactivation, feed

rate changes etc. 1.1.31 MVPC configuration must be independent of external database. If

MVPC calls for any separate database then Licenser shall provide and engineer it as part of MVPC. No Existing database in HPCL shall be available for APC purpose.

1.1.32 The existing field instrumentation are sufficient and no new instrumentation is envisaged to realise the APC strategies outlined.

1.2 Data Collector

1.2.1 The MVPC shall be equipped with a data collection tool, which should be capable of collecting on-line, plant test data.

1.2.2 Data collection tool to have facilities for introducing Step Response PRBS (Pseudo Random Binary Signal)

1.2.3 The data collection tool shall be PC/windows NT based. 1.2.4 The data collection tool shall be resident on the same hardware as

the online controller. 1.2.5 The data collection tool shall be capable of storing and viewing the

plant step test data. 1.2.6 Data collection tool to have features for selection of section of the

data for models building for selected variables. 1.2.7 The data collection tool shall be capable of providing the plant test

data in Excel/lotus 123 spreadsheet format, which may be used by licensee for some purpose other than APC project.

1.2.8 The data collection tool shall allow analysis of data even when the plant step test is under way.

1.3 Model Identifier

1.3.1 The MVPC shall be equipped with a model identifier tool, which should be capable of generating models to be used for the MVPC, based on data collected by data collector.

1.3.2 The model identifier tool shall be PC/windows NT based.

Annexure-VIII

5

1.3.3 Modelling tool shall have the capability to identify models from plant test data wherein multiple MVs have been moved simultaneously.

1.3.4 The model identifier tool shall be capable of directly using the data from data collector. In case of need for any second party interface/software. (Like Excel/lotus 123 spreadsheet, etc.), the same shall be included and inbuilt to the tool.

1.3.5 The model identifier tool shall be capable of using the user supplied data in Excel / Lotus 123 and/or text format, if required by licensee.

1.3.6 The model identifier tool shall be capable of running in a stand-alone basis in a separate PC other than the one in which real time controller is envisaged to run.

1.3.7 The MVPC shall have the capability to take user supplied models (say, laplace transform)

1.3.8 Model identifier shall have the capability to handle noise and Licenser to specify the features for modeling of responses with significant noise.

1.4 Controller Builder

1.4.1 The MVPC shall be equipped with an off-line controller building tool, which should be capable of configuring the MVPC control structure off-line.

1.4.2 The off-line controller building tool shall be PC/windows NT based.

1.4.3 The off-line controller building tool shall be capable of running in a stand-alone basis in a separate PC other than the one in which real time controller is envisaged to run.

1.5 Off-line MVPC Simulator

1.5.1 The MVPC shall be equipped with an off-line simulation and tuning tool, which should be capable of simulating the MVPC structure which is proposed to be taken on-line, using the models developed by model identifier tool and controller build by the off-line controller building tool.

Annexure-VIII

6

1.5.2 The simulation shall be capable of working in an interactive mode with adequate graphics support.

1.5.3 The off-line MVPC simulation tool shall be capable of running in a stand-alone basis in a separate PC other than the one in which real time controller is envisaged to run.

1.6 MVPC Graphics

1.6.1 The MVPC shall be supplied with Site License of Graphic User Interface Software, which can be installed on PCs

1.6.2 The MVPC shall have the capability to generate display screens automatically based on controller configuration.

1.6.3 The MVPC shall have the capability to generate custom displays also.

1.6.4 MVPC shall have features (capability/safety features/etc) for view facility at remote locations. Licenser to specify how this will be achieved.

1.7 The LICENSER shall indicate the features that facilitate the Software's

(that is, controller, data collector, model identifier, displays, etc) ease of installation, flexibility, speed of solutions.

1.8 All the MVPC parameters relevant for operators should be passed on to

DCS for display.

1.9 Crude switch in CDUs and feed change in FCCUs / DHDS / VBU detection algorithm / module

It should have the following features: 1.9.1 The algorithm shall detect and indicate the crude / feed

changeovers both in magnitude and direction. 1.9.2 This should give the controller as much advance information of a

crude / feed change as possible so as to enable the controller to take proper action in time and reduce the change over effects.

1.9.3 Only during crude / feed changeovers, it should change and should be relatively constant during normal operation (i.e. in between crude switches).

Annexure-VIII

7

1.9.4 It should not depend on manual entries and analyser inputs for its detection. Licenser shall clearly come out in their offer how this algorithm works.

2.0 Inferential Property Prediction Package (IPPP)

2.1 General

2.1.1 Licenser to provide a comprehensive inferential property calculation package, which shall contain all of the functionality, required for developing and deployment of Inferentials.

2.1.2 The inferential package shall seamlessly interface with the MVPC. 2.1.3 The inferential package shall be PC/Windows NT based. 2.1.4 License for the inferential package shall include runtime license

for all the inferential techniques (like Neural net/ fuzzy PLS/ First Principal etc.).

2.1.5 Licenser to indicate the method & software offered for predicting each individual property against the list of properties mentioned in Clause 2.9 of this Annexure.

2.1.6 Licenser shall clearly come out in their bid, the amount of lab support required against each inferential development and tuning for commissioning as well as for post audit.

2.1.7 For the inferential package, following configuration is preferred. On-line Modules: For real time data transfers, integration with MVPC, scheduling of inferentials or any related calculations or data collection. Off-line Modules: Inferential Model development tool based on different techniques. The on-line module shall be installed on the APC computer where the MVPC is running. The off-line modules shall be on another PC

2.1.8 The existing field instrumentation is sufficient and no new instrumentation will be envisaged to realise the Inferentials.

2.2 Modelling

2.2.1 Code generation or programming shall not be required for configuration of inferentials.

Annexure-VIII

8

2.2.2 The inferential package shall be capable of developing and implementing linear, polynomial, combination, non-linear fuzzy PLS and hybrid Neural net and first principle based inferentials

2.2.3 Inferentials shall be calculated directly from the measured parameters and no intermediate calculations shall be generated which will require maintenance (tuning, user inputs, etc).

2.2.4 Licenser to indicate sampling and analysis requirements for model generation for each inferential calculation.

2.3 Process data handling

2.3.1 The inferential package shall be either stand alone for real time data collection or capable of directly using the data from data collector without need for a second party interface / software (like Excel/lotus 123 spreadsheet, etc.)

2.3.2 The inferential package shall be capable of using the user supplied data in Excel/Lotus 123 spreadsheet and/or text format, if required by licensee.

2.4 Lab data handling

2.4.1 The inferential package shall provide lab data update formats for each inferential calculation. It shall have required features to connect to LIMS. LIMS at HPCL Refinery is based on Microsoft SQL Server database and front end application developed in Visual Basic.

2.4.2 The lab bias update shall be based on how close the unit was to steady state during the sampling instance. A methodology / feature for steady state detection shall be part of the inferential package. Licenser to specify how this will be achieved.

2.5 Off-line Modules

2.5.1 The off-line Modules of inferential package shall have features for data pre-processing (trimming/smoothening, etc) and data validation. The features for variable selection shall be provided.

2.6 User Written Calculations

Annexure-VIII

9

2.6.1 The Inferential package shall support custom calculations, which shall take input from/write output to the inferential package or any other APC module. Licenser to specify how this will be achieved.

2.7 Data validation & variable selection

2.7.1 The inferential package shall be capable of validating (check for out-liers, check against minimum and maximum values) laboratory values and, if necessary, apply an update to the result generated by the package. Licenser to specify how this will be achieved.

2.8 Graphical interface

2.8.1 The inferential package shall be supplied with graphical user interface. The operators and engineers should be able to use displays to operate and manage the inferentials.

2.8.2 The inferential package shall have features (capability/safety features/etc) for view facility at remote locations. Licenser to specify how this will be achieved.

2.8.3 The inferential package shall be supplied with graphical tool for model evaluation and analysis in conjunction with the base data.

2.8.4 The inferential package shall contain interactive menu that allows the engineer to start, monitor and stop individual or groups of inferential applications.

2.9 Specific requirements of Refinery Units.

Following minimum number of Inferentials need to be configured for Process units mentioned as below: 2.9.1 CDUs (CDU-I, CDU-II and CDU-III)

i) Dew point @ Atmospheric column overhead ii) LPG weathering/ LPG C5+ content iii) Naptha RVP, FBP iv) Kero / ATF Flash point v) ATF FBP vi) ATF Freeze point vii) Diesel recovery @ 375 degC / 95% distillation point

Annexure-VIII

10

viii) LD, HD, VD Flash Point ix) LD, HD, VD Pour Point x) VGO end point xi) SR viscosity xii) Bitumen Penetration xiii) Cetane number of Diesel xiv) Naptha RON

2.9.2 FCCU-II, FCCU-I(R), PRU i) LPG weathering / LPG C5+ content ii) CRN RVP, FBP iii) CRN Octane iv) LCO Flash, 95% distillation v) Propylene purity

2.9.3 VBU i) LPG weathering / LPG C5+ content ii) VB Naptha RVP iii) VB Naptha End Point iv) VBGO flash v) VBFO viscosity vi) VB Tar viscosity

2.9.4 DHDS / Hydrogen i) Sweet Diesel flash ii) Sweet Diesel 95% distillation iii) Stabilised Naptha Final Boiling Point iv) CH4 in reformer effluent v) CO in Reformer effluent

Annexure-IX

1 TECHNICAL SPECIFICATIONS OF THE HARDWARE HPCL proposes to procure the hardware as per the specifications given below: 1. Proposed hardware configuration diagram for APC servers in Phase-I and Phase-

II is given on page-3 and page -4 of this Annexure respectively. Each unit shall have individual APC Server (with minimum configuration given in point number 2 below) as shown in the sketches given in page 3 & 4 of this annexure.

2. The proposed minimum hardware configuration of the APC Server for each unit

shall be as under:

IBM make X series 226 with IBM Model number 8648-2BY-2BX 1 GB RAM Single (1 number) Xeon processor 3.06 GHz 10/100/1000 NIC onboard Dual power supply 2 * 36 GB U320 Hot Swappable Integrated Dual channel Ultra 320 SCSI controller Integrated Raid controller supporting RAID 1 48x CD ROM drive, FDD Cables as required Operating System as required and compatible with this hardware

(Operating system shall be licensed to HPCL) 17” color monitor Comprehensive Onsite Warranty from IBM

3. 1 number backup IBM make server (for taking backup, acting as offline server

and other miscellaneous activities). The configuration of the server shall be minimum:

IBM make model X series 235 2 GB RAM Dual (2 number) Xeon processor 3.06 GHz or latest Windows 2003 Server licensed to HPCL 10/100/1000 NIC onboard

Anneuxre-IX

2 Dual power supply 6 * 36 GB 10K U320 HS Dual channel Raid controller with 128 MB Battery backed cache Dual Ultra 320 SCSI controller with Raid 1 support CD ROM drive, FDD Cables as required 17” color monitor 1 number external DVD writer 1 number external DAT drive

4. 1 number HP make Color LaserJet Printer Model 4650 DN with 160 MB

memory, USB port, parallel port, 600 * 600 dpi resolution. The Printer shall be supplied in Phase-I.

5. Godrej make Tables (Model Companion C-2) for installation of the hardware

items. 4 number tables are to be supplied each in Phase-I and Phase-II.

Anneuxre-IX

3

Phase-I Hardware Configuration

APC Server (proposed)

APC Server (proposed)

APC Server (proposed)

Gateway (APP Node)

Gateway (IMS)

Gateway (APP Node)

CDU-I DCS THL TDC3000

CDUIII DCS ABB MOD300

FCCU-I(R) DCS THL TDC 3000

Existing PIN Server

Existing LIMS Server

Existing Users of Refinery for PIN and LIMS

Refinery LAN

Anneuxre-IX

4 Phase-II Hardware Configuration

APC Server (proposed)

APC Server (proposed)

APC Server (proposed)

Gateway (ECGW3)

Gateway (ECGW3)

Gateway (APP Node)

CDU-II DCS YBL Centum XL/CS

FCCU-II & PRU DCS YBL Centum XL / CS

DHDS & Hydrogen DCS THL GUS

Existing PIN Server

Existing LIMS Server

Existing Users of Refinery for PIN and LIMS

Refinery LAN

APC Server (proposed)

Gateway (IMS)

VBU DCS ABB MOD300

Annexure-X

1

Schedule of Quotation (SOQ) Schedule of Quotation is given for both phases separately. Indian bidders to quote in Indian Rupees and foreign vendor shall quote in US Dollars only. Licenser to quote strictly as per the schedule of quotation given below. Quote in currencies other than mentioned above is not acceptable. SOQ for Phase-I Phase-I

Cost S.No Description Curren

cy Figure

Supply of Software 1.1 For CDU-I 1.1.1 License Fee for MVPC for CDU-I

1.1.2 License Fee for Inferential Property Package for CDU-I

1.1.3 License Fee for interface software for CDU-I 1.2 For CDU-III 1.2.1 License Fee for MVPC for CDU-III

1.2.2 License Fee for Inferential Property Package for CDU-III

1.2.3 License Fee for interface software for CDU-III 1.3 For FCCU-I(R) 1.3.1 License Fee for MVPC for FCCU-I(R)

1.3.2 License Fee for Inferential Property Package for FCCU-I(R)

1.0

1.3.3 License Fee for interface software for FCCU-I(R)

Supply of Computer Hardware Items

2.1 1 number Server for CDU-I as per technical specifications given in point number 2 of Annexure-IX

2.2 1 number Server for CDU-III as per technical specifications given in point number 2 of Annexure-IX

2.3 1 number Server for FCCU-I(R) as per technical specifications given in point number 2 Annexure-IX

2.4 1 number backup server as per technical specifications given in point number 3 of Annexure – IX

2.0

2.5 1 number color Laser Jet Printer as per technical specifications given in point number 4

Anneuxre-X

2

of Annexure-IX Supply of Furniture Items 3.0

3.1 Supply of 4 number Godrej make tables (model Companion C-2)

Supply of Services 4.1 Implementation of MVPC / IPPP for CDU-I 4.2 Implementation of MVPC / IPPP for CDU-III 4.3 Implementation of MVPC / IPPP for FCCU-

I(R)

4.4 Cost of Technology training for technology transfer at PRINCIPAL Licenser’s works

4.5 User training 4.5.1 Cost of User training for CDU-I 4.5.2 Cost of User training for CDU-III

4.0

4.5.3 Cost of User training for FCCU-I(R) AMC charges (post warranty period) 5.1 Cost of Annual Maintenance Contract per year

(valid for 3 years) for Software (item 1.1)

5.2 Cost of Annual Maintenance Contract per year (valid for 3 years) for Software (item 1.2)

5.3 Cost of Annual Maintenance Contract per year (valid for 3 years) for Software (item 1.3)

5.4 Cost of Annual Maintenance Contract per year (valid for 3 years) for Hardware (item 2.1)

5.5 Cost of Annual Maintenance Contract per year (valid for 3 years) for Hardware (item 2.2)

5.6 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 2.3)

5.7 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 2.4)

5.0

5.8 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 2.5)

Total

Currency Figure

Anneuxre-X

3

SOQ (Schedule of Quotation) for Phase-II Phase-II

Cost S.No Description Curren

cy Figure

Supply of Software 6.1 Upgradation License

6.1.1 Upgradation of License for MVPC from 3 process units to Site Wide License

6.1.2 Upgradation of License for IPPP from 3 process units to Site Wide License

6.2 For CDU-II 6.2.1 License Fee for interface software for CDU-II

6.3 For FCCU-II & PRU

6.3.1 License Fee for interface software for FCCU-II & PRU

6.4 For DHDS & HYDROGEN

6.4.1 License Fee for interface software for DHDS & HYDROGEN

6.5 For VBU

6.0

6.5.1 License Fee for interface software for VBU 7.0 Supply of Computer Hardware Items

7.1 1 number Server for CDU-II as per technical specifications given in point number 2 Annexure-IX

7.2 1 number Server for FCCU-II and PRU as per technical specifications given in point number 2 of Annexure-IX

7.3 1 number Server for DHDS & Hydrogen as per technical specifications given in point number 2 of Annexure-IX

7.4 1 number Server for VBU as per technical specifications given in point number 2 of Annexure-IX

8.0 Supply of Furniture Items 8.1 Supply of 4 number Godrej make tables (model

Companion C-2)

Supply of Services 9.1 Implementation of MVPC / IPPP for CDU-II 9.2 Implementation of MVPC / IPPP for FCCU-II

& PRU

9.3 Implementation of MVPC / IPPP for DHDS & Hydrogen

9.4 Implementation of MVPC / IPPP for VBU

9.0

9.5 Cost of Technology training for technology

Anneuxre-X

4

transfer at PRINCIPAL Licenser’s works 9.6 User training

9.6.1 Cost of User training for CDU-II 9.6.2 Cost of User training for FCCU-II & PRU 9.6.3 Cost of User training for DHDS & Hydrogen 9.6.4 Cost of User training for VBU

AMC charges (post warranty period) 10.1 Cost of Annual Maintenance Contract per year

(valid for 3 years) for Software (item 6.1 of this SOQ)

10.2 Cost of Annual Maintenance Contract per year (valid for 3 years) for Software (item 6.2 of this SOQ)

10.3 Cost of Annual Maintenance Contract per year (valid for 3 years) for Software (item 6.3 of this SOQ)

10.4 Cost of Annual Maintenance Contract per year (valid for 3 years) for Software (item 6.4 of this SOQ)

10.5 Cost of Annual Maintenance Contract per year (valid for 3 years) for Software (item 6.5 of this SOQ)

10.6 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 7.1 of this SOQ)

10.7 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 7.2 of this SOQ)

10.8 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 7.3 of this SOQ)

10.0

10.9 Cost of Annual Maintenance Contract per year (valid for 3 years) for hardware (item 7.4 of this SOQ)

Total Summary for both Phases

Summary Currency Figure In Words A Total for Phase-I B Total for Phase-II

C Total for Phase-I and Phase-II

Currency Figure

Annexure-XI

1

Project Manager (One for Phase - I)

Lead Engineer CDUI

Lead Engineer CDU-III

Lead Engineer FCCU-I(R)

Project Implementation Team of the Licenser

Control Engineer (CDU-I)

Control Engineer (CDU-III)

Control Engineer FCCU-I(R)

Phase - I

Lead Engineer CDU-II

Lead Engineer FCCU-II & PRU

Phase - II

Lead Engineer VBU

Control Engineer VBU

Control Engineer FCCU-II & PRU

Lead Engineer DHDS & H2

Control Engineer DHDS & H2

Control Engineer CDU-II

Project Manager (One for Phase - II)

Annexure-XI

2

Details and experience of APC Project Implementation team 2. Project Manager (Phase-I)

Name

of the Person

Qualification

Total Years of experience in field of APC

Units in which APC implemented

Refinery site and year in which APC implemented

Name and contact address (e-mail / fax no) of the person at site where APC implemented for our verification

1. 2. 3. 4.

Lead

5. 1 2 3 4

Alternate

5 Note : • This table has to be compulsorily filled. Resume etc shall not be attached as an

alternative to the above table. • The names shall not be repeated within a phase

Annexure-XI

3

3. Lead Engineer (Phase-I) Lead Engineer Name

of the Person

Qualification Total Years of experience in field of APC

Units in which APC implemented

Refinery site and year in which APC implemented

Name and contact address (e-mail / fax no) of the person at site where APC implemented for our verification

Lead

CDU-I

Alternate Lead

CDU-III

Alternate Lead

FCCU- R

Alternate

Note : • This table has to be compulsorily filled. Resume etc shall not be attached as an

alternative to the above table. • The names shall not be repeated within a phase

Annexure-XI

4

4. Control Engineer (Phase – I) Lead Engineer Name

of the Person

Qualification Total Years of experience in field of APC

Units in which APC implemented

Refinery site and year in which APC implemented

Name and contact address (e-mail / fax no) of the person at site where APC implemented for our verification

Lead

CDU-I

Alternate Lead

CDU-III

Alternate Lead

FCCU-I(R)

Alternate

Note : • This table has to be compulsorily filled. Resume etc shall not be attached as an

alternative to the above table. • The names shall not be repeated within a phase

Annexure-XI

5

Details and experience of APC Project Implementation team 5. Project Manager (Phase-II)

Name

of the Person

Qualification

Total Years of experience in field of APC

Units in which APC implemented

Refinery site and year in which APC implemented

Name and contact address (e-mail / fax no) of the person at site where APC implemented for our verification

1. 2. 3. 4.

Lead

5. 1 2 3 4

Alternate

5 Note : • This table has to be compulsorily filled. Resume etc shall not be attached as an

alternative to the above table. • The names shall not be repeated within a phase

Annexure-XI

6

6. Lead Engineer (Phase-II) Unit Name

of the Person

Qualification Total Years of experience in field of APC

Units in which APC implemented

Refinery site and year in which APC implemented

Name and contact address (e-mail / fax no) of the person at site where APC implemented for our verification

Lead

CDU-II

Alternate Lead

FCCU-II & PRU Alternate

Lead

VBU

Alternate Lead

DHDS & H2

Alternate

Note : • This table has to be compulsorily filled. Resume etc shall not be attached as an

alternative to the above table. • The names shall not be repeated within a phase

Annexure-XI

7

7. Control Engineer (Phase – II) Unit Name

of the Person

Qualification Total Years of experience in field of APC

Units in which APC implemented

Refinery site and year in which APC implemented

Name and contact address (e-mail / fax no) of the person at site where APC implemented for our verification

Lead

CDU-II

Alternate Lead

FCCU-II & PRU Alternate

Lead

VBU

Alternate Lead

DHDS & H2

Alternate

Note : • This table has to be compulsorily filled. Resume etc shall not be attached as an

alternative to the above table. • The names shall not be repeated within a phase

Annexure-XII

1

Check List of Documents to be submitted with the Offer

S.No Document Submitted (Yes/No/NA)

1 PreBid Qualification Documents 1.1 Proof of Original APC Technology Licenser 1.2 Document indicating the start and validity of

JVC/Collaboration/Partnership

1.3 Document indicating the status of subsidiary 1.4 Completion certificate for implementation of

offered APC technology in 1 number CDUs, 2 number FCCUs and 2 number DHDS / Hydrotreater units

1.5 Satisfactory performance certificate of post audit report for implementation of offered APC technology in 1 number CDUs, 2 number FCCUs and 2 number DHDS / Hydrotreater units

1.6 Proof of Turnover (annual report or such other acceptable document)

1.7 Bank Solvency Certificate 1.8 Undertaking giving details of technical support

base and qualified technical manpower in India

2 Unpriced Bid Documents 2.1 Details of Technology Training such as Course

contents, location of training and time schedule

2.2 Undertaking that DCS shutdown or Plant shutdown is not required

2.3 Indicative Bar chart for Phase-I and Phase-II 2.4 Acceptance of entire Job Scope by stamping and

signing each page of the Tender Document

2.5 No Deviation Certificate 2.6 Undertaking that offered version of APC software

is the latest

2.7 Details of tasks / activities in project execution and corresponding responsibility of Licenser, HPCL

Annexure-XII

2

and joint activities. 2.8 All the information required from HPCL 2.9 Details of the Project implementation team as per

the format given in Annexure-XI

2.10 Pointwise description as sought in the technical specification of the APC Softwares (given in Annexure-VIII). Details of the offered APC technology need to be attached separately.

2.11 Detailed technical specifications of the hardware proposed to be supplied

2.12 Summary of the systems proposed as per Annexure-XIV

3 Priced Bid Documents 3.1 Duly filled in Schedule of Quotation

Annexure-XIII

1

To, Hindustan Petroleum Corporation Limited Visakh Refinery Ref : Tender Document No: for design, install supply and commission Model based Multivariable Predictive Controller and Inferential Property Prediction Package at HPCL Visakh Refinery along with required hardware, interface software and training as per the specifications laid down in this Tender Document Dear Sir / Madam, Having examined and thoroughly understood the tender document, I/We hereby confirm that our offer has no deviation from the tender document. Deviation, if any, mentioned elsewhere in the offer may be treated as null and void. Yours faithfully. (Signature) Name Designation Full address of the Company Stamp of the Company

Annexure-XIV

1

Summary of Systems Proposed The following information has to be furnished for each software module separately in the format below e.g. MVPC, IPPP, Data Collector (RDBMS), Model Identifier, Controller Builder, and Interface Software etc. Software (Module Name) Licenser of Software Function Last version and release date Major enhancements planned Operating system(s) supported Whether available with GUI Main memory required Disk space required Total no. of installations where the module is working

Largest size of controller implemented by licenser in CDU (for MVPC)

Largest size of controller implemented by licenser in FCCU (for MVPC)

Largest size of controller implemented by licenser for any hydrotreater unit (for MVPC)

Whether embedded optimization is dynamic or steady state

Special Features

Annexure-III

SCOPING STUDY REPORT

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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SECTION II APC SCOPING STUDY REPORT FOR CDU/VDU-I (unit no.02)

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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CONTENTS Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for Crude and Vacuum Unit –I (02) of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

Crude and Vacuum distillation unit (CDU/VDU-I). The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for CDU/VDU-I is designed to meet the following specific objectives: • Maximise unit throughput subject to unit limitations. • Maintain steady rundown product quality. • Maximise LPG subject to weathering. • Maximise/Minimise HN subject to flash point • Maximise/Minimise Kero / ATF subject to flash / end point / freeze point (for ATF). • Maximise Diesel subject to 95% recovery @ 375 deg C • Maximise feedstock generation for the secondary units. • Minimize SR production • Minimise utility requirements (steam, cooling water). • Minimise energy consumption. • Provide smooth and quick crude switch capabilities. • Stabilise plant operation and maintain safe operation. To meet the above objectives Advanced control strategies are proposed as in section 2.2.

2.1.3 Process Unit Definition

The scope of the advanced control project includes definition of the advanced controls for Crude Distillation section, Naphtha Stabiliser section and Vacuum Distillation section. The unit equipments covered by this study includes the following:

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Crude Distillation Section

• Crude Preheat Train Circuits • Desalters (02-D-103) • Atmospheric Heaters (02-F-1 & 02-F-4) • Atmospheric Column (02-C-01), Side Strippers (02-C-3A/3B/3C), Overhead system

and pumparound system Naphtha Stabilser Section • Naphtha Stabiliser (02-C-07), Reboiler (02-E-14/14A) and associated system

Vacuum Distillation Section

• Vacuum heater (02-F-2) • Vacuum Column (02-C-6), Pumparounds, and Associated system

2.1.4 APC Design Issues Crude Throughput Maximisation Control

It is economically advantageous to maximise crude charge to the crude unit so that the quantity of valuable products can be increased. The following major constraints are expected while maximising the throughput. • Preheat exchanger train valves becoming wide open. • Wash water pumps • APS Furnaces arch and skin temperatures • Vacuum Furnace firing (in terms of fuel valve openings). • Product rundown pumps • Down stream units capacity / intermediate storage limitation. The crude charge rate is to be maximised subject to the constraints at the same time keeping the product qualities within the specifications. A single large controller structure enables effective handling of these multiple inter-linked control objectives. Product Quality Control

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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The product qualities shall be controlled to maximise yield of valuable products like LPG, Kero/ATF, Diesel and minimization of SR subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations are performed for these product qualities based on plant operating data and lab data. Major properties that need to be inferred are LPG weathering, Light Naphtha RVP, Kero/ATF Flash point, ATF FBP & freeze point, Diesel recovery @ 375 deg C, Diesel flash, VGO recovery and SR viscosity.

Optimal Preheat Control

For better utilisation of the heat available from column pumparounds and rundown streams in preheating section, an optimal split of crude flow in parallel preheat trains is necessary. The proposed multivariable controller addresses this control function. Heater pass outlet temperature Balancing Heater pass outlet temperature help to improve heat transfer efficiency in the heater. The controller adjusts individual pass flow controller set points to equalise the pass outlet temperatures by driving the outlet temperatures towards the weighted average temperature of all the passes. All balancing flow adjustments shall sum to zero so that the total flow through the heater is unchanged. The multivariable controller proposed addresses this control function. Heater Combustion Control Excess oxygen ingress to furnace leads to inefficient operation of furnace with respect to energy combustion. The purpose of the heater combustion control module is to maintain an optimal air / fuel flow ratio for efficient combustion. Optimal air flow is inferred based on measured heater feed flow, fuel oil supply & return flows, fuel gas flow, heater inlet / outlet temperatures, air flow damper opening. Heater combustion control manipulates the stack damper opening to regulate the excess oxygen in the flue gas. Oxygen analyser output (process value) on flue gas line is used for trimming the calculated optimal air flow.

Combustion control is recommended to be implemented in DCS level. Crude Switchover

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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When Crude Switch takes place in the crude unit from one type to another, the heater and the column operations get upset depending upon the severity of the switch. During the process of change over, it is common to encounter loss of level in some sections of the column, while off-loading occurs in the other. This transient period throws the products off spec with consequent loss of yield in more valuable products and the time taken to stabilise the operation is significantly high. It is proposed to address Crude switchover detection and stabilisation functionalities in the single large multivariable controller. A single large controller enables handling of crude switches smoothly and at the same time reduces the transient time and keeps the product qualities within the specifications (constraints).

2.2 Advanced Control Strategies

To meet the advanced control objectives as mentioned in section 2.1.2, the following advanced control strategies are proposed: 1. Crude and Vacuum column Multivariable controller

This controller is designed to account for all unit constraints, maximise throughput, optimal preheat control, reduce product quality variability, improve yields, minimise process upsets during crude switchover and transient time.

2. Naphtha Stabiliser Multivariable controller

This controller is designed to account for constraints, reduce product quality variability, improve yields and minimise process upsets. The Multivariable predictive controller implementation stabilises the process operations, provides tighter control to operating targets and helps reduce variability of the process which permits operation of the unit closer to the constraints as a result of which unit profitability is improved.

The functional design of the above mentioned control strategies are presented in the following sections.

2.2.1 Crude and Vacuum column Multivariable controller This controller will address Preheat circuit, Desalter, Atmospheric & Vacuum heater, Atmospheric & Vacuum Distillation system, Crude changeover. This controller will account

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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for all unit constraints, maximise throughput, furnace pass balancing, reduce product quality variability, improve yields and minimise process upsets. This application is designed to: • Maximise throughput while maintaining the product quality within the specified limits and

subject to unit operating constraints. • Furnace pass balancing for achieving equal coil outlet temperatures. • Maintain fractionation specifications with product draw temperatures and or inferential

measurements (of product qualities) at their targets and or within the limits supplied by the operators.

• Maximise the yield of valuable products – LPG subjected to weathering, ATF subject to flash point, freeze point & FBP and Diesel subject to 95% recovery @ 375 deg C distillation point.

• Handle Crude Switch smoothly. Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs), disturbance variables (DVs) and are presented below. Table 2.1

S. No.

Type Tag Name Tag Description

1. MV 02FR0302 1st preheat train split flow 2. MV 02FR0305 2nd preheat train split flow 3. MV 02FR0307 3rd preheat train split flow 4. MV 02TR1110 Atmospheric heater Coil Outlet Temperature of 2-

F-1 5. MV 02TR1414 Atmospheric heater Coil Outlet Temperature of 2-

F-4 6. MV 02FR1101 Atmospheric heater( 2-F-1) pass-1 flow 7. MV 02FR1102 Atmospheric heater (2-F-1) pass-2 flow 8. MV 02FR1103 Atmospheric heater (2-F-1) pass-3 flow 9. MV 02FR1104 Atmospheric heater (2-F-1) pass4 flow 10. MV 02FR1401 Atmospheric heater (2-F-4) pass-1 flow 11. MV 02FR1402 Atmospheric heater (2-F-4) pass-2 flow 12. MV 02FR0101 Crude column Top Reflux Flow 13. MV 02PR0102 Crude Column Top Pressure 14. MV 02FR0107 Crude column bottom Stripping Steam Flow 15. MV 02FR0401 HN Product Draw Flow

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16. MV 02FR0108 HN stripping steam Flow 17. MV 02FR0402 Kerosene Product Draw Flow 18. MV 02FR0109 Kerosene stripping steam Flow 20. MV 02FR0103 Kerosene Pump around Flow 21. MV 02FR0403 LD Product Draw Flow 22. MV 02FR0110 LD Stripping Steam Flow 23. MV 02FR0104 LD Pump around Flow 24. MV 02FR0404 HD Product Draw Flow 25. MV 02FR0111 HD Stripping Steam Flow 26. MV 02FR0104 HD Pump around Flow 27. MV 02LR0106 Atmospheric column bottom level 28. MV 02FR1201 Vacuum heater pass-1 flow 29. MV 02FR1202 Vacuum heater pass-2 flow 30. MV 02FR1203 Vacuum heater pass-3 flow 31. MV 02FR1204 Vacuum heater pass4 flow 32. MV 02TR1210 Vacuum Heater COT 33. MV 02FR0201 Vac. Diesel Pump around Flow 34. MV 02FR0202 LVGO CR Flow 35. MV 02FR0203 HVGO CR Flow 36. MV 02FR0205 LVGO IR Flow 37. MV 02FR0206 Wash oil Flow 38. MV 02FX0209 Vac. Slop Recycle 39. MV 02TR0211 Vac column bottom temperature 1. CV Calc tag 1st preheat split1 temp imbalance 2. CV Calc tag 1st preheat split2 temp imbalance 3. CV Calc tag 2nd preheat split1 temp imbalance 4. CV Calc tag 2nd preheat split2 temp imbalance 5. CV Calc tag 3rd preheat split1 temp imbalance 6. CV Calc tag 3rd preheat split2 temp imbalance

7. CV 02HIC0303.MV 1st preheat split1 flow valve opening 8. CV 02PR0302 Desalter Pressure 9. CV 02PR0302.OP Crude to 1st preheat train v/p 10. CV Calc tag 02-F-01 pass-1 temp imbalance 11. CV Calc tag 02-F-01 pass-2 temp imbalance 12. CV Calc tag 02-F-01 pass-3 temp imbalance 13. CV Calc tag 02-F-01 pass 4 temp imbalance 14. CV 02FR1110.OP 02-F-01 Fuel Gas v/p 15. CV 02FR1111.OP 02-F-01 Fuel Oil v/p

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16. CV Calc tag 02-F-01 Max. Skin temp. 17. CV Calc tag 02-F-04 pass-1 temp imbalance 18. CV Calc tag 02-F-04 pass-2 temp imbalance 19. CV Calc tag 02-F-04 pass-3 temp imbalance 20. CV Calc tag 02-F-04 pass 4 temp imbalance 21. CV 02FR1409.OP 02-F-04 Fuel Gas v/p 22. CV 02FR1410.OP 02-F-04 Fuel Oil v/p 23. CV Calc tag 02-F-04 Max. Skin temp. 24. CV 02TX0108 Crude column Flash zone temperature 25. CV Calc tag Crude column Delta P 26. CV 02PX0101 Crude column Flash zone pressure 27. CV Calc tag Overflash to feed ratio 28. CV 02FR0101.MV Crude Column Top reflux 29. CV Calc tag Dew point @ Atm. Column top 30. CV 02TX0103 HN Product Draw temp. 31. CV 02TX0104 Kero/ATF Product Draw temp. 32. CV 02TX0105 LD Product Draw temp. 33. CV 02TX0106 HD Product Draw temp. 34. CV 02LR0113.OP Crude Column Reflux drum level controller output 35. CV 02LR0105.OP HN stripper level controller output 36. CV 02LR0107.OP Kero stipper level controller output 37. CV 02LR0109.OP LD stripper level controller output 38. CV 02LR0111.OP HD stripper level controller output 39. CV 02LR0101.OP CDU column bottom level controller output 40. CV Calc tag 41. CV Calc tag HN Flash point 42. CV Calc tag Kero/ATF FBP 43. CV Calc tag Kero/ATF Flash Point 44. CV Calc tag ATF Freeze Point 45. CV Calc tag LD Flash point 46. CV Calc tag HD Flash point 47. CV Calc tag HD 95% distillation 48. CV Calc tag HD 85% distillation 49. CV Calc tag 02-F-02 pass-1 temp imbalance 50. CV Calc tag 02-F-02 pass 2 temp imbalance 51. CV Calc tag 02-F-02 pass-3 temp imbalance 52. CV Calc tag 02-F-02 pass-4 temp imbalance 53. CV 02FR1210.OP 02-F-02 Fuel Gas v/p 54. CV 02FR1213.OP 02-F-02 Fuel Oil v/p

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55. CV Calc tag 02-F-02 Max. Skin temp. 56. CV 2PX0202 Vacuum Column Flash Zone pressure 57. CV 02TX0210 Vacuum Column Flash Zone Temperature 58. CV 02TR0211.OP Vacuum column bottom temp controller v/p 59. CV 02TX0202 Vac. Diesel Product Draw temp 60. CV 02TX0204 LVGO Product Draw temp. 61. CV 02TX0206 HVGO Product Draw temp. 62. CV Calc tag VGO recovery @560 deg C 63. CV 02LR0201 VD Draw tray level controller output 64. CV 02LR0204 LVGO Draw tray level controller output 65. CV 02LR0207 HVGO Draw tray level controller output 66. CV 02LR0210 Slop draw tray level controller output 67. CV 02LR0213 Vacuum column bottom level controller output 68. CV Calc tag SR viscosity 69. CV Calc tag SR flash point 1. DV 02TX1101 Crude inlet temp. to 2-F-01 2. DV 02TX141 Crude inlet temp. to 2-F-04 3. DV Fuel gas header pressure

2.2.2 Naphtha Stabilizer Multivariable controller

The main purpose of this section is LPG recovery. The advanced control shall be specified for maximising LPG subject to weathering. Other product, light naphtha, quality shall also be controlled. Unit Operator can set the target for product qualities; The controller will manipulate the overhead reflux and Reboiler heating medium of naphtha stabiliser to meet these specifications at the same time maximising the yield of LPG selectively subject to the operator set product specifications.

The application is designed to: • Maintain LPG and light naphtha specifications at their target or within the limits supplied

by the operators. • Maximise the yield of LPG subject to weathering. Table 2.2 lists the manipulated variables (MVs), controlled variables (CVs) and disturbance variables (DVs) for the light end product quality controller.

Client: HPCL,Visakh Document No: APC-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-I Job No: 6435 APC Scoping Study Report

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Table 2.2

Type Tag Name Tag Description

1. MV 02PR0701 Naphtha Stabilizer Column Top Pressure 2. MV 02FR0703 Naphtha Stabilizer Reflux flow 3. MV 02FR0707 Naphtha Stabilizer reboiler heating medium (LD CR)

flow 1. CV Calc tag LPG weathering 2. CV 02LR0701.MV Naphtha Stabilizer bottom level controller output 3. CV Calc tag Naphtha Stabilizer Bottoms PCT 4. CV Calc tag SRN RVP 1. DV 02FR0701 Naphtha Stabilizer feed flow 2. DV 02TX0701 Naphtha Stabilizer feed temp

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2.3 Additional Field Instruments

Based on the control structure proposed in section 2.2, few additional field instruments ( pressure transmitters ) are recommended as below :

TABLE 2.3 : LIST OF ADDITIONAL FIELD INSTRUMENTS

SL. NO.

EQUIPMENT NO. LOCATION TAG NO.

1. Fuel gas header pressure indication 2.4 Observations on the existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC

1. HVGO preheat exchangers E-37 &E-46 leakages are observed on high thru’put and

bypasses are open 2. Wash water pumps of Desalter are limiting. 3. HN rundown flow instrument range limitation above 34m3/hr flow 4. High temperature drop between Vacuum furnace coil passes outlet temperature and

combined heater outlet temperature (~20 deg C) and Combined heater outlet temperature to Vacuum flash zone temperature (~20 deg C). This is observed right from CDU-I Integration project commissioning. This is resulting in less VGO recovery. Substantial difference between crude flow and combined crude heater pass flows measurement. Similarly for Crude column bottom RCO flow measurement and combined Vacuum furnace pass flows.

5. Slop cut level indication is unreliable.

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3.0 BENEFIT ESTIMATION 3.1 Basis

The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1

Product Property Targets LPG Weathering, deg C 2

RVP, psia 7 SRN H2S Absent

HN Flash, deg C 38 Kero/ATF EP , deg C 250 (ATF),

290 (SKO) LD Flash, deg C 66

Flash, deg C 100 HD 95% rec, deg C 375

VD VGO End Point, deg C 560

Flash, deg C 180 SR Viscosity

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3.3 Product destination Chart

Table 3.2

DESTINATION →

PRODUCT ↓

LPG NAPHTHA MS KERO ATF DIESEL

SOUR DIESEL/ SWEET DIESEL/DHDS

FO FCCU FEED

LPG 2FR0705

SRN 2FX0706 2FX0706

Heavy Naphtha 2FR0401 2FR0401

Kerosene / ATF 2FR0402 2FR0402 *

Light Diesel 2FR0403 2FR0403 2FR0403 2FR0403

Heavy Diesel 2FR0404

Vaccuum Diesel 2FX0406 2FR0406

VGO 2FR0314(HOT) /2FX0407(COLD)

SLOP 2FX0208

SR 2FX0411(BBU)+2FX2102(VBU)+2FX0408(RD)

* indicates provision for routing BOLD indicates preferred destination

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3.4 Economic Data

Table 3.3

Basis: April’03 to February ’04 1st fortnight prices

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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3.5 Estimated Benefits

The estimation of benefits resulting from implementing APC for CDU/VDU-I is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Jan 11th –Feb 11th , 2004 (LS crude run ) provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given below.

S.No. Period were data not considered

Reason

1 11/1 6:00 to 13/1 2:00hrs Because of feed flow fluctuation

2 19/1 21:00 to 22/1 0:00hrs -do- 3 28/1 14:00 to 28/1 21:00 hrs -do- 4 31/1 7:00 to 11/2 -do-

5 15/1 12:00 and 14:00,22/1 12 &13:00 hrs

Sudden decrease in COT

6 17/1 19hrs to 18/1 2hrs LD flow indication off - considered as 30 m3/hr

7 13/1 3hrs to 9hrs SR flow error

Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads : a) Throughput Maximisation

The benefit is estimated based on reduction of standard deviation in throughput during the benefit analysis period. The maximum throughput achieved during the benefit analysis period (322.6 m3/hr) has been taken as the specification limit for maximum throughput in benefit calculation.

b) LPG Yield Maximisation

The benefit is estimated based on shift in LPG yield due to reduction in standard deviation in LPG yield during the benefit analysis period, thus resulting in increase in LPG yield.

c) ATF Maximisation

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ATF lab data was available on 12/1/2004 only and the tag data on that day was not considered due to fluctuation in feed flow. Hence no benefits were estimated for ATF maximisation.

d) Diesel Yield Maximisation

The benefit is estimated based on reduction of standard deviation in HD 95 % point during the benefit analysis period, thus resulting in increase in Diesel yield by reducing Diesel slippage to VGO. In addition to the data not considered as mentioned above, the tag and lab data where HD 95% is greater than 375 oC is also not considered for benefit estimation. The maximum HD 95% point limit is considered as 375 oC as per specification in benefit calculation.

e) VGO Maximisation

The average operating yield of VGO during the benefit analysis period is around 31%, which is much higher as compared to the desired VGO yield (22.3 wt%). Hence no benefit due to VGO yield maximisation is projected.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.3.

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CDU-I: Yields (Wt%)

0

2

4

6

8

10

12

14

16

1/12/20040:00

1/14/20040:00

1/16/20040:00

1/18/20040:00

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1/22/20040:00

1/24/20040:00

1/26/20040:00

1/28/20040:00

1/30/20040:00

2/1/20040:00

2/3/20040:00

Date-Time

LPGSRNHNKero

CDU-I

280

290

300

310

320

330

340

350

360

370

1/12/20040:00

1/14/20040:00

1/16/20040:00

1/18/20040:00

1/20/20040:00

1/22/20040:00

1/24/20040:00

1/26/20040:00

1/28/20040:00

1/30/20040:00

2/1/20040:00

2/3/20040:00

Date-Time

Feed, M3/hr

COT, DegC

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CDU-I: Yields (Wt%)

0

5

10

15

20

25

30

35

40

45

50

1/12/20040:00

1/14/20040:00

1/16/20040:00

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1/22/20040:00

1/24/20040:00

1/26/20040:00

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1/30/20040:00

2/1/20040:00

2/3/20040:00

Date-Time

LDHDVDVGOSR

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CDU-I: SRN RVP, PSIA

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

1/13/20045:00:00

PM

1/15/20045:00:00

AM

1/16/20045:00:00

PM

1/18/20045:00:00

AM

1/22/20045:00:00

AM

1/23/20045:00:00

PM

1/25/20049:00:00

AM

1/26/20045:00:00

PM

1/28/20045:00:00

AM

1/30/20045:00:00

AM

Date-TIme

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CDU-I: HD 95%, Deg C

345

350

355

360

365

370

375

1/14/20045:00:00

AM

1/16/20045:00:00

AM

1/22/20049:00:00

AM

1/22/20045:00:00

PM

1/23/20045:00:00

PM

1/27/20049:00:00

PM

1/30/20045:00:00

AM

Date-Time

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SECTION III APC SCOPING STUDY REPORT FOR CDU/VDU-II (unit no.10/11/12)

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CONTENTS Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-II Job No: 6435 APC Scoping Study Report

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for Crude and Vacuum Unit –II (10/11) of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-II Job No: 6435 APC Scoping Study Report

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

Crude and Vacuum distillation unit (CDU/VDU-II). The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for CDU/VDU-II is designed to meet the following specific objectives: • Maximise unit throughput subject to unit limitations. • Maintain steady rundown product quality. • Maximise LPG subject to weathering. • Maximise/Minimise HN subject to flash point • Maximise/Minimise Kero / ATF subject to flash / end point / freeze point (for ATF). • Maximise Diesel subject to 95% recovery @ 375 deg C • Maximise feedstock generation for the secondary units. • Minimize HD slip in RCO • Minimize SR production • Minimise utility requirements (steam, cooling water). • Minimise energy consumption. • Provide smooth and quick crude switch capabilities. • Stabilise plant operation and maintain safe operation. To meet the above objectives Advanced control strategies are proposed as in section 2.2.

2.1.3 Process Unit Definition

The scope of the advanced control project includes definition of the advanced controls for Crude Distillation section, Naphtha Stabiliser section and Vacuum Distillation section. The unit equipments covered by this study includes the following:

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Crude Distillation Section

• Crude Preheat Train Circuits • Desalter (11-V-02) • Atmospheric Heater (11-F-01) • Atmospheric Column (11-C-01), Side Strippers (11-C-02, 11-C-03, 11-C-04) • Overhead system and pumparound system Naphtha Stabilser Section • Naphtha Stabiliser (11-C-05) and Reboiler (11-E-25) and Associated system

Vacuum Distillation Section

• Vacuum heater (12-F-01) • Vacuum Column (12-C-01), Pump arounds and Associated system

2.1.4 APC Design Issues Crude Throughput Maximisation Control

It is economically advantageous to maximise crude charge to the crude unit so that the quantity of valuable products can be increased. The following major constraints are expected while maximising the throughput. • Preheat exchanger train valves becoming wide open. • Wash water pumps • APS Furnaces arch and skin temperatures • Vacuum Furnace firing (in terms of fuel valve openings). • Product rundown pumps • Down stream units capacity / intermediate storage limitation. The crude charge rate is to be maximised subject to the constraints at the same time keeping the product qualities within the specifications. A single large controller structure enables effective handling of these multiple inter-linked control objectives. Product Quality Control

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: CDU/VDU-II Job No: 6435 APC Scoping Study Report

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The product qualities shall be controlled to maximise yield of valuable products like LPG, Kero /ATF, Diesel and minimization of SR subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations are performed for these product qualities based on plant operating data and lab data. Major properties that need to be inferred are LPG weathering, Light Naphtha RVP, Kero/ATF Flash point, ATF FBP & freeze point, Diesel recovery @ 375 deg C, Diesel flash, VGO recovery and SR viscosity.

Optimal Preheat Control

For better utilisation of the heat available from column pumparounds and rundown streams in preheating section, an optimal split of crude flow in parallel preheat trains is necessary. The proposed multivariable controller addresses this control function. Heater pass outlet temperature Balancing Heater pass outlet temperature help to improve heat transfer efficiency in the heater. The controller adjusts individual pass flow controller set points to equalise the pass outlet temperatures by driving the outlet temperatures towards the weighted average temperature of all the passes. All balancing flow adjustments shall sum to zero so that the total flow through the heater is unchanged. The multivariable controller proposed addresses this control function. Heater Combustion Control Excess oxygen ingress to furnace leads to inefficient operation of furnace with respect to energy combustion. The purpose of the heater combustion control module is to maintain an optimal air / fuel flow ratio for efficient combustion. Optimal air flow is inferred based on measured heater feed flow, fuel oil, supply & return flows fuel gas flow heater inlet / outlet temperatures, air flow damper opening. Heater combustion control manipulates the stack damper opening to regulate the excess oxygen in the flue gas. Oxygen analyser output (process value) on flue gas line is used for trimming the calculated optimal air flow.

Combustion control is recommended to be implemented in DCS level. Crude Switchover

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When Crude Switch takes place in the crude unit from one type to another, the heater and the column operations get upset depending upon the severity of the switch. During the process of change over, it is common to encounter loss of level in some sections of the column, while off-loading occurs in the other. This transient period throws the products off spec with consequent loss of yield in more valuable products and the time taken to stabilise the operation is significantly high. It is proposed to address Crude switchover detection and stabilisation functionalities in the single large multivariable controller. A single large controller enables handling of crude switches smoothly and at the same time reduces the transient time and keeps the product qualities within the specifications (constraints).

2.2 Advanced Control Strategies

To meet the advanced control objectives as mentioned in section 2.1.2, the following advanced control strategies are proposed: 1. Crude and Vacuum column Multivariable controller

This controller is designed to account for all unit constraints, maximise throughput, optimal preheat control, reduce product quality variability, improve yields, minimise process upsets during crude switchover and transient time.

2. Naphtha Stabiliser Multivariable controller

This controller is designed to account for constraints, reduce product quality variability, improve yields and minimise process upsets. The Multivariable predictive controller implementation stabilises the process operations, provides tighter control to operating targets and helps reduce variability of the process, which permits operation of the unit closer to the constraints as a result of which unit profitability is improved.

The functional design of the above mentioned control strategies is presented in the following sections.

2.2.1 Crude and Vacuum column Multivariable controller This controller will address Preheat circuit, Desalters, Atmospheric & Vacuum heater, Atmospheric & Vacuum Distillation system, Crude changeover. This controller will account

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for all unit constraints, maximise throughput, furnace pass balancing, reduce product quality variability, improve yields and minimise process upsets. This application is designed to: • Maximise throughput while maintaining the product quality within the specified limits and

subject to unit operating constraints. • Furnace pass balancing for achieving equal coil outlet temperatures. • Maintain fractionation specifications with product draw temperatures and or inferential

measurements (of product qualities) at their targets and or within the limits supplied by the operators.

• Maximise the yield of valuable products – LPG subjected to weathering, ATF subject to flash point, freeze point & FBP and Diesel subject to 95% recovery @ 375 deg C distillation point.

• Handle Crude Switch smoothly.

Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs), disturbance variables (DVs) and are presented below. Table 2.1

S. No.

Type Tag Name Tag Description

1. MV FR1101 1st preheat train split flow 2. MV TR1301 11-F-1Coil Outlet Temperature 3. MV FR1301 Atmospheric heater (11-F-1) pass-1 flow 4. MV FR1302 Atmospheric heater (11-F-1) pass-2 flow MV FR1303 Atmospheric heater (11-F-1) pass-3 flow 5. MV FR1304 Atmospheric heater (11-F-1) pass4 flow 6. MV PR1902 Preflash drum (11-V-10) pressure 7. MV FR1403 Crude column (11-C-01) Top Reflux Flow 8. MV PR1409 Crude Column Reflux drum Pressure 9. MV FR1401 11-C-01 bottom Stripping Steam Flow 10. MV FR1406 TPA flow 11. MV FR1107 HN Product Flow to SRN 12. MV FR1103 HN Product Flow to diesel 13. MV FI1409 HN stripping steam Flow 14. MV FR1203 Kerosene Product to Kero R/D 15. MV FR1204 Kerosene Product to Diesel 16. MV F1203 Kerosene Product to LDO

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17. MV FR1408 Kero Stripper stripping steam Flow 18. MV FR1405 Kerosene CR Flow 19. MV FR1202 Diesel Product Draw Flow to diesel R/D 20. MV FR3501 Diesel Product Draw Flow to DHDS 21. MV FR1407 Diesel Stripper Stripping Steam Flow 22. MV FR1404 Diesel CR Flow 23. MV TR2133 Vacuum Heater (12-F-01) COT 24. MV FR2101 Vacuum heater pass-1 flow 25. MV FR2102 Vacuum heater pass-2 flow 26. MV FR2103 Vacuum heater pass-3 flow 27. MV FR2104 Vacuum heater pass4 flow 28. MV FR2205 LVGO CR Flow 29. MV FR2203 HVGO CR Flow 30. MV FR2201 LVGO IR Flow 31. MV FR2202 HVGO IR Flow 32. MV FR2402 HVGO to Hot feed 33. MV FR2109 Vac. Slop Recycle 34. MV FR2204 VR quench flow 35. MV PR2206 Vac column top pressure 1. CV Calc tag 1st preheat split1 temp imbalance 2. CV FR1101.MV 1st preheat split1 v/p 3. CV PI105.MV Crude to 1st preheat train v/p 4. CV Calc tag 11-F-01 pass-1 temp imbalance 5. CV Calc tag 11-F-01 pass-2 temp imbalance 6. CV Calc tag 11-F-01 pass-3 temp imbalance 7. CV Calc tag 11-F-01 pass 4 temp imbalance 8. CV FR1308.MV 11-F-01 Fuel Gas v/p 9. CV PC1301.MV 11-F-01 Fuel Oil v/p 10. CV Calc tag 11-F-01 Max. Skin temp. 11. CV Calc tag Crude column Delta P 12. CV P1410R Crude column Flash zone pressure 13. CV Calc tag Over flash to feed ratio 14. CV TI1401R Crude column flash zone temperature 15. CV LI1405.MV Crude Column Reflux drum level controller

output 16. CV TR1403 Crude Column Top temperature 17. CV Calc tag Dew point @ Atm. Column top 18. CV T1404R HN Product Draw temp.

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19. CV T1403R Kero/ATF Product Draw temp. 20. CV T1402R Diesel Product Draw temp. 21. CV LI1404.MV HN stripper level controller output 22. CV LI1403.MV Kero stripper level controller output 23. CV LI1402.MV Diesel stripper level controller output 24. CV LR1401.MV Crude column bottom level controller output 25. CV Calc tag HN Flash point 26. CV Calc tag Kero Flash point 27. CV Calc tag Kero/ATF FBP 28. CV Calc tag ATF Freeze Point 29. CV Calc tag Diesel flash point 30. CV Calc tag Diesel 95% recovery 31. CV Calc tag Diesel 85% recovery 32. CV Calc tag 12-F-01 pass-1 temp imbalance 33. CV Calc tag 12-F-01 pass 2 temp imbalance 34. CV Calc tag 12-F-01 pass-3 temp imbalance 35. CV Calc tag 12-F-01 pass-4 temp imbalance 36. CV F2105R.MV 12-F-01 Fuel Gas v/p 37. CV PI2101.MV 12-F-01 Fuel Oil v/p 38. CV Calc tag 12-F-01 Max. Skin temp. 39. CV P2202R Vacuum Column Flash Zone pressure 40. CV TR2201 Vacuum column bottom temp 41. CV T2203R Vacuum Column Flash Zone Temperature 42. CV T2204 Vacuum slop draw temperature 43. CV T2205 HVGO Product Draw temp. 44. CV T2206 LVGO Product Draw temp. 45. CV T2207 Vacuum Diesel Draw temp. 46. CV Calc tag VGO EP 47. CV Calc tag SR Viscosity 48. CV Calc tag SR Flash point 1. DV TX1301 Crude inlet temp to Atmospheric heater 2. DV Fuel gas header pressure

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2.2.2 Naphtha Stabilizer Multivariable controller

The main purpose of this section is LPG recovery. The advanced control shall be specified for maximising LPG subject to weathering. Other product, light naphtha, quality shall also be controlled. Unit Operator can set the target for product qualities; The controller will manipulate the overhead reflux and Reboiler heating medium of naphtha stabiliser to meet these specifications at the same time maximising the yield of LPG selectively subject to the operator set product specifications.

The application is designed to: • Maintain LPG and light naphtha specifications at the target value or within the limits

supplied by the operators.

• Maximise the yield of LPG subject to weathering. Table 2.2 lists the manipulated variables (MVs), controlled variables (CVs) and disturbance variables (DVs) for the light end product quality controller. Table 2.2

Type Tag Name Tag Description

1. MV PR1501 Naphtha Stabilizer Column Top Pressure 2. MV FR1501 Naphtha Stabilizer flow 3. MV TR1501

/FR1504 Naphtha Stabilizer Tray #3 temp/ Stabilizer reboiler heating medium (Kero CR) flow

1. CV Calc tag LPG weathering 2. CV Calc tag Naphtha Stabilizer Top PCT 3. CV LI1501.MV Naphtha Stabilizer bottom level controller output 4. CV Calc tag Naphtha Stabilizer Bottoms PCT 7. CV Calc tag Light Naphtha RVP 1. DV FR1503 Naphtha Stabilizer feed flow 2. DV T1508 Naphtha Stabilizer feed temp

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2.3 Additional Field Instruments

Based on the control structure proposed in section 2.3.0, few additional field instruments are recommended as below :

TABLE 2.4 : LIST OF ADDITIONAL FIELD INSTRUMENTS

SL. NO.

EQUIPMENT NO. LOCATION TAG NO.

1.

11-F-01/12-F-01 Fuel gas header pressure indication

2.4 Observations on the existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC

1. Atmospheric heater (11-F-01) – Fluctuation in pass B flow. 2. At higher thru’puts limitation in the following:

a. Preheat b. 11-F-01 COT c. 11-F-01 Arch temperature

3. Atm. Column TPA is not available.

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3.0 BENEFIT ESTIMATION 3.1 Basis

The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1 Product Property Targets LPG Weathering, deg C 2

RVP, psia 7 SRN H2S Absent

HN Flash, deg C 38 Kero/ATF EP , deg C 250 (ATF),

290 (SKO) Flash, deg C 100 LD + HD 95% rec, deg C 375

VD VGO End Point, deg C 560

Flash, deg C 180 SR Viscosity

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3.3 Product destination Chart

TABLE 3.2 : PRODUCT DESTINATION CHART FOR CDU / VDU-II

DESTINATION →

PRODUCT ↓

LPG NAPHTHA MS KERO/ ATF

LDO DIESEL SOUR DIESEL/ DHDS

FCCU FEED

FO/SR

LPG FR1502

SRN F1201R FR0104

Heavy Naphtha FR1107 FR1103

Kerosene FR1203 F1205Q FR1204 F1206Q

Heavy Diesel F1207Q FR1202/FR3501

LVGO FR2404 F2403R

HVGO

FR2402 (HOT)/F2402R(COLD)

SLOP F2304R

SR

FR2301(BBU)+F2407Q(LDO)+F2401R(RD)+F2406R(HFO)+FR2405(RFO)

BOLD indicates preferred destination

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3.4 Economic Data

TABLE 3.3 : FEED / PRODUCT PRICES

Basis: April’03 to February ’04 1st fortnight prices

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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3.5 Estimated Benefits

The estimation of benefits resulting from implementing APC for CDU/VDU-II is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Jan 1-31st, 2004 provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given below.

S.No. Period were data not considered

Reason

1 6/1 12:00 to 13/1 6:00hrs Because of feed flow fluctuation

2 17/1 600 to 20/1 24:00hrs -do- 3 27/01 14:00 to end -do-

4 21/1 500hrw to 22/1 2300hrs DSL recovery out of limits

5 14/1 1700hrs to 15/1 1700 hrs -do- 6 6/1 500 hrs -do-

Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads : a) Throughput Maximisation

The benefit is estimated based on reduction of standard deviation in throughput during the benefit analysis period. The maximum throughput achieved during the benefit analysis period (483 m3/hr) has been taken as the specification limit for maximum throughput in benefit calculation.

b) LPG Yield Maximisation

The benefit is estimated based on shift in LPG yield due to reduction in standard deviation in LPG yield during the benefit analysis period, thus resulting in increase in LPG yield.

c) ATF Maximisation

There is no ATF operation during the period where data has been provided, Hence no benefits were estimated for ATF maximisation.

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d) Diesel Yield Maximisation

The benefit is estimated based on reduction of standard deviation in HD 95 % point during the benefit analysis period, thus resulting in increase in Diesel yield by reducing Diesel slippage to VGO. In addition to the data not considered as mentioned above, the tag and lab data where HD 95% is greater than 375 oC is also not considered for benefit estimation. The maximum HD 95% point limit is considered as 375 oC as per specification in benefit calculation.

e) VGO Maximisation

In addition to the data not considered as mentioned above, the VGO yield data, which is unstable, has been filtered out. The benefit is estimated based on shift in VGO yield due to reduction of standard deviation in VGO yield during the benefit analysis period, thus resulting in increase in VGO yield. Moreover, only 11% reduction in standard deviation of VGO yield considered in benefit calculation because of higher difference between Maximum and Average yields.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.3.

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CDU-II

300

320

340

360

380

400

420

440

460

480

500

12/30/20030:00

1/4/2004 0:00 1/9/2004 0:00 1/14/2004 0:00 1/19/2004 0:00 1/24/2004 0:00 1/29/2004 0:00

Date-Time

Feed, M3/hr

COT, DegC

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CDU-II: Yields (Wt%)

0

5

10

15

20

25

12/30/20030:00

1/4/2004 0:00 1/9/2004 0:00 1/14/2004 0:00 1/19/2004 0:00 1/24/2004 0:00 1/29/2004 0:00

Date-Time

LPGSRNHNKero

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CDU-II: Yields (Wt%)

0

5

10

15

20

25

12/30/20030:00

1/4/2004 0:00 1/9/2004 0:00 1/14/2004 0:00 1/19/2004 0:00 1/24/2004 0:00 1/29/2004 0:00

Date-Time

LPGSRNHNKero

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CDU-II: Yields (Wt%)

0

10

20

30

40

50

60

12/30/2003 0:00 1/4/2004 0:00 1/9/2004 0:00 1/14/2004 0:00 1/19/2004 0:00 1/24/2004 0:00 1/29/2004 0:00

Date-Time

DieselSeries2Series3Series4VGOSeries6Series7SR

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CDU-II: SRN RVP, PSIA

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

1/1/20045:00:00

PM

1/3/20045:00:00

AM

1/4/20045:00:00

PM

1/6/20045:00:00

AM

1/14/20045:00:00

PM

1/16/20045:00:00

AM

1/17/20045:00:00

AM

1/22/20045:00:00

AM

1/23/20045:00:00

AM

1/24/20045:00:00

PM

1/26/20045:00:00

AM

Date-Time

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CDU-II: HD95%, Deg C

362

364

366

368

370

372

374

376

1/2/20045:00:00

PM

1/4/20045:00:00

AM

1/5/20046:45:00

PM

1/14/20049:00:00

PM

1/16/20045:00:00

AM

1/23/20045:00:00

AM

1/24/200411:00:00

AM

1/25/20045:00:00

PM

1/26/20045:00:00

PM

Date-Time

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SECTION IV

APC SCOPING STUDY REPORT FOR CDU/VDU-III (unit no.42)

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CONTENTS

Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for Crude and Vacuum Unit –III (42) of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

Crude and Vacuum distillation unit (CDU/VDU-III). The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for CDU/VDU-III is designed to meet the following specific objectives: • Maximise unit throughput subject to unit limitations. • Maintain steady rundown product quality. • Maximise LPG subject to weathering. • Minimise SR Naphtha subject to RVP • Maximise/Minimise Kero / ATF subject to flash / end point / freeze point (for ATF). • Maximise Heavy Diesel subject to 95% recovery @ 375 deg C and flash point • Maximise Vacuum diesel cut • Maximise VGO subject to end point • Minimize SR production subject to viscosity/ PEN / flash • Minimise utility requirements (steam, cooling water). • Minimise energy consumption. • Provide smooth and quick crude switch capabilities. • Stabilise plant operation and maintain safe operation. To meet the above objectives Advanced control strategies are proposed as in section 2.2.

2.1.3 Process Unit Definition

The scope of the advanced control project includes definition of the advanced controls for Crude Distillation section, Naphtha Stabiliser section and Vacuum Distillation section. The unit equipments covered by this study includes the following:

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Crude Distillation Section

• Crude Preheat Train Circuits • Desalter (42-V-10) • Atmospheric Heaters (42-F-01) • Atmospheric Column (42-C-01), Side Strippers (42-C-02/03/04/05) Overhead

system and pumparound system Naphtha Stabilser Section • Naphtha Stabiliser (42-C-07) and Reboiler (42-E-34) and Associated system

Vacuum Distillation Section

• Vacuum heater (42-F-02) • Vacuum Column (42-C-06), Pumparounds and Associated system

2.1.4 APC Design Issues Crude Throughput Maximisation Control

It is economically advantageous to maximise crude charge to the crude unit so that the quantity of valuable products can be increased. The following major constraints are expected while maximising the throughput. • Preheat exchanger train valves becoming wide open. • APS Furnaces arch and skin temperatures • Vacuum Furnace duty • Stabiliser column capacity • Flaring from Atmospheric column overhead • Down stream LPG treatment unit capacity • Product rundown pumps • HVGO pump seal design temperature The crude charge rate is to be maximised subject to the constraints at the same time keeping the product qualities within the specifications. A single large controller structure enables effective handling of these multiple inter-linked control objectives.

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Product Quality Control The product qualities shall be controlled to maximise yield of valuable products like LPG, Kero /ATF, Diesel and minimization of SR subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations are performed for these product qualities based on plant operating data and lab data. Major properties that need to be inferred are LPG weathering, Light Naphtha RVP, Kero/ATF Flash point, ATF FBP & freeze point, Diesel recovery @ 375 deg C, Diesel flash, VGO recovery and SR viscosity.

Optimal Preheat Control

For better utilisation of the heat available from column pumparounds and rundown streams in preheating section, an optimal split of crude flow in parallel preheat trains is necessary. The proposed multivariable controller addresses this control function. Heater pass outlet temperature Balancing Heater pass outlet temperature help to improve heat transfer efficiency in the heater. The controller adjusts individual pass flow controller set points to equalise the pass outlet temperatures by driving the outlet temperatures towards the weighted average temperature of all the passes. All balancing flow adjustments shall sum to zero so that the total flow through the heater is unchanged. The multivariable controller proposed addresses this control function. Heater Combustion Control Excess oxygen ingress to furnace leads to inefficient operation of furnace with respect to energy combustion. The purpose of the heater combustion control module is to maintain an optimal air / fuel flow ratio for efficient combustion. Optimal air flow is inferred based on measured heater feed flow, fuel oil, supply & return flows fuel gas flow heater inlet / outlet temperatures, air flow damper opening. Heater combustion control manipulates the stack damper opening to regulate the excess oxygen in the flue gas. Oxygen analyser output (process value) on flue gas line is used for trimming the calculated optimal air flow.

Combustion control is recommended to be implemented in DCS level.

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Crude Switchover

When Crude Switch takes place in the crude unit from one type to another, the heater and the column operations get upset depending upon the severity of the switch. During the process of change over, it is common to encounter loss of level in some sections of the column, while off-loading occurs in the other. This transient period throws the products off spec with consequent loss of yield in more valuable products and the time taken to stabilise the operation is significantly high. It is proposed to address Crude switchover detection and stabilisation functionalities in the single large multivariable controller. A single large controller enables handling of crude switches smoothly and at the same time reduces the transient time and keeps the product qualities within the specifications (constraints).

2.2 Advanced Control Strategies

To meet the advanced control objectives as mentioned in section 2.1.2, the following advanced control strategies are proposed: 1. Crude and Vacuum column Multivariable controller

This controller is designed to account for all unit constraints, maximise throughput, optimal preheat control, reduce product quality variability, improve yields, minimise process upsets during crude switchover and transient time.

2. Naphtha Stabiliser Multivariable controller

This controller is designed to account for constraints, reduce product quality variability, improve yields and minimise process upsets. The Multivariable predictive controller implementation stabilises the process operations, provides tighter control to operating targets and helps reduce variability of the process which permits operation of the unit closer to the constraints as a result of which unit profitability is improved.

The functional design of the above mentioned control strategies are presented in the following sections.

2.2.1 Crude and Vacuum column Multivariable controller

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This controller will address Preheat circuit, Desalters, Atmospheric & Vacuum heater, Atmospheric & Vacuum Distillation system, Crude changeover. This controller will account for all unit constraints, maximise throughput, furnace pass balancing, reduce product quality variability, improve yields and minimise process upsets. This application is designed to: • Maximise throughput while maintaining the product quality within the specified limits and

subject to unit operating constraints. • Furnace pass balancing for achieving equal coil outlet temperatures. • Maintain fractionation specifications with product draw temperatures and or inferential

measurements (of product qualities) at their targets and or within the limits supplied by the operators.

• Maximise the yield of valuable products – LPG subjected to weathering, ATF subject to flash point, freeze point & FBP and Diesel subject to 90% distillation point and VGO subject to EP.

• Handle Crude Switch smoothly

Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs), disturbance variables (DVs) and are presented below. Table 2.1

S. No.

Type Tag Name Tag Description

1. MV 42FRRC1201 1st preheat train split ratio 2. MV 42TC1409 42-F-01Coil Outlet Temperature 3. MV 42FC1401 Atmospheric heater (42-F-01) pass-1 flow 4. MV 42FC1402 Atmospheric heater (42-F-01) pass-2 flow MV 42FC1403 Atmospheric heater(42-F-01) pass-3 flow 5. MV 42FC1404 Atmospheric heater (42-F-01) pass4 flow 6. MV 42FC1505 Crude column Top Reflux Flow 7. MV 42PC1504 Crude Column Top Pressure 8. MV 42FRRC1506 Crude column bottom Stripping Steam Flow

ratio 9. MV 42FC1904 HN Product Draw Flow 10. MV 42FRRC1510 HN stripping steam Flow Ratio 11. MV 42FC1901 Kerosene Product Draw Flow 12. MV 42FRRC1507 Kerosene stripping steam Flow Ratio

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13. MV 42FC1501 Kerosene Pumparound Flow 14. MV 42FC1910 LD Product Draw Flow to Diesel 15. MV 42FC3202 LD Product Draw Flow to DHDS 16. MV 42FRRC1508 LD Stripping Steam Flow Ratio 17. MV 421502 LD Pumparound Flow 18. MV 42FC1301 HD Product Draw Flow 19. MV 42FRRC1509 HD Stripping Steam Flow Ratio 20. MV 42FC1503 HD Pump around Flow 21. MV 42TC2009 Vacuum Heater COT 22. MV 42FC2002 Vacuum heater pass-1 flow 23. MV 42FC2003 Vacuum heater pass-2 flow 24. MV 42FC2004 Vacuum heater pass-3 flow 25. MV 42FC2005 Vacuum heater pass4 flow 26. MV 42FC2109 Stripping Steam to Vacuum Column 27. MV 42FC2101 Vac. Diesel CR Flow 28. MV 42FC2103 LVGO CR Flow 29. MV 42FC2106 HVGO CR Flow 30. MV 42FC2110 LVGO IR Flow 31. MV 42FC2105 HVGO IR Flow 32. MV 42FC2020 Vac. Slop Recycle 33. MV 42FC2108 VR quench flow 1. CV Calc tag 1st preheat split1 temp imbalance 2. CV 42FRRC1201.MV 1st preheat split1 v/p 3. CV 42PC1104 Desalter Pressure 4. CV 42PC1104.MV Crude to 1st preheat train v/p 5. CV Calc tag 42-F-01 pass-1 temp imbalance 6. CV Calc tag 42-F-01 pass-2 temp imbalance 7. CV Calc tag 42-F-01 pass-3 temp imbalance 8. CV Calc tag 42-F-01 pass-4 temp imbalance 9. CV 42PC1474.MV 42-F-01 Fuel Gas v/p 10. CV 42PC1415.MV 42-F-01 Fuel Oil v/p 11. CV Calc tag 42-F-01 Max. Skin temp. 12. CV 42TI1502 Crude column Flash zone temperature 13. CV Calc tag Crude column Delta P 14. CV 42PI1503 Crude column Flash zone pressure 15. CV Calc tag Overflash to feed ratio 16. CV 42FC1505.MV Crude Column Top reflux 17. CV Calc tag Dew point @ Atm. Column top

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18. CV 42TI1523 HN Product Draw temp. 19. CV 42TI1506 Kero/ATF Product Draw temp. 20. CV 42TI1508 LD Product Draw temp. 21. CV 42TI1510 HD Product Draw temp. 22. CV 42LC1606.MV Crude Column Reflux drum level controller

output 23. CV 42LC1512.MV HN stripper level controller output 24. CV 42LC1506.MV Kero stipper level controller output 25. CV 42LC1508.MV LD stripper level controller output 26. CV 42LC1510.MV HD stripper level controller output 27. CV 42LC1501.MV CDU column bottom level controller o/p 28. CV Calc tag HN Flash point 29. CV Calc tag Kero/ATF FBP 30. CV Calc tag Kero/ATF Flash Point 31. CV Calc tag ATF Freeze Point 32. CV Calc tag LD Flash point 33. CV Calc tag HD Flash point 34. CV Calc tag HD 95% distillation 35. CV Calc tag HD 85% distillation 36. CV Calc tag 42-F-02 pass-1 temp imbalance 37. CV Calc tag 42-F-02 pass-2 temp imbalance 38. CV Calc tag 42-F-02 pass-3 temp imbalance 39. CV Calc tag 42-F-02 pass-4 temp imbalance 40. CV 42PC2059.MV 42-F-02 Fuel Gas v/p 41. CV 42PC2024.MV 42-F-02 Fuel Oil v/p 42. CV Calc tag 42-F-02 Max. Skin temp. 43. CV 42PI2107 Vacuum Column Flash Zone pressure 44. CV 42TI2108 Vacuum Column Flash Zone Temperature 45. CV 42FC2108.MV Vacuum column bottom quench flow

controller v/p 46. CV 42TI2111 Vac. Diesel Product Draw temp 47. CV 42TI2112 LVGO Product Draw temp. 48. CV 42TI2113 HVGO Product Draw temp. 49. CV Calc tag VGO EP 50. CV 42LC2101.MV VD Draw tray level controller output 51. CV 42LC2102.MV LVGO Draw tray level controller output 52. CV 42LC2103.MV HVGO Draw tray level controller output 53. CV 42LC2104.MV Slop draw tray level controller output 54. CV 42LC2105.MV Vacuum column bottom level controller o/p

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55. CV Calc tag SR viscosity 56. CV Calc tag SR flash point 57. CV Calc tag Vac column Del P across Top & Bed 2 58. CV Calc tag Vac column Del P across Bed 2 & Bed 3 59. CV Calc tag Vac column Del P across Bed 3 & Bed 5 1. DV 42TI1414 Crude inlet temp. to Atmospheric heater 2. DV Fuel gas header pressure 3. DV 42PI2101 Vacuum Column Top Pressure

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2.2.2 Naphtha Stabilizer Multivariable controller

The main purpose of this section is LPG recovery. The advanced control shall be specified for maximising LPG subject to weathering and RVP limits. Other product, light naphtha, quality shall also be controlled. Unit Operator can set the target for product qualities; The controller will manipulate the overhead reflux and Reboiler heating medium of naphtha stabiliser to meet these specifications at the same time maximising the yield of LPG selectively subject to the operator set product specifications.

The application is designed to: • Maintain LPG and light naphtha specifications at their target or within the limits supplied

by the operators. • Maximise the yield of LPG subject to weathering and RVP specifications. Table 2.2 lists the manipulated variables (MVs), controlled variables (CVs) and disturbance variables (DVs) for the light end product quality controller. Table 2.2

Type Tag Name Tag Description

1. MV 42PC1701 Naphtha Stabilizer Column Top Pressure 2. MV 42FC1703 Naphtha Stabilizer Reflux flow 3. MV 42TC1704 Naphtha Stabilizer tray#3 temperature 1. CV Calc tag LPG weathering 2. CV 42LC1702.MV Naphtha Stabilizer bottom level controller output 3. CV Calc tag Naphtha Stabilizer Bottoms PCT 4. CV Calc tag SRN RVP 1. DV 42FC1701 Naphtha Stabilizer feed flow 2. DV 42TI1702 Naphtha Stabilizer feed temp

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2.3 Additional Field Instruments

Based on the control structure proposed in section 2.3.0, few additional field instruments (pressure transmitters ) are recommended as below :

TABLE 2.3 : LIST OF ADDITIONAL FIELD INSTRUMENTS

SL. NO.

EQUIPMENT NO. LOCATION

1. 42-F-01/42-F-02 Fuel gas header pressure

2.4 Observations on the existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC

1. Desalter wash water pumps are not delivering required (design) flow rates 2. Atmospheric overhead condenser is limiting on duty (less than design duty) 3. Crude split flow control valve 42 FRCV-1201 is not functioning properly 4. 42-F-01 and 42-F-02 fuel mass flow meters are unreliable 5. Atmospheric column top temperature controller is unreliable 6. SRN, LPG, Slop cut to SR, VD flow meters range limitation 7. HN stripper LCV bypass is passing 8. O2 analysers of 42-F-01 and 42-F-02 are unreliable

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3.0 BENEFIT ESTIMATION

3.1 Basis The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1

Product Property Targets LPG Weathering, deg C 2

RVP, psia 7 SRN H2S Absent

HN Flash, deg C 38 Kero/ATF EP , deg C 250 (ATF),

290 (SKO) LD Flash, deg C 66

Flash, deg C 100 HD 95% rec, deg C 375

VD VGO End Point, deg C 560

Flash, deg C 180 SR Viscosity

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3.3 Product destination Chart TABLE 3.2 : PRODUCT DESTINATION CHART FOR CDU / VDU-III

DESTINATION →

PRODUCT ↓

LPG NAPHTHA

MS KERO JBO/ FLO

DIESEL DHDS LDO ATP VR FO

VGO HOT/ COLD FEED (FCCU FEED)

BBU/ VBU

LPG FC1905

SRN

FI1804 FI1805

Heavy Naphtha FC1906

Kerosene FC1901 FI1915A FC1925

Light Diesel FC1910 FC3202 FI1916 FC1927 FI9402

Heavy Diesel FI1912 FI1908 FI1913 FC 1914 FI1926

Vaccuum Diesel FC1907 FC3201

VGO FC2404 / FC2401

SLOP FI 2306 FI2305

SR FI2406 FI 9701 FC2304/ F12402

BOLD indicates preferred destination

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3.4 Economic Data

TABLE 3.3 :

Basis: April’03 to February ’04 1st fortnight prices

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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3.5 Estimated Benefits

The estimation of benefits resulting from implementing APC for CDU/VDU-III is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Jan 7,2004 to Feb 10,2004 provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given below.

S.No. Period were data not considered

Reason

1 7/1 11:00 to 13/1 23:00 hrs, 15/1 16:00hrs

Because of feed flow fluctuation

2 16/1 18:00 to 17/1 01:00hrs,20/1 23:00 hrs

-do-

3 25/1 00:00 to 20:00hrs, 26/1 11& 12:00hrs

-do-

4 27/1 07:00 to 23:00 hrs -do- 5 2/2 04:00 to 10/2 20:00hrs -do- 6 17/1 19hrs to 18/1 2hrs -do- 7 29/1 23hrs COT dip

8 Feed Flow below 525 m3/hr

Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads : a) Throughput Maximisation

The benefit is estimated based on reduction of standard deviation in throughput during the benefit analysis period. The maximum throughput achieved during the benefit analysis period (553 m3/hr) has been taken as the specification limit for maximum throughput in benefit calculation.

b) LPG Yield Maximisation

The benefit is estimated based on shift in LPG yield due to reduction in standard deviation in LPG yield during the benefit analysis period, thus resulting in increase in LPG yield.

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c) ATF Maximisation

ATF operation during the period where data has been provided is from 14/1 10hrs to 16/1 9hrs. This data is insufficient to estimate benefits due to ATF maximisation.

d) Diesel Yield Maximisation

The benefit is estimated based on reduction of standard deviation in HD 95 % point during the benefit analysis period, thus resulting in increase in Diesel yield by reducing Diesel slippage to VGO. The maximum HD 95% point limit is considered as 375 oC as per specification in benefit calculation.

e) VGO Maximisation

In addition to the data not considered as mentioned above, the VGO yield data, which is unstable, has been filtered out. The benefit is estimated based on shift in VGO yield due to reduction of standard deviation in VGO yield during the benefit analysis period, thus resulting in increase in VGO yield. Moreover, only 16% reduction in standard deviation of VGO yield considered in benefit calculation because of higher difference between Maximum and Average yields.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.3.

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CDU-III

300

350

400

450

500

550

600

1/9/2004 0:00 1/14/2004 0:00 1/19/2004 0:00 1/24/2004 0:00 1/29/2004 0:00 2/3/2004 0:00 2/8/2004 0:00

Date-TIme

FeedCOT

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CDU-III: Yields (Wt%)

0

2

4

6

8

10

12

14

16

18

1/16/20040:00

1/18/20040:00

1/20/20040:00

1/22/20040:00

1/24/20040:00

1/26/20040:00

1/28/20040:00

1/30/20040:00

2/1/20040:00

Date-TIme

LPGSRNHNKero

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CDU-III: Yields (Wt%)

0

5

10

15

20

25

30

35

1/16/20040:00

1/18/20040:00

1/20/20040:00

1/22/20040:00

1/24/20040:00

1/26/20040:00

1/28/20040:00

1/30/20040:00

2/1/20040:00

Date-TIme

LDHDVDVGOSR

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CDU-III: SRN RVP, PSIA

6.0

6.5

7.0

7.5

8.0

8.5

1/14/20045:00:00 AM

1/16/20045:00:00 AM

1/18/20045:00:00 AM

1/20/20045:00:00 AM

1/22/20045:00:00 AM

1/24/20045:00:00 AM

1/27/20045:00:00 AM

1/29/20045:00:00 PM

1/31/20045:00:00 PM

Date-Time

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CDU-III: HD95%, DEG C

340

345

350

355

360

365

370

375

380

385

1/14/20045:00:00

AM

1/16/20045:00:00

AM

1/18/20045:00:00

AM

1/20/20045:00:00

AM

1/21/20041:00:00

PM

1/23/20045:00:00

AM

1/26/20045:00:00

AM

1/28/20045:00:00

PM

1/30/20045:00:00

AM

1/31/20045:00:00

PM

Date-Time

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SECTION V APC SCOPING STUDY REPORT FOR VBU (unit no.46)

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CONTENTS

Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for VisBreaker Unit (46) of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

Visbreaker unit (VBU). The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for VBU is designed to meet the following specific objectives:

Reduce viscosity of Vacuum Residue/ RCO to meet fuel oil specifications Maintain steady rundown product quality.

Minimize Fuel oil production Maximize LPG subject to weathering (during LPG mode of operation) Maximise VB gas oil subject to distillation/ flash point Maximise Naphtha subject to end point/ RVP

Minimise utility requirements (steam, cooling water). Minimise energy consumption. Provide smooth and quick crude switch capabilities. Stabilise plant operation and maintain safe operation. To meet the above objectives Advanced control strategies are proposed as in section 2.2.

2.1.3 Process Unit Definition

The scope of the advanced control project includes definition of the advanced controls for Visbreaker preheat & furnace section, Visbreaker Soaker & fractionation section and Naphtha Stabiliser section. The unit equipments covered by this study includes the following:

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Visrbreaker unit

Visbreaker Furnace (46-F-01) Visbreaker Soaker Drum (46-C-04) Visbreaker Fractionator (46-C-01), Gas oil Stripper (46-C-02) Sponge Absorber (46-C-05) and associated system

Naphtha Stabilizer (46-C-03) and Reboiler (46-E-06) and Associated system 2.1.4 APC Design Issues Product Quality Control

The main product quality to be controlled in VBU is to minimize the viscosity of VB fuel oil and at the same time maximize the recovery of more valuable products like LPG, VB Naphtha, VB Gas oil subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations are performed for these product qualities based on plant operating data and lab data. Major properties that need to be inferred are LPG weathering, VB Naphtha RVP/EP and sulphur, VB GO flash point and VB fuel oil/ VB Tar viscosity.

Heater pass outlet temperature Balancing Heater pass outlet temperature help to improve heat transfer efficiency in the heater. The controller adjusts individual pass flow controllers set point to keep the individual pass outlet temperature controller’s set points same to the extent possible. All balancing flow adjustments shall sum to zero so that the total flow through the heater is unchanged. The multivariable controller proposed addresses this control function.

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Heater Combustion Control Excess oxygen ingress to furnace leads to inefficient operation of furnace with respect to energy combustion. The purpose of the heater combustion control module is to maintain an optimal air / fuel flow ratio for efficient combustion. Optimal air flow is inferred based on measured heater feed flow, fuel oil, supply & return flows fuel gas flow heater inlet / outlet temperatures, air flow damper opening. Heater combustion control manipulates the stack damper opening to regulate the excess oxygen in the flue gas. Oxygen analyser output (process value) on flue gas line is used for trimming the calculated optimal air flow.

Combustion control is recommended to be implemented in DCS level. 2.2 Advanced Control Strategies

To meet the advanced control objectives as mentioned in section 2.1.2, the following advanced control strategies are proposed: -49148. VisBreaker Unit Multivariable Predictive controller

This controller is designed to account for all unit constraints, reduce product quality variability and improve yields.

The Multivariable predictive controller implementation stabilises the process operations, provides tighter control to operating targets and helps reduce variability of the process, which permits operation of the unit closer to the constraints as a result of which unit profitability is improved. The functional design of the above mentioned control strategies are presented in the following sections.

2.2.1 VisBreaker Unit Multivariable Predictive controller This controller will address Preheat & furnace, VB Soaker drum, Visbreaker fractionation section & Naphtha stabilizer and Sponge absorber section. This controller will account for all unit constraints, furnace pass balancing, reduce product quality variability, improve yields of valuable product and minimise process upsets. This application is designed to: • Furnace pass balancing for achieving equal pass outlet temperatures.

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• Maintain fractionation specifications with product draw temperatures and or inferential measurements (of product qualities) at their targets and or within the limits supplied by the operators.

• Minimize the viscosity of Vacuum residue/RCO feed • Maximise the yield of valuable products – LPG subjected to weathering, VB Naphtha

subject to RVP & EP and VB GO subject to flash & 90% distillation point and minimize fuel oil production subject to viscosity.

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Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs), disturbance variables (DVs) and are presented below. Table 2.1

S. No.

Type Tag Name Tag Description

1. MV 46TC1334 Visbreaker heater Pass-2 Outlet Temperature (46-F-01)

2. MV 46TC1333 Visbreaker heater Pass-1 Outlet Temperature (46-F-01)

3. MV 46FC1303 Visbreaker heater (46-F-01) pass-1 flow 4. MV 46FC1302 Visbreaker heater (46-F-01) pass-2 flow 5. MV 46TC1407 Soaker quenched outlet temperature 6. MV 46TC1501 VB fractionator column Top Temperature 7. MV 46PC1501 VB fractionator column top Pressure 8. MV 46FC1505 VB fractionator bottom Stripping Steam Flow 9. MV 46 FC2002 Gas oil Product to R/D 10. MV 46FC2004 Gas oil flow to VB tar 11. MV 46FC1506 Gas oil stripping steam Flow 12. MV 46FC1502 Gas oil CR flow to fractionator 13. MV 46TC1504 VB bottom temperature 14. MV 46FC1703 Naphtha stabiliser top reflux flow 15. MV 46PC1701 Naphtha Stabiliser Top pressure 16. MV 46TC1704 Naphtha stabiliser bottom temperature 17. MV 46FC1801 Lean oil flow to sponge absorber 1. CV 46PC1327.OP Visbreaker furnace pass-1 Fuel Gas v/p 2. CV 46PC1326.OP Visbreaker furnace pass-2 Fuel Gas v/p 3. CV 46PC1307.OP Visbreaker furnace pass-1 Fuel Oil v/p 4. CV 46PC1306.OP Visbreaker furnace pass-2 Fuel Oil v/p 5. CV Calculated tag Visbreaker furnace Max. Skin temp. 6. CV 46TI5258 Visbreaker furnace arch temperature 7. CV 46PC1401 Soaker drum pressure 8 CV 46DPI1402 Soaker drum del P 9. CV 46TI1503 VB fractionator column Flash zone

temperature 10. CV 46PI1502 VB fractionator column Flash zone pressure

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11. CV 46FC1501.MV VB fractionator Column Top reflux flow controller output

12. CV 46LC1602.MV VB fractionator Column Reflux drum level controller output

13. CV 46TI1506 Gasoil Product Draw temperature 14. CV 46LC1505.MV Gasoil stripper level controller output 15. CV 46LC1502.MV VB fractionator column bottom level controller

output 16. CV Calc tag LPG weathering 17. CV Calc tag Naphtha Stabilizer top Tray PCT 18. CV 46LC1704.MV Naphtha Stabilizer bottom level controller

output 19. CV Calc tag Naphtha Stabilizer Bottoms PCT 20. CV Calc tag VB Naphtha RVP 21. CV Calc tag VB Naphtha EP CV Calc tag VB Gas oil 95% distillation 22. CV Calc tag VB Gas oil flash point 23. CV Calc tag VB Tar viscosity 24. CV Calc tag VB Tar flash point 1. DV 46TI1365 VB furnace inlet temperature 2. DV Fuel gas header pressure

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2.3 Additional Field Instruments

Based on the control structure proposed in section 2.2, few additional field instruments are recommended as below :

TABLE 2.3 : LIST OF ADDITIONAL FIELD INSTRUMENTS

SL. NO.

EQUIPMENT NO. LOCATION

1. 46-F-01 Fuel gas header pressure indication 2.4 Observations on the existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC 1. Stabilizer bottom level indication unreliable 2. Fractionator bottom quench flow indication unreliable 3. Fractionator reflux level control is sluggish 4. Stabilizer bottom level control is sluggish 5. Furnace pass flow controllers are in manual mode 6. Furnace cell #1 &2 fuel oil PCVs are in manual mode 7. Fractionator bottom temperature controller is in manual mode 8. VBGO & Fractionator stripping steams controllers are in manual mode. 9. Quench flow controller is in manual mode 10. Fractionator reflux flow controller is in manual mode. 11. VBGO rundown FCV controller is in manual mode 12. VGBO CR FCV controller is in manual mode 13. Stabiliser reflux flow control controller is in manual mode

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3.0 BENEFIT ESTIMATION 3.1 Basis

The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1

Product Property Specification VB FG - VB Naphtha RVP EP VB GO 95% rec. Color VB Tar Viscosity Sulfur, wt% Density

3.3 Product destination Chart

TABLE 3.2 : PRODUCT DESTINATION CHART FOR VBU

DESTINATION →

PRODUCT ↓

LPG FG NAPHTHA DIESEL FO

LPG 46FC1702 VB FG 46FI2901 VB NAPHTHA 46FC3001 VB GASOIL 46FC2002 46FC2004 VB TAR 46FI2003

BOLD indicates preferred destination

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3.4 Economic Data

TABLE 3.3:

Basis: April’03 to February ’04 1st fortnight prices

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD, HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

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3.5 Estimated Benefits

The estimation of benefits resulting from implementing APC for VBU is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Dec 4-14 2003, Jan 12-31 2004 and Feb 9-19 2004 provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given below.

S.No. Period were data not considered

Reason

1 12/1 21hrs -14/1 7hrs, 16/1 21hrs - 22/1 3hrs

Because of feed flow fluctuation

2 22/1 15hrs, 30/1 20hrs - 31/1 20 hrs, 9/2 21 hrs, 10/2 10 hrs, 11/2 22 hrs

-do-

3 14/1 8 hrs - 15/1 4 hrs, 16/1 13 hrs - 22/1 11hrs

COT fluctuation

4 30/1 18-19hrs, 10/2 5-6hrs -do-

5 16/1 12 hrs - 23/1 11 hrs, 4/12 21hrs, 10/2 0hrs

Soaker temp dip

6 4/12 22hrs - 5/12 1hrs, 9/2 22hrs - 10/2 8hrs

VBGO flow inconsistent

Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads : a) VBGO Yield Maximisation

The benefit is estimated based on shift in VBGO yield due to reduction in standard deviation in VBGO yield during the benefit analysis period, thus resulting in increase in VBGO yield.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.3.

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VBU: Feed flow, M3/hr

80

90

100

110

120

130

140

150

160

11/25/030:00

12/5/030:00

12/15/030:00

12/25/030:00

1/4/04 0:00 1/14/040:00

1/24/040:00

2/3/04 0:00 2/13/040:00

2/23/040:00

3/4/04 0:00

Date-Time

VBU: Furnace

230

280

330

380

430

480

11/25/030:00

12/5/030:00

12/15/030:00

12/25/030:00

1/4/04 0:00 1/14/040:00

1/24/040:00

2/3/04 0:00 2/13/040:00

2/23/040:00

3/4/04 0:00

CIT

Pass1

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VBU: Soaker BPCV Pr, Kg/cm2G

6

7

8

9

10

11

12

13

11/25/030:00

12/5/030:00

12/15/030:00

12/25/030:00

1/4/04 0:00 1/14/040:00

1/24/040:00

2/3/04 0:00 2/13/040:00

2/23/040:00

3/4/04 0:00

VBU: Fractionator Top Pr, Kg/cm2G

5.7

5.8

5.9

6.0

6.1

6.2

6.3

6.4

6.5

11/25/030:00

12/5/030:00

12/15/030:00

12/25/030:00

1/4/04 0:00 1/14/040:00

1/24/040:00

2/3/04 0:00 2/13/040:00

2/23/040:00

3/4/04 0:00

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VBU: Yields (Wt%)

0

1

2

3

4

5

6

7

11/25/030:00

12/5/030:00

12/15/030:00

12/25/030:00

1/4/040:00

1/14/040:00

1/24/040:00

2/3/040:00

2/13/040:00

2/23/040:00

3/4/040:00

VB Fuel GasVB NaphthaVB GO

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SECTION VI APC SCOPING STUDY REPORT FOR FCCU – I REVAMP (Unit no.04)

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CONTENTS Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for FCCU-I Revamp Unit of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

FCCU-I Revamp unit. The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for FCCU-I Revamp is designed to meet the following specific objectives:

Maximise unit throughput subject to unit limitations Stabilise the unit operation Maximise LPG subject to weathering Maximise LCO yield subject to recovery Maintain steady product specifications Minimise utility requirements (fuel, steam, cooling water etc) Maintain stable Reactor/Regenerator operation by providing means to control Reactor/Regenerator pressure and heat balance

To meet the above objectives Advanced control strategies are proposed in section 2.2.

2.1.3 Process Unit Definition

The scope of the advanced control project includes definition of the advanced controls for Reactor and Regenerator section, Main Fractionation section and Gas Concentration section. The unit equipments covered by this study includes the following:

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Feed Preheat Section • Feed Surge Drum (04-V-051) • Cat feed preheat exchangers (04-E-51/52/54) • Feed Furnace (04-F-051) Reactor and Regenerator section • Reactor (04-D-2X) • Regenerator (04-D-1X) • Main Air blower (04-K-1X) • Control Air blower (04-K-2X) Main Fractionation Section • Main Fractionator (4-C-051) • Fractionator Reflux Drum (4-V-053) • LCGO & HCGO Strippers (4-C-52, 4-C-53) • Sponge Absorber (4-C-057) Gas Concentration Section • Wet Gas Compressor (4-K-051) • HP Receiver (4-V-056) • Primary Absorber (4-C-054) • Stripper (4-C-055) • Stripper reboiler (4-E-066) • Debutanizer (4-C-069) • Debutanizer Ovhd. Accumulator (4-V-057) • Debutaniser reboiler (4-E-068)

2.1.4 APC Design issues

Several issues that significantly influence the design and implementation basis of the advanced controls are discussed here. Feed Maximization

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One of the main objectives of APC design is to maximise the unit throughput subject to unit constraints. As the feed rate of FCCU is increased, the major constraints expected to be WGC load limitation, debutaniser tower flooding, lower conversion which is dependant on combined feed ratio (CFR), catalyst circulation rate (CCR), air flow rate (MAB) and regenerator bed temperatures. These variables are to be kept at optimum values to achieve desired conversion and coke burning. The feed rate is prevented from further increase if any of these constraints are violating. Other constraint in feed maximization is limitation of Debutaniser tower bottom section in Gas concentration unit. A single large controller structure will effectively handles these highly interactive process variables of the Reactor-Regenerator and Main fractionator sections. Reactor Temperature Reactor temperature is an important variable, which will effect conversion. Based on mode of operation, reactor temperature to be maintained at different optimal values corresponding to reactor pressure. Reactor temperature is controlled by manipulating the delta P between reactor and regenerator, i.e. by PDRC, feed heater outlet temperature and feed to the unit. While maximising reactor temperature during high conversion operation, the major constraints expected to be wet gas compressor. A single large controller enables effective handling of these multiple inter-linked control objectives. Other constraints while increasing the reactor temperature are catalyst slide valve openings, (Rx/Reg. differential pressure controller output) flue gas valve openings, and heater maximum tube skin temperature is also to be taken into account by the controller. Regenerator Temperature Regenerator dense, dilute phase temperatures and flue gas temperature are to be monitored and controlled to achieve desired coke burning i.e. CRC which effects the system heat and material balance. Any change in operating conditions will affect this balance. The constraints expected while maintaining desired regenerator bed delta temperatures, individual bed temperatures, regenerator superficial velocity, WGC capacity, feed temperature and flue gas valve opening. A single large controller enables effective handling of these multiple inter-linked control objectives.

Reactor-Regenerator Pressure Balance Control

The catalyst circulation rate in the Reactor-Regenerator system depends on differential pressure across reactor and regenerator, which must always be under precise control for

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steady and trouble free operation. The differential pressure between the reactor / regenerator and the WGC suction pressure (on which the reactor pressure is floating) are to be maintained at an optimal level consistent with the overall system operating objectives and constraints. The major constraint expected while maintaining the catalyst circulation rate is wet gas compressor capacities. Other constraints viz. are reactor superficial velocity, regenerator superficial velocity, catalyst slide valves opening and flue gas valve opening. The single large controller maintains the pressure balance in the system while keeping all the constraints, within specified limits. Product Quality Control

The product qualities shall be controlled to maximize yield of valuable products like LPG, Gasoline and subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations shall be performed for these product quantities based on plant operating data and lab data. Major properties that need to be inferred are LPG weathering, CRN RVP, LCO recovery.

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2.2 Advanced Control Strategies

This chapter describes the advanced control strategies proposed for the FCCU-I Revamp. They are as follows: • Reactor-Regenerator & Main Fractionator Multivariable Controller • GASCON multivariable controller

The general objectives for these advanced control strategies are outlined in section 2.1.2. In the subsequent sections of this chapter the functional design of these advanced control strategies are described.

2.2.1 Reactor-Regenerator & Main Fractionation Multivariable Controller

This controller will address the Reactor-Regenerator, Main Fractionation sections. This controller will account for all unit constraints (such as MAB/CAB, WGC), maximize throughput, maintain desired conversion based on mode of operation (CRN/LCO); CCR, Heat & Pressure balance in regenerator; reduce product quality variability, improve yields and minimize process upsets. Primary control variables are conversion, differential pressure across reactor/regenerator, regenerator bed temperature, reactor stripper level, and fractionator product qualities. Unit constraints on MAB capacity, WGC capacity, furnace limitations, product rundown, pumps capacity etc. are taken into account. The controller adjusts unit feed flow, airflow to regenerator, Differential pressure across Reactor-Regenerator, WGC Suction pressure, Heater outlet temperature, product rundown and pump around flows. For the Reactor-Regenerator & Main Fractionation, a single multivariable controller is proposed to achieve the following objectives:

i) Smooth and steady operation of Reactor-Regenerator section by ensuring heat and

pressure balance, operating the system near constraints to get desired conversion by manipulating reactor outlet temperature, air flow to regenerator, feed temperature to reactor, catalyst circulation, and maintaining regenerator bed temperatures with in the allowable limits.

ii) Maximise gasoline/LCO based on mode of operation iii) Maintain product quality specifications iv) Maximise throughput subject to unit limitations. v) Stabilise the Main Fractionation unit operation

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vi) Maintain steady product specifications vii) Minimise utility requirements viii) Stabilize coke burning in the regenerator while maintaining minimum CRC by

regulating air to the regenerator. ix) Maintain other key operating variables such as CCR, superficial velocity in

Regenerator, R-R differential pressure, MAB, WGC constraints at the targets or within limits.

The Reactor-Regenerator & Main Fractionator multivariable controller implementation stabilizes the process operation and provides tighter control to operating targets. The controller reduces the variability of the process variables, permitting operation closer to constraints, which results in increase in unit profitability.

Multivariable controller structure Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs) and Disturbance variables (DVs) for the Reactor-Regenerator & Main Fractionator multivariable control strategy.

Table 2.1:

S.No. Type Tag name Description 1 MV 4FC1901 Feed Rate 2 MV 4TC1911 04-F-051 COT 3 MV 4FC504 Slurry Recycle 4 MV 4FC2202 HCO Recycle 5 MV 4PDC501 Reactor – Regenerator delta P 6 MV 4FC2X CAB flow to Regenerator 8 MV 4HC510 MAB flow to Regenerator 9 MV 4FC505 Stripping Steam to Reactor 10 MV 4FC2003 Main Fractionator reflux flow 11 MV 4PC2407 Main Fractionator Top Pressure 12 MV 4FC2001 LCO P/A Flow 13 MV 4FC2002 HCO P/A Flow 14 MV 4FC3302 CLO R/D 15 MV New controller

(4FI2006) MF stripping steam flow

16 MV 4TC2013 MF Bottom temperature 17 MV 4FC2004 MF Top Quench Flow 18 MV 4FC2005 MF Middle Quench Flow 19 MV 4FC2201 MF Bottom Quench Flow

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S.No. Type Tag name Description 20 MV 4FC3303 LCO R/D 21 MV 4FC2101 Stripping Steam to LCO Stripper 22 MV 4FC2102 Stripping Steam to HCO Stripper 1 CV 4TC512 Reactor Temperature 2 CV 4LC2402.OP MF Ovhd. accumulator level CV opening 3 CV 4LC2104.OP HCO Stripper level CV opening 4 CV 4LI2005 MF bottom level CV opening 5 CV 4LC2902.OP Sponge Absorber btm. Level CV opening 6 CV 4LC2103.OP LCO Stripper Level CV Opening 7 CV 4LI501 Reactor Stripper level 8 CV 4AI501 Regenerator flue gas excess oxygen 9 CV 4PI241X Reactor Pressure 10 CV 4LI1X.PV Catalyst level in Regenerator 11 4TI20X Regenerator Flue gas Temperature 12 CV Calc tag Regenerator max. dense bed Temperature 13 CV Calc tag Regenerator max dilute bed temperature 14 CV WGC motor amperage /Capacity 15 CV MAB Amperage/Capacity 16 CV Calc tag Delta P across MF OVHD and shed section 17 CV Calc tag Delta P across shed section 18 CV Calc tag Feed heater maximum skin temperature 19 CV 4PC1902.OP Feed heater fuel oil pressure CV opening 20 CV 4PC1901.OP Feed heater fuel gas pressure CV opening 21 CV Calc tag Furnace Pass-1 temperature imbalance 22 CV Calc tag Furnace Pass-2 temperature imbalance 23 CV Calc tag MF Top PCT 24 CV 4TI2015 LCO draw temperature 25 CV Calc tag LCO 95% point 26 CV 4TI2016 HCO draw temperature 1 DV 4TI1901 Feed Preheat temperature to furnace 2 DV 4PI1923 Fuel gas pressure

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2.2.2 GASCON Multivariable Controller For the Gas Concentration section, a multivariable controller is proposed to achieve the following objectives. i) Maximise LPG subject to weathering ii) Remove sufficient C4 and lighter components from Debutaniser bottoms to maintain

Gasoline RVP specification iii) Minimize LPG component (C3+) carry over in Sponge Absorber overhead and C2

and lighter components in Stripper bottom iv) Maintain smooth and stable operation. The GASCON multivariable controller implementation stabilises the process operation and provides tighter control to operating targets. The controller reduces the variability of the process variables, permitting operation closer to the constraints, which results in increased unit profitability. Multivariable Controller Structure

Table 2.2 lists the manipulated variables (MVs), controlled variables (CVs) and Disturbance variables (DVs) for the GASCON multivariable control strategy. Table 2.2:

S.No. Type Tag name Description 1. MV 4FC2801 Debutaniser bottom flow to Primary Absorber 2. MV (4TI2808) Stripper column tray #3 temp. 3. MV 4TC3003 Debutanizer tray#3 temp. 4. MV 4PC3001 Debutanizer Top pressure 5. MV 4FC3001 Debutaniser reflux flow 6. MV 4FC2901 Lean Oil to Sponge Absorber 7. MV 4PC2901 Sponge Absorber Top Pressure 1. CV 4TI2818 Primary Absorber top temperature 2. CV 4TI2810 Stripper bottom temperature 3. CV Calc tag LPG Weathering 4. CV Calc tag Debutanizer bottom PCT / CRN RVP 5. CV Calc tag Debut top & feed section diff. pressure 6. CV 4LC3101.OP Debut ovhd accumulator level CV opening

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S.No. Type Tag name Description 7. CV 4LC2802.OP Stripper bottom level CV opening 8. CV 4LC2703.OP HP Receiver Level CV opening 1. DV 4FI2703 Primary Absorber vapor feed flow 2. DV 4FC2701 Stripper feed flow 3. DV 4FC2803 Debutaniser feed flow 4. DV 4TI2810 Debutaniser feed temperature 5. DV 4PC2901 Sponge Absorber Pressure 6. DV 4TI2701 Primary Absorber vapor feed temperature

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2.3 Additional Field Instruments

Based on the control structure proposed in section 2.2, few additional field instruments are recommended as below :

TABLE 2.4 : LIST OF ADDITIONAL FIELD INSTRUMENTS

SL. NO.

EQUIPMENT NO. LOCATION

1. Main Fractionator (4-C-051)

Control valve to be provided on the Main Fractionator bottom stripping steam line. 4FI2006 to be converted to 4FC2006.

2. Debutaniser (4-C-056)

Column bottom pressure indicator to be provided

2.4 Observations on the existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC

1. During processing of low sulfur VGO, unstabilised naphtha pumps are (4-P-054)

limiting. 2. Analysers on flue gas line ex. Regenerator are not working. 3. Slurry reflux flows to Main Fractionator, 4FC2004 & 2005, are not working.

Respective control valves are always on manual mode.

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3.0 BENEFIT ESTIMATION 3.1 Basis

The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1 Product Property Specification ATG C3s LPG Weathering, deg C 2 CRN RVP, psia 7 Sulfur, wt% LCO 95% rec., deg C 370

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3.3 Product destination Chart Table 3.2

DESTINATION →

PRODUCT ↓

FG LPG MS DIESEL SOUR

DIESEL/ CUTTER

FO

ATG 4FI2903 LPG 4FC3301 CRN 4FC3304

LCO 4FC3601 4FC3303/4FI3305

CLO+HFO 4FC3302

BOLD indicates preferred destination

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3.4 Economic Data

Table 3.3

Basis: April’03 to February ’04 1st fortnight prices

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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3.5 Estimated Benefits The estimation of benefits resulting from implementing APC for FCCU-I Revamp is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Jan 1-31st, 2004 provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given.

S.No. Period were data not considered Reason

1 8/1 12 hrs, 9/1 12hrs to 11/1 14 hrs, 13/1 6 hrs

Because of feed flow fluctuation

2 18/1 22 hrs to 21/1 5 hrs -do- 3 27/1 10 hrs to 30/1 3 hrs -do- 4 18/1 21 hrs ROT sudden decrease

Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads : a) Throughput Maximisation

The benefit is estimated based on reduction of standard deviation in throughput during the benefit analysis period. The maximum throughput achieved during the benefit analysis period (169.5 m3/hr) has been taken as the specification limit for maximum throughput in benefit calculation.

b) LPG Yield Maximisation

In addition to the data not considered as mentioned above, the LPG yield data, which is unstable, has been filtered out. Hence data considered for benefit analysis is from 11/1 15hrs to 17/1 17hrs, 21/1 9hrs to 31/1 6hrs. The benefit is estimated based on shift in LPG yield due to reduction in standard deviation in LPG yield during the benefit analysis period, thus resulting in increase in LPG yield.

c) CRN Yield Maximisation

In addition to the data not considered as mentioned above, the CRN yield data where CRN RVP is greater than 7 psia has been filtered out. Hence data considered for benefit analysis is from 13/1 22hrs to 14/1 16hrs, 15/1 2hrs to 16/1 5hrs, 16/1 14hrs to 22/1 5hrs, 23/1 2-17hrs, 24/1 2-19hrs, 25/1 4-17hrs, 30/1 14hrs to 31/1 9hrs. The benefit is estimated based on shift in CRN yield due to reduction of standard deviation in CRN yield during the benefit analysis period, thus resulting in increase in CRN yield.

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d) LCO Yield Maximisation

In addition to the data not considered as mentioned above, the LCO yield data, which is unstable, has been filtered out. Hence data considered for benefit analysis is from 11/1 15hrs to 17/1 17hrs, 21/1 9hrs to 31/1 6hrs. Out of this data, the LCO yield data where LCO 95% is greater than 370 oC (which is from 11/1 15hrs to 15/1 9hrs, 17/1 5-17hrs, 21/1 21hrs to 22/1 9hrs, 23/1 21hrs to 24/1 9hrs, 25/1 21hrs to 27/1 9hrs) is also filtered out. The benefit is estimated based on shift in LCO yield due to reduction of standard deviation in LCO yield during the benefit analysis period, thus resulting in increase in LCO yield.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.3.

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FCCU-I: Feed Flow, m3/hr

160

162

164

166

168

170

172

12/30/03 0:00 1/4/04 0:00 1/9/04 0:00 1/14/04 0:00 1/19/04 0:00 1/24/04 0:00 1/29/04 0:00 2/3/04 0:00 2/8/04 0:00

Date-TIme

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FCCU-I: Reactor Outlet Temp, Deg C

506

507

508

509

510

511

512

513

514

12/30/03 0:00 1/4/04 0:00 1/9/04 0:00 1/14/04 0:00 1/19/04 0:00 1/24/04 0:00 1/29/04 0:00 2/3/04 0:00 2/8/04 0:00

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FCCU-I: Yields (Wt%)

0

5

10

15

20

25

30

35

40

45

12/30/030:00

1/4/04 0:00 1/9/04 0:00 1/14/04 0:00 1/19/04 0:00 1/24/04 0:00 1/29/04 0:00 2/3/04 0:00 2/8/04 0:00

ATGLPGCRN

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FCCU-I: Yields (Wt%)

0

5

10

15

20

25

30

35

12/30/030:00

1/4/04 0:00 1/9/04 0:00 1/14/04 0:00 1/19/04 0:00 1/24/04 0:00 1/29/04 0:00 2/3/04 0:00 2/8/04 0:00

LCOCLO

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FCCU-I: LCO 95%, Deg C

300

310

320

330

340

350

360

370

380

390

1/1/20049:00:00 PM

1/4/20049:00:00 AM

1/6/20049:00:00 PM

1/9/20049:00:00 AM

1/13/20049:00:00 PM

1/16/20049:00:00 AM

1/18/20049:00:00 AM

1/22/20049:00:00 PM

1/25/20049:00:00 AM

1/30/20049:00:00 AM

FCCU-I: CRN RVP, PSIA

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

1/1/20049:00:00 PM

1/4/20049:00:00 AM

1/6/20049:00:00 PM

1/9/20049:00:00 AM

1/13/20049:00:00 PM

1/16/20049:00:00 AM

1/18/20049:00:00 PM

1/23/20049:00:00 AM

1/25/20049:00:00 PM

1/30/20049:00:00 AM

Date-TIme

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SECTION VII APC SCOPING STUDY REPORT FOR FCCU – II & PRU

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CONTENTS

Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for FCCU-II & PRU Unit of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

FCCU-II & PRU unit. The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for FCCU-II & PRU is designed to meet the following specific objectives: • Maximise unit throughput subject to unit limitations • Stabilise the unit operation • Maximise LPG subject to weathering • Maximise LCO yield subject to recovery • Maintain steady product specifications • Minimise utility requirements (fuel, steam, cooling water etc) • Maintain stable Reactor/Regenerator operation by providing means to control

Reactor/Regenerator pressure and heat balance • Maximization of propylene subject to quality (min. 95 wt% C3-) • Minimize Propylene slippage to Propane • Stabilise the unit operation To meet the above objectives Advanced control strategies are proposed in section 2.2.

2.1.3 Process Unit Definition

The scope of the advanced control project includes definition of the advanced controls for Reactor and Regenerator section, Main Fractionation section, Gas Concentration section and PRU. The unit equipments covered by this study includes the following:

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Feed Preheat Section • Feed Surge Drum • Cat feed preheat exchangers (14-E-03) • Feed Preheater (14-F-01) Reactor and Regenerator section • Reactor (14-R-01) • Regenerator (14-R-02) • Main Air blower • Controlled Air blower Main Fractionation Section • Main Fractionator (14-C-01) • Fractionator Reflux Drum (14-V-05) • LCO & HCO Strippers (14-C-02, 14-C-03) • Sponge Absorber (15-C-02) Gas Concentration Section • Wet Gas Compressor • HP Receiver (15-V-03) • Primary Absorber (15-C-01) • Stripper (15-C-03) • Stripper feed preheat exchanger (15-E-09) • Stripper Reboiler (15-E-07/08) • Stabilizer (15-C-04) • Naphtha Stabilizer reflux drum • Naphtha Stabilizer Reboiler (15-E-12) PRU • Feed Surge Drum (07-V-103) • C3-C4 Splitter (07-C-01) • C3-C4 Splitter Ovhd. Condenser (07-V-04) • C3-C4 Splitter Reboiler (07-E-103) • C3-C3 Splitter (07-C-02) • C3-C3 Splitter Ovhd. Condenser (07-V-05)

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• C3-C3 Splitter Reboiler (07-E-05) 2.1.4 APC Design issues

Several issues that significantly influence the design and implementation basis of the advanced controls are discussed here. FCCU-II Feed Maximization

One of the main objectives of APC design is to maximise the unit throughput subject to unit constraints. As the feed rate of FCCU is increased, the major constraints expected to be WGC load limitation, debutaniser tower flooding, lower conversion which is dependant on combined feed ratio (CFR), catalyst circulation rate (CCR), air flow rate (MAB) and regenerator bed temperatures. These variables are to be kept at optimum values to achieve desired conversion and coke burning. The feed rate is prevented from further increase if any of these constraints are violating. Other constraint in feed maximization is limitation of Debutaniser tower bottom section in Gas concentration unit. A single large controller structure will effectively handles these highly interactive process variables of the Reactor-Regenerator and Main fractionator sections. Reactor Temperature Reactor temperature is an important variable which will effect conversion . Based on mode of operation, reactor temperature to be maintained at different optimal values corresponding to reactor pressure. Reactor temperature is controlled by manipulating the delta P between reactor and regenerator, i.e. by PDRC, feed heater outlet temperature and feed to the unit . While maximising reactor temperature during high conversion operation, the major constraints expected to be wet gas compressor. A single large controller enables effective handling of these multiple inter-linked control objectives. Other constraints while increasing the reactor temperature are catalyst slide valve openings, (Rx/Reg. differential pressure controller output) flue gas valve openings, heater maximum tube skin temperature are also to be taken into account by the controller. Regenerator Temperature Regenerator dense, dilute phase temperatures and flue gas temperature are to be monitored and controlled to achieve desired coke burning i.e. CRC which effects the system heat and material balance. Any change in operating conditions will affect this balance. The constraints expected while maintaining desired regenerator bed delta temperatures, individual bed temperatures, regenerator superficial velocity, WGC capacity feed temperature and flue gas valve opening.

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A single large controller enables effective handling of these multiple inter-linked control objectives.

Reactor-Regenerator Pressure Balance Control

The catalyst circulation rate in the Reactor-Regenerator system depends on differential pressure across reactor and regenerator, which must always be under precise control for steady and trouble free operation. The differential pressure between the reactor / regenerator and the WGC suction pressure (on which the reactor pressure is floating) are to be maintained at an optimal level consistent with the overall system operating objectives and constraints. The major constraint expected while maintaining the catalyst circulation rate is wet gas compressor capacities. Other constraints viz. are reactor superficial velocity, regenerator superficial velocity, catalyst slide valves opening and flue gas valve opening. The single large controller maintains the pressure balance in the system while keeping all the constraints within specified limits. Product Quality Control

The product qualities shall be controlled to maximize yield of valuable products like LPG, Gasoline and subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations shall be performed for these product quantities based on plant operating data and lab data. Major properties that need to be inferred are LPG weathering, Gasoline RVP, Gasoline octane no., LCO recovery. PRU Feed Maximization

One of the main objectives of APC design is to maximise the unit throughput subject to unit constraints. As the feed rate of PRU is increased, the major constraints expected are feed pump (7-P-01) and C3-C3- splitter reboiler (7-E-05). A single controller will effectively handle these constraints while maximising the feed to the unit. Propylene Quality Control

The propylene quality shall be controlled while maximizing the yield of the same. The propylene quality is measured by lab analysis. In order to provide on-line values of the quality for the controller, inferred property calculations shall be performed for the same based on plant operating data and lab data.

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Major properties that need to be inferred are Propylene slippage to propane, Propylene purity.

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2.2 Advanced Control Strategies

This chapter describes the advanced control strategies proposed for the FCCU-I Revamp & PRU. They are as follows: • Reactor-Regenerator & Main Fractionator Multivariable Controller • GASCON multivariable controller • PRU multivariable controller

The general objectives for these advanced control strategies are outlined in section 2.1.2. In the subsequent sections of this chapter the functional design of these advanced control strategies are described.

2.2.1 Reactor-Regenerator & Main Fractionation Multivariable Controller

This controller will address the Reactor-Regenerator, Main Fractionation sections. This controller will account for all unit constraints (such as MAB/CAB, WGC), maximize throughput, maintain desired conversion based on mode of operation (Gasoline/Diesel), CCR, Heat & Pressure balance in regenerator; reduce product quality variability, improve yields and minimize process upsets. Primary control variables are conversion, differential pressure across reactor/regenerator, regenerator bed temperature, reactor stripper level, and fractionator product qualities. Unit constraints on MAB capacity, WGC capacity, furnace limitations, product rundown, pumps capacity etc. are taken into account. The controller adjusts unit feed flow, airflow to regenerator, Differential pressure across Reactor-Regenerator, WGC Suction pressure, Heater outlet temperature, product rundown and pump around flows. For the Reactor-Regenerator & Main Fractionation, a single multivariable controller is proposed to achieve the following objectives:

i) Smooth and steady operation of Reactor-Regenerator section by ensuring heat and

pressure balance, operating the system near constraints to get desired conversion by manipulating reactor outlet temperature, air flow to regenerator, feed temperature to reactor, catalyst circulation, and maintaining regenerator bed temperatures with in the allowable limits.

ii) Maximise gasoline/TCO based on mode of operation iii) Maintain product quality specifications iv) Maximise throughput subject to unit limitations.

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v) Stabilise the Main Fractionation unit operation vi) Maintain steady product specifications vii) Minimise utility requirements viii) Stabilize coke burning in the regenerator while maintaining minimum CRC by

regulating air to the regenerator. ix) Maintain other key operating variables such as CCR, superficial velocity in

Regenerator, R-R differential pressure, MAB, WGC constraints at the targets or within limits.

The Reactor-Regenerator & Main Fractionator multivariable controller implementation stabilizes the process operation and provides tighter control to operating targets. The controller reduces the variability of the process variables, permitting operation closer to constraints, which results in increase in unit profitability.

Multivariable controller structure Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs) and Disturbance variables (DVs) for the Reactor-Regenerator & Main Fractionator multivariable control strategy.

Table 2.1:

S.No. Type Tag name Description 1 MV FR400 Feed Rate 2 MV FR415A Heater Pass A flow 3 MV FR415B Heater Pass B flow 4 MV TR403 14-F-1X COT 5 MV FR420 Slurry Recycle 6 MV FR406 Circ. Oil recycle 7 MV DP401A/B Reactor – Regenerator delta P 8 MV FR401 MAB flow to Regenerator 9 MV FR402 Stripping Steam to Reactor 10 MV TR401 Reactor outlet temperature 11 MV FR413 Main Fractionator Top reflux flow 12 MV PR401 Main Frac Ovhd Receiver Pressure 13 MV FR508.SP LCO P/A Flow 14 MV FR509 HCO P/A Flow 15 MV FR405 CRO CR Flow 16 MV FR425.SP CLO R/D 17 MV New Controller MF stripping steam flow

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S.No. Type Tag name Description (FI4101)

18 MV FR407 MF bottom Quench Flow 19 MV FR424 Quench 1 flow 20 MV FR422 Quench 2 flow 21 MV FR419 Slurry recycle to MF 22 MV FR412 LCO R/D 23 MV FR410 HCO to TCO R/D 24 MV FR3701 HCO R/D 25 MV FR407 Stripping Steam to LCO Stripper 26 MV FR408 Stripping Steam to HCO Stripper 1 CV LR401.MV Reactor Stripper level 2 CV AI250/251/252.PV Regenerator flue gas excess oxygen 3 CV PX400.PV Reactor Pressure 4 CV LI1X.PV Catalyst level in Regenerator 5 CV TI20X Regenerator Flue gas Temperature 6 CV Calc tag Regenerator maximum dense bed

temperature 7 CV Calc tag Regenerator maximum dilute bed

temperature 8 CV Calc tag Carbon on Regenerated Catalyst (CRC) 9 CV Calc tag WGC motor amperage /Capacity 10 CV Calc tag MAB Amperage/Capacity 11 CV Calc tag Reactor superficial Velocity 12 CV Calc tag Regenerator superficial Velocity 13 CV LI402.MV MF Ovhd. accumulator level CV opening 14 CV LX405.MV HCO Stripper level CV opening 15 CV LX402R.MV MF bottom level CV opening 16 CV LX507.MV Sponge Absorber btm. Level CV opening 17 CV LX406.MV LCO Stripper btm. Level CV Opening 18 CV Calculated variable Feed heater maximum skin temperature 19 CV PI402.MV Feed heater fuel oil pressure CV opening 20 CV Feed heater fuel gas CV opening 21 CV Calc tag Furnace Pass-1 temperature imbalance 22 CV Calc tag Furnace Pass-2 temperature imbalance 23 CV Calc tag Catalyst Circulation rate (CCR)/Feed ratio 24 CV Calc tag Combined Feed ratio (CFR) 25 CV Calc tag MF Top PCT

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S.No. Type Tag name Description 26 CV TX423 LCO draw temperature 27 CV Calc tag TCO 95% point 28 CV TX425 HCO draw temperature 1 DV TX450 Feed Preheat temperature to furnace 2 DV PI4602 Fuel gas pressure

2.2.2 GASCON Multivariable Controller

For the Gas Concentration section, a multivariable controller is proposed to achieve the following objectives. i) Maximise LPG subject to weathering ii) Remove sufficient C4 and lighter components from Debutaniser bottoms to maintain

Gasoline RVP specification iii) Minimize LPG component (C3+) carry over in Sponge Absorber overhead and C2

and lighter components in Stripper bottom iv) Maintain smooth and stable operation. The GASCON multivariable controller implementation stabilises the process operation and provides tighter control to operating targets. The controller reduces the variability of the process variables, permitting operation closer to the constraints, which results in increased unit profitability. Multivariable Controller Structure

Table 2.2 lists the manipulated variables (MVs), controlled variables (CVs) and Disturbance variables (DVs) for the GASCON multivariable control strategy. Table 2.2:

S.No. Type Tag name Description 1. MV FR505 Gasoline recycle to Primary Absorber 2. MV FR507 LCO P/A flow to Stripper reboiler 3. MV FR509 HCO P/A flow to Stabiliser reboiler 4. MV PR502 Stabiliser Top pressure 5. MV FR510 Stabiliser reflux flow

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S.No. Type Tag name Description 6. MV FR506 Lean Oil to Sponge Absorber 7. MV PR503 Sponge Absorber Top Pressure 1. CV TX518 Primary Absorber top temperature 2. CV TX540 Stripper bottom temperature 3. CV Calc tag LPG Weathering 4. CV Calculated variable Gasoline (CRN) RVP 5. CV Calc tag Differential pressure across Stabiliser 6. CV LI503.MV Debutanizer ovhd. accumulator level CV opening 7. CV LR508.MV Stripper bottom level CV opening 8. CV LI501.MV HP Receiver Level CV opening 1. DV FX513 Primary Absorber ovhd vapor flow 2. DV FR504 Stripper feed flow 3. DV FR514 Stabiliser feed flow 4. DV TX539 Stabiliser feed temperature 5. DV PR503 Sponge Absorber Pressure

2.2.3 PRU Multivariable Controller

The PRU multivariable controller implementation stabilizes the process operation and provides tighter control to operating targets. The controller reduces the variability of the process variables, permitting operation closer to constraints, which results in increase in unit profitability.

Multivariable controller structure Table 2.3 lists the manipulated variables (MVs), controlled variables (CVs) and Disturbance variables (DVs) for PRU multivariable controller. Table 2.3: S.No. Type Tag Name Tag Description 1. MV 7-PC-109 7-C-01 column top pressure 2. MV 7-FC-103 7-C-01 column reflux flow 3. MV 7-FC-104 LP steam flow to 7-C-01 Reboiler 4. MV 7-PC-201 7-C-02 column top pressure

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S.No. Type Tag Name Tag Description 5. MV 7-FC-203 7-C-02 column reflux flow 6. MV 7-FC-208 LP steam flow 7-C-02 reboiler 1. CV Calc tag 7-C-01 column Top PCT 2. CV Calc tag 7-C-01 column bottom PCT 3. CV 7LC101.MV 7-V-03 level controller O/P 4. CV 7LC102.MV 7-V-02 level controller O/P 5. CV 7LC103.MV 7-C-01 bottom level controller O/P 6. CV Calc tag 7-C-02 column Top PCT / Propylene

purity 7. CV Calc tag 7-C-02 column bottom PCT / Propylene

slippage in Propane 8. CV 7LC202.MV 7-V-05 level controller O/P 9. CV 7LC201.MV 7-C-02 bottom level controller O/P 1. DV 7FC101 PRU feed flow 2. DV PRU feed temperature

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2.3 Additional Field Instruments

Based on the control structure proposed in section 2.2, few additional field instruments are recommended as below :

TABLE 2.4 : LIST OF ADDITIONAL FIELD INSTRUMENTS

SL. NO.

EQUIPMENT NO. LOCATION

1. Main Fractionator (14-C-01)

Control valve on Main Fractionator bottom stripping steam flow line

2.4 Observations on existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC 1. In FCCU-II, WGC Interstage pumps, Stabiliser overhead condenser, Feed / Slurry

preheat exchanger(14E03), Rundown coolers are limiting. 2. Propylene feed pump 7-P-01 is limiting while maximising the feed. If feed maximization

is an APC objective then feed pump to be augmented. 3. 7-C-02 reboiler (7-E-05) is limiting at high throughputs (>36 m3/hr). 4. Feed flow indication (7-FC-101) erratic.

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3.0 BENEFIT ESTIMATION 3.1 Basis

The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1 : FCCU-II Product specifications Product Property Specification ATG C3s, vol% max 7.5 LPG Weathering, deg C 2 CRN RVP, psia 7 Sulfur, wt% 0.05 wt% (Ultra low ‘S’ MS)

0.1 wt% (normal MS) HCO 95% rec., deg C 370 Table 3.2 : PRU Product specifications Product Property Specification Propylene Purity 95 wt% min Propane Propylene

slippage 8.3% of propylene max

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3.3 Product destination Chart Table 3.3 : FCCU-II Product destination chart

DESTINATION →

PRODUCT ↓

FG LPG MS DIESEL DHDS FO

ATG FX503R LPG FR511 CRN FR802

LCO FR412 FR412 FR3702 14FI9501,

FR412

HCO FR410 FR3701 14FI9505,

FR410 CLO FR425

BOLD indicates preferred destination

Table 3.4 : PRU Product destination chart

DESTINATION →

PRODUCT ↓

LPG PROPYLENE

PROPANE FXI304 PROPYLENE FCI301 FCI301 C4+ FX1302

BOLD indicates preferred destination

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3.4 Economic Data

Table 3.5

Basis: April’03 to February ’04 1st fortnight prices

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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3.5 Estimated Benefits The estimation of benefits resulting from implementing APC for FCCU-II & PRU is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Jan 1st-31st, 2004 provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given below. S.No. Period were data not considered Reason

1 9/1 11 hrs to 10/1 18 hrs, 13/1 6 hrs Because of feed flow fluctuation

2 17/1 13 hrs to 19/1 10 hrs -do- 3 24/1 7 hrs to 25/1 10 hrs -do- 4 28/1 23 hrs, 29/1 0 hrs -do- Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads : a) Throughput Maximisation

The benefit is estimated based on reduction of standard deviation in throughput during the benefit analysis period. The maximum throughput achieved during the benefit analysis period (110.9 m3/hr) has been taken as the specification limit for maximum throughput in benefit calculation.

b) LPG Yield Maximisation

The benefit is estimated based on shift in LPG yield due to reduction in standard deviation during the benefit analysis period, thus resulting in increase in LPG yield.

c) CRN Yield Maximisation

In addition to the data not considered as mentioned above, the CRN yield data where CRN RVP is greater than 7 psia has been filtered out. Hence data considered for benefit analysis is from 19/1 22hrs to 1/2 20 hrs. The benefit is estimated based on shift in CRN yield due to reduction of standard deviation in CRN yield during the benefit analysis period, thus resulting in increase in CRN yield.

d) TCO Yield Maximisation

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In addition to the data not considered as mentioned above, the TCO yield data where TCO 95% is greater than 370 oC has been filtered out. Hence data considered for benefit analysis is from 2/1 0 to 4hrs, 2/1 14hrs to 8/1 13hrs, 27/1 21hrs to 1/2 20hrs. The benefit is estimated based on shift in TCO yield due to reduction of standard deviation in TCO yield during the benefit analysis period, thus resulting in increase in TCO yield.

e) Propylene Yield Maximisation In addition to the data not considered as mentioned above, the data where CRN yield is unstable has been filtered out. Hence data considered for benefit analysis is from 2/1 0hrs to 27/1 8hrs. The benefit is estimated based on shift in Propylene yield due to reduction of standard deviation in Propylene yield during the benefit analysis period, thus resulting in increase in Propylene yield.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.5.

FCCU-II: Feed Flow, M3/hr

106

107

108

109

110

111

112

12/30/20030:00

1/4/2004 0:00 1/9/2004 0:00 1/14/20040:00

1/19/20040:00

1/24/20040:00

1/29/20040:00

2/3/2004 0:00 2/8/2004 0:00

Date-Time

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FCCU-II: Reactor Tempearture, Deg C

488

489

490

491

492

493

494

495

496

497

498

12/30/20030:00

1/4/2004 0:00 1/9/2004 0:00 1/14/20040:00

1/19/20040:00

1/24/20040:00

1/29/20040:00

2/3/2004 0:00 2/8/2004 0:00

FCCU-II: Yields (Wt%)

0

5

10

15

20

25

30

35

12/30/20030:00

1/4/20040:00

1/9/20040:00

1/14/20040:00

1/19/20040:00

1/24/20040:00

1/29/20040:00

2/3/20040:00

2/8/20040:00

ATGLPGCRN

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FCCU-II: Yields (Wt%)

0

10

20

30

40

50

60

12/30/20030:00

1/4/20040:00

1/9/20040:00

1/14/20040:00

1/19/20040:00

1/24/20040:00

1/29/20040:00

2/3/20040:00

2/8/20040:00

TCOCLO

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FCCU-II: CRN RVP, PSIA

5

5.5

6

6.5

7

7.5

8

8.5

9

9.5

1/1/20049:00:00

PM

1/3/20049:00:00

PM

1/5/20049:00:00

PM

1/7/20049:00:00

PM

1/10/20049:00:00

PM

1/20/20049:00:00

PM

1/22/20049:00:00

PM

1/26/20049:00:00

AM

1/28/20049:00:00

AM

1/30/20049:00:00

AM

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FCCU-II: TCO 95%, DEG C

350

355

360

365

370

375

380

1/1/20049:00:00

PM

1/4/20049:00:00

AM

1/8/20049:00:00

AM

1/11/20049:00:00

AM

1/13/20049:00:00

PM

1/16/20049:00:00

AM

1/18/20049:00:00

PM

1/21/20049:00:00

AM

1/23/20049:00:00

PM

1/26/20049:00:00

AM

1/28/20049:00:00

PM

1/31/20049:00:00

AM

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PRU: Feed Flow, M3/hr

15

20

25

30

35

40

12/30/20030:00

1/4/2004 0:00 1/9/2004 0:00 1/14/20040:00

1/19/20040:00

1/24/20040:00

1/29/20040:00

2/3/2004 0:00 2/8/2004 0:00

PRU: Yields (Wt%)

0

10

20

30

40

50

60

70

12/30/20030:00

1/4/20040:00

1/9/20040:00

1/14/20040:00

1/19/20040:00

1/24/20040:00

1/29/20040:00

2/3/20040:00

2/8/20040:00

PropanePropyleneC4+

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PRU: PRU RD C3- (VOL%)

95

95.5

96

96.5

97

97.5

98

98.5

99

99.5

100

1/0/19000:00

1/20/19000:00

2/9/19000:00

2/29/19000:00

3/20/19000:00

4/9/19000:00

4/29/19000:00

5/19/19000:00

6/8/19000:00

6/28/19000:00

7/18/19000:00

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: DHDS/HGU Job No: 6435 APC Scoping Study Report

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SECTION VIII APC SCOPING STUDY REPORT FOR DHDS/HGU (Unit no.60/61)

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: DHDS/HGU Job No: 6435 APC Scoping Study Report

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CONTENTS

Chapter 1.0 Introduction Chapter 2.0 Advanced Process Control Strategy Design

2.1 APC Design Basis 2.1.1 Overview 2.1.2 Advanced Control Objectives 2.1.3 Process Unit Definition 2.1.4 APC Design Issues

2.2 Advanced Control Strategies 2.3 Additional Field Instruments 2.4 Observations on the existing field instrumentation

Chapter 3.0 Benefit Estimation 3.1 Basis 3.2 Product Specification 3.3 Product destination Chart 3.4 Economic Data 3.5 Estimated Benefits

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: DHDS/HGU Job No: 6435 APC Scoping Study Report

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1.0 INTRODUCTION

This section presents the Advanced Process Control Scoping Study Report for DHDS/HGU Units of HPCL, Visakh Refinery. This report incorporates the information collected during kick–off meeting, HPCL response to EIL questionnaire on unit operation and operating & supporting laboratory data provided for scoping study. This section is divided into the following chapters. Chapter 1: Introduction Chapter 2: Advanced Process Control Strategy Design This chapter describes the APC design basis, process and control overview of the unit and the proposed APC strategies for the unit. Chapter 3: Benefit Estimation This chapter provides the details of expected benefits accruable due to APC.

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2.0 ADVANCED PROCESS CONTROL DESIGN 2.1 APC Design Basis 2.1.1 Overview This section presents the design basis for the Advanced Process Control applications for the

DHDS/HGU unit. The objectives for advanced control, equipments considered for advanced control and major specific advanced control design issues are presented in this section.

2.1.2 Advanced Control Objectives

The overriding objective of the advanced controls is to increase the overall unit profitability. To achieve this, the advanced control system for DHDS/HGU is designed to meet the following specific objectives: • Maximise unit throughput subject to unit limitations • Stabilise the unit operation • Maximise sweet diesel subject to Sulfur specification • Maintain steady product specifications • Optimise Hydrogen utilisation • Minimise utility requirements (fuel, steam, cooling water etc) • Maintain stable Reactor operation by providing means to control Reactor bed pressure

and temperature To meet the above objectives Advanced control strategies are proposed in section 2.2.

2.1.3 Process Unit Definition

DHDS: The scope of the advanced control project includes definition of the advanced controls for Reactor section, Hot and Cold sections, Fractionation section and Stabiliser section. The unit equipments covered by this study includes the following:

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Feed Section • Feed filter package (60-X-01) • Feed Surge Drum (60-D-01) • Feed preheat train (60-E-01A/B/C/D & 60-E-02) • Feed Heater (60-F-01) Reactor section • Reactor (60-R-01) • Recycle gas compressor (60-K-02) • Make-up gas compressor (60-K-01) Separation , Absorption and Stabilization Section • Cold HP Separator drum (60-D-02) • Stripper (60-C-01) • Stripper/Stabilizer reflux drum (60-D-10) • Naphtha Stabilizer (60-C-02) HGU The scope of the advanced control project includes definition of the advanced controls for Pre Desulfurization Section, Feed Desulfurization Section, Reformer, PSA section. The unit equipments covered by this study includes the following: Pre Desulfurization Section • Naphtha Superheater (61-F-01) • Hydro desulfurizer-I (61-R-01) • Naphtha Separator (61-D-02) • Naphtha Stripper (61-C-01) Feed Desulfurization Section • Hydro desulfurizer-II (61-R-11) • DeSulfurizer Reactors (61-R-12A/B) Reformer • Mixed feed Superheater (61-CE-12) • Reformer (61-F-11) • Process gas boiler (61-E-12)

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PSA section • HT Shift Reactor (61-R-13) • Process condensate Separator (61-12/13) • PSA unit (61-M-12)

2.1.4 APC Design issues

Several issues that significantly influence the design and implementation basis of the advanced controls are discussed here. DHDS & HGU

Feed Maximization

One of the main objectives of APC design is to maximise the DHDS unit throughput subject to unit constraints. As the feed rate of DHDS is increased, the major constraints expected to be Hydrogen unit capacity. Presently, the unit pressure i.e. Cold Separator pressure is controlled by controlling the hydrogen make-up gas flow. Since the pressure control loops are relatively fast, the control of make up hydrogen is left to the base level control. So make up H2 flow and recycle H2 flow are taken as DVs in the controller. If the hydrogen to hydrocarbon ratio is limiting, the DHDS feed flow rate (MV) is prevented from further increase so that the hydrogen to hydrocarbon ratio constraint is respected. Feed maximization objective shall work in tandem with Sulfur removal and reactor beds inlet temperature targets also. Single large controller structures will effectively handles these highly interactive process variables of the DHDS unit. Other constraints in feed maximization are Cold separator, Stripper column and associated equipment capacities. Desulphurisation control Desulphurisation is a function of several variables – reactor bed inlet temperatures, pressure, feed quantity, recycles hydrogen purity and catalyst activity. With unit pressure (Cold separator ovhd.) being controlled, hydrogen purity being relatively constant and catalyst activity changing very slowly, reactor beds inlet temperature, feed rate and quality are the primary variables that effect desulfurization. Hence the variables that shall be manipulated to achieve desired sulfur removal are reactor beds inlet temperatures and unit feed rate. Whenever there is a change in the feed quality or constraint limits, it will affect the overall desulphurisation and thus amount of sweet diesel produced.

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Reactor WABT (weighted average Bed Temperatures) Control Reactor WABT is an important variables affecting the desulfuization and conversion in the reactor. The control problem for the reactor is to maintain reactor beds inlet temperatures by manipulating the Reactor heater COT and hydrogen quench flows to bed 2 & 3. Reactor WABT ( bed temperatures control) shall work in association with feed maximization and desulphurisation control. A single large controller enables effective handling of these multiple inter-linked control objectives. Product Quality Control

The product qualities shall be controlled to maximize yield of valuable products like Stabilized naphtha and Sweet diesel subject to quality constraints. The product qualities are measured by lab analysis. In order to provide on-line values of these products qualities for the controller, inferred property calculations shall be performed for these product quantities based on plant operating data and lab. Major properties that need to be inferred are Sweet diesel flash, 95% distillation and stabilized naphtha FBP.

2.2 Advanced Control Strategies

This chapter describes the advanced control strategies proposed for the DHDS and HGU. The general objectives for these advanced control strategies are outlined in section 2.1.2. In the subsequent sections of this chapter the functional design of these advanced control strategies are described. These objectives will be pursued subject to process and equipment constraints. The controller will be designed so that if not all the constraints can be simultaneously respected it will honour the most important ones, such as those related to unit safety and process equipment.

It is envisaged that one controller will be developed to cover the DHDS and the HGU. The strategy for the DHDS unit will be to maximize feed rate and maintain severity subject to a WABT limit. There may be cases when the refinery may choose to reduce feed rate, in that case, it will be possible to operate at lower reactor temperatures, which enables longer catalyst life.

Since the HGU will be part of the same controller, it will be possible to modulate hydrogen production as and when the DHDS unit feed rate and feed sulphur content changes. The HGU controller will be set up such that the hydrogen network pressure is maintained and

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production matches consumption. The HGU constraints such as methane slippage and safety limits such as skin temperatures etc. will also be maintained within limits.

2.2.1 DHDS & HGU Multivariable Controller

The DHDS & HGU multivariable controller implementation stabilizes the process operation and provides tighter control to operating targets. The controller reduces the variability of the process variables, permitting operation closer to constraints, which results in increase in unit profitability.

Multivariable controller structure Table 2.1 lists the manipulated variables (MVs), controlled variables (CVs) and Disturbance variables (DVs) for the DHDS & HGU multivariable control strategy. Table 2.1:

S.No. Type Tag name Description 1 MV 60FC1201 DHDS feed 2 MV 60TC1501 Reactor Heater (60-F-01) COT 3 MV 60TC1515 Reactor (60-R-01) Bed 2 I/L temperature 4 MV 60TC1524 Reactor (60-R-01) Bed 3 I/L temperature 5 MV 60PC1601 Cold Separator vapor line pressure 6 MV 60FC1902 Recycle gas to DHDS feed 7 MV 60FC2202 Stripper (60-C-01) Reflux flow 8 MV 60FC2101 Stripping Steam to Stripper (60-C-01) 9 MV 60PC2201 (60-C-01) Stripper top pressure 10 MV 60TC2301 Stabiliser (60-C-02) bottom temperature 11 MV 61FC003 HGU feed flow 12 MV 61FC152 Desulfurised naphtha feed flow to reformer 13 MV 61FC151 Steam flow to reformer 14 MV 61FC211A Fuel Naphtha flow to reformer burners 15 MV 61FC212 Combustion air to reformer 1 CV 60FC1201.OP DHDS Feed CV opening 2 CV Calc tag Makeup H2 to HC ratio in DHDS 3 CV

Calc tag Reactor Heater (60-F-01) maximum skin temp.

4 CV 60PC1403.OP Reactor Heater(60-F-01) FO CV opening

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S.No. Type Tag name Description 5 CV 60PC1401.OP Reactor Heater (60-F-01) FG CV opening 6 CV Calc tag Reactor (60-R-01) Bed 1 Maximum

temperature 7 CV Calc tag Reactor (60-R-01) Bed 2 Maximum

temperature 8 CV Calc tag Reactor(60-R-01) Bed 3 Maximum

temperature 9 CV 60TC1515.OP Reactor (60-R-01) Bed 2 I/l temperature

CV opening 10 CV 60TC1524.OP Reactor (60-R-01) Bed 3 I/L temperature

CV opening 11 CV 60PC1601.OP Cold Separator vapor line pressure CV

opening 12 CV 60LC1602.OP Cold separator level CV opening 13 CV 60LC2101.OP DHDS Stripper bottom level CV opening 14 CV 60LC2301.OP Naphtha Stabiliser bottom level CV opening 15 CV 61TC132 Hydrogen unit reformer COT 16 CV Calc tag Reformer steam/ Hydrocarbon ratio 17 CV 61AI Reformer flue gas O2 18 CV Methane slippage from Reformer 19 CV 61PC205 Hydrogen network pressure 20 CV Calc Tag Hydrogen loss to Flare/fuel gas 21 CV Calc Tag Sweet diesel flash point 22 CV Calc Tag Sweet diesel 95% distillation 23 CV Calc Tag Stabilized naphtha FBP 1 DV Recycle gas compressor 60-K-02 speed 2 DV 60FC2201 Stabiliser feed flow 3 DV 60TI2303 Stabiliser feed temperature 4 DV 61FI201 Hydrogen Product flow

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2.3 Additional Field Instruments

No additional field instruments required 2.4 Observations on existing field instrumentation

Based on the KOM discussions and data analysis the following instruments/equipments performance are found not satisfactory and need attention for their availability for successful commissioning of APC 1. As the Cold Separator pressure controller is not functioning properly, it has been

removed from cascade mode and hydrogen make-up gas compressor flow is controlled in auto to maintain the same at present. As the system pressure is main parameter this problem needs to be attended and the pressure controller to be kept in cascade.

2. DHDS furnace Oxygen analyser is not functioning due to which heater combustion control is switched off at present.

3. Recycle gas compressor (60-K-02) anti surge control is not functioning properly leading to fluctuation in recycle gas flow DHDS feed. This needs to be attended

4. The three way valve on the Stripper bottoms going to Stabilizer reboilers is kept wide open to avoid vibration in the line.

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3.0 BENEFIT ESTIMATION 3.1 Basis

The benefit estimation using the operating and lab data is based on the product specification as given in 3.2, product destination chart as given in 3.3, and economic data as given in 3.4.

3.2 Product specifications

Table 3.1: Product specifications for DHDS Product Property Specification Naphtha H2S Absent Sweet Diesel Sulfur, wt% 0.2 wt%

0.05 wt% Table 3.2: Product specifications for HGU

Product Yield (wt%) H2 33% of feed

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3.3 Product destination Chart Table 3.3 : Product destination chart for DHDS & HGU

DESTINATION →

PRODUCT ↓

H2 FG Naphtha DIESEL H2S Steam

H2 61FT201 60FI1703

FG 60FI2503

Naphtha 60FI2301

Diesel 60FI2401

H2S 60FI2903

Steam 61FI5203

BOLD indicates preferred destination

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3.4 Economic Data

TABLE 3.4 : FEED / PRODUCT PRICES

Basis: April’03 to February ’04 1st fortnight prices

- FUEL OIL CALORIFIC VALUE =10000 KCAL/KG - DHDS DIESEL FLASH SPEC IS 66 oC

Sl. NO. STREAM NAME SU RS/SU FEED 1. CRUDE INCENTIVE MT 420 (Net of variable

cost) 2. FCCU FEED INCENTIVE MT 1824 (Net of variable

cost) PRODUCTS 3. LPG MT 16567 4. PROPYLENE MT 21939 5. NAPHTHA (SRN) MT 12545 6. KERO KL 10785 7. ATF KL 11797 8. DIESEL (HN, LD,HD, VD,

LCOI, LCOII, HCOII, VBGO) KL 11826

9. CRN KL 11622 10. VGO KL 11235 11. FO (SR, SLOP, LSHS, VB

TAR) MT 9677

12. H2 KG 40 UTILITIES FUEL OIL MT 9677 STEAM MT 829

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3.5 Estimated Benefits

The estimation of benefits resulting from implementing APC for DHDS & HGU is based on the analysis of the existing operation and a projection of operation with APC. The data during the period Jan 1-31st, 2004 provided by HPCL was considered for benefit analysis. Out of this, data corresponding to following periods were not considered for the reasons given below. S.No. Period were data not considered Reason 1 1/11 to 9/11 6hrs No feed flow data 2 13/11 9-11hrs, 19/11 12&13hrs -do- 3 25/11 9hrs to 1/12 -do-

4 13/11 2-8 hrs Stab. Naphtha H2S content (PPM, wt) abruptly high

The data selected for benefit estimation is meeting the product quality spec (sweet diesel sulphur). Based on the objectives outlined in section 2.1.2, the benefits due to APC are estimated on the following heads: a) Hydrogen saving benefit

The benefit is estimated based on reduction of standard deviation in hydrogen consumed (kgs) per ton of feed during the benefit analysis period. The minimum hydrogen consumed (kgs) per ton of feed during the benefit analysis period (3.74) has been taken as the specification limit in benefit calculation.

The prices of various products for benefit estimation are taken from Economic data given in Table 3.4.

Client: HPCL,Visakh Document No: ACO-056 Project: Scoping and Requirements Study for APC Unit: DHDS/HGU Job No: 6435 APC Scoping Study Report

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HGU: Reformer feed flow, Kg/hr

2500

3000

3500

4000

4500

5000

11/7/03 0:00 11/9/03 0:00 11/11/030:00

11/13/030:00

11/15/030:00

11/17/030:00

11/19/030:00

11/21/030:00

11/23/030:00

11/25/030:00

11/27/030:00

Date-Time

HGU: H2 Product flow, Kg/hr

600

700

800

900

1000

1100

1200

1300

1400

11/7/20030:00

11/9/20030:00

11/11/2003 0:00

11/13/2003 0:00

11/15/2003 0:00

11/17/2003 0:00

11/19/2003 0:00

11/21/2003 0:00

11/23/2003 0:00

11/25/2003 0:00

11/27/2003 0:00

Date-Time

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HGU: Steam to Carbon ratio

3

3.5

4

4.5

5

5.5

6

11/7/20030:00

11/9/20030:00

11/11/20030:00

11/13/20030:00

11/15/20030:00

11/17/20030:00

11/19/20030:00

11/21/20030:00

11/23/20030:00

11/25/20030:00

11/27/20030:00

Date-Time

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HGU: FDS Rxr (R12) O/L temp, Deg C

300

305

310

315

320

325

330

335

11/7/20030:00

11/9/20030:00

11/11/20030:00

11/13/20030:00

11/15/20030:00

11/17/20030:00

11/19/20030:00

11/21/20030:00

11/23/20030:00

11/25/20030:00

11/27/20030:00

Date-Time

HGU: H2 PDT Purity, VOL %

99.4

99.5

99.6

99.7

99.8

99.9

100

11/10/20035:00:00

AM

11/12/20035:00:00

AM

11/14/20035:00:00

AM

11/16/20035:00:00

AM

11/18/20035:00:00

AM

11/20/20035:00:00

AM

11/22/20035:00:00

AM

11/24/20035:00:00

AM

Date-Time