Staatsolie Annual Report 2017

Confidence in Our Own Abilities
18
Downstream
Refinery & Marketing Operations
Production of high end fuel products enjoyed
significant year-on-year improvement. In 2017, we
began to reap the rewards of the significant work
we undertook in 2016 and early 2017 to improve
both our processes and people skills at the
refinery. Higher reliability was realized by adding
additional robustness to equipment to better cope
with irregular power supply and replacing parts
of the Pressure-Swing-Absorption control valves.
Securing higher reliability and therefore higher
availability led to higher utilization and production.
Average availability across the year was 88%
utilization against a target of 79% of the installed
capacity for high end products.
Early in 2017 we had a planned stop to replace the
hydrogen unit catalytic converter. Subsequently,
the emphasis in day-to-day operations was on
increasing safety awareness, training staff and
process optimization to reduce costs. In the last
week of the year we also undertook a capacity test
on the hydrocracker unit, with success in running
the hydrocracker at 100% capacity for 72 hours
while maintaining product quality. We will build on
this successful test in 2018.
Overall, our refinery teams’ efforts across 2016
and 2017 resulted in the production of 2.7 MMbbls
high-end products (diesel and gasoline), compared
to 1.8 MMbbls in 2016. With the significant work we
have undertaken to date and the improvements we
have made in our processes, we remain confident
we will reach our target of 10,500 bbls of high-end
products a day by 2020.
Total sales of petroleum products including trading
and after elimination of intra company sales
amounted to 5.82 MMbbls in 2017, a decrease
of 1.2% compared to 2016. In 2017 54% more
Staatsolie high-end products (gasoline and diesel)
were sold compared to 2016, resulting in higher
gross revenues.
Total sales
2017 2016
Diesel 1,985,878 1,416,296
Gasoline 593,257 357,586
Fuel Oil 3,221,224 4,249,380
Asphalt 24,425 36,499
Total 5,824,784 6,059,761
A higher production of high-end products resulted
in a lower fuel oil production.
Staatsolie Power Company Suriname N.V.
Across 2017 SPCS achieved 100% availability and
reliability of electricity delivery to the Staatsolie
refinery, there were no refinery outages as a result
of electrical supply issues.
SPCS delivered 335,056 MWh to the grid and
90,500 MWh to the Staatsolie refinery at an
average load of 10.3 MW and 26,042 tons of
process steam (2016: 82,000 MWh of electrical
energy and 37,165 tons of process steam). The
low utilization of the process steam generating
capacity is mainly due to the aforementioned
engine breakdowns as these units are equipped
with exhaust gas steam boilers.
SPCS commissioned a reliability improvement
program in October 2017, aimed at maintaining
reliability of supply to the refinery and improving
the availability of power to the national grid. To
add additional robustness to our processes, SPCS
is currently going through the ISO9001:2015
certification process. The certification audit is
scheduled for July 2018.
Staatsolie is in the process of securing the power
supply for upstream crude oil production. Plans are
to build a 12 MW power plant at the upstream, which
we anticipate will be accommodated within SPCS.