petrojam final

8/10/2019 Petrojam Final

1/22

Running Head: Saving Jamaicas Energy Needs 1

Northern Caribbean University

College of usiness and Hos!itality "anagement

#e!artment of usiness $dministration and Hos!itality "anagement

Sub%ect: &uantitative usiness $nalysis

Research 'ro%ect: 'etro%am (imited

're!ared for

)ir*land $nderson

're!ared by

Natoya Smith +# , 11-..1//

0incent (eslie +# , 11-/123

)ati4$nn 5reen +# , 61--2/.

Sharon 7illiams +# , 61-8.9.2

)eisha rancis +# ,11-811/6

#ecember -/; .--3


2/22

Running Head: Saving Jamaicas Energy Needs .

History of 'etro%am

'etro%am (imited; Jamaica; a statutory body created and ?holly o?ned by

the 5overnment of Jamaica@ 'etro%am ?as established in 132. ?hen the 5overnment of

Jamaica !urchased the Esso )ingston Refinery; ?hich had been built; and o!erated by

Esso since "arch 1389@ 'etro%am su!!lies Jamaica ?ith a full range of domestic;

trans!ortation and industrial !etroleum !roducts@ +n addition; a!!roAimately 1-B of total

sales volume is eA!orted@ EA!ort sales in .--/ eAceeded US918 "illion@

+n .--/; ?ith a ca!ital base of US2/"illion; 'etro%am generated revenues in

eAcess of US1@9 illion; ?hilst fulfilling its mission Dto su!!ly !etroleum !roducts at

internationally com!etitive !rices and uality; ?hile acting at all times in the best interest

of its sta*eholdersD@ Fhe com!any;

JetIFurbo uel; Heavy uel il; $s!halt; (iuid 'etroleum 5as; and $utomotive #iesel

il@


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'etro%am also o!erates a laboratory ?hich !rovides uality control and

certification services for !roducts manufactured and im!orted by the refineryK laboratory

service is also !rovided to Jamaican businesses and the scientific community@

Staffing

Fhe "anaging #irector re!orts to the oard of #irectors; and is assisted by his

management team of eight =/> functional managers@ Fhe com!any is staffed by

a!!roAimately .- full4time em!loyees ?ho are de!loyed to the de!artments of inance

L $ccounts; (ogistics L "ar*eting; Human Resource L #evelo!ment; Safety L

Environment; Fechnical Services; 'roduction and Strategic 'lanning@'etro%am maintains

high standards for uality; health and safety; and environmental !rotection; and is

committed to delivering high uality !roducts on schedule to the com!lete satisfaction of

its customers@

'etro%am


4/22


'etro%am Shi!!ing manages the vessels used in its marine o!erations@ 'etro%am

o?ns a tugIbarge and charters vessels as reuired to effect movement of crude and

finished !roducts into the country@ Fhe vessels are also used to ma*e round island

movements ?ith !roducts for 'o?er !roducers and to 'etro%am

Fhe "inistry of +ndustry; Fechnology; Energy and Commerce has mandated the

use of ethanol in gasoline in the Jamaican mar*et by .--2@ Fhe results of a !ilot study

conducted in revealed that cars in the mar*et are suitable for E41-@ E41- ?ill be

im!lemented on a !hased basis ?ith full im!lementation eA!ected by $!ril .--3@


5/22

Running Head: Saving Jamaicas Energy Needs

Fhe long term goal is to blend ethanol !roduced from local sugar cane; as this ?ill

!rovide reliable source of ra? material in the medium to long term; and ?ill also benefit

Jamaica


6/22


133-436

'etroleum +ndustry deregulated

1333 Joint 0enture arrangement ?ith $ir'; resulted in the formation of J$RS

1333Embar*ed on !hasing out of the Fo! (oading System and im!lementation ofottom (oading System ?hich ?as fully im!lemented in .--.

.--- 'hase out of lead in all gasoline !roducts

.--.+m!lementation of a com!rehensive 'rocess Safety "anagement System

=according to SH$ standards>

.--9US1- "illion Joint 0enture agreement ?ith C+"EM of raGil; to refurbish theethanol !lant and resume !roduction of ethanol

.--9US6 "illion u!grade of the refinery


7/22

Running Head: Saving Jamaicas Energy Needs /

7ho 7e $re

"ission

Fo refine and su!!ly !etroleum !roducts at internationally com!etitive !rices and uality;

acting in the best interest of Jamaica and all other sta*eholders@

0ision

Fo be the 'etroleum !roduct su!!lier of choice; best at ?hat ?e do@

0alues

Commitment to Health; Safety and Environment

Com!ly ?ith design and o!erating standards

+mmediately address Health; Safety and Environment 0iolations

Re!ort +ncidents and haGards !rom!tly

Com!ly ?ith !ersonal !rotective eui!ment and good house*ee!ing !ractices

7illingly serve in Health; Safety and the Environment !rogrammes@

Customer ocus

e accessible to the customer

e sensitive to the customers needs

Effectively communicate and res!ond in a timely manner

Routinely see* feedbac* to im!rove service

EAcellence

e thorough; accurate and timely in our ?or*

#evelo! and continuously im!rove our ca!abilities

+ntegrity

Sho? res!ect for time; !eo!le and !ro!erty

e honest; fran* and trans!arent ?ith others

e fair and even handed ?ith others

!erate to the highest ethical standard

Feam?or*

Communicate o!enly and effectively ?ith each other

ollo? through ?ith commitments

Su!!ort organiGational goals and ob%ectives

e committed to the success of the com!any

Share *no?ledge


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Encourage !artici!ation of others

RecogniGe and encourage !erformance and achievement

'roducts L Services

(iuefied 'etroleum 5ases

(iuefied !etroleum gas =('5> is the generic name for commercial !ro!ane and

commercial butane@ 'etro%am su!!lies both grades to the domestic mar*et@ Fhese are

hydrocarbon !roducts derived from the !rocessing of crude oil@ Fhe !rocess of light end

fractioniGation s!lits the na!htha cut =from the crude oil> into !ro!ane and butane =('5>

for gasoline blending@

Commercial 'ro!ane !redominantly consists of hydrocarbons containing three

carbon atomsK ho?ever !ro!ane =C6H2> is the main com!onent@ Commercial utane

!redominantly consists of hydrocarbons containing four carbon atoms mainly n4 and iso O

butanes =C9H1->@ oth have the s!ecial !ro!erty of becoming liuid at atmos!heric

tem!erature if moderately com!ressed; and reverting to gases ?hen the !ressure is

sufficiently reduced@ Fhis liuid state is an advantage in trans!orting and storing these

!roducts@ +n the liuid state they are roughly .- times as dense as they are ?hen they are

gases@ utane is usually su!!lied to customers in cylinders@ 'ro!ane can be su!!lied in

cylinders or in bul* for storage in tan*s at the customers !remises@

+ndividual ('5 !roducts have distinct uses@ or eAam!le; !ro!ane is ?idely used

as a fuel in the commercial and industrial sectors; ?hile utane is mainly used as coo*ing

gas for residential users@

"otor 5asoline

Fo !roduce motor gasoline the na!htha cut is de4ethaniGed; de4butaniGed and s!lit

?ith light and heavy virgin na!hthas to !roduce motor gasoline@ 'etro%am has eliminated


9/22


lead from its gasoline since .---; and currently su!!lies t?o grades of unleaded gasoline:

regular =2/R> and !remium =3-R>@ "otor gasoline is chiefly used to fuel automobiles and

light truc*s for road use@ Smaller uantities are used for off4 high?ay driving; boats;

recreational vehicles; and various farm and other eui!ment@

)erosene

)erosene falls ?ithin the light distillate range of refinery out!ut that includes

some diesel fuel; %et fuel; and other light fuel oils@ Fhe *erosene side stream is hydro4

fined and run do?n to tan*age as dual !ur!ose *eroIturbo fuel@

)erosene is used for in Jamaica mainly as a coo*ing fuel and in lam!s@

Jet uel

Fhe Jet uel sold at our air!orts is a *erosene4based fuel !roduced in the same

?ay as )erosene under stricter uality reuirements for use in aircrafts@

$utomotive #iesel il@ $uto #iesel il is !roduced by blending a !art or the entire

*erosene side stream ?ith the gas oil side stream@ #iesel fuel is used to !o?er diesel

engines in buses; truc*s; automobiles; and other machinery@ +t is also used to fire

industrial and electric utility boilers@

Heavy uel il

Heavy fuel oil other?ise called residual fuel oil is com!rised mainly of

atmos!heric !i!e still bottoms blended ?ith heavy virgin na!htha and vacuum gas oil to

!roduce the final heavy fuel oil !roduct@ Fhe !rimary mar*et for this !roduct is the

electric utility com!anies ?ho use residual fuel oil to generate electricity@ "uch of the

ca!acity for electricity generation is oil4fired; so !etroleum use by utilities is eA!ected to


10/22

Running Head: Saving Jamaicas Energy Needs 1-

increase along ?ith electricity demand@ 'resently; this sector de!ends on !etroleum for

about 32B !ercent of its total energy reuirements@

Residual fuel oil is also used as bun*er fuel =fuel for shi!s> and industrial boiler fuel@

$s!halt

Fhe vacuum !i!e still !roduces t?o grades of !enetration as!halt from the

atmos!heric !i!e still bottoms@ 'etro%am manufactures t?o grades of 'enetration as!halt

O 8-I/- and 2I1--@ 7e also manufacture RS41 and CRS41 Emulsion as!halts ?hich are

by!roducts of the !enetration as!halt@ $s!halt is used in the construction of roadsK on

roofs as a sealant and to ?ater !roof surfaces@

Services

(aboratory !erations

Fo ensure that !roducts are consistent ?ith s!ecifications; the laboratory tests and

analyses sam!les from all !rocess unit streams and blended !roducts@ Fhe results of these

must meet the refinery target s!ecification and our customer reuirements@ Each !roduct

batch is certified by the laboratory before being made available to 'etro%am; the +nstitute of 'etroleum Standard =+'> U@)@; and others@


11/22


'etro%am has the ca!ability to analyGe ?aste ?ater; ethanol and the follo?ing !etroleum

!roducts butane; !ro!ane; *erosene; turbo Jet fuel; as!halt; diesel oils; residual fuel oil;

motor gasoline; and lubricating oils@ Fhe !recision and accuracy of 'etro%am testing is

verified by com!aring ourlaboratory test results ?ith those of certified !etroleum labs in

the United States and Canada@

Fest Eui!ment

(isted belo? are some of the highly s!ecialiGed tests ?hich 'etro%am is eui!!edto !erform:

ctane Festing

Fhese tests are carried out ?ith t?o $SF"4CR =$merican Society for Festing

"aterial and Coo!erative uels Research> engines ?hich rate motor gasoline to

determine Research ctane Number =RN> and "otor ctane Number ="N>

res!ectively@ Road ctane at the gas !um! is the average of RN and "N@

'recision and re!eatability of data are maintained at high levels by good maintenance and

regular standardiGation of engines@ "easurement of octane level is critical for ensuring

that there is o!timum !erformance of !etrol engine driven motor vehicles@

Chromatogra!hy

Fhe (ab has a com!lement of seven gas chromatogra!hs ?hich are used in the

analysis of (iuefied 'etroleum 5ases =('5>; Hydrogen; "ethyl Fertiary utyl Ether

="FE> and enGene in 5asoline; and Ethanol@ Fhese units are fitted ?ith either thermal

conductivity of flame ioniGation detector@

Chemical $nalysis

+nstrumentation used for analyses includes an $tomic $bsor!tion

S!ectro!hotometer and a Rotating #isc Electrode Emission S!ectro!hotometer; M4ray


12/22

Running Head: Saving Jamaicas Energy Needs 1.

luorescence $nalyGer; for metal analyses@ 'etro%am also has Ultra 0iolet Scanning

S!ectro!hotometer for the analysis of organic com!ounds; boiler feed and ?aste ?ater@

Random 5asoline Fests

Fhe laboratory !erforms tests for gasoline uality and octane levels for the ureau

of Standards and; u!on reuest; from the industry@ Fhese results are used by the ureau of

Standards; "inistry of +ndustry Commerce and Fechnology; and the 'etroleum "ar*eting

Com!anies to verify that the uality of !etroleum !urchased by the consumer is not

contaminated in transit to them@

+ndustrial Hygiene

Fhe laboratory is eui!!ed to monitor health haGards in the ?or*

environment@ 'etro%am has s*illed !ersonnel and eui!ment to conduct the follo?ing

analysis:

noise level meters

radiation monitor

micro?ave radiation detector

'oisonous gas detection; inclusive of Hydrogen Sul!hide Hydrocarbon

enGene

Sul!hur #ioAide

Carbon monoAide and other !oisonous gases ty!ical

to the !etroleum industry@

7e also have !ortable electronic monitors for Aygen measurement and heat stress@

"onitoring light levels through illumination surveys is also done at 'etro%am@

Fhe (aboratory Feam

Fhe laboratory staff is continuously being trained in ne? &uality $ssurance

!rocedures to ensure future accreditation ?ith the +S 1/-. &uality "anagement

System@ Fhis !rogramme of continuous im!rovement in the &uality $ssurance


13/22


management for the 'etro%am (aboratory has !rovided more reliable service to both

internal and eAternal customers of the (aboratory; and results in significant cost savings

to the Refinery@

Fhe )ey enefits of Standards $ccreditation are:

'ositive +nternational and (ocal recognition

+m!roved Staff S*ills

+m!roved &uality !ractices

5reater !roductivity and minimiGation business interru!tion through uality

failure@

(aboratory Services

$s the sole !etroleum laboratory in Jamaica; 'etro%am offers laboratory facilities

for !roduct testing and analyses to Jamaican businesses and the scientific community@

(aboratory services are offered for a fee@ Results are conditional and are based on the

uality of sam!les submitted to the laboratory and the limits of the tests@


14/22


(inear 'rogramming

Fotal 5as Station (imited located on S!ur Free Hill; "anchester is !art of a franchise of

o!erators o?ned and o!erated by 'hillane +n*@ Fhe com!any currently sells t?o grades of

!etroleum: E =1-> and E =3->@ Each grade consists of three com!onents referred to as C1;

C.; and C6@ Fhe maAimum uantities available for each com!onent and cost !er barrel

are as follo?s:

Component Maximum

Barrels/per day

C1 68--C. 8---

C6 68--

Fhere is a maAimum barrel 68-- of C1 available; 8--- of C. and 68-- of C6@ Each

barrel of E1- reuires . litres of C1; 6litres of C1 for E3-@ Each barrel of E =1-> reuires

litres of C. and E =3-> reuires 9 litres of C.@ inally; each barrel of E =1-> reuires 9

litres C6 and =E3-> reuires . litres of C6@

Selling !rice for each barrel of E=1-> is .6 and .- for E=3->@ Fhe com!any ?ants to

!roduce at least .-- barrels of each grade of !etroleum@ #etermine the best !roduct miA

that maAimiGes revenue@


15/22


Net?or* "odel

$ salesman for 'etro%am (imited travels each ?ee* from )ingston to "anchester@ Fhe

Fravel time in hours bet?een !arish along the high?ay is sho?n along each branch in the

follo?ing net?or*@

$@ #etermine the shortest route from )ingston to each of these 5as Stations in the

net?or*@

@ #evelo! a minimal s!anning tree for this !roblem@

Node Branch Shortest Time

1 14. . hours P146 . hours

149 9 hours

1; . 146 . hours P

149 9 hours

2

5 6

4

3 1


16/22


.4 9@ hours

1; .; 6 149 9 hours

.4 9@ hours

649 .Q hours P

1; .; 6; 9 94 hours

948 9@ hours P1; .; 6; 9; 8 94 hour P

84 /@ hours

1;.;6;9;;8

Fhe minimal s!anning tree is as follo?s:

$@ Fhe closest unconnected node to 1 is node .@

@ Fhe closest unconnected node to 1 and . is node 6@

C@ Fhe closest unconnected node to 1; . and 6 is node 9

#@ Fhe closest unconnected node to 1; .; 6; and 9 is node 8

E@ Fhe closest unconnected node to 1; .; 6; 9; and is node

3

4

6

1

2

5


17/22

Running Head: Saving Jamaicas Energy Needs 1/

The minimal spannin tree !ollo"s# the shortest total distance is 6 hours$

$!!endices

Corporate structure


18/22


"anagement Structure

7inston (@ 7atson"anaging #irector

Safety; Environment L &uality

(eon (@ Jarrett="anager>

Fhe safety team concentrates on haGard recognition and mitigation for natural events;such as hurricanes and storm surges as ?ell as; oil and chemical s!ills; fires fumes andcontamination of ?ater and air@ Fhe team is also res!onsible for the o!erations of thelaboratory and our security systems@

Human Resource; #evelo!ment and $dministration

$ndrea ent="anager>


19/22


Fhe strength of the 'etro%am team is the accumulated years of eA!erience of its highlytrained engineers; technicians; !roduction and !etroleum !rocessing !ersonnel@ Fhe HR#and $dministration team members are involved in recruiting; training; !ublic relations;com!liance and records management and library services to staff@

Strategic 'lanning

$ndrea "@ Reid="anager>

Fhe de!artment is res!onsible for the com!anys cor!orate business !lan; monitoringcom!any !erformance and defining develo!ment of the com!any consistent ?ith thecor!orate !lan@

(ogistics and "ar*eting

"ichael $@ He?ett="anager>

Fhe de!artment is res!onsible for the !urchase of crude and finished !roducts from ouroverseas su!!liers and the sale of our finished !roducts to the local and overseas mar*et@$ !art of the mar*eting arm focuses on bun*er sales to vessels at sea@

'roduction


20/22

Running Head: Saving Jamaicas Energy Needs .-

Felroy $@ "organ="anager>Fhe de!artment is staffed by a team of technicians and engineers ?ho are res!onsible forthe managing the o!erations of the hydro s*imming refinery@

Fechnical Services

'aul (ue (im="anager>

Fhe de!artment is res!onsible for the o!erations of maintenance o!erations on the !lant

and general u!*ee! of the grounds@inance and $ccounting

Carlene $@ Evans=Chief inancial fficer =$cting>>

Fhe accounting team manages the com!anys finances and monitors the inventory for thevarious !roducts@


21/22

Running Head: Saving Jamaicas Energy Needs .1

'rice +ndeA

Current 'rice +ndeA =I(>

11/26/2%%&E1-=2/>

E1-=3->

$s!halt #iesel )erosene utane 'ro!ane

EA4Ref'rice

6@6-2 9@3/8 -@228. 9@13. [email protected] [email protected] [email protected]

FaA 18@1-81 18@9/3. -@6/-6 1@919 8@-128 -@-63. -@-63.

Fotal 83@8683 /1@-/82 [email protected] 83@8-3/ 8-@1-3 91@3. [email protected]


22/22

Running Head: Saving Jamaicas Energy Needs ..

Reference

Faylor; 7@@ =.--/>@Introduction to Management Science@ U!!er Saddle River; Ne?Jersey: 'rentice Hall@Htt!:II???@google@com
http://www.google.com/http://www.google.com/

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