CHAPTER VII

PROJECT CONSTRUCTION AND EXECUTION PLAN

This chapter contains the project management processes including

initiation, planning, production or execution, monitoring and controlling and

closing. Quality control, working schedule, control management system and risk

management.

I. Preliminaries

This comprises the initiating processes such as the nature and scope of the

project which includes the planning, feasibility study, basis of design stage, and

design layout stage.

A. Planning Stage

The planning stage will include the identification of the phases, activities,

and tasks needed to refine crude oil into more useful products. All key project

controls will be analyzed including the business requirements, operations, budget

allocated for the construction and operation and the project commission.

B. Basis of Design Stage

Basis of design is developed by the project requirements. This stage

describes the technical approach planned for the project as well to design

parameters that will be used. Basis of design stage ensures that the project

requirements will meet the standards conditions needed.

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C. Design Layout Stage

Design layout stage includes the detailed construction plans,

manufacturing process and uses of the different equipment and machinery.

Specification of the product, operating factors, material and energy balance are

going to be considered.

II. Construction Management

The construction of the refinery is considered consisting complete design,

having civil works, mechanical works, electrical works and making a site

development.

A. Complete Design Stage

This stage includes the final piece of the actual construction. Contractors

and subcontractor plans are final, working schedule is done, materials and tools

are at their designated place, and instructions are given to all of the personnel of

the plant. All matters needed in the execution of the plant are all considered and

the construction is ready to start.

B. Procurement and Construction Stage

This stage includes the result of the final project. It is at this stage that the

project becomes actual on the area planned and visible to the public. The

implementation stage is where things are going to be done or implemented.

Equipment and materials that will be use during the construction will all be

monitored so that the site will be ready as soon as possible and no time being

wasted for unnecessary mistake. The expected time for the construction to be

done is roughly to be 1 year.

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III. Quality Assurance and Control

Products made from crude oil are vastly used in our daily living and plays

an important role to give the community its daily necessities. In order to do so, in

the refinery itself should need a quality laboratory to conclude important

information and details regarding its product. Laboratory testing includes a

discussion of methods for analyses, sampling, general laboratory procedures and

techniques and instruction on quality assurance and quality control practices.

Quality Assurance and control program has no other goal than to return

a quality product and service to its clients.

By following the Philippine Environmental Impact Statement System Law

(PD1686), Clean Air Act (Ra 8749), Clean Water Act (RA 9275), Ecological Solid

Waste Management Act (RA 9003) and Toxic, Hazardous and Nuclear Waste

Act (RA 6969), the consumers (include the residential area), are assured that no

environmental problems will be encountered during the operation of the refinery.

Quality Assurance

Quality Assurance (QA) is a set of operating principles that, when strictly

followed during plant processing and operations a product will be produced

meeting the expectations of the customer. The program should provide

assurance of compliance to any applicable quality expectations as well as any

regulatory requirements. The Quality Assurance a function of setting operating

expectations, to ensure the process operates under defined conditions. One

essential function of the QA program is the nomination of a Quality Manager,

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whose sole function is to manage and improve the process. The Quality Manager

is responsible for development of the facility quality manual which defines roles

and responsibilities, a document control program, raw material specifications,

standard operating procedures that include corrective action expectations and a

Management commitment to quality.

Quality Control

Quality Control (QC) is an analysis methodology to ensure control on

every processes made. Its purpose as designed is to run through various

process checks, such as sampling methods, produce representative samples,

confirm that laboratory analyses are reliable, and verify that the reported results

are suitable to support decisions, and measure and document of any uncertainty

in analytical data. Each manufacturing department should have a written Quality

Assurance Plan while each laboratory should have a written Quality Control Plan.

These plans should include details of program management, standard operating

procedures, process and product specification and planned details for process

assessment. The Quality Control plan should detail the process for generating

Certificates of Analysis for finished products. Protocols

1. Certificate of Analysis

2. Sampling, Sample Retention, and Sample Shipment

3. Batch Description

4. Shipment Information

IV. Control Management System

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A. Commissioning and Dry-run Stage

B. Operation Stage

V. Risk Management

A. Facility Response Plan

B. Spill Prevention, Control and Countermeasures Plan (SPCC) C. Emergency

Action Plan

D. Training and Aware

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

This chapter presents the summary of findings, conclusions and

recommendation for the development of an Oil Refinery plant.

Summary of Findings

The following results relative to Oil Refinery plant were summarized as

follows:

1. The proposed Oil Refinery plant will be located at Sumira, Camarines Sur in

Bicol Region. It is expected that the demand for diesel, gasoline, LPG and other

petroleum by-products such as naphtha, kerosene and related jet aircraft fuels,

fuel oils, lubricating oil, paraffin wax, asphalt and tar, petroleum coke, sulfur,

olefins, plastics, will continue to keep up with the country’s growing polymer

industry.

2. Environmental impact assessment is done by rating the waste generated by

the design. Design has high environmental impact.

Conclusions

The following conclusions are based from the summary of findings

mentioned above.

1. Data acquisition with regards to the demand requirement, demand projection,

target customers and target location is important since these will be used as

basis for the development of the proposed plant.

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2. Technical aspects such as mass balance and energy balance and equipment

cost and specifications, are needed to evaluate the plant overall efficiency since

these will serve as a basis in selecting the best design option.

3. Economic analysis which will include the computation of the capital

investment, operating expenditure, payback period and rate of return are needed

to determine the economic feasibility of the proposed plant.

4. Environmental impact assessment will be evaluated based on the waste

generated during construction and operation of the plant and the mitigation

measures needed to minimize the impact of the waste generated by the Oil

Refinery plant.

5. Design, which uses a 1:1 ratio of ethylene and benzene as feedstock, shows

that its process is highly efficient, economically viable and has low impact in

the environment. This design option will have the highest potential among the

three design options.

Recommendations

Based on the prior findings and conclusions presented, the following

recommendations are suggested:

1. The Oil Refinery plant should always consider a strategic target location to

maximize its resources. Easier access to raw materials and target customers

should always be preferred to lessen costs. The plant should also meet the

demand requirements of the market.

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2. The equipment should be set to function with optimal efficiency since it will

greatly affect the production rate. Equipment maintenance of the equipment is

highly recommended to avoid malfunction of the equipment.

3. Health and safety should always be considered during construction and

operation of the Oil Refinery plant.