Cyprusinternationaluniversity Faculty of Engineering
Cyprusinternationaluniversity Faculty of Engineering
Cyprusinternationaluniversity Faculty of Engineering
BY
YASIR IBRAHIM
22001725
July, 2023
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TABLE OF CONTENT
TABLE OF CONTENT....................................................................................................................... ii
CHAPTER ONE ................................................................................................................................... 1
INTRODUCTION ................................................................................................................................ 1
CHAPTER TWO .................................................................................................................................. 2
COMPANY INFORMATION ............................................................................................................. 2
2.1 History about the Company ....................................................................................................... 2
2.2 Company Employment Data ..................................................................................................... 2
2.3 Main Product and Raw Materials of the Firm ........................................................................... 2
2.3.1 Main Products of the Company ............................................................................................. 3
2.3.2 Company Raw Materials........................................................................................................ 3
CHAPTER THREE .............................................................................................................................. 4
MANAGEMENT AND ORGANIZATION OF NIGERIAN NATIONAL PETROLEUM LIMITED
.............................................................................................................................................................. 4
3.1 Departments in Nigerian National Petroleum Corporation Limited (NNPC) ........................... 4
3.1.1 Production Department of the Company ............................................................................... 4
3.1.2 Finance and Account Department .......................................................................................... 4
3.1.3 Health and Safety Department ............................................................................................... 4
3.1.4 Operation Department ............................................................................................................ 4
3.1.5 General Services Department ................................................................................................ 5
3.1.6 Public Relation Department ................................................................................................... 5
3.1.7 Legal Department................................................................................................................... 5
3.1.8 Oil Services Department ........................................................................................................ 6
3.1.9 Press Department ................................................................................................................... 6
3.2 Problem Associated with Company Management..................................................................... 6
3.3 Duties of Industrial Engineers in NNPC ................................................................................... 7
3.4 Organizational Chart of the Company ....................................................................................... 7
CHAPTER FOUR ................................................................................................................................ 8
MANUFACTURING SYSTEMS IN NNPC ....................................................................................... 8
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4.1. Company Manufacturing Systems............................................................................................. 8
4.2 Manufacturing Processes ........................................................................................................... 8
4.3 Major Machines for these Processes ......................................................................................... 9
4.4 Material Handling Equipment used in the Company. ............................................................... 9
4.5 Company Productivity Measure ................................................................................................ 9
4.5.1 Block Plan of the Company ................................................................................................ 10
CHAPTER FIVE ................................................................................................................................ 11
WORKSTUDY................................................................................................................................... 11
5.1 Process flow Chart ................................................................................................................... 11
5.2.1 Part List of Diesel ................................................................................................................ 11
5.2.2 Part List of gas ..................................................................................................................... 11
5.3 Standard Times ........................................................................................................................ 11
5.4 Unit Cost Calculation .............................................................................................................. 12
CHAPTER SIX................................................................................................................................... 13
PRODUCTION PLANNING ............................................................................................................. 13
6.1 Nigerian National Petroleum Corporation Production System ............................................... 13
6.2 Demand Analysis and Production Plan of the Company ........................................................ 13
6.3 Production Plan........................................................................................................................ 13
6.4 Industrial Engineers Involvement ............................................................................................ 14
CHAPTER SEVEN ............................................................................................................................ 15
OCCUPATIONAL HEALTH AND SAFETY .................................................................................. 15
7.1 Environmental Impact ............................................................................................................. 15
7.2 Environmental Management.................................................................................................... 15
7.3 Organizational Safety and Training ......................................................................................... 15
7.4 Occupational Health and Safety Problems .............................................................................. 16
CHAPTER EIGHT ............................................................................................................................. 17
QUALITY ENGINEERING .............................................................................................................. 17
8.1 Management Method .............................................................................................................. 17
8.2 Quality Problem in the Company ............................................................................................ 17
8.3 Quality Control in Different Production Stages ...................................................................... 17
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CHAPTER NINE ............................................................................................................................... 18
INFORMATION SYSTEM ............................................................................................................... 18
9.1 Information Flow ..................................................................................................................... 18
9.2 Enterprise Resource Planning (ERP) ....................................................................................... 18
9.3 Computer Software used in the Company ............................................................................... 18
9.3.1 Microsoft Excel 2016 ........................................................................................................... 18
9.3.2 Microsoft Outlook 2016 ....................................................................................................... 18
9.3.3 Microsoft Word 2016 ........................................................................................................... 19
9.3.4 Programs used by Industrial Engineers................................................................................ 19
CHAPTER TEN ................................................................................................................................. 20
INTERVIEW WITH INDUSTRIAL ENGINEER IN THE COMPANY .......................................... 20
10.1 Interviewing an Industrial Engineer ........................................................................................ 20
CONCLUSION .................................................................................................................................. 22
APPENDIX ........................................................................................................................................ 23
APPENDIX B ..................................................................................................................................... 26
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CHAPTER ONE
INTRODUCTION
Industrial training is a program that attempts to provide hands-on training to an individual or a group
of individuals so that they can get practical experience in their field of study. Industrial training gives
students a hands-on experience with the work and research they have done over a period. Students at
Cyprus International University's Department of Industrial Engineering are entitled to at least two
industrial training during their undergraduate studies. Students should be able to receive knowledge
with everyday engineering difficulties, and the relationships between industrial organizations,
according to the industrial engineering outline. The purpose of this report is to provide a full account
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CHAPTER TWO
COMPANY INFORMATION
The Nigerian National Petroleum Corporation (NNPC) was founded in April, 1977 as a merger of
Nigerian National Oil Corporation (NNOC) and the Federal Ministry of Mines and Steel.
NNPC by law manages the joint venture between the Nigerian federal government and a number of
foreign multinational corporations, which include Royal Dutch, Shell, Exxon Mobil, Chevron and
Texaco which now merge with Chevron. Through collaborations with these companies, the Nigerian
The major functions of NNPC are: exploration, refining and petrochemical, storage, dispatch and
transportation. NNPC has a sole responsibility for upstream and downstream development and is also
charged with regulating and supervising the oil industry on behalf of the Nigerian government. In
1988, the corporation was commercialized into 11 strategic business units, covering the entire
spectrum of oil industry operations: exploration and petrochemical, gas development, refining,
distribution, petrochemical engineering and commercial investments. The subsidiaries are NPSC,
DUKE OIL, ISDL, KRPC, NETCO, NGC, NAPIMS, PHRC, WRPC, NNPC RETAILS, and NPDC.
The document also showed that NNPC Corporate Headquarters (CHQ) recorded the highest number
of staff, with 2,817 individuals, representing 38.39 per cent ofits total workforce; compared with 1,801
people, accounting for 27.2 per cent of the 6,621 total staff strength recorded
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2.3.1 Main Products of the Company
These are mainly crude oil and natural gas condensate. The latter is similar to a very light fraction of
crude oil and can therefore be used in refineries which are later separated into various useful products
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CHAPTER THREE
PETROLEUM LIMITED
The company has several departments working together to achieve the company goals, these
departments are:
The production department in the company is responsible for the manufacture of the company
products. The production department is the largest department within the company, NNPC is
responsible for harnessing Nigeria's oil and gas reserves for sustainable national development. It
explores, produces, refines oil, and markets and retails petroleum products.
The Department is headed by a Director, assisted by three Deputy Directors (Budget, Recurrent,
Capital) show are also accepting by their respective Assistant Directors. The Department is
NNPC Purchasing Department is in charge of assessing of demand, placing orders, making delivery
at the proper time by following up the orders, etc. They make all manner of purchases for the
company, being it production materials purchase or office materials purchase. They also inspect
The Department of operation resources (DOR) was established by the National Gas Supply and
Price Regulations of 2008 duly signed by the President and gazette as No. 10 Vol. 95 of 19th
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February, 2008. The Department came into effect in November 2012 and in accordance with Part I
Section 2 of the law. With some 199 trillion standard cubic feet of proven gas, Nigeria has become
the 11th Country with the largest natural gas reserve in the world. Potentials of higher reserves ranging
from 300-600tscf would place Nigeria as 7th Country with largest gas reserve.
The General Service Department is responsible for general services such as Transport Administration,
Utility Services, Store Management, Facility Management, and Maintenance services, Office
This is as a result of the restructuring of agencies and service programme within Institution and
Organs of the Federal Government. The Department has two Divisions General Services and
The public relations department in the company has so many things to handle when it comes to the
company’s relationship with its customers. They handles things like publicity, establishing and
maintaining contacts with customers and other companies, guest reception activities in the company,
preparing visit agenda and other visit related matters etc. they stand as the face of the company.
The Legal Department handles all legal issues involving the Ministry of Petroleum Resources and its
Agencies. The Unit is headed by a Director, Legal Services (DLS) Department. The Director is
assisted by 6 (Six) Assistant Legal Officers (ALA). The DLS and all the ALA were posted from the
Office of the Honourable Attorney-General of the Federation (HAGF). The Department is therefore
an appendage to the Honourable Attorney-General Chambers and reports directly to the Honourable
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3.1.8 Oil Services Department
The Press and Public Relations Unit is a statutory arm of the Federal Ministry of Information and
National Orientation. The Press Unit in the Ministry of Petroleum Resources serves as the information
gateway between the Ministry and the public and is responsible for providing proper coverage and
publicity of all the Ministry policies, programmer and activities. The Unit is headed by a Deputy-
Director (Information) and works directly with the Offices of the Honorable Minister and the
There are several issues I noticed in the company, such as high production costs, high credit sales,
high indebtedness, low revenues and low gross profits, all linked to the poor financial management
of the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries. These subsisting
problems resurface as the government-run corporation transits to a private liability company and is
recognized forthwith by the Corporate Affairs Commission. The Petroleum Industry Act (PIA), which
President in August 2021, caused the transition of the NNPC to a limited company. Based on the 2019
and 2020 audit statements, this review flags concerns that warranted the change in the governance
structure of the NNPC to a private company – issues that if not addressed, may impede the successful
operations of the organization as a private business entity in the short and long term. These issues,
left to subsist, may paradise the essence of the Oil sector reforms, given the key role the NNPC plays
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in the Oil sector business and development. These considering calls from officials of the executive
government for an amendment of the PIA, to provide for the extension of the subsidy regime until
June 2023.
The Industrial engineers are a unique discipline in the field of engineering that can work in just about
any industry. Industrial engineers work to improve the optimization of various resources. Their focus
is on the elimination of wasted time, money, materials, person-hours, machine time, energy, and other
resources that do not generate value in the industries they work in every oil and Gas Company need
these very things. Gas and oil companies hire Industrial Engineers as consultants to look over these
things and give them other ideas on what to eliminate and how to become more efficient. In the
operations realm, industrial engineers analyze the design and management of manufacturing and
service processes, quality assurance, production systems planning and control, resource allocation
and scheduling, personnel assignment and scheduling, inventory control, as well as system and
personnel safety.
Provided the organizational chart of the company in the appendix section of the report APPENDIX 1
page 20.
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CHAPTER FOUR
Nigerian National Petroleum Corporation (NNPC) is responsible for harnessing Nigeria's oil and gas
reserves for sustainable national development. It explores, produces, refines oil, and markets and
The company uses some major common manufacturing processes, which I explained below.
i. Separation Processes - The first phase in petroleum refining operations is the separation of
crude oil into its major constituents using 3 petroleum separation processes: atmospheric
distillation, vacuum distillation, and light ends recovery (gas processing). Crude oil consists
small amounts of impurities including sulfur, nitrogen, oxygen, and metals. Refinery
separation processes separate these crude oil constituents into common boiling-point fractions.
ii. Conversion Processes - To meet the demands for high-octane gasoline, jet fuel, and diesel
fuel, components such as residual oils, fuel oils, and light ends are converted to gasoline and
other light fractions. Cracking, coking, and break processes are used to break large petroleum
molecules into smaller ones. Polymerization and alkane processes are used to combine small
petroleum molecules into larger ones. Isomer and reforming processes are applied to arrange
size.
iii. Treating Processes - Petroleum treating processes stabilize and upgrade petroleum products
by separating them from less desirable products and by removing objectionable elements.
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Undesirable elements such as sulfur, nitrogen, and oxygen are removed by hydrate, chemical
sweetening, and acid gas removal. Treating processes, employed primarily for the separation
of petroleum products, include such processes as the asphalting. Desalting is used to remove
salt, minerals, grit, and water from crude oil feed stocks before refining. Asphalt blowing is
used for polymerizing and stabilizing asphalt to improve its weathering characteristics.
Horizontal tanks: are the most prevalent within the agricultural business. In this business, horizontal
tanks store and convey liquid fertilizer chemicals, water, and other liquid agricultural chemicals, such
as pesticides.
Variable vapor space tanks: are equipped with expandable vapor reservoirs to accommodate. Vapor
Internal/external floating roof tanks: has a type of fixed roof on top, whereas the external floating roof
has an open top. The purpose of both types is the same: to reduce vapor losses, however the application
area is usually different. Traditionally, EFR is preferred mostly with large crude oil storage tanks.
tool used to aid in the movement, protection, storage, and control of materials and products. Some of
the materials handling equipment used by the company are forklifts, carts, pallets, pallet jack, trolleys
etc. pictures of the material handling equipment are in the appendix section on pages 33 to 36 Figures
12 to 18.
Nigerian national petroleum corporation (NNPC) uses material productivity for their productivity
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Measure. Material productivity is the ratio of output to the input of materials. Material productivity is
important in the manufacturing of goods since it informs businesses about what a given amount of
materials input will yield in terms of output. Costs and other financial operations may also be
2D block diagram of the company is provided in the appendix section, page 21.
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CHAPTER FIVE
WORKSTUDY
The process flow chart for two assemblies are provided in the appendix A of this report FIGURE 1.
The Routing (Part list, Bill of Materials) for two products are provided below.
The complete part list of materials required in producing diesel is given below.1.Water
i. Oxygen.
iii. Air.
Standard times are not used in NNPC because most of the processes in the factory are not definite.
For this reason, the company does not use standard times in tracking employees work rate. The
company uses throughput. The length of time it takes for raw materials to transit through the
production process and become final goods is measured by throughput. This includes everything from
the time raw materials enter production to the time completed goods leave the facility. Processing
time, which is the time, spent converting raw materials into final products. Inspection time, which is
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time spent inspecting materials and finished goods. Move time, which is time spent moving items into
For unit cost calculations, all cost are brought in for calculation, being it fixed cost or variable cost.
External costs such as cost for logistics and transportation are all included in the unit cost calculation.
The unit cost in the company is calculated by adding all fixed and variable costs and dividing it by
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CHAPTER SIX
PRODUCTION PLANNING
Understanding the principles of fluid flow through the production system is important in estimating
the performance of individual wells and optimizing well and reservoir productivity. In the most
general sense, the production system is the system that transports reservoir fluids from the subsurface
reservoir to the surface, processes and treats the fluids, and prepares the fluids for storage and transfer
to a purchaser.
A company's success or failure depends on the ability to identify and satisfy customers ‘needs. In
today's market, every business needs to understand consumer behavior and hold inventory
accordingly. Demand analysis brings many insights essential for the decision-making process. After
conducting research, companies obtain knowledge crucial for sale forecasting, product pricing, costs
A production plan describes in detail how a company’s products and services will be manufactured.
It spells out the production targets, required resources, processes and overall schedule. The plan also
maps all of the operational steps involved and their dependencies. The goal is to design the most
efficient way to make and deliver the company’s products at the desired level of quality. A well-
designed production plan can help companies increase output and save money by developing a
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6.4 Industrial Engineers Involvement
Industrial engineers analyze manufacturing processes to identify opportunities for improvement. They
optimize production lines, reduce cycle times, minimize waste, and enhance overall productivity. By
implementing lean manufacturing principles, industrial engineers help companies achieve significant
cost savings and improved competitiveness. Industrial engineers play a vital role in optimizing supply
chain networks. They design efficient distribution systems, develop inventory management strategies,
and improve logistics processes. Through the use of advanced analyze and optimization techniques,
they ensure timely delivery of goods while minimizing costs and inventory levels. They are also
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CHAPTER SEVEN
The production processes in NNPC are almost clean as the environmental impact of the petroleum
industry is extensive and expansive due to petroleum having many uses. Crude oil and natural gas are
primary energy and raw material sources that enable numerous aspects of modern daily life and the
world economy. Their supply has grown quickly over the last 150 years to meet the demands of the
Intensification of the greenhouse effect, acid rain, poorer water quality, groundwater contamination,
among others. The oil and gas industry may also contribute to biodiversity loss as well as to the
Safety Training is a Company training provided for workers and employers on their cognition,
avoidance, abatement, and prevention of safety and health hazards in workplaces in a company. The
company educates all incoming employees (interns included) on all the safety regulations and rules
that will ensure their safety for their period in the company. All employees are provided with PPE to
ensure their physical safety during work. The Company has first aid boxes in every department office
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7.4 Occupational Health and Safety Problems
If you invest in exceptional health and safety training, you’ll see benefits and progress almost
instantly, curbing the number of people hurt on the job and therefore, the risk of litigation. However
careful you are, you can always count on the unexpected. Accidents, minor or serious, will happen.
The right training doesn’t just show you how to prevent, it also shows you how to respond and react
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CHAPTER EIGHT
QUALITY ENGINEERING
NNPC practices the Total Quality Management approach of quality control. This quality management
strategy focuses on each step of the manufacturing process to ensure that the quality is maintained
from start to finish. The quality management system is an ongoing process that involves improvement,
maintenance, and implementation. In the oil and gas industry, management systems and best practices
have remained fairly consistent over the years. However, solutions and systems need to evolve and
be reinvented to ensure the production and delivery of high-quality products. In this guide, I’ll take
you through some quality management challenges in the oil and gas industry.
There is an increasing need for companies to focus on things like compliance with regulations to
ensure health, safety, and environmental stewardship, but O&G companies continue to lag behind in
Because the company uses the Total Quality Management method, which focuses on each phase of
the production process, it is easier for them to do quality control at various stages of production. The
functionality, label, packaging, and adherence to client requirements, and can be done at every stage
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CHAPTER NINE
INFORMATION SYSTEM
The company commonly uses the top-down approach of information flow, which is the most common and
know traditional organizational style of passing information. Company directives goals and information
flow down from the top to subordinates below. The communication is carried out through different means,
such as the mail, face-to-face communication, text messages, the use of notice boards, etc.
Communication is vital in every organization, and without proper communication, issues like loss of
information, relay of wrong information, errors leading to monetary costs, etc. can occur.
An enterprise resource solution that would have deepened accountability in the Nigerian National
Petroleum Corporation’s business processes has turned a spin project for some crooked top officials to
This is used for analyzing production planning; it is also use for numerical analysis in the company. The
The Microsoft Outlook is used for Viewing received e-mails, and is used by the Human Resource,
Marketing, Finance, Production Planning, and Quality Control and Production departments.
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9.3.3 Microsoft Word 2016
This software is use for typing of mails and other documents like agreements and requests. All departments
The company's industrial engineer uses the MS Word, MS Outlook, and MS Excel. They use them for
tasks within the company such as recording of incoming orders, record keeping, design of required
product, numerical analysis of measurements, communication between departments, etc. they also use the
CANIAS software to handle orders and manage warehouse materials movement. Industrial Engineers are
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CHAPTER TEN
ii. Can you tell me about your education life? I did my undergraduate in Cyprus international
iii. Please I want to know about your career. I started working in this company around 2017. I am the
iv. Do you love your department of work? Yes, I love my current working department, our work in
the department determines how to go inspection in the company through quality of products.
v. How do you like your current position, can you use all your skills and experience in this position?
I love my current position and about using my skills and experience, production and quality
management requires almost all the skills an industrial engineering possesses. Therefore, I am
vi. What would you recommend for a prospective IE in preparing for and shaping their career?
Dedication to work is very important, in most companies, their success depends on the duties of
industrial engineers, and I recommend that every IE preparing in preparing for and shaping their
career to give in their best, as it will all worth it. I think one of the most essential skill is the
managerial this is very important as most IE turn out to be managers. One important thing hiring
executives search for in a candidate is his or her ability to use most of the managerial software
available, also they check the how polite and blending you are with people around.
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vii. Would you study industrial engineering again if you were getting a degree today? Why? Yes, I
will. Industrial engineers are the hot cakes in the market today, as every company needs a very
good industrial engineer to manage the company, as we possess the best managerial skills.
viii. What knowledge from your classes did you have the chance to use in your job? As I am working
in the quality department today, I still refer to my quality management books until date to search
for better and better ways to improve the quality of every product produced in the company.
ix. What course would you take if you could go back to the university? As I am in the quality and
production department, I think quality assurance and quality management will be very important
x. How do you see the future of industrial engineers? As I said earlier, industrial engineers are the
hottest cakes in the market. This automatically gives them a bright future ahead as seeking for job
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CONCLUSION
In conclusion, the major activities of GUSAU depot are to receive, store and dispatch refined petroleum
products (PMS, AGO and DPK). The function of quality control laboratory of GUSAU depot is to ensure
that any product receive into the depot via any means is checked, analyzed and certify within the product
standard specification. The tests we are carrying out are classified into two: preliminary test (color, odors,
physical appearance and observed density, water determination) and confirmatory test (flash point
analysis, distillation and smoke point analysis).These are the various analysis that are carried out in the
depot as they are basically the parameters that would assess the quality of petroleum products, to which if
not examine may lead to knocking of an engine and fire hazard in a community.
Moreover, operational activities such as product reception, storage, product transfer, decanting and
loading operation experience where also acquired the training has exposed me on how to interact with
different people in an establishment and hope the government will keep on supporting the scheme
formation development.
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APPENDIX
Offices
Parking Space
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Figure 3: Process Chart for Premium Motor Spirit (PMS)
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Figure 4: Process Chart for Refines Oil
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APPENDIX B
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Picture 3: Quality Control Laboratory
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Picture 5: Leading Bay
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Picture 7: Personal Protective Equipment
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Picture 9: Smoke Point Tester
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Picture 11: Multipurpose Pipeline
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Picture 13: Seta Tag Closed Cup Flash Point Tester
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