Honeywell in Refining

Honeywell Process Solutions

HPS INTRODUCTION, MARKET OVERVIEW AND TECHNOLOGY UPDATE

P.G.Millette May-2017 Honeywell Oil & Gas Technologies Symposium – Cairo, Alexandria

Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Agenda • Honeywell Process Solutions Overview • HPS activity • Market update & Trends • Technology Trends • Honeywell Technology update – summary - Innovation - LEAP - Joint HPS-UOP Solutions - IIoT

Refining & Petrochemical Oil & Gas & Midstream Our solutions are installed at more than

Chemicals Power Generation 10,000 sites And renewables around the world

Minerals, Metals & Mining Pulp & Paper

Specialty / Batch Chemicals, Pharmaceuticals, Food, Water

EXAMPLE ALEXANDRIA & WEST DESERT CUSTOMERS

ALEXANDRIA ALEXANDRIA SIDI KERIR AMREYA PETROLEUM CO. MINERAL OIL PETROCHEM CO. PETROLEUM (APC) (AMOC) (SIDPEC) REFINING CO. (Refining) (Refining) (Petrochemical) (Refining)

EGYPTIAN MISR KHALDA ABU QIR POWER MIDOR PETROCHEM CO. PETROLEUM CO. PETROLEUM CO. STATION Refinery (EPC) (MPC) (KPC) (Power) (Refiining) (Petrochemical) (Refining) (Up Stream)

EXAMPLE CAIRO & EAST & SOUTH OF EGYPT CUSTOMERS

SUEZ MEDITOR. ABU SULTAN PETROBELL PIPE LINE CO. IDEAL STANDARD POWER STATION (Up Stream) (Pipe line) (Ceramic Manufacturing) (Power) (ENPPI) (SUMED)

PROCTER ORIENTAL SUGAR INTERATED AND GAMBLE PETROCHEM CO. QUENA PAPER CO. INDUSTRIES CO. (Chemical ) (OPC) (P&P Manufacturing) (Sugar Manufacturing) (P&G) (Petrochemicals) (SIIC)

Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Market Update - Oil • Oil price medium term in $50-60/bbl range - IHS sees longer term $80/bbl - Constrained by growing US production and any recovery in challenged areas – Nigeria, Libya

Norwegian Mediterranean • MARPOL regulations change Sea Sea Sulphur reduction roadmap - 2020 Baltic Sea and Japan / Korea North Sea

5 North America & US Caribbean Sea 4 3.5% Mexico China (incl. HK) (2019 – 0.5% S, Could go down to 3 0.1%)

2 Non Australia

% Sulphur Sulphur % (S) ECAs 1 • ECA = 0.1% S (only exception is 0.5% China which will be 0.5% S in 2019) • Non ECA = 0.5% S by 2020 0.1% 0 ECAs Legend 2005 2010 2015 2020 2025 Existing Announced Future (Possible) • IHS says effect of MARPOL decision - 500KB/D shift HSFO to Marine Diesel - LSFO – HSFO differential widens to $40/BBl - LNG pick up as ship’s fuel for near shore areas – limited penetration globally - Shippers can opt to scrub on-board ship – leads to return of HSFO volumes to 2030 - Refiners in choices on whether to tackle deeper desulfurization . Refining margins spike in the implementation period and then settle . Significant advantage to higher conversion refineries during the ‘scramble’

• Gas and LNG production globally increasing – committed projects - Pacific basin will be in excess, push to Atlantic basin - American LNG making its way to Europe - China’s reaction to pollution concerns can have a significant impact • Crude oil price link, where exists – increasingly challenged - Short term & Spot LNG puts pressure long term contracts • LNG consuming markets diversifying - Infrastructure for logistics is growing • Prices remain subdued – price growth, modest over coming years

• Ongoing, broad move to Euro VI / equivalent specs – globally Egypt Refineries – operating rate - E.g. India projects • Maximize operating rates / crude runs • Combining with Petrochemicals • Reliability – uptime focus – initiatives • Energy / Emissions Management • Maximizing yields from operations • Process Safety practices, Personnel Safety & Security • Longer term diesel disfavour in Europe – for passenger cars • Egypt – - Gasoline consumption growing 4.5%, Diesel 2% annually, LPG 4.2% - IHS - IMF sees 6%+ GDP by 2025; IHS sees <5% - Refinery configuration / demand profile – some adjustment - Pipeline & storage, import terminals/ infrastructure – some constraints - Subsidy reform will help - MARPOL response

Dashboards Collaboration Situational Reflect social media Awareness

Big Data Mobility…

Leverage the BYOD & connections Technology Example from Honeywell OneWireless storage .. & Plant Wireless Cloud Analytics Reporting to Computing predictive Moving to complex service models 2017 Trends • Trend No. 6: Blockchains and Distributed Ledgers • Trend No. 1: Artificial Intelligence and Advanced • Trend No. 7: Conversational Systems Machine Learning • Trend No. 8: Mesh App and Service Architecture • Trend No. 2: Intelligent Apps • Trend No. 9: Digital Technology Platforms • Trend No. 3: Intelligent Things • Trend No. 10: Adaptive Security Architecture • Trend No. 4: Virtual Reality and Augmented Reality • Trend No. 5: Digital Twins

Convergence of Key IT Trends into IIOT

The country’s vision is for the oil and gas sector to Investment Streamline current concession processes and continuously unlock the sector’s full value chain potential Attraction expand concession agreement portfolio as a growth and a sustainable development engine for Egypt to achieve financial sustainability, become regional oil and gas hub and a role model for the future of Create single SOE coverage across the value chain, Structuring modernized Egypt by 2021. and rationalize portfolio of both operations and Reform companies involved in the Egyptian industry

Introduce comprehensive talent management Organization Health Organization People Agenda system and redeploy people to drive efficiency

Optimize downstream and petrochemical sourcing, Downstream output and mass balancing. Drive operations performance transformation

Upstream Drive operations performance transformation Fits with Honeywell focus

Accelerating the pace of action Performance Regional Oil & Optimizing and leveraging existing oil and gas Accelerating projects Gas Hub transport and storage infrastructure Capturing more value sooner

+ Crude Oil Crude Oil Refinery Operating Net Cash Transport Cost Configuration Expenses Margin

Cost effect

$ / / $ Barrel Finished Finished Product Value

Refinery Cost Demand Plan & Purchase Matching Sell & Distribute Capability Profile Profile

Manage Performance Refinery People, Skills, Units, Safety, Environment, Assets, Maintenance, Energy Blending / Power & Utils

Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Refinery Capability & Performance Management: Maximizing Utilization / Minimizing costs • Higher on-stream factors Refinery Operating • Better constraint + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin Increase Capacity Usage management Cost effect • Unit & Multi-Unit

Reduce Cost optimization $/bbl Country Avg NCM 20 Brazil Expand • Reduce product 15 Increase Yield giveaways 10 Margins 5 • Reduction in energy 0 Improve Agility usage -5 -10 -15 • Reduction in utility Source: Wood Mackenzie Improve Quality $ / Barrel / $ consumption • Faster response to changing crude slates Finished Product Value Product Finished Faster Diagnostics Improve • Better scheduling and Reliability Better Monitoring blending decisions • Reduction in maintenance - Longer Run Length costs • Lower production losses

Emissions • Less equipment damage Manage from repeated shutdowns HS&E Abnormal Situation Mgt • Lower compliance costs • Fewer incidents Value potential – 25-75¢/Bbl • Less unplanned shutdown Priorities: individual to each refinery – how to focus? time Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Refinery Operating + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin

Cost effect $ / Barrel / $

Refinery Capability: solution space Value Product Finished

Access Control Terminal mgmt & product loading Flare Systems Digital Video Offsites Movements mgmt Corrosion Detection Wireless network & and Monitoring solutions

UOP Process Units – licenses, equipment & catalyst Personal Protective Equipment, incl personal gas detectors Field Instruments Asset Health basic diagnostics (instruments, valves) Asset Tracking RFID Fire & Gas Detection Systems Training Simulators Abnormal Situation Management Alarm Management Process Design Simulations Rotating Machine Safety Instrumented System control Site Wide, Perimeter & Process Video Control System Site Security & Perimeter Monitoring, Power & Electrical Intrusion Detection SCADA

Performance Management: solution space Barrel / $ Finished Product Value Product Finished

- Refinery-Wide Planning – Long, medium & short term Production Balancing, Reconciliation, Reporting Offsites Blending Control & Optimization

Wireless network & Process Unit Scheduling* solutions Multi-Unit Optimization Advanced Process Control Advanced Process & Asset Surveillance, Analytics UOP Process Units – Performance Mgmt ASM assessments & benchmarking Unit Procedure & Alarm Help Real-time Engineering models & Remote Operator Responsibility Boundary / Safe Operating surveillance & Complexity Analysis Envelope Management

Business processes that underlie each of these functions are typically organized by groups of similar & related activity

Refinery Operating + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin Cost effect

Demand / Business ManagementERP

Forecasting Barrel / $ Finished Product Value Product Finished

Regulatory - Compliance

Planning Shipping / CMMS Receiving Health and Corp Safety

.Lifting plan Site OperationalProduction Planning Planning . Maintenance work Production Engineeringorder Accounting . Equipment status End Operational surveillance: . Production . Reconciled volumes Asset User Plans Scheduling . Inventories Process. Real-time Management and Equipment . Movement Experi . Actual Mass information OTS Operations orders Balance and inventories AssetProcess Management Production ManagementReconciliation ence - Off-sites EffectivenessMonitoring

Instructions Management Visualization and Integration OperationsMonitoring . Volumes Logbook . Inventories Management .Movements Safety) Operations, (Energy, Dashboards Energy . Tank Management Corrosion Alarm . Targets information Management

Process andHistorian Operational Automation APCand OptimizationMovement CPM Data Automation . Setpoints . Production Planning . Production Management

. Operations Management . Automation and Optimization ControlDCS . Asset Effectiveness . Business Management

. Process and Operational Data Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Refinery Operating + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin Cost effect

Refining Value Chain – ties in to Terminals & oil & gas:

$ / Barrel / $ Finished Product Value Product Finished

Mid-stream activity -

Crude Depots Process Crude Supply • Maximize throughput and yields • Reduce operating costs What to Feed How to Mix • Improve uptime & reliability • Reduce feedstock cost Sequence Controllable • Optimize feedstock mix Activities Blend & • Minimize operation changes Movement • Optimize feedstock rate How/When to Blend Automation How / When to Deliver – Satisfy Demands Distribution End User

• Optimize production • Reduce blend giveaway Retail • Optimize allocation Product • Minimize distribution costs Depots

Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Honeywell Process Solutions: Holistic and Integrated Approach – Technology Platform Best in class solutions with operational integration Ensuring that resulting Improve business Plant performance can agility be captured, understood and improved; Business Results Improve process BUSINESS captured throughput & READINESS energy efficiency Ensuring that Plant Operate safely OPERATIONAL capability is actually & reliably READINESS usable AND used from DAY ONE.

PROCESS Design the Ensuring asset, process correctly READINESS mechanical completion, capability all available from Day ONE.

Experion PKS is an Extendable Solution Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Effective Automation Investment - Completeness of Scope Capturing CAPEX and OPEX efficiencies

Field devices, Uniformance, Sentinel, Connected Integrated F&G, Safety ControlEdge PLC, RTU Core control & real time Plant, Production / logistics mgmt technology platform Import and Modular Export Gas Enclosure & Innovation and Connectedness are at the core of Metering Control Room performance improvements: Skids Design Resulting in successful automation investments

Profit NLC Profit UniSim Process Profit NL Controller Optimizer Models

Profit Controller

UOP RPM Profit SensorPro, Profit Design BG-Max Profit Toolkits (UOP) Studio and Monitoring & Profit Stepper Diagnostics Profit Loop, Profit PID, Loop Scout

UOP Designs & Catalyst HPS Projects & Services

LEAP™ and advanced Integrated Security Competency Mgmt & OTS APC & Opt supporting technologies

Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Innovation – at the core of HPS activity • Experion virtualization, Universal I/O, Virtual engineering platform, Cyber Security • Cloud-based control • Scalability, remote control, multi-site real time coordination • Automated device commissioning • Installed base migration through smooth transitions, including live / on-process changes • Multi-protocol OneWireless™ • ControlEdge PLC with OPC UA • Electrical Device control – inside Experion • Rotating machinery control inside Experion • MeterSuite™ - Fiscal metering inside Experion; Product Terminal Management inside Experion • Common Experion platform for Site Security, video, Fire & Gas; Emergency Command & Control • Process Safety and Personnel safety, including Process Safety Analytics • Advanced Process Control inside Experion • Advanced Alarm Management • Process & Assets Health & Performance Management – Asset model, templates, workflow, advanced analytics • Operator Training Simulators & Learning management – all virtualised • Digital Suites for Oil & Gas – Well Performance, Well Testing automation

Shorten Shorten

Vision & First and Ramp up & Concept / FEED Project Execution Start Up following years’ Operations Pre-FEED operations

Operations Mechanical OPEX profile: sustainability ASM Graphics optimization OTS - competence Ready Completion Alarms – flood free, help documented Orion/ IRA FDM, CPM, APC ready Process Etc… Ready

Capture CAPEX and UIO, infrastructure Business OPEX efficiency Ready Linkage to RIS project, Defined Business Processes, application space, information flows; Understood plant configuration capabilities; Engineering surveillance

Start Finish PHYSICAL FUNCTIONAL

Define Design Manuf Config Test Install

Modpack #1 Define Design Manuf

Modpack #2 Define Design Manuf Config

Start Finish Physical Functional

Define Design Manuf Config Test Install

Late Off the Binding Critical Path

• Cloud Engineering enabled by Controller and IO Simulators in Virtual Machines - Project team can be dispersed globally - Configuration Acceptance Test (CAT) can be done in a Cloud, VEP - Order production hardware late in the project and eliminate a hardware refresh • Universal Channel Technology removes the requirement for marshalling - Standard cabinets, with Hazardous Location and Marine Certifications at the factory - Hardware becomes standard and all customization is in the software - Automatic Device Commissioning simplifies and self documents late changes Gain 25% flexibility in your schedule

Enabling Technologies Universal Cabinets Make late additions and modifications to I/O type with only a soft configuration change with zero external hardware changes

Virtualization Decouple functional automation engineering from physical design while reducing plant hardware requirements

Cloud Engineering Optimize hardware lifecycle by ordering hardware late, and benefit from virtual factory acceptance testing (FAT)

Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Reduce Travel cost Cloud Engineering Virtual – Gradual FAT Can isolate by process area ‘Late Binding’ hardware ordering

Site Customer Office Office

SSL VPN Gateway Virtual EPC SSL VPN Engineering Office Gateway Platform

Honeywell VPN

WAN Virtual Controller and IO Simulation Work Remotely – Work in Parallel – Finish Early Remote Office Honeywell Regional Office

Private VEP

OpenVEP

Customer Home Office

Honeywell WAN Customer Office

Customer Office Honeywell Office Honeywell Office Your Cloud Engineering, by Honeywell

• Keep Automation off of the critical path! • Eliminate activities that generate rework! • Be virtually free from hardware dependencies Universal IO • Reduce travel costs by 50% • Gain 25% flexibility in your schedule • Reduce your MAC capital by 30%

Cloud Virtualization Engineering

Integrated solutions increase value of individual benefits!

Operate at Peak Performance Reach Target Optimized Performance, Production Sooner Embedded Knowledge Operator Experience, Embedded Knowledge Startup your Facility Sooner Project Engineering, Embedded Knowledge Starting up the facility

Constant innovation targeting improved returns…..

Operational Knowledge Experion Pre-Integration Interaction requirements based operator displays and for UOP critical control system packages console workspaces, embedded operating procedures

Solution Alarm Knowledge Suites Operator Alarm Help Control Knowledge Basic and complex loops, automated sequences

Safety Knowledge Cause and effect logic, startup / maintenance bypasses and shutdown logic displays

Automated procedures

Cause & Effect diagrams

Process-specific KPI’s Alarm design

+ Critical control applications: e.g. DRCS, CSCS)

Engineers spending too much Different tools needed for each time extracting and aligning type of data; different users data from various sources have access to different tools

Users constructing isolated and Lack of visibility to real-time inconsistent analysis tools performance against business metrics

Privatized knowledge in privatized spreadsheets

Embedded & Custom Make Problems Process Intelligence Models Visible Notifications

Turbine Pump Dashboards Outputs • Alerts & Notifications • Management Reporting & KPI’s • Maintenance & Reliability Continuous Compressor Heat Single Version of Scorecards Exchanger Truth • Downtime Reporting, OEE • Health Assessment Calculations Rollup KPIs & Dashboards • Automatic Work Order request Head=3960*HP Generation Flow

Fault Models

Continuous Trends Rollup Metrics

Honeywell Confidential - © 2017 by HoneywellContinuously International Inc. All rights reserved. Monitor & Take Action Innovation leads to adopting latest approaches: Industrial Internet of Things - IIoT: How Does IIoT Work? IIoT Elements IIoT Architecture

Smart and Secure 4 OEMs Collaboration • Predictive Analytics • Prescriptive Decision Making Licensors • Smart Collaboration COEs Predictive Private, Public or Honeywell Secure Cloud 3 Analytics • Enterprise History • Asset Management • Operations Management • Planning & Scheduling • Mobility Solutions Data Management • Enterprise Dashboards 2 and Onsite Control Private, Public or Honeywell Secure Cloud

Site #1 Site #2 Site #3 Site #4 Automation & Control Automation & Control Automation & Control Automation & Control

Smart & Connected OPC UA OPC UA OPC UA OPC UA 1 Assets and Devices

CPS Architecture and Predictive Analytics

Secure Cloud Big Analytical Remote Expert Data Collaboration Models CPS Services

HPS Controls & Process Data

CPS Dashboard • Optimize process yields Solution per Process Customer’s • Maximize mix of feeds to convert

Enterprise Room Control • Lower energy utilization • Extend useful catalyst lifetime • Prevent process downtime Process Connected Devices

• Benchmark site-to-site operations Plant

Pre-built Standard control points, Reduce risk and take automation Reduce Project Risk/ Operator Graphics and Alarms out of critical path for start-up Operational Readiness

Pre-built Safety System for the Avoid spurious trips; Shutdown the process in a controlled manner, Reliability/ Availability Process avoiding damage to equipment or catalyst, consistently and reliably

UOP Critical Control Applications Elimination of black boxes, Better visibility, Alarms, SOE in DCS, (CRCS/DRCS and PSA logic) on Reliability/ Availability Lower maintenance cost Honeywell Platforms Train engineers and operators early Operational Readiness UOP and Custom Training Simulators in a safe environment /Reliability/ Availability

Pre-built Supervisory Control System Start-up, operate and shutdown the process consistently and Reliability/ Availability for the Process reliably

Advanced Process Control Improve process efficiency (increase throughput, Efficiency/Optimization for the Process lower energy usage)

Remote Monitoring with advanced diagnostics; KPIs and Integrity Connected Performance Services Reliability/ Windows to make sure process (CPS) Availability/Optimization stays within recommended parameters; Open loop optimization

Increased profitability by bringing unit on-line faster & minimizing plant downtime