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Copyright of Shell Global Solutions Int'l BV
ADVANCED PROCESS CONTROL IN SHELL
1978-Present
Freek van DijkTeam Leader Process Control
Shell Global Solutions International B.V.
1Dec 2011
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DEFINITIONS AND CAUTIONARY NOTEThe companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, usand our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as associated companies or associates and companies in which Shell has joint control are referred to as jointly controlled entities. In this presentation, associates and jointly controlled entities are also referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statementsother than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on managements current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing managements expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shells products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shells 20-F for the year ended 31 December, 2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 8 December 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.
We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330. 2June 2011
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AGENDA
1.0 What is Advanced Process Control?
2.0 The Three Eras of Advanced Process Control in Shell
1975-1998: The Beginnings
1998-2008: The Global Solutions Era
2008-Present: APC For Global Shell
3.0 Trends and best practices in APC
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WHAT IS ADVANCED PROCESS CONTROL?
1.0
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WHAT IS ADVANCED PROCESS CONTROL?
n An automation technology which:n Is model-based, multivariable, predictive, manages constraints, has
functionality to optimize
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Internal ModelInternal Model
OptimizerOptimizer
Disturbance RejectionDisturbance Rejection
ProcessProcessSetpoints &Constraints
Manipulated Variables
Controlled Variables
Disturbance
Advanced Process Control
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BENEFITS OF ADVANCED PROCESS CONTROL
n HSSE:
nGreater stability, fewer temperature runaways, etc.
nMore efficient means fewer emissions
n Product quality:
nLess off spec material, less give away
n Reliability:
nMore stable operations, less wear and tear
n Cost:
nConsistent operations, less variable production costs
n Margin:
nMore throughput, more product yield, more efficient
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1975-19982.0
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THE BEGINNINGS
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EARLY ADVANCED PROCESS CONTROL (APC)
n The basic concept for APC followed quickly behind the substantial drop in costs in computing power in the 1970s
n At least two groups in Shell developed APC algorithms for refining process control in the 1970s
nGrand Couronne in France
nWesthollow in USA
n These became SMOC and DMC respectively
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EARLY ADVANCED PROCESS CONTROL (APC)
n Characteristics of first generation APC technology
nSize of controller (number of controlled and manipulated variables) was dicated by the speed and memory size of the computer
nModeling was done by fitting curves from step test data, often by hand
nHandling of constraints was not part of first controllers but quickly became very important
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GENEALOGY OF APC TECHNOLOGIES (TO 1998)
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LQGDMC
QDMC
SMOC
IDCOMIDCOM
SMCASMCA
DMC+DMC+
PCTPCT
RMPCTRMPCTSMOCPC
1975
1980
1985
1990
1995
2000
2005
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APC IN SHELL TO 1998
n Despite having at least two algorithms in development and deployment, Shell was very successful in implementing APC over this period
nSkilled workforce
nStrong mandate to implement
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1998-20082.1
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THE GLOBAL SOLUTIONS ERA
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CREATION OF SHELL GLOBAL SOLUTIONS
n In 1998, Shell head office engineering staff were put into ShellGlobal Solutions
nCommerical mindset
n Intended to be active in third-part market, not just Shell assets and Shell JVs
n Shells APC technology was one of the focus areas for Shell Global Solutions to productize
nBest in class algorithm
nDeep application knowledge
nWide variety of implementations across most refining and chemicals processes
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TAKING SMOC TO THE OPEN MARKET
n Two key concepts shaped this space
nPartneringn Needed to partner with other company to complement Shell Global Solutions
strengths
nUniversal Advanced Process Controln Wanted to move away from developing specific versions of SMOC for each
DCS vendor
n One embedding using a common communications language (possible with the release of OPC)
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SHELL/YOKOGAWA APC ALLIANCE
Shell
n Expertise in process operations
n Broad market sectors (refining, gas, chemicals, etc.)
n Operational track record
n Service oriented (TSA, etc.)
n Expertise Plant Automation
n Marketing & sales organisation
n Reliability track record
n System integrator with IT development skills
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SHELL/YOKOGAWA APC ALLIANCE
n Alliance formed in 1999
nSince then 100+ third party customers signed by alliancen Yokogawa focused on non Shell advised companies
n Shell focused on companies with TSAs
n Full suite of technology developed:
nSMOCPRO/RQEPRO/AIDAPRO/MDPRO (offline)
nExaSMOC/ExaRQE/ExaITG (online)
n Services
nFrom engineering consultancy and training to full turnkey projects
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SHELL/YOKOGAWA APC ALLIANCE
n What did the Alliance achieve?
nNew customers
nRecognition of products outside Shell
nAccess to financial income to further software development
nEntry into new markets, new processes
nKnowhow increase on both sides
nAnd.commercial success
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TECHNOLOGY DEVELOPMENT
n Other technologies developed in conjection with the alliance
nQUESTPRO: plant testing software
nBLENDPRO: blend property control using SMOCPRO and RQEPRO
n Replaces SBTM
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GENEALOGY OF APC TECHNOLOGIES (TO 2008)
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LQGDMC
QDMC
SMOC
IDCOMIDCOM
SMCASMCA
DMC+DMC+
PCTPCT
RMPCTRMPCT
SMOCPC
1975
1980
1985
1990
1995
2000
2005
SMOCv9
SMOCProShell/Yokogawa Alliance
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TRENDS AND BEST PRACTICES IN APC
3.0
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TRENDS IN APC
n Benefits continue to grow (oil/gas prices, product innovation)
n Drive towards standardization continues
n Further exploitation of nonlinear process models in APC strategies
n Dynamic simulation plays more important role in testing
n Larger and more integrated control applications (HDS + blending)
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BEST PRACTICES IN APC
n Get the Basics right
n Justify project in monetary terms /anchor it in your business improvement plans
n Follow a project approach for APC (team, schedule, commitments, work process, etc.)
n Build on proven experiences and process know how (standard documents)
n Ensure management buy in /commitment
n First APC must be a success
n Build teams that leverage experienced staff with
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BEST PRACTICES IN APC
n Get operator involvement throughout project
n Design for sustainability
nNo user code
nNo native displays if possible
n Ensure maintenance focus after project (e.g. manpower)
n Use Monitoring and Diagnosis tools for control performance monitoring
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APC WORK PROCESS
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Q & A
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SUMMARY
n Shell has had a long and successful history in Advanced Process Control
n Through the alliance with Yokogawa, Shells SMOC PRO APC technology has proven to be:
nCompetitive in the overall APC market
nExtremely flexible and adaptable to new problems and opportunities
nGenerating great value for Shell and its partners
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