Sigmafine User Summit

Achieving Operational Excellence with Automated Hydrocarbon Accounting

September 18th 2018 Houston, TX.

Team : Ramesh Rajaram, Arif Syed, Harshil Vyas By : Vikas Deshmukh

Any statement, opinion, prediction, comment, or observation made in thispresentation/publication are those of the presenter/author only and in no condition should beconstrued necessarily representing the policy and intent of Reliance Industries Ltd. (RIL).

The information presented herein are of the presenter/author’s own and in no way RILattracts any liability for any inconsistency or irregularity in terms of the accuracycompleteness, veracity, or truth of the content of the presentation/publication. In addition,RIL shall not be liable for any copyright infringement and misrepresentation for thepresented content as the content is presumed in good faith to be a creation ofpresenter’s/author’s own mind.

The scope of this presentation/publication is strictly for knowledge sharing purposes andnot necessarily to provide any advice or recommendation to the audience/readers. Anyendorsement, recommendation, suggestion, or advice made by the presenter/author shall bein his personal capacity and not in professional capacity as an employee of RIL. Any personacting on such endorsement, recommendation, suggestion, or advice will himself/herself beresponsible for any injury/damage.

Disclaimer

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Dhirubhai H. AmbaniFounder Chairman Reliance

Group

© Reliance Industries Ltd., 2018

• 1966- Establishes Textile mill in Naroda

• 1977- Public share offering Raised money from public offerings

oversubscribed 7X

• 1982- Builds fiber/filament plant in Patalganga

• 1995- Builds Polyolefin plants at Hazira

• 1997- Builds multi-feed cracker at Hazira

• 1999- Builds Jamnagar refinery

• 2002- Acquired IPCL a state run company

• 2008- Builds JERP refinery at Jamnagar

• 2009- Begins KG D6 gas production

• 2013- Builds PBR/SBR plants at Hazira

• 2015- Builds PTA plant at Dahej

• 2015- Builds PET plant at Dahej

• 2018- J3 plants commissioned (C2 complex, PX4), Gasifiers under

commissioning.

RIL Brief Introduction

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Key Financials FY 16-17

Revenue Net Profit Investments(2) Exports Net Profit CAGR (1)

Market Cap. CAGR (1)

US$ 51 billion

US$ 4.8 billion

US$ 17.7 billion

US$ 22.8 billion (~8% of India’s exports)

26.7% 31.5%

INDIA’S FIRST PRIVATE SECTOR COMPANY TO FEATURE IN FORTUNE GLOBAL 500 LIST OF “WORLD’S LARGEST CORPORATIONS”; CURRENTLY RANKING 203RD IN TERMS OF REVENUE AND 110TH IN TERMS OF PROFITS

Major Businesses

Refining & Marketing

Petrochemicals Oil & Gas Digital Services

Media & Entertainment

Retail

Notes:1. Since IPO(40 years)2. 2016-17 data

© Reliance Industries Ltd., 2018

RIL – Largest Private Sector Enterprise in India

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Refining & Marketing(R&M)

§ Operates the world’s largest and most complex refineries with crude processing capacity of 1.24 million barrels per day

Petrochemicals§ Integrated petrochemical player -

in Top 10 rankings globally

§ One of the world’s oldest and largest polyester fiber and yarn producer

Exploration & Production(E&P)

§ Onshore and offshore exploration and production in India

§ Significant presence in US shale business

Retail§ Largest retailer in India with over

$5 billion turnover§ Caters to over 3.5 million customers

every week

Digital Services (Jio)§ Providing world’s most

affordable data and voiceservices to 138+ mn users

§ Based on a world-class all-IP data strong future proof network with latest 4G LTE technology

Media & Entertainment (M&E)

§ One of India’s leading M&E players, with a strong presence across television content production and distribution, theatrical exhibition of films and media services

Corporate Social Responsibility(CSR)

Top spenders in CSR (Rs. 674 Cr.) within

country with main focus on rural

transformation, healthcare, education

and sports

© Reliance Industries Ltd., 2018

Reliance Industries - Businesses

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Recognized as the world’s No.1 Mega project by Discovery Channel in 2012, we are thelargest operating refinery in the world1.5% of world’s transportation fuel is produced from Jamnagar refinery

Refining & Marketing

RIL is amongst the world's leading producer with 24.9 MMT of petrochemicals production and global scale capacities across polymers, polyester, fibre intermediates and elastomers.RIL holds 36% and 33% domestic share in polyester and polymer markets respectively

Petrochemicals

Reliance’s Kg-D6 gas discovery has doubled India’s natural gas supplies. The block has the potential to produce 40% of India’s gas production (3.6mn barrels per day)

Exploration & Production

World’s largest and fastest growing mobile data network and country’s most cost efficient digital services platformJio has progressed India to No.1 position from 150th in terms of data usage (1.2 bnGB/month)

Digital Services(Jio)

Leadership & Work-culture

Listed amongst the top 10 for ‘Best Places to work’ in India by LinkedIn , 2018 Our chairman Mukesh D.Ambani is the only Indian on Forbes Global game changers list

© Reliance Industries Ltd., 2018

Reliance Industries – Where We Stand

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Successful Backward Integration for Feedstock Security in Pet & Polyester Production

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HMD

JMDVMD

NMD

PMD

DMD

I. Jamnagar Manufacturing Division (JMD)–Refineryand associated petrochemical plants

II. Hazira Manufacturing Division (HMD)-Petrochemical, Polymer and polyester plants

III. Dahej Manufacturing Division (DMD)-Petrochemical, Polymer and polyester plants

IV. Nagothane Manufacturing Division (NMD)-Petrochemical and Polymer

V. Patalganga Manufacturing Division (PMD)-Petrochemical and polyester plants

VI. Vadodara Manufacturing Division (VMD) -Petrochemical and Polymer

Manufacturing Sites

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Downstream

Refining Petrochemical

Jamnagar1. DTA2. SEZ3. Gasification

1. Jamnagar2. Hazira3. Dahej4. Vadodara5. Nagothane6. Patalganga

Upstream

Oil & Gas

Reliance Hydrocarbon Business

Polyester

Fuel retail

To manage we have to control. To control we have to measure

Agenda

1. Digitalization @ Reliance2. Sigmafine History @ Reliance3. Business objectives4. Sigmafine – Refining & Petrochemicals business5. Sigmafine – Data consumers & Data flows6. Hydrocarbon accounting / Loss monitoring– before & after Sigmafine7. Sigmafine up-gradation project @Reliance Jamnagar & other

Petrochemicals8. Benefits of upgrade9. Reliance wish-list10. Lesson’s learned

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Digitalization @ Reliance

“Data is new oil for fourth industrial revolution.The foundation of the fourth industrial revolutionis connectivity and data. Data is the new naturalresource. We are at the beginning of an era wheredata is the new oil,”

Mukesh Ambani,Chairman, Reliance

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Digitalization changes everything

Digital Transformation at Reliance

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Digital makes excellence operational

Business objectives Digital solution

Integration of whole supply chain

Platform (IT OT)

Abnormal situation management

Big data analytics

Operator driven reliability Operator handhelds

Competency assurance of frontline operating staff

AR/VR and Digital twins

Intelligent search Cognitive computing (AI)

Digitalization Vision

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Sigmafine History at Reliance

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Sr # Description Month / Year1. First Sigmafine Hydrocarbon model (V3) implemented @ DTA

Refinery, JamnagarSep’ 2002

2 Second Sigmafine Hydrocarbon model (V3) implemented @ SEZRefinery, Jamnagar

Jan’ 2009

3. Total 5 Sigmafine Hydrocarbon models (V3) implemented @Petchem sites – Hazira, Dahej, Nagothane, Patalganga, Vadodara

May’2013

Business Objectives

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1. Loss monitoring and reduction of unaccounted losses.

2. Production accounting – Yield, Mass.

3. Process optimization – helps judge yield, flow and inventory data.

4. Production planning (Plan Vs Actual)

5. Instrument management - form the basis of a preventative maintenance of instruments.

6. Facilitate regulatory compliance by creating a single version of data.

7. Enable well-informed accurate business decisions.

16 of 29 DCS

TIS

Historian

LIMS

Production Accounting Database

SigmafineMeasured

Reconciled

PIMSSAPGRMDORDMB

Sigmafine Data Flow

Sigmafine – Refining business

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“Integrated refining, petrochemical & gasification complex”Sigmafine model details:

Refinery Hydrocarbon Utilitiesnetwork

Sigmafine Mass Balance Models

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Jamnagar DTA SEZElements counts 15,255

World’s largest Sigmafine model

Sigmafine – Petrochemicals business

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Description Hydrocarbon Utilities networkSigmafine Mass Balance Models 05 05

Elements countsHazira Manufacturing Division 5233 5687Dahej Manufacturing Division 985 410Vadodara Manufacturing Division 985 1300Nagothane ManufacturingDivision 760 998

Patalganga Manufacturing Division 605 190

Reliance has 5 petrochemical sites with cracker (Gas/ Naphtha / Ethane) and downstream polymer complex.

Sigmafine Data Consumers

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1. Operations,

2. Finance, Compliance and Accounting,

3. Planning and scheduling

4. Instrument reliability

5. Technical Services

6. Benchmarking studies

Conditioned data from Sigmafine ensures data quality, credibility and usability across the enterprise

1. Difficult to perform daily mass balance (too much effort involved & man-hours)

2. Manual entry of daily production records3. Plant-wide KPIs missing4. Arbitrary manual adjustments required for monthly balance.5. Difficult to trace losses.

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Hydrocarbon Accounting – Before Sigmafine

Before Sigmafine, the data lacked Accuracy

1. Material balance based on standard data reconciliation platform2. Automated accurate daily Mass balance3. Established KPI’s.4. Daily and monthly balances are mutually consistent.

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Hydrocarbon Accounting – After Sigmafine

Controlling Unaccounted Loss and Ensuring Robust Mass Balance

Sigmafine Migration

1. SigmafineV.3 support discontinued.

2. Ever growing models with limited space in canvas for future expansion.

3. Stand-alone system

4. Application runs on windows XP platform.

5. Access control & data security issues.

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Sigmafine Migration- Project Success story

1. Utilized PIMSOFT expertise in SF3 to 4 conversion

2. Major challenge was J3 (C2-Complex) plants were in commissioning stage and

integration with existing model was difficult.

3. Parallel run in SF3 & SF4 to validate the reconciled results

4. Knowledge sharing

5. Team work

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Sigmafine Migration: Highlights

1. Speedy migration of DTA & SEZ Refineries using migration utility provided byPimsoft.

2. Gone live without any downtime with available resources and within stipulatedtime frame.

3. Able to integrate with existing systems without any hassles.4. Faster and smoother migration for the remaining models of petrochemical sites.

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Sigmafine History at Reliance:

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4 Sigmafine version upgrade (V3 to V4.6.7) @ DTA , SEZ Refinery and newly commissioned C2 and Gasifier units @ Jamnagar

Dec’ 2017

5 Sigmafine version upgrade (V3 to V4.6.7) @ Petchem sites – Hazira, Dahej, Nagothane, Patalganga, Vadodara (Underway)

Dec’ 2018

Sr # Description Month / Year1. First Sigmafine Hydrocarbon model (V3) implemented @ DTA

Refinery, JamnagarSep’ 2002

2 Second Sigmafine Hydrocarbon model (V3) implemented @ SEZRefinery, Jamnagar

Jan’ 2009

3. Total 5 Sigmafine Hydrocarbon models (V3) implemented @Petchem sites – Hazira, Dahej, Nagothane, Patalganga, Vadodara

May’2013

Benefits of Sigmafine Upgrade

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1. Reduction of time required for model execution and troubleshooting.

2. Improved reconciliation analysis

3. Better multi-user environment

4. Enhancement in user access control and security

5. Elimination of manual steps

6. Restrictions on Manual intervention

7. Sigmafine Excel add-in : Useful in making ad-hoc reports.

8. Ease of integration with third party systems using IF (Integration Framework).

Lesson Learned

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1. Automate everything

2. Put efforts in documentation, templates, etc

3. Begin communication between IT, modeling, and process units early

4. Effective and timely project management is critical

5. Build strong operating model for sustenance

Reliance Wish-List

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1. Capability to host model on cloud based.

2. Web-based user interface

3. Mobility

4. Dash board and reporting solution