STUDENT INDUSTRIAL TRAINING (SIT) REPORT

JANUARY 2014 AUGUST 2014

PETRONAS PENAPISAN (MELAKA) SDN BHD

PP(M)SB/MRC

SYAH HAFIZ BIN MOHD NOR

15034
MECHANICAL ENGINEERING PROGRAMME

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 VERIFICATION STATEMENT

I hereby verify that this report was written by Syah Hafiz bin MohdNor and all
information regarding this company and the projects involved are NOT confidential.

(Supervisors Signature)

Name : Mr. Ehsannawan Hashim

Designation : Project Engineer (Mechanical)

Project Engineering & Services Department

Host Company: PETRONAS Penapisan (Melaka) Sdn. Bhd.

Date : 4 April 2014

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 ACKNOWLEDGEMENT

Firstly I would like to express my gratitude to Mr. Izzat, my supervisor for

having me as his intern at Project Engineering & Services Department (PESD),
PETRONAS Penapisan (Melaka) Sdn. Bhd. Next, a special thanks to my host
company PETRONAS Penapisan (Melaka) Sdn. Bhd. for accepting my internship
application.

Furthermore, huge appreciation is extended to all engineers, technicians,

draughtsman and clerks of PESD. They are an extraordinary staffs in PESD that never
give up educating me to work in a real world. It has been a great privilege to know all
these engineers which are Mr. Husnun (HOD), Mr. Izzat, Mr. Ehsan, Mr. Izhar, Mrs.
Mazlinda Mrs. Normah and Mr. Fauzi. Not forgetting experienced technicians and
draughtsman, Mr. Rizal, Mr.Azizi, Mr. Zahari, Mrs. Fauziah and Mrs. Salmah that
help me a lot in understanding my job scope and find my way around the department
and PP(M)SB itself.

Thanks to University Technology of PETRONAS Centre for Student

Internship, Mobility and Adjunct Lectureship (CSIMAL) for putting a lot of effort in
contributing and making industrial internship programme a great success through this
period. This industrial internship has given me such an amount of experience on
engineering field and real working environment that useful to me.

Apart from that, all of these would not have materialized without my family
members and friends whohave been supporting me throughout my internship
programme. All of their efforts inensuring the success and completion of this
programme are really appreciated. Not forgetting, to my UTP supervisor,excellent
supervision along the assessment and the effort for allowing me toachieve an
outstanding performance for my industrial internship will are deeply appreciated.

Lastly, special thanks again to PETRONAS Penapisan (Melaka) Sdn. Bhd.,

PP(M)SB/MRC for theirwillingness to accept and their generosity in providing me all
the facilities and technicalexpertise in making this programme successful.

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 TABLE OF CONTENTS

VERICATION STATEMENT . ii
ACKNOWLEDGMEMENT . iii

1. INTRODUCTION
1.1. Objectives of Student Industrial Training
1.2. Scope of Work

2. GENERAL OVERVIEW
2.1. Core Business.
2.1.1. Petroliam NasionalBerhad (PETRONAS)..
2.1.2. Host Company: PETRONAS Penapisan (Melaka) Sdn. Bhd.
2.2. Types of Products
2.2.1. PETRONAS Second Refinery (PSR) 1 ..
2.2.2. PETRONAS Second Refinery (PSR) 2 ..
2.2.3. Melaka Group 3 (MG3)
2.3. Types of Services

3. WORK CULTURE

3.1. Occupational Health and Safety.

3.1.1. Safety Regulations

3.1.2. Training Provided.

3.1.3. Company SOP..
3.2. Work Environment..
3.2.1. Team Work..
3.2.2. Work Ethics..

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4. WORKS EXPERIENCE
4.1. Skills Gained.
4.1.1. Leadership Skills
4.1.2. Management Skills
4.1.3. Troubleshooting Skills..
4.1.4. Time Management
4.1.5. Initiative
4.2. Knowledge
4.2.1. Understanding Job Requirement
4.2.2. Completing Task Given On Time..

5. DISCUSSION ON SUSTAINABILITY
5.1. Common practice and future recommendations on..
5.1.1. Environmental
5.1.2. Economical.
5.1.3. Political and Cultural Dimensions.

6. CONCLUSION AND RECOMMENDATIONS

6.1. Overall Summary.
6.2. Recommendations
6.3. Conclusion

7. REFFERENCE

8. APPENDICES

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 LIST OF FIGURES

Figure 2.1.2: Plant Location

Figure 2.2.1A: PSR-1 Process Flow Diagram.

Figure 2.2.2A: PSR-2 Process Flow Diagram

Figure 3.1.2: Personal Protective Equipment..

Figure 3.1.3: PMPMS Overview..

Figure 3.2.1: Toolbox Meeting

Figure 4.1.3A: Root Cause Analysis Tool.

Figure 4.1.3B: PSR-1 Unknown Cause Analysis Tool

Figure 5.1.2.A: Market Force.

Figure 5.1.2.B: Oil Prices Since 1861 ($US).

LIST OF TABLES

Table 2.2A: Products and Properties.

Table 2.2.2.A: Description of Process Unit in PSR-2

Table 5.1.2.A: Typical Breakdown of Refinery Operating Cost..

Table 5.1.2.B: OPEC Oil Reserves and Production..

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 1. INTRODUCTION

1.1. Objectives of the Student Industrial Training

The Internship Committee of University Technology of PETRONAS (UTP) has

outlined several objectives for this internship programme. Beside as a requirement to
the UTP course outline, the program really gives many advantages to the trainees.
The 28 weeks Industrial Internship programme is in line with the universitys
objective to produce well-rounded graduates who are technically competent, have
good interpersonal skills, lifetime learning capability, an entrepreneur spirit, critical
thinking capability, practical aptitude and the ability to synthesize solutions.

Objectives:

To acquaint the UTP students with industry and its programs.

To give opportunity to the student to work with industrial practitioners by
understanding their role in the industry which includes technical and non-
technical services
To expose students to potential employers. This will facilitate the student
towards good attitude in the future. The students will also develop skills in
work ethics, communication and management.
To implement Health, Safety and Environment (HSE) practices at workplace
To integrate theory with practice, where students manage to apply what they
have learnt in class to the real working experience

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1.2. Scope of Work.

During my internship period, I was attached under Project Engineering &

Services Department (PESD). PESD is a sub branch under Technical Service
Division (TSD). It basically handles plant modification projects that cost average
below RM 50 million. The people who are involved in this department are
mostlyexperienced engineers and technicians of various disciplines. Besides, there are
also several draughtsmen in charge of drawings.

PESD implements Plant Modification Project Management System (PMPMS)

which is PP(M)SBs customized framework adopted from the PETRONAS Project
Management System (PPMS). It is a gated framework which involves a projects life
cycle into distinct phases with the use of gates or interfaces that functions as
transition points between phases.Front End Engineering concept is mainly used in
PMPMS.

Basically a project starts with the initiation of the project, design stage,
construction stage and commissioning. I was attached under construction part under
some of Mr. Ehsannawans projects such as Odor Control System at ETS, Flare Gas
Recovery Unit and Kerosene Quality Blender. As a mechanical engineering student, I
assisted and learned to solve mechanical problems during construction stage of a
project. I also assisted in the flow of construction stage itself with regards to my
mechanical discipline. I have learned the requirements before and during the
construction of a project.

Furthermore, inmy leisure time during working hours, I took this opportunity
to learn more about the equipments used in this refinery. This is so that whenever I
encounter these equipments during construction stage, I will not be lost.

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 2. GENERAL OVERVIEW OF THE COMPANY

2.1. Core Business

2.1.1. Petroliam Nasional Berhad (PETRONAS)

Petroliam Nasional Berhad (PETRONAS) is the national oil corporation of

Malaysia which was incorporated on 17th August 1974 under the Malaysian
Companies acts of 1965. On 1974, the Malaysian Petroleum Development act vested
upon PETRONAS the exclusive rights to explore, develop and produce petroleum
resources within Malaysia. It is wholly owned by the Malaysian government any
company interested to invest in oil and gas industry in Malaysia must joint venture
first with PETRONAS.

PETRONAS has evolved through various phases over the years. It begins
from the formative phase in 1974 involving the creation of PETRONAS to the
development phase in 1980 which involves the gas exploration and development with
introduction of downstream projects. The industry rose until globalisation era in 1990
where the expansion of other domestic downstream projects occurred and the
beginning of international ventures. Over the years, PETRONAS has evolved into a
fully integrated multinational oil and gas corporation and has ventured globally into
more than 30 countries worldwide.

As of 7th March 2007, the PETRONAS group comprises of 107 wholly owned
subsidiaries, 28 partly owned subsidiaries and 52 associated companies. In 2008,
PETRONAS was the 95th largest company in the world. FORTUNE also ranked
PETRONAS as the 8th most profitable company in the world and the most profitable
in Asia. Since its incorporation, PETRONAS had involved in a widespectrum of
petroleum activities including exploration, production and development of upstream
sector, oil and gas downstream sector, distribution of petroleum products and
marketing.

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2.1.2.PETRONAS Penapisan (Melaka) Sdn. Bhd.

PETRONASPenapisan (Melaka) Sdn. Bhd. (PPMSB) was incorporated on

19th of September 1987 and located in Sungai Udang, Melaka, Malaysia. Currently,
PETRONAS has three refining facilities and PP(M)SB is the company that manages
and operates the second refinery complex in Malaysia after the first refinery
constructed in Kerteh,Terengganu. PP(M)SB continues to progress to be among the
top performers in oil and gas industry.

Having constructed to be the best refinery in Asia Pacific region,PP(M)SB

is striving to achieve world-class performance. PP(M)SB consists of two processing
trains, PETRONAS Second Refinery (PSR-1) and PETRONAS Second Refinery
(PSR-2) which now within area of 926 acres including the newly constructed Melaka
Group 3 (MG3) plant.

Figure 2.1.2: Plant Location

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2.2. Types of products.

Basically there are many products produced but PP(M)SB focusing on

products that have demand on market. Main products in the company are as follows:

Product Boiling Range Applications Key Qualities

LPG <0 C Home appliances, chemical Vapour pressure,
feed, fuel, industrial and C2 & C5
agricultural heating. composition.
Naphta 30-185 PetroChemical plant feed, PONA content
solvent plant, fertiliser plant
feed, hydrogen plant feed
Mogas 30-215 Road vehicle fuel car, Octane, RVP,
motorcycle, aviation fuel, Benzene
motorboat, lawn mower
Gasoil/Diesel 140-400 Truck fuel and buses for Cetane number,
high speed diesel, medium cloud/pour/CFPP
speed train/locomotive, slow
peed generator, marine
propulsion.
Kerosene 150-280 Jet engine fuel, kerosene Smoke point,
heater/burner, freeze point, flash
illumination,petchem feed point, heat content
for LAB
Fuel 150-1000 Power station, industrial Density, viscosity,
Oil/Residue boilers, bunker fuels, asphalt stability, metals.
Table 2.2A: Products and Properties.

Certain products are produced in same refinery and certain products are
produced in certain refinery only. PSR-1 and PSR-2 mostly produced same products
but with different percentage. Same goes to MG3.

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2.2.1. PETRONAS Second Refinery (PSR-1)

The Malacca refinery complex is nowwithin an area of 926acres and is still

expanding.PSR-1, wholly owned by PETRONAS, was incorporated in 19 September
1987. Plant operations were commissioned in 1994 with the design capacity of
100,000 barrels per day (BPSD). PSR1 processes local sweet crude or low sulfur
crude (sulfur < 0.5wt %) and gas condensates with hydro skimming facilities.
Products from PSR1 include liquefied petroleum gas (LPG), petrochemical naphtha
(PCN), gasoline, kerosene and low sulfur waxy residue (LSWR). This first phase was
primarily built to provide the country with a sufficient supply of petroleum products.
Imports and exports of refined products are also increased and thus increasing the net
inflow of foreign exchange.

Product & Yield

PSR-1 Process Flow Diagram
Fuel Gas <1%
Gas
Fractionator
Condensate

Plant LPG 3%

Reformate
Naphtha
Reformer Gasoline
Hydrotreater
34%
MTBE
Condensate import
Crude Distillation

Heavy Naphtha Naphtha

Treating Unit

Kerosene Jet A1 17%

Treater
Diesel
Diesel
Sweet Diesel 2
30 %
Crude

Residue 16% PSR-2

Source: PP (M) SB

Figure 2.2.1A: PSR-1 Process Flow Diagram

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Feedstocks used for PSR-1 are Tapis/Miri Light Crude, Terengganu Condensates and
Bintulu Condensates. The main process units at PSR 1 include:

Unit 11: Crude Distillation Unit (CDU)

Unit 12: Naphtha Hydrotreating Unit (NHT)
Unit 13: Catalytic Reforming Unit with Continuous Catalytic Regenerator
(CRU)
Unit 14: Saturated Gas Concentration Unit (SGCU)
Unit 15: Sour Water Stripping Unit (SWSU)
Unit 16: Kerosene & Heavy Naphtha Treating Unit (HN/KTU)
Unit 17: Mercury Removal Unit (MRU)

PSR-1 is divided into two operating areas which are:

Area 1A

Crude Distillation Unit (CDU)

Saturated Gas Recovery Unit (SGCU)
Sour Water Stripping Unit (SWSU)
Heavy Naphtha and Kerosene Treating Unit (HN/KTU)
Mercury Removal Unit (MRU)

Area 1B

Naphtha Hydrotreating Unit (NHT)

Catalytic Reforming Unit with Continuous Catalytic Regenerator (CRU/CCR)

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2.2.2. PETRONAS Second Refinery (PSR-2)

PSR-2, incorporated in May 1991, is operated by the Malaysian

Refining Company (MRC), consisting of PETRONAS (53%), Conoco-Philips (47%).
Production for PSR2 with deep conversion facilities started in 1998 with a capacity of
100,000 BPSD. Progress has been made since the commissioning of PSR2 allowing
PPMSB more options in choosing the type of feed crude to process and thus
extending their market to foreign buyers. Fed with sour crude or high sulfur crude
(sulfur > 2.5wt%) imported from the Middle East, PSR2 produces LPG, PCN,
gasoline, kerosene, sulfur, fuel oil, asphalt and coke. Since PSR2 was built after
PSR1, PSR2 is imminently the more sophisticated in terms of technology.

PSR-2 Process Flow Diagram Product & Yield

Fuel Gas <1%
LPG 3%

Gas
Plant

Isomerate
C6 - Isom Gasoline
Heavy Naphtha
Naphtha 23%
Hydrotreater Reformate
Reformer
Crude Distillation

Kerosene Jet A1 15%

Treater
Distillate Diesel
Sour, Light Gasoil
Hydrotreater
HAC Diesel
Crude 46%
Vacuum Distillation

Diesel
Coker Distillate

Vacuum
Gasoil
PSR-1 Hydrocracker
Residue

Fuel Oil
Coker 4%

Asphalt 4%
Source: PP (M) SB
Coke 3%

Figure 2.2.2A: PSR-2 Process Flow Diagram

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PSR-2 is divided into four areas for operating convenience. PSR-2
includes area 2A, area 2B, area 3A and area 3B.

Area 2A

Unit 21: Crude and Vacuum Distillation Unit (CDU/VDU)

Unit 24: Saturated Gas Recovery Unit (SGRU)
Unit 26: LPG Treating Units (LTU)
Unit 27: Naphtha Treating Units (NTU)
Unit 28: Kerosene Treating Unit/Caustic Neutralization Unit (KTU/CNU)

Area 2B

Unit 22: Naphtha Hydrotreating Unit (NHT)

Unit 23: Catalytic Reforming Unit Continuous Catalytic Regenerator (CRU)
Unit 25: C6 Isomerization Unit (LTU)
Unit 29: Distillate Hydrotreating Unit (DHT)

Area 3A

Unit 30: Hydrocracker Unit (HCK)

Unit 31: Hydrogen Collection and Distribution System (HCDS)
Unit 39: Hydrogen Production Unit (HPU)

Area 3B

Unit 32: Delayed Coker Unit (DCU)

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Table below is the brief explanation on each process units available
in PSR-2.

Feed Unit Purpose Product

Crude Oil CDU Distillate crude oil according to Top CDU,
their temperature range to recover Kerosene, LGO,
light materials and fractionate into HGO, Atm residue
sharp light fraction
CDU SGRU To fractionate saturated light Refinery fuel gas,
overhead, stream and unsaturated naphtha to LPG, light and
naphtha from produce more valuable product heavy naphtha
HCK
LSWR from VDU To fractionate under reduced
PSR-1 and pressure to produce more
atmospheric valuable product
residue
Heavy NHT To treat untreated naphtha by Desulphurized
naphtha from adding H2 to remove H2S naphtha
SGRU and
DCU
Treated CRU Remove H2 from naphthenes to Gasoline and H2
naphtha from make aromatics
NHT
Treated ISOM Add branches to paraffines to Gasoline
naphtha from improve octane number
NHT
Gas Oil DHT Add H2 to break aromatic bond to Diesel
lower average molecular weight
and to remove H2S
MVGO and HCK Break carbon-carbon bond to Naphtha, Kerosene,
HVGO lower average MW and produce Premium and heavy

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 high yield of fuel product Diesel
Vacuum DCU To process heavy residuum to Naphtha, gas oil,
residue produce more valuable products LPG and coke
Table 2.2.2.A: Description of Process Unit in PSR-2

2.2.3. Melaka Group 3 (MG3)

In 2006, PP(M)SB had commissioned a new project which is called Melaka

Group 3 (MG3) Lube Base Oil Project. Basically this project is part of an expansion
project for PSR-1 Refinery which is fully owned and operated by PP(M)SB. Its
capacity is 16,000 barrel per stream day (BPSD). This project aim is to upgrade
bottom product of CDU-1, Low Sulphur Waxy Residue (LSWR) combined together
with imported LSWR to produce Group III Lube Base Oils which consist of 100N
and 150N. MG3 unit also produce Group II Lube Base Oil which is 500N.

2.3. Type of Services.

2.3.1. Technology and Engineering

Technology is a key of growth. PETRONAS pursues the strategic deployment

and application of technology to further enhance operational excellence and
maximize the potential of existing assets and emerging opportunities. Towards this
end, Technology Agenda is formulated to focus on technologies for future positioning
in both the upstream and downstream sectors.
In the short term, the technology is focusing on improving operational
excellence through better plant and Health, Safety and Environment (HSE)
performance. For the longer term, niche technologies are developed to enhance the
performance of the core businesses.
Upstream, the efforts are focused on developing technologies to increase
hydrocarbon resources and particularly in deep water areas and to enhance the
productivity and recovery the fields.

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 Downstream sector, PETRONAS seek to maximize
throughput and yield in oil, gas and petrochemical operations through the application
of technology. By studying and applying the appropriate technological solutions to
the processes, facilities and materials, PETRONAS continue to achieve higher levels
of operational excellence. Quality standard and demand for new applications increase,
range of petroleum are expanding, polymer and special product to meet the needs of
fast evolving world. Through strategic alliances with world-class institution,
renewable energy also developed to enable move to the next phase in becoming a
technology-driven company.

2.3.2. Logistic and Maritime

PETRONAS logistic and maritime business is mainly undertaken by our

shipping subsidiary, MISC Berhad. MISC is Malaysias leading international
maritime corporation and is currently the third largest shipping conglomerate in the
world by market capitalization. The principal businesses of MISC consist of ship
owning, ship operating, other shipping related activities, owning and operating
offshore floating facilities as well as marine repair, marine conversion and
engineering and construction works.
MISC has grown from being purely a shipping line in 1968 to become a fully
integrated maritime, offshore floating solutions, heavy engineering and logistics
service provider.
Through its subsidiary, Malaysia Marines and Heavy Engineering Holdings
Berhad (MHB), MISC has also built a strong foundation in the marine and heavy
engineering industry. MHB is well on its way to become a center of choice for marine
repair undertaking the repair and maintenance of LNG carriers, Very Large Crude
Carriers (VLCC), Ultra Large Crude Carriers (ULCC0 and other marine vessels and
marine facilities. Its marine conversion and engineering & construction business also
offers a range of construction and engineering services of oil and gas production

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facilities, contributing in particular to the development of PETRONAS deep water
operations.
MISC also offers total logistics services which include Freight Management,
Transportation and Warehousing services through its wholly owned subsidiary, MISC
Integrated Logistics Sdn Bhd (MILS). MILS specialized Project Logistic and Supply
Chain Management unit serve the upstream and downstream logistic requirement of
PETRONAS and the global energy industry.

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 3. WORK CULTURE

3.1. Occupational Health and Safety

In PP(M)SB, these maxims are emphasized over and over again to each and every
employees. This shows that the company shares the following characteristics:

Top managers demonstrate personal commitment to safety.

Safety goals are aggressive. A perfect example of an aggressive goal is Zero

Lost-Time Accidents.

Safe performance is rewarded. For achieving aggressive safety goals,

individual workers received compliment from higher management.

Safety takes priority over (false) economics. Here in PP(M)SB, operators are
encouraged to shut a unit down at the first sign of serious trouble. Historically,
far too many incidents in other plants are caused (or aggravated) by someone
who decides to keep running a unit despite indications that something is
wrong.

Protective clothing is required. Anyone in operations is wearing fire-proof

coveralls, a helmet, and safety goggles. Hearing protection and steel-toed
shoes also always brought together.

Contractors have been trained too. Before they can enter the plant, all
contractors have attended safety training given by experienced trainer of
PP(M)SB. Safety programs work! For example, a report by ChevronTexaco
claims that, between 1990-91 and 2000-01, safety programs reduced injuries
by 90%.

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 Safety equipment is well-maintained and readily available. Safety equipment
includes alarms, intercoms, sprinkler systems, self-contained breathing units,
and first-aid kits. Safety training is rigorous and continuous. Training topics
include:

1. Emergency procedures, including where to go and what to do

when they hear different alarms. Here in PP(M)SB, there are four
kinds of alarm sounds a fire alarm, a gas release alarm, an
evacuation alarm and all clear alarm. Possible gas releases include
hydrogen sulphide (H2S), which is actually more poisonous than
hydrogen cyanide, and carbon monoxide.

2. Maintenance safety. Historically, most refinery accidents occurred

during maintenance. Now, all proposed maintenance work must be
reviewed and pre-approved by operations team, engineering
department, crafts people and process safety management (PSM).
Lock-out and tag-out (LOTO) procedures that have been
implemented prevent unsuspecting employees from trying to start
equipment that shouldnt be started.

3.1.1 Safety Regulations

In the United States, safety regulations are issued and enforced by the
Occupational Safety and Health Administration (OSHA). Per OSHA requirements,
for every chemical in the plant, a Material Safety Data Sheet (MSDS) must be
available. An MSDS describes the substance, classifies its danger, if any, and
describes proper storage and handling.

Applicable Health and Safety Environment (HSE) law and regulations are as
follows:

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 Occupational Safety and Health Act 1994 (OSHA 1994)
Factory and Machinery Act 1967 (FMA 1967)
Environmental Quality Act 1974 (EQA 1974)
Fire Service Act 1988
Petroleum Safety Measure Act 1984

The important safety regulation that applied in PP(M)SB is zero tolerance

(ZETO) rules. This regulation is very strict in order to increase safety awareness
among the process area team. The last three rules among 10 ZETO rules are
applicable in process area. The rules implemented are:

1. Work with a valid work permit (PTW) required by the job

2. Verify energy isolation before starting work
3. Obtain authorization before overriding or disabling safety critical
equipment
4. Obtain authorization before entering a confined space
5. Protect yourself against a fall when working at height
6. Use the correct personal protective equipment (PPE) when handling
hazardous chemicals
7. Obtain authorization before excavation or entering a trench
8. Do not position yourself under a suspended load
9. Do not smoke outside designated areas or bring potential ignition sources
into process areas without authorization
10. Do not use your mobile phone/walkie-talkie while driving, follow the
speed limit and use your seat belt

There are three implementation principles which are important besides

implementing ZETO rules in PP(M)SB.

Safety first.
The rules are there to keep us safe
To drive higher levels of sustained compliance

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 To propel PP(M)SB towards HSE excellence
Stop work policy
Everyone needs to honor the intent and spirit of Stop Work Policy
It is about no harm, complying with the rules, looking out for
yourself and your colleagues and doing the right things
Fair play
There is no substitute for sound judgment and common sense
Sound judgment and common sense need to be exercised especially
in the application and enforcement of the rules
Bona fide with good faith

Non-compliance to ZETO rules or non-observance of safety precautions or

rules, or interfering or tempering with any safety devices installed in or about the
premise of PP(M)SB may be imposed with consequence management.

For the first non-compliance, immediate superior/supervisor shall then

conduct a one-to-one session/counsel with his/her employee.

For second non-compliance:

Similar non-compliance, Discipline Action Process and Procedure

(DAPP) shall apply
Different non-compliance, superior shall report the non-compliance to
HOD who in turn will conduct a one-to-one session counsel with
his/her staff.

3.1.2 Training Provided

Safety training and awareness

PP(M)SB practices very tight and strict safety rules and regulations.
Throughout my attachment in PPMSB, safety trainings and briefings were provided
time and again. Examples of safety training given are as follows:

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 Safety Induction Training
H2S Gas Safety Training
Confined Space Entry (CSE) Training
International Ship and Port Facility Security (ISPS) Training
Process Safety Management (PSM) Awareness Training
Health, Safety and Environment (HSE) Awareness Training
Zero Tolerance Awareness Training
Log Out Tag Out (LOTO) Training

The objectives of safety training are to:

Familiarize contractors on basic HSE policies, rules, regulation,

procedures and practices in PP(M)SB complex.
Meet legislation of PP(M)SB
Ensure contractor to follow HSE rules.

The safety induction trainer, Mr. Kamaruzzaman stress on the importance and
a few policies ofHSE that states:

Predominant status to HSE leadership and management

Conduct business in responsible manner.
Establish challenge annual goals for continual improvement.
Develop and maintain consistency
Prepared to effectively respond to emergencies
Proactively communicate, share knowledge and work closely.

Signboards and mottos reminding personnel to think and act safely are
available all over the plant. This shows that LOTO is important to avoid any
unwanted accident from happening. It is mandatory for all entrants of the process
area to put on proper Personal Protective Equipment (PPE).

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 The PPEs include safety helmet, fire retardant coverall,
safety spectacles, ear plugs, H2S gas mask pouch and safety shoes. In addition,
trainees were exposed to important safety procedures, such as Lock Out Tag Out
(LOTO), Permit To Work (PTW), Confined Space Entry (CSE) and Job Safety
Analysis (JSA).

Figure 3.1.2: Personal Protective Equipment (PPE)

In the plant, as a trainee, I have to identify and know all the safety facilities
and the locations of that facilities and how to operate them in case of emergency in
the unit where I is working. And all the safety equipment including the fire water
facility, gas detectors/ fire alarm points, safety showers, fire extinguishers, and also
breathing apparatus/ escape sets.

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3.1.3. Company Standard Operating Procedure (SOP)

In PP(M)SB, all work that implemented must review respective procedure

first before proceeding the work. Standard operating procedure (SOP) is very
important in the company because it will ensure the safety of either, the contractors,
engineers or technicians to do their job. That is why it is essential for any party from
any department to make guideline on any new job or new documentation and turn it
into a proper procedure.

In PESD, we use Plant Modification Project Management System (PMPMS)

as our governance. This governance system is basically a customized framework
adopted from PETRONAS Project Management System (PPMS).

PMPMSs gated framework involves dividing a projects life cycle into

distinct phases with the use of gates or interfaces that function as transition points
between phases. Processes are defined in each phase to assist the project team with
identifying relevant activities in developing a set of deliverables which ultimately
meet the defined decision review criteria established for each gate.

At the gate, the gatekeeper exercise authority and decides if the project should
proceed to the next phase, be shelved, or be recycled. There are four main phases
which are:

Framing
Front End Loading (FEL)
Execution
Start-up & Operation

Within the Front End Loading (FEL) there are three stages:

FEL 1: Initiation
FEL 2: Scope Selection
FEL 3: Scope Definition

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Figure 3.1.3: Plant Modification Project Management System Overview

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3.2. Work Environment

Working environment is really a new change forme and it is totally different

from studying environment. Adapting to this new environment is essential because in
the future my working environment will be much similar to this. In campus lifeI only
have to deal with my friends, who are in the same level with me and the issues that we
cope are often simple as assignments and projects within the university.
In the working environment, some of my colleagues are in the same age with
my parents which at first made me feel inferior. In PESD especially, we deal with a
lot of contractors and consultants with various ages and education background. At
first, it was hard to adapt and catch up with everything, but I took it as a challenge. As
time went by I was able to gain others respect by completing the tasks given to me. I
did made several mistakes along the way but my supervisor always advise me to learn
from my mistakes and not to repeat it.

3.2.1.Team Work.

In PESD, practice toolbox meeting every morning. A toolbox meeting is

basically a short meeting before everyone starts work to synchronize their work with
everyone. In PESD toolbox the engineers generally discuss and update about any HSE
issues regarding each others project. Example of HSE issues are, non-compliant
PESD contractors regarding PPE and PTW. Contractor unawareness of possible
hazards and dangers during working at site is another example. In the toolbox they
discuss together how to resolve these HSE issues.
Besides, the toolbox also update on any help needed for any projects that have
problems. The problems are discussed in the toolbox so that it can be viewed from
various perspectives as the toolbox is participated by engineers, technicians and
project control engineers. Some projects need some extra manpower so PESD
engineers and technician always help each other to resolve any problems aroused in
any project.

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 Another display of teamwork in PESD is between every
team member of a project. Each team member has their own role in the project. For
instance design engineers will make sure that any every design is reviewed thoroughly
so that there will not be any issue during construction. Construction engineers will
make sure that every project is constructed as per design and compliant to HSE rules
and making sure that everything is in good quality. Project control will have to make
sure that the project is done as per schedule and cost economic. So basically PESD
itself is a team where every player in it plays an important role. Teamwork is very
essential in a project.

Figure 3.2.1: Toolbox Meeting

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3.2.2. Work Ethics

Along my attachment period,I also had been taught about the ethics by the
engineers and technician of PESD when working. The work ethics include many
aspects such as in conversation, communication between two sides, in completing
tasks and integrity of an individual when working.
In other words, all the engineers and technicians here are full with integrity.
For example, eventhe tasks given had to be submitted within short time period, they
will not give any excuse but to complete them on time. Furthermore, staffs in PESD
do not go home on time. They usually work pass their working hours to complete their
work regardless of extra payment. This shows their self-belonging to
PETRONAS.Incertain case, integrity of an individual is very important when working
because it will decide the perception of the respective individual and related person.
For example, every engineer and technician always comply to codes standards set by
PP(M)SB because this will determine the integrity of their work.

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 4. Works Experience

4.1.Skills gained
4.1.1. Leadership skill

A leadership quality is the most important thing that should be implemented

and equipped to every student for his or her future benefit. Not everyone can be a
good leader. A good leader inspires the people under them.

In PP(M)SB, there are many talented and capable leader. Although there are
many problem faced in everyday work, they still manage to solve and control it
wisely. Here, meetings and discussions are routine and very common. By attending
meeting with PESD staffs especially a project meeting and toolbox meeting, I have
gained a lot of experience and learned the leadership quality from them. Usually, the
chairperson has a good communication skill, able to handle the meeting and has
tolerance in accepting every opinion from the floor members. As for my department,
the manager gives excellent perspective of leadership when I witnessed her conduct a
successful meeting.

4.1.2. Management skill

There are different levels in management depends on the post and position in
the company. As for me, Iam still in the lower level but I can observe good
management qualities since I was interacting with people from the upper level. The
scope of management is different for a different level.

The higher the level the bigger the scope and therefore more skills are
required. The lower level of management involves in managing people such as
operators and a good relation with them is needed. The medium level is more towards
controlling and making decision while the upper level involves in profit and company
image.

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 Furthermore, my supervisor Mr. Izzat taught me a lot on
management skills especially managing manpower. The most important thing in
managing people is knowing everyone'spotential and ability. Then only we can
arrange our manpower to the best because not everyone is created of equal capability

4.1.3. Troubleshooting skills

Mr. Izzat and Mr. Ehsan had taught me a lot on troubleshooting skills. Mr.
Izzat handed me my first technical task which is troubleshooting a problem on a
project, Odor Control System at Effluent Treatment System (ETS). The system is
quite a simple system which is controlling odor produced from the ETS by spraying
an odor control chemical around the ETS perimeter. The problem with the system is
that the nozzles are not producing enough mist.

As an engineer, knowing how to use troubleshooting tools is essential in as we

can reduce cost and risk of trial and error method. An engineers decision must avoid
trial and error blindly and analyze the problem thoroughly so that our decision is
correct and reliable.

4.1.4. Time management

Time limitation is another limitation faced by me during this internship

program. Working in PESD really taught me to manage my time with all the work. I
look up to all the staffs in PESD as they can manage their work even though there is
limited time.
As example some tasks requires urgent completion and some are not. Urgent
tasks which usually involve HSE or value adding to the company needs more
attention and priority than the others. It is important to segregate my tasks according
to their priorities so that they can be completed on time.

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4.1.5 Initiative

Initially, I was a bit lost during my first two weeks of my internship. I only
waited for my supervisor to give me work. But later on Mr. Izzat advise me to be
more proactive if I want to learn more. Then, I realize and took Mr. Izzat advice. I
then voluntarily ask Mr. Ehsan permission to join his FGRU project team so that I can
learn more. With that I got the chance to mingle around many experienced engineers
and got to learn more about the refinery itself.
The information about the refinery need to be self-learn and always enquire if
there is any doubt in understanding the terms used in a refinery. Luckily, there are
sources of information in PP(M)SB which is Refinery Management System (RMS) in
the intranet built as refinery database where everyone can share documents,
drawings, codes and standards.
During the third week of internship, I requested to join a rotating equipment
training at PP(M)SB Learning Center. Initiative is important if I want to survive as an
intern.

4.2. Knowledge

As a first time employee, working life was a totally new scenario for me, and I
did not know what to expect and what was expected from me. I alsowas not clear on
the work scope of a mechanical engineer and was not familiar with the working
procedure in the department. Moreover, most equipment which I saw in the planthad
not been covered thoroughly in the university syllabus and some of them are double
or triple the size of what I normally saw. Besides, what was covered in university
syllabus were only surface and most of them are theoretical and ideal cases.
Fortunately, the engineers and some technicians were very helpful and patient
to guide me along the way. Some of them even took the trouble to bring me to the site
and gave me full details explanation on the operation of certain equipment or systems.
I managed to enroll in a rotating equipment training organized by PP(M)SB. This

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training gave me more knowledge on the rotating equipment that are
common in PP(M)SB like pumps and compressors. The training basically explains
how the equipment works and its maintainability in detail.

4.2.1. Understanding Job Requirement

Basically PESD receives projects from a project initiator which can be from
any department. The design team of PESD and the initiator will then discuss and
challenge the projects scope until the scope is finalized by Project Review
Committee (PRC). Project scope can be classified as other alternatives that can be
considered the project which can be more economical or more relevant. After budget
proposal of the project is approved, appointed design team from PESD will come up
with a Basic Engineering Design (BED) which defines the detail scope of the project.
And cost estimation for the project. After Project Review Committee approves the
project then only Detail Engineering Design (DED) is done and the project is ready to
go into construction phase.

The entire above are referred from Plant Modification Project Management
System (PMPMS) which its governance are:

Codes and Standards

Design Integrity
Project Risk Management
HSEMS
Management of Change
Change Order Committee
Tender Committee
Project Review Committee

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 It is important for PESD to do the right project and doing the
project right as all of the projects are possibily adding value to the company, involves
HSE issues or sustaining the company's bussiness.

4.2.2. Completing Task Given On Time

It is important to complete task on time. Sometimes I have been given a few

tasks in a time and have to be submitted in short time. Time management is very
important in this matter because I have to divide equally my time to complete all my
works before the dateline. Moreover, it is one of the ethics while working because
give a full commitment and produced a quality work. I can also be a productive
person when I complete tasks given without any delay.

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 5. Discussion On Sustainability

5.1.Common Practice and Future Recommendations on:

5.1.1. Environmental

The PP(M)SB refinery site consist of 927 acres of undulating land which
situated at TanggaBatu Industrial Estate about 20 kmnorthwest from the Melaka
town.PPMSB facility is composed of refinery plant, tank farm, product blending,
marine and supporting facilities such as ETS, plant utilities etc.

All the activities of the plant somehow could affect the environment if the
plant would not be monitored from time to time. Therefore there is common practice
in PP(M)SB by come up with environmental monitoring activities that control and
monitor the activity of the plant without changing or increase the pollution.

The purposes of Environmental Monitoring are:

To ensure no impact to environment from the plant operations and

activities.
Based on Environmental Impact Assessment (EIA)
Based on mutual agreement between the project proponent and the
Department of Environment (DOE)

Environment and Other Regulation Standards:

Environmental Quality (Clean Air) Reg. 1978

Environmental Quality (Sewage and Industrial Effluents) Reg. 1979
Guidelines for The Siting and Zoning of Industries
Recommended Malaysian Air Quality Guidelines (RMAQG)
The Dutch Ministry of Housing, Spatial Planning and The
EnvironmentGuideline on Soil and Groundwater

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PP(M)SB Environment Monitoring Program:

Boundary noise level

Ambient air quality
Stack gases emission and dust particulate
Groundwater quality Pond and Storm water quality
Industrial wastewater quality
Sulphur dioxide (SO2) at ground level concentration
Monitoring of water quality, hydrocarbon and macro benthos in the sediment
Sludge farm licensing

Continuous environmental site assessment:

Sulphur Dioxide (SO2) Dispersion Study - Ground Level Concentration

(GLC)
Environmental Site Assessment for Optimization of Groundwater Monitoring
Odor Problem Study - ETS (in progress)

Reporting to department of environment:

Environmental Monitoring Report - Every 3 months

Noise level, water quality, air quality, stack gases emission, groundwater
quality, SO2 - continue gas monitoring analyzer, H2S - fuel gas analyzer
and GLC SO2.
Sludge farm management record.
Environmental Monitoring Report Every 6 months
Soil analysis of the land farm.
Environmental Monitoring Report Yearly
Soil conditions/surrounding area changes.

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5.1.2. Economical

Producers Margin Customers Margin

Figure 5.1.2.A: Market Forces

Cost.

The purchase of crude oil and external blend stocks accounts for about 85% of
a refinerys operating costs. About half of the remaining 15% is due to utilities in the
form of fuel and electrical power. Table below shows a typical breakdown of plant-
wide operating costs.
For the refining industry, labor costs are about 2.3% of sales compared to
7.6% for making automobile bodies, 8.3% for plastics, and 12.7% for
computers.About half of the energy used by a refinery is generated from crude oil
itself. Corporate overhead, interest payments, taxes, and capital depreciation are not
included in this analysis.

Table 5.1.2.A: Typical Breakdown of Refinery Operating Cost

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 The prices for crude oil are set by members of the
Organization of Petroleum Exporting Countries (OPEC). The members of OPEC
supply about 40% of the worlds oil production and own about 75% of the worlds
proven oil reserves. Consumption within OPEC is very low, so almost all of the
produced oil is exported.

Table 5.1.2.B: OPEC Oil Reserves and Production

Figure below illustrates how oil prices have changed since 1860. The bottom
trend shows the actual historical prices. The top trend converts the historical prices
into 2002 dollars. The big spikes in 1973 and 1978 to 1981 correspond to actions
taken by the OPEC cartel. In 1973, the first Arab Oil Embargo caused the average
price of oil to rise from about US$4 per barrel to more than US$10 per barrel. In
1978, the revolution in Iran triggered another steep increase in prices, which peaked
in 1981 at about US$38 per barrel.

Figure 5.1.2.B: Oil Prices Since 1861 ($US)

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 In response to these severe price increases, major oil-
consuming countries developed alternatives and implemented energy conservation
measures. The member countries of OEDC (Organization for Economic Co-operation
and Development) decreased oil demand from 44 million barrels per day in 1979 to
37 million barrels per day in 1985.
Slowly but steadily, oil consumption rose from 58 million barrels per day in
1983 to 75 million barrels per day in 2002. Most of the rise came from developing
countries. The price run-up in 2003 to 2005 was caused by increased rates of rising
demand in China and India, whose economies were booming. At the same time, there
was an inability of exporters to keep pace with demand and a lack of spare

Margins

Refinery margin depends on location, size, automation, complexity also crude

and product prices. A good indicator of margin is the crack spread the difference
in price between crude oil and refined product.

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 6. Conclusion and Recommendations

6.1.Overall Summary

Overall, I have developed unexpected numbers of skills when I attached in PESD.

A lot of experience that I have gained in PP(M)SB, and as mentioned above, I will
utilize the skills and knowledge that I had gained when I come back for my final year
in UTP soon. All the skills are very useful which are time management, leadership,
management, communication and interpersonal skills, adaptability, analysis and
troubleshooting skills. Most important element in order to strive for success is team
work.

Besides, I will share the knowledge that I gained here with my colleagues in my
institution so that it will not be wasted .besides we can exchange our knowledge and
compare the difference between other companys work culture and scope.

6.2. Recommendations

After 4 months of internship in PP(M)SB, I would like to suggest some

recommendation so that future practical student would get benefit from it. Below is
some of the recommendation:

Proper training module

PP(M)SB should give a proper training module to the new practical students.
As my observation and experienced on self-study. This is because of the contents in
the module covers all the basics details of what we will deal with in the next 8 months
of training period in the refinery. It is not necessarily to be exactly like staff training,
just a mini training module would be great in order for the interns to prepare
themselves better and become more adaptable and quick to learn. This should be done
intensively as an introduction during the induction week.

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 .

Projects and assignment

Projects and tasks are the important activities that will help the students to
understand further and thorough about the department and the company. However,
not all practical student in PP(M)SB are given specific projects. Hence, these student
could not contribute their knowledge to PP(M)SB and the students could not
developed their true potential which usually always happened towards trainee that
attached to process unit. Thus, it is recommended that the students should be given
specific projects during their stay at PP(M)SB.

Facilities

One of the most important thing during the training in PP(M)SB is that the
students should be provided with computers and email access. Even though, I have
been provided with a computer, some of the other trainee is not. This would give
problem to us since we have to complete the weekly and detailed reports as well as
projects or assignments.

6.3 Conclusion

The industrial training program has really achieved its entire target. This
program succeeds to show and guide me on the commitment required in a working
environment. Besides, internship industrial training at PP(M)SB gives opportunity for
student to integrate theory learned with practice while completing the
assignment/task given by engineers.

Trainees were also exposed to various professions such as planner, technician,

technical professional, design and construction engineers, technologist, and also field
operator. Besides, the student has a chance to be exposed to the work culture and

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industrial practices in oil and gas business. The exposure helps me a
lot as preparations for future employment.

In addition, the training program was not only beneficial for the student in
term of technical or academic base but the student had also developed various skills.
From the training program of three months duration, the student had developed skills
in work ethics, communication and management skills. Since there are different
levels of personnel, the student had experience in adapting to this kind of
environment.

Basically the program was successfully completed with all the objectives
highlighted by Industrial Internship Committee were achieved. PP(M)SB also had
equipped student with related information about engineering knowledge and other
related skills. The working environment exposed, lesson learned and experiences
gained are very useful for future career of the student. Therefore for the future of
University Technology of PETRONAS (UTP) and host company PETRONAS
Penapisan (Melaka) Sdn. Bhd. (PP(M)SB) should continue their efforts in giving the
perfect learning experience for students.

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 References

Ahmad, H. (2011, March). Plant Modification Project Management System Guideline.

PETRONAS Penapisan (Melaka) Sdn Bhd.

History of PETRONAS. (n.d.). Retrieved March 2014, from Wikipedia:

http://wikipedia.org/wiki/Petronas

HSES, S. (2010, December). HSE Management System Manual. HSEMS-10010. PETRONAS

Penapisan (Melaka) Sdn Bhd.

HSES, S. (2012, July). Personal Protective Equipment. HSEMS-20040. PETRONAS Penapisan

(Melaka) Sdn Bhd.

Melaka PSR-2 Refinery, Malaysia. (n.d.). Retrieved March 2014, from Hydrocarbon
Technology: http://www.hydrocarbon-technology.com/projects/melaka

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