The thrust of lAG's business approach is to develop technology-driven revamp projects,
principally in catalytic cracking and catalytic reforming, in addition to mechanical
replacements or upgrades.
Upon analysis of the existing operating unit data,
our initial effort is to identify new technology that can be applied cost
effectively and to develop a project with increased operating revenues
that supports a return on investment that meets the owner's funding criteria,
typically an IRR in excess of 30%.
lAG and the technology provider, typically UOP,
are willing to perform preliminary yield studies and economic
evaluations without initial compensation as a business development cost.
If preliminary evaluations do not yield an economically
attractive project to the owner,
lAG will "stand-down" and look for other opportunities.
Because of this business development cost,
we can only afford to pursue projects that hold the most promise
of being installed.
lAG is unique in the sense that we take the initiative to develop the project,
and interject our "know-how" in technology,
economic evaluation, and EPC project management into the project
development and planning, thus providing a much needed service to
sometimes understaffed owners.
It is also somewhat unique to lAG, that throughout the course of
the project development, the likelihood of project funding approval
is enhanced by our constant sensitivity to economics and return on investment.
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Alliance Process
To start the process, lAG will supply to the owner Data Gathering Sheets
which will ask for specific information on your current FCC Unit
conversion and yields. Once received, we will set up a FCC Model to
analyze the Technology Pieces with a focus of minimizing the loss of
"high value products" and maximizing the production of valued products.
This emphasis can be upon any of the product yields from your FCC Unit
(Cat Gas, Slurry, LCO, etc.) and our target will become those components.
The model will be run using all available technology improvements offered by a
licensor such as UOP, and a determination will be made based on cost curve
data for the most economical approach to attaining the optimum
Yield Improvement vs. Project Cost
economics. A meeting will be scheduled to review the "Yield Data" and proposed
Technology Improvements to the process unit including any other refinery
requirements which further enhance the viability or integrity of the project.
When preliminary evaluations produce a potentially attractive project, and with
an indication of owner interest to go forward, lAG will pursue sufficient
scope definition to develop a complete lump sum proposal for final negotiation
and acceptance by the owner. Realizing that each customer has unique operations,
engineering, and financial requirements, we can develop a package that best meets
your desired results in all areas.
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Proposal
Some of the major components of our proposal will be:
EXECUTIVE SUMMARY
-
We will provide an Executive Summary in order to give you a quick overview of our offer.
It will contain highlights of the specific advantages that the project and the
lAG Alliance offer.
SCOPE OF WORK
-
We will provide the definition and division of responsibility for the
physical changes to be made during unit revamping. The objective will be
to finalize the basic & detail engineering for the proposed technology
improvement applications and to insure a timely fabrication and construction
schedule that supports your next planned turnaround.
PROJECT EXECUTION
-
Our proposed method of execution will be developed in association with
our alliance partners and project team members. lAG will provide overall
Program Management and maintain single-point accountability to the owner.
Together, lAG and its team members will be offering an integrated team
with extensive experience in FCC facilities. We believe that the lAG Team
will easily integrate with the Refinery project leadership and personnel so
that the stated objectives of the project will be successfully achieved.
The lAG Team will be a team of preferred providers who are all known to
the owner. This site-specific familiarity and synergy will enable team
members to perform efficiently, and we pass-on this efficiency to the owner
in the form of a lower cost.
COMMITMENT
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The upper management of all team members will convey their highest
interest and commitment to the success of this project. We most
certainly believe this will be demonstrated through the assignment of
a highly qualified team and our ongoing commitment to working closely
with the owner to meet the objectives of this project. We have a desire
to become your partners in the development of this enterprise in a creative
and cost-effective manner. Our team will have the talent and experience to
meet, and we believe, surpass your objectives.
COMMERCIAL
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By fully integrating the licensor and optimizing the advantages of local
engineering and construction skills and experience, we believe we can offer
a unique blend of experience at competitive and well valued commercial terms.
We can offer our EPC services for specific scopes of work on an all-inclusive
Total Firm Lump Sum Price,
which will include all costs, including, but not
limited to, applicable taxes, including sales and use taxes, fees, duties
and the like related to the performance of the work.
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Project Decision
Up to this point the owner has expended no funds in Licensor Selection,
AFE preparation, Economic Analysis, Engineering evaluation, or
constructability studies. lAG, UOP, and the other providers of services
have performed these functions free of charge to the owner.
This is based upon our common agreement that should the project
be economically viable, the owner would use all diligence in
proceeding with the proposed changes.
With the proper understanding and owner commitment, as a part of
final negotiations, lAG is also in a position to offer an open-book
estimate review of subjective issues, and limited process guarantees.
At this point the owner must make a decision to expend funds. lAG would ask
that a Turnkey Contract be awarded based on the Technical/Commercial
Proposal supplied at the culmination of the Yield Improvement Study.
Upon award of the contract the proposal becomes a project, and the
Execution Process
begins.
We hope this gives you a better understanding of our project methodology
and the concepts used by lAG to bring a project to realization.
More importantly, we have tried to illustrate the advantages and benefits
that lAG can bring to the table in helping the owner to develop
economically attractive technology improvements to existing operating units.
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