Global Reliability System Refining Congress - Argentina

1. Global Reliability System Refining Congress - Argentina D.E. Fitzgerald

2. EXXONMOBIL GLOBAL RELIABILITY SYSTEM Agenda • System Overview • Q&A Objectives • Review ExxonMobil’s Global Reliability System in sufficient detail to provide an understanding of how the system achieves • Improved facility reliability • Improved maintenance effectiveness

3. GRS - BACKGROUND GRS supersedes and replaces earlier ExxonMobil systems which date from the mid 90’s • GRS is a Global Common System, a common framework for Reliability Improvement • Facilitates Identification and Accelerated Application of Global Best Practices • The System has requirements, supported by practices; benefits are obtained from the Practices, the “how to’s”

4. Global Refinery Maintenance Costs1996 - 2002

5. Reliability & Maintenance Results

6. Run till next scheduled shutdown Meet run plan targets Keep within “Process Operating Window”. 100% Right First Time Reliability Definition Reliabilityis the probability that assets will produce the required product, at the target rate without interruption for a predetermined time, within applicable quality specifications, when the assets are operated within a specified design and operating envelope.

7. GRS – Intranet Web-based Manual Contents WhitePapers Practices ProcessSummaries Detailed Examples Overview (Optional) Table of Contents Introduction Element 1 Management Leadership, Commitment & Accountability Element 2 Risk Assessment & Management Element 3 Facilities Design& Construction Element 4 Process & Facilities Information and Documentation Element 5 Personnel and Training Element 6 Operations and Maintenance 6A Site Plans and Objectives 6B Operating Envelope 6C Equipment Strategy 6D Work Selection 6E Routine Work Planning, Scheduling and Execution 6F Turnaround/Shutdown Work Planning, Scheduling, and Execution 6G Loss Monitoring and Response 6H Operator Care 6I Abnormal & Non-Routine Operations 6J Performance Improvement Element 7 Management of Change Element 8 Third Party Services Element 9 Incident Investigation & Analysis Element 10 Community Awareness and Emergency Response Element 11 Global Reliability System Assessment and Improvement Appendix 1 Glossary Global Reliability System ELEMENT PurposeExpected ResultsRequirementsKey MeasurementsLinkagesInputs & Outputs Practices and Examples

8. 1 ManagementLeadership 2 Risk Assessmentand Management 6A Site Plans & Objectives 6B Operating Envelope 6C Equipment Strategy 6D Work Selection 6F TA/Shutdown Planning,Scheduling & Execution 6E Routine Work Planning,Scheduling & Execution Improve 6J PerformanceImprovement 11 GRS Assessmentand Improvement Reactive 9 Incident Investigationand Analysis System Simplified Flow Effective Planning, Scheduling and Execution Proactive Leadership, Plans,Objectives and Strategies Execute Plan 6H Operator Care 6G Loss Monitoringand Response 6I Abnormal andNon-Routine Operations Analyze OIMS andSupportingElements 3 Facilities Designand Construction 4 Process & FacilitiesInfo & Documentation 5 Personneland Training DenotesOut of Program Work 7 Managementof Change 8 Third PartyServices 10 Community Awareness

9. GRS OVERVIEW GRS drives the following key concepts . . . PROACTIVELY DEFINE CAPABILITY and NEEDS of the process and equipment based upon criticality OPERATE WITHIN CAPABILITY of process and equipment Flawless Operation EFFICIENTLY and EFFECTIVELY PROVIDE NEEDS of equipment and process ANALYZE LOSSES to drive continuous improvement Stable Unit Reliable Equipment Design it Right Operate it Right Fix it Right • Complete 100% • of Annual Plan • All work planned • and scheduled • Job Packs developed • and used • Correct spare parts and tools available • Repairs completed right first time and on schedule • Repairs documented • Operatewithin defined envelopes • Structured rounds to monitor & care for equipment • Planned response to unit upset or non-routine operation • Monitor losses daily against set targets, identify cause, take corrective action • Equipment • design supports high reliability • Changes managed • Equipment maintenance needs and operating envelopes defined • Training and procedures provided to Operations and Maintenance RELIABILITY MINDSET SKILLED WORKFORCE EFFECTIVE LEADERSHIP

10. GRS OVERVIEW In order to achieve this RELIABILITY, • DEFINE the CAPABILITY of the process and equipment • Operating Envelopes (6B) • Equipment Strategies (6C) • Ensure that we OPERATE WITHIN THAT CAPABILITY • Operator Care (6H) • Abnormal and Non-Routine Operation (6I) To be COMPETITIVE, • OPTIMIZE support effort consistent with the potential loss and probability of that loss • Work Selection (6D) • Annual Planning (6A) • Planning, Scheduling and Execution (6E/F)

11. ELEMENT 1 - LEADERSHIP Expected Results: Sustainable reliability, availability and manufacturing (maintenance and operations) cost performance that is consistent with Business objectives An organization that understands and is working to achieve the site's reliability, availability, and manufacturing cost objectives Leadership and commitment that is demonstrated through management behavior and visible actions

12. Key Linkages (6C) 6C Equipment Strategies 6A Site Plans and Objectives PM scope & frequency Breakdown / Discretionary Work Critical Operating Scenarios Critical Equipment Monitoring tasks based on criticality 6D Work Selection 6B Operating Envelopes 1 Year Plan Operating Envelopes for Process Critical Parameters Latest Acceptable Completion 6H Operator Care 6I Abnormal & Non-routine Operations 6E Routine Work P/S/E 6F Turnaround P/S/E Effective/efficient field rounds & console monitoring Effective response to minimize loss Effective, efficient unit maintenance

13. GRS OVERVIEW Element 6C - Key Requirements • Equipment Strategy practices defined for each equipment type: - fixed equipment - machinery - electrical - instruments - analyzers -infrastructure • Strategy defines the interventions necessary to protect the reliability of the equipment • predictive and preventive maintenance • operator monitoring tasks • design improvements • job packs and spare parts • Strategies are living documents - continuously improved and updated with • changes in operating context • learnings from repairs and failures

14. GRS OVERVIEW Will Time Based PM Task be effective Will Condition Monitoring Task be effective Element 6C - Key Requirement Strategies developed using RCM principles

15. Key Linkages (6B) 6C Equipment Strategies 6A Site Plans and Objectives PM scope & frequency Critical Operating Scenarios Breakdown / Discretionary Work Critical Equipment Monitoring tasks based on criticality 6D Work Selection 6B Operating Envelopes 1 Year Plan Operating Envelopes for Process Critical Parameters Latest Acceptable Completion Date based SDD’s 6H Operator Care 6I Abnormal & Non-routine Operations 6E Routine Work P/S/E 6F Turnaround P/S/E Effective/efficient field rounds & console monitoring Effective response to minimize loss Effective, efficient unit maintenance

16. Integrated Operating Envelope Tier I Limits Tier 3 Limits Tier 2 Limits Many Optimisation and lower impact Reliability related Envelopes High impact Reliability Envelopes Predominantly SHE and higher impact Reliability related Envelopes OPERATING ENVELOPES “Integrated Operating Envelope” If an operating parameter has multiple limits, the “Integrated Operating Envelope” is the result of the most restrictive of these limits

17. GRS OVERVIEW WORKSHOP OperateMonitorBasic ServiceSpecial ServiceRepairDiagnoseModifyRedesign Control Process Visual Equipment Checks Clean Equipment Check Critical Devices Replace Corroded Pipe Equipment PM/Pd Data Analysis New Design to Meet SHE Requirements Identify/ Eliminate Unjustified or Idle Equipment Check Process Conditions Grease/Oil Equipment Check Equip Temp, Pressure, Amps, etc..... Troubleshoot Instrument/ Electrical Problems Replace Leaking Valve Optimize PM/Pd Tasks and Frequency Design Change to Meet Changed Process Requirements Change Oil Make Rounds Tighten Belts Change to New Type Pump Seal Check Lubrication, Look for Leaks Equipment PM Tasks Dismantle/ Repair/ Reassemble/ Reinstall Failed Equipment Replace Filters Equipment Failure Analysis Housekeeping Check Vibration Repair Leaks Revise Piping or Exchanger Capacity Creep Clean Exchanger Change Safety Valves Bad Actor Identification and Corrective Action Remove Field Equipment for Shop Work Improve Equipment Access Select and Install New Bearing Minimum Tasks Performed Which Parts are Operator Care? Traditional State GAP GAP GAP Operations Maintenance Engineering Expectations with GRS Operator Care Maintenance Engineering OPERATE IT RIGHT MAINTAIN IT RIGHT RE-DESIGN IT RIGHT

18. Key Linkages (start & end 6D, 6E & 6F) 6C Equipment Strategies 6A Site Plans and Objectives PM scope & frequency Critical Operating Scenarios Breakdown / Discretionary Work Critical Equipment Monitoring tasks based on criticality 6D Work Selection 6B Operating Envelopes 1 Year Plan Operating Envelopes for Process Critical Parameters Latest Acceptable Completion Date based SDD’s 6H Operator Care 6I Abnormal & Non-routine Operations 6E Routine Work P/S/E 6F Turnaround P/S/E Effective/efficient field rounds & console monitoring Effective response to minimize loss Effective, efficient unit maintenance

19. (Not met criteria) All Work REJECT Screener Out-of-Program In-Program (future) Breakdown (Functional Failure) Annual Program TA Program Discretionary NonCRIT Plan & Schedule (based on resource + material availability) Standard Repair Timeframe by Equipment Class WORK SELECTION - Work Flow VCRIT 6E/6F PS&E Break-in to Schedule

20. WORK SELECTION – Discretionary Items Benefit to Cost • A target benefit-to-cost ratio is defined by Site Management as the • hurdle for task screening. • Basis is short term, both for benefit and cost. ACCEPTED REJECTED All items that do not clear the hurdle are rejected. All items that clear the hurdle are selected

21. GRS OVERVIEW Critical few jobs · Multi-Month affecting many people - significant impact on production Maintenance - Updated monthly · Outlook (3 month) Consistent with process three month outlook · Detailed activity plan · Library of these kept on file · Planning Job preparation activities · Job Must be value added (criteria · defined) Pack · Small jobs don't need Job Pack Short-term Updated weekly · Maintenance Weeks 2-4 may have unresolved issues (evolving) · Week 1 has no unresolved issues, shows · Schedule (4 week) when jobs will be done - who will do the jobs - and what resources they need - represents the 5 daily schedules for Week 1 - Consistent with Process 4-Week Schedule · Element 6E - Routine Work PS&E

22. GRS OVERVIEW 5% for Break-ins Crit Equip/Events with job packs and spares Usually Week 4+ (ex small repairs) to allow good planning and scheduling Operations justify move to weeks 2/3/4 and define if any planned work slips 10% requested discretionary work screened/approved “out-of-program” with higher hurdle 95% Compliance to schedule 25% for scheduled Breakdown Mtce to repair failures Resource Requirement 60% of annual work ($$) is predefined and risk screened in an approved Annual Program Element 6E - Improved State Contingency Contingency Contingency Contingency Repairs Repairs Repairs Repairs Repairs Repairs Repairs Only schedule when ready to execute (inc matls) PM’s PM’s PM’s Zero Program Slippage PM’s PM’s PM’s PM’s Improve Work Improve Work Improve Work Improve Work Improve Work Improve Work Improve Work Week 1 Week 2 Week 3 Week 4

23. GRS OVERVIEW Element 6F - Turnaround PS&E • Site long range plans developed to identify timing for SD/TA’s and long term milestones • Provide Steering Committee and organizational structure to manage TA • Establish the TA strategies, objectives, basis, and key constraints • Utilize a milestone planbased on SD/TA complexity covering all major activities • Integrate Maintenance, Operations, Inspection & Projects plans & schedules including pre and post work activities • Identification of critical and near-critical path work; includes risk assessing potential discoverables and impact on SD/TA objectives • Schedule key reviews throughout Planning & Scheduling, Execution and Closeout to steward progress, cost & performance

24. GRS OVERVIEW Element 3 - Facilities Design & Construction Expected Results: • New facilities achieve reliability, availability and costs consistent with the business objectives • Site design and equipment selection incorporates Reliability Best Practices. Reliability Reviews conducted by knowledgeable site representatives and technical specialists • Facilities meet the requirements of the Global Reliability System prior to commissioning and startup • Operating Envelopes • Equipment Strategies • Operator Care Tasks

25. GRS OVERVIEW PROACTIVELY DEFINE CAPABILITY and NEEDS of the process and equipment OPERATE WITHIN process and equipment CAPABILITY Flawless Operation Provide equipment and process needs EFFICIENTLY and EFFECTIVELY ANALYZE LOSSES to drive continuous improvement Stable Unit Reliable Equipment Design it Right Operate it Right Fix it Right • Complete 100% • of Annual Plan • All work planned • and scheduled • Job Packs developed • and used • Correct spare parts and tools available • Repairs completed right first time and on schedule • Repairs documented • Operatewithin defined envelopes • Structured rounds to monitor & care for equipment • Planned response to unit upset or non-routine operation • Monitor losses daily against set targets, identify cause, take corrective action • Equipment • design supports high reliability • Changes managed • Equipment maintenance needs and operating envelopes defined • Training and procedures provided to Operations and Maintenance RELIABILITY MINDSET SKILLED WORKFORCE EFFECTIVE LEADERSHIP

26. GRS OVERVIEW 6E - Equipment Data 6F - Equipment Data 6G - Loss Data 6H - Observations 6J - Analyze 6A Operations & Maintenance Activities Plan 1 ~~~~~ 2 ~~~~~ 3 ~~~~~ 4 ~~~~~ Incident 9 - Incident Investigation 9 - Incident Data NewTechnologyand Network BestPractices Information for: Equipment Strategies 6C Operating Envelope 6B Element 6G/9 linkage to 6J/6A External Benchmark $

27. GRS OVERVIEW 6J/6A - Performance Improv. /Site Plans and Objectives • Each Reliability Plan should include the same specific topics • Section A - Management Summary • Section B - Basic Assumptions and Alignment with Refining Business Plan • Section C - Current Performance and Outlook • Section D - Base Reliability & Maintenance Activities • Section E - System Assessments and Gap Closure Plans • Section F - Focused Reliability Improvement Activities • Section G - Turnarounds • Section H - Resource Planning • Site management should determine level of detail required for each topic

28. GRS OVERVIEW Event Loss >50K$? Enter into Database Tool Categorize Per RCFA STD (+ GRS 9 considerations) Near Miss or Greater Potential? (Actual x Potential x Barriers) Actions for tracking and follow-up High CFWT (Causal Factor Why Tree) Medium Link RCFA Factors to GRS Elements Low HLVI’s for sharing per GMOP 9.1 5 - WHY Site only Element 9 - Incident Investigation & Analysis

29. GRS OVERVIEW GRS drives the following key concepts . . . PROACTIVELY DEFINE CAPABILITY and NEEDS of the process and equipment based upon criticality OPERATE WITHIN CAPABILITY of process and equipment Flawless Operation EFFICIENTLY and EFFECTIVELY PROVIDE NEEDS of equipment and process ANALYZE LOSSES to drive continuous improvement Stable Unit Reliable Equipment Design it Right Operate it Right Fix it Right • Complete 100% • of Annual Plan • All work planned • and scheduled • Job Packs developed • and used • Correct spare parts and tools available • Repairs completed right first time and on schedule • Repairs documented • Operatewithin defined envelopes • Structured rounds to monitor & care for equipment • Planned response to unit upset or non-routine operation • Monitor losses daily against set targets, identify cause, take corrective action • Equipment • design supports high reliability • Changes managed • Equipment maintenance needs and operating envelopes defined • Training and procedures provided to Operations and Maintenance RELIABILITY MINDSET SKILLED WORKFORCE EFFECTIVE LEADERSHIP