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Application of Linear Programming in Profit Optimization of Crude Oil Distillation Column of Port Harcourt Refinery, Nigeria

  • Popoola, L. T.
  • Susu, A. A.
  • Lateef, A. A.
  • Grema, A. S.
This study examined profit optimization of crude oil distillation column using linear programming. Experimental data obtained from a functioning crude oil distillation column of Port Harcourt refinery, Nigeria was used to validate the developed linear programming model written in MATLAB. The objective function was stated as difference between revenue generated from the sale of crude oil fractions and the cost of crude oil at different flow rates. The constraints were cases when each of the crude oil fractions was assumed to be most valuable product. The model equations were solved using multi objective constrained linear programming optimization tool box in MATLAB. Case 1 in which automotive gas oil (AGO) was assumed to be the most valuable product with maximum flow rate of 243.5 m3/hr gave the maximum profit of ₦15.71×106 /hr. The calculation was done on the assumption that crude oil purchasing cost was $75.18/Barrel (₦75,667.107/m3) at steady flow rate of 708.4 m3/hr. The maximum profit resulted from maximum income of ₦36.28×106 /hr generated from the sale of AGO as there tend to be linear and directly proportional relationship between profit and income. However, consideration should be given to operating costs required in refining crude oil into finished products for checking cost effectiveness of the whole process.
Select Volume / Issue:
Year:
2015
Type of Publication:
Article
Keywords:
Objective Functions; Constraints; Linear Programming; Profit Optimization; Crude Oil Distillation Column; Income
Journal:
IJASM
Volume:
2
Number:
3
Pages:
59-64
Month:
May-June
ISSN:
2394-2894
Hits: 1701

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