Marketing Operations

Marketing & Operations (MO)

Marketing Operation group commenced functioning in 1986 i.e.since inception of Oil Industry Safety Directorate under the Ministry of Petroleum & Natural Gas.

Marketing Operations involve management of the supply chain ensuring that the national petroleum production is met on time at the most optimum placement cost all across the country while maintaining the highest standards of safety.   Towards this end, supply chain nodes had been set up to link the producing refineries with the consumption centers via multi-modal transport systems like Pipelines, Railway Tank Wagons and Road Tank Trucks.   These nodes includes Terminal  / Depots, Aviation Fuelling Stations, LPG Bottling Plants, Lube Blending / Small Can Filling Plants, Port based Import/ Export facility, Refrigerated LPG storage facilities etc. These locations receive products / inputs in bulk through the transport mode/s mentioned above; keep them in safe custody and transfer them to market friendly packages through specially designed filling systems. Most of these nodes are equipped with automated systems ensuring fail-safe, efficient and user friendly operations.

The core functions of Marketing Operations include:

• Identification and development of OISD standards for varied functions pertaining to the storage, transportation, handling and retailing of Petroleum Oil & Lubricants (POL) & Liquefied Petroleum Gas.
• Review of existing OISD standards for amendment or revision based on technological improvements for up-gradation of safety standard.
• Conducting Pre-commissioning Safety Audit (PCSA) of newly built-up locations and addition of facilities in existing locations to ensure ab-initio compliance of such facilities to OISD standards.
• Conducting External Safety Audits (ESA) of existing locations to assess in-depth their conformance status vis-a-vis relevant OISD standards and identifying areas where further corrective action is necessary.
• Conducting Surprise Safety Audits (SSA) of existing locations as a walk through audit to assess the operational readiness of the location in so far as adequacy and capability of the location in tackling exigencies are concerned.
• Assistance to Marketing functions of Oil Companies with respect to any technical issues pertaining to process safety.
• Compilation of accident / incident data and reporting of major incidents to MOP&NG with respect to Marketing Operations locations. For dissemination of learning and recommendations on various incidents to prevent such type of incidents at other locations, Case Studies and Safety Alerts are prepared and posted on OISD website/ Newsletter. 
• Monitoring compliance of recommendations of ESA/ SSA and maintaining follow up for expeditious liquidation of pending audit points.The status of implementation of the recommendations is also reviewed periodically with the OMC, in the Steering Committee Meetings and in the Safety Council Meeting.
• Investigation of major incidents and firming up recommendations for mitigating recurrence of such incidents.
• The Safety performance evaluation of PSU Marketing Locations for OISD Annual Safety Award, including awards to individuals for exceptional contribution in safety. The winner is selected based on evaluation criterion approved by a committee formed by MOP&NG. 
• Conducting workshop/seminars/conference to enhance safety awareness of Oil Industry Marketing personnel.
• Hosting of case studies and safety alerts on OISD website for dissemination of learning and recommendations on various incidents in related area to prevent occurrence of such kind of incidents at other locations. 

1.  Tank Farm
   
2.  Cross Country Pipeline custody transfer point
   
3.  Tank Wagon / Tank  Truck Loading / Unloading Facilities
   
4.  Product Pump House/ Air Compressor House
   
5.  Fire Pump House, Fire Hydrant & other firefighting facilities
   
6.  Quality Control Lab.
   
7.  Electrical systems including Incoming, Distribution, Lightening protection and PMCC
   
8.  Control Room for TFMS, LRCS (in case of automated locations), S&D functions and ERP systems
   
9.  Cathodic Protection systems
   
10. Storm water drainage / Effluent collection, treatment, OWS and disposal system.
11. Vapour Recovery Systems

 Similarly, the typical operating blocks of LPG Bottling Plants are:

1. Bulk Storage Vessels
2.  Cross Country Pipeline custody transfer point
   
3.  LPG Bulk Tank Wagon / Tank Truck  loading/unloading Facilities
   
4. Cylinder Filling Shed
   
5. Cylinder Storage Shed
   
6.  Product Pump / Compressor  and air compressor House
   
7.  Cylinder evacuation & Valve change facility
   
8.  Fire Pump House, Fire Hydrant & other fire fighting facilities
   
9. Electrical systems including Incoming, Distribution and PMCC
10.  Storm water drainage / Effluent collection, treatment and disposal system.
11. Control room with HC detection and Fire alarm annunciation system
    
12.  Cathodic protection systems

Key differentiating features of Marketing Operations systems (as against Refineries) are:

1.  Operation in discrete shifts (as opposed to 24X7 operating style of Refineries / Pipelines)
   
2.  Variation in work load in tune with market demand.
   
3.  Ingress of third party vehicles & personnel and engagement of contractors’ labour all through the working shifts, thereby increasing process variability.
   
4. Unavailability of regular employees in non-working shifts.
   
5. Human habitation in close proximity of the locations with nominal buffer space. 
   
6.  Absence of active source of ignition within location’s licensed area.

Out of all the Standards (STD)/ Guidelines (GDN)/ Recommended Practices (RP) of OISD, the following critically pertain to marketing operations; the list, needless to mention, is only indicative and not exhaustive. Critical issues covered in other relevant OISD STD/GDN/RPs e.g. OISD-STD-105 (Work Permit), OISD-STD-110 (Static Electricity), OISD-GDN-115 (Fire Fighting Equipment), OISD-STD-118 (Layout), OISD-STD-137 (Insp. of Elec. Equipment), OISD-STD-142 (Insp. Of fire fighting Equipment), OISD-GDN-145 (Internal Safety Audit), OISD-GDN-178 (Management of Change) remain applicable for marketing operations as well (in addition to other type of locations included in the scope of the said standards). Users are strongly advised to refer to ALL, repeat, ALL OISD Standards / Guidelines / Recommended practice before arriving at any conclusion.

A.   Design & Layout

B. Operating Practices

C. Environmental Protection

D. Safety & Fire Protection

E. Miscellaneous

The important documents referred to in the context of safety in Marketing Operations locations include:

•   QRA report / HAZOP Study report – findings and implementation.
•   PESO approved drawings
•   Mutual Aid and Emergency Response & Disaster Management  Plans.

Although the overall status of all OISD STD/ GDN /RPs are advisory in nature, 9 OISD Standards (indicated below) had become mandatory in Marketing Operations area by virtue of their having been included in the following statutory regulations:

•   Petroleum Rules, 2002
  
•   Gas Cylinder Rules, 2016
•   Static & Mobile Pressure Vessels (Unfired) Rules, 2016

List of 6 Nos. Standards included in Petroleum Rules, 2002

List of 2 Nos. Standards included in Gas Cylinder Rules, 2016

List of 1 No. Standards included in The Mobile Pressure Vessels (Unfired) Rules, 2016.

Total audits carried out by the Marketing Operations group in the last eight years are as under: