Phillips 66: Humber Refinery

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Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Contents

Master Index of Articles about Phillips 66

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Humber Refinery

Humber Refinery' The Humber Refinery is a British oil refinery in South Killingholme, North Lincolnshire. It is situated south of the railway line next to the A160; Total's Lindsey Oil Refinery is north of the railway line. It is situated approximately ten miles north west of Grimsby, and processes approximately 221,000 barrels (35,100 m3) of crude oil per day. It is owned by Phillips 66 since the split of ConocoPhillips on 1 May 2012. Photo Credit: Wikipedia David Wright Creative Commons Attribution Share-alike license 2.0

Description of Humber Refinery

The Humber Refinery is a British oil refinery in South Killingholme, North Lincolnshire. It is situated south of the railway line next to the A160; Total's Lindsey Oil Refinery is north of the railway line. It is situated approximately ten miles north west of Grimsby, and processes approximately 221,000 barrels (35,100 m3) of crude oil per day. It is owned by Phillips 66 since the split of ConocoPhillips on 1 May 2012[1]

At the time of construction Continental Oil (Conoco) owned the Jet distributor of petrol. Jet was formed in 1953 and was based nearby in Keadby in northern Lincolnshire. In June 1961 Continental Oil bought Jet Petroleum, and its 400 garages. In 1960 Continental had bought the German petrol company Sopi, and its 300 garages. The refinery was first planned in July 1964, and in August 1964 it was expected to cost £15 million, and to be operational by late 1966.[2]

Construction

Construction started in August 1966. It was built for Continental Oil (UK) Ltd, based in Ponca City, Oklahoma. It was originally estimated to cost £25 million but cost twice that. It was built by Power-Gas Corporation, a subsidiary of Sheffield-based Davy-Ashmore who had a £22 million contract. It should have been built by November 1968, and the delay in completion was blamed on bad weather in the summer of 1968, and the 1968/9 winter. Davy-Ashmore lost £12 million on the project. The railway sidings were installed by the Ward Group of Sheffield. 75 miles of steel tubing were built by the Corby steel works for £250,000. In September 1967 there were gales across the country and a man was killed on the site when an engineering shed fell on him. In October 1967 there was a strike, and 120 workers in the Constructional Engineers Union were sacked. In January 1968 a 20-year-old worker from Dublin was killed when a 275-ton coke drum, being raised by a twin jib rig onto a gantry, fell 50 feet to the ground, causing the worker to be crushed by a crane.[3]

Production

Humber Refinery opened in July 1969, producing around 80,000 barrels per day (13,000 m3/d). At the time of its opening Britain was using around 83,000 tons of petroleum coke a year, most of which was imported, and used in aluminium smelting. Much of the crude oil came from Libya, as Continental Oil had large discoveries there, and also in Dubai. The refinery had its own fire brigade. This was used on 8 August 1972 when there was a fire, with 50 feet flames, and a 49-year-old man from Grimsby was killed. In the mid-1970s there was a £45 million expansion of the plant to take its processing output to 130,000 barrels per day (21,000 m3/d). At this time, around a third of the oil it processed came from the North Sea. It was the first refinery to receive oil from British National Oil Corporation's (Britoil) Thistle field on 15 April 1978. In the mid-1990s Conoco invested £500 million in the plant.[4]

Operations

The notable areas of operation include an alkylation plant, the UK's only premium petroleum coke (for smelting steel) processing facility including three calcination rotary tunnels. 700,000 tonnes of petroleum coke are produced each year. 70% of the refined oil is for UK use, the rest is exported to mainland Europe. It is the world's largest producer of speciality graphite cokes. It is the largest anode coke producer in Europe. Crude oil arrives by tanker at Tetney in East Lindsey, then stored at the Tetney oil terminal, before being pumped underground to the refinery for refining. 130,000 barrels (21,000 m3) of petrol are produced per day, most of which is loaded onto tanker lorries at Immingham Dock. A purpose-built warehouse on the docks stores the petroleum coke before it is shipped out.[5]

News and Views at Humber Refinery

April 4, 2017: Phillips 66 Proposes to Close Warwick Office in UK Eliminating 59 Positions

Phillips 66 Proposes to Close Warwick Office in UK Eliminating 59 Positions. Phillips 66 confirmed that there are proposals to shut down its 120-employee office in Warwick in the UK. It is currently unknown what will happen to the 120 jobs people hold at the office. Phillips 66's logo was displayed on Warwick Castle during the Carols at the Castle event in December, where A warm-up of Christmas songs were also provided by the Phillips 66 choir, as part of the company's community involvement. Photo: Warwick Courier

The Warwick Courier reported on April 4, 2017 that Phillips 66 confirmed that there are proposals to shut down its 120-employee office in Warwick in the UK. It is currently unknown what will happen to the 120 jobs people hold at the office but it is believed the organisation will try and relocate some of the jobs to its other two sites in London or at its Humber Refinery in Lincolnshire.

“Phillips 66 is committed to its future in the UK, as demonstrated by continued investment," said a spokesman for Phillips 66. "The UK businesses recently initiated a review to ensure it was well-positioned for a sustainable future in a challenging and ever-evolving market. The review has resulted in a proposed repositioning of our business. The proposal streamlines our support functions and consolidates the business into two core locations: the Humber Refinery, the heart of our UK business, and London, the commercial and trading centre of the UK. As a result it is proposed that our Warwick office will be closing first quarter 2018. The proposed repositioning is subject to the completion of the necessary Information and Consultation processes. It is proposed that the majority of our Warwick-based Marketing roles, with some exceptions, will re-locate to our Aldersgate office in London. In total 116 Warwick-based employees are impacted by this proposed repositioning. Whilst we hope to be able to relocate a significant number of employees from Warwick and have them continue their roles from our London or Humber office, we do recognise the challenge of this proposed change. We expect that a number of employees will elect not to relocate, and we anticipate 59 roles (of which 12 of these are currently vacant) will be eliminated across the three locations as a result of the proposed repositioning."[6]

February 8, 2017: Phillips 66 Warns of Employment Scam at Humber Refinery

The Grimsby Telegraph reported that Phillips 66 Humber Refinery is warning about a job offer scam it has been embroiled in. Would-be employees have been asked in a phishing email to provide application fees in the scam. In a statement, the company said: "These fraudulent communications have been sent to individuals through various channels and are typically distributed via email, social media or by phone solicitation in which individuals are encouraged to provide personal or financial information." Phillips 66 enjoys phenomenal responses to recruitment campaigns, often done in conjunction with the Grimsby Telegraph. The company's name and logo has been used in the elaborate phishing hoax, which looks to capitalise on the fact Phillips 66 is seen as a top employer. "Email communications from our company will never request sensitive financial or personal information such as social security number, passport information, date of birth, credit card numbers, banking information, etc."[7]

January 10, 2017: Darren Cunningham Replaces Julian Stoll as New Refinery Manager at Phillips 66's Humber Refinery

The Grimsby Telegraph reported on January 10, 2017 that Darren Cunningham has been appointed as the new refinery manager at Phillip 66's Humber Refinery replacing Julian Stoll. Cunningham has previously been the refinery manager at Bayway Refinery for the past four years and returns to Humber after previously serving as operations manager for Humber Refinery until 2008. Cunningham will be Humber's fourth refinery manager in little over four years, following Julian Stoll, Brian Coffman and Mike Wirkowski, who left in 2012.

Stoll has been promoted to regional vice president for refining and will be relocating to Phillips Headquarters in Houston, Texas. Under Stoll's tenure, Humber Refinery completed a mega-turnaround, a feat unlikely to be seen again, as the largest shutdown in the site's near 50-year history was twinned with the replacement of the crude oil reception pipeline beneath the Tetney coastline. Following the huge projects, timed to coincide, Humber was named number one business unit in the entire Phillips 66 portfolio, recognizing operational excellence. At the time of the award, Mr Stoll said: "It was a tremendous performance. We shut down the most complex UK refinery, repaired it, brought it back online and ran for the rest of the year without any serious process issue. I've never seen that before, it was really world class performance. It was very fulfilling."[8]

July 31, 2015: Major Turnaround Completed at Humber Refinery

Businesswire reported on July 31, 2015 that Phillips recently completed a major trnaround at Humber Refinery..[9]

June 8, 2015: Planned Maintenance Underway at Humber Refinery

Nasdq reported on June 8, 2015 that planned maintenance is underway at Humber Refinery. Phillips has planned maintenance underway at five of its worldwide refineries: Humber Refinery, Wilmington Refinery, Ponca City Refinery, Wood River Refinery, and Whitegate Refinery. Phillips did not indicate whether fuel output may be impacted, and representatives from Phillips 66 weren't immediately available to comment.[10]

May 5, 2015: Phillips Makes Multi-million Dollar Investment in 4.5km Subsea Pipeline to Humber Refinery

The Grimsby Telegraph reported on May 5, 2015 that Phillips is embarking on major works to replace the 4.5km subsea pipeline that brings crude oil to shore at Tetney. "This is an exciting and challenging project that has been in the planning for more than four years," says Humber Refinery general manager Julian Stoll. "The team have been working extremely hard to ensure that the pipeline replacement is uneventful and, most importantly, safe. We appreciate the support from stakeholders across the region. A project of this magnitude represents another major reinvestment in the area by Phillips 66, and is very important as it provides the ability for us to continue to successfully operate the refinery into the future."[11]

April 22, 2015: Conservative Business and Energy Minister Matthew Hancock Visits Humber Refinery

Conservative Business and Energy Minister Matthew Hancock Visits Humber Refinery. Conservative business and energy minister Matthew Hancock, second left, and Martin Vickers, left, prospective parliamentary candidate for Cleethorpes, are welcomed to the Phillips 66 refinery, Killingholme, by Julian Stoll, second right, general manager Humber, and Jacques Beuckelaers, right, general manager of Total refinery. Picture: Rick Byrne

The Grimsby Telegraph reported on April 22, 2015 that he Minister of State for Business, Energy and Enterprise Matthew Hancock joined Conservative candidate for the Cleethorpes constituency, Martin Vickers, on the campaign trail speaking to workers at Phillips 66 in South Killingholme, before moving on to the docks and canvassing in the town of Immingham. Hancock also met with Julian Stoll, Humber general manager of Phillips 66.[12]

November 13, 2014: "Safety is the Humber Refinery’s Number One Priority"

The Grimsby Telegraph reported on November 13, 2014 that that contractors voted to go back to work today, following days of walkouts amid safety concerns. "This morning, contractors have returned to work," said spokeswoman Nina Stobart. "Phillips 66 will engage in open and honest dialogue to address any concerns outstanding and will work to reach a satisfactory conclusion. Safety is the Humber Refinery’s number one priority."[13]

Despite the vote for 'yes', one disgruntled worker said: "They've asked for a show of hands and the group is clearly split; they're not going to do anything until someone is killed." Contract workers initially walked out on Monday after claiming that refinery bosses had reneged on an agreement to meet them in person following a gas leak at the site last Wednesday, which left two people requiring hospital treatment. “The employer has climbed down a bit but Phillips 66 do not want us in the meetings with contractors as they seem to be anti-Union but they are creating a recipe for disaster," Shaune Clarkson, regional organiser for GMB.[14]

November 13, 2014: Workers Return to Work at Humber Refinery After Wildcat Strike Over Safety Issues

BBC and Harrogate reported on November 13, 2014 that striking workers have returned to work at Phillips 66's Humber Refinery after three days of industrial action claiming safety concerns following a gas leak last week in which two people were taken to the hospital. Engineering construction employees at the Humber Refinery decided at a mass meeting to return to work after spending three days on strike. The GMB union, which said it was aware of a health and safety issue on the site, said a meeting was being held between shop stewards and managers to finalise details of a return to work. Phillips said it would hold meetings with staff and the managers of contract companies and would "engage in open and honest dialogue to address any concerns outstanding and will work to reach a satisfactory conclusion". "Safety is the Humber Refinery's number one priority," it added.[15][16]

November 12, 2014: Humber Refinery Workers Walk Out for Third Day Over Safety Issues

BBC reported on November 12, 2014 that 450 contract employees have stopped working at the Humber Refinery in South Killingholme for the third day claiming concerns over "safety issues". GMB union officer Shaune Clarkson said his members wanted "reassurance" from management that the plant was safe. A spokeswoman for Phillips 66 said: "This morning, despite the repeated offers by the refinery management to meet face to face with each company and their staff, the contractors voted to stay off work for a third day in unofficial action." The company said the refinery was "not being impacted by this action".[17]

The GMB union national officer Phil Whitehurst said: "Following a major stoppage of work we have been advised that there is a major health and safety issue on the site. GMB has been refused access to the site in order to resolve what has been described to us as a major hazard. We urge the company to allow the union on to the site to try to resolve the issue as quickly as possible for the safety of workers and the public."[18]

November 11, 2014: Hundreds of Humber Refinery Workers Walk Out for Second Day Over Safety Issues

BBC reported on November 11, 2014 that hundreds of contract workers have downed tools for a second day at Phillips 66's Humber Refinery over "safety concerns" after two workers were injured by a steam leak on October 30, 2014. Phillips employs 1,000 contractors and 750 staff. Mechanical engineers, scaffolders, welders and pipe-fitters are among the workers who have walked out. GMB union officer Shaune Clarkson said his members wanted a meeting with management to discuss safety at the plant. "The most important thing when you walk through those gates in the morning is you get home safely to your families at night," said Clarkson. "All we want, and all the men want, is a reassurance that is going to happen." A company spokeswoman said Philips 66 had been holding an "ongoing dialogue with contractor management over the last week to discuss their issues, many of which relate to onsite communications".[19]

November 10, 2014: 450 Contract Employees Walk Out at Humber Refinery Over Safety Concerns

450 Contract Employees Walk Out at Humber Refinery Over Safety Concerns. 450 contract workers walked out at Phillips 66's Humber Refinery on November 10, 2014. The "unofficial" action is over communication issues at the site. However the GMB union says it's over safety concerns after a gas leak at the site last week in which two men were injured. Phillips 66 confirmed there had been "a small gas release on a unit during some routine maintenance work at the Humber Refinery" last Wednesday. "All we want is a reassurance that the site is safe [and] some safety issues addressed. Photo[http://www.bbc.com/news/uk-england-humber-30019505 BBC News

BBC reported on November 10, 2014 that 450 contract workers walked out at Phillips 66's Humber Refinery on November 10, 2014. The "unofficial" action is over communication issues at the site. However the GMB union says it's over safety concerns after a gas leak at the site last week in which two men were injured. Phillips 66 confirmed there had been "a small gas release on a unit during some routine maintenance work at the Humber Refinery" last Wednesday. "All we want is a reassurance that the site is safe [and] some safety issues addressed. Unfortunately, the employer has failed to do that and because of that then men have reacted," said GMB union officer Shaune Clarkson. "This is the straw that's broke the camel's back." A company spokeswoman said: "We can confirm that earlier today, at approximately midday, a number of contract workers left site in unofficial action. "We have been in ongoing dialogue with contractor management over the last week to discuss their issues, many of which relate to onsite communications, and will continue to work with them to reach a satisfactory conclusion."[20]

October 30, 2014: Two Workers Injured at Humber Refinery

BBC reported on October 30, 2014 that two workers were injured by a steam leak at the Humber Refinery at 09:30 GMT. Phillips said the pair had been taken to Pinderfields Hospital in Wakefield by air ambulance. The company has given no more information on the employees' injuries and said it was offering support and assistance to their families.[21]

August 13, 2014: Friends of Steam Burn Victims at Humber Refinery Take Cycle Challenge

The Grimsby Telegraph reported on August 13, 2014 that friends of a refinery worker who suffered 60 per cent burns to his body in a steam leak have taken part in an extraordinary endurance challenge to raise cash for those who came to his aid. The team's friend was in a critical condition – and was said to be "touch-and-go" at one stage – but is now making a full recovery. The other man suffered serious injuries, but was also expected to make a full recovery. Following the incident, the Health And Safety Executive (HSE) launched an official investigation, which is still ongoing.[22]

February 7, 2014: Phillips Appoints Julian Stoll as New Refinery Manager at Humber

The Grimsby Telegraph reported on February 7, 2014 that Phillips has appointed Julian Stoll as the new refinery manager at Humber Refinery replacing Brian Coffman who elected to retire after nearly two years in charge. Stoll returns to Britain from the Billings Refinery in Montana, following a step in the career path of Mike Wirkowski, Coffman's predecessor, who departed in the summer of 2012. Stoll joined Conoco in 1991 on completion of a degree in chemical and bio-process engineering at the University of Bath, as a chemical/process engineer at the Humber Refinery. Stoll subsequently worked at Humber in production, economics planning, strategy and business development. Stoll is the first Brit to head up Humber since John Thornton, also originally a junior engineer there, departed in 2008. Stoll's appointment, the fifth change in little over a decade, comes during a period of flux for the wider chemicals sector.[23]

November 28, 2013: Two Workers Injured in Steam Leak at Humber Refinery

The Grimsby Telegraph reported on November 28, 2013 that two workmen from Phillips, who received serious injuries after a steam leak at the Killingholme refinery last week, are still being treated at Pinderfields Hospital in Wakefield with one worker in a critical condition while the second is said to be making satisfactory progress.[24] The Health and Safety Executive (HSE) has visited the site and an official investigation into the accident is underway.[25]

September 30, 2013: Contractors at Humber Refinery Protest Against Cuts to Breaks

The Grimsby Telegraph reported on September 30, 2013 that more than 100 contractors at the Humber Refinery in Killingholme held on early morning protest on their own time outside the gates of the refinery to protest Phillips' plan to cut the 20 minute mid-morning refreshment break that goes into force January 1. "Everyone knows the importance of a break, especially in this kind of workplace." said one contractor who declined to be identified. "We need the tea break to refresh, to cool off and rehydrate."[26] The Grimsby Telegraph reported on October 1, 2013 that over 100 contractors met with union representatives and held a indicative vote through a show of hands to bring about the process of a legal vote for strike action over Phillips' plan to remove their 20 minute morning break starting January 2014. "When we are up there working in the freezing cold we need that tea break to warm up, when we are out there in the blistering heat we need that tea break to cool down," said an unidentified contrator. "They tell us safety first and tell us to follow guidelines but taking this break away means we are not following safety guidelines. When they are sat in ivory towers they can have their tea breaks still."[27]

References

  1. Wikipedia. "Humber Refinery" retrieved April 29, 2014.
  2. Wikipedia. "Humber Refinery" retrieved April 29, 2014.
  3. Wikipedia. "Humber Refinery" retrieved April 29, 2014.
  4. Wikipedia. "Humber Refinery" retrieved April 29, 2014.
  5. Wikipedia. "Humber Refinery" retrieved April 29, 2014.
  6. Warwick Courier. "Jobs at risk as Phillips 66 propose to close Warwick office" April 4, 2017.
  7. Grimsby Telegraph. "Warning to jobseekers after scam pretending to be from Phillips 66 is uncovered" by David Laister. February 8, 2017.
  8. Grimsby Telegraph. "Familiar face set to take reins at Humber Refinery" January 10, 2017.
  9. Businesswire. "Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion or $1.84 Per Share" July 31, 2015.
  10. Nasdaq. "Phillips 66 Says Planned Maintenance Underway at Five Refineries" June 8, 2015.
  11. Grimsby Telegraph. "Multi-million-pound oil facility investment in view from Cleethorpes" by David Laister. May 5, 2015.
  12. Grimsby Telegraph. "Business and energy minister Matthew Hancock visits Immingham and South Killingholme on Tory campaign trail" April 22, 2015.
  13. Grimsby Telegraph "UPDATE: Workers vote to go back to work following days of strikes at South Killingholme's Phillips 66 oil refinery" November 13, 2014
  14. Grimsby Telegraph "UPDATE: Workers vote to go back to work following days of strikes at South Killingholme's Phillips 66 oil refinery" November 13, 2014
  15. BBC. "Humber Refinery workers return to work after strike" November 14, 2014.
  16. Harrogate. "Refinery workers end wildcat strike" November 13, 2014.
  17. BBC. "Humber Refinery workers walk out for a third day in safety row" November 12, 2014.
  18. Shipshire Star. "Refinery workers continue strike" November 12, 2014.
  19. BBC. "Humber Refinery workers walk out for a second day in safety row" November 11, 2014.
  20. BBC. "Humber Refinery workers walk out in safety row" November 10, 2014.
  21. BBC. "Two injured at North Lincolnshire oil refinery" October 30, 2014.
  22. Grimsby Telegraph. "Friends of Phillips 66 refinery steam burn victims taking on coast-to-coast cycle challenge for the Air Ambulance" August 13, 2014.
  23. Grimsby Telegraph. "Management change at the helm of Phillips 66 Humber Refinery" February 7, 2014.
  24. Grimsby Telegraph. "UPDATE: Injured Phillips 66 workers at Pinderfields Hospital" November 28, 2013.
  25. Grimsby Telegraph. "Conditions unchanged of workers seriously injured in Phillips 66 refinery accident" November 1, 2013 (sic)
  26. Grimsby Telegraph. "Phillis66 Contractors' Early Morning Protest Against Cuts to Breaks" September 30, 2013.
  27. Grimsby Telegraph. "Phillips 66 contractors hold vote to consider industrial action" October 1, 2013.



Master Index of Articles about Phillips 66

The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Research West contains another 230,000 square feet of unused Class A office space. Photo: Hugh Pickens
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations

Personal tools