NATIONAL PETROCHEMICAL & REFINERS ASSOCIATION

1899 L STREET, NW, SUITE 1000

WASHINGTON, DC 20036

MC-02-168

STRATEGIC ALLIANCE MANAGEMENT: A SUCCESSFUL CASE STUDY

By

Ron Rials
M&S Consultant

Conoco, Inc.
Ashford, TN

And

Ron Gropp
Conoco/BetzDearborn Alliance Manager

BetzDearborn
The Woodlands, TX

Presented at the

NPRA
2002 Annual Refinery & Petrochemical Plant
Maintenance Conference and Exhibition
May 7-10, 2002
San Antonio Convention Center
San Antonio, TX
This paper has been reproduced for the author or authors as a courtesy by the National Petrochemical &
Refiners Association. Publication of this paper does not signify that the contents necessarily reflect the
opinions of the NPRA, its officers, directors, members, or staff. NPRA claims no copyright in this work.
Requests for authorization to quote or use the contents should be addressed directly to the author(s)
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 Conoco / BetzDearborn Alliance Work Process
Conoco
BetzDearborn
Alliance Steering Team Opertions Mgr
Sales VP Alliance Sponsors: Alliance Mgr
Alliance Mgr President RMNA M&MT
Tech Mktg Dir President BetzDearborn CG&P Mgr
Mgr S&D

Technology CG&P & Upstream

Conoco M&MT CG&P Mgr
Conoco M&MT BetzDearborn Tech Mgr 2
BetzDearborn Tech Mgr 1

Alliance Managers
Ron Rials - Conoco
Ron Gropp - BetzDearborn Ponca City Refinery
Refinery 1
Alliance Team Leads
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Conoco 1
Conoco
Conoco 2
BetzDearborn
BetzDearborn

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 CIIS Charter Approval Process

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Chemicals Manager savings $$$ monthly to End of Calendar
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adds to CIIS list in Chemicals Manager as Year Audit
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BetzDearborn Alliance Value Add Projects

Year Description Value

1995 Total $900,000
1996 Total $1,226,000
1997 Total $225,000
1998 Total $5,229,000
1999 Total $4,139,000
2000 Total $4,752,415

2001 Overhead Exchangers LPO -$500,000

2001 Diesel Tank C orrosion $450,000
2001 Price Increase Exclusion $340,000
2001 CIIS Savings $657,454
2001 Salts - Desalter Effluent Exchanger TBD
2001 Boiler Blowdow n Valves TBD
2001 ASU and ORU Waste Treatment TBD
2001 C rude Overhead Improvements $200,000
2001 Desalter Improvements $250,000
2001 GOHDS Shutdown Avoidance $190,000
2001 HDS R eactor Fouling TBD
2001 Slop Oil Polymer Treatment $20,000
2001 Heat Team Participation TBD
2001 Desalter Reverse Breaker $673,000
2001 Desalter Effluent Line Cleaning $196,314
2001 H eavy Gas Oil Pour Point Depr essant $364,204

2001 Total $2,840,972

Annual Grand Total Value Add Dollars $19,312,387

Re-Occuring Grand Total Value Add Dollars $55,832,263

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Page 20
 BetzDearborn Alliance
Hard $ Saved vs. Re-Occuring Value Add

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Strategic Alliance Management

MC-02-168
Page 23