Staf

Nommensen believes his staf are unwilling to leave and if he sends them to
larger companies for further training, these companies may persuade such
staf to stay
The companys get your hands dirty approach to staffing each of their
facilities.
Arthur Nommensens successor must possess his global experience and will
come from outside the organization, but confesses this leadership transfer
must be gradual to minimize any conflicts with existing.

Training Program

Continual training and efective cross linking between project teams has
developed a broad range of knowledge for all members of the organization.
Management courses
MBA programs
Oil and gas industry seminars and conferences
Safety training

Business Plan

Continue appraisal of its own oil field in South West Queensland with a view
to earliest production,
Continue refinery operations from eromanga in South west Queensland and
plan for capacity expansion to process crude from oil fields including Bodalla
South, Kenmore and Inland I
Maintain focus on marketing and ongoing development of the microstill as a
world class product fulfilling the special needs of a market niche,
Investigate opportunities for using Microstill for environmental clean up
applications, and
Continue research and development into products suitable for synergistic
diversification

Marketing
IOR have developed a marketing network using agents in over ten (10) countries
who primarily work on a commission basis. Direct marketing by attending overseas
trade fairs and conventions is also undertaken.
Research and Development
Industrial research and development is promoted by the Australian government
through incentive schemes such as 150% tax rebates for identified R&D.
The Government provides cash grant incentives for the development for computer
software and products to be sold overseas.

IOR elected to engineer their own system in order to prevent reverse engineering
and maintain competitive advantage.
Working Relationships

IOR commissioned a management consultancy firm to audit their operations.

o Defining the roles and organizational structure
o But have not successful in changing IOR into an industry standard
company, with more rigid job roles and descriptions
Lack of specific job roles and accountability
Sometimes leading to conflict, due to people over-stepping their
responsibility
o By creating multifunctional teams, IOR have avoided unnecessary
specialization and hierarchical structures, which can restrict
information flow by creating barriers to communication.
o The IOR team acknowledge that it is the sign of good working
relationships and mutual trust when advice and additional lateral
thinking from outside the group is readily accepted by team leaders.
IORs policy of providing opportunities to employees to prove themselves has
resulted in flexible employee guidelines and responsibilities allowing them to
grow in their respective roles. The low staf turnover is testimony to the work
ethic and contentment of IOR staf

Company Culture

One of the key elements in the success of the company was the well
supported small team approach,
Company personnel consistently stated their satisfaction at being given the
opportunity to develop and extend their skills to new and exciting areas of
technology.

Company Structure

IOR does not operate under a strictly rigid structure. Their daily operations
are quite organic, with multi-skilled project team staf members forming
cross linkages between diferent operations as required

Technology Transfer

Extreme importance of equipment reliability in remote locations

The need to transfer knowledge and technology in a limited time helps
provide for rapid team building, resulting in the customers staf quickly
becoming comfortable with operations.
The IOR team is always accompanied by an interpreter familiar with the oil
and gas industry so that communication difficulties are eased.
During commissioning and early operations, co-ordination between the IOR
head office technical expertise and the site was maintained. Operating data

was constantly transferred back to the home office via computer for review
and feedback to site.

Product Development
While the concept is based on small oil refinery technology, Microstill units can be
designed to provide specific petroleum products. For this reason considerable
ongoing product development takes place to meet changing customer and market
conditions.
Manufacturing, Installation and Commissioning
Manufacturing:

Microstill units are designed, engineered and detailed to suit specific client
requirements.
Component parts are subcontracted out for fabrication. A strategic alliance is
currently in place with IORs major steel fabrication subcontractor.
Units are assembled and tested
Process technology, computer software and control systems designed inhouse to suit specific customer requirements
Materials and parts are purchased both domestically and internationally
Complete unit can be shipped, trucked or air lifted to site

Installation:

Generally takes 6 weeks to install from arrival to completion of

commissioning
Unit is transported to site from fabrication plant.
Installation generally takes a period of 7 days to reassemble the Microstill
from the container.

Commissioning:

Commissioning usually takes a period of about 3 weeks following installation

before the first fuel supplies are produced
An IOR operator travels with each unit to the delivery point and remains to
supervise installation, commissioning and conduct training sessions for local
personnel
Training commences during the installation of the Microstill by the Microstill
Operators being involved in the installation to ensure familiarization with the
plant.

Process Development

Efective
Low Key approach
Used Existing technology and improved when required
Changes, (developed sooner)

Concept
IOR developed small containerized oil refineries (Microstills) that are easily
transported to remote locations.
Microstill Background
The Succes of the Eromanga small-scale refining operation was soon evident to the
whole industry. IOR realized that even an Eromanga-size facility would be too large
and so work began on a smaller version, dubbed the Microstill.

Industry Background
Advantages of installing small-scale refineries are:

Duration required from planning to operation is small,

Site construction does not require the full infrastructure of a developed city or
town
Investment cost is small,
Small oil fields can be economically developed

In remote locations were a local crude oil supply exist, and transport costs to supply
fuel from large oil refineries to such a location are high, the installation of a smallscale refinery may be more economic.
The viability of a refinery is determined mainly by the local supply and demand of
oil products. In a number of instances a small-scale refinery of a capacity less than
2000 barrels/day would be viable where a 2000 barrel/day refinery would not.
The development of a small-scale refinery capable of a production significantly
lower than 2000 barrels/day, creates a new business segment and changes the
competitive rules of the industry. In efect it widens the industry boundaries, and
becomes a distinct segment with its own product diferentiation.
The evolution of a refinery capable of a production less than 2000 barrels per day at
IOR is consistent with and reinforced by the action of its functional departments.