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**Abstract.**

This paper describes modeling and on-line optimization of a crude unit
heat exchanger network at the Statoil Mongstad refinery. The objective
is to minimize the energy input in the gas red heater by optimally
distributing the cold crude oil in the heat exchanger network. The
steady state mass and energy balance of the 20 heat exchangers in the
network yields the process model. This model is fitted to the measured
values using data reconciliation and unmeasured values like heat
exchanger duty and heat transfer coefficients are computed. The fitted
model is used to compute the optimal split fractions of crude in the
network. This system has been implemented at the refinery and has
resulted in a 2% reduction in energy consumption. In operational modes
where the unit is constrained on energy input this gives a increased
throughput and a significant contribution to the refinery profit.