Asset Risk and Integrity Management

1. Asset Risk and Integrity Management PetroTech 2010

2. Presenter Are Føllesdal TjønnManaging DirectorDNV Softwaretel: +47 415 39 750 E-mail: are.follesdal.tjonn@dnv.com

3. Making qualified decisions

4. Managing Risk Risk = Probability of failure x Consequence of failure

5. identify assess manage risk The key challenge

6. RISK also means opportunities • No risk – no business • Take the right risks • Known and understood • Can be managed and controlled • Balance risk and return • Exploit ‘competitive’ risk advantage Our challenge is not to eliminate risks, but to identify, assess and manage them appropriately!

7. New risk reality – compelling events • Increasingly more global, complex and demanding risk environment • “zero tolerance” for failure • Transparency and business sustainability • Stricter regulatory requirements

8. Ageing assets and infrastructure • Ageing assets and infrastructures imposes an increasing challenge in safeguarding life, property and the environment • Extended life - huge upside • Minimized downtime – huge return

9. Fatigue crack – fatal consequences

10. What is it about

11. Structural Integrity Management - Norsok N-005 ”The Operator shall throughout the lifetime of the installation ensure that the load bearing structures are suitable for the intended purpose. The Operator shall monitor the condition of the operated offshore installation in a systematic manner. This may include development of an overall philosophy and strategy for condition monitoring, establishing in-service inspection systems and long term inspection programs, In-service inspection planning, offshore execution, data logging, evaluation and assessment, implementation of repair and mitigation measures, emergency preparedness, etc.”

12. Structural Integrity Management - Norsok N-006 Assessment of structural integrity of existing offshore load-bearing structures Guidelines on how to document integrity of structures being operated beyond original design requirements • The documented service life is expired, • The original design requirements are no longer fulfilled;e.g. the air gap is reduced to less than what was required due to reservoir subsidence, • Major modifications or operational changes, • Increased knowledge e.g. revised metocean data, • Damages inflicted to the platform structure, • Reduced structural capacity due to degradation mechanisms like fatigue or corrosion.

13. Structural Integrity Management - ISO 19902 Chapter 23: ”In-service Inspection and Structural Integrity Management” Chapter 25: ”Structure reuse” ”In-service inspection is an integral part of structural integrity management, which is an ongoing process for ensuring the fitness-for-purpose of an offshore structure or group of structures.” ”Essential aspects of structural integrity management are the validity, extent and accuracy of the structure's data and inspection history. Accordingly, records of all original design analyses, fabrication, transportation, installation (including piling) and in-service inspections, engineering evaluations, repairs, and incidents shall be retained by the owner for the life of the structure and transferred to new owners as necessary.”

14. Structural Integrity Management - ISO 19904 Section 18.2 – Structural Integrity Management System Philosophies ”The owner shall ensure that suitable arrangements are in place for monitoring and maintaining the integrity of a floating structure throughout its life cycle. Such arrangements include…” ”The purpose of the SIM system is to provide a formal process for ensuring the integrity of the structure throughout its intended design service life on a fit-for- purpose basis.”

15. Structural Integrity Management - API RP 2SIM ”SIM is a process for ensuring the fitness for purpose of an offshore structure from installation through to decommissioning. The process is a rational means for understanding the effects of degradation, damage, changes in loading, accidental overloading, changes in use, life extension, and the evolution of offshore design practice. SIM provides a framework for the damage evaluation, fitness-for-purpose assessment, inspection planning, maintenance, and repair of a platform or group of platforms.”

16. Asset Risk & Integrity management for Structures Operators’s Integrity Management Team Risk Based IntegrityManagement Structural Analysis Team Site Inspection team Inspections Findings RBI - Plans Analysis Results CAE (Finite ElementAnalysis)

17. Value of Sesam Structure Integrity (SIMS) Structure Integrity Status • Reduce cost through quality and consistency • Improve quality through uniform and consistent reporting • Secure timely response to integrity issues • Ensure secure and prompt access to all relevant data • Minimise risk exposure and failure frequency • Improve organisational efficiency • Open architecture (integration, configuration) • Support service life extension • Improves knowledge sharing across stakeholders

18. Return on Investment Reduced downtime represent a huge return

19. Pipelines

20. Managing Risk Risk = Probability of failure x Consequence of failure

21. Compelling events

22. Terminals • Export pipelines • In-field pipelines • Components • Process units Export pipeline In-field pipelines • Organisations • Cultures • Languages Understanding the system

23. DFI threats Design errors, Fabrication related, Installation related Corrosion/erosion threats Internal corrosion, External corrosion, Erosion 3rd party threats Trawl interference, Anchoring, Vessel impact, Dropped objects, Vandalism / terrorism, Traffic, Other mechanical impact Structural threats Buckling – exposed line, Buckling – buried line, End expansion, On bottom stability, Static overload, Fatigue Natural hazard threats Extreme weather, Earthquakes, Landslide, Ice loads, Significant temp. variation, Floods, Lightning Incorrect operation threats Incorrect procedures, Procedures not implemented, Human errors In-line-inspection (ILI) External inspection (ROV or ROTV), In-line-inspection (ILI) External inspection (ROV or ROTV) External inspection (ROV or ROTV) Understanding the threats

24. DFI threats Design errors, Fabrication related, Installation related Corrosion/erosion threats Internal corrosion, External corrosion, Erosion 3rd party threats Trawl interference, Anchoring, Vessel impact, Dropped objects, Vandalism / terrorism, Traffic, Other mechanical impact Structural threats Buckling – exposed line, Buckling – buried line, End expansion, On bottom stability, Static overload, Fatigue Natural hazard threats Extreme weather, Earthquakes, Landslide, Ice loads, Significant temp. variation, Floods, Lightning Incorrect operation threats Incorrect procedures, Procedures not implemented, Human errors Managing the threats QA during design and installation phase and start-up inspection Long term inspection plan After event Audit and training

25. The North Sea* * Fittings are not included The Gulf of Mexico All Incidents reported in the North Sea and the Gulf of Mexico with and without leakage

26. Situation for the operators • Complex installations, • Pipelines, Pumping and Booster stations, Tankfarms, Inline mechanical components, people … • Focus on cost effective operations, while maintaining integrity and safety level • Increasing expectations from the public, owners, customers • Stricter Regulatory requirements • Reliability for deliveries • Contractual demands and liabilities • Substantial investment in maintenance to assure up-time • Outsourcing versus in-house capabilities http://mailman.mcmaster.ca/mailman/ private/cdn-nucl-l/0407/msg00052.html

27. Optimising cost of operation AND maintaining integrity and safety level Risk management of complete pipeline systems Onshore and Offshore It is about …

28. Software enables productivity

29. It is about integrating people, information and work processes Managing risk and condition

30. Worl leading pipeline code: DNV-OS-F101 (+ RP’s)

31. Designed together with DNV’scompetence centers • Offshore pipeline group in Norway • Onshore pipeline and corrosion group in Columbus, Ohio Built-in support for • DNV RP-F116, OS-F101 • ASME B31.8S, B31.4 • NACE … • API 1160, 1163 Address the industry’s reality • Focus on cost-effective operation • Contractual demands and liabilities • Stricter regulatory requirements • Re-qualification and life extention • Managing complex pipeline systems • AND people & organisations • Working with service suppliers

32. Risk assessment template Risk Management Aggregates risk for complete pipeline systems Structured and auditable • System risk aggregated from pipeline, component and hot-spot assessments • Drill-down from system level to individual assessments • Pre-defined DNV, ASME and API threatsConfigurable to meet national standards

33. Topside Riser above splash zone Riser splash zone Riser below splash zone CoF D C PoF 4 3 8.5 0 0.3 8.0 0.8 0 7.0 2 1 Risk VH H M L Dynamic segmentation – setting the focus right Threat allocation – Internal corrosion Pipeline Zone 1 Pipeline Zone 2

34. Aggregating risk – the risk principle Rule: Aggregate worst System assessment risk value for Pipeline System Engineering judgement Aggregated system risk Rule: Aggregate worst Hotspot assessments risk value for each hotspot Component assessments risk value for each component Pipeline assessments risk value for each threat

35. Profile Rule (Set marker if..) AND OR OR OR OR OR AND AND AND OR AND AND AND OR AND AND AND AND AND AND AND AND AND AND Pipeline Pipeline ILI ILI ILI Freespan Code check 1 Code check 2 Code check 3 Find Weld position Find Repairs done 50% <d/t < 80% d/t < 80% Anomali < xmm L/gap < Z MAOP > Psafe ERF > 0.82 Create hotspot! Set technical condition to OK Fix immediately! x_____x x_x kp Implementing company policies and rules • Threat specific rules identifies critical areas from vast amount of inspection and survey data • Creates responses and mitigating actions

36. Systematise through Risk Matrix • Probability category: 1 to 5 (qualitative) • Consequence category: A to E • Risk categories: VL to VH • Risk matrix (configurable) • Risk limit (company specific) Risk limit

37. Risk Viewer

38. RiskAssessment ManagePipeline Data Risk Explorer • Overview of System Assessment and aggregated risk • Drill-down to individual assessments • Points out missing assessment for a complete scope See each threat’s risk contribution and drill down to individual assessments All valid assessments’ risk values for one pipeline

39. Management Overview • Management access and overview should be made as easy is possible to • Monitor current status, integrity and programs • Supervise Key Performance Indicators