SlideShare a Scribd company logo
1 of 19
Working together
for a safer world
Optimizing equipment Safety, Operations and Cost performance.
Offshore Europe 2015
Lloyd’s Register Energy
Agenda
• Introduction
• Risk and Reliability modelling
• Key to optimization
• Data quality and quantity
• Reliability model principle
• Application for BOP annular close function
• Application for Mud pump fluid end parts
Lloyd’s Register Energy
Introduction
• Prevention of over / under maintenance of safety and operational critical equipment is
often encountered as problematic without loss of performance.
• Combined with cost efficiency of keeping up with safety and operational performance
adds an extra layer of complexity to the problem.
• They seem to be conflicting factors.
• A key aspect to this problem is awareness and knowledge about risk exposure
involved.
• This presentation will highlight a proven solution to create an optimal balance
between cost, NPT and safety.
Lloyd’s Register Energy
Risk and Reliability modelling
• Risk is defined as the probability of failure multiplied by the effect of that failure.
• Probability of failure: how often something fails. (Knowing how it fails or what makes it fail is
equally important for effective maintenance = reliability improvement)
• Effects are for example safety, compliance, NPT (pulling a BOP), loss of income, etc
Lloyd’s Register Energy
Risk and Reliability modelling: working in tandem
Operational success (Safety increase / NPT decrease ) is strongly dependent on the
reliability of technical equipment and related through risk reduction.
Unsuccesful
performance Major Accident
Hazards : Top
Event
Non Productive
Tim e : NPT/
CostsSuccesful
performance
Safety
Uptime:
Income
Sustained operational and safety performance,
addressing NPT root cause and costs:
Safety - NPT reduction
Effective asset management: risk / reliability
based information and prioritization of safety and
operational critical components.
Risk reduction
Lloyd’s Register Energy
The key to optimization
• A reliable system assures safe and efficient operations: lower overall risk exposure.
o Reliability can be achieved in either the design or by maintenance that affects equipment
failure.
o Reliability is measured through failure probability
o Reliability affects both safety and operational equipment performance at ‘x’ cost.
o Maintenance can often only being done within a certain (operational-)timeframe.
Reliability management is very suitable to optimize NPT
and safety on a cost basis as all are risk aspects and
form a perfect balance beam:
cost of the risk of failure vs. the cost of failure prevention.
Lloyd’s Register Energy
The key to optimization
• Risk and its associated cost are key to optimize between over and / or under maintenance
for safety and operational performance.
o Component risk of failure is dependant on the system and its functionality that component
operates in.
o Component risk of failure is dependant on the level of redundancy of these components in that
system.
o The effect of component failure, expressed in cost, is therefore different for different functionality.
• Lloyd’s Register Energy Reliability model takes these differentiations into account.
Lloyd’s Register Energy
The key to optimization
• The main focus of Lloyd’s Register Energy’s Reliability model is to assist in cost balance
without loss of critical equipment functionality in future operations:
Safe and effective delivery of a well with a focus on cost optimization.
• The essence of Lloyd’s Register Energy’s Reliability model is the ability to balance cost of
the risk failure with the cost of failure prevention.
• Typical statements for our reliability model:
“Lacking data quantity or quality is not a reason not to start”
“Is the value of the risk that was prevented equal or higher as the cost of preventing (i.e.
maintenance)?”
“Forecasting what needs to be done now to prevent future component failures leading to NPT or
unsafe situations”
“Prioritization of maintenance work that has the highest effect on risk prevention: replacing now or
later, what is the effect of replacement or maintenance, on future operations and cost-wise?”
Lloyd’s Register Energy
Data quality and quantity
• Successful application of reliability modelling depends on data quality and quantity.
• Improved data quality allows for more accurate reliability calculations, prediction and
decisions.
• Data quantity, also from different sources, mixed and matched (time and usage based)
leverage data quality and quantity.
• Data quality improves due to focussed data collection upon the start of a reliability
project.
• Data maturing cycle:
Lloyd’s Register Energy
Data quality and quantity: using small data samples
• How does it look like: raw failure data from asset management system.
• Using only corrective maintenance (failure) data leads to a too conservative MTTF.
Lloyd’s Register Energy
Reliability model principle
• Example of reliability model principle (input can be time, usage (i.e. cycles, miles))
Net. expected positive
difference on cost of risk:
$ 330 000
Lloyd’s Register Energy
Reliability model
• The optimal effect is achieved when focussing on component failure analysis to optimize
functional (reliability) performance and success.
• This allows for demonstration of maintenance effect and cost motivation against
operational success or cost of being unsuccessful.
• Combination of functions and components
• Optimized component reliability = optimized performance = optimized function =
operational success .
• Adding cost of repair, spares and cost of risk of failure
allows for a cost balance: a means to align operations
and maintenance departments talking a similar language:
less confusion: better
decision motivation.
Lloyd’s Register Energy
Reliability model applied for a BOP annular function
• Example of BOP operational usage in 7 scenarios.
Lloyd’s Register Energy
Reliability model applied for a BOP annular function
• Maintenance and Inspection reliability based prioritization
• Maintenance matrix: risk based urgency
• Maintenance Plan Reliability informed (Reliability – System contribution – Cost)
• T5 / 110 days
• T6 / 185 days
• T7 / 210 days
Lloyd’s Register Energy
Reliability model applied for a BOP annular function
How does it look like:
Lloyd’s Register Energy
Reliability model applied for mud pump maintenance
• Mud Pump 1 & 2
• Each mud pump has three cylinders, numbered 1, 2 and 3.
• Each cylinder has one piston liner and one piston.
• Each cylinder can be configured with a combination of piston and liner of
a specific size. The rig uses 5-inch, 6-inch, and 6½-inch liner diameters.
• Two mud pumps need to be used for 12¼ inches holes and larger.
• Costs consumables
Component Diameter/type Price [Euro] Note
Liners 5” 2200 Ceramic
6” 2160 Ceramic
6.5” 510 Steel
Pistons 5” 90
6” 110
6.5” 205
Valves Suction & Discharge 120
Seats Suction & Discharge 85
Lloyd’s Register Energy
Reliability model applied for mud pump maintenance
• Only 1,5 years of data
• Different types valves, seat, pistons and liners.
• Data sets merged to increase accuracy.
Lloyd’s Register Energy
Reliability model applied for mud pump maintenance
• Preventive replacement because of uninterrupted operation required for both mud
pumps (minimum flow requirement 12¼ inch hole):
• Cost of spare parts vs. cost of down time
• Figure below assumes a one hour repair
• Preventive replacement is cost efficient from a usage of 250 hours.
Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates.
Copyright © Lloyd’s Register Energy Drilling. 2014. A member of the Lloyd’s Register group.
Lloyd’s Register Energy Drilling
Gapingseweg 1A, 4353 JA Serooskerke, Netherlands
T +31 118 563 050
Working together
for a safer world
Pieter vanAsten
Senior Concepts manager – Innovation
E: pieter.vanasten@lr.org

More Related Content

What's hot

TPS Case Study_Regional Supply Chain Optimization
TPS Case Study_Regional Supply Chain OptimizationTPS Case Study_Regional Supply Chain Optimization
TPS Case Study_Regional Supply Chain Optimization
Matthew Rosko
 
[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...
[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...
[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...
Schneider Electric
 
Emerald Energy LED Lighting
Emerald Energy LED LightingEmerald Energy LED Lighting
Emerald Energy LED Lighting
Donal Doyle
 

What's hot (7)

Wind farm re-powering, life extension and decommissioning
Wind farm re-powering, life extension and decommissioningWind farm re-powering, life extension and decommissioning
Wind farm re-powering, life extension and decommissioning
 
Maintainability engineering
Maintainability engineeringMaintainability engineering
Maintainability engineering
 
Optimizing the Resource to Market Supply Chain in Mining and Metal Processing...
Optimizing the Resource to Market Supply Chain in Mining and Metal Processing...Optimizing the Resource to Market Supply Chain in Mining and Metal Processing...
Optimizing the Resource to Market Supply Chain in Mining and Metal Processing...
 
TPS Case Study_Regional Supply Chain Optimization
TPS Case Study_Regional Supply Chain OptimizationTPS Case Study_Regional Supply Chain Optimization
TPS Case Study_Regional Supply Chain Optimization
 
Life Cycle Cost Analysis
Life Cycle Cost AnalysisLife Cycle Cost Analysis
Life Cycle Cost Analysis
 
[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...
[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...
[Oil & Gas White Paper] Getting Ahead of the Game: adopting best practices in...
 
Emerald Energy LED Lighting
Emerald Energy LED LightingEmerald Energy LED Lighting
Emerald Energy LED Lighting
 

Viewers also liked (11)

運輸工具與能源學習單(2)
運輸工具與能源學習單(2)運輸工具與能源學習單(2)
運輸工具與能源學習單(2)
 
交通工具與能源 -我最拉風,我最酷
交通工具與能源 -我最拉風,我最酷交通工具與能源 -我最拉風,我最酷
交通工具與能源 -我最拉風,我最酷
 
Social media comunication-ethics_presented
Social media comunication-ethics_presentedSocial media comunication-ethics_presented
Social media comunication-ethics_presented
 
403
403403
403
 
404
404404
404
 
Han4 b
Han4 bHan4 b
Han4 b
 
Han4 a
Han4 aHan4 a
Han4 a
 
4033
40334033
4033
 
Metáfora y polisemia
Metáfora y polisemiaMetáfora y polisemia
Metáfora y polisemia
 
Cesaria
CesariaCesaria
Cesaria
 
Randall McKnight Resume 1-15-16
Randall McKnight Resume 1-15-16Randall McKnight Resume 1-15-16
Randall McKnight Resume 1-15-16
 

Similar to Offshore Europe 2015 1.0 LRED

IADC Sept 2015 -RCM-Print PDF
IADC Sept 2015 -RCM-Print PDFIADC Sept 2015 -RCM-Print PDF
IADC Sept 2015 -RCM-Print PDF
Pieter van Asten
 
[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption
[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption
[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption
Schneider Electric
 
Maintenance cost to Savings
Maintenance cost to SavingsMaintenance cost to Savings
Maintenance cost to Savings
Swapnil Sharma
 
Andrew martin - Knowledge Based Asset Integrity (KBAI™)
Andrew martin - Knowledge Based Asset Integrity (KBAI™)Andrew martin - Knowledge Based Asset Integrity (KBAI™)
Andrew martin - Knowledge Based Asset Integrity (KBAI™)
Lloyd's Register Renewables
 

Similar to Offshore Europe 2015 1.0 LRED (20)

Optimising equipment Safety, Operations and Cost performance
Optimising equipment Safety, Operations and Cost performanceOptimising equipment Safety, Operations and Cost performance
Optimising equipment Safety, Operations and Cost performance
 
Duke Energy - Case Study
Duke Energy - Case StudyDuke Energy - Case Study
Duke Energy - Case Study
 
Reliability Engineering in Biomanufacturing - Presentation by Michael Andrews
Reliability Engineering in Biomanufacturing - Presentation by Michael AndrewsReliability Engineering in Biomanufacturing - Presentation by Michael Andrews
Reliability Engineering in Biomanufacturing - Presentation by Michael Andrews
 
Optimisation of maintenance strategies for offshore wind farms
Optimisation of maintenance strategies for offshore wind farmsOptimisation of maintenance strategies for offshore wind farms
Optimisation of maintenance strategies for offshore wind farms
 
Cotopaxi Presentation - India
Cotopaxi Presentation - IndiaCotopaxi Presentation - India
Cotopaxi Presentation - India
 
IADC Sept 2015 -RCM-Print PDF
IADC Sept 2015 -RCM-Print PDFIADC Sept 2015 -RCM-Print PDF
IADC Sept 2015 -RCM-Print PDF
 
Reliability Levels of Subsea Production Systems During Operations
Reliability Levels of Subsea Production Systems During OperationsReliability Levels of Subsea Production Systems During Operations
Reliability Levels of Subsea Production Systems During Operations
 
Asset Managment
Asset ManagmentAsset Managment
Asset Managment
 
[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption
[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption
[Oil & Gas White Paper] Optimizing Pipeline Energy Consumption
 
Switch to Results in Commercial Buildings by Wipro EcoEnergy
Switch to Results in Commercial Buildings by Wipro EcoEnergySwitch to Results in Commercial Buildings by Wipro EcoEnergy
Switch to Results in Commercial Buildings by Wipro EcoEnergy
 
Operational Efficiency Based on Innovative Automation, Industry Expertise, En...
Operational Efficiency Based on Innovative Automation, Industry Expertise, En...Operational Efficiency Based on Innovative Automation, Industry Expertise, En...
Operational Efficiency Based on Innovative Automation, Industry Expertise, En...
 
Maintenance cost to Savings
Maintenance cost to SavingsMaintenance cost to Savings
Maintenance cost to Savings
 
Enhance your aged infrastructure without impacting operations
Enhance your aged infrastructure without impacting operationsEnhance your aged infrastructure without impacting operations
Enhance your aged infrastructure without impacting operations
 
Example Of Business Operations Analysis Powerpoint Presentation Slides
Example Of Business Operations Analysis Powerpoint Presentation SlidesExample Of Business Operations Analysis Powerpoint Presentation Slides
Example Of Business Operations Analysis Powerpoint Presentation Slides
 
Energy Savings & Green Considerations in Motion Control Webinar
Energy Savings & Green Considerations in Motion Control WebinarEnergy Savings & Green Considerations in Motion Control Webinar
Energy Savings & Green Considerations in Motion Control Webinar
 
Condition Based Asset Management R K Gupta
Condition Based Asset Management R K GuptaCondition Based Asset Management R K Gupta
Condition Based Asset Management R K Gupta
 
Reliability, Maintainability and Levellised Cost of Offshore Wave Energy
Reliability, Maintainability and Levellised Cost of Offshore Wave EnergyReliability, Maintainability and Levellised Cost of Offshore Wave Energy
Reliability, Maintainability and Levellised Cost of Offshore Wave Energy
 
Monetizing Risks - A Prioritization & Optimization Solution
Monetizing Risks - A Prioritization & Optimization SolutionMonetizing Risks - A Prioritization & Optimization Solution
Monetizing Risks - A Prioritization & Optimization Solution
 
Giacomo Squintani, PTC presenation at Spare Parts 2013
Giacomo Squintani, PTC presenation at Spare Parts 2013Giacomo Squintani, PTC presenation at Spare Parts 2013
Giacomo Squintani, PTC presenation at Spare Parts 2013
 
Andrew martin - Knowledge Based Asset Integrity (KBAI™)
Andrew martin - Knowledge Based Asset Integrity (KBAI™)Andrew martin - Knowledge Based Asset Integrity (KBAI™)
Andrew martin - Knowledge Based Asset Integrity (KBAI™)
 

Offshore Europe 2015 1.0 LRED

  • 1. Working together for a safer world Optimizing equipment Safety, Operations and Cost performance. Offshore Europe 2015
  • 2. Lloyd’s Register Energy Agenda • Introduction • Risk and Reliability modelling • Key to optimization • Data quality and quantity • Reliability model principle • Application for BOP annular close function • Application for Mud pump fluid end parts
  • 3. Lloyd’s Register Energy Introduction • Prevention of over / under maintenance of safety and operational critical equipment is often encountered as problematic without loss of performance. • Combined with cost efficiency of keeping up with safety and operational performance adds an extra layer of complexity to the problem. • They seem to be conflicting factors. • A key aspect to this problem is awareness and knowledge about risk exposure involved. • This presentation will highlight a proven solution to create an optimal balance between cost, NPT and safety.
  • 4. Lloyd’s Register Energy Risk and Reliability modelling • Risk is defined as the probability of failure multiplied by the effect of that failure. • Probability of failure: how often something fails. (Knowing how it fails or what makes it fail is equally important for effective maintenance = reliability improvement) • Effects are for example safety, compliance, NPT (pulling a BOP), loss of income, etc
  • 5. Lloyd’s Register Energy Risk and Reliability modelling: working in tandem Operational success (Safety increase / NPT decrease ) is strongly dependent on the reliability of technical equipment and related through risk reduction. Unsuccesful performance Major Accident Hazards : Top Event Non Productive Tim e : NPT/ CostsSuccesful performance Safety Uptime: Income Sustained operational and safety performance, addressing NPT root cause and costs: Safety - NPT reduction Effective asset management: risk / reliability based information and prioritization of safety and operational critical components. Risk reduction
  • 6. Lloyd’s Register Energy The key to optimization • A reliable system assures safe and efficient operations: lower overall risk exposure. o Reliability can be achieved in either the design or by maintenance that affects equipment failure. o Reliability is measured through failure probability o Reliability affects both safety and operational equipment performance at ‘x’ cost. o Maintenance can often only being done within a certain (operational-)timeframe. Reliability management is very suitable to optimize NPT and safety on a cost basis as all are risk aspects and form a perfect balance beam: cost of the risk of failure vs. the cost of failure prevention.
  • 7. Lloyd’s Register Energy The key to optimization • Risk and its associated cost are key to optimize between over and / or under maintenance for safety and operational performance. o Component risk of failure is dependant on the system and its functionality that component operates in. o Component risk of failure is dependant on the level of redundancy of these components in that system. o The effect of component failure, expressed in cost, is therefore different for different functionality. • Lloyd’s Register Energy Reliability model takes these differentiations into account.
  • 8. Lloyd’s Register Energy The key to optimization • The main focus of Lloyd’s Register Energy’s Reliability model is to assist in cost balance without loss of critical equipment functionality in future operations: Safe and effective delivery of a well with a focus on cost optimization. • The essence of Lloyd’s Register Energy’s Reliability model is the ability to balance cost of the risk failure with the cost of failure prevention. • Typical statements for our reliability model: “Lacking data quantity or quality is not a reason not to start” “Is the value of the risk that was prevented equal or higher as the cost of preventing (i.e. maintenance)?” “Forecasting what needs to be done now to prevent future component failures leading to NPT or unsafe situations” “Prioritization of maintenance work that has the highest effect on risk prevention: replacing now or later, what is the effect of replacement or maintenance, on future operations and cost-wise?”
  • 9. Lloyd’s Register Energy Data quality and quantity • Successful application of reliability modelling depends on data quality and quantity. • Improved data quality allows for more accurate reliability calculations, prediction and decisions. • Data quantity, also from different sources, mixed and matched (time and usage based) leverage data quality and quantity. • Data quality improves due to focussed data collection upon the start of a reliability project. • Data maturing cycle:
  • 10. Lloyd’s Register Energy Data quality and quantity: using small data samples • How does it look like: raw failure data from asset management system. • Using only corrective maintenance (failure) data leads to a too conservative MTTF.
  • 11. Lloyd’s Register Energy Reliability model principle • Example of reliability model principle (input can be time, usage (i.e. cycles, miles)) Net. expected positive difference on cost of risk: $ 330 000
  • 12. Lloyd’s Register Energy Reliability model • The optimal effect is achieved when focussing on component failure analysis to optimize functional (reliability) performance and success. • This allows for demonstration of maintenance effect and cost motivation against operational success or cost of being unsuccessful. • Combination of functions and components • Optimized component reliability = optimized performance = optimized function = operational success . • Adding cost of repair, spares and cost of risk of failure allows for a cost balance: a means to align operations and maintenance departments talking a similar language: less confusion: better decision motivation.
  • 13. Lloyd’s Register Energy Reliability model applied for a BOP annular function • Example of BOP operational usage in 7 scenarios.
  • 14. Lloyd’s Register Energy Reliability model applied for a BOP annular function • Maintenance and Inspection reliability based prioritization • Maintenance matrix: risk based urgency • Maintenance Plan Reliability informed (Reliability – System contribution – Cost) • T5 / 110 days • T6 / 185 days • T7 / 210 days
  • 15. Lloyd’s Register Energy Reliability model applied for a BOP annular function How does it look like:
  • 16. Lloyd’s Register Energy Reliability model applied for mud pump maintenance • Mud Pump 1 & 2 • Each mud pump has three cylinders, numbered 1, 2 and 3. • Each cylinder has one piston liner and one piston. • Each cylinder can be configured with a combination of piston and liner of a specific size. The rig uses 5-inch, 6-inch, and 6½-inch liner diameters. • Two mud pumps need to be used for 12¼ inches holes and larger. • Costs consumables Component Diameter/type Price [Euro] Note Liners 5” 2200 Ceramic 6” 2160 Ceramic 6.5” 510 Steel Pistons 5” 90 6” 110 6.5” 205 Valves Suction & Discharge 120 Seats Suction & Discharge 85
  • 17. Lloyd’s Register Energy Reliability model applied for mud pump maintenance • Only 1,5 years of data • Different types valves, seat, pistons and liners. • Data sets merged to increase accuracy.
  • 18. Lloyd’s Register Energy Reliability model applied for mud pump maintenance • Preventive replacement because of uninterrupted operation required for both mud pumps (minimum flow requirement 12¼ inch hole): • Cost of spare parts vs. cost of down time • Figure below assumes a one hour repair • Preventive replacement is cost efficient from a usage of 250 hours.
  • 19. Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates. Copyright © Lloyd’s Register Energy Drilling. 2014. A member of the Lloyd’s Register group. Lloyd’s Register Energy Drilling Gapingseweg 1A, 4353 JA Serooskerke, Netherlands T +31 118 563 050 Working together for a safer world Pieter vanAsten Senior Concepts manager – Innovation E: pieter.vanasten@lr.org