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The Best Strategy for Asset Integrity


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The Best Strategy for Asset Integrity

  1. 1. The Best Strategy for ASSET INTEGRITY By Darwin Jayson Mariano Special Supplement
  2. 2. Asset Integrity: It’s All About Taking Action In the wake of some of the biggest disasters that happened within the Oil & Gas industry over the past couple of years, the quest for asset integrity have made significant progress. However, much still needs to be done. Asset integrity relies on many people doing many things right and we all know how difficult this could be. From maintenance to engineering to inspection all the way to data management, things could go wrong, or worse, could be ignored. In the words of Datuk Anuar Taib, Vice President/CEO – Production & Development, PETRONAS and President, PETRONAS CARIGALI, “with Asia Pacific predicted to be a hub for global gas development over the next five years, we need to ensure there is strong asset integrity management, based on sustainability and HSE principles in all aspects of our Exploration and Production activities.” There are no truer words spoken. As the Asia Pacific region trundles on to assume a more significant role in oil & gas production, the need for asset integrity management becomes even greater. Derek Park, an industry veteran and one of the leading thinkers from Oil & Gas IQ offered an enlightening perspective on the subject in one of the articles he’s written recently. Here are the excerpts: “In all organisations, it is easy to see the big problems but few people are even aware of the many other issues, let alone able to develop effective answers. How can we know if we are vulnerable? These are just some of the danger signs: ■ Staff across the organisation often feel that their concerns about plant integrity are not being taken seriously. They feel that there is little point in raising issues because nothing will be done. There is no process to help and encourage front line staff to rectify problems which are known to them and that they could routinely and legitimately deal with. ■ In many operations things happen despite, not because of, the formal procedures. There is a tacit understanding that that the rules have to be bent to get the job done and managers simply turn a blind eye. No attempt is made to understand why this might be and what should be done about it. ■ It takes a crisis or a disaster to initiate change which is then led by high powered enquiry teams who drive specific but often narrow actions ‘top down’ into the business. There is usually no understanding that the findings are not comprehensive and that the so To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  3. 3. called ‘root causes’ are in fact just the tip of a very big iceberg. The real root cause of most incidents is that organisations rely too much on procedures and ignore many things which the procedures do not or cannot control. ■ Engineers and operations staff are increasingly seen as a commodity to be bought at the lowest price. Little value is attached to acquired local knowledge, informal staff networks and basic loyalty. ■ When change comes, it is usually developed with little involvement from front line staff who, at best, will be lukewarm to something they see as an external imposition. Programmes are usually expensive, driven from the top and often take months, if not years, to implement. They are characterised by big files of procedural theory, special websites and huge roll out exercises. Often by the time the process reaches the front line, management has moved on to the next big topic and the implementation, at best, becomes a side issue, an irritant, a chore, or maybe just a tick box exercise. So what can be done? Many people acknowledge a general problem but unfortunately, few have the vision or ability to see the solution. If we accept that in even a well-run organization, there are still many problems, any one of which could cause the next loss, then where do we start? How can we design an asset integrity system which is guaranteed to identify and remedy all these things? The answer is we can’t. There is no inspection regime, database and set of operating procedures that can cope with absolutely everything. We must do all we can to ensure they are as good and effective as possible, but we also have to recognise that there will still be a shortfall. So what is the answer? Integrity systems are often seen as standalone pieces of process that run in parallel with operations. From their point of view, staff sees them as ‘policing’ their activities rather than as something which helps them improve safety and performance. Staff should see themselves as a key part of the integrity process. They should feel able to use their local skills and knowledge to fix small, routine problems as they arise rather than wait and hope for the ‘system’ to deal with them later. We can only hope to plug the many small but critical gaps in integrity systems if we take advantage of this local expertise. This may require a different approach from staff and management. It is “with Asia Pacific predicted to be a hub for global gas development over the next five years, we need to ensure there is strong asset integrity management, based on sustainability and HSE principles in all aspects of our Exploration and Production activities.” not about suggestion schemes and feedback forms but something much more comprehensive. The good news is that there are plenty of examples of this being done successfully and the even better news is that it brings many other business benefits alongside improved integrity. Nothing happens in life unless people take action. Even the best formal integrity systems remain vulnerable if staffs are not a central part of the process. The eyes and actions of those on the frontline offer the only hope of plugging the inevitable gaps.” To safeguard the oil & gas industry’s assets and optimize the investments that have already been made, every stakeholder must recognize this. About the Author: Darwin Jayson Mariano is the Digital Content Manager and the Regional Editor - Asia for International Quality & Productivity Center (IQPC), a leading producer of events and conferences for business leaders around the world. You can contact him on Twitter @whoisdarwin or email Special Supplement To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  4. 4. Success Formula To Optimise Oil & Gas Assets Here’s the formula and the right questions to ask to increase the life of your assets. Find out where you are and where you want to go. 1. • Have you established an asset management framework with clear objectives and processes? • How will you ensure consistent performance of assets, throughout their lives and still deliver corporate objectives profitably? • How will you determine the criticality and value of assets? • Do you have a toolbox of techniques to manage all asset related risks? • How will you develop inspection, test and maintenance plans? Learn how to get there. • How will you execute inspection, test and maintenance plans? 2. • How will you allocate roles and responsibilities to the right people? • Is there proper documentation and communication between asset stakeholders? Evaluate the actual performance. 3. • How What tools or processes are you using in assessing and improving performance?are you monitoring and managing deviations? • What tools or processes are you using in assessing and improving performance? • How can you continually improve the performance of the Asset Integrity Management System with the data collected? Conduct thorough review of operations. 4. • Have you achieved your objectives in your asset integrity management process? • How can you perform even better next time? • What went wrong? • What needs to be changed going forward? • How will these results, help solidify resources, competency needs and the processes needed for the asset’s life cycle? To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  5. 5. 24 Pillars that Make a Winning Asset Integrity Management/HSE Strategy 1. Performance Management The strategic and integrated approach to increasing the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. 5. 6. 2. 3. 4. Knowledge Management We are told that knowledge is information and data put into context. KM strategies comprise a range of practices to identify, record and distribute best-practice insights and experience across verticals. This is especially important to the oil & gas industry with the Great Crew Change looming. Communications Both internal and external communications are crucial in management and seeding of strategy and message on all rungs of the corporate ladder. Good communication can be summed up as a winning combination of “The Four Ms” – Message, Messenger, Meaningful and Medium Continual Improvement Process Pioneered by W. Edwards Deming, this is an approach that centres on optimizing whole systems rather than treating problems in isolation to foster continuous performance improvements. 7. Competency The behaviours and technical attributes that individuals must acquire to perform effectively in their role. This can be nurtured and monitored through a competency framework and competency-based review. Information Management The organization of and control over the structure, processing and delivery of information. Procurement The acquisition of goods or services of the best quality for the best price. In oil & gas, more than other industries, procurement is governed by state-specific local content quotas that demand a certain percentage of goods or services be sourced from indigenous national providers. 8. Logistics The precise management of the flow of goods, information and other resources from the point of consumption. 9. Planning & Scheduling If logistics is the process of getting things and people from A to B, planning and scheduling is ensuring that tasks are timetabled and occur with snap precision at an allocated time. 10. Contract Management Negotiating contracts with clients, vendors, partners or employees and ensuring compliance with the terms and conditions stipulated therein. 11. Shutdowns & Turnarounds The deliberate, methodical and periodic suspension and restart of operations at a facility for the purpose of essential maintenance. 12. QA/QC Quality Assurance (QA) is the systematic process of ensuring a product or service is meeting mandatory requirements. Quality Control (QC) is the activity of providing evidence needed to establish quality in work, and that the activities that require good quality are being performed effectively. 13. Materials & Inventory Management The control, tracking and distribution of stock throughout an organization. Increasingly, real-time Radio Frequency Identification (RFID) and e-tagging technologies are becoming prominent in the oil and gas industry in this regard. 14. Reliability Management The practice of maintaining the ability of a system or component to perform its required functi ons under stated conditions for a specified period of time. Special Supplement To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  6. 6. 24 Pillars that Make a Winning Asset Integrity Management/HSE Strategy (continued) 15. Change Management The structured approach involving the transitioning of individuals, teams and organisations from a current state to a desired one, whilst minimising the impacts on employees and maintaining business continuity. 16. Process Safety Management Major disasters are rarely caused by a single failure, but are a result of multiple malfunctions. PSM must be integrated into all areas of design, management and operation of equipment to avoid the perfect storm of coinciding mishaps. 17. Security Safeguarding the physical security of a facility and security of supply is as important as upholding reliability of process, especially in the political climates in which the oil & gas industry operates. 18. Regulatory Compliance Adherence to the legal tenets set out by national and supranational governmental and regulatory bodies. 20. Equipment Maintenance Preventive and reactive upkeep of essential operational machinery, including periodic repair strategies and cleaning regimes. 21. Site Ownership Whether this is a national or regional jurisdictional issue, this will consist of the apportioning of responsibility at a solely or jointly owned facility. 22. Unscheduled Loss Mitigating the causes and effects of an unforeseen loss of hydrocarbons due to a breach in primary containment. 23. Real-time operations The ability to instantly analyse data, troubleshoot problems and make informed decisions to optimize performance, lower costs and lessen risk. 24. Forecasting The accurate calculation of hydrocarbon capacity in terms of production, factoring in asset capability and any unscheduled shutdowns and downtime. 19. Safety The umbrella covering that the physical assets involved in the production process as safe to use. To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  7. 7. Improving the Integrity of Piggable and Non-Piggable Pipelines to acceptable limits. Cross-country pipelines transporting petroleum & hazardous materials pose grave danger not only to the business but to local inhabitants & the environment. Some of the recent accidents on pipelines leading to spillage of hazardous products, fire & explosions have resulted in huge loss to precious lives, property & irreparable damage to environment. In my view, the most important factors that can contribute to success of the integrity management plan are: • Building integrity right from the design & engineering stage, maintaining the same during operations till final de-commissioning. • Following best international practices for pipeline maintenance & asset integrity complying to all statutory requirements. • Strict adherence to SOP’s/SMP’s, training & awareness of all stakeholders. Alok Gurtu, Head - Pipeline Integrity for Reliance Gas Transportation Infrastructure Ltd. is presenting at the Asset Integrity Management Summit Asia 2013 conference in Malaysia. To attend, email or call +65 6722 9388. Excerpts of the interview with Alok Gurtu, Head – Pipeline Integrity for Reliance Gas Transportation Infrastructure Ltd. Alok Gurtu has more than 20 years’ experience in operation & maintenance of pipelines including cathodic protection. He established pipeline integrity management system in RGTIL and now has been tasked to provide PIMS for other Reliance Group Pipelines in India. Some of the important assignments being carried out presently are commissioning of ICCP for EWPL, mitigating severe DC & AC interference problems, intelligent pigging of EWPL, detailed study on debris analysis, repair & rehabilitation program based on ILI findings. He has been a member of PNGRB team in formulating new standards for PIMS. Darwin Jayson Mariano: In improving the integrity of piggable and nonpiggable pipelines, what factors contribute to success? Alok Gurtu: Improving the integrity, simply means lowering the risk of failure DJM: What are the latest techniques in modern pipeline integrity assessment? AG: For piggable pipelines, inline inspection or intelligent pigging using various technologies like MFL, UT, eddy current or a combination of such NDT methods depending on the type of flaws / anomalies one is expecting in the pipeline. This technique is highly accurate & capable of scanning the entire pipeline of all possible defects. For non-piggable pipeline, direct assessment methods both for external & internal corrosion (ECDA & ICDA) has been the most acceptable & widely used wwmethods for integrity assessment. However, it suffers from its limitation of the inspection of entire pipeline & relies on the inspection results of few dig verifications. The latest techniques available nowadays are the intelligent tools that can be inserted from one side or even from branch lines/fittings for inspection & internal photography and can easily be retrieved. Long range ultrasonic testing (LRUT) is also one of the good techniques for integrity assessment of non-piggable pipelines subject to certain limitations depending on the type of external coatings, pipe material, location, number of branches/fittings. DJM: What are the new preventive measures employed by companies such as Reliance that are useful for large diameter pipelines? AG: RGTIL (Reliance Gas Transportation Infrastructure Ltd) follows the prescriptive type IMS based on the best international practices & fully complies to all statutory requirements of the country. Some of the best practices & latest techniques followed by RGTIL as preventive measures to safeguard the integrity of the pipeline are described below: 1. A combination of aerial , road & foot patrolling depending on terrain & vulnerability 2. Continuous online monitoring of cathodic protection(CP) status through SCADA 3. Field measurement of CP parameter by handheld CP Data logger, thus avoiding human error & complacency 4. Inline inspection of entire pipeline within two years of operation for collecting baseline data. 5. OFC based pipeline intrusion detection system(PIDS) for early detection & warning of third party activities in vicinity of the pipeline Special Supplement Special Supplement To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  8. 8. Latest Techniques in Gas Leakage Detection and Cathodic Protection 80000km in northern part of Pakistan. The factors to be kept in view for protection against external corrosion attack are: • Selection of appropriate coating material for buried MS lines. • Selection of surface preparation methodology as per ISO/NACE standards. • Design of cathodic protection system (impressed current/sacrificial anodes) as per current drain requirements of connected pipeline in line with NACE and ASME standards. Selection of coating, being the first line of defense against corrosion attack, plays an essential role in protection and it is supplemented by cathodic protection to overcome imperfections and discontinuities during coating application. DJM: What are the current techniques employed in gas leakage detection and cathodic protection? Amjad Mumtaz, Chief Engineer for Sui Northern Gas Pipelines is presenting at the Asset Integrity Management Summit Asia 2013 conference in Malaysia. To attend, email or call +65 6722 9388. Excerpts of the interview with Amjad Mumtaz, Chief Engineer for Sui Northern Gas Pipelines. Amjad Mumtaz is in-charge of ISO9001-2008 certified corrosion control centre that functions as a resource centre for design of CP system, fabrication of Air cooled Transformer Rectifier Units for installation on CP system, Inspection & Monitoring of CP system for more than 7000 KMs of Transmission & 60,000 KMs of Distribution network through 1440 CP stations and more than 30,000 Test stations. He is Vice Chairman of NACE Islamabad, Pakistan Section since 2009. Darwin Jayson Mariano: What are the important factors to consider in developing a surface protection programme for a large scale piping network? Amjad Mumtaz: We are protecting surface areas of natural gas pipelines of assorted diameters ranging from ¾ in to 36 in diameter with a total network of more than AM: Our experience with underground leak detection has been based on two kinds of instruments: 1) Flame Ionization gas leak detectors and 2) Laser based gas leak detectors. Flame ionization instruments were discarded due to erratic results and deficiencies in survey methodology. At present, we are using laser spectroscopy-based gas leak detectors with a sensitivity level of 1 ppm .The leak grading is based as per criterion defined in ASME B31.8. We have successfully scanned nearly 50000 km of our gas network and identified more than 100000 leaks of various grades. Flow samplers are also being used to calculate volumetric impact of gas loss due to these leaks. Other technologies in the market are Ultrasonic and Smart ball technologies. Some operators also recommend the use of sniffer dogs. The instruments based on Infrared spectroscopy are also available in the market. In order to protect our buried pipelines, we are using two kinds of cathodic protection systems. • Impressed Current Cathodic Protection system comprising of a dc power source, high silicon chromium anodes (tubular or solid) and associated electric circuitry as per design • Sacrificial anode system comprising of Mg Anodes installed on the lines if current requirement is less. The protection criterion to meet CP requirement is as per NACE SP069 and ASME B31.8. DJM: Is it possible to compute the pipeline assets’ integrity in commercial terms? How can this be done. AM: In my view, it is difficult to compute asset integrity of any pipeline in commercial terms. So far, we have guidelines provided by ASMEB31.8S code to manage all the issues related to integrity of pipeline based on integrity management programs established by the operator. The plans for integrity assessment, change management, communication, quality and emergency response, if formulated after correct risk assessment against all pipeline threats, can give an estimated commercial basis for computation .Most of the operators are interested in remaining life calculation of assets for future investments and core business instead of life cycle assessment. Disclaimer: Please note that we do all we can to ensure accuracy and timeliness of the information presented herein but errors may still understandably occur in some cases. If you believe that a serious inaccuracy has been made please let us know. This article is provided for information purposes only. IQPC accepts no responsibility whatsoever for any direct or indirect losses arising from the use of this report or its contents. To attend Asset Integrity Management Summit 2013, email or call +65 6722 9388
  9. 9. In Collaboration With: Main Conference: 19-20 November 2013 Post-Conference Workshops: 21 November 2013 Venue: DoubleTree by Hilton Hotel Kuala Lumpur ASSET INTEGRITY MANAGEMENT SUMMIT ASIA 2013: STRATEGIES AND TECHNIQUES TO IMPROVE ASSET PERFORMANCE Challenges Addressed Include: • Developing A Multi-Vertical, Multiple-Asset Aim Strategy • Designing A Lean Aim Model • Implementing Hse Driven Aim Policies • Integrating Aim Feedback Into Future Feed And Construction Practices • Controlling Opex Through Effective Aim OPENING KEYNOTE: Datuk Anuar Taib Vice President/CEO - Production & Development, PETRONAS President, PETRONAS CARIGALI Other Speakers This Year Include: Alok Gurtu Head - Pipeline Integrity Reliance Gas Transportation Infrastructure Ltd Ho Bee Leong Manager – Integrity BW Offshore Mohamed Daoud Manager – Engineering & Projects (E & P) ABU DHABI COMPANY FOR ONSHORE OIL OPERATIONS Nasrul Salman Corrosion Specialist Bumi Armada Ngo Dinh Long Engineering & Maintenance Manager TNK VIETNAM B.V Nigel Wayne Nichols Custodian – Structural Integrity, Maintenance and Engineering PETRONAS CARIGALI Rehan Ahmed Trustee NACE Doha-Qatar Section Simon Ruston Taylor Head - Engineering & Maintenance PETRONAS CARIGALI S P Garg General Manager – HSE GAS AUTHORITY OF INDIA LIMITED Mohd Ashri Mustapha TP Principle Pipeline – Technical Services PETRONAS Sridhar Gopalakrishnan Senior Engineer - Materials & Corrosion Dubai Petroleum Zahrin Zain PETRONAS Sundralingam Muthanandan Principal – Rotating Equipment PETRONAS CARIGALI Tommy Tang APME Regional AIMS Business Development Manager DNV Software Anoop Naik Head, Planning Reliance Gas Transportation Jonathan Cook Senior Consultant Business Development ABB Consulting Nirmal Pullikundram Major maintenance lead WOODSIDE ENERGY Syahriman Shahir Senior Integrity & Corrosion Engineer Carigali - PTTEP Operating Company Amjad Mumtaz Chief Engineer Sui Northern Gas Pipelines Janin Girie Head - Operational Excellence PETRONAS Special Supplement