Understanding Asset Integrity

Defining Asset Integrity

Asset
All physical operation. facilities required for the

Asset Integrity
Ability of an asset to perform its required function to its design capability effectively and efficiently whilst safeguarding life and the environment.

Asset Integrity Management

Means of ensuring that : People, Systems, Processes and Resources which deliver the integrity, are in place, in use & fit for purpose over the whole lifecycle of the asset.

Is Asset Integrity Necessary?

Are Asset Monitoring systems satisfactory? Is Key Staff Competent? Is Maintenance of assets good? Is Design adequate for the application? Have you exceeded design life of asset? Have Changes been adequately controlled? Are Emergency procedures defined? Is the Integrity process independently audited/verified? The list could go on.

Typical Retrofit: Topdrives

Cantilever level

Standard turn table drive

Top drive

Will the derrick withstand the torsion loads? Like legs, has derrick been analyzed for inertial forces from most severe transit motion?

How Often Do You Check?

Worn rack teeth change the contact ratio and thereby the design assumption

Does Operating Staff Know?

When brake discs need to be checked?

When the springs been renewal?

How much is the brake holding torque?

How much lining wear is permitted before changing discs?

How much is the allowed airgap?

Are these details part of the maintenance procedures?

How Assets were Lost

Weve seen these before.

26 Years Previously
Faults

found in design and construction

Ineffective

regulations and quality oversight

Loss

of watertight integrity
Water

entered into the ballast control room

Lack

of survival gear and training

Crew

OCEAN RANGER 1982: 84 persons died; loss unknown

did not understand how to operate the ballast system

Courtesy DNV

20 Years Back
Lack of communication between shifts Three parallel gas trains One closed down Safety valve removed Next shift, started closed train again Consequences escalated Platform not designed for explosions Surrounding platforms production increased Assumed living quarters a safe place Several did not try to evacuate Courtesy HSE UK

PIPER ALPHA - July 1988: 167 fatalities, loss $ 1270 million

17 Years Before
First structure without independent 3rd party verification Water pressure exceeded the capacity of the structure - cells imploded, the structure sprang leak and sank Total loss of about $700 million Sleipner A - August 23,1991: 0 fatality, loss $ 365 million

Courtesy HSE UK

7 Years Back
Pumps for repair without taking any other alternative preventive action Opening ballast tank for inspection without following procedures Delay in activation of the drainage pump Deficient procedures and training to deal with emergency situations
Courtesy HSE UK

Petrobras 36 March 2001: 11 fatalities, loss $ 515 million

Recently 3 Years ago

Crane on platform nonoperational, caused upwind approach Boat collided with gas riser Riser protection ineffective No deluge protection Vessel operating with deficiencies Only two of eight lifeboats launched

BHN Platform 2005: 22 fatalities, loss $195 million

Then two years ago. in 2007

Rig oscillated in rough weather

Cantilever struck production valve tree

Sub surface safety valves unable to close completely Structural or jacking failure suspected Two months to kill well Large oil spill

Usumacinta 2007: 21 fatalities, losses undeclared

Investigations not yet made public

Courtesy HSE UK

Evolution of Change

26 Yrs 20 Yrs
BALLAST CONTROL

17 Yrs
7 Yrs 3 Yrs

MODU CODE REVISED SAFETY CASE REGIME ALARP PRINCIPLE

2 Yrs

Are we safe today?

INDEPENDENT DESIGN VERIFICATION

Unfortunately.

Feb 08: Crane boom crash on offshore rig, 1 dead, 1 injured

Apr 2008: Sudden crane boom crash injures one

Sept 2008: Helicopter crashes while taking off from Offshore rig in Dubai, 4 dead Oct 2008: Delay of SCR maintenance program on jack up rig causes fire, losses $200,000 April 2008: Helicopter crashes into Black Sea drilling rig, 19 dead Apr 09: Another helicopter crashes in offshore platform operations, 8 dead

Clearly.
Asset Integrity is a pressing need Previous attempts have had limited success Gaps are plenty Industry cannot afford to Learn from Own Experience We need to be Wiser without being Sadder

Why Now?
World Jack up fleet is not getting younger Weather changes are threatening existing operating zones Insurance demands are making it less lucrative to operate in some areas These rigs are now migrating to safer benign areas The overall average regional rig age is thus likely to increase This does not have to be a problem except.

The Challenges
Maintenance programs have been sporadic and totally non-uniform Spares for obsolete equipment is a challenge Knowledge pool is being fast depleted Regulatory controls are not the same The migration/influx is changing the way things are done We need to have procedures in place to deal with the change

Are We Alone?
From 2004 to 2007: 29 organisations worked on the subject and issued a Toolkit to help organisations establish Asset Integrity. This was done but reports indicate the gaps still persist.

Overview Integrity Management Model

Protective Barriers
Layers of protection separate the initial hazard from the final undesired outcome. No layer is 100% effective, there are holes When the holes line up, the undesired event will occur

Element Model
Various key topics need to be considered when assuring integrity. These represent the principal aspects which need to be controlled by the Integrity Management System Can be considered as the layers of protection in the Barrier model.

Why all the Elements?

Is it not sufficient to just look at the Hardware? Is it not enough to maintain the asset? Is this an overkill? Has the Industry seen different? Unfortunately .Yes
PIPER ALPHA BHN PLATFORM

PETROBRAS 36 OCEAN RANGER

Assessing Organisation Risks

Establish the Standards Identify Organisation Risks Analyse the Risks Evaluate the Risks Put a Management system in place for the Risks Monitor & Review the Process

Establishing the Barriers

Asset Lifecycle Integrity

Design suitability Allocate funds for integrity in design Ensure compliance with codes at construction stage Ensure availability of design criteria Develop operating & maintenance strategy based on design Control asset modifications Monitor changing operating climate If acquiring, assets acquire carefully, addressing unknowns If retiring/scrapping assets do so carefully

Human Element

Ensure Equipment Serviceability Document and Publish Work Procedures Analyze workload for Key staff Establish Work Authorization Processes Above all .inculcate Integrity Behavior

Competency

Standards

Earmark staff with critical responsibilities Identify required competencies per Job Determine level of proficiency Establish relevant training standards Verify competency levels

Training

Monitoring

Establish and apply promotion criteria Prepare and apply RACI charts to key staff Refresh the competency periodically, especially emergency response

Monitoring & Review

Establish Asset Integrity KPIs Verify performance standards of barriers

Audit performance of Asset Integrity

Incident Investigations Benchmark performance against standards (Internal/ External)

Lastly
The world financial position will result in possible cutbacks More is being demanded from existing units Owners are upgrading assets, sometimes without adequate controls and checks

Platforms are seeing much higher loads than they were originally designed for
Additional well slots often with lower level of protection are being added Existing controls have failed previously If ever Asset Integrity was a priority it is TODAY

THANK YOU

Establishing AIMS
Systems & Processes Identify & Introduce Standards, CoPs, RPs Establish Integrity Documentation ( Identification, Verification, Approval & Controls, etc) Establish Competency Assurance Systems Establish system to Identify & Register all Integrity Critical Eqpt & Systems

Establising AIMS Contd

Establish Performance standards for all Integrity Critical Equipments & Systems Revisit Project processes & introduce Integrity review processes Establish Quality Assurance systems for Supply chains Establish Project Handover documentation requirements Establish Integrity Inspection, Testing, Monitoring, Maintenance Planning & Scheduling

Engineering & Design

Ensure that proper engineering & design data is available for all assets Confirm that the assets are being operated within design limits Modify if required the operation to match design capability

Inspection & Certification

Ensure that clear inspection procedures and frequency is established Ensure that certification bodies are competent

Competency & Training

Identify staff that have responsibilities for asset integrity Attach documented competency requirements for the tasks Evaluate staff for gaps in competency Train staff to address the gaps Re-evaluate staff for training effectiveness

Management of Change
Confirm that MOC addresses all aspects of Company business Establish a corporate level ownership for MOC Using the HSE Observation program revisit previous MOCs and remove anomalies

Audit & Quality

Establish an audit program to confirm effectiveness of Asset Integrity Systems Appoint suitable auditors with skills for integrity audits

Asset Integrity Growth

Optimized
Is Best Practice. Capable of learning and adapting itself. It not only uses experience to correct any problems, but also to change the nature of the way it operates.

Managed

Can control what it does. It lays down requirements and ensures these are met through feedback.

Defined
Can say what it does and how it goes about it.

Repeatable

Initial

Can repeat what it has done before, but not necessarily define what it does do.

Lowest level, learner, ad hoc, defined by absence of qualities in higher levels.

Enter Asset Integrity

1. System & Processes 2. Maintenance 3 . Engineering & Design 4. Audit & Quality 5. Inspection & Certification 6.Competency & Training 7. Operation

Is Rig Upgrades the Answer?

Maybe. but
Structural Fatigue Study must be based on degraded condition Apply environmental loads based on operating history Be careful with localised stiffening of structures Prepare revised inspection plans based on design review Update rig documentation manuals and drawings Re-train key staff for change