Techni cal Audit of Oil & Gas Pipe lines PNIS Project

1. Technical Audit of Oil & Gas Pipelines PNIS Project Contract : 1,4 M € Consortium : Technipipe/AETS www.technipipe.com from July 2005 to December 2006

2. Technical Audit Pipelines @ PNIS • Maintain and improve the long-term integrity of the Central Asian Oil & Gas pipelines export to EU, • Overcome the gap of working environment between NIS and Western oil & gas pipeline companies. • Use the establishment of a Pipeline Network Information System as a basis for transfer of technology and procedures to the gas transmission companies of Central Asia.

3. Technical Audit Pipelines @ PNIS

4. Technical Audit Pipelines @ PNIS • Overall objectives • The industrial tool, the pipeline network should no longer be seen as a black box and should become totally transparent (glass box). At any moment, the actual state of the pipeline system and its evolution in time can be displayed. • The best way to get people to really care for the cathodic protection is to show them concretely the consequences of an ill maintained system.

5. Technical Audit Pipelines @ PNIS • SWOT of The Beneficiaries • Strengths • -Large experience in pipelines & Strong organization • -Good education background & Common working language (Russian) • Weaknesses (issues) • -Poor overall status of pipeline & no separate regulation organization • -Lack of exposure to the new technologies and Western standards • Threats (risks) • -Competition between the Beneficiaries for leadership • -Gaps of competence, procedures and technology will have to be filled • Opportunities and Assumptions • -The Steering Committee to reinforce the regional approach. • -The ground for a team of regional expert will be explored

6. Technical Audit Pipelines @ PNIS • Project Team based in Tashkent • -Project Manager • -Team Leader • -Software Expert (PNIS) • -Inspection/Maintenance Expert • -Training/Inspection Expert • -Teachers from Gubkin oil & gas University (Moscow) • -Local Coordinator, Junior Expert, services

7. Technical Audit Pipelines @ PNIS

8. Technical Audit Pipelines @ PNIS • Various phases of the Project : • -Inception • -4 Steering Committees (France, UZ, KZ) • -4 Dissemination seminars (UZ, KZ, KY,TU) First 4 months : « Inception trips » : ..Analysis of environment, identification and contact of partners/ beneficiaries, clarification of project objectives and strategy, ..Approval from Beneficiaries of planned activities, specification of PNIS…

9. Technical Audit Pipelines @ PNIS • Khiva Training Center • Intensive usage of Khiva Training Center (Gas transportation Training Center assigned to the project by Uztransgaz). • Training Plan made up of 8 Modules designed after Competence/knowledge assessment • Modules 1 & 2 : engineering, design, construction and maintenance of pipelines (Khiva, Almaty & Moscow) • Modules 3 & 3bis : Inspection (using tools sourced from European suppliers)

10. Technical Audit Pipelines @ PNIS • Khiva Training Center • Module 4 : On site Above ground Inspections (in Bishkek area) • Module 5 : On line Pigging (in Samarkand with Rosen) of 40’’ x 156 km. • Modules 6 & 7 : PNIS implementation operation & maintenance (theory only) • Module 8 : Train the trainers (for the Beneficiaries to be able to train in their own countries)

11. Technical Audit Pipelines @ PNIS Conclusion • Priorities as per the 4 dissemination seminars : • 1)   Build/refurbish Cathodic Protection on full pipeline network. • 2)   Implement a large training program on Cathodic Protection • 3)   Collect the Cathodic Protection status by transmission network • 4)   Walk Survey weekly (Cathodic Protection efficiency, coating damage) • 5)   Prioritize above ground inspection (DCVG) where the Cathodic Protection has failed or if the Cathodic Protection data are wrong • 6)   Dig out the pipeline where coating defects are suspected and carry out  US measurements, eventually repair 

12. Technical Audit Pipelines @ PNIS • Priorities as per the 4 dissemination seminars : • 7)   Carry out intelligent pigging in the High Risk Areas    • 8)   Develop an Integrity Management System/RBI (Risk Basis Inspection) • 9)   Develop repairs by clock spring method  • 10) Collect the Cathodic Protection Data in real time • 11) Implement a PNIS • 12) Implement a SCADA system (for new or revamped pipelines)

13. Technical Audit Pipelines @ PNIS • PNIS is a “Pipeline oriented Geographical Information System” applied as a “Pipeline Integrity Management System” • It provides a tool to store and display the pipeline system (with pipe characteristics and inspection data) in its geographical environment • It provides the computational analysis to determine segment length & segment proximity to geographical land marks • It allows queries & reporting • It helps the user to classify the pipeline segments by pipe characteristics (diameter, pressure, coating, etc.) by pipe status (inspection data) or by geographical land marks

14. Technical Audit Pipelines @ PNIS • PNIS optimizes maintenance through Risk Based Inspection • RBI uses PNIS to : • Segment the pipeline according to risk factors • Identify risk contributors and deduce corresponding risk reducers • Rank / Assign weights to the risk contributors • Compute a risk factor per pipeline segment • And then to focus inspection on segments that most need it