RBI Implementation Challenges & Resolution Strategies – Established Plants vs New Plants

1. ENGINEERING RBI Implementation Challenges & Resolution Strategies – Established Plants vs New Plants Reza Shahrivar, Asset Integrity Manager Keith Walton, Business Development Manager www.Lteng.co.uk LIFETECH

2. About the Speakers & LifeTech Engineering Ltd • Introduction – RBI & the Stages of Equipment Life • Different Clients & Experiences • Data Quality and Availability • Damage Mechanisms Identification & Degradation Rate • Risk Matrix • Inspection Planning & First Inspection • RBI Team • Project Duration • Solution Strategies • Summary AGENDA

3. 24 Years of Experience • BSc. Chemical Engineering - Technical Inspection. • MSc. Materials Engineering – Corrosion. • PhD Candidate – Life Extension • Chartered Engineer – Energy Institute. • Integrity management experience (Integrity, Inspection, Corrosion, RBI & FFS) both in the UK and overseas. • Experience of working with large operators and service companies such as Total, BP, Apache and Lloyd’s Register. • 30 Years of Experience  • BA Business Studies. • MSc Computing Science. • Experience of general management,  operations management & business  development. • 25 years involvement with the Aberdeen Oil & Gas industry in a number of AIM related roles. • Experience of working with large operators, drilling contractors and service companies such as Apache,  BP, Chrysaor, Maersk Drilling,  Petrofac, Shell, Subsea7, Total, & Wood.  About the Speakers from LifeTech Engineering Reza Shahrivar Asset Integrity Manager Keith Walton Business Development Manager

4. LifeTech Engineering is a leading oil & gas Asset Integrity Management (AIM) service company, providing specialist software, consultancy and training throughout the Asset lifecycle. • We have established AIM, implemented RBI and carried out Life Extension studies Upstream, Midstream and Downstream. • We have developed innovative software: • RBLX for RBI, including a Non-Intrusive Inspection •             (NII) module • FITest for Fitness for Service Assessment • FUSION for Life Extension Assessment About Lifetech Engineering Ltd

5. Risk-Based Inspection (RBI) identifies Assets for inspection based on their associated risks rather than a predetermined fixed time interval. • RBI has replaced Time-Based Inspection in the oil & gas industry. • Risks are managed primarily through equipment inspection. • Inspections are based on a Risk Matrix where: Introduction - RBI RISK MATRIX • Risk = Probability of Failure (PoF) x Consequence of Failure (PoF)

6. The HSE report RR5091 describes 4 stages of Asset/Equipment life, each with certain characteristics, and having a different management, inspection and maintenance strategy: • Stage 1: Post Commissioning (‘Initial’) • Stage 2: Risk-Based (‘Maturity’) • Stage 3: Deterministic (‘Ageing’) • Stage 4: Monitored (‘Terminal’) • QUESTION: When should you start practicing RBI? • ANSWER: As early in the life-cycle as possible until the Asset reaches Terminal stage. • Which leads us to consider adding a stage: Stage 0 (Design and Construction Stage). • For NEW Assets, RBI should begin at Stage 0. • 1 UK HSE Research Report RR509 – Plant Ageing Introduction – The Stages of Equipment Life

7. Inspection Period The Stages of Equipment Life+ 1 Stage 0            Stage 0: EPC (‘New Project’)                    Stage 3: Deterministic (‘Ageing’)   Stage 1: Post Commissioning (‘Initial’)     Stage 4: Monitored (‘Terminal’)             Stage 2: Risk-Based (‘Maturity’)               

8. Stage 0: New Project Risk Assessment  • An RBI assessment made on new equipment, while in the design stage, can yield important information on potential risks.  • This allows potential risks to be minimized by design and have an RBI plan in place prior to actual installation. • Follow API 580 guidelines The Stages of Equipment Life Stage 0

9. Stage 1: Post Commissioning & Early Life • As new equipment comes into service there may be a relatively higher rate of damage accumulation and issues requiring attention. There are two main causes:  • Experiencing service conditions for the first time reveals a weakness or fault in the design, materials or fabrication, e.g. incorrect dimensions, faulty material, welding procedures or fabrication defects. The Stages of Equipment Life • Bedding-in effects experienced by equipment when it enters service, e.g. installation stresses, variations in service conditions, leaking valves, incorrectly fitted bolts or seals. .  Stage 0

10. Stage 2: Risk-Based (‘Maturity’)  • Equipment is predictable, reliable and is assumed to have a low and relatively stable rate of damage accumulation. • Few issues require attention and equipment is operating within design limits.  • Examination and inspection, maintenance and NDT are used generally to confirm the basis for these assumptions, and their scope and periodicity can be risk-based.  The Stages of Equipment Life Stage0

11. Stage 3: Deterministic (‘Ageing’)  • Equipment has accumulated some damage and the rate of degradation is increasing. • Signs of damage and ageing are starting to appear. • It is more important to determine the extent and rate of damage quantitatively and to make an estimate of remaining life (FFS).  • A more proactive approach to equipment management, inspection and NDT is required.  • Movement towards fitness-for-service and remaining life assessment of equipment.  The Stages of Equipment Life Stage 0

12. Stage 4: Monitored (‘Terminal’) • As accumulated damage becomes increasingly severe, equipment will need to be repaired, refurbished, decommissioned or replaced.  • The rate of degradation becomes increasing rapidly and difficult to predict. • In this Stage, the main emphasis is on guaranteeing adequate safety between examinations while keeping equipment operating as long as possible.  The Stages of Equipment Life • Equipment is managed through on-line monitoring of the damaged areas, or by more frequent NDT to assess flaws & make repairs.  • Reduction of the duty may be an option to maximise usefulness before decommissioning.  • By this Stage no guarantees can be made about future service life beyond the next examination. Stage 0

13. Facilities approaching the end of their economic or operating service life are a special case where application of RBI can be very useful – gain the maximum remaining economic benefit from an asset without undue personnel, environmental, or financial risk; the basic doctrines of RBI1. • Inspection efforts focus directly on high-risk areas where the inspections will provide a reduction of risk during the remaining life of the plant.  • Inspection activities that do not impact risk during the remaining life are usually eliminated or reduced. • 1 API 580 RBI at End of Facility Life Stage

14. RBI at Different Stages of Equipment Life

15. RBI for New Projects vs Established Projects

16. Different Clients & Experiences • New Projects • Normally:  • Time limitation, end of the EPC work. • Restricted budget. • Limited experience of implementing RBI & low priority at EPCs. • Most of the comments regarding RBI from the future operator will come  • at the end, therefore, • limited time to resolve – • pressure to deliver into • service.  • EstablishedProjects  • Normally: • Established system, difficult to make changes (custom & practice). • Busy with day to day operation (task overload). • Additional task for the plant engineers. • Have to integrate many established procedures into the RBI system.  Current Operator Future Operator EPC Company RBI Contractor RBI Contractor

17. Data Quality & Availability • EstablishedProjects • Low quality drawings. • Missing drawings. • Discrepancy between data from line list, P&IDs, Inspection reports, general arrangement drawings, etc. New Projects • Data available electronically.  • Drawings and data are updating during the RBI project. • Isometric drawings not available. • Baseline data will come shortly after the RBI project!

18. Damage Mechanisms Identification & Degradation Rate • EstablishedProjects • Client wants to address specific Damage Mechanisms; however, these are not dealt with in • API 581. • Use API 571 in addition, however, no calculations in API 571. • Different degradation rates & DMs present on different lines in a Corrosion Loop. New Projects • No real data available as first inspections have not started. • Theoretical models are used to estimate the corrosion rates. • Theoretical models are used to estimate cracking susceptibilities. • Essential to record all assumptions made for future reference.

19. Risk Matrix • EstablishedProjects • There is no confusion about the risk matrix. • There may, however, be more than one historical RBI risk matrix; these may differ in their assessments and lead to conflicting inspection plans. • Customisation of the API 581 Risk Matrix.  New Projects • There may be confusion between the Project risk matrix and the RBI risk matrix; these are not the same. • Project risk matrix addresses the issues which could prevent timely delivery of a project, e.g. availability of raw materials and spare parts, labour shortages, etc. • RBI risk matrix addresses the issues which could affect equipment performance during operational life, e.g. Damage Mechanisms and other external factors.

20. Inspection Planning & First Inspection • EstablishedProjects • Difficult to change historical inspection intervals – custom & practice is prevalent. • Various established references & criteria in defining time-based intervals. • Established, time-base inspection plans used for producing WSEs; need to be revise to address new inspection plans due to the move to RBI .  • Difficult to change established habits; acceptance and buy-in from inspection engineers is essential. New Projects • Need to combine RBI inspection plans with the First Inspection plan (normally time-based). • Time-Based first inspection (every 2 years).

21. RBI Team EstablishedProjects • Inspection Engineer plays a critical role in reviewing inspection history. New Project • Corrosion Engineer plays a critical role  to identify potential DMs and their effects (corrosion rates).

22. Project Duration New Project • Shorter projects due to readily available data (electronic format) and inspection reports not yet generated (normally less than a year). • Is a blank canvas on which to establish a robust approach to RBI assessment. EstablishedProjects • Longer projects due to data unavailability, data quality and inspection reports (normally more than a year). Analysis Data Gathering Analysis Data Gathering Project duration Project duration

23. Solution Strategies New Project • Use an RBI software with the ability to calculate theoretical degradation rates. • Establish connection with the future operators as well as the EPC contractor. • Consider time wasted for revision of any work due to newly updated documents & drawings, e.g. Mark up of Corrosion loops on P&IDs. • Ensure that the first post-commissioning inspection requirements are considered in the RBI plans.  • Use an experienced RBI team, particularly the corrosion engineer.

24. Solution Strategies EstablishedProjects • Create a joint team between the contractor & company.  • Involve plant inspectors, corrosion engineers & process engineers from the start. • Make data assumptions for low risk equipment & piping (e.g. utility) to save time. • Decide about risk matrix & risk targets at beginning of the project. • Register inspection effectiveness per each inspection for future references. • Use representative dead legs instead of assessment of all dead legs. • Use representative nozzles instead of assessment of all nozzles. • Do several tasks in parallel to save time e.g. mechanical data gathering in parallel with inspection reports review. • Use experienced RBI team, particularly inspection engineers.

25. Summary • RBI can be done for all Stages of equipment life, ideally RBI should be addressed at EPC stage (Stage 0) before initial inspection. • There are different challenges for each Stage. • Note the challenges and have a robust strategy in place for each Stage. • Define and agree clear Scopes of Work. • Work schedules should be realistic, consider all issues and challenges. • A competent and reliable software is required which can address each Stage. • Assemble a competent team of specialists, comprising of Client and RBI Contractor personnel. • Regular review meetings and open communication between all parties is essential. • Lessons learned workshops should be conducted at set periods of the project.   • Present and discuss RBI results with technical authorities and management; agree future programme of work.

26. Thank you LifeTech Engineering Ltd Reza.Shahrivar@Lteng.co.uk Keith.Walton@Lteng.co.uk +44 (0)1224  824112