Asset Integrity Management – a risk based approach

Turning Policy into operational practice

5th February 2014

Pipeline Integrity Management Forum 2014

Roy van Elteren

Head of Section Gas Infrastructure & Transport

DNV GL Oil & Gas

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Outline

Introduction to DNV GL Oil & Gas;

Asset Management Policy
Operational practice
– threat Identification
– Risk prioritization
– Inspection planning
– Respond & process improvement
Questions

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 DNV GL Group

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DNVGL: A new company with 150 years of experience

DNV and GL Noble Denton joined forces in September 2013. We’ve drawn
upon our proud heritages to create:

Greater technical expertise

Enhanced innovation capabilities
Extended global reach
An integrated service portfolio

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An integrated approach across the asset lifecycle
Our common way of working and global sales model delivers industry
best practice across the asset lifecycle. Core service areas include:

Risk management advisory Technical assurance

Technical advisory Certification and verification

Noble Denton marine assurance & Inspection and quality assurance

advisory Offshore classification

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Serving the diverse needs of the entire oil & gas value chain

Exploration & Transport & Delivery &

Production Distribution Use

Enabling Operational Excellence

Verification & Certification Services

Technology Innovation Services

Energy Business Decision Support

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 Asset Management Policy

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Asset Management Policy

Challenges for Asset owners/pipeline Operators;

– Prolong lifetime of Assets in operation
– Public awareness
– Pressure from authorities
– Accidents v.s near misses
– Accommodate Renewables & Unconventionals?
– Compliance to new standards and regulation

Operators are in the spotlight: “Show me you are in control”.

Creating an “umbrella” for all the (inter)national- and company standards
– Example; PAS55/ISO55000

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PAS55/ISO55000 overview

PAS55 : 2004
Physical Infrastructure Assets

The IAM Tool

PAS55 : 2008
Physical Assets

ISO55000 : 2014
Assets

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PAS 55 Improvements with ISO 55000

Worldwide recognition in comparison to U.K. PC 251 Structure

based PAS55

Structure of Asset Management is better

acknowledging what large companies do and
want (ownership; asset management; service
provider)

It puts emphasis on involvement of top ISO

9001
management and leadership quality

ISO ISO
Includes finance and accounting requirements 27000 ISO 14001
inform. 550000 environ
security ment

Risk based decision has a prominent place in the

ISO
overall asset management system 31000
risk

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Structured approach

Links to roles in the organization

Performance indicators
Asset Owner Business Assetperformance
• Business Management
Strategy • Asset performance
Policy
• Benchmarking

DecisionStrategic
support data
Asset Asset Strategy • Probability, impact, risk
Manager Asset
• Cost data Management
Plan
• Scenario’s, alternatives
Asset Lifecycle Management

High quality asset data

Service Operational areas
Asset
• Fixed assetManagement
data
• Condition / health
Provider • AssessmentPlans
knowledge

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Practical build up: from asset details to company criticality

Networks
Netwerk
configuration
Criticality
Facilities /
Pipelines
Station
Failure modes
configuration
Components

Asset Health
Parts
Maintenance/
Performance
Data

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PAS55/ISO55000 in practice

Benchmark of company procedures vs standards

Establishing Asset Register

Asset Condition Assessment

Threat Identification
Risk prioritization

Selection of Inspection methods

Maintenance planning/re-inspection

Constructing Asset Management plans

Risk evaluation cycle
Integrity Management Systems software support

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 Asset Integrity in Operation

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Risk based Asset Integrity in Operation

• Continuous improvement Identify • Threats

• Efficient processes • Failure Mechanisms

Improve Prioritize

• Quality Management • Risk Assessment

• Integration of Data • Prioritize risks

Plan &
Respond
Select

• Plan Inspections
• Appropriate Methods

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 Identify

Identify threats Improve Prioritize

All threats to pipeline/asset integrity shall be considered

Consider future changes in operating conditions that Respond
Plan &
Select
may introduce new degradation mechanisms
(e.g. pressure fluctuations, gas quality)
Guidance given by for example ASME B31.8S “Managing System
Integrity of Gas Pipelines”:
– Time-dependent (e.g. external corrosion, internal corrosion, stress corrosion
cracking)
– Stable (e.g. manufacturing, welding, equipment related defects)
– Time-independent (e.g. third party damage, incorrect operational procedure,
weather related and outside force)

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 Identify

Inspection planning and selection Improve Prioritize

Inspection methods can be divided mainly into inline

inspection (ILI) methods and aboveground surveys to be Respond
Plan &
Select
used in assessment methodologies.

About 40% of the gas pipelines worldwide cannot be

inspected inline.

Assessment methods:
– External Corrosion Direct Assessment (ECDA)
– Dry Gas Internal Corrosion Direct Assessment (DG-ICDA)
– New developments in ILI technology

Combining inspection results to increase accuracy of

defect growth prediction-> leading to effective
re-inspection
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 Identify

Prioritize; risks Improve Prioritize

Scope: Rank pipelines based on probability of Respond

Plan &
Select
failure and failure mode for external corrosion

Build a failure model to determine the failure frequency of a defect

based on the:
– leak vs. rupture (ASME B31G)
– Time to fail for a single defect
– Failure frequency of a defect (Monte Carlo simulation)
– Based on data from ILI-runs, the ECDA program, PIMS, international
databases and from expert judgment

Leading to a ranking tool to prioritize inspections based on risk:

– Incorporate consequence factors (e.g. population density, environmental
damage, security of supply etc.)
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 Identify

Respond; Inspect and repair

Improve Prioritize

External Plan &

Respond
corrosion Select

(MIC)

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 Identify

Process Improvement; (P)IMS Improve Prioritize

Scope: Development and Implementation of

Plan &
Respond
a (Pipeline) Integrity Management System Select

Our contributions: “Getting a company ready to use PIM software”

– Asset Management Policy development (Gap)
– Implementing company procedures
– Training company experts
– Functional specification customer requirements
– Integrity Management support (Risk, inspection)

Supported by a unique Software package

Data Quality & data management is key!

First get Asset Integrity procedures in place.

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Thank you for your attention!

www.dnvgl.com

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