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Ageing Plant and Life ExtensionAgeing Plant and Life Extension
Steve Walker: Head of HSE Offshore Division
IOSH East Anglia Branch
21 September 201221 September 2012
Ageing Plant and Life Extension Presentation OutlinePresentation Outline
Introduction Brief introduction to the offshore industry Presentation of HSEs Key Programme 4
(KP4) - Ageing and life extension offshore( ) g g
Look at parallel ageing challenges elsewhere in the major hazard sectorsj
Explore whether ageing and life extension can be issues for non-major hazardcan be issues for non major hazard sectors
North Sea beginningsg g
Offshore industry started 1960s
Little safety regulation
1965 S G 1965, Sea Gem jack-up (self-elevating barge) g g )collapse killed 13
Piper Alpha - 1988p p
R l f f t Removal of safety valve, with poor permit of work systemp y
Explosion, leading to a crude oil fire, fuelled by continuing production from adjacent platformsj p
167 died, 62 survived.
Piper Alpha Cullen Inquiryp p q y
Id tifi d f Pi Identified causes of Piper Alpha fire
Recommended transfer of responsibility of offshore safety to HSE 1991
Safety Case regime set y gup new legislation 1992
Review of legislation, and replacement by goal-replacement by goalsetting requirements
UK Oil & Gas production facts p
40 billi b d ith 15 25 billi 40 billion boe recovered, with approx 15-25 billion boe remaining
16th largest oil & gas producer in world 16th largest oil & gas producer in world. >350 fields and approx 280 offshore installations S t 380 000 j b Supports 380,000 jobs Currently meets 70% of UK oil & gas demand, and
still liable to meet 50% in 2020still liable to meet 50% in 2020
Oil price $34 Dec 07, $147 July 08, $40 Dec 09, $110+ now (Sept 12)$ ( p )
Offshore Fatal and Major Injury Rate 1998/1999 2011/121998/1999 2011/12
250
300350
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150200250
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0
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0
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10050
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Offshore over 3-Day Injury Rate 1998/1999 2011/20121998/1999 2011/2012
10001200
r
k
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s
600
8001000
0
,
0
0
0
w
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0
200400
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p
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1
0
0
0
1998
/9919
99/00
2000
/0120
01/02
2002
/0320
03/04
2004
/0520
05/06
2006
/0720
07/08
2008
/0920
09/10
2010
/1120
11/12
p
I
n
j
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r
a
1 1 2 2 2 2 2 2 2 2 2 2 2 20
Offshore Hydrocarbon Releases2002/2003 2011/20122002/2003 2011/2012
180
200
120
140
160
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a
s
e
s
60
80
100
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40
03 04 05 06 07 08 09 10 11 2p
2002
/03
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
2008
/09
2009
/10
2010
/1120
11/12
p
Minor Major/Significant
Deepwater HorizonpGulf of Mexico 22 April 2010: 11 killed
Release of 4.9 million barrels of oil(170 million gallons)(170 million gallons)
and potential effect in the UK/Europe?
Elgin gas leak 25 March 2012g g
On Sunday 25th March On Sunday 25th March 2012 a sudden gas release occurred on the Elgin wellhead platform
238 workers on the Elgin complex and Rowan Viking safely evacuated over next 13 hours
Initial release around 2kg/sec (170 tonnes/day)
Top kill of Well G4 pcompleted on 19 May
Over the 52 days, estimate of 6172 tonnes of hydrocarbons releasedof hydrocarbons released
Background to Key Programme 4.g y g
Ageing and life extension in the offshoreAgeing and life extension in the offshore industry
UKCS Installations (BERR)
300
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200
250
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Small steel jacket108 installations >25 ld
146 installations >20 years old
150
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Large steel jacket
Jackup
C t GBS
>25 years old
100
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s Concrete GBS
Semi-sub
FPSO
0
50
N
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TLP
1
9
6
8
1
9
7
0
1
9
7
2
1
9
7
4
1
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6
1
9
7
8
1
9
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1
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6
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9
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9
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0
2
2
0
0
4
2
0
0
6
2
0
0
8
Year of first oil/gas
WHAT IS AGEING?
Evidence of degradation and damageEvidence of degradation and damage
ORInsufficient knowledge / information to know the extent of possible deterioration
________________________________
Need to consider effects of:
accumulating or accelerating damageg
modifications obsolescence changes of process & / or well
conditionsconditions advances in knowledge and
technology organisational issues / loss of
corporate knowledgecorporate knowledge
The ageing/life extension conundrum.
Traditional models of dwindling reserves & increasing O&M costs predict end of life
KP3: ASSET INTEGRITY2004 - 20072004 - 2007
100 Installations inspected (40% of the total) 100 Installations inspected (40% of the total) Significant issues on the maintenance of safety critical
systems: Use of maintenance system Use of ORAs Role of technical authority
Sh i d ti Sharing good practice Use of verifiers Use of KPIs by senior management
Maintenance backlog Maintenance backlog
KP3 report: Published October 2007 Findings accepted by Industry
KP3 OUTCOMES
20th Anniversary of Piper Alpha 20th Anniversary of Piper Alpha 6 July 2008 Secretary of State commissioned KP3 review
Review performed by HSE Report published in July 2009 Good progress, considerable resource and effort Improvements implemented but considerable work
still required
KP3 was about managing here and now conditionsKP3 was about managing here and now conditions. but what about managing future conditions for further ageing and potential life extension?
Hence KP4!
CONTEXT FOR KP4
Future reserves: up to 25 billion barrels of oil 25+ yearsFuture reserves: up to 25 billion barrels of oil 25 years Steady demand for oil and gas for foreseeable future Over 50% of platforms have exceeded their design lifep g Findings of KP3: Asset Integrity (2004-2007) plus plateau of HCRs Technological developments continue
enhanced oil recovery etc.
existing offshore infrastructure essential for some marginal field developmentsdevelopments
CO2 sequestration, gas storage etc. opportunities
Safety management system requires consideration of:Safety management system requires consideration of: Ageing Implications of life extension
Key ageing/life extension issuesy g g
Ageing/deterioration Ageing/deterioration External/internal corrosion Structural degradation/failure (e.g. fatigue) Backlogs of maintenance
Changes in process conditions over time C l ti ff t f difi ti Cumulative effect of modifications Obsolescence Information capture/retention (IT + human!)Information capture/retention (IT + human!) Advances in knowledge/technology Improvements in good practisep o e e ts good p act se Anticipation of changes
What is Ageing? RR509 (2006)RR509 (2006)
The management of equipment begins with an awareness that ageing is not about how old the equipment is, but what is known about its condition, and the factors that influence the onset, evolution and thence mitigation of its degradation. O h f i d d d d d f Once the symptoms of ageing are understood, and detected from inspection, a decision can be made how to proceed. The options can include putting together a case to justify continued service, re-rating, repair, or scrapping the equipment.repair, or scrapping the equipment.
There are also managerial issues that should also be considered. The company culture and defined roles and responsibilities are important in relation to managing equipment. g g q p
Ageing management is also affected by staff demographics, skills, training and competencies.
Keeping documentary information and records throughout equipment life Keeping documentary information and records throughout equipment life is important.
KP4 2010 - 2013
Key Programme 4 (KP4) on Offshore Ageing and Life Extension
AIM:To ensure that the risks to asset integrity associated with ageing and lifeTo ensure that the risks to asset integrity associated with ageing and life extension are controlled effectively:
Doing work now, for improved integrity management/safety in the future Seeking industry recognition of the importance of Ageing and LE
Key element of the asset integrity management (AIM) system Senior management involvementg
Integration into corporate safety culture e.g. corporate policy, safety cases, thorough reviews
Development of long-term asset integrity plans
KP4
Launch in July 2010 Significant stakeholder work to raise overall awareness and stimulate
industry-wide work, especially guidance and good practisey , p y g g p
15 Duty Holder inspections to date (September 2012) Inspection of Asset Integrity Management (AIM) systems - not installation
specificspecific
Primarily onshore with offshore sampling - broad range of topic areas
Focus on Safety Case Thorough Review
Used KP4 topic based templates (including traffic lights) (POPMAR model)
Process = kick off, onshore, offshore, close outProcess kick off, onshore, offshore, close out
OSD AGEING WEBPAGE
Primary source of information on ageing offshore installations
www.hse.gov.uk/offshore/ageing.htmg g g To provide information on:
Press releases Inspection findings Operational issues Standards, technical / guidance , g
documents R&D Industry meetingsy g Relevant websites (e.g. PSA, EI)
AGEING AND LIFE EXTENSION NETWORK
Managed by Oil and Gas UK under STEP CHANGE Managed by Oil and Gas UK under STEP CHANGE 90 members, operators, ICPs, designers, contractors, plus HSE Purpose Purpose
share good practice
identify key elements in ageing processes identify key elements in ageing processes
develop guidance
O&G UK work group developed Guidance on the Management of Ageing and Life Extension for UKCS Oil and Gas Installations in April 2012 see http://www.oilandgasuk.co.uk
Overview of KP4 progress so farp g
KP4 Interim Report due October 2012KP4 Interim Report due October 2012 Offshore industry has responded well to KP4 ageing/life
extension now firmly on the mapG d ti b i t d b O&GUK Good practices being captured by O&GUK
Good evidence of Duty Holder senior management have responded positivelyp p y
Recognised as a business issue ALE policies/procedures developed KP4 task groups created KP4 task groups created Some allocating personnel with specific ALE
responsibilities.KPI dashboards for ALE KPI dashboards for ALE
KP4 good practicesg p
G t h i lit d it i f Greater emphasis on quality and monitoring of Operational Risk Assessments (ORAs) for degraded plantg p
Auditing of defined life repairs Undertaking ALE gap analysisUndertaking ALE gap analysis Obsolescence Reviews Life of field structural integrity conditionLife of field structural integrity condition
assessments
Extensive fabric maintenance most visible!!
IMPROVEMENTS OFFSHORE
BUT..
Existing work loads are very high meaning Existing work loads are very high, meaning taking time out to consider ALE issues is difficult.
Fabric maintenance still a challenge, with id d CUIwidespread concerns over CUI.
Need for better appreciation of Ageing and planning for Life Extension, and day-to-day p g y ymanagement - further integration into mainstream asset management
Auditing and verification needs to be improved ud t g a d e cat o eeds to be p o edfor ALE
Work will be needed to implement industry good ALE practicesALE practices.
Offshore environment will remain a challenge.
However, is ageing/life extension a h lth d f t i l h ?health and safety issue elsewhere?
Onshore major hazard industryOnshore major hazard industry
E t l h 2008/09 RR823 Pl t External research 2008/09 RR823 Plant Ageing Study
Review of European incident databases 1980 -Review of European incident databases 1980 2006, showed ageing caused:
28% of loss of containment incidents with MA potentialpotential
50% of events arising from technical plant failure incidents led to
11 deaths 183 serious injuries
170M economic losses 170M economic losses
UK Competent Authority (HSE/EA) p y ( )Strategic Priority on Ageing Plant
2011 : 74% of sites failing to meet expectations 2011 : 74% of sites failing to meet expectations Across the 5 mechanical topics
Performance at 25% of sites is assessed as unacceptable Significant improvement needed urgently
Performance at 49% of sites is assessed as only partially Performance at 49% of sites is assessed as only partially compliant
Legally enforceable improvements are required Performance at 26% of sites is assessed as acceptable
Minimum legal requirements metMinimum legal requirements met Findings from the CAs intervention programme on ageing plant
do not provide much comfort!
2012 : Slight improvement - 70% of sites still failing expectations2012 : Slight improvement 70% of sites still failing expectations
Ageing plant management remains a significant challenge for process industriesp
But what about non-major hazard jsites?
Current economic environment means everyone Current economic environment means everyone has to squeeze their assets, with inevitable life extension:
lets put off that car park maintenance until let s put off that car park maintenance until the lease runs out
that boiler will run for another couple of winters wont it?winters, won t it?
do you really mean that lifting strop is too old surely we can still use it
we cant afford to replace that database we can t afford to replace that database cant we keep on running the old system?
now you tell me the ventilation plant cant cope with the new production line!cope with the new production line!
A i d i th f t ill b k i Ageing now, and in the future, will be a key issue in all sites
Consider the range of ageing/life extensionConsider the range of ageing/life extension issues in your environment
Obsolescence kit, software and workforceworkforce
Damage and deterioration Equipment approaching end of life Cumulative effects of modifications Improvements in technology
Standards/legislati e/societal changes Standards/legislative/societal changes
But not just a Safety thingBut not just a Safety thing
Ageing and life e tension iss es are intricatel tied p Ageing and life extension issues are intricately tied up with commercial and economic issues
Sometimes ageing safety risks is too remote, too far in future or difficult to quantifyfuture, or difficult to quantify
Dont rely solely on complex technical arguments, instead introduce business risk concepts - present ageing risks to senior leaders as commercialageing risks to senior leaders as commercial, reputational and financial risks (as well as safety!).
Provide real and focused evidence and data that highlights where systems have or will deteriorated in ahighlights where systems have or will deteriorated in a format that can be readily understood by senior managers and include the potential consequences
Seek independence in engineering decisions associatedSeek independence in engineering decisions associated with ageing/life extension
Ageing and Life Extension LeadershipAgeing and Life Extension Leadership
Know your assets Know your assets Be an Intelligent Customer Ensure that the leadership understands andEnsure that the leadership understands and
recognises the significance of ageing challenges -send senior managers onto Process Safety Leadership training? p g
Recognise existing problems and have plans to correct
Develop long term strategies for each site with a Develop long term strategies for each site, with a clear vision of the future Enables engineering teams to propose
appropriate investment optionsappropriate investment options
Ageing and life extension you can g g ychoose which Richards
Do a CliffCliff.
.or do a Keith!
Questions?