IPLOCA REGIONAL MEETING –EAST AND FAR EAST … · Analysisand full scale testing indicate reduced...

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Shell Exploration and Production Co. IPLOCA REGIONAL MEETING – EAST AND FAR EAST REGION: KL, 2 ND JUNE 2015 Deepwater Pipeline Integrity and Repairs – Experiences from the Gulf of Mexico Ebere Chimezie Delivery Manager, AP Subsea and Pipelines, Malaysia 1 June 2015 Use this area for cover image (height 6.5cm, width 8cm)

Transcript of IPLOCA REGIONAL MEETING –EAST AND FAR EAST … · Analysisand full scale testing indicate reduced...

Shell Exploration and Production Co.

IPLOCA REGIONAL MEETING – EAST AND FAR EAST REGION:KL, 2ND JUNE 2015

Deepwater Pipeline Integrity and

Repairs – Experiences from the Gulf

of Mexico

Ebere Chimezie

Delivery Manager, AP Subsea and Pipelines, Malaysia

1June 2015

Use this area for cover image(height 6.5cm, width 8cm)

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DEFINITIONS AND CAUTIONARY NOTE

Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2012 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, March 14, 2013. Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.

Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S. investors are urged to consider closely the disclosure in Shell's Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

Shell Exploration and Production Co.

SHELL GOM GAS PIPELINE TRANSPORTATION SYSTEM

DESTIN

Gulf of Mexico

AUGER

EnchiladaBullwinkle

URSAMARS

NAUTILUS

Texas Louisiana

MississippiAlabama

4000’1500’

STINGRAY

BRUTUS

Hickory

5000’

CLEOPATRA

Gunnsion

Thunder Horse

NaKika

Magnolia

WC 509

HI 330

Pipelines retained by Shell Pipelines sold to Enbridge

Brutus

Mars Ursa

Ram Powell

PN 975

Marlin

OKEANOS

MANTA RAY

MISS. CANYON

GARDEN BANKS

TRITON

MAGNOLIA

Auger 1 & 2

VR 397

LouisianaTexas

Holstein

Shell Exploration and Production Co.

HURRICANES PRESENT PIPELINE INTEGRITY CHALLENGES

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DAMAGED 20” PIPELINE

Ursa 20” Gas Pipeline Repair

Copyright of Royal Dutch Shell plc CONFIDENTIAL

Mars Gas Pipeline Repair

� Mars Platform was already damaged

� Extended shut-down was an opportunity to leverage Shell’s

Deepwater Pipeline Repair System

� The DPRS had been built and maintained for such an emergency

need.

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12” 14” 12”-16”

Running Tool18” 20” 24”16”

18”-24”

Running Tool

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SHELL DEEPWATER REPAIR SYSTEM REPLACEMENT SCOPE OF SYPPLY

ITEM QTY BASE SIZE & # CLASS

12" COLLET CONNECTOR NON-INTEGRAL

1 2 RUNNING TOOL NON-INTERGRAL 12"-16"

2 2 COLLET CONNECTOR NON-INTEGRAL 12" -6000 PSI WP

3 4 CONNECTION STRUCTURE\FMJ 12" -6000 PSI WP

4 2 MALE END CLOSURE 12" -6000 PSI WP

5 1 SEAL REMOVAL TOOL 12" -6000 PSI WP

6 1 SEAL INSTALLATION TOOL 12" -6000 PSI WP

7 2 DIVERLESS GRIP & SEAL CONNECTORS 12"-6000 PSI WP

14" COLLET CONNECTOR NON-INTEGRAL

8 2 COLLET CONNECTOR NON-INTEGRAL 14"-900# ANSI

9 4 CONNECTION STRUCTURE\FMJ 14"-900# ANSI

10 2 MALE END CLOSURE 14"-900# ANSI

11 1 SEAL REMOVAL TOOL 14"-900# ANSI

12 1 SEAL INSTALLATION TOOL 14"-900# ANSI

13 2 DIVERLESS GRIP & SEAL CONNECTORS 14"-900# ANSI

16" COLLET CONNECTOR NON-INTEGRAL

14 2 COLLET CONNECTOR NON-INTEGRAL 16"-900 ANSI

15 4 CONNECTION STRUCTURE\FMJ 16"-900 ANSI

16 2 MALE END CLOSURE 16"-900 ANSI

17 1 SEAL REMOVAL TOOL 16"-900 ANSI

18 1 SEAL INSTALLATION TOOL 16"-900 ANSI

19 2 DIVERLESS GRIP & SEAL CONNECTORS 16"-900# ANSI

18" COLLET CONNECTOR NON-INTEGRAL

19 2 DIVERLESS GRIP & SEAL CONNECTORS 16"-900# ANSI

18" COLLET CONNECTOR NON-INTEGRAL

20 2 RUNNING TOOL NON-INTERGRAL 18"-24"

21 2 COLLET CONNECTOR NON-INTEGRAL 18" -2500 PSI WP

22 4 CONNECTION STRUCTURE\FMJ 18" -2500 PSI WP

23 2 MALE END CLOSURE 18" -2500 PSI WP

24 1 SEAL REMOVAL TOOL 18" -2500 PSI WP

25 1 SEAL INSTALLATION TOOL 18" -2500 PSI WP

26 2 DIVERLESS GRIP & SEAL CONNECTORS 18"-2500 WP

20" COLLET CONNECTOR NON-INTEGRAL

27 2 COLLET CONNECTOR NON-INTEGRAL 20"-900# ANSI

28 4 CONNECTION STRUCTURE\FMJ 20"-900# ANSI

29 2 MALE END CLOSURE 20"-900# ANSI

30 1 SEAL REMOVAL TOOL 20"-900# ANSI

31 1 SEAL INSTALLATION TOOL 20"-900# ANSI

32 2 DIVERLESS GRIP & SEAL CONNECTORS 20"-900# ANSI

24" COLLET CONNECTOR NON-INTEGRAL

33 2 COLLET CONNECTOR NON-INTEGRAL 24"-900# ANSI

34 4 CONNECTION STRUCTURE\FMJ 24"-900# ANSI

35 2 MALE END CLOSURE 24"-900# ANSI

36 1 SEAL REMOVAL TOOL 24"-900# ANSI

37 1 SEAL INSTALLATION TOOL 24"-900# ANSI

38 2 DIVERLESS GRIP & SEAL CONNECTORS 24"-2500 PSI WP

ITEM QTY BASE SIZE & # CLASS

12”-16”

Gantry &

Mudmat

18”-24

Gantry &

Mudmat

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Copyright of Royal Dutch Shell plc CONFIDENTIAL

Ursa Gas Pipeline Damage – A different Challenge

� Ursa Platform had minimal damage and was ready for re-

start

� No opportunity to shut-down pipeline for repairs

� A new and radical repair method (without production shut-in)

Shell Exploration and Production Co.

� Pipeline damaged by ship anchor drag

� Water dept at damage – 2,975 ft (907m)

� Damage found during ROV inspection

� Pressure integrity of pipeline not compromised

� Pipeline bent approximately 6 degrees

� Analysis and full scale testing indicate reduced fatigue life

due to damage

� Pipe is 20” x .750” Wall, DSAW, API 5LX-65

Ursa Pipeline Damage Report

Shell Exploration and Production Co.

� A unique 50,000 Lbs (25 t), 10 ft (3m) long Repair Clamp

� System for supporting clamp and pipeline� End Suction pile system with structural “Table” for supporting Pipeline

� Centre Suction pile with structural “Center Table” and “Clamp Serving Table”

� DSAW seam removal tool

� FBE removal tool

� Metrology tool

� Complex manufacturing and installation of repair system

Ursa Pipeline Repair System

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INSTALL SUCTION PILES

Ursa 20-inch Gas Pipeline Repair

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TABLES INSTALLED ON SUCTION PILES

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

END TABLE

Ursa 20-inch Gas Pipeline Repair

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Ursa 20-inch Gas Pipeline Repair

SIT OF END TABLE WITH RESTRAINING CLAMP

Shell Exploration and Production Co.

CENTER TABLE SYSTEM

Ursa 20-inch Gas Pipeline Repair

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SIT OF CENTER TABLE SYSTEM

Ursa 20-inch Gas Pipeline Repair

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DREDGE AROUND SUCTION PILES AND LOWER PILES

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

STATIC LIFT FRAMES DEPLOYED AND PIPELINE LIFTED

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

END TABLES ROTATED UNDER PIPELINE AND CLAMPS ENGAGED

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

LIFT FRAMES REMOVED AND PIPELINE RAISED WITH END PILES

Ursa 20-inch Gas Pipeline Repair

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CENTER TABLE ROTATED UNDER PIPELINE

Ursa 20-inch Gas Pipeline Repair

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PILE HEIGHTS AND CENTER TABLE CLAMPS ADJUSTED TO LAND PIPELINE IN CLAMPS

Ursa 20-inch Gas Pipeline Repair

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REMOVE DSAW SEAM AND FBE; TAKE METROLOGY

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

DSAW SEAM REMOVAL

Ursa 20-inch Gas Pipeline Repair

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FBE REMOVAL

Ursa 20-inch Gas Pipeline Repair

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METROLOGY TOOL

Ursa 20-inch Gas Pipeline Repair

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MEASUREMENT JIG

Ursa 20-inch Gas Pipeline Repair

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LAND REPAIR CLAMP ON CENTER TABLE

Ursa 20-inch Gas Pipeline Repair

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INSTALL REPAIR CLAMP ON PIPELINE

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

SCHEDULE – HIGHLIGHTS OF ACTIVITIES

08/28/2005 - Hurricane Katrina

09/18/2005 - Dent Found In Ursa Gas Pipeline

11/04/2005 - MOC Approved For Pipeline Restart

11/17/2005 - Platform/Pipeline Restart

04/2006 - Design Basis Developed For Repair System

09/2006 - Suction Piles Installed

12/2006 - Table Tops Installed On Suction Piles

02/2007 - Dredging/Seam & FBE Removal/Metrology

03/2007 - FBE Removal & Metrology

06/2007 - Metrology Jig

Ursa 20-inch Gas Pipeline Repair

Shell Exploration and Production Co.

SCHEDULE – HIGHLIGHT OF ACTIVITIES

04/2008 – Serving Table For Repair Clamp Completed

07/2009 – Repair Clamp Fabrication Completed

09/2009 – Repair Clamp & Serving Table SIT

10/2009 – Install Repair Clamp

Ursa 20-inch Gas Pipeline Repair

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Ursa Gas Pipeline Repair

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Ursa Gas Pipeline Repair

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Ursa Gas Pipeline Repair

Systems Integration Testing of main repair clamp

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Ursa Gas Pipeline Repair

Clamp and Serving Table being deployed offshore

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Ursa Gas Pipeline Repair

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Some Take-aways for Malaysia Industry (1/2)

� With expected growth in deep-water oil/gas pipeline assets, AP Regional

players need to consider the future requirements for emergency repairs of

critical pipeline systems

� A system similar to Shell’s GOM Deep-water Pipeline Repair System

(DPRS) would be a critical asset to Malaysia (and the Region’s) Pipeline

Integrity management system

� Malaysia has experience with joint-industry solutions through the

Petronas-led Pan-Malaysia execution model

� Similar joint-industry effort will be key to addressing the critical need for

a Deep-water Pipeline Repair System for Malaysia and the Region

Shell Exploration and Production Co.

Some Take-aways for Malaysia Industry (2/2)

� Some DW Pipeline component & product manufacturers have setup offices in

the region; an important key step by the contracting community

� Malaysia currently progressing a joint-Industry DPRS; a step in the right

direction

� Preservation maintenance is a big issue for DPRS’s. Regional synergies within

Asia (Philippines, Indonesia, Australia, etc) will lessen the burden of

preservation costs.

� A Regional DPRS system will present the challenge of usage priority. However,

the resultant value more than justifies the inherent challenge and can be

managed.