Ageing

Ageing Plant and Life Extension

Extension
Steve Walker: Head of HSE Offshore Division

IOSH East Anglia Branch

21 September 2012

Ageing Plant and Life Extension

Presentation Outline

Introduction

Look at parallel ageing challenges

elsewhere in the major
j hazard sectors

Explore whether ageing and life extension

can be issues for non-major
non major hazard
sectors

Brief introduction to the offshore industry

Presentation of HSEs Key Programme 4
((KP4)) - Ageing
g g and life extension offshore

North Sea beginnings

g
g

Offshore industry
started 1960s

Little safety
regulation

1965, S
1965
Sea G
Gem
jack-up (selfg barge)
g )
elevating
collapse killed 13

Piper
p Alpha
p - 1988

Removall off safety

R
f t
valve, with poor
permit of work system
p
y

Explosion, leading to
a crude oil fire,
fuelled by continuing
production from
j
p
platforms
adjacent

167 died, 62
survived.

Piper
p Alpha
p Cullen Inquiry
q y

Identified
Id
tifi d causes off Pi
Piper
Alpha fire

Recommended transfer of
responsibility of offshore
safety to HSE 1991

Safety
y Case regime
g
set
up new legislation 1992

Review of legislation, and

replacement by goalgoal
setting requirements

UK Oil & Gas p

production facts

40 billion
billi b
boe recovered,
d with
ith approx 15
15-25
25 billion
billi
boe remaining

16th largest oil & gas producer in world

world.

Oil price $34 Dec 07, $147 July 08, $40 Dec 09,
$110+ now ((Sept
$
p 12))

>350 fields and approx 280 offshore installations

S
Supports
t 380,000
380 000 jjobs
b
Currently meets 70% of UK oil & gas demand, and
still liable to meet 50% in 2020

Injury rate (per 10

00,000 wo
orkers)

Offshore Fatal and Major Injury Rate

1998/1999 2011/12
350
300
250
200
150
50
100
50
0

19
98
/
19 9 9
99
/
20 0 0
00
/
20 0 1
01
/
20 0 2
02
/
20 0 3
03
/
20 0 4
04
/
20 0 5
05
/
20 0 6
06
/
20 0 7
07
/
20 0 8
08
/
20 0 9
09
/
20 1 0
10
20 /1 1
11
/1
2p

Injury ra
ate per 100
0,000 worrkers

Offshore over 3-Day Injury Rate

1998/1999 2011/2012

1200

1000

800

600

400

200

Offshore Hydrocarbon Releases

2002/2003 2011/2012

200
180

140
120
100
80
60
40
20

Minor

Major/Significant

20
11
/1
2p

20
10
/1
1

20
09
/1
0

20
08
/0
9

20
07
/0
8

20
06
/0
7

20
05
/0
6

20
04
/0
5

20
03
/0
4

0
20
02
/0
3

No.of Releases

160

Deepwater
p
Horizon
Gulf of Mexico 22 April 2010: 11 killed

Release of 4.9 million barrels of oil

(170 million gallons)

and potential effect in the UK/Europe?

Elgin
g gas
g leak 25 March 2012

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
p kill of Well G4
completed on 19 May
Over the 52 days,
estimate of 6172 tonnes
of hydrocarbons released

Background
g
to Key
y Programme
g
4.

Ageing and life extension in the offshore

industry

UKCS Installations (BERR)

250

146 installations
108 installations
>20 years old
>25 years old
ld

200

Small steel jacket

Large steel jacket
Jackup

150

C
Concrete
t GBS
100

Semi-sub
FPSO

50

TLP

Year of first oil/gas

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

0
1968

No o
of UKCS ins
stallations in
n productio
on

300

WHAT IS AGEING?

Evidence of degradation and damage

OR
Insufficient knowledge / information to know
the extent of possible deterioration
________________________________
Need to consider effects of:

accumulating or accelerating
damage
g
modifications
obsolescence
changes of process & / or well
conditions
advances in knowledge and
technology
organisational issues / loss of
corporate knowledge

The ageing/life extension conundrum.

Traditional models of dwindling reserves & increasing O&M costs

predict end of life

KP3: ASSET INTEGRITY

2004 - 2007

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 good
Sharing
d practice
ti
Use of verifiers
Use of KPIs by senior management
Maintenance backlog

KP3 report:
Published October 2007
Findings accepted by Industry

KP3 OUTCOMES

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

here and now
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

25+ years
Steady demand for oil and gas for foreseeable future
Over 50% of p
platforms have exceeded their design
g life
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
developments
CO2 sequestration, gas storage etc. opportunities

Safety management system requires consideration of:

Ageing
Implications of life extension

Key
y ageing/life
g g
extension issues

Ageing/deterioration
External/internal corrosion
Structural degradation/failure (e.g. fatigue)
Backlogs of maintenance
Changes in process conditions over time
C
Cumulative
l ti effect
ff t off modifications
difi ti
Obsolescence
Information capture/retention (IT + human!)
Advances in knowledge/technology
Improvements
p o e e ts in good practise
p act se
Anticipation of changes

What is Ageing?
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.

Once the
O
h symptoms off ageing
i are understood,
d
d and
dd
detected
d ffrom
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.

There are also managerial issues that should also be considered. The
company culture and defined roles and responsibilities are important in
g g equipment.
q p
relation to managing

Ageing management is also affected by staff demographics, skills,

training and competencies.

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 life
extension are controlled effectively:

Doing work now, for improved integrity management/safety in the future

Integration into corporate safety culture

e.g. corporate policy, safety cases, thorough reviews

Development of long-term asset integrity plans

Seeking industry recognition of the importance of Ageing and LE

Key element of the asset integrity management (AIM) system
Senior management
g
involvement

KP4

Launch in July 2010

15 Duty Holder inspections to date (September 2012)

Significant stakeholder work to raise overall awareness and stimulate

industry-wide
y
work,, especially
p
yg
guidance and g
good p
practise

Inspection of Asset Integrity Management (AIM) systems - not installation

specific
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 out

OSD AGEING WEBPAGE

Primary source of information on ageing

offshore installations

www.hse.gov.uk/offshore/ageing.htm
g
g g
To provide information on:

Press releases
Inspection findings
Operational issues
Standards,, technical / guidance
g
documents
R&D
Industry
y meetings
g
Relevant websites (e.g. PSA, EI)

AGEING AND LIFE EXTENSION NETWORK

Managed by Oil and Gas UK under STEP CHANGE

90 members, operators, ICPs, designers, contractors, plus HSE

Purpose
share good practice
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 p
progress
g
so far

KP4 Interim Report due October 2012

Offshore industry has responded well to KP4 ageing/life
extension now firmly on the map
Good
G d practices
ti
b i captured
being
t db
by O&GUK
Good evidence of Duty Holder senior management have
responded
p
p
positively
y
Recognised as a business issue
ALE policies/procedures developed
KP4 task groups created
Some allocating personnel with specific ALE
responsibilities.
KPI dashboards
dashboards for ALE

KP4 g
good practices
p

Greater
G
t emphasis
h i on quality
lit and
d monitoring
it i off
Operational Risk Assessments (ORAs) for
g
p
plant
degraded

Auditing of defined life repairs

Extensive fabric maintenance most visible!!

Undertaking ALE gap analysis

Obsolescence Reviews
Life
Life of field
field structural integrity condition
assessments

IMPROVEMENTS OFFSHORE

BUT..

Existing work loads are very high

high, meaning
taking time out to consider ALE issues is difficult.
Fabric maintenance still a challenge, with
widespread
id
d concerns over CUI
CUI.
Need for better appreciation of Ageing and
planning
p
g for Life Extension, and day-to-day
y
y
management - further integration into
mainstream asset management
Auditing
ud t g and
a d verification
e cat o needs
eeds to be improved
p o ed
for ALE
Work will be needed to implement industry good
ALE practices
practices.
Offshore environment will remain a challenge.

However, is ageing/life extension a

h lth and
health
d safety
f t iissue elsewhere?
l
h ?

Onshore major hazard industry

External
E
t
l research
h 2008/09 RR823 Pl
Plantt
Ageing Study

Review of European incident databases 1980 2006, showed ageing caused:

28% of loss of containment incidents with MA
potential
50% of events arising from technical plant
failure incidents led to
11 deaths
183 serious injuries
170M economic losses

UK Competent
p
Authority
y (HSE/EA)
(
)
Strategic Priority on Ageing Plant

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
compliant
Legally enforceable improvements are required
Performance at 26% of sites is assessed as acceptable
Minimum 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 expectations

Ageing plant management remains a significant challenge for

process industries
p

But what about non-major

j hazard
sites?

Current economic environment means everyone

has to squeeze their assets, with inevitable life
extension:
lets
let s put off that car park maintenance until
the lease runs out
that boiler will run for another couple of
winters wont
winters,
won t it?
it?
do you really mean that lifting strop is too
old surely we can still use it
we
we cant
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!
line!

Ageing
A
i now, and
d iin th
the ffuture,
t
will
ill b
be a kkey iissue
in all sites

Consider the range of ageing/life extension

issues in your environment
Obsolescence kit, software and
workforce
Damage and deterioration
Equipment approaching end of life
Cumulative effects of modifications
Improvements in technology
Standards/legislative/societal
Standards/legislati e/societal changes

But not just a Safety thing

Ageing and life extension

e tension iss
issues
es are intricatel
intricately tied up
p
with commercial and economic issues

Sometimes ageing safety risks is too remote, too far in

future or difficult to quantify
future,

Dont rely solely on complex technical arguments,

instead introduce business risk concepts - present
ageing risks to senior leaders as commercial
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 a
format that can be readily understood by senior
managers and include the potential consequences

Seek independence in engineering decisions associated

with ageing/life extension

Ageing and Life Extension Leadership

Know your assets

Be an Intelligent Customer
Ensure that the leadership understands and
recognises the significance of ageing challenges send senior managers onto Process Safety
Leadership
p training?
g
Recognise existing problems and have plans to
correct
Develop long term strategies for each site
site, with a
clear vision of the future
Enables engineering teams to propose
appropriate investment options

Ageing
g g and life extension y
you can
choose which Richards

Do a
Cliff.
Cliff

.or do a Keith!

Questions?