ABB Consulting

Ageing & Life Extension

© ABB Group
July 10, 2014 | Slide 1
Agenda

 What are the main drivers and effects of ageing?

 What is ageing and what factors are usually considered?
 What other factors need to be considered?
 What are some typical findings from asset life extension
studies?

© ABB Group
July 10, 2014 | Slide 2
Main drivers

 Possible reuse for CO2/gas storage  Marginal fields financially viable

 Advances in technology  Increasing use of subsea tiebacks
 Delayed decommissioning  Change in use of platforms to hubs

Source – Oil & Gas UK, 2010 Economic Report

© ABB Group
July 10, 2014 | Slide 3
Effects
Age profile of offshore installations

Facility Operator 1960s 1970s 1980s 1990s 2000s 2010s TOTAL

SHELL 14 4 3 15 10 46
PERENCO 19 9 4 12 44
CONOCOPHILLIPS 12 11 9 9 41
BP 5 7 21 3 36
TALISMAN 5 5 3 13
CENTRICA 5 4 3 12
TULLOW 6 2 1 9
CENTRICA - HRL 7 1 8
BHP 7 7
CNR 3 2 2 7
APACHE 6 6
NEXEN 2 4 6
TOTAL 2 1 3 6
CHEVRON 5 5
ITHACA 4 1 5
BG 4 4
TAQA 1 3 4
ATP 3 3
ENQUEST 2 1 3
EXXONMOBIL 3 3
MAERSK 2 1 3 Source - DECC
MARATHON
BOL
2 1
1 1
3
2  Manned – 147
RWE DEA 1 1 2
EON RUHRGAS
ERT 1
1 1
1
 Unmanned – 136
FAIRFIELD 1 1
GAZ DE FRANCE 1 1
PETROCANADA 1 1
TOTAL 44 46 56 94 42 1 283
16% 16% 20% 33% 15% 0%

© ABB Group
July 10, 2014 | Slide 4
Effects
Hydrocarbon releases

Source – HSE Research Report 672 – Offshore Hydrocarbon Releases 2001-2007

© ABB Group
July 10, 2014 | Slide 5
Effects
Health & safety

 173 loss of containments in RIDDOR attributable to ageing

(1996 – 2008)
 Represents 5.5% of all loss of containment events
 Limited information on underlying cause in RIDDOR means
number could be much higher

 Across Europe 96 incidents reported in the MARS

database relating to loss of containment due to ageing
(1980 – 2006)
 Represents 28% of all reported loss of containment events
 Equates to an overall loss of 11 lives, 183 injuries and >
Euro 170m of loss

Source – HSE Research Report 823 – Plant Ageing Study – Phase 1 Report

© ABB Group
July 10, 2014 | Slide 6
Effects
Financial - Reliability
Reliability at Risk

Extended Emergency Shutdowns to General Unreliability

Replace Major failed Equipment

© ABB Group
July 10, 2014 | Slide 7
What is ageing?

“Ageing is not about how old the equipment is. It’s about what is
known about its condition, and how that’s changing over time”
HSE Research Report RR509 - “The Plant Ageing Guide”

Starting at this stage

Managing
is more difficult!
equipment life
Number of
Failures or starts here!
Accumulated
Damage

Initial Mature Ageing End of

Stage Life Stage
Time
Operation Stage

© ABB Group
July 10, 2014 | Slide 8
What is ageing?
Causes of equipment failure
40

35
ABB Failure Investigations
30

25

20

15

10

0
Weld

Creep

Overheating
Fatigue

Brittle
Failure

Erosion

Failure

Wear
fracture

Pressure
SCC

Mechanical
Corrosion

Over
It’s only 10-15%, but
they’ll still shut down
the installation!

© ABB Group
July 10, 2014 | Slide 9
What is ageing?
Corrosion

Source - Photographs from HSE Corrosion Project Presentation by Andrew Duncan, Specialist Inspector

© ABB Group
July 10, 2014 | Slide 10
What is ageing?
Obsolescence

Mainly affects:
 Electrical equipment
 Instrumentation
 Control systems and software
 Telecommunications
 Rotating equipment

 In practice, some equipment can continue to be maintained in the

Obsolete phase – although plant downtime may be increased

© ABB Group
July 10, 2014 | Slide 11
What is ageing?
Influences & solutions for obsolescence

 Onset of obsolescence is influenced by:

 Technological developments - e.g. solid-state electronic devices
replacing electro-mechanical protection relays
 Commercial factors - e.g. supplier closing down, taken over, etc.
 Loss of service engineers’ expertise due to retirements & new
technologies

 Obsolescence can be addressed by:

 Replace all obsolete items with current products
 Partial replacement, with the removed items held as spares
 Adopting a ‘run-to-failure’ policy with current products as spares
 Special manufacture of key spare parts

© ABB Group
July 10, 2014 | Slide 12
What other factors need to be considered?
Changing production profiles & fluid composition

 Higher levels of CO2 / H2S

 Multiphase flow when equipment is
OIL designed for single phase flow & vice
versa
 Compressor and pump limitations
 Increased solid content
 Increased water injection, gas lift, etc.
 Increased power demands
GAS
 Less fuel gas for power generation

© ABB Group
July 10, 2014 | Slide 13
What other factors need to be considered?
Changing regulation

 HSE KP3 & 4 Programme - asset integrity is

a priority for the HSE Offshore Division
 Safety Case - Technical justification for
extended operation and redundant /
additional equipment
 ATEX & PFEER mean like for like
replacement of old equipment may no longer
be possible
 Replacement of R22 in HVAC refrigeration
systems
 CO and NOX emission requirements for gas
turbine installations
 Renewable Energy Directive - increasing use
of bio-fuels

© ABB Group
July 10, 2014 | Slide 14
What other factors need to be considered?
Age & competency of workforce

 Loss of highly experienced personnel

 Succession planning & knowledge retention

 Different competencies & working methods

 Changing training & development requirements

 Application of new technologies

 Less people and multi-skilled

© ABB Group
July 10, 2014 | Slide 15
What other factors need to be considered?
Dependence upon 3rd parties

 Increasing trend
 Leaner organisations
 On-going operation increasingly dependent upon sharing of
information with and between 3rd parties
 Competency assessment, inductions & debriefing are
critical
 Agreement on ownership of knowledge, records &
maintenance histories even beyond contract duration

© ABB Group
July 10, 2014 | Slide 16
What other factors need to be considered?
Design and operational data

 Retaining corporate knowledge

for the extended life cycle
 30 year old information and
data needs to be kept for a
further 30 + years
 Moving to software based
document management
systems
 Loss of data when systems are
changed or when assets
change ownership
 No longer able to read
electronic data in old formats
 Old versions of documents and
drawings

© ABB Group
July 10, 2014 | Slide 17
What other factors need to be considered?
Management systems

 Policy and leadership

Policy & Leadership
 Adequate resources
 Defined roles and
Organising responsibilities
 Strategy considerations

Auditing
Planning &  Planning and budgeting
Implementation
 Interlinked and reviewed
KPIs
Measuring
Performance

Reviewing
Performance
Source - HSG65 - Successful Health & Safety Management

© ABB Group
July 10, 2014 | Slide 18
ABB Asset Life Extension Assessment
Process

Pressure Systems
Rotating Equipment
Structures
Control & Instrumentation
Electrical Systems
Safety Systems

© ABB Group
July 10, 2014 | Slide 19
Asset Life Extension Study
Key deliverables

Overview Of Deterioration Modes & Status

Life Limiting Issues & Risks

Asset Life Cycle Actions & Costs

Asset Life-Time Expenditure Profiles

© ABB Group
July 10, 2014 | Slide 20
Asset Life Extension Study typical physical findings
Pressure systems

 Focus on hydrocarbon containing

systems
 Internal and external corrosion of
utility systems is common and
understated
 Significant corrosion and erosion in
seawater systems
 Bolting and gasket deterioration is
common
 Limited maintenance on non-return
valves
 Reduced life of internal protective
coatings
 Need for fatigue life calculations, e.g.
instrument air pressure swing
absorbers
 Deteriorating redundant equipment
 Thermal degradation of flare lines
close to tip and tip itself not always
considered

© ABB Group
July 10, 2014 | Slide 21
Asset Life Extension Study typical findings
Rotating equipment

 Compressors and pumps turn-

down capability - inadequate
for predicted production profile
 Seawater lift & fire pumps are
inaccessible and extent of
maintenance varies widely
 Structural vibrations associated
with replacement diesel
generators a major contributor
to unreliability
 Alternators are inherently
unreliable and ownership is not
always clear
 HVAC system maintenance
variations
 Limited spares held offshore

© ABB Group
July 10, 2014 | Slide 22
Asset Life Extension Study typical findings
Electrical & control

 Neglected cathodic protection systems

 Protection reconfiguration &
obsolescence
 Power supply reliability and capacity
 Cables and cable tray supports
neglected
 UPS systems not well maintained
 DCS typically have a service life of 15-
20yrs
 Process alarms often added without
thought for overall alarm management
 Local control panels and mechanical
limit switches for valves can be
problematic in exposed locations due
to corrosion
 Redundant equipment not always
isolated

© ABB Group
July 10, 2014 | Slide 23
Asset Life Extension Study typical findings
Structural & safety

 Process required for

inspection, repair and
replacement of weather and
fire doors
 Strategy to replace minor
steelwork (handrails and
ladders)
 Replacement of caissons
(plus ownership)

 Obsolete fire and gas detectors

- barrier limitations
 Obsolete communication
equipment and UPS power
supplies

© ABB Group
July 10, 2014 | Slide 24
Summary

 “Find & Fix” Culture to “Predict & Prevent ” Culture

 Proactive approach rather than fire fighting
 Utilise previous operational knowledge to help plan for the
future
 “No surprises” - integrity, health & safety, environmental,
commercial

 “Ageing is not about how old the equipment is. It’s about
what is known about its condition, how that’s changing over
time and how effectively you are managing the associated
risks”

© ABB Group
July 10, 2014 | Slide 25
© ABB Group
July 10, 2014 | Slide 26