Asset Integrity Solutions A Key Improve Differentiator

1. Asset Integrity Solutions A Key Improve Differentiator Mark McQueen, OTC 2013

2. Common Misconceptions • The most common Asset Integrity Management misconceptions are: • ‘It’s just corrosion analysis’ • Part of Quality Assurance • ‘Just another level of checks’ • Too expensive to apply • All about safety • ‘Not relevant for us’

3. Why AIM? To assist owners and operators safely, effectively, and efficiently manage the integrity and realize the maximum potential from their assets during its lifecycle without harm to people, environment, or business.

4. The Scope of AIM • Activity Applicable to every asset from a Mega-Project or to a simple in-house equipment modification • Asset Lifecycle Phase All Lifecycle Phases from Options Analysis to De-commissioning • Supply Chain From Raw Material to Point of Sale

5. Asset Integrity SolutionsKey Definitions • An unimpaired state of fitness of an Asset to operate for its specified, verified, and validated design purpose • Achieved when the risk of failure which would endanger personnel, the environment, or the Asset is As Low As Reasonably Practicable (ALARP) Asset Integrity (AI) the objective • A collective term to identify the many activities necessary to establish, secure, and demonstrate Asset Integrity • Common purpose is to contribute to the identification, removal, mitigation, or control of risk • AIM activities are a Project Responsibility Asset Integrity Management (AIM) the delivery • AIA is enabled by a process based on a structured sequence of independent audits conductedthroughout the asset development and operations lifecycle to investigate, qualify, and facilitate the subsequent assurance of integrity • AIA process is a Corporate Responsibility Asset Integrity Assurance (AIA) the endorsement

6. Corporate and Project Interaction

7. The AIM Process Steps (AIS General Model)

8. Offerings, Tools, and Techniques Fabric Maintenance Software TOOLS TECHNIQUES RAM Software Data Management Systems Readiness Reviews RAM Modeling Reliability Strategies System Optimization Analysis Risk Management Integrity Assurance Auditing Process Safety & SCE’s Asset Integrity management System PIMS Software SIL Analysis Bowtie Analysis

9. Risk Assessment/Life Extension • Risk Assessment – Performance Based The objective of the risk assessment is to ensure that the safety level premised in the design phase is maintained throughout the original design life of the subsea system. • Decisions made through risk assessment and what-if scenarios • Identification of the real integrity risks (threat assessment) • Risk Based Inspection Tool (semi quantitative model) • Optimization of Inspection Frequency • Business decision support tool

10. Life Extension/Fitness for Service • As pipelines/infrastructures age, operators have several new challenges to consider when required to operate beyond design life. Such as: • Changes in integrity [e.g. time dependent degradation mechanisms such as corrosion and fatigue or random mechanical damages (e.g. third party damages)] • Changes in infrastructure from the as-built (e.g. increased fishing activity or heavier trawl gear) • Changes in operational conditions, either as a natural change in well-stream condition, tie-in to other pipeline system, or increased production rates. • Our experience and expertise can assist the operator determine fitness for purpose for the system through a requalification program encompassing many of the processes required from an Integrity Management Program (e.g. Pipeline Revalidation Project in GoM)

11. Subsea Asset Information Management Asset Integrity Solutions Offshore Field Planning Select Improve Deliver Assess Select Specify Detailed Design Procure Fabricate & Construct Commission Abandon Produce Sources: • Flow assurance • Survey&Geoscience • Pipelines • Subsea Controls • Subsea structures • Materials • Integrity Management Data Capture Subsea Asset Information Management

12. GIS/PODS based Subsea Asset Information Management System Flow Assurance Integrity Management Engineering &Design Procurement Installation As-Built Commissioning Survey & Geoscience Subsea Asset Information Management

13. Integration Hub • PODS is the only place that can store pipeline/assets location information. • Other systems have some overlap with PODS, but they don’t have the function of storing locations. • System integration with other systems is needed such as Maximo and RBI softwares, etc.

14. System Integration: PODS and RISKWISE Integration • Integration between PODS and RISKWISE

15. Integrity Management • Risk assessment is a critical part of the overall asset integrity management process. • Risk assessment is very data intensive. PODS based AIMS can provide engineers significant amount of data. • GIS allows engineers / managers to have easy and rapid access to the risk segments along the pipeline.

16. System Delivery – Risk Sheets • Risk Sheet Generation Tool

17. The Benefits of AIM • An optimized system for: • Asset lifecycle • Reliability, availability, and maintainability • Safety, environment, and business • Production or manufacturing • Clear risk profile and mitigation • Joined-up approach, better planning, and demonstrable steps Business Decision Support Tool

18. AIS Strength • Access to the required expertise • Adoption of appropriate systems and tools • Innovation • Required processes and methodology • Access of required resources • Timely responses • Maintain the integrity and fit for service over the whole lifecycle of the asset

19. Value Proposition • Asset Integrity Data Management • Risk assessment • Risk based inspection • RAM modeling expertise • Corrosion expertise • Flow assurance expertise • New technology application to old assets • Subsea and topsides expertise • Asset life extension