HSE AGEING & LIFE

EXTENSION INSPECTION

PROGRAMME

Alex Stacey

Offshore Division

Health & Safety Executive

PRESENTATION OUTLINE

● Ageing on the UKCS

Background information

Importance to HSE / Industry / Stakeholders

Regulations

● HSE / OSD activities on Ageing

Related interventions

Guidance

S&T

Pilot Study on Ageing Installations• Scope

• Inspection findings

● Ageing & Life Extension Inspection programme

Programme scope

UKCS Installations (DECC)

0

50

100

150

200

250

300

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Year of first oil/gas

No

of

UK

CS

in

sta

lla

tio

ns

in

pro

du

cti

on

Small steel jacket

Large steel jacket

Jackup

Concrete GBS

Semi-sub

FPSO

TLP0

50

100

150

200

250

300

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Year of first oil/gas

No

of

UK

CS

in

sta

lla

tio

ns

in

pro

du

cti

on

Small steel jacket

Large steel jacket

Jackup

Concrete GBS

Semi-sub

FPSO

TLP

108 installations

>25 years old

146 installations

>20 years old

RENEWED FOCUS ON AGEING

AND LIFE EXTENSION

● Traditional models of dwindling reserves & increasing

O&M costs predict end of life

● Enhanced recovery methods and the good market drive

life extension

● Is asset being managed adequately?

Ca

sh F

low

time

Probability of end

of life

revenue

Cost (ops &

maintenance)

AGEING PRODUCTION

0

1

2

3

4

5

6

7

8

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Year

An

nu

al

oil

pro

du

cti

on

(M

illi

on

cu

.m)

2007 Supply - Reliance on Older

Fields

0%

2%

4%

6%

8%

10%

12%

14%

16%

0 5 10 15 20 25 30 35 40 45

Age of installation

Pro

po

rtio

n o

f p

rod

ucti

on

fro

m f

ield

Oil

Dry gas

Associated gas

Buzzard

FortiesElgin

Foinaven

Britannia

Morecambe S

Rough

Leman Per.Leman Shell

West SoleViking

Beryl

Brent

Beryl

Brent

MagnusNinian

Claymore

LOSS OF INTEGRITY

● Ageing: Potential for accumulating and / or accelerating damage and subsequent loss of integrity

● Need to focus on asset integrity management (AIM) of ageing (organisational issues, inspection, technology)

● Need:

good data on current condition

understanding of degradation processes & response

use of best technology / latest assessment methods (e.g. system strength) to determine safety margins

development of new techniques (e.g. online monitoring)

implementation strategy

Early life

failures

Wear-out

phase

Time

Bathtub Curve

Steady failure rate

EXAMPLES OF DETERIORATION

Door on TR HVAC room Cellar deck grating support steel work

Elect/Inst cables & tray Main truss below lifeboat

EXAMPLES OF DETERIORATION

Blast wall connections

KP3: ASSET INTEGRITY KEY

PROGRAMME

● KP3 Aim

‘To ensure that duty holders manage effectively the risk of any failure of structure, plant, equipment or systems, which could either cause or contribute to, or prevent or limit the effect of, a major accident and / or cause fatalities.’

● KP3 Focus

The integrity management of safety critical elements (SCEs), which provide the barriers to major accident hazards

Concentrated on the current condition of key assets, not the management of future integrity / ageing issues

KP3 BACKGROUND

● Weaknesses in the implementation of the independent verification process

● Emphasis on costs (resulting in reduced manning and multi-tasking) affecting potential safety performance

● Backlog of maintenance work

● Significant incidents due to maintenance or integrity failures

AGEING SCENARIOS

● Time-dependent mechanisms Fatigue (welded connections, piles, supports)

Corrosion

Creep (non-metallic components)

● Damage or deterioration over time Accidental damage (ship impact, dropped objects – cumulative

effects)

Environmental overload

Geological & geotechnical (subsidence, scour, pile failure)

● External changes with time New technologies / understanding

More stringent standards

Failure to adapt to change

Obsolescence

Loss of knowledge base

UK REGULATORY PROVISIONS

FOR AGEING

● SCR (2005): 5-yearly safety case ‘thorough review’ and revision

● Safety case revision if proposed to extend use beyond design life

(Explicit reference to ‘life extension’ clarifies the need for specific consideration)

● DCR (1996):

Periodic maintenance / remedial work

Performance standards

Independent verification by ICP

● PFEER (1995): inherent safety by design, preventive, detection, control and mitigation measures

● PUWER (1998): control of hazards due to equipment failure; requirement for appropriate inspection and maintenance procedures to be in place

● PSR (1996): life cycle requirements to

maintain pipeline ‘in an efficient state, in efficient working order and in good repair’;

identify hazards, evaluation of risks (including susceptibility to damage)

● HSWA (1974) / MHSWA (2003)

● Use of modern codes & standards, good practice (e.g. HSG65):

- Policy, Organisation, Planning, Maintenance, Audit, Review

Safety Management System (OGP)

OSD ACTIVITIES ON AGEING

● Technical policy and strategy on ageing (structural integrity)

● Thorough Reviews & Safety Cases

● Inspection

SIMIP

Pilot study on ageing installations (2009)

Development of full inspection programme on Ageing & Life Extension: 2010 - 2013

● S&T Technology projects, e.g.:

• SI: SIM, overview of ageing on UKCS, life extension, new technology, review of worldwide practices, structural monitoring, mobile installations issues, fatigue, residual stresses, materials

• Corrosion

Standards and guidance, incl. HSE Information Sheet 4/2009 on Thorough Review guidance

● Stakeholder engagement Dissemination (e.g. OMAE, PSA, IMechE, IChemE) Ongoing collaboration with PSA, Norway Ageing Network (2010 / 11)

STAKEHOLDER ENGAGEMENT:

HSE / PSA COLLABORATION

● Regular HSE / PSA meetings (AS / Gerhard Ersdal, Rolf Hinderaker, Erik Hørnlund)

● PSA seminar ‘Ageing Installations & Life Extension’, 25 May 2007

● PSA seminar ‘Ageing Installations & Life Extension’, November 2007

● OMAE conference, HSE / PSA Workshop on Ageing, June 2008

● HSE / PSA Ageing meeting, February 2010

Structural integrity, corrosion, F&B, process integrity, mechanical integrity, electrical & control systems, pipelines

● PSA Seminar on Ageing & Producing Life Extension, 7-8 April 2010

OSD ACTIVITIES ON AGEING

● Technical policy and strategy on ageing (structural integrity)

● Thorough Reviews & Safety Cases

● Inspection

SIMIP

Pilot study on ageing installations (2009)

Development of full inspection programme on Ageing & Life Extension: 2010 - 2013

● S&T Technology projects, e.g.:

• SI: SIM, overview of ageing on UKCS, life extension, new technology, review of worldwide practices, structural monitoring, mobile installations issues, fatigue, residual stresses, materials

• Corrosion

Standards and guidance, incl. HSE Information Sheet 4/2009 on Thorough Review guidance

● Stakeholder engagement Dissemination (e.g. OMAE, PSA, IMechE, IChemE) Ongoing collaboration with PSA, Norway Ageing Network (2010 / 11)

HSE GUIDANCE ON THOROUGH

REVIEWS - OIS 4/2009

● Thorough review of the safety case

Thorough review summary

Asset life extension

● Management of ageing

Fire and explosion risk assessment• Risk assessment

• Options for addressing ageing

Structural integrity• Structural integrity management

• Life extension

Performance indicators

Organisational issues

● Issues with ageing

AGEING SI S&T: 2008 - 2011

● Framework for the Structural Integrity Management of Fixed Installations

● Framework for the Structural Integrity Management of Mobile Installations ____________________________________________________________________

● Review of Classification Society Rules for Floating Installations on the UKCS

● Evaluation of Worldwide Practices on the Structural Integrity Management and Regulation of Ageing Installations

● Overview of the UK's Ageing Offshore Infrastructure

● Techniques and Technologies for Ageing Jacket Integrity____________________________________________________________________

● Review and Appraisal of Current Structural Integrity Monitoring Technologies for Offshore Applications

● Review and Assessment of Material Property Requirements for Mobile Installations

● Further Study of Fatigue Damage to Girth Welds From Low Stresses in the Loading Spectrum (JIP)

● Investigation of Residual Stresses in Welded Joints (JIP)

OSD ACTIVITIES ON AGEING

● Technical policy and strategy on ageing (structural integrity)

● Thorough Reviews & Safety Cases

● Inspection

SIMIP

Pilot study on ageing installations (2009)

Development of full inspection programme on Ageing & Life Extension: 2010 - 2013

● S&T Technology projects, e.g.:

• SI: SIM, overview of ageing on UKCS, life extension, new technology, review of worldwide practices, structural monitoring, mobile installations issues, fatigue, residual stresses, materials

• Corrosion

Standards and guidance, incl. HSE Information Sheet 4/2009 on Thorough Review guidance

● Stakeholder engagement Dissemination (e.g. OMAE, PSA, IMechE, IChemE) Ongoing collaboration with PSA, Norway Ageing Network (2010 / 11)

AGEING & LE INSPECTION

PROGRAMME

● Pilot study on ageing installations: 2009

3 duty holders

Generic management, Structural integrity, Fire & explosion, Corrosion, Pressure systems integrity

Set of standard questions for each topic area – ‘templates’

● Ageing & LE Inspection Programme: 2010 - 2013

Review of findings from pilot study

Development of full programme for 2010 – 2013

PILOT STUDY

Inspection Overview

Serious deficiencies

requiring immediate

attention

Matters raised

formally linked to

ongoing work or

change

No matters needing

formal raising with

the DH

No consideration of

or management of

ageing

Awareness of

ageing. Some

evidence of ageing

being managed.

AIM system takes

full account of

ageing

Duty

HolderPlatform

Structural

Integrity

Fire &

ExplosionCorrosion

Pressure

Systems

Integrity

DH1 P1

DH2 P2

DH3 P3

PILOT STUDY

Key Findings

● Findings to date suggest lack of full recognition of the significance of ageing processes in connection with life extension beyond the original design life

● Ageing not considered explicitly

● Varied approach between DHs and topics – asset maintenance not always a high priority

● Influence of commercial pressures on AIM

● Reliance on contractors and ICP

● All 3 DHs aware of OIS 4/2009 (HSE website)

● All 3 DHs receptive to an industry forum on ageing issues

AGEING & LE INSPECTION

PROGRAMME 2010 - 2013

Aims:

● to inspect DHs’ safety management systems with respect to

the arrangements for the thorough review of safety cases

the management of the risks to asset integrity associated with ageing and life extension

● to identify shortcomings in duty holders’ approaches

● to develop improved practices to ensure the safe operation of all offshore installations on the UKCS

AGEING & LE INSPECTION

PROGRAMME 2010 - 2013

● Full programme: 2010 – 2013

● Launch: 19 May 2010, Aberdeen

● Supported by policy and strategy documents

● Ageing fixed and mobile installations

● Inspection of DH AIM systems - special focus on key installations

● Onshore and offshore inspections

● Topic areas: structural integrity, process plant integrity, pressure systems integrity, materials (including corrosion), mechanical integrity, maritime integrity, electrical & control systems integrity, wells, pipelines, organisational issues

INSPECTION PROGRAMME -

Details

Fixed platforms Semi-submersibles

& FPSOs Jack-ups

Onshore Offshore Onshore Offshore Onshore Offshore

Year 1 8 4 - - - -

Year 2 8 4 4 2 4 2

Year 3 8 4 4 2 4 2

Duty holder prioritisation:

- asset / platform age

- manning

- known issues (PAITs / TRs)

INSPECTION PROGRAMME -

Supporting Activities

● Stakeholder engagement

Press releases

Dissemination (workshops, seminars, conferences, journals, etc.)

Liaison with key industry bodies (e.g. OIAC, Step Change In Safety, Oil & Gas UK, IADC, BROA)

Ageing webpage

● S&T on A&LE aspects of AIM

● Review & updating / development of standards and

guidance, incl. OIS 4/2009 on Thorough Review

Guidance

INSPECTION PROGRAMME –

Key Outputs

● Final report

● Guidance on Ageing, Life Extension & the Thorough Review

process

● Industry network for the exchange information and

experience on ageing and life extension issues

● Development of best practice on ageing

● Improved asset integrity management

PRESENTATION OUTLINE

● Ageing on the UKCS

Background information

Importance to HSE / Industry / Stakeholders

Regulations

● HSE / OSD activities on Ageing

Related interventions

Guidance

S&T

Pilot Study on Ageing Installations• Scope

• Inspection findings

● Ageing & Life Extension Inspection programme

Programme scope

CONCLUSIONS

● Consideration of ageing issues is a key element of asset / installation integrity management

● Operating beyond the intended design life brings technological, managerial and economic challenges

● Findings to date suggest lack of full recognition of the significance of ageing processes in connection with life extension beyond the original design life

● HSE needs to work with the UK industry and towards a unified approach to the integrity management of ageing offshore infrastructure across all installation types

● Way forward: Ageing & LE Inspection Programme

● Ageing offshore installations are set to be a key HSE priority for the foreseeable future

www.hse.gov.uk