NORTH AMERICA OIL & GAS DNV GL PROJECTS · NORTH AMERICA OIL & GAS DNV GL maintains a highly...

SAFER, SMARTER, GREENER

DNV GL PROJECTS A partial listing of projects with summaries

NORTH AMERICA OIL & GAS

DNV GL maintains a highly skilled and experienced staff of materials scientists and engineers backed by one of the premier materials and corrosion technology centers in North America.

DNV GL is a single go-to source for all aspects of smarter asset management.

▪ Integrity management

▪ Regulatory support

▪ Risk management

▪ Management systems

▪ Root cause analysis

▪ Forensic investigation

▪ Incident response, failure support

▪ Litigation support

▪ Laboratory testing, modeling, simulation

▪ Training

DNV GL Materials & Corrosion Technology Center Columbus, Ohio


03 Integrity management

06 Risk management

09 Management systems

10 Root cause analysis

12Forensic investigation, failure analysis, litigation support

DNV GL project summaries INTEGRITY MANAGEMENT 3

info‐[email protected] www.dnvgl.com/us

SMARTER IMP MANAGEMENT

Planning and carrying out integrity management programs (IMP) requires a full understanding of regulations, industry practices, pipeline operations, materials science, and the mechanisms involved with program implementation (i.e. assessment methods, maintenance/remediation, data integration, trending, etc.).

Our approach is augmented by an in-depth knowledge and understanding of pertinent codes and regulations to include CSA Z662, ASME B31.8S, CFR 195.452, CFR 192 Subpart O, and API 1160.

TRUSTED, TRANSPARENT 3RD-PARTY EXPERTISE

Taking receipt of the ILI’s final report starts a response process that will often be a burden on the operator’s integrity staff. DNV GL maintains a staff of ILI specialists intimate with ILI technologies, operations, and analysis.

Our experience and understanding of pipeline operations, engineering, codes and industry best-practice can be used to ensure integrity program efficiency, reliability, breadth and compliance.

IMP Audit Support DNV GL provided on-site engineering support for a US operator that was in the process of preparing for their integrity management program audit by federal authorities. This project initially involved performing a gap analysis against existing procedures and writing or rewriting the section of the integrity management program as necessary. This procedure was then put through a mock audit where an unrelated group of DNV GL staff performed an audit on the revised program. DNV GL then provided support during the regulator-performed audit. Integrity Support A US operator approached DNV GL to provide technical assistance to their integrity management program. The assistance included the drafting compliance documents, in-line inspection (ILI) technology selection, ILI data review, ILI data analysis, re-inspection interval calculations, and remaining life assessments. DNV GL also provided an interim manager to the integrity program during the selection process for the vacated integrity manager’s position. Crack Program Review A US pipeline operator approached DNV GL to conduct a third party review of their integrity management program as it related to the threat of cracking. The objective of this project was to identify additional or alternative methods to assess and mitigate the threat of cracking to the pipeline. DNV GL identified alternative assessment methods, additional integrity activities to ensure the assessment reliability, and provided assistance in determining reassessment intervals as a result of the newly identified alternate methods. Stress Corrosion Cracking Direct Assessment A US pipeline operator approached DNV GL to create a stress corrosion cracking direct assessment (SCCDA) element for their existing integrity management program. The goal of this project was to create a program from the ground up that would incorporate the best elements of SCCDA taken from industry standards and best practices. DNV GL created the procedure and then assisted with its implementation. In-Line Inspection Procedures A US pipeline operator approached DNV GL to create an in-line inspection (ILI) element for their existing integrity management program.

The goal of this project was to create a document that integrated the client’s existing ILI processes with the recommended elements from API 1163 and from recommendations based on DNV GL staff experience and knowledge of best practices.

DNV GL created the procedure and then assisted with its implementation.

4 INTEGRITY MANAGEMENT DNV GL project summaries


In-Line Inspection Calibration and Validation DNV GL assisted with the validation of the results of an in-line inspection (ILI) survey. This work involved the assessment of crack-like defects in the longitudinal seam weld of low frequency ERW pipe.

The reported depth of the crack-like feature in the ILI report was compared to the depth measured in the field using non-destructive testing (NDT), the depth measured in a lab with NDT and the actual depth once the sample was broken open.

The predicted burst pressures of selected anomalies were compared to actual burst pressures of some crack-like features during hydrostatic testing. In-Line-Inspection Specification Validation A major US pipeline operator was looking for assistance in confirming the capabilities of an emerging in-line inspection (ILI) tool technology. For this project, a statistically valid defect set was designed and then manufactured into test sections of a pipe. The test sections were then installed into a flow loop where they were inspected with the ILI tool. The reported defect set from the ILI tool was compared to the manufactured defect set and a report was issued detailing the strengths and limitations of the new ILI technology. Un-piggable Pipelines Study DNV GL was contracted through an industry group to perform research on the definition of unpiggable pipelines. In this project, emerging technologies and pipeline designs were reviewed to determine what elements of a pipeline or an inspection tool lead to a pipeline to be considered unpiggable. Determination of what constitutes ‘unpiggable’ is significant in that alternative integrity assessment methods must subsequently be used if a line is not suited for ILI. Integrity Assessment for a National Oil Company The integrity assessment for the national oil company involved a detailed integrity assessment for a newly constructed pipeline. Results of the integrity assessment were incorporated into Synergi Pipeline™ (fka Orbit+Pipeline), DNV GL’s proprietary pipeline data management software, with modification and expansion of the software implemented to further address operator need. A case study was performed to demonstrate that Synergi Pipeline could be reliably used as the guiding risk assessment tool for the pipeline system. In-situ Determination of Pipe Yield Strength For a group of sponsors, DNV GL performed hardness tests on more than 50 different pipe samples to validate the ASME CRTD Vol. 91 procedure for determining the lower bound of yield strength at a range of confidence levels. The study revealed both the advantages and limitations of various types of field portable hardness testers. Furthermore, the results demonstrated that the ASME procedure assigns conservative yield strength traits for a range of pipe attributes to include age, composition, size, and strength.

Our expertise can be applied to a range of needs to include in-service repair, welding procedures and qualification, regulatory compliance and industry best practice.

We maintain a wide range of experience in early vintage construction, testing and pipe manufacturing methods, weld seam attributes, and in-situ characterization of pipe metallurgy.

DNV GL project summaries INTEGRITY MANAGEMENT 5


LEARN FROM JUST-SURVIVING DEFECTS

Calculating critical flaw size

Using validated initial flaw sizes from ILI, hydrotest, excavation, or statistical approximations, we’re able to analyze and manage large quantities of reported or suspected anomalies and apply trends from known data to better predict asset remaining life.

Critical flaw dimensions and burst pressures can be calculated using DNV GL’s proprietary CorLAS™ fracture mechanics software which refines calculations for crack and corrosion defects.

Stress Corrosion Cracking Statistical Study A Canadian pipeline operator observed stress corrosion cracking (SCC) on one of its pipelines through direct examination and approached DNV GL to evaluate the potential impact of these anomalies on the short-term integrity of the pipeline. DNV GL reviewed prior excavation data and developed a statistical model to evaluate the growth of the SCC anomalies over several years. The model provided insight into the potential significance of the anomalies and provided results to justify a more detailed integrity assessment. Service Conversion Assessment Several U.S. and Canadian pipeline operators approached DNV GL to evaluate the regulatory and integrity aspects of pipeline service conversions. DNV GL performed a review of the applicable regulations (federal and local) and identified the requirements associated with the conversions. Also, DNV GL reviewed the results of integrity assessments and recommended certain activities to be addressed prior to the conversions.

Fitness-for-Service Assessment Following a pressure restriction imposed by a regulator, a Canadian pipeline operator approached DNV GL to assist in evaluating the fitness of its pipelines at the intended maximum operating pressure. DNV GL performed fitness-for-service assessments to identify ILI-indicated anomalies that required remediation prior to operating at the higher pressure. The operator repaired the recommended anomalies and used the assessment results to justify the removal of the pressure restriction.

6 RISK MANAGEMENT DNV GL project summaries


Pipeline Risk Assessment Program Development DNV GL was contracted by a Latin American operator to develop pipeline risk assessment methodology. Project involved conducting workshops on risk and integrity management, risk model design, and producing risk results for both gathering and down-hole assets. Enterprise Risk Support for Gas Distribution Operator This project involved supporting the Enterprise Risk Management program in place for a North American gas distribution company. Specific tasks included working with numerous asset groups (mains/services/CNG/Transmission/CCE/storage/compression/measurement) to identify and quantify the various operational and asset risks they face. These risks were then presented at a board level for evaluation and consideration mitigative actions. UPTIME Risk Assessment Implementation This project included the development and implementation of a GIS-based risk assessment model for a North American gas transmission and distribution company utilizing the DNV GL UPTIME software. Process Risk Assessment of a Pipeline Network Project involved a process risk assessment of a national oil company’s entire pipeline network. This was a large scale project that involved integrating risk assessments (QRAs, HAZOPs, and HAZIDs,) and flow simulation studies for the complex pipeline network. After the assessment, the pipelines were placed on the company risk matrix for use in its risk-informed decision making. Production Network Risk Assessment for an International Oil Company DNV GL was contracted to design and implement a detailed pipeline risk assessment process for an international oil company. Models were created and incorporated into a newly designed software tool to assess the probability of failure for eight main threat categories, as well as categorical consequences of failure. Probabilities and consequences were mapped onto the company’s corporate Risk Assessment Matrix to determine levels of risk. Production Network Risk Assessment for an International Oil Company This project was an extension of the project performed for the international oil company above. DNV GL was contracted by the international oil company to review existing models and create new probability assessment models for 30 identified threats. The models also included mitigation options and probability reduction levels based on effectiveness. The project utilized DNV GL expertise from the Columbus, Houston, and Oslo offices. ERM Review - Electric Utility Company DNV GL performed a peer review of an electric utility’s enterprise risk framework to ensure that it was generally in accordance with good practice for risk assessment and risk management. The work focused on the ERM risk strategy and management policy and the ERM risk matrix covering various dimensions of potential consequence (i.e. health/safety, environment, reputation, operations). The final report and presentation identified variations to best practice and recommended measures to address those variations. Risk and Reliability Study of Pipeline Facilities DNV GL provided assistance to a major US pipeline operator in the development of a facilities integrity management program. This involved specifically the types and extent of inspections required and determined the re-inspection intervals for a variety of types and sizes of facilities. The operator needed assistance in developing a metric for how many inspections were required at their facilities to determine when a desired reliability had been met.

DNV GL project summaries RISK MANAGEMENT 7


Stress Corrosion Cracking (SCC) Assessment DNV GL assisted a major US pipeline operator with the development and execution of their program to manage SCC as a threat on their pipeline network. This project included: developing a risk assessment methodology, performing the risk assessment, collecting data on the highest risk pipeline segments, assisting with the data integration of the multiple sources or data, selecting exploratory excavation locations, and determining a reassessment interval for each pipeline investigated. Pipeline Quantitative Risk Assessment (QRA) DNV GL is part of an ongoing study to quantitatively evaluate the risk to existing (and anticipated) populated areas in proximity to a particular pipeline corridor. Once concluded, the QRA study will determine the level of compliance with regulatory mandate for societal risk and the minimum safety zones. A sensitivity analysis will show the risk reduction benefit of mitigation measures. The risk results are generated using DNV GL’s proprietary software, PHAST™. Enterprise Risk Management Framework Review DNV GL was contracted to review and comment on a draft enterprise risk management (ERM) framework developed by the client’s corporate risk group. DNV GL‘s review was to ensure that the framework was generally in accordance with good practice for risk assessment and risk management, suitable for the range of risks anticipated for an organization such as the client, and sufficiently robust to support achievement of business objectives with tolerable residual risk. The work focused on the ERM risk strategy and management policy and the ERM risk matrix covering various dimensions of potential consequence (health/safety, environment, reputation, and operations). The final report and presentation identified variations to best practice and recommended measures to satisfy industry benchmarking objectives. Risk Management Framework A partnership of two clients was formed for the development and operation of an oil sands mining, extraction and upgrading project in the province of Alberta, Canada. During the project’s design basis memorandum (DBM), the partnership tasked DNV GL to help develop the ERM and project risk frameworks with sufficient detail, clarity, and rationale to enable use as foundational risk management documents for the personnel who prepare, review, and approve the DBM. This framework would be compatible with the partnership’s intention to perform increasingly detailed risk assessments at each stage of successively more detailed and committed design through FEED, construction planning and operations/asset management. Establishment of ERM system A major international gas utility wanted to be prepared to manage risks that could severely impact health, safety, environment, financial standing and image. They also wanted to ensure an ERM framework aligned with corporate standards and industry best practice. DNV GL performed a gap-analysis, developed an enterprise risk management policy and guideline document, and established a risk register framework. The outcome of the project facilitated risks pertaining to the client’s business strategies and objectives to be identified, analyzed and treated in proactive and cost effective ways.

8 RISK MANAGEMENT DNV GL project summaries


Enterprise Risk Management A major North Sea floating production storage offloading (FPSO) operator wanted to double its FPSO fleet and become as good as or better at managing risk than the operators they served. The company also wanted to elevate their current “entrepreneur mindset” from its primary focus on the action and execution phase to include planning, management and follow-up of risks and opportunities. DNV GL implemented a phased approach: (i) evaluate risk management maturity; (ii) develop a risk management framework; and, (iii) implement the framework within the organization by working closely with the client. Risk management was integrated into the operator’s business processes, management system and organizational culture. Also, a risk management framework built around existing processes and in support of the company’s strategy and business objectives was developed. ISO 31000 Risk Management – Principles and Guidelines DNV GL provided expertise to the working group that developed ISO 31000. ISO 31000 was published as a standard in November, 2009, and provides a standard on the implementation of risk management. Risk Management Framework Development (in progress) A major North American pipeline operator contracted DNV GL to develop and implement a risk management framework that integrates risk-informed decision-making across engineering, integrity, and risk functions that support the day-to-day operation of the operator. The project is being conducted in close coordination and collaboration with the operator and will utilize the operator’s existing documentation and processes, where possible, to support the framework. The risk management framework is being developed in accordance with the requirements of ISO 31000 Risk Management - Principles and Guidelines. A gap analysis based on best practice and the ISO 31000 framework is the first phase of the project. Asset Integrity Management System Development This project involved the development of a complete asset integrity management system. After the system elements were finalized a gap analysis of existing company procedures and policies were conducted in order to benchmark against industry best practice. As part of the risk management element, this project also involved developing a risk assessment program for company pipelines, facilities, and offshore structures. Risk Management Benchmarking This project involved benchmarking an operator’s risk management program against others in industry as well as DNV GL’s best practice considerations. This was accomplished by developing benchmarking criteria based on ISO 31000. A detailed program and procedure review was completed along with company subject matter expert interviews to gain a full understanding of their system. Risk Management Program Development DNV GL was contracted to develop a risk management program for a major North American operator. The resulting program involved a system for risk identification, assessment, evaluation, and control. The work performed in this project led to a higher level risk management system review in order to align aspects of risk throughout the organization.

DNV GL project summaries MANAGEMENT SYSTEMS 9


Management System Review #1 DNV GL has performed a number of management system review projects for national and international pipeline operators and other businesses that utilizing governing management systems. DNV GL has a defined program to perform systematic reviews of the ten elements that are typically included in a management system audit. For pipeline operators these elements are: 1) leadership and accountability; 2) pipeline integrity; 3) risk assessment and management; 4) management of change; 5) training and consequence; 6) working with contractors, the community, and others; 7) information, records, and data management; 8) investigation and follow-up; 9) safe work practices, standards and procedures; and, 10) crisis and emergency management. Contribution to ‘Managing Business Risk’ DNV GL contributed three chapters to the ERM textbook Managing Business Risk: A Practical Guide to Protecting Your Business (2007 edition). The textbook is recommended by the Institute of Risk Management.

10 ROOT CAUSE ANALYSIS DNV GL project summaries


Root Cause Analysis of Oilfield Water Injection System DNV GL was contracted to perform a root cause analysis (RCA) to address an increase in down hole internal corrosion leaks in a water injection system used for enhanced oil recovery in an aging field. The project included forensic corrosion analysis of failure tubing samples collected from the field and review of operating and chemical treatment procedures and records. DNV GL’s expertise in corrosion mechanisms, including microbiologically influenced corrosion (MIC) and its mitigation, and forensic analysis helped identify areas where the client could reduce the potential for MIC in their water handling practices. Root Cause Analysis of Geothermal Steam Turbine Damage of steam turbine blades and rotor was found during inspection. Metallurgical analysis and testing of samples of damage and undamaged blades was performed. Documentation related to steam turbine, including past inspections and prior root cause analyses, was reviewed. Performed a root cause analysis to determine cause of wear and corrosion found on a geothermal steam turbine's rotor and blades. Root Cause Analysis of Pipeline Release Performed a root cause analysis using the DNV GL BSCAT methodology for a diesel pipeline release where product reached water. Metallurgical analysis resulted in failure due to external corrosion. Reviewed information and performed interviews of personnel to gather data related to release location, including integrity and risk data and documentation as well as external corrosion data and documentation. Root Cause Analysis of Reactor Overflow A pack tower in a chemical processing plant overflowed and overheated. DNV GL performed on-site inspection, interviews of personnel, and data collection. Root cause analysis using the DNV GL BSCAT methodology was performed, which involved building a timeline of events and using BowTie diagrams to graphically show the event and analyze the barriers for management system causes. Flow modeling, mass balance analysis, and material and energy balance equations were used to determine root cause based on data collected prior to, during, and following the incident. Root Cause Analysis for Historical Leaks Performed a root cause analysis for historical leaks on distribution pipelines that were categorized as having the same cause (e.g. incorrect operations, equipment failure, etc.). Used release data and geographic information systems (GIS) to analyze data for trends in historical leaks. Root Cause Analysis of Hot Tap Incident Performed a root cause analysis using the DNV GL BSCAT methodology for a release that occurred during a hot tap process on a pipeline. Collected documentation, including metallurgical analysis of weld performed during hot tap, and performed interviews to build timeline of events, identify barriers, analyze the effectiveness of those barriers, and identify the root cause. Root Cause Analysis of Facility Pipe Failure Performed a root cause analysis for a failure of an underground feed line to storage tanks. The metallurgical analysis found the cause to be internal corrosion. Performed site inspection, data gathering, and interviews to collect data for analysis. Root Cause Analysis of Damaged Propeller on Tanker Damage to propeller on tanker identified during inspection. Reviewed documentation related to inspections of damaged propeller, metallurgical analysis, and investigations performed by additional third parties. Complied information to perform root cause analysis of corrosion and erosion on the propeller.

DNV GL project summaries ROOT CAUSE ANALYSIS 11


Root Cause Analysis of a Gasket Failure of a Refinery DNV GL was contracted to perform an RCA of a gasket failure that ultimately resulted in a refinery fire fed by hydrogen and hot oil.

DNV GL’s proprietary Systematic Cause Analysis Tool (SCAT™) was used to determine immediate cause of failure as well as the basic causes and lack of control elements that led to each identified immediate cause.

The project resulted in changes to the mechanical integrity program at the facility as well as a reworking of the facility’s entire process safety management system. Root Cause Analysis of a Main Engine Bearing DNV GL was contracted to perform an RCA for failure of a main engine bearing on a $1.4 billion maritime vessel. DNV GL’s proprietary SCAT analysis tool was used to determine immediate cause of failure as well as the basic causes and lack of control elements that led to each identified immediate cause.

12 FORENSIC INVESTIGATION, FAILURE SUPPORT, LITIGATION SUPPORT DNV GL project summaries


Natural Gas Pipeline Failure Failure of a 12" natural gas pipeline which ruptured and ignited at an environmentally sensitive location. Provided on-site inspections and sample collections. Performed coating testing, chemical testing, modeling, corrosion rate testing and environmental simulation in laboratory. Reviewed extensive documentation provided by client and federal authorities (international). Provided an expert opinion report and a feasibility report. Natural Gas Pipeline Failure Failure of a 26" natural gas pipeline that ruptured. Provided crews on-site for visual inspections and sample collection. Analysis on sample performed in our laboratory included: chemical analysis, mechanical testing, metallographic and fractographic analysis, SEM/EDS, computer modeling estimating burst pressure and magnetic particle Inspection of pipe surface. Butane Gas Pipeline Failure Failure of an 8" liquid butane gas pipeline that leaked, ruptured, and ignited. Performed analysis on failed pipe and provided expert opinion, deposition, and trial testimony in $100 million dollar lawsuit. Chemical Spill Chemical release near industrial facility which we investigated alleged claims that release was due solely to corrosion. Provided workers to investigate onsite for 6 weeks and provided further testing in our laboratory. Performed analysis on samples collected and provided an expert opinion and deposition for the $420 million dollar lawsuit. Natural Gas Pipeline Failure A natural gas pipeline ruptured and ignited, destroying homes in a subdivision. Provided expert opinion based on reviewed data, documents, reports, photos, and related documents. Natural Gas Explosion A natural gas source ignited at a gas station. Performed on-site inspections, review of data collected, review of documents and reports. Provided an expert opinion report. Water Pipeline Corrosion A leak occurred in a chilled water system pipeline for a stadium. DNV GL performed on-site inspections, review of documents and reports. Performed laboratory water analysis for bacteria, chemical composition, resistivity and conductivity. Performed physical measurements of wall thickness, microscopy and hydrostatic pressure testing of the pipe. Provided data and documentation to expert for report. Case settled before proceeding to trial.

LEARN FROM ASSET FAILURE

DNV GL, as an independent foundation, is highly recognized for its thorough and fully transparent failure investigations. From major breakdowns to minor damage of individual components, our advanced laboratory testing and failure investigations provide our clients with valuable insight as to how components fail, and why.

BEYOND OUR NORTH AMERICAN MATERIALS AND CORROSION LABORATORY

DNV GL operates seven primary testing and laboratory facilities throughout the world. The extent of our research and

full-scale testing is un-matched in the private sector. Our Spadeadam test site in northern England is the largest full-

scale test center in the world, carrying out discrete destructive and non-destructive experiments, investigative testing

and technical project work. From flammable gas dispersion and pipeline fracture tests to vapor cloud fires and hazard

awareness training, projects for pipeline operators can feature flammable or toxic gases, high pressures / temperatures,

cryogenic liquids, high explosives, and rapid data capture.

FULL-SCALE TESTINGDNV GL SPADEADAM TEST SITE

NORTHERN ENGLAND

[email protected] www.dnvgl.com/US


▪ Pipelines & facilities

▪ Oil & gas

▪ Refining

▪ Chemical processing

▪ Utilities

▪ Wind energy

▪ Ships & tankers

▪ Manufacturing

Primary industies and sectors served

DNV GL is a leading provider of risk management, technical advisory and technical assurance services to the oil and gas industry, specializing in challenging operating environments and mediums in both onshore and offshore (deep/ultra deep) applications. With global reach with offices in over 100 countries, DNV GL endeavors to drive the oil and gas industry to be Safer, Smarter and Greener by offering unique technical competence and innovation.

Our science and engineering expertise can be applied to a wide range of disciplines related to materials / technology (testing, selection, verification), degradation, integrity management, flow optimization, forensic investigation and management systems.

The trademarks of DNV GL and the Horizon Graphic are the property of DNV GL AS. All rights reserved. ©DNV GL 06/2015

Primary offices - North America Oil & GasHouston

1400 Ravello Dr.

Katy, TX 77449

281 396 1000

Calgary

2618 Hopewell Place NE

Calgary, AB T1Y 7J7

403 250 9041

Columbus

5777 Frantz Rd.

Dublin, OH 43017

614 761 1214

NORTH AMERICA OIL & GAS DNV GL PROJECTS · NORTH AMERICA OIL & GAS DNV GL maintains a highly...

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