Development of Guidelines and Standards for Life Extension

Knut Thorvaldsen Director HSE & OperationsNorwegian Oil Industry Associationwww.olf.no

PSA Seminar on Aging and Life Extension07 April 2010

Contents

Introduction and background

Scope of work

Deliveries

2

Introduction

Extended lifetime• A large part of the Norwegian oil and gas

production facilities have reached their initial design life, but the respective fields are still producing substantial levels of hydrocarbons.

Technical and operational integrity• OLF has initiated a project to establish the

necessary standards and guidelines for assessing and ensuring safe life extensions

3

Initiation

Consent to operate• Installations and pipelines are often designed for the

initial consent period and maintained with the same time frame in mind.

Need for standardisation• The PSA recognised the need for a standardised approach

to assessment of the integrity of such facilities

Developed tools• OLF developed tools in order to make the assessment,

application and evaluation processes cost efficient.

4

Working method

3.5 years of work• Work groups were formed for each area,

and were chaired by, and consisted of, representatives from OLF oil & gas companies

Defined scope• When the scope had been defined for the

standards, an engineering and consulting companies were hired in to develop a documents described in the scope.

5

Important workTechnical and operational integrity ofoffshore facilities on the NorwegianContinental Shelf (NCS) is importantfor:

• the safety, health and welfare of offshore employees and their families

• not harming the environment

• making sure that the owners get no interruption of their revenues, nor do the government and the citizens of the country

6

7

Complex issue

8

Age vs status on application for consent

• Number of installations on the NCS excl. pipelines:

• Number of consents expiring by end 2015:

• Number of new consents given (incl. 1 expiring 2015):

• Number of applications being prepared / handled:

• Number of applications due?

• Number of installations shut down:

• Removed/ Disposed of, additional to the 103

• Disposal approved

103

44

26

7

1

2

5

7

9

Norwegian pipelines

First installations (year) 1971

Total number of items in database : 920

Cumulated length of large pipelines (km): 6 100

Large variations in length, size and design life

Lengths: 23 km - 1 200 km

Diameter (inches): 1’’ – 44’’

Design lifetime (years) : 5 - 50

Scope of workWork divided in two:• Firstly to develop and issue recommended

guidelines, outlining a proposal for the preparation of the application of a new consent;

• Then to develop tools necessary to assess continued safe operation. Split in the following areas:

• Structural integrity • Risk management • Working environment

• Technical safety systems • Drilling & well systems• Top side process & utility systems • Transport systems (pipelines etc.) • Sub sea systems

10

11

Consent Applications for Lifetime Extension of FacilitiesScope of the OLF guideline for assessments and preparation of applications

Structural Integrity

Norsok stdPublished May 2008

Transport SystemsNorsok std

Underwater installations

Norsok std

Drilling & WellSystems

Check List Published in May 2008

OLF guidelineNo. 122

Published in June 2008

Permanente structures

Export and intra field Pipelines and risers.

Drilling systems and Well integrity, including conductors, BOP and down hole equipment

Risk managementTechnical Safety

Systems & Working

Environment

Emergency Shutdown, Evacuation, Barriers, Fire and Gas Detection and other safety systems. Living Quarters, Escape Ways, Material and Chemicals Handling , Control Rooms, Man machine interfaces.

Process & Utility Systems

Check List

Consent Applications for Life Extension of Facilities are submitted to the Petroleum Safety Authority (PSA) Norway and Norwegian Petroleum Directorate (NPD).

Main Document

Sub- Documents

Deliveries

12

Guideline for the assessment and documentation of service life extension of facilitiesThree chapters• Outlines a proposal for the preparation of the application of renewed

consent required prior to use of a facility exceeding the current consent period

• The guideline identifies how the operators can assess and document safe operation of facilities for an extended period

• Facilitate the preparation the Application for Consent for Life Extension

Start early• It is recommended to start the evaluation and application process at

least two years prior to the expiry of the current consent period

13

Technical Integrity

• Normally it is possible to safely operate an installation beyond its calculated fatigue life by using the inspection results available

• For structural details that can not be inspected, recommendations are given in the standard.

• Piles securing the installation to the sea bed are an example of such structural elements

• Specific requirements to design fatigue factors for calculation of fatigue damage from driving are given, based on driving records

( ) NCK

aY

da ma

am

th

f

i

σ

σπ

∆=

⎟⎠⎞

⎜⎝⎛

∆∆−

∫

The fatigue life is calculated based on the following crack growth equation from BS 7910

14

1. Structural Integrity for Existing Offshore Load-Bearing StructuresNew Norsok Standard – issued 2008

• NORSOK N-006 standard gives requirements for assessment of the structural integrity of offshore structures in-service and for life extension

• NORSOK N-006 is applicable to all types of offshore structures used in the petroleum activities, including bottom founded structuresas well as floating structures.

15

2. Drilling & Well SystemsChecklist - issued 2008

General considerations and requirements:• Brief status on drilling facilities & wells• Main degradation mechanisms and corresponding

control measures relating to “Safety Critical Equipment”

• Well integrity situation and potential changes in the related risk-picture

• Potential well stimulation, intervention & work over methods/ limits

• Future activity level and modification plans• Future capabilities required to monitor, access,

operate, maintain and abandon drilling- and well facilitiesCondition of utility systems to support future D&W activities

• Future capabilities to serve for potential “tie-ins”and specific measures for enhanced petroleum recovery in the area

16

3. Transport systems, Pipelines Etc

A new Norsok Standard - being issued spring 2010.

The transport system in this context is facilitating transport through pipelines, risersand loading hoses intra-field, inter-field and as trunk pipelines to shore and onshore.

17

4. Top Side Process and Utility SystemsChecklist - issued 2009

A list of systems that should beaddressed during assessing lifeextension of top side’s process andutility systems has been established• Containing “common factors” to be

considered when evaluating the integrity of process and utility systems.

• Have conditions changed from when the system was designed?

• Will future operations still be within the capabilities of the system?

• Could specific studies be required (list typical studies for individual systems)

18

5. Risk Management, Technical Safety Systems and Working EnvironmentChecklist - issued 2009

• Gives detailed comments and recommendations for the assessment of facilities concerning the areas outlined

• recommends Quantitative Risk Analysis (QRA) and necessary sensitivity studies to be updated addressing the scenario and operating conditions envisaged during the life extension period

• Evaluations of factors that may be expected to change over time should be included in the sensitivity evaluations.

19

6. Sub Sea systems

• A new Norsok Standard is being issued spring 2010.

• Subsea systems are increasingly used on the Norwegian Continental Shelf and this standard is prepared to support the process of assuring technical integrity of the sub sea system and its elements beyond the original approved service life.

17

Conclusion

The guidelines, standards and checklists developed through this project will provide valuable assistance to offshore facility owners and authorities when assessing the condition of aging facilities, and if they can be safely operated for a new consent period.

20