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Development of Guidelines
and Standards for Life Extension

PSA Seminar on Aging and Life Extension
07 April 2010
Knut Thorvaldsen
Director HSE & Operations
Norwegian Oil Industry Association
www.olf.no
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 work
Technical and operational integrity of
offshore facilities on the Norwegian
Continental Shelf (NCS) is important
for:
• 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
Complex issue




  7
Age vs status on application for consent
• Number of installations on the NCS excl. pipelines:     103

• Number of consents expiring by end 2015:                44

• Number of new consents given (incl. 1 expiring 2015):   26

• Number of applications being prepared / handled:         7

• Number of applications due?                              1

• Number of installations shut down:                       2

• Removed/ Disposed of, additional to the 103              5

• Disposal approved                                        7




8
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




9
Scope of work
     Work 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
Consent Applications for
Lifetime Extension of Facilities
Scope of the OLF guideline for assessments and preparation of applications




                                                                           OLF guideline
                                      Main Document
                                                                             No. 122
                                                                        Published in June 2008


                                                                              Sub- Documents


                                                                                               Drilling & Well          Drilling systems and Well
                              Permanente structures             Structural                                              integrity, including
                                                                 Integrity                        Systems               conductors, BOP and down
                                                                                                 Check List             hole equipment
                                                                 Norsok std                 Published in May 2008
                                                             Published May 2008

                                                               Transport                       Process &
                              Export and intra field
                              Pipelines and risers.            Systems                      Utility Systems
                                                                 Norsok std                       Check List


         Emergency Shutdown, Evacuation,                  Risk management                      Underwater
         Barriers, Fire and Gas Detection and other       Technical Safety
         safety systems.                                                                       installations
         Living Quarters, Escape Ways, Material               Systems &                           Norsok std
         and Chemicals Handling , Control Rooms,
         Man machine interfaces.                               Working
                                                             Environment

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

        11
Deliveries




12
Guideline for the assessment and
documentation of service life extension of facilities
Three 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        The fatigue life is
   using the inspection results available                    calculated based on the
                                                             following crack growth
                                                             equation from BS 7910
 • For structural details that can not be
   inspected, recommendations are given in the
                                                        af
   standard.
                                                                        =C(∆ ) N
                                                                 da
                                                        ∫⎛                  σ     m

                                                                 ∆K ⎞
                                                                      m

                                                           ⎜Y πa− th ⎟
                                                        ai
 • Piles securing the installation to the sea bed
   are an example of such structural elements              ⎝      σ
                                                                 ∆ ⎠

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



14
1. Structural Integrity for Existing
   Offshore Load-Bearing Structures
      New 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 structures
  as well as floating structures.




 15
2. Drilling & Well Systems
      Checklist - 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, risers
 and loading hoses intra-field, inter-field and
 as trunk pipelines to shore and onshore.




17
4. Top Side Process and Utility Systems
     Checklist - issued 2009


 A list of systems that should be
 addressed during assessing life
 extension of top side’s process and
 utility 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 Environment
     Checklist - 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

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Development of Guidelines and Standards for Life Extension

  • 1. Development of Guidelines and Standards for Life Extension PSA Seminar on Aging and Life Extension 07 April 2010 Knut Thorvaldsen Director HSE & Operations Norwegian Oil Industry Association www.olf.no
  • 2. Contents Introduction and background Scope of work Deliveries 2
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. Important work Technical and operational integrity of offshore facilities on the Norwegian Continental Shelf (NCS) is important for: • 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
  • 8. Age vs status on application for consent • Number of installations on the NCS excl. pipelines: 103 • Number of consents expiring by end 2015: 44 • Number of new consents given (incl. 1 expiring 2015): 26 • Number of applications being prepared / handled: 7 • Number of applications due? 1 • Number of installations shut down: 2 • Removed/ Disposed of, additional to the 103 5 • Disposal approved 7 8
  • 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 9
  • 10. Scope of work Work 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 Facilities Scope of the OLF guideline for assessments and preparation of applications OLF guideline Main Document No. 122 Published in June 2008 Sub- Documents Drilling & Well Drilling systems and Well Permanente structures Structural integrity, including Integrity Systems conductors, BOP and down Check List hole equipment Norsok std Published in May 2008 Published May 2008 Transport Process & Export and intra field Pipelines and risers. Systems Utility Systems Norsok std Check List Emergency Shutdown, Evacuation, Risk management Underwater Barriers, Fire and Gas Detection and other Technical Safety safety systems. installations Living Quarters, Escape Ways, Material Systems & Norsok std and Chemicals Handling , Control Rooms, Man machine interfaces. Working Environment Consent Applications for Life Extension of Facilities are submitted to the Petroleum Safety Authority (PSA) Norway and Norwegian Petroleum Directorate (NPD). 11
  • 13. Guideline for the assessment and documentation of service life extension of facilities Three 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
  • 14. Technical Integrity • Normally it is possible to safely operate an installation beyond its calculated fatigue life by The fatigue life is using the inspection results available calculated based on the following crack growth equation from BS 7910 • For structural details that can not be inspected, recommendations are given in the af standard. =C(∆ ) N da ∫⎛ σ m ∆K ⎞ m ⎜Y πa− th ⎟ ai • Piles securing the installation to the sea bed are an example of such structural elements ⎝ σ ∆ ⎠ • Specific requirements to design fatigue factors for calculation of fatigue damage from driving are given, based on driving records 14
  • 15. 1. Structural Integrity for Existing Offshore Load-Bearing Structures New 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 structures as well as floating structures. 15
  • 16. 2. Drilling & Well Systems Checklist - 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
  • 17. 3. Transport systems, Pipelines Etc A new Norsok Standard - being issued spring 2010. The transport system in this context is facilitating transport through pipelines, risers and loading hoses intra-field, inter-field and as trunk pipelines to shore and onshore. 17
  • 18. 4. Top Side Process and Utility Systems Checklist - issued 2009 A list of systems that should be addressed during assessing life extension of top side’s process and utility 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
  • 19. 5. Risk Management, Technical Safety Systems and Working Environment Checklist - 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
  • 20. 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
  • 21. 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