The Role of Inspection During the Lifetime of a Pipeline Technical Conference: 7 th ASIAN PIPELINE CONFERENCE AND EXHIBITION, October 2011 Istana Hotel, Kuala Lumpur, Malaysia Jim COSTAIN Global Leader, Oil & Gas GE MEASUREMENT AND CONTROL SOLUTIONS

Industry Drivers Aging Pipeline InfrastructureConsequences of Pipeline Failure Headlines from Pipeline Failures Cost of Corrosion 11 to 20 Years 22 % < 10 Years 14% New 2% > 20 Years 62% Injury & Loss of Life … Environmental Damage Oil Major Is Fined $25 Million for ’06 Spills at Pipelines By JOHN M. BRODER Published: May 3, 2011 in the NYTimes Gas Major fined P24.2 million over pipeline leak By ELLALYN B. DE VERA Published: November 23, 2010 in the Manila Buletin Lost Production.. Repair Costs.. Damaged Public Image Cost of Corrosion (US, 1998) was estimated at a total of $276 billion per year. Corrosion experts estimate that a net of 20 to 25% of that annual cost can be saved by applying currently available corrosion control technologies Global estimates at least 4x the numbers above Corrosion Costs in the USA 4% of GDP annually (Source: USA Department of Transportation)

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Ultrasonic Remote Visual Inspection Radiography Eddy Current Testing Machines Data Management Software Film, Equipment and Chemistry Digital Radiography (FS, CR, DR) X-ray Generators Instruments and Probes Automated Systems Ultrasonic and X-ray Standard Customized Video Borescopes Borescopes Fiberscopes PTZ Cameras Robotic Crawlers Inspection Services Rentals Rhythm Acquire Rhythm Review Rhythm Archive Metrology Non-contact Air Foil System Flaw Detectors Thickness Gauges Hardness Testers System Instrumentation Transducers Installed Sensors Inspection Technologies

Pipeline Inspections in the Manufacturing Process

6 Inspection Technologies During the Manufacturing Process Depending on the manufacturing process (ERW, SAW) and on the subsequent use of the tube, there are several options where in the process and to what extent non-destructive testing can be applied. Testing machines are typically operated inline with the manufacturing process and need to be designed according to individual requirements based on flaw detectability and test speed. Ultrasonic testing in the ERW process Strip body Edge Strip testing (at the inlet of the welding line, before forming) Weld Scarf monitoring Heat-affected zone Inline weld testing (after welding/annealin g/sizing ) Weld Full body Tube end Final acceptance test (at the finished product) Ultrasonic and X-Ray testing in the SAW process Plate Online weld UT Final acceptance test UT Final acceptance test X-Ray Longitudinally welded Strip Online weld UT Final acceptance test UT Final acceptance test X-Ray Spirally welded

SAW - Ultrasonic testing machines Weld testing on SAW longitudinally welded tubes (linear transported tubes)

SAW – Ultrasonic testing machines Spirally welded tubes Strip testing (body and edge) with stationary probes

Weld testing of SAW longitudinally welded tubes SAW - X-Ray testing machines

Pipeline Inspections during Pipeline Construction

Weld quality is a critical part of any project in the O&G market whether a new refinery, offshore platform or cross country or subsea pipeline. GE S&I has a comprehensive portfolio of solutions from the pipe mill to the field. Using state of the art UT and RT technology, GE can provide fit for purpose tools to suit all types of weld examinations. Weld Inspection Automated UT CR for offshore girth welds

GE Proprietary Information Subject to restrictions on the cover or first page USM Vision Weld Inspection Solution Key Features Menu guided set-up and inspection to optimize time of inspector capabilities Meets international codes & standards Data analysis, reporting, and sharing with GEIT Rhythm

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Inspection Plan Creation Data Acquisition Data Analysis Archive Rhythm IPC Rhythm Review Rhythm Reporting PA & TOFD Rhythm Archive Probe/Scanner Cal Blocks Administrator inputs data Level III reviews plan Level I or II UT or RT inspector performs inspection Level II/III reviews data Adminstrator generates report and archives data USM Vision Weld Inspection Solution Reporting

USM Vision Guided Inspection Workflow UT Inspector Non UT Specialist UT Expert (Remote) Inspection preparation Non UT Specialist UT Expert

In-Service Pipeline Inspections

1.Rightrax is a system that can measure wall thickness continuously by using permanently installed UT transducers. 2.Rightrax consists of two product versions. A.A low temperature -40°C <120°C / -40°F < 248°F system B.A high temperature version -20°C<500°C / -4°F < 932°F system 3.Both systems are non intrusive and can be installed on live pipelines 4.Both system installed versions have hazardous area certification 5.Installed without any welding 6.Data can be easily read by Asset Integrity and easily transferable to existing RBI program Rightrax Applications in Oil & Gas Upstream, Exploration and Production Offshore Installations Unmanned Offshore Installations FPSO Midstream, Transportation Cross-country pipe lines Downstream, Processing and Refining Refineries Petrochemicals The GE Rightrax system The smart way to monitor wall thickness

System configurations 1. PORTABLE For both LT and HT systems Manually operated Data collection in the field Data download to PC or laptop Manual assessment of data ADVANTAGE Lower system cost Flexibility of system use 2. INSTALLED For both LT and HT systems Automatically operated Fixed interval measurements Data storage Manual data collection Manual assessment of data ADVANTAGE System is certified for HAZ use No human intervention for measurements Monitor process related events ADVANTAGE System is certified for HAZ use No human intervention required Monitor process related events System alarming on special events and conditions 3. INTEGRATED For both LT and HT systems Automatically operated Fixed interval measurements Data storage Automatic data analyses Integration with third party systems with data and alarming

Upstream Case Study Concern: Unmanned offshore installations require frequent wall thickness monitoring due to unpredictable sand erosion. 6” & 8” Lines: 6-8mm wall thickness Erosion rates can be up to 4mm / 24 hours Monitoring is required and location is remote Normal Operational Temperature is 80°C Solution: Total of 96 Rightrax M2 sensors on 6 individual platforms M2 sensors wired back to DL2 Datalogger and LD2 in hazardous area LD2 line driver connected to RTU using Modbus interface and VFC contacts Configuration: Measurements made every 8 hours Data analysed on the LD2 line driver Measure to 5mm thickness with VFC dry contact alarm if threshold thickness value is violated Data sent to Onshore Control Room to analyse and monitor riser wall thickness Data by Modbus Via RTU – HMI - PCS Value and cost saving: No bi-weekly mobilization of personnel Monitoring critical process and preventing incidents More operational control (pressure and flow) Less downtime offshoreonshore

Midstream Case Study Concern: Measure Water, H 2 S, & CO 2 Corrosion on Underground Natural Gas Allocation, Transmission & Distribution Lines Monitor reduction of pipe wall thickness at top, sides, and bottom locations along the pipes Solution: Initially Twelve (12) Measurement Locations Four (4) M2 Sensors per TML 18 Mtr Extension Cable wired back to Data collection post Manual DL2 Datalogger Configuration: Measurements made manually as per customer’s required time frames Data stored on DL2 Data analyzed via downloading DL2 to customer’s PC w/ supplied software Value and cost saving: Covered known & suspected corrosion locations Long Design/Performance Life Inexpensive: Met Customer’s Needs Met Political & Regulatory issues/concerns M2 sensors Natural Gas Pipeline

Subsea Direct Radiography Development Project

Subsea Direct Radiography Project Corrosion/Erosion ROV or diver deployed Now rated to 1800ft (600m) Planned 9000ft (3000m) All trials completed First inspection Oct 2011

The Power of Digital Data

Rhythm - Turning information into intelligence Rhythm ReportRhythm Archive LAN Consistent Quick Reports LAN Capture, share, analyze, report, and archive digital inspection information Data Storage & Enables Trending Rhythm Review Remote Review & Analysis Rhythm CR Rhythm UT Rhythm Visual Rhythm DR Multi-Modality Platform

GE Proprietary Information Subject to restrictions on the cover or first page Sharing RT and UT Images in Rhythm

GE Proprietary Information Subject to restrictions on the cover or first page Inspect Review Report Archive Share DICONDE “One standard = One platform” Common Rhythm Platform