Jan , 2008 Certification of Oil & Gas Installations Mechanical Integrity of Ageing Pipelines Eckhard Hinrichsen, GLO Mexico

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 2 Contents 1.Certification of Oil & Gas Installations 2.Pipeline Services 3.Mechanical Integrity Certification 4.Benefits of Certification

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 3 CERTIFICATION of newbuilding projects In particular offshore installations and pipelines Large-scale projects in conjunction with the operators of oil and gas fields Offshore and onshore installations (e. g. platforms, petrochemical installations, storage tanks) Pipelines – offshore and onshore GL Industrial Services – Oil and Gas

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 4 GL Industrial Services – Oil and Gas Inspection of materials and components Evaluation and selection of manufacturers. Supervision of the fabrication process of manufacturers and suppliers, inspection and performance assessment before dispatch. Advice regarding facilities in operation Maintenance advice Risk analysis, risk-based inspection (RBI) Reliability centred maintenance (RCM)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 5 Certification/Verification Services Accreditations  Founding Member of IACS (Intern. Association of Classification Societies)  Germany: Technical Expert Organisation for the German Authority for Pipelines (Mining Authority)  Mexico : Accredited Verification Unit for Gas Transport Pipelines, Gas Distribution, LNG Terminals, Pressure Vessels, Environmental (EMA)  Canada: Canada Oil and Gas Operations Act, Canada Offshore Certificate of Fitness Regulations, Nova Scotia Offshore Certificate of Fitness Regulations, Newfoundland Offshore Certificate of Fitness Regulations (soon to be rectified).  various other accreditations worldwide

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 6 Certification - Project Phases: Certificate of Fitness Extension of Certificates Development Studies Appraisal Design Certificate Basic Design Mat./Equip. Certificate Inspection Procurement Mat./ Equipment Lifetime Periodical Inspection Operation Supervision Detail Design Installation Certificate Construction Surveillance Planning Appraisal

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 7 Activities Appraisal of basic and detail design  Structures and foundations  Plant layout (overall and detailed)  Process and utility systems  Safety systems Deliverables: Design Certificates Independent Analysis  Strength analysis  Fatigue analysis  Fracture mechanics analysis  Temperature distribution analysis Deliverables: Reports

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 8 Activities (cont.) Source Inspection  Material inspection  Inspection of components and systems Deliverables:Inspection Reports, Inspection Certificates, Release Notes, Material Certificates Site Surveillance  Inspection during erection/installation  Witnessing/monitoring of commissioning  Witnessing of tests (load, function, performance etc.) Deliverables:Progress Reports, Installation Certificates

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 9 Activities (cont.) HSE (Health, Safety and Environment) - Services  Risk and reliability assessment  Environmental pollution prevention  Noise and vibration analysis  General Safety Consultancy, incl. Safety Management Systems Deliverables: Reports and Studies, Integrated Safety Certificate Development and Updating of Rules, Regulations and Guidelines

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 10 Activities (cont.) In-Service Inspection  Condition surveys  Periodical inspections  Maintenance management support  Loss prevention consultancy  Damage and repair assessment Deliverables:Reports and Studies

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 11 Summary: Certification of Oil & Gas Inst. Concept was developed in the early 70´s in the UK Focus on Technical Safety and Integrity Applies to all Phases of a Project and the Lifetime of the Installation (“cradle to grave”) Performed by larger IACS Members (ABS, BV, DNV, LR, GL) In the UK the concept was modified to “Verification” following the Piper Alpha accident (post Cullen)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 12 Contents 1.Certification of Oil & Gas Installations 2.Pipeline Services 3.Mechanical Integrity Certification 4.Benefits of Certification

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 13 Principal Pipeline Services  Certification of New Pipelines  Re- Certification of existing Pipelines  Certification of Mechanical Integrity (existing Pipelines)  Special Services during Operational Phase

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 14 Certification of New Pipelines Typical Scope of Work  Design Appraisal (FEED, Basic, Detailed)  Inspection of Materials and Components  Construction Surveillance  Witnessing of all Tests  Issue Certificate and Final Report

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 15 Welders Qualification Tests

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 16 Supervision during Construction

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 17 Witnessing of Hydrostatic Pressure Tests

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 18 Certificate Certificate of Safe Operation Issued if critical risks are not existing or are controlled Certificate is valid together with: Final Report and its qualifications Attention to Open Items as agreed Annual Inspections by GL

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 19 Re- Certification of existing Pipelines Re-Certification - Strategy to ensure the Reliability of Transportation

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 20 Pipeline Age - Probability of Failure during Pipeline Operation (Typical) Sections or components of a pipeline are subject to ageing or damage accumulation effects. Latest by reaching of the design lifetime these effects typically are resulting in an increase of probability of failure. Typical Development of Failure Probability

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 21 Consequences of Failure Damage Potential of a Gas Pipeline High combustion energy in natural gas pipelines Example : 40" x 500 km Pipeline, packed to 100 bar Combustion energy released in case of ignition: Approx. 450 mil kWh (enough energy for 7000 households for one year)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 22 Gas explosion caused by charged soil (15 m x 34 m) due to corrosion

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 23 Re-Certification - Strategy to ensure the Reliability of Transportation Basic Steps  Hazard Identification Procedure  Assessment Concept  Inspection Programme  Assessment of Inspection Results  Rehabilitation Programme  Certificate  Re-Arrangement of Inspection Programme

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 24 Hazard Identification Procedure  Structured review and audit  Clients operational and safety personnel will be fully involved  Identifies section per section the specific reasons for possible failures and the consequences.  First-hand information is obtained on: - design - construction - operation  Standard questionnaires and consistent analysis will be used.

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 25 GroupInitiated by Hazard External InterferenceConstruction work Traffic load Sabotage Agricultural work Natural HazardsEarth movement Flooding Earthquakes OperationExternal corrosion Internal corrosion Erosion bacterial corrosion Fatigue (typically liquid lines) HAZard IDentification Procedure Hazards (typical)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 26 Onshore Gas Pipelines Western Europe, Causes for Leaks ( ) Source: EGIG-02, data period % external interference 17% construction and material defects 15% corrosion 7% ground movements 5% hot tap error 6% other

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 27 Assessment Concept A concept to assess the relevant types of damage should be defined.  The concept will include at least: - Aims for the assessment and rehabilitation of the pipeline (pressure, safety level, risk level, pressure up rating) - Methodology incl. references to accepted standards - Acceptance criteria for damage - Specification for inspections (damage type, threshold, accuracy)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 28 Assessment Concept (condt.) Outcome: Specification for Inspections Definition of Inspection Aims  Shall detect or exclude the RELEVANT damages as identified by earlier HAZID  Shall identify clearly certain critical types of damage  Shall be able to detect the full extend of damage  Inspection results shall be validated

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 29 Inspection Programme  Input: Specifications out of the assessment concept  Considering ALL possible inspection methods: Visual, External NDT, Intelligent Pigs (ILI), Re-Hydrotest, …  Inspection shall be RELEVANT to the known and pre-assessed condition  Inspection programme shall consider the results of earlier inspections  Benefit: Gives a detailed input for inspection tender(s).  Benefit: Can be used as a basic maintenance programme

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 30 Assessment of Inspection Results  Witnessing of essential points of inspections  Review of inspection reports  Verification of inspection results  Estimation of damage growth (e.g. corrosion rate)  Repair of critical defects; maintenance of safety relevant systems – Under GL Surveillance  Rearrangement of inspection programme specific to the pipeline

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 31 Certificate Certificate of Safe Operation or Mechanical Integrity Issued if critical risks are not existing or are controlled Certificate is valid together with: Performance of inspection programme Assessment of inspection results Completion of Rehabilitation programme Re-arrangement of inspection programme

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 32 Added Value from Re-Certification  Independent consultancy on each aspect of pipeline integrity  Technical input with international background and experience  Independent consultancy on inspection programme (e.g. in-line inspection and alternatives)  Recommendations for maintenance (inspection and rehabilitation) after issue of certificate  Ensure the safe operation of the Pipeline and reliable supply of gas to the consumer (RELIABLE PERFORMANCE )

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 33 Conclusions  Initial hazard assessment ensures a Overall view on the pipeline safety  Certification programme allows to start quickly with an easy methodology for assessment of pipeline integrity.  Assessment concept is open for all recognized methodologies like  Deterministic assessment  Probabilistic analysis  Risk analysis  Corrosion studies  Impact studies

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 34 Special Services during Operation Phase  Feasibility study on up rating UP rating from 70 to 84 bar 100 km, 30”, North Germany  Risk management Risk analysis of a 2800 km long pipeline network  Damage analysis  Engineering critical assessment (ECA) Assessment of weld defects using advanced fracture mechanical methods

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 35 Special Services during Operation Phase  Corrosion assessment Analysis of data from various corrosion inspections Determination of high priority rehabilitation tasks Analysis of corrosion processes Calculation of remaining lifetime  Technical Audits Camisea Pipelines, , on behalf of Peruvian Government  Risk Analysis (quantitative or qualitative)  RBI / AIM Implementation for your Pipeline GALIOM - GLO´s AIM Solution

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 36 Contents 1.Certification of Oil & Gas Installations 2.Pipeline Services 3. Mechanical Integrity Certification 4. Benefits of Certification

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 37 Certification of Mechanical Integrity General Concept Provide to the Owners/Operators of the pipeline an independent review, verification and supervision of all aspects of a pipeline inspection and rehabilitation project. Focus on Mechanical Integrity and Technical Safety GLO will act as an Independent Third Party to ensure that the required and uniform Level of Safety among all contractors will be achieved

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 38 Proyecto sin Certificación CRITERIO DE SEGURIDAD PROCURACONSTRUCCIÓN FASES DE UN PROYECTO I P C : INGENIERÍA OPERADOR FIRMAS DE INGENIERÍA PROVEEDORES CONTRATISTASDECONSTRUCCIÓN NIVEL DE SEGURIDAD SUBCONTRATISTAS Proyecto sin Criterio Uniforme con sin NIVEL DE SEGURIDAD OPERADOR FIRMAS DE INGENIERÍA PROVEEDORES CONTRATISTAS DE CONSTRUCCIÓN SUBCONTRATISTAS FASES DE UN PROYECTO I P C : INGENIERÍA PROCURA CONSTRUCCIÓN Proyecto con Criterio Uniforme ALARP ALARP

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 39 Certification of Mechanical Integrity Basic Steps (1) Documental Review Design docs., Operational History, Maintenance Records, previous Inspection Results, … Witnessing of ILI runs Review of Inspection Results Review of Mechanical Integrity Analysis of Contractor, independent Analysis

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 40 Certification of Mechanical Integrity Basic Steps (2) Verification of Results in Field (manual UT)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 41 Certification of Mechanical Integrity Basic Steps (3) Supervision of Repairs

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 42 Certification of Mechanical Integrity Basic Steps (4) Inspection of condition of above-ground Installations

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 43 Certification of Mechanical Integrity Basic Steps (5) Witnessing of all tests: Pressure tests Characterization of Materials Coating tests …

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 44 Certification of Mechanical Integrity Basic Steps (6) Final Report Certificate of Mechanical Integrity Valid for 3 to 5 years

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 45 Applicable Codes & Standards ASME B31.4, B31.8 ASME B31.3 ASME B31G, B31G mod. RStreng, Kastner (exceptions) API (as applicable) DNV, GLO Offshore Pipeline Rules (if applicable)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 46 Certification of Mechanical Integrity References & Examples of current projects with PEMEX in Mexico

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 47 Current Projects with PEMEX Refinación Inspección y Rehabilitación Poliducto de 12” Madero-Linares y 10” Linares-Cadereyta (Rosen) Poliducto de 12” Guaymas-Obregón (Tuboscope) Poliducto de 12” Cangrejera-Minatitlán (Tuboscope) Oleoducto de 24” Madero-Cadereyta (Rosen) Poliducto de 14” Satélite-Gómez Palacios (Rosen) Oleoducto de 30” Nuevo Teapa-Salina Cruz (Tuboscope) Poliducto de 8” Cangrejera-Minatitlán (Tuboscope) Poliducto de 8” Guaymas-Hermosillo (Tuboscope) Inspección Oleoducto de 30” Nuevo Teapa-Venta de Carpio, Tramo Maltrata-Sn Martín Texmelucan, (Tuboscope) Rehabilitación Ducto de 30” Nuevo Teapa-Poza Rica (UAM-GL) Fuga en Sección Rehabilitada Poliducto de 14” Satélite-Gómez Palacios (Rosen)

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 48 Poliducto de 12” Guaymas-Obregón (Tuboscope). GL Orden: Inspección y Rehabilitación

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 49 Contents 1.Certification of Oil & Gas Installations 2.Pipeline Services 3. Mechanical Integrity Certification 4. Benefits of Certification

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 50 Benefits of Certification Independent and Impartial Review and Supervision of all phases and aspects of a rehabilitation project Ensures a unified level of safety across all contractors Experienced and qualified personnel, backed up by our Head Office (800+ engineers) Worldwide experience from similar projects will be applied Documented and auditable safety Shared Responsibility

America´s Workshop - EH Certification, Pipelines | Jan , 2008 | No. 51 Thank you for your attention!