AN INNOVATIVE APPROACH TO MANAGING THE INTEGRITY OF OIL AND GAS PIPELINES: PIPELINE INTEGRITY MANAGEMENT SYSTEM

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Petroleum & Coal ISSN 1337-7027 Available online at www.vurup.sk/petroleum-coal Petroleum & Coal 54 (1) 1-8, 2012 AN INNOVATIVE APPROACH TO MANAGING THE INTEGRITY OF OIL AND GAS PIPELINES: PIPELINE INTEGRITY MANAGEMENT SYSTEM M. A. Usman 1 * and S. E. Ngene 2 1 Department of Chemical Engineering, University of Lagos, Akoka, Lagos, Nigeria 2 Department of Petroleum Resources, Lagos, Nigeria, *corresponding author: mawwal04@yahoo.com; musman@unilag.edu.ng Received August 17, 2011, Accepted January 5, 2011 Abstract In the oil and gas industry, management of the integrity of pipeline has grown to become a serious business because of the overall consequence of pipeline failure: economic, social, environmental, and possibly legal. This research is an attempt to check pipeline failures by carefully following a suite of activities. This suite of activities, also called Pipeline Integrity Management System (PIMS), is generated for an operational pipeline and populated with data gathered on the pipeline system. An analysis of the data collected on the pipeline over a period of five years indicates improved monitoring, reliability, availability, and compliance to regulatory guidelines in the operation of the pipeline systems. Key Words: Pipeline; Failure; Integrity; Management; System. 1. Introduction In the past, management techniques for pipelines were minimal. In general, pipelines were typically not maintained regarding their structural integrity until a failure occurred, at which time either the failed section, or the entire pipeline would be replaced. These pipelines may have been inspected at planned outages, at which time obvious problems were typically repaired. Systematic methods of managing pipe, pipelines, or pipe systems were not used to anticipate failures and attempt to conduct preventive maintenance or replace the pipe before failure occurs [1]. The approach of fixing the pipeline when it fails may not be acceptable in cases where burst of pipe may lead to huge to property or injury to people, or where loss of the fluid would have deleterious environmental consequences. The upward and continuous surge in the cost of energy will also compel the operator to make appropriate plans to avoid production down time due to pipeline failures. A pipeline integrity management program is needed for these pipeline systems to increase their reliability and availability, and to ively manage and minimize maintenance, repair, and replacement costs over the long run. Pipeline Integrity Management System is an innovative approach to generate a suite of activities required to properly manage pipeline assets so as to deliver greater safety by minimizing risk of failures, higher productivity, longer asset life, increased asset availability from improved reliability, lower integrity related operating costs, and ensure compliance with the regulations. Pipeline Integrity Management Systems are developed to serve unique operational needs peculiar to particular pipeline system. For new pipelines systems, the functional requirements for integrity management shall be incorporated into the planning, design, material selection, and construction of the system. However, for pipelines which are already in operation, the integrity management plan is drawn after baseline assessments and data integration. An integrity management program provides the operator with information to ively allocate resources for appropriate prevention, detection and mitigation activities that will result in improved safety and reduction in the number of incidents [2].In the development of the Pipeline Integrity Management Systems, the integration of information from some relevant sources with the evaluated results of integrity assessment on the pipeline system is necessary. The operator will normally use a risk-based approach in prioritizing repair and maintenance activities, and thus the need to identify the location, nature and relative risk of features that could threaten the integrity of each pipeline segment

beforehand. In Nigeria s oil and gas industry, the development of a plan for the maintenance of the pipeline system is a requirement for the grant of Oil Pipeline License to the pipeline system. On this instance, the Pipeline Integrity Management System is preferred to any other form of plan: it has the capacity to manage all known type of operational difficulties with pipeline failures. 2. Methodology 2.1 The Pipeline System M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 2 This work relied on System A (Table 1), a major crude oil export pipeline, to show the iveness of the Pipeline Integrity Management System (PIMS) in providing availability, reliability, and regulatory compliance for oil and gas pipelines. The pipeline system was commissioned in 1971 with a crude oil export capacity of 550 Kbpd and had operated till 2005 without a formal integrity management plan. External corrosion, internal corrosion, and fatigue cracking were the most likely deterioration mechanisms for this pipeline system. CO 2 and Sulfate Reducing Bacteria (SRB) are the key internal corrosion agents. Stagnant water is swept from pipeline by high flow rates thus making water unavailable to sustain SRB growth. 2.2 The Process The process could be summarized in the chart below: Identifying Potential Impact by Threats Gathering, Reviewing, and Integrating Data Risk Assessment No All Threats Evaluated? Yes Integrity Assessment Responses to Integrity Assessment and Mitigation Fig. 1 Integrity Management Process Flow Diagram [2]. Based on the Chart above, the following tools were generated for the pipeline: i. Segment Data for System A (Table 1) shows the necessary pipe attributes, design and construction information as well as some vital operational data. These information are required to fully define System A. ii. Integrity Assessment Plan (Table 2) which is focused on the major threats on the system: external corrosion, internal corrosion, fatigue cracking, and to a lesser extent third party. Operational information and regulatory compliance were used as guides in determining integrity assessment intervals for the identified threats. Mitigative measures suggested were also dependent on the outcome of the assessment and are as stated in the plan. The Failure Mode and Effect Analysis (FMEA) is evaluated using the Risk Matrix in the Appendix B. The Likelihood of Occurrence (LOO) and the Consequence of Failure are obtained from the Risk Matrix and recorded on the MRP. iii. Maintenance Reference Plan (Table 3) activities are scheduled with keen interest on checking external corrosion, internal corrosion, and 3 rd party s [4]. CO 2, H 2 S, and SRB are key internal corrosion agents and thus were be properly monitored through the plan to ensure reliability and availability of the pipeline system. Pigging, CP installation and upgrade, inhibition, and other corrosion control activities are included in plan [3,4]. iv. The Integrity Verification Plan (Table 4) considered a five-year review period for the system (2005 2009). The Technical Integrity Indicators and Performance Indicators (PI) for the various activities were calculated and recorded to indicate the integrity

status of the pipeline and the degree of execution of the prepared MRP. The overall integrity of the pipeline indicates that it is still fit for purpose at its de-rated operating pressure of 400 psi. v. The performance Measurement Plan (Table 5) shows a 5-year plan which could lead to verifiable deductions that PIMS leads to improved monitoring and management of the system s failures and repairs. There is marked reduction in failure rates, leaks, and volume of fluid spilled and subsequently the total number of repairs but an increase in the percentage of planned of planned activities completed as well as action that impacted safety as the year progressed. 3. Results M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 3 The summary of the recorded of PIMS is shown in the table below: Indices for Evaluation Year 2000 2005 2006 2007 2008 2009 Volume of Fluid Spilled (Barrels) 4000 2400 1100 600 400 100 Repair Actions due to Direct Assessment Results Leaks due to Pipeline Failures (willful not included) Actions Completed which Impact on Safety Anomalies Found Requiring Mitigations 3 7 6 5 4 2 4 2 1 1 1 1 1 4 6 9 10 12 12 8 7 6 5 4 4. Conclusions The current continuous and sustained increase in the price of steel has placed the cost of steel pipes in international markets in a continuous hike and thus the reason for series of cost reviews in most recent pipeline projects. The availability and reliability of pipelines for operations are threatened by pipeline failures. Environmental degradation due to spills from line failures has also created a regulatory demand for new and operating pipeline systems to be appropriately monitored. These are obvious reasons why generation and implementation of Pipeline Integrity Management System for oil and gas pipelines is necessary. This research work generated Pipeline Integrity Management Systems for System A, an operating pipeline system. The iveness of PIMS was monitored over five years period using the information from the operating System A whose operator has been taking some actions considered components of PIMS in the last six years to ensure reliability and availability of the pipeline. Evaluation of the results generated from the PIMS for the operating pipeline system using the review period indicated improvement on the threat situation and failures observed as the years progressed. This corresponds to decrease in anomalies requiring repairs not minding that the pipeline system is already past its design life. It is an indication of how important PIMS is to the life of an operating pipeline. In all, PIMS has been found to be ive tool for resources allocation in the prevention, detection, and mitigation activities that will lead to improved safety and reduction in the number of incidents on pipeline systems. References [1] Pittalwala, S.H and Wittas, D. J (2006) System and Method for Pipeline Reliability Management Patent No: US 7,043,373 B2. [2] ASME B31.8s (2001). Managing System Integrity of Gas Pipelines Supplement to ASME B31.8. [3] Mobil Producing Nigeria Unlimited (2008): Presentation to Department of Petroleum Resources (DPR) on Critical Crude Pipeline Segments Replacement. [4] Shell Petroleum Development Company of Nigeria Limited (2006): A Presentation to the Department of Petroleum Resources on PIMS Engagement. [5] API Recommended Practice 1160: Managing System Integrity for Hazardous Liquid Pipelines First Edition (August 2001).

APPENDIX A Table 1 Segment Data for System A Segment Data Pipe Attributes Design/Construction Operation Table 2 Integrity Assessment Plan Type Pipe Grade API 5L X60 Nominal Diameter 42 Wall Thickness 12.7mm Manufacturer N/A Date of Manufacture N/A Seam Type Spiral Welded Operating Pressure 280 psi Design Pressure 720 psi Coating Type Coal Tar/Cement Coating Condition Good Pipeline Commission Date 1971 Joining Method Electric Arc Process Medium Type Offshore Hydrostatic Test 890 psi Design Temperature 0-80 o C Process Fluid Temperature 25 o C Crude Quality o API=36.8 Flow Rate 550 KBPD Planned Repair Method Replacement Leak/Rupture History 3 rd Party Damage / Corrosion Cathodic Protection Sacrificial Anode SCC Indications Yes Threat Criteria/Risk Integrity Mitigation Interval Assessment Assessment External Corrosion Conduct Replace / Repair hydrostatic Some external locations where test or perform corrosion observed CFP is below Direct 1.25 x MAOP. Assessment 10 Years Internal Corrosion Internal corrosion is Conduct in-line suspected inspection -do- 5 Years Fatigue Cracking Potential concern for fatigue cracking of Conduct hydrostatic Replace / Repair pipe at failure 10 Years spiral weld pipe test locations Manufacturing No Manufacturing issues -do- -do- N/A Construction/Fabrication No Construction/ Fabrication issues None Required N/A N/A Equipment No Equipment issues -do- -do- -do- Conduct Third Party Damage hydrostatic After every 3 rd test, perform Replace / Repair party is repair/replace ILI and pipe at failure observe ment due 3 rd observe locations repaired locations Incorrect Operations No incorrect operation issues None required N/A N/A Weather & Outside Force M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 4 No Weather/Outside Force issues -do- -do- -do-

M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 5 Table 3 Maintenance Reference Plan Line System A Export Pipeline Pacer ID SYS A 003 Dia ( ) 42 Service Oil Installation Date 1971 Environment Offshore MRP Review Date Failure Mode and Effect Analysis Failure Mode LOO COF Remarks External Corrosion M 5 Line Blockage (Sand) L 4 Line Blockage (Scale) L 4 3 rd Party Damages M 5 Internal Corrosion H 5 Line Piggability (Y/N) Yes Last IP ( 2005 ) Next IP (2010 ) No Last UT ( ) Next UT ( ) MRP Activities No Activity Title Frequency Comment 001 Offshore CP Potential profile and anode condition survey Six Monthly Replace missing / faulty anodes 002 Offshore CP shore approach -dosurvey 003 Offshore risers CP survey -do- 004 Offshore riser coating survey Annually 005 Offshore line position survey -do- 006 Non-supported span survey 5 Yearly 007 Routine pigging Monthly Debris > 0.5 kg; Mechanical de-scaling before IP. 008 Non-routine pigging As Required 009 Third party Monthly 010 H 2 S Monitoring (MIC) Six Monthly H 2 S and ph Measurement 011 Biocide Treatment & Bacteria -do- Check iveness on SRB Count 012 Water Chemistry Six Monthly 013 CO 2 corrosion rate prediction -do- 014 Oxygen Ingress Control As Required 015 Acid Corrosion Control -do- ph check 016 H 2 S Monitoring (Sour Service) Six Monthly 017 Impingement /Erosion Monitoring As Required 018 Intelligent Pigging 5 Yearly 019 ROW Surveillance & Maintenance Quarterly 020 Valve Maintenance Annually 021 Inspection of offshore manifolds -doand piping 022 CP System Upgrade -do- Follow the recommendation of CP System Audit 023 Pipeline equipment condition Annually survey maintenance 024 Operational Control As Required 025 Manifold painting 5 Yearly 026 Corrosion Inhibition As Required 027 Corrosion Monitoring Six Monthly 028 Protection of Mothballed pipelines -do- 029 CP System Audit -do-

M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 6 Table 4 Integrity Verification Plan Line 42 System A Export Pipeline Wall Thickness (mm) 12.7 0 Pacer ID SYSB 03 Coating Coal Tar /Concrete Diameter ( ) 42 Service Oil Length 35.00 Commissioning Year 1971 (Km) Environmen t Offshore Grade API 5L X60 Reviewer SN Third Party Technical Integrity Indicator PI Comments Period Sabotage Mech. Damage 09/04-4 1 70% 08/05 09/05-3 1 60% 08/06 09/06-2 0 50% 08/07 09/07-2 1 60% 08/08 09/08-08/09 2 1 60% Internal Corrosion External Corrosion Technical Integrity Indicator Last IP 2005 Comments Year Repairs MRP Yes/No PI 2005 3 CO 2 Meas. Y 100% 2006 2 H 2 O Chem N 0% 2007 2 H 2 S Check Y 50% 2008 1 ph Check Y 60% 2009 1 Biocide Y 75% Treatment Bacteria Y 50% Count Sampling Y 100% Inhibition Y 75% Technical Integrity Indicator Comments Year Repairs MRP TII PI 2005 0 CP main 75% stations 2006 2 Test post 100% checks 2007 0 CIPS 50% 2008 1 CP Audit 50% 2009 1 Riser 75% Survey Coating 100% Survey Operational Error During period of review four (4) None ancillary equipment failures occurred Failure of Ancillary Equipment Overall Integrity Status The pipeline which has been de-rated to 400 psi is still fit for purpose.

M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 7 Table 5 Overall Performance Measurement Plan S/ Description 2005 2006 2007 2008 2009 N 1 Km of pipeline inspected Vs Integrity 40% 50% 70% 80% 85% Management Program requirement 2 Integrity Management Program Changes 8 5 3 2 1 requested by authorities 3 Percentage of planned activities 40% 55% 70% 75% 80% completed 4 Fraction of the system included in 0.4 0.5 0.7 0.8 0.85 Integrity Management Program 5 Actions completed that impact safety 4 6 9 10 12 6 Anomalies found requiring repairs / 8 7 6 5 4 mitigation 7 External corrosion leaks 2 0 1 0 0 8 Internal corrosion leaks 3 2 2 1 0 9 Leaks due to equipment failures 2 1 1 1 1 10 Leaks due to third party 3 4 4 2 2 11 Leaks due to manufacturing defects 0 0 0 0 0 12 Leaks due to construction defects 0 0 0 0 0 13 In-service Leaks due to stress corrosion 1 0 0 0 0 cracking 14 Repair actions taken due to In-Line 0 0 0 0 0 Inspection results 15 Repair actions taken due to direct 7 6 5 4 2 assessment results 16 Hydrostatic test failures caused by 0 1 0 0 0 external corrosion 17 Hydrostatic test failures caused by 3 2 2 1 0 internal corrosion 18 Hydrostatic test failures due to 0 0 0 0 0 manufacturing defects 19 3 rd Party events detected 3 2 4 2 3 20 Unauthorized crossings 2 0 0 1 0 21 Precursor events detected 1 2 3 3 4 22 ROW encroachments detected 1 2 2 3 2 23 Re-rating of pipelines 0 1 0 0 0 24 Segments with deeper pitting than 0 0 0 0 0 before 25 Volume of fluid spilled 2,400 1,100 600 400 100

M. A. Uman, S. E. Ngene/Petroleum & Coal 54(1) 1-8, 2012 8 APPENDIX B Risk Matrix for Pipeline Systems Severity People CONSEQUENCES Assets Environment Reputation INCREASING LIKELIHOOD A B C D E Never heard of in the industry Heard of in the industry Incident has occurre d in our compan y Happens several times per year in our company Happens so many times a year in a location 0 No health / injury No No No impact 1 2 3 Slight health / injury Minor health / injury Major health / injury Slight Minor Localise d Slight Minor Localised Slight impact Limited impact Considerabl e impact Low Risk Medium Risk 4 PTD or 1 to 3 fatalities Major Major National impact 5 Multiple fatalities Extensiv e Massive Internation al impact High Risk Note: The Risk Matrix has three (3) risk classes: Low (L), Medium (M), and High (H). The Likelihood of Occurrence (LOO) uses these 3 classes of risks.