IMPLEMENTATION OF A GLOBAL RBI STANDARD EXPERIENCES AND CHALLENGES

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IMPLEMENTATION OF A GLOBAL RBI STANDARD EXPERIENCES AND CHALLENGES Maintech-konferansen 2016 Trondheim 30.03.2016 Roar Bye, Teekay Offshore Production

Topics Teekay Offshore Production Background The Ambition The Contract (SoW/contract strategy/organization) Experiences Piranema Spirit a case Looking forward & Key Success Factors 2

Teekay Offshore Production TOP 3

Our Fleet Solid Customers Portfolio TEEKAY OFFSHORE AT A GLANCE $ 30+ Years of Experience 60+ Offshore Vessels 2000+ Employees 7 Offices Europe, Canada, Brazil, Philippines 4

11 FPSO units Largest independent operator of FPSOs in the North Sea 30+ years of experience Growing presence in Brazil Potential to competitively pursue FPSO projects anywhere in the world Petrojarl Foinaven (BP) Petrojarl Knarr (BG Norge) Petrojarl Varg (Talisman) Piranema Spirit (Petrobras) Petrojarl Cidade de Rio das Ostras (Petrobras) Petrojarl Banff (CNR) Voyageur Spirit (E.ON) Hummingbird Spirit (Centrica Energy) Petrojarl Cidade de Itajai (Petrobras) Petrojarl I* (QGEP) Libra** (Petrobras) (*upgrade ongoing) (**under conversion) 5 5

Background 6

Teekay Petrojarl 2011 RBI Contractors Petrojarl Banff (CNR) Petrojarl Foinaven (BP) Petrojarl Knarr (BG Norge) Petrojarl Varg (Talisman) Sevan Voyageur (E.ON Ruhrgas) Petrojarl I (StatoilHydro) Sevan Hummingbird (Centrica Energy) Petrojarl Cidade de Itajai (Petrobras) Petrojarl Cidade de Rio das Ostras (Petrobras) Sevan Piranema (Petrobras) 7

Asset Integrity Management in TOP Corrosion Management Corrosion management shall be addressed in all design phases and follow the sequence: Material selection Surface protection Internal surface protection Chemical treatment Monitoring (instrumentation, laboratory sampling, observations) Inspections (RBI) 8

The Ambition 9

The Ambition Establish a global TKPJ standard for Risk Based Inspections and handling of anomalies. Establish and implement best practice of integrity management of topside process plant (pipes and drums) Reduce risk of loss of containment and possible major accidents (ALARP) Establish a web based arena that encourages experience transfer across units and full transparency of integrity status Establish a partnership with a global RBI services supplier that has the same level of ambition wrt. operational excellence Establish a long long-term integrity focus in accordance with authorities expectations for long term integrity management of ageing units 10

The Ambition Oceaneering approach to Global RBI Contract Comprehensive and consistent service across the fleet and all locations Increased reliability and predictability in performance, risk and safety Access to global support and capability Cross fleet knowledge and experience transfer Enhanced vessel lifetime planning 11

The Contract (SoW/strategy/ organisation) 12

The contract SoW and strategy Scope of Work Contract startup Familiarisation, RBI analysis (initial and detailed), start-up and handover Onshore work RBI analysis (annual update) Inspection planning Reporting Support to TKPJ Operation (meetings etc.) Compensation Lump sum One-off payment Lump sum Annual payment Long term integrity management Offshore Work Inspection Reimbursable By the hour 13

The contract organisation (R&Rs) Contract Owner TOP contract Holder OAI Contract Holder Quality, standardisation, working principles, alignment TOP Technical Authority Integrity Engineering OAI Senior Corrosion Engineer/ OAI Senior Inspection Engineer Single point of contact - FPSO level TOP Maintenance Superintendent OAI Asset Responsible Inspection execution Fixed rotation Campaigns 14

Our Experiences 15

Experiences Documentation gathering and hand-over availability, traceability, quality, lack of, inconsistence in data/documentation No complete RBI or inspection history from incumbent contractors were handed over for any of the FPSOs Underestimation of complexity and workload of simultaneous operation support and establishment of RBI system Access to docs, data extraction, QA/QC 16

Experiences, cont. Steep learning curve for TOP: Integrity management capacity and competency (corporate and asset level) Governing documents revised during start-up o o o RBI procedure Anomaly management Document management 17

Experiences, cont. Rules and legislations differ from North Sea to Brazil E.g. NR-13 Inspection regime is different between NCS and UKCS: Offshore Inspection Engineer NDT Technician UK QA formal processes (Senior endorsement) Contract interpretations underestimated by both TOP and Oceaneering 18

Piranema Spirit a case 19

Piranema case preferential weld corrosion 20

Piranema case Weld repair project Welds inspected: ~ 1250 inspections Mainly phased array Radiography Repairs: Total: 256 welds o o 54 spools - 22 lines Pressure vessels 21

Looking forward & Key Success Factors 22

Improvement areas - TOP Review of: Governing documents RBI analyses Inspection Program/Plans Establish Global TOP RBI Forum Key personnel onshore and offshore Contract understanding Governing documents awareness Global RBI Workshop Key personnel in Oceaneering and TOP 23

Facsimile from DN 14.03.2016 24

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RBI Web page one stop shop 26

Barrier dashboard 27

Safety Case Monitoring Assurance Activities MAH s Asset Teekay Offshore Management Process Verification Scheme/ Performance Standards Barrier Strategy Safety Critical Elements Register 28

Key success factors Quality we never compromise on integrity Transparency close the loop Communication and alignment common understanding of the issues Efficiency remember the R in RBI 29

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