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RISK-BASED ASSET INTEGRITY MANAGEMENT FOR OFFSHORE FLOATING FACILITIES IN MALAYSIA
Abstract and Figures
In today's competitive market asset integrity is a main concern to all enterprises especially for asset intensive offshore industries. For this purposes, the study was focussed to identify measureable asset integrity performance indicators, find the trend and gap of asset integrity practices within the industries and application to determine assets' integrity performance for offshore floating facilities. The study first discusses the general asset integrity management followed by requirements for performance indicators and its significance to offshore industries. Literature review revealed that the performance of asset integrity has not reached satisfactory level as the repeated incidents occur one after another in the offshore industry. As a result, the organisation requires a comprehensive set of appropriate indicators' scheme and quantification technique such as a hierarchical framework which link to the organisation's ultimate strategic goal for ensuring asset integrity. This framework uses analytical hierarchy process (AHP) to quantify the risk information through the standardisation of weight indicators and the aggregation. A study to quantify the condition of assets of five offshore floating facilities through leading and lagging indicators in hierarchical structure was conducted. The estimated index values determine the condition of the asset based on the performance risk index scale. Finally, the study concluded that the indicator system can provide a comprehensive view on portfolio of offshore asset health status, lead to the further consideration and trends monitoring for decision-making processes.
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... ; Article no.JERR.64283 system comprising for instance structures, piping ipment (19,20]. ...
Asset integrity is closely intertwined with process safety where the latter is often perceived to be equivalent or a subset of the former. In Malaysia, the requirements for offshore process safety are set by Petronas assuming exclusive rights to petroleum in the nation. It imposes and enforces these requirements on oil and gas companies entering into its production sharing contracts via the common law. Process safety management in Malaysia is strongly influenced by the US OSHA 3132 with elements comprising process safety information, process hazard analysis, operating procedures, employee participation, training, contractors, pre-startup safety review, mechanical integrity, hot work permit, management of change, incident investigation, emergency planning and response as well as compliance audits. These elements are largely included in the Mandatory Control Framework of Petronas and the trio of design, technical and operating integrity adopted in the process safety management of other oil and gas companies. These management practices align with the reiterative plan-do-check-act model. Process safety performance is also gauged with indicators suggested by international institutions such as the American Petroleum Institute. On top of the Control of Industrial Major Accident Hazards Regulations 1996 for onshore processes, this study deems that establishing statutory law for offshore installations will be beneficial to propel offshore safety in Malaysia to a greater height.
... Conventionally, the Malaysian oil and gas companies determine compliance level of an indicator by comparing its achievement against a performance target or standard set. While it is common that performance targets may differ among companies, the methods used for compliance determination may also differ (Hassan and Abu Husain, 2013). In such practices, indicators are often treated as having equal weight though in reality, it is likely that safety indicators will have different weights due to the difference in their importance (Ratnayake, 2012). ...
... Nonetheless, recommended practice does not include an illustration on severityweighted metric as in the CCPS guideline Asset integrity Hassan & Khan, 2012 This study proposes an asset integrity index to assess and monitor the three domains of asset integrity of process facilities, i.e. process, mechanical and personnel. The index is based on leading and lagging indicators and is presented in the form of risk metric Lauder, 2012 This paper presents a list of performance indicators commonly used to monitor major hazards in the UK offshore petroleum sector and provides a description of the KPI (key performance indicator) scheme in terms of its components, effectiveness and shortcomings Hassan & Abu Husain, 2013 This study proposes asset integrity performance indicators for offshore loading facilities in effort to identify shortfalls of industrial practices Offshore drilling blowouts Skogdalen et al., 2011 This study aims to establish safety indicators for prevention of offshore drilling blowouts Spill prevention Øien, 2008 This study proposes the use of early warning indicators developed from accident investigation such as Eirik Raude hydraulic oil leak in 2005 to minimize hydrocarbon spill during oil and gas production Risk indicator Øien, 2001b This study puts forth a method to develop risk indicators for operational risk control at offshore oil and gas platforms, using quantitative risk analysis Undheim, 1999 The author reports the development of a set of risk-monitoring indicators for offshore petroleum platforms initiated in 1992 during the transition between the shutdown of a platform and construction of new platforms in a North Sea oil field Øien and Sklet, 1999 The authors illustrate on the 'Risk Indicator Project' jointly undertaken by SINTEF and the Norwegian Petroleum Directorate which yielded a risk indicator list to monitor significant risk influencing factors affecting the fatal accident rate Technical indicator Øien et al., 2011 The authors report on the Frigg Safety Case in 1995 which yielded six technical indicators to keep safety influencing factors in check. 11 indicators were subsequently added based on a study of the quantitative risk analysis (QRA) and experts' evaluation Structural integrity Doebling et al., 1996 The authors review the use of structural vibration response to identify and characterize structural damage for offshore platforms Betti et al., 2015 This study proposes evaluation of structural frequencies as a structural damage indicator of offshore platforms Integrative safety Tang et al., 2017 This study identifies a list of indicators grouped under 14 safety factors for comprehensive safety performance measurement of offshore oil and gas installations and probes the correlations between the safety factors based on a survey's findings Petroleum Safety Authority Norway, 2016 ...
... Safety performance measurement of offshore oil and gas platforms in Malaysia is conventionally fragmented covering entities such as technical integrity, structural integrity, process safety, and occupational safety (Hassan & Abu Husain, 2013). There is a lack of integrative approach in the offshore platform safety performance measurement by combining the major safety and health entities using both leading and lagging indicators for proactive and reactive monitoring (Tang, Leiliabadi, Olugu, & Md Dawal, 2017). ...
Introduction:
This study establishes the correlations between performance of a set of key safety factors and the actual lagging performance of oil platforms in Malaysia, hence the relevance of the key safety factors in evaluating and predicting the safety performance of oil and gas platforms. The key factors are crucial components of a safety performance evaluation framework and each key safety factor corresponds to a list of underlying safety indicators.
Method:
In this study, participating industrial practitioners rated the compliance status of each indicator using a numbering system adapted from the traffic light system, based on the actual performance of 10 oil platforms in Malaysia. Safety scores of the platforms were calculated based on the ratings and compared with the actual lagging performance of the platforms. Safety scores of two platforms were compared with the facility status reports' findings of the respective platforms.
Results:
The platforms studied generally had good performance. Total recordable incident rates of the platforms were found to show significant negative correlations with management and work engagement on safety, compliance score for number of incident and near misses, personal safety, and management of change. Lost time injury rates, however, correlated negatively with hazard identification and risk assessment. The safety scores generally agreed with findings of the facility status reports with substandard process containment found as a contributor of hydrocarbon leaks.
Conclusions:
This study proves the criterion validity of the safety performance evaluation framework and demonstrates its usability for benchmarking and continuous improvement of safety practices on the Malaysian offshore oil and gas platforms.
Practical applications:
This study reveals the applicability of the framework and the potential of extending safety reporting beyond the few conventional lagging safety performance indicators used. The study also highlights the synergy between correlating safety factors to streamline safety management on offshore platforms.
In recent years, several major accidents, such as the US Macondo well blowout in 2010, Chinese Bohai Bay oil spills in 2011, Brazilian FPSO Cidade de São Mateus gas explosion in 2015 and Chinese Bohai oil field blowout & fire accident in 2021, have provoked a high awareness that an essential distinction exists between the major accident management and the occupational accident management in the offshore petroleum sector. Further, the urgent need for defining effective major accident indicators is confirmed for the purpose of identifying early warning signals before the major offshore accident occurs. Regrettably, to this day, the offshore petroleum sector has not reached a consensus on the theoretical foundation for the development of effective major accident indicators. This article presents a focused review on the extensive work of the development of major accident indicators in the offshore petroleum sector, including terminologies, assessment criteria for good indicators, development approaches, as well as an overview of current major accident indicators. Following the close scrutiny of this focused review, the strengths and weaknesses of different development approaches are compared. The progress, challenges, suitability and validity of the development of major accident indicators are discussed. On the basis of these insights, future works are suggested to develop effective major accident indicators to better engage on the emerging and complex challenges in preventing major offshore accidents.
Imperfect maintenance modelling and analysis of repairable systems involves an additional parameter called repair effectiveness index (REI) ‘q’, along with shape and scale parameters in generalized renewal process (GRP), which is a measure of the quality of repair or repair effectiveness (RE). The quantitative measure of this parameter is proposed by Kijima through his virtual age models, which attracted enough attention and was extensively used by the researchers. But, RE could be dependent on many subjective factors and also requires qualitative analysis as well for better understanding of repair effects and performance. Quantitative assessment of RE is necessary but not sufficient to analyze it completely. The paper brings out the limitations of the quantitative assessment of RE and highlights the need for further examining it qualitatively. This paper conducts an extensive study with the help of field experts on selection and analysis of various factors affecting RE and proposes eleven primary factors and their sub-factors (total 55 factors/sub-factors) which affect it the most. After due selection of the factors and sub-factors, the paper then proposes a Bayesian network (BN) to model their dependency on each other and with RE. As a result, the proposed BN model provides the measurable effect of all the selected factors and sub factors on RE in percentage form. The results are demonstrated with the help of two examples inspired by practical industrial applications. The presented work could be extremely useful for industries in undertaking reliability improvement of repairable systems by analyzing their repair quality in detail. The proposed methodology can also be used as fundamental guidelines to develop basic understanding of the repair effectiveness and how it can be improved for a particular system leading to an overall improvement in the reliability of the system.
Purpose
The purpose of this paper is to provide a comprehensive overview of technical integrity management (TIM) and propose a methodology for assessing to which extent the technical integrity (TI) performance is balanced in terms of goal awareness among the personnel responsible for TIM, and the degree to which high level goals are implemented in maintenance strategies.
Design/methodology/approach
The study involved a comprehensive literature survey as well as information and data collected in the Norwegian oil and gas (O&G) industry. Several discussion rounds were carried out with the industrial maintenance management experts to recognize the existing practices and to confirm the suggested model.
Findings
The literature review indicated that there is a need for a methodology for assessing to which extent the technical integrity (TI) performance is balanced in terms of goal awareness among the personnel responsible for TIM, and the degree to which high‐level goals are implemented in maintenance strategies. The suggested model can incorporate industrial data as well as intentions, intuitions and experiences of industrial experts who are making decisions sensitive to TI of a production installation.
Research limitations/implications
The study has been conducted in relation to TIM of production installations on the Norwegian Continental Shelf (NCS). The study is limited to measuring TI performance in relations to experts' awareness.
Practical implications
The study stresses the need for improving synergy between the TI and maintenance management function. It proposes a methodology to measure to which extent organizational priorities are balanced, while addressing financial as well as health, safety and environmental (HSE) interests when selecting a maintenance strategy.
Originality/value
This paper addresses a problem that is not given enough attention in the currently available literature. Available approaches suggest models and frameworks for measuring integrity performance. However, the operationalization of most of the existing models and frameworks, remains vague. Instead a formal mechanism is needed to analyze the gap between the present performance and performance targets.
Performance indicators being a widely accepted criterion and a reliable resort to monitor and to control or to improve core-processes, the strategic importance for a comprehensive performance measurement system in the petroleum sector is ever increasing. But yet, there is a lack of such measurement systems to serve the purpose due to its complexity by nature, however been constantly attempted by many personnel. A focal-effort is to track the degree of performance of maintenance process with reference to specified acceptance criteria in the long run to keep-up with a desired operational and technical health, and to comply with the internal and external requirements for offshore petroleum business to enhance the overall asset performance. There are certain critical watch-worthy factors for such performance measurement systems in general, and increasing fundamental motives behind management concerns to outperform beyond statutory and regulatory requirements. This paper discusses some basic issues regarding the development of operations and maintenance performance indicators for the offshore petroleum industry on the premise of the above.
Offshore development engineers are expected to provide early and accurate cost estimates for floating structures. However, there is a tendency within the industry to forget that the cost estimating process may be guided by relevant international standards to ensure consistency and accuracy. There are a number of industry standards and codes on offshore structures and life cycle cost, which are applicable to cost estimating relationships for floating offshore structures; these standards could be used in the cost estimating aspects of concept selection studies, sensitivity analysis and optimisation in the front-end and development planning stages of an offshore project. This paper summarises the author’s study of the applicability of these relevant international standards and discusses ways of applying these to the Cost Estimating Relationships (CERs) for Floating Production Systems (FPS).
Nuclear Power Plants (NPPs) under commercial operation are under continuous demand to meet higher levels of performance and safety by NPP owners, regulatory authorities and the public in general. Maintenance plays an important role in achieving such a goal, therefore, many programs are being conducted in order to improve their effectiveness. A common link between these programs is the necessity to evaluate how maintenance affects NPP performance and safety. This paper presents the foundation of a methodology for a maintenance evaluation program based on maintenance indicators and how it is applied to monitoring the effectiveness of the maintenance at the Cofrentes NPP. The methodology is general and might be applied in other fields of industrial engineering, particularly in those activities which devote many resources to maintain plant equipment, and also in those with less but very critical maintenance.
Asset integrity is a major concern of process facilities. Monitoring and assessing asset integrity is a challenging task due to the involvement of various dependent and independent parameters. Monitoring and assessing asset performance through indicators is one easily doable option. Lack of an appropriate set of indicators quantification technique and measurement cohesion limits the use of an indicator system. To overcome this, in the present paper a hierarchical framework is prepared to for asset integrity monitoring and assessment. The hierarchical structure is used to characterize the asset and relate it to an organization’s strategic goal. The hierarchical structure is based on three major areas of asset integrity, namely: mechanical, personnel and process. Further, it provides an opportunity to follow a bottom-up perspective for identifying multilevel level indicators. The proposed approach uses a risk metric to classify asset integrity through the integration of leading and lagging indicators’ outcome. The analytical hierarchy process is used to determine the weights, or for prioritization of each level indicator and for the aggregation of the indicators to classify risk. To test the proposed model, a benchmark study is conducted. The estimated asset integrity index value provides a tangible asset’s performance index. The system of indicators and their integration provide a comprehensive view of the process facility’s status and also reveal which sections of the facility need more attention.
As the FPSO fleet matures, the challenge of how to
more rationally and efficiently manage the life-cycle
integrity of an FPSO attracts more attention. Risk and
reliability based approaches are regarded as very
powerful tools to help optimize an integrity program
and offer flexibility in helping better manage the
integrity management regime.
ABS has developed a multi-level risk-based
inspection methodology ranging from simplified
deterministic approaches using standard design analysis
up to sophisticated probabilistic approaches. Each
approach has various levels of usefulness ranging from
the definition of critical areas for a single inspection
campaign up to the generation of an optimized
inspection schedule and work scope covering the entire
lifecycle of a particular unit. These RBI methodologies
have been successfully applied in inspection planning
for several FPSO installations. A wide range of
engineering analyses were involved, depending on the
needs of individual projects and client requests,
inspection objectives, condition of the asset, availability
of design analysis information, etc.
In line with the various levels of assessment defined
above, ABS has also started developing an automated
RBI assessment tool which is discussed at the end of
this paper.
Most of the North Sea oil companies have recognized the need to adjust their management processes, including those concerned with operations and maintenance, to the changed and changing business conditions in industry at large, particularly due to the volatile oil price. This has been a rationale to review organizational operations and maintenance policies by many. This paper describes findings from a research study on operations and maintenance performance conducted in the emerging operating environment with close cooperation of leading oil and gas organizations in the Norwegian continental shelf. An attempt has been made to develop an architecture for effective management of operations and maintenance performance linking results to performance drivers. This has further been extended to apply the balanced scorecard concept. The papers emphasize on the value rather than the cost of operations and maintenance in the emerging business environment, and stresses that there is a need to move from a plant-based policy to a more or less long-term business-oriented approach.
Based on the experience gained during several FPSO projects over the previous years, this paper discuss the overall Classification services for a FPSO Project and, if carefully planned with the various actors (Project owner, EPCI and contractors) and balanced with the requirements to certification and verification, how they can provide added technical value and support project management.
Classification services for the construction of a seagoing tanker are standardized for overall process / project management and technical requirements. For the Classification of a FPSO, such services can be planned to maximize the benefit of having a third party partner along the entire execution of the project. The Classification requirements are to be balanced with the overall codes and standards applicable for the project to avoid any "grey" areas, and to address the maximum safety parameters. The services may incorporate review of drawings and inspection at the construction sites for all requirements coming from International Rules, National Authorities and Industry standards. Class can also adapt the services to fit with Asset Integrity Management plans or other planned programs for the operating units.
This paper defines the typical scope of Classification and discusses the different contractual setups of these services, such as enabling Class to communicate findings and surveyor comments directly to the Project Owner and/or EPCI. Class can play an important role as "messenger" improving communication between the different major contractors on the project. It is the aim that readers experienced with Classification of FPSO projects could use this paper as a check list for future projects and that offshore engineers inexperienced with Classification will get a more detailed view over these services and how they can benefit from them.
Finally contractual setup and organization in the Classification society should be followed up by application of an internet platform for centralizing drawing reviews and certificate register, including all written communication for supporting of the Project Management. The project manager is to have access to the numerous project correspondences from all involved offices at any time.
Codes and standards - project requirements
During the initial project preparations by the Project Owner, one of the important design tasks is to clearly identify the codes and standards to be applied in the project. For the floating unit the list is to include the following precisionsi:International RulesFlag state requirementsCoastal state requirementsIndustry standardsClassification notations
This list will support the project specification and be a reference document during the complete project. It should be provided with detailed reference of each code to assure that all contractors will refer to same editions. The list will help to clarify the deliverables in terms of certificates from the nominated Classification society and/or third-party certification agency.
By having this document available early in the project, it serves as a master reference for bids prepared by designers and shipyards. It is also recommended to have the Project Owner's documents and specifications dealing with the interpretations of the industry standards and any Company particular requirements, as there seems to be a difference in the interpretations when comparing different FPSO projects.