Tischuk Enterprises (UK) Ltd.

Page 1 of 1
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

TITLE:-

THE APPLICATION OF RISK

BASED APPROACHES TO
INSPECTION PLANNING

AUTHOR:-

John L. Tischuk
Technical Director
Tischuk Enterprises (UK) Ltd
1 Bon Accord Square
Aberdeen.

SYNOPSIS
Risk Based Inspection (RBI) is a method for using risk as a basis for
managing an inspection programme. The concept of risk is used to target
inspection and maintenance resources at areas of the plant where they can
have the greatest effect in reducing risk, the occurrence and consequences of
unplanned failures and to reduce the cost of unproductive inspections. Risk is
a function of both the likelihood of a failure and the consequences of the
failure.
An RBI programme must include updating from results of inspections,
monitoring and process changes and will specify an inspection requirement
and frequency. The inspection requirement may be satisfied by a number of
alternative inspection methods.
Tischuk Enterprises (UK) Ltd has developed an integrated software system
based on the Tischuk Operational Criticality Assessment (OCA) system of
analysis. This is designed to assess risk in a simple and cost effective way
and is a fundamental part of the development, implementation and
management of risk based strategies. OCA uses a 3 x 3 risk matrix to
represent the different levels of risk.
Five cases are presented showing the economic benefits achieved through
application of RBI in five different types of facilities.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 2 of 2
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

INTRODUCTION
Risk based inspection (RBI) and maintenance strategies use the concept of
risk to direct inspection and maintenance resources to the parts of the plant
where they may have the greatest effect in reducing risk. This results in more
efficient and cost effective inspection and maintenance programs. Depending
on the starting point, this may:
1. Reduce both risk and direct operating costs by eliminating
unproductive work.
2. Result in an increase in direct costs with a corresponding benefit of
reduced downtime by a reduction in the occurrence of and
consequences of unplanned failures.
During the last two years, Tischuk Enterprises (UK) Ltd has become a
recognised world leader in RBI technology. The company has developed an
integrated software system for implementation and management of RBI and
has acted as consultant for a number of international oil companies for
development of RBI standards and strategies. The company is a member of
an American Petroleum Institute (API) committee responsible for preparing
the new API RP 580 standard for Risk Based Inspection.

RISK BASED INSPECTION PROGRAM DEVELOPMENT USING THE

TISCHUK OCA SYSTEM
There are 8 distinct steps to developing an RBI program using the Tischuk
OCA system:
1.
2.
3.
4.
5.
6.
7.
8.

Prepare a company RBI policy

Create an asset register.
Carry out process review and define pressure systems.
Determine consequences of failure.
Determine probability of failure.
Determine OCA risk rating
Carry out initial Authoritative Review
Define an Inspection Programme (Interval, Method and Scope).

Once the initial RBI program has been developed, a feedback loop including
the following must be put into place to ensure continuous improvement:
1.
2.
3.
4.
5.

Implement inspection
Assess inspection results
Authoritative Review.
Update OCA
Update inspection programme

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 3 of 3
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

1) Prepare Company RBI Policy

RBI is a team based activity. A company policy is needed to establish a
framework for:
x
x
x
x
x

who is included on the team

what are their roles in the RBI process
who is responsible and accountable for what actions
how the RBI process will be carried out
when the RBI will be updated

2) Creation and Maintenance of an Asset Register.

An Asset Register is a record file containing design and operating details of all
the pressure containing equipment. The register needs to be properly
maintained throughout the service life of the items since it the basis for
computing the OCA Risk Rating and the resulting inspection strategy.
The Asset Register is subdivided by plant area or system and equipment type
as follows:
1. Static Equipment including pressure vessels, tanks and heat
exchangers
2. Pipework
3. Relief Valves
4. Rotating Equipment
5. Control Valves
3) Process Review and Definition of Pressure Systems
Tischuk OCA is a system of analysis identifying the consequences of failure
and the probability of failure for each plant item. It is based on operating
conditions, process fluid composition, materials of construction, design
conditions and plant history and uses a series of knowledge-based computer
models.
An initial process review of the operating conditions is carried out with plant
process operations staff prior to the data being loaded into the computer
models. Pressure system definition and identification is also agreed at this
stage.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 4 of 4
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

4) Assessment of Consequences of Failure.

The Tischuk OCA Consequences of Failure Rating uses eight criteria to
calculate the rating value.
Commercial Impact:
1. Standby availability
2. Financial exposure in terms of repair, collateral costs and lost
production costs.
Safety Impact:
3. Location effects on personnel and adjacent plant.
4. Fluid Hazard Rating of the fluid derived from a consideration of
flammability and toxicity.
5. Inventory. The capacity of vessels and of vessels directly connected
to piping
6. Pressure. Hazardous pressure ratings
7. Population. Hazardous to nearby populations is rated
Environmental Impact:
8. Environmental. The environmental hazard rating is based on current
regulations.
Standby, Financial and Location criteria are assessed by the plant operations
staff. A set of defined rules allows the adjustment of financial consequences
on the basis of the relative importance of a unit to the site The remaining
consequences criteria are derived from data contained in the Asset Register
database and using reference data in the form of look-up tables based on
industry best practice, company standards or national legislation.
The calculation of the overall consequences rating is based on the arithmetic
average of the seven criteria ratings, excluding the financial consequences
value. The financial criteria may upgrade but not downgrade the overall rating
of high, medium or low.
5) Assessment of Probability of Failure.
The Probability of Failure Rating is the highest probability calculated from
models and rules that evaluate the probability of failure by mechanisms
appropriate to the equipment type.
The probability of failure models in the OCA system operate on three levels:
1. Measured rates of deterioration from inspection results ruled valid by
the Authoritative Review.
2. Predicted rates of deterioration based on industry standard or plant
specific calculation methods such as deWaard and Milliams for
Carbon Dioxide corrosion of carbon steel, modified McConomy for
high temperature sulphur corrosion or Salama and Ventakesh for
erosion.
3. Handbook lookup tables.
tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 5 of 5
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

The probabilities of failure identifies failure modes that shall be used to select
appropriate inspection methods to be included in the examination of each
plant item.
The probability of failure models are clearly defined by a series of flow
diagrams giving visibility to the decision process used by the computer
models.
Failure modes for Pipework and Static Equipment:
1. Internal Corrosion
2. External Corrosion including Corrosion Under Insulation
3. Erosion
4. Cavitation
5. Creep
6. Mechanical and Thermal Fatigue
7. Stress Corrosion Cracking
8. Temperature Induced Embrittlement (hot and cold)
9. Wet Hydrogen Cracking
10. Hot Hydrogen Cracking
11. Process Fouling
6) Determination of OCA Risk Rating.
All inspectable items shall have an OCA Risk Rating or Criticality Rating
determined.
Table 1 - Derivation of Operational Criticality Ratings

Probability of Failure
High
Medium
Low

High
1
2
3

Consequence of Failure
Medium
2
3
4

Low
3
4
5

7) Authoritative Review.
One of the purposes of the Authoritative Review is to ensure that all data
having an impact on the Criticality Rating remains valid and that historical
inspection and maintenance data has been incorporated in the Probability of
Failure Ratings.
The Authoritative Review also serves to introduce new items into the
Assessment Register and to review the results of inspection and monitoring
activities. The purpose of the review is:
1. to identify any additions, changes or deletions to the Asset Register
tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 6 of 6
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

2. to establish the actual condition of items and their fitness for purpose
3. to establish the observed deterioration mechanisms and rates
4. to establish the level of confidence in the predictability of the
deterioration rate.
Equipment should be subject to an Authoritative Review to assess its current
grade allocation and endorsement when:
1. any Inspection Report is being prepared
2. significant changes have taken place in the operating conditions
which could affect the rate of deterioration
3. following an abnormal incident which could have affected the
integrity of the equipment
4. 'On-stream' methods such as corrosion monitoring or measurements
of process stream composition have indicated that there has been
any significant change which may have affected the rate of
deterioration.

Allocation of Confidence Index (Inspection Grade)

The Inspection Grade is an indicator of the rate of deterioration and the
reliability of any predictions of deterioration. It is based on the Institute of
Petroleum Model Code of Practice.(IP 12 and IP 13).
Grade 0
Items for which :
a) there is no historical evidence to predict its service performance
(including new
items)
or
b) the rate of deterioration is high with a Remnant Life of < 4 years
or
c) the rate of deterioration may not be forecast from past data.
Grade 1
Items which have :
a) at least one previous examination at grade 0
and b) a moderate rate of deterioration with a Remnant Life of > 4 years but
< 8 years which may be forecast from past data with confidence.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 7 of 7
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

Grade 2
Items which have :
a) at least one previous examination at grade 0
and b) a low rate of deterioration with a Remnant Life of > 8 years which
may be forecast from past data with confidence.
NOTE: Criticality 1 items may not be assessed as grade 2.
Grade 3
Items which have either:
a) at least one examination at grade 0 and one examination at either
grade 1 or 2
and b) a low rate of deterioration with a Remnant Life => Remnant Design
Life and which
may be forecast from past data with confidence
or
c) a negligible rate of deterioration in a stable service environment.
Items on grade 3 are to be subjected to an Authoritative Review at the half life
intervals, the purpose of which is to confirm that neither the operating nor
maintenance regimes have changed such that the rate of deterioration or its
predictability might have been adversely affected.
NOTE: Criticality 1 and 2 items may not be assessed as grade 3.
8) Inspection Plan Development.
The Tischuk OCA process offers three degrees of freedom in developing the
most appropriate inspection plan.
1. The Criticality, in combination with the Inspection Grade is used to
determine the major inspection intervals
2. The Consequence of Failure is used to derive the scope of
inspection
3. The Probability of Failure identifies the expected failure mechanism
and is used to select the most appropriate inspection or NDT
method
a) Determination of Inspection Intervals.

Piping and Static Equipment.

The Operational Criticality Rating together with the Inspection Grade of an
item are used to determine the inspection interval. The following table may be
used as an example where the interval periods are in months.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 8 of 8
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

Table 2 - Derivation of Inspection Interval for Pipework and Static Equipment.

Criticality
1
2
3
4
5

0
2
2
2
3
3

Inspection Grade
1
2
3
N/A
N/A
N/A
3
6
N/A
4
6
8
4
8
10
4
8
12

b) Determination of Inspection Scope.

Inspection scope is determined by the consequences of failure. A detailed
inspection scope is assigned to items with a high consequence of failure. A
general scope is assigned to items with medium consequences of failure and
a limited scope is assigned to items with low consequences of failure.
For both Pipework and Static Equipment, the inspection scope should include
an external visual inspection and an assessment of internal condition. Table 4
suggests minimum requirements for Limited, General and Detailed Scope of
internal assessment.
Table 3 - Minimum Requirements for Internal Assessment.
Low Consequences of
Failure - Limited
Assessment

Medium Consequences of
Failure - General
Assessment

High Consequences of
Failure - Detailed
Assessment

Boroscope

Boroscope and External

NDT

or
External NDT
or
Process review

or
Internal entry
or
Process review and
External NDT

External NDT and

corrosion monitoring and
process review
or
Internal entry

The scope of external visual inspection is divided into two levels, External
Visual and Limited External Visual. The purpose of external visual inspection
is to determine the condition of paint, insulation cladding, pipe supports, vents
and drains, etc. The general scope of external inspection should include
access to all areas of the Pipework or Static Equipment. Limited scope may
be conducted from ground level only.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 9 of 9
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

c) Determination of Inspection Methods.

The choice of non-destructive inspection methods is based on the probability
of failure. Methods are chosen to detect the likely failure modes. Table 5
below is shown as an example.
Table 4 - Supplemental NDT Inspection Methods
Failure Mode
Internal Wall Thinning

Mechanisms
Internal Corrosion
Erosion
Cavitation
Weld Corrosion
External Wall Thinning External Corrosion
Corrosion Under Insulation
Cracking

Fatigue
Stress Corrosion Cracking
Wet Hydrogen Cracking

Other

Creep
Hot Hydrogen Damage
High Temperature
Embrittlement

NDT Methods
Ultrasonic
Radiography

Visual Inspection
Radiography
Thermography
Ultrasonic
Radiography
Magnetic Particle
Liquid Penetrant
Ultrasonic
Radiography
Magnetic Particle

9) Selection of Methods and Assessment of Inspection Results.

Although traditional inspection techniques still have a significant role to play in
checking the condition of the plant, Tischuk Enterprises and its Alliance
partners AEA Technology have looked at alternative ways of acquiring the
same or similar information but without always having the same need to
shutdown, purge or otherwise prepare the plant. The alternative methods
which may be initially expensive have associated potential savings in
downtime and service costs.
Inspection equipment has improved significantly in recent years with much
better repeatability when using Ultrasonic and Eddy Current surveys.
Developments in remote visual inspection equipment and video image
enhancement are being utilised to internally inspect large vessels and similar
voids with borescopes, and videoimagescopes providing a very high image
quality. This equipment has the advantage of being connected to CCTV giving
a permanent record of the inspection and any defects observed, allowing
remote consensus decisions to be made.
By utilising these easily effected, less invasive alternative methods of
inspection for more frequent interim internal checks, the requirement is
reduced for full personal access. This involves isolation, purges, mechanical
assistance, scaffolds, insulation removal, and vessel entry preparations, and
the associated costs; it also allows the full intervention frequency to be

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 10 of 10
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

extended. This non-invasive methodology has the acceptance of the Health

and Safety Executive (HSE).
Other areas where alternative inspection techniques are used are; on-line
monitoring for regular repeat scanning of Pipework where erosion is seen as a
potential problem; the use of thermal imaging to monitor Pipework insulation
and Rotating Equipment; and the use of Real Time Radiography to detect
corrosion under insulation for small bore pipework (Dia.<8).

BENEFITS
The application of RBI through the Tischuk OCA System provides the
following benefits:
x A better understanding of the probabilities and consequences of failure
leading to a more effective means of control and surveillance; improved
prediction of failures giving enhanced safety, availability, reliability and a
higher level of confidence in the plant condition.
x The application of the 80/20 rule, allows RBI principles to determine the
relatively few most critical items allowing significant increases in their
inspection intervals and a reduction in scope for many non-critical items.
x The change to non-intrusive, on-line methods of inspection instead of the
traditional off-line methods has resulted in shorter and possibly less
frequent shutdowns, reducing direct inspection related costs and
minimising lost production costs, with associated reduction in permanent
inspection manning.
x A structured assessment utilising generic and historical data and sound
engineering basis for the revision of the companies inspection philosophy,
providing a fully auditable process reflecting regulatory compliance.

ECONOMIC IMPACT OF RISK BASED INSPECTION STRATEGIES

The application of Risk Based Inspection is having an economic impact on Oil

and Gas production. When analysing operational costs incurred, there is a
tendency to only consider the visible expenses, such as inspection costs,
maintenance costs and management costs, these direct costs only contribute
a small fraction to the total cost of operation.
A more representative analysis would consider, the costs of shutdowns,
downtime, lost production, unplanned failures, environmental issues, and
regulatory compliance, in addition to the visible expenses.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 11 of 11
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

Risk Based Inspection strategies are targeted at reducing the seldom

considered costs, effecting value added to the operation.
Several case histories are detailed demonstrating the lifecycle value of Risk
Based Inspection Strategies.
CASE HISTORY 1
The first case history considers a North Sea Gas Terminal, with three
pipelines and a normal winter gas rate of approximately 45 million Standard
cubic metres per day (1.4 BSCF/day) supplying 15-20 % of the current UK
demand.
The objective of the inspection process applied is to ensure the integrity of the
plant, equipment and structures with a view to protecting the personnel and
the environment and to ensure that the company is able to safely continue its
business.
The inspection philosophy applied to the plant and equipment at the terminal
has continuously evolved since 1978. Initially based on Industry standards,
the inspection frequency was prescriptive in nature and in some cases
statutory, however a very thorough programme of inspection was supplied
giving a high level of reliability and confidence.
This has provided a sound basis for the application of the terminals Risk
Based Inspection Strategies, which have been implemented at similar costs to
the previous prescriptive regime.
The terminal adopted a Risk Based Strategy based on the Tischuk OCA
system for revising both planned maintenance and inspection philosophy for
the Piping systems, Vessels and Relief Valves, in 1994 with the following
results.
x A reduction in inspection man-hours of 26% giving a cost saving of $80,000
per annum.
x A reduction in associated inspection services and mechanical man-hours of
31% giving a cost saving of $ 235,000 per annum.
x An increase in the periodicity of major intervention in most plant areas
extending from two yearly to three yearly for minor inspections and from
four yearly to six yearly for major inspections, providing a 30-40% saving in
plant downtime and production capacity.
x A decrease in the length of intervention periods from 21 days to 10 days
giving an approximate saving in production capacity of 50%. At maximum
capacity this equates to 132 million standard cubic metres of gas
production.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 12 of 12
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

x A targeting of appropriate inspection techniques to most vulnerable plant

identified by the OCA analysis.
x Application of alternative inspection techniques.
x The re-determination of both frequency of intervention and applied
inspection techniques.
As a result of improved confidence in the condition of the equipment, the
operator has moved to the following non-intrusive and on-line methods of
inspection which do not have the same need to shutdown, purge or otherwise
prepare the plant. The alternative methods which may be initially expensive
have associated potential savings in downtime and service costs.
By utilising these easily effected, less invasive alternative methods of
inspection for more frequent interim internal checks, the requirement is
reduced for full personal access. This involves isolation, purges, mechanical
assistance, scaffolds, insulation removal, and vessel entry preparations, and
the associated costs; it also allows the full intervention frequency to be
extended. This non-invasive methodology has the acceptance of the Health
and Safety Executive (HSE).
Inspection equipment has improved significantly in recent years with much
better repeatability when using Ultrasonic and Eddy Current surveys.
Developments in remote visual inspection equipment and video image
enhancement are being utilised to internally inspect large vessels and similar
voids with borescopes, and videoimagescopes providing a very high image
quality.
On-line monitoring for regular repeat scanning of Pipework where erosion is
seen as a potential problem; the use of thermal imaging to monitor Pipework
insulation and Rotating Equipment; and the use of Real Time Radiography to
detect corrosion under insulation for small bore pipework (Dia.<8).
Vessel Inspection Plugs and Visual Inspection Ports are used to provide
suitable access, for Visual Inspection and Ultrasonic Thickness Measurement.
Thus, from an initial investment of $ 130,000 for the implementation costs, it is
estimated over a 6 year period that there will be a 66% reduction in shutdown
days, equating to 480 million standard cubic metres of gas production, without
compromising safety and environmental issues within the terminal.
CASE HISTORY 2
The second case history considers a UK Gas field which has an indigenous
reservoir of approximately 280 billion cubic feet of gas. It is also used as a
mass gas storage site.
The field has a gas compression facility to enable gas to be pressurised and

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 13 of 13
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

re-injected into the reservoir. When in production the platforms can deliver in
excess of 1500 million standard cubic feet of gas per day.
Changes in the gas industry have reduced the flexibility and minimised
windows for Inspection and maintenance.
As a result, the operator adopted a Risk Based approach for their Inspection
Regime by performing an Operational Criticality Assessment in 1995.
The planned Inspection workscope produced for the next 6 to 8 years utilises
non-intrusive methods of inspection and is systematically replacing the
previous shutdown policy based on the statutory requirements.
This leads to a reduction in shutdown days and thus value added to the cost
of operation.
The move to non-intrusive inspection methods has been possible due to the
relatively benign dry gas the field produces, and a high level of confidence in
the condition of the equipment and in the methods of inspection employed.
The inspection regime used will take advantage of any opportunity driven
shutdowns to augment the inspection techniques performed.
Results of a pilot Operational Criticality Assessment performed on the
condensate system, indicated that there would be annual savings in excess of
$ 90,000 from the inspection costs of the pressure systems, this being
achieved by the following:
x a reduction of 70% in the level of Ultrasonic Testing.
x an increase in the intervals of internal vessel Inspections, by an average of
20 months.
x reduction in shutdown days providing additional revenue of $ 225,000 per
annum.
It should be noted however, that the shutdown costs for 1997 have indicated
an increase of 15% this was due to optimising the vessel inspection
scheduling, smoothing out the programme over the next six years.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 14 of 14
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

CASE HISTORY 3
The third case history looks at a some process units from a large UK refinery,
where Risk Based Strategies, through the use of Operational Criticality
Assessment have been applied for the last 5 years.
The refinery employs a rolling four year internal vessel inspection programme.
By the application of Risk Based Inspection, the number of vessels requiring
internal examination has reduced in 90% of the plants considered.
Due to a recent extensive modification programme the hydro de-sulphuriser
plant contained more vessels requiring internal inspection The modifications
have reduced the vessel inspection grade allocation, and thus increases the
level of inspection required.
The refinery processes a 250,000 bbl of crude oil per day and has incurred
costs of $ 500,000 to implement their Risk Based Inspection Strategies which
has achieved the following:
x a 27% reduction in shutdown duration has been achieved, by reducing the
number of vessels requiring intrusive inspection.
x Equating to a net revenue gain of $ 4.5 million for each shutdown,
x A reduction in shutdown costs of $ 1.5 million.
CASE HISTORY 4
The fourth case history considers an operator with both new and mature North
Sea Oil and Gas Fields.
Both financial and non financial benefits are being realised, by applying Risk
Based Strategies to inspection and maintenance philosophies.
The non financial benefits recognised by the operator have demonstrated
commitment to the health and safety of the workforce, and commitment to the
governing regulations.
It is predicted that financial benefits will be realised in lifecycle inspection and
maintenance costs. Initially by reducing the number of internal vessel
inspections by 50%-60% and then by continuous improvement, through risk
based programmes, it is anticipated that the inspection programme will
improve, giving a further reduction in costs of 33.3%, as the frequency
between intervention periods is increased.
These figures are based on an average cost of $ 8,000 to shutdown, prepare
and inspect a vessel, and take no account of the additional value added by
lost production cost savings.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 15 of 15
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

The operator is currently achieving some of the financial benefits through the
implementation of their Risk Based strategies.
x A mature oil field producing 9 thousand barrels of oil per day has realised
savings of 25 % in pipeline inspection, and 41% in vessel inspection, giving
a total cost saving of $ 115,000 from 1997s inspection campaign.
x For new oil and gas fields producing 15 thousand barrels of condensate per
day, and 400 million standard cubic feet of gas per day, it is estimated that
there will be a reduction of $ 160,000 from 1997s Inspection costs, by
moving away from the previous statutory five year Inspection plan.
CASE HISTORY 5
The fifth case history considers a North Sea Oil field, producing 93 thousand
barrels of oil per day, and exporting 242 million standard cubic feet of gas per
day. The operator has adopted Risk Based Inspection strategies for its
corrosion and inspection management programmes.
A five year strategy plan has been developed, and through its implementation
it is expected that the operator will realise the following benefits.
x An estimated reduction of $ 1.6 million from 1997 inspection costs, over a
four year period, achievable by improving inspection efficiency and utilising
more appropriate methods of inspection.
x By utilising non-intrusive inspection there is an estimated reduction in
planned shutdown days for vessel inspections, from the current five days
per year to one day per year, leading to revenue gain of $ 2 million per
annum.
x An estimated reduction in unplanned failure costs, from the current $ 3.6
million per annum, to zero over a five year period, achievable if unpredicted failures are eliminated.
CASE HISTORY 6
The final case history considers a new onshore Gas treatment plant,
processing gas valuing
$ 8 million per day.
Risk Based Inspection strategies have been applied to produce a lifecycle
inspection schedule, for its 30 year design life which minimises production lost
through inspection.
By performing, as a first pass an Operational Criticality Assessment, then a
detailed HAZOP study on the high risk items, a non-intrusive inspection
schedule has been determined for the treatment plant.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 16 of 16
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

An extensive review of the material selection philosophy, determined that the

materials selected, were commensurate with maintaining the mechanical
integrity of the plant over its design life.
It considered the damage mechanisms expected from plant experiencing dry,
sweet, gas conditions during normal operation.
These conditions reduce the potential for significant internal corrosion, and
make a lifecycle non-intrusive inspection schedule feasible. This schedule
will only be valid if the process conditions are kept within the specified
envelope.
A stringent, process monitoring and control programme is to be effected,
identifying levels of water content, carbon dioxide, hydrogen sulphide,
chlorides, and organic acids. The envelope and any significant process
excursions are to be reviewed on a regular basis.
One planned inspection driven shutdown has been scheduled two years into
the operation. The results of the inspection are to be fed back into the
Operational Criticality Assessment via the Authoritative Review module
providing an update of the assessment. It is anticipated that this will be the
only inspection driven shutdown, throughout the design life of the plant.
Considering the loss of pipeline tariff, if inspection driven shutdowns are
minimised there is a potential saving of $ 235,000 per day of shutdown.
Therefore, if a three day shutdown is avoided there is a potential net revenue
gain of $ 700,000 per annum in tariff income to the terminal operator and $24
million to the terminal users.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002

Tischuk Enterprises (UK) Ltd.

Page 17 of 17
THE APPLICATION OF RISK BASED APPROACHES TO INSPECTION PLANNING

CONCLUSIONS
The application of Risk Based Inspection through the use of Operational
Criticality Assessment is proving to be economically viable, providing both
financial and non financial benefits for operators.
Risk Based Inspection strategies have been successful, in reviewing the
frequency of interventions and the use of applied inspection techniques, for
both planned maintenance and inspection.
The adoption of Risk Based Inspection programmes allows both new and
improved alternative methods of inspection to be applied where suitable. For
these strategies to be successful inspection methods available require
continual review leading to progressive development utilising the most
effective method of inspection.

tp2_inspection.DOC
Prepared by J.L. Tischuk

06/11/2002