The Fundamentals of Asset Integrity Management

Online Training Series – Course Summary

COURSE E: THE FUNDAMENTALS OF ASSET INTEGRITY

IMPLEMENTATION

Module 1: Developing an effective and realistic asset

integrity implementation plan
Fundamentals of an Asset Integrity Implementation Plan
 This plan needs to be effective and the right work needs to be done involving the right
people, the right processes and the right plans. It’s difficult and challenging to put the right
plan together but with the right variables involved as listed before, it can be carried out
efficiently.
 But why focus on Asset Integrity Implementation? As observed and noted over the years,
there has been many accidents including fatalities which have occurred just to name a few:
o Flixborough UK 1974 which involved 27 fatalities
o Piper Alpha UK 1988 with 167 fatalities
o Phillips Pasadena US 1989 involving 23 fatalities
o BP Transocean Deepwater Horizon 2010 which had 11 fatalities
 When an accident occurs, not only is money, equipment and possibly personnel lost, but
also the reputation of the business/company goes down the drain as well.
 It is very important to understand that asset integrity implementation begins in the initial
concept phase of a project - one must think about integrity implementation and safety. It
actually goes on throughout the design phase, procurement phase, into the fabrication
phase and into the commissioning of facilities. It goes on throughout the operation and
lifetime of the assets and straight through till decommissioning phase.

Some definitions used in this module:

 Asset Integrity Management is a continuous process applied throughout design and
operations to assure facilities perform safely and function as intended.
 MAH = major accident hazard
 HAZID = workshop/exercise gone through for identification of hazards from major
accidents
 HAZOP = hazard and operability (study) - in other words, an on process system to identify
what can go wrong
 RBI = risk-based inspection - best practice
 RCM = reliability centred maintenance - generally associated with rotating equipment
 FFS = fitness-for-service - this is the process of evaluating something that you found out in
an inspection exercise
 QRA = quantitative risk assessment - most rigorous type of risk assessment

Integrity Implementation Scheme

Inputs
 A good scheme or system for Integrity, one must have a good business strategy. There are
Regulations associated with safety, Process Safety Management (PSM) and equipment

Course summary developed by Michelle McIntyre on behalf of Oil and Gas Fundamentals © Oil and Gas Fundamentals 2012

THIS IS A CONFIDENTIAL SUMMARY OF THE CONTENTS OF AN ONLINE TRAINING COURSE FOUND AT WWW.OILANDGASFUNDAMENTALS.COM.
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The Fundamentals of Asset Integrity Management
Online Training Series – Course Summary

certification. Best Practices are a way of doing/optimizing things. Company/Industry

Standards - most of our plants are either upstream or downstream and are technically
based and need to be built/made to the industry standards. Hazard/Threat Risk
Assessment - this is an important input because this is basically your prioritization and
typically tells you how to manage your risks.

Regulatory Requirements
 All countries have industrial laws - some have more than others. Basically these regulatory
requirements came about due to accidents in the industry and the government decided to
put it in law! A good asset integrity implementation plan will make sure that these
regulations are complied with. In certain countries, managing equipment types, certain
equipment certifications are required; not only for start-up but also for periodic
certification generally following certain engineering assessments or inspections on such
equipment like pressure relief devices (e.g. PRV), cranes, pipelines, pressure vessels,
offshore structures, etc. Those relating to process safety and major accident prevention
must be met by the asset integrity plan in order to be compliant.

Benefits of Industry Standards

 Safety - These are laws developed for public safety as well as that of the workers, and to
protect the company and assets. They have very beneficial effects - they even tell you how
to operate your equipment safely.
 Availability - if you're operating to a well-recognized standard, any equipment you want or
any practice you want is readily available. Some operators have their own internal
standards that are more stringent than the industry standards, and the operators find that
availability is poor.
 Sparing and maintenance - for standardized equipment is easier to work on.
 Liability - this is important because sometimes you don’t want to ever notice a problem
and it shows up later on in an investigation and you realize that you were not in
compliance - especially in a court of law. So this is the reason why these regulations have
to be in compliance with.
 Tendering - normally when you go out to tender, if you don’t have a standard to follow, a
company would not be able to compare your plan with others.

Hazard And Risk Assessment

 Hazard and risk assessment is a critical input to integrity implementation planning. It
basically tells you what are your risks and what you need to do to manage those risks, so
when you build the plan, those actions/activities must be included in the list.
 Plan must maintain safety critical elements (SCE) - SCE is a risk management tool and the
Integrity Implementation plan should deliver the maintenance of the SCE or in other words
the performance standard. Performance standards for safety critical elements also must be
considered in the plan.
 The Risk Matrix is a tool for prioritizing activities within the Integrity Implementation Plan
and gives you the following:
o RISK = Probability of an Event x Consequence (people, environment, business
financial, reputation)

Course summary developed by Michelle McIntyre on behalf of Oil and Gas Fundamentals © Oil and Gas Fundamentals 2012

THIS IS A CONFIDENTIAL SUMMARY OF THE CONTENTS OF AN ONLINE TRAINING COURSE FOUND AT WWW.OILANDGASFUNDAMENTALS.COM.
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The Fundamentals of Asset Integrity Management
Online Training Series – Course Summary

Hazard and Risk Assessment Process

 HAZID Workshop - where multi-disciplined teams identified the hazards
 Hazard Understanding - involving discussions about the critical hazards
 Final Risk Ranking & Critical Elements (people, processes & plant) which are the means of
control of the critical elements of Prevention, Detection & Control, Mitigation Emergency,
Response
 Hazards Management Strategy - this eventually leads to the Management of Hazards and
Risks.

Performance Standards
 This typically applies to the Critical Elements and lets you know:
o Functionality: what it has to do
o Reliability: the required probability of it functioning correctly on demand
o Survivability: if it is necessary to survive an incident to complete its protective
function
 These must all be maintained.

Realistic Implementation Plan

Inputs required for Asset Integrity Planning

 Business Objectives
 Regulatory Requirements
 Industry & Company
 Standards
 Assets Scope
 Best Practices
 But most importantly - Hazards & Risk Assessment including:
o Performance Standards and Risk Reducing Activities

You then develop a realistic Implementation Plan which may be a 'high level' plan which
comprises of the following:
 Major Integrity Objectives. Some Typical Asset Integrity Objectives are as follows:
 Major accident prevention – a must because it’s the worst thing that can happen to
people, reputation of the company, the stakeholders etc...
 Safe & environmental operations - you don’t want any accidents/incidents whatsoever
because you do not want to damage the air, the environment and suffer reputation loss.
 Improved production reliability - everyone likes to make money, so you must develop the
amount you say and in the time you say
 Satisfied customers & stake-holders
 Organizational alignment - this is difficult to quantify this objective if your organization
isn't aligned.
 Agreed Key Performance Indicators (KPIs) need to be agreed upon and set.
 Effective resource use - risk assessment is important therefore, you need to put resources
to manage high risk stuff.

Course summary developed by Michelle McIntyre on behalf of Oil and Gas Fundamentals © Oil and Gas Fundamentals 2012

THIS IS A CONFIDENTIAL SUMMARY OF THE CONTENTS OF AN ONLINE TRAINING COURSE FOUND AT WWW.OILANDGASFUNDAMENTALS.COM.
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The Fundamentals of Asset Integrity Management
Online Training Series – Course Summary

 Major Activities that must be accomplished to meet these objectives

 Understanding of Constraints - so important to the realistic part of the plan
 High-Level KPIs so you can measure if you're implementing effectively
 Assurance Strategy - to check if the implementation is happening
 Corrective Actions Plan

Typical Asset Integrity Objectives

Major Integrity Activities

Scope of Work HOPPER - will be discussed further in Module 5 but the following are elements of
the HOPPER:
 Business Strategy & Plans
 Well Integrity Work
 Subsea and Pipeline IMR
 Topsides Modifications
 Protective Systems Testing & Upgrades
 Documentation Upgrades
 Leak Data & Staff Interviews
 Risk Matrices
 Engineering Standards Corrosion RAs
 HAZOPS and HAZIDS
 Inspection & Test Data

Understanding of Constraints
 Regulatory requirements - are sometimes constraints because you can't do what you want to do but you have to do
what the government wants you to do
 Customer constraints - for example, an electric company cannot just cut the power to customers unless they are
having major problems hence making reliability important.
 Competing activities - such as drilling, maintenance activities, projects of various sorts going on at the same time
 Budgets - money is always a constraint!
 People resources - such as particular skills or the quantities of the people
 Logistics - particularly for offshore - such as managing helicopters, boats, lifting equipment, etc...
 SIMOPS (simultaneous operations) - when you have 2 or more activities going on in one area, it can be dangerous
and has to be managed effectively and can be a constraint as to what you want to achieve in asset integrity
management.

Typical Integrity KPIs

 # overdue inspections / tests
 Overdue integrity action closures
 Asset integrity spend
 Gas releases
 Oil spills > 1 bbl
 Integrity incidents
 Loss of primary containment
 Fires and explosions

Course summary developed by Michelle McIntyre on behalf of Oil and Gas Fundamentals © Oil and Gas Fundamentals 2012

THIS IS A CONFIDENTIAL SUMMARY OF THE CONTENTS OF AN ONLINE TRAINING COURSE FOUND AT WWW.OILANDGASFUNDAMENTALS.COM.
IT IS FOR THE REVIEW OF COURSE PARTICIPANTS ONLY AND IS NOT FOR DISSEMINATION – COPYRIGHT RESTRICTIONS APPLY
The Fundamentals of Asset Integrity Management
Online Training Series – Course Summary

 Overdue corrective work orders

 Protective device dispensations
 Ops procedures up-to-date
 Chemical injection / pigging
 Management of change status
 Engineering competency
 Operator competency

Assurance Strategy
 Regular KPI reviews conducted by the right people
 Management site visits - for leadership is an important factor
 Internal audits, External audits - checking to see that the plan is getting done.
 3rd party verification - to get an objective opinion
 Assurance organization outside of line organization - so as to obtain an independent opinion
 Corrective action monitoring plan - which come from the KPI's, studies and has to be checked whether or not the
outstanding actions have been closed out.

Corrective Actions Plan

 Corrective actions from KPIs, integrity studies, management visits, audits, etc.
 Should have due dates and firm closure deliverables
 Over-dues should have management approvals and new due dates
 Quality of action closures requires monitoring

Course summary developed by Michelle McIntyre on behalf of Oil and Gas Fundamentals © Oil and Gas Fundamentals 2012

THIS IS A CONFIDENTIAL SUMMARY OF THE CONTENTS OF AN ONLINE TRAINING COURSE FOUND AT WWW.OILANDGASFUNDAMENTALS.COM.
IT IS FOR THE REVIEW OF COURSE PARTICIPANTS ONLY AND IS NOT FOR DISSEMINATION – COPYRIGHT RESTRICTIONS APPLY