Risk Based Inspection for oil and gas industry

Risk Based Inspection

1. RBI – Risk Based Inspection 1

2. W hat I understand about rbi ? 2 RBI is a systematic pro-active approach to deal with the inspection of Industrial units or equipment for their safer & reliable operations keeping in mind the safety, environmental & economical consequences of the system/equipment/unit.

3. W hy? The chief reason for implementing an RBI program is to help manage the risk of a complex and potentially dangerous system so that it may not causes any casualties & economical setback. Did you know… Equipment failures cost the U.S. refining industry over $4 billion per year Two-thirds of those costs are associated with failures of static equipment The average refinery has a risk of $25 million per year due to failures of static equipment Two-thirds of those costs are associated with piping failures 3

4. 1. Understanding the design premise 2. Planning the RBI Assessment 3. Data & Information Collection 4. Identifying damage mechanisms and failure modes 5. Assessing Probability of Failure (POF) 6. Assessing Consequence of Failure (COF) 7. Risk Determination, assessment & Management 8. Risk Management with Inspection activities & other mitigation activities 9. Re-assessment and Updating. 10. Documentation & Record Keeping H ow? 4

5. R bi H elps S elect cost effective and appropriate maintenance and inspection tasks and techniques S hift from a reactive to a proactive maintenance regime P roduce an auditable system I mplement a risk management tool A good RBI process will help identify and mitigate these risks over time. It is also important to note that RBI is a dynamic process. 5

6. B enefits Production Creating uptime will generally increase production resulting in a positive impact on profitability. The following are a few examples where RBI can help production output. Using RBI as a tool can help owner/operators increase turn around schedules and avoiding shutdown inspection activities while maintaining production . A good RBI program can also help an owner/operator understand of the plant is not being ran as designed or if a new feedstock is causing more harm than expected to remaining life of equipment. Predicting any failure prior to occurrance , whether catastrophic of minor, can have a large impact on reputation in the market space and the community. Understanding and mitigating failures, using tools like RBI, can help owner/operators maintain licensing permits and avoid shutdowns due to regulatory non-compliance. 6

7. B enefits Costs The initial cost savings from implementing RBI come from fewer inspections, but don’t forget about reducing the cost of downtime. Primary cost savings are moving from a time-based to risk based approach and in some cases inspection less, but also apply more effective inspection techniques to look for the appropriate damage mechanism. The key is to focus resources on the 5 to 10% of the assets that are driving the bulk of the risk. But in general, the cost benefit of RBI are: 7

8. B enefits Health, Safety and Environment From an HS&E standpoint, following a good RBI approach will force an owner/operator to have a better understanding of their key hazardous processes and provide a solid mitigation program. For Example A good RBI approach can help an owner/operator understand corrosion mechanisms and deterioration rates, and in doing so predict leaks prior to happening. 8

9. 9 B enefits An overall reduction in risk for the facilities and equipment assessed. An acceptance/ understanding of the current risk.

10. B enefits Using RBI to assist with plant design While RBI has typically been associated with in-service operations, some companies are using it to help design their facilities. 10

11. A pi 5 80 – R isk B ased I nspection The API 580 requirements for an RBI program are, from a management system point of view: 11