Emergency Pipeline Repair Solutions and Future Contingency Planning

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Emergency Pipeline Repair Solutions and Future Contingency Planning SubseaEurope 2010 Espace Grande Arche, Paris 28/10/10 Paul Hughes, Product Manager - Connectors

Hydratight Products & Services Part of the Actuant Corporation, Hydratight is a world leading engineering company who provide a range of specialist products and services to the Oil & Gas and Power Generation industries. Since 1901, our aim is to maximise safety and improve operational efficiency by supplying products and services that provide safe, reliable connections. Products & services cover applications including : Torque & tension bolting Joint Integrity software & services In-situ pipe cutting, beveling, & prepping On-site, in-situ milling, line boring & grinding In-situ CNC thread capable 3D milling In-place leak sealing & valve testing Topside & Subsea Weldless Connections Customized engineering solutions

Objectives Discuss requirements for Pipeline Repair Share over 15 years of experience involving MORGRIP Pipeline Connectors Present the benefits of Contingency Planning using as Emergency Pipeline Repair System (EPRS) model Highlight some case studies & conclude

Requirement for Pipeline Repair Causes Corrosion CP Failure Dropped objects Fishing activities Seabed structure Installation issues Anchor drag / drop Erosion / abrasion Internal blockage Operation Issues Outcomes Holes Cracks Gouges Buckles Dents Severed Pipe Options Containment Mechanical Connectors Replacement Hyperbaric Welding Surface Welding Examples Clamp Sleeve Type Local Repair New Pipe $$$$ $

Mechanical Pipeline Connectors DNV offer an independent standard (OS-F101 / RP-113) for Mechanical Connectors and their permanent use...

MORGRIP Pipeline Connector A highly developed mechanical connector satisfying approvals with simple premises: Proven equivalence to a weld in terms of safety, strength and reliability Suitable for any application where a weld would be the traditional solution

MORGRIP Connectors MORGRIP is a Hydratight core product Range of mechanical pipeline connectors 2400+ supplied worldwide over 20 years Repair, contingency, tie-in & construction Numerous Subsea & Topside applications 100% leak-free in-service record!!

+ Torsion MORGRIP Technology Anatomy of a MORGRIP Before Activation Axial Load / Tension Metal/Graphite/Metal Seal After Activation

Subsea Connectors Diver & Diverless installed Range of sizes to 42 Permanent connection Up to 30 years design life Standard products Bespoke solutions Infield experience

Typical Subsea Installation

Typical Subsea Repairs Diver Installed Diverless

Pipeline Contingency Planning Risk = Cost x Probability Threat Vulnerability Cost to Business Risk Management through Contingency with Emergency Pipeline Repair Systems

Why Have EPRS? Risk reduction measure Reduce consequences of failure Minimize interruption to Production Limits escalations in Insurance Widespread consequences due to interconnectivity of multiple Assets Repair equipment on long lead times Being REACTIVE is significantly more expensive than being PROACTIVE!

Pipeline Connector EPRS Management Implementation Operators & Pipelines Assessment Optimisation & Options Avoid treating requirements in isolation Draw on suppliers experience & expertise As much about being driven by supplier as the end users Highlight similarities between Asset owners Formation of Club(s) / collective membership Methods can always be improved even after EPRS is established

Operators & Pipelines Location Environment Pipe Data Operators & Pipelines Criticality Installation Operations Upfront application data is key to assessing and establishing widest options Key pipe data is not always easily available Understanding complete contingency methodology and actual requirements Working with Installation Contractor upfront achieves more robust EPRS coverage

EPRS Assessment Filter All Pipe Data Identify Common Pipes Establish Pipe Size Coverage Identify Commonality Review Installation Methodology Evaluate Multiple Pipe Coverage Engineering assessment for multiple pipe coverage has significant influences on reducing number of components Multiple technical review cycles with all members is key to highlight drivers for optimised solutions Designing for Common Installation equipment offers CAPEX savings

EPRS Optimization Pipelines Distribution Class Rating Standard Connectors 2" ANSI 2500 2 3" ANSI 1500 2 3" ANSI 2500 2 4" ANSI 1500 2 4" ANSI 2500 2 6" ANSI 1500 2 8" ANSI 1500 2 8" ANSI 2500 2 10" ANSI 1500 2 10" ANSI 2500 2 12" ANSI 1500 2 12" ANSI 2500 2 14" ANSI 1500 2 16" ANSI 900 2 16" ANSI 1500 2 18" ANSI 1500 2 20" ANSI 1500 2 24" ANSI 900 2 26" ANSI 900 2 28" ANSI 600 2 Component Groups Grouped Connectors 1 2 2 2 3 2 4 2 5 2 6 2 7 2 36" ANSI 600 2 8 2 42 16

EPRS Options Connector Format Coupling Common Parts Flange Adaptor Connector Format can reduce overall price. Common Installation parts across sizes can save typically 35% Level Complete Detail Engineering Raw Materials Machined Components Complete Connector 15% - 65% Level of Service Connector Only Installation Equipment Storage & Maintenance Complete Installation Level of completeness can significantly influence actual CAPEX required Don t always need fully complete connectors!

EPRS Implementation Category A B C D E Pipe Size Range 8 16 #300lb 16 24 #600lb 24 28 #900lb 30 34 #900lb 36 (complete) Delivery Commitment 15 days 20 days 25 days 30 days 10 days Low CAPEX cost membership fee Low annual OPEX subscription rate Tailored contingency solutions Guaranteed access to high quality pipeline repair equipment Short lead times for supply of connectors within mobilisation times of owners

EPRS Management Maintain EPRS does not end once equipment is produced and put into Storage... Installation Procedures EPRS Storage Personnel Dry Run Maintaining equipment, personnel and documentation is key to ensure smooth call off and timely repair Periodic Dry Runs of call off are very effective to ensure competencies are maintained

Summary of EPRS Providing short lead time MORGRIP repairs as contingency for pipeline failure Low cost membership & subscription Eliminating major annual CAPEX or OPEX Bespoke contingency solutions Guaranteed access to quality equipment Significantly reduced repair lead times

Case Study Diverless EPRS Part of STATOIL PRS Deepwater Contingency to cover 8in to 30in for up to 600m W/D Diverless Pipe to Pipe Connectors - 3in, 10in, 12in, 16in, 20in, 28in and 30in coverage Fully complete, utilising shared components across all sizes offering considerable savings Maximum 18 day call off for mobilization Maintenance and storage contract including personnel competencies for installation Frame agreement for future manufacturing

Case Study - Snorre Vigdis Pigging problem causes damage to 12in Snorre Vigdis pipeline in 305m W/D STATOIL PRS contingency system employed MORGRIP configured, assembled, FAT tested and mobilized in Norway within 20 days Integrated & tested into installation frame onshore and offshore prior to deployment Repair completed in 24 hours : o o o o o Coupling deployed in installation frame Pipe manipulation & pipe stab in Coupling activation Externally pressure tested Installation frame recovered

Case Study Israel NG Line INGL operate 30 pipeline offshore supplying <40% of national electricity production Anchor damage to pipeline in 2005 repaired with 2 off MORGRIP Flange Adaptors Diver installed with Hydratight supervision in less than 24 hrs INGL have complete EPRS solution including tooling and manpoower to mobilize locally

Case Study Topside Project Turnkey Installation & EPRS Stocking for PETROBRAS : Asset survey conducted Pipe Data assessment to maximise coverage using minimal connectors Supplied 160 off connectors ranging from 3in to 20in to all pipelines and cover 3 FPSO / Platforms Train local workforce on installation Pipe prep, installation, testing and maintenance + full joint management

Summary & Conclusion Mechanical connectors provide a viable permanent alternative to welded pipeline repair solutions Suppliers have an obligation to offer high level assessment to help drive CAPEX down Connectors can be easily adapted to offer more EPRS supply options without deviating from proven formats Dry runs have proved to be highly valuable to ensure procedures and competencies are maintained Future application (especially for topside installations) calls for full Joint Integrity Management...

Thank You... Any Questions? For further information please visit www.hydratight.com