February 2015

McDermott International, Inc.

© 2014 McDermott International, Inc. All rights reserved.

Challenges with Subsea Pipeline Integrity Management in the

Middle EastManoj Kulshrestha

Contents

Middle East on World Hydrocarbon Map Peculiarities of Middle East Fields Threats to Pipelines Operators Preparedness Emergency Pipeline Repair System (EPRS) EPRS Manual ‐ Limitations EPRS – Why McDermott? Beyond EPRS Manual Conclusions References

World Oil –Middle East Share

Rest of World 68%

Bahrain

Iran

Iraq

Israel

Jordan

Kuwait

Oman

Qatar

Saudi Arabia

Syria

United Arab Emirates

Yemen

Middle East Contribution32%

[ Source : Reference # 3, 4 ]

“Five Middle East oil producing countries are among top ten oil producers in the world”

Worldwide Natural Gas Production

Rest of World83%

Other Middle East8%

Qatar4%

Iran5%

[ Source : Reference # 11]

Iran, Qatar & Saudi Arabia are among top ten  producer of natural gas in the world

Regional Pipelines  Distribution 

Americas69%

Asia14%

Europe8%

South America

3%

Africa3%

Middle East2% Australia's

1%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000 2,369,082

474,449

287,395110,585 87,381 82,134 34,469

Tota

l Pip

elin

e Le

ngth

(km

)

Total pipeline length        Worldwide : 3,445,495 km      Middle East : 82,134 km 

[ Source : Reference # 5]

Peculiarities of Middle East Fields

Middle East has one of the largest oil and gas producingoffshore fields

Shallow water depths – increases probability of damage Hard seabed – burial is not economical Unplanned field developments – spaghetti of pipelines,cables and umbilical

Multiple operators – no common design operating andmaintenance philosophy

No statutory guidelines – pipelines, vessel anchorageand loading areas

[ Source : Reference # 2 & 12]

Peculiarities of Middle East Fields

No defined protection philosophy – unburied pipelines,sometimes without concrete coating

Uncontrolled fishing activities – fish traps found onpipelines

No abandonment plans – non‐operational pipelines notremoved or preserved

Environmental guidelines – still immature

21%

30%26%

7%

6%

5%

1% 1%1% 1%

1%

AnchoringImpactCorrosionStructuralMaterialNatural HazardConstructionMaintenanceHuman ErrorOperational ProblemsOther

[ Source : Reference # 7]

Offshore Steel Pipeline Incidents

Threats to Pipelines

Continuous field developmental activities: damages by Construction barges/anchor handling tugs Drilling rigs  Accommodation barges 

Heavy oil and LNG tanker traffic Fishing activities – mainly cable/umbilical damages Possibility of intrusions

Operators Preparedness

Preventive measures Security shields around offshore assets Satellite surveillance for vessels movement Information sharing among various operators

Emergency preparedness Pursue Emergency Pipelines Repair System (EPRS) studies  Maintain repair apparatuses inventory Share resources – EPRS club Secure long‐term contracts with vessel owners

[ Source : Reference # 1]

INSTALLATION ENGINEERINGPROCEDURES

EPRSTEAM REPAIR SPREAD

REPAIR MATERIALMANUAL

EPRS – Components

Rapid, organized, response toidentify, assess, stabilize andreinstate mechanical andoperating integrity ofdamaged section of pipelineswhile maintaining high safetystandards and mitigationagainst environmental impact

No industry code or standardexists

[ Source : Reference # 1]

EPRS ‐ Studies

McDermott performed EPRS studies for North Field, Qatar operators

North Field 3rd largest non‐ associated gas  reservoir in world, Discovered 1971  Proven gas reserves of 885 tcf Reserve to production ratio – 160 Integrated mega projects  Operated by leading companies

Pipelines are life lines to uphold Qatar as: Meeting 30% of energy need of UAE Operating world’s largest GTL facility Largest LNG exporter – 85% of produced natural gas

[ Source : Reference # 10]

EPRS‐ 9 Step Damage Repair Approach

REPORTING

PRESSURE REDUCTION

INSPECTION ASSESSMENT

CATEGORY

REPAIR METHOD TIME FRAME

INTERVENTION PROCEDURE

INVENTORY

EPRS‐ Assessment of Credible Damages

Non‐Corrosive Damages Gouge Gouge on weld Dent Gouge in dent Dent on weld Abrasion Anchor drag (Displacement) Displacement with dent and gouge Crack and crack like flaws

EPRS Manual

Assessment performed forpossible credible damagescenarios for all distinctivesections of pipelines

Acceptable limit for gougesand dents were computed

Anchor dragging simulatedusing Finite Element Tools

All results knit into thedecision making processthrough flow chart

0.0

5.0

10.0

15.0

20.0

25.0

0.0 200.0 400.0 600.0 800.0 1000.0 1200.0

defe

ct d

epth

(d),

mm

defect length (L or 2c), mm

Failure at 182 bar

failure at 100 percent SMYS

Red

Amber

Yellow

Gouge

Pipeline Diameter

30 inch 28 inch24 inch 18 inch

Concrete Thickness 

90 mm

60 mm110 mm

45 mm

Lateral Displacement for Yield 

(m)

4.2 5.7 3 7.1 5.6 7.3

Local Angle for Yield (°)

0.8 3.9 0.8 0.7 0.4 1.5

Global Angle for Yield (°)

9.1 8.5 3.1 9.1 11.2 10.5

Length of displaced section (m)

350 350 240 390 390 480

EPRS – Decision Making Tree

Decision making tree aids operators in  Swift decision on intervention or to continue operation Time frame for repair & Reduce loss in production

EPRS Manual Limitations

Assessment performed for possible credible damagescenarios – provides quick guidelines

Assessment based on generalized parameters Each damage is unique and sensitivity to locationspecific parameters can affect recommendations

Certain damages at transition limits require sensitivitychecks

Explicit analysis are always recommended prior to anyintervention

Any further analysis require skilled team and softwareincluding Finite Element (FE) tools

EPRS – Why McDermott?

EPC Advantage ‐ Single Window Solution Competent Engineering Team with FEA expertise Specialized Construction Support Engineering Team Proficient Marine Operations and Diving Team Marine Vessels Procurement Expertise Proven Track Record EPRS Studies for RasGAS and QatarGas Emergency Repairs for Dubai Petroleum 

Establishment Damage Assessment for DuGAS, Dubai

EPRS – Why McDermott?

Track Record

Beyond EPRS Manual

Tow Analysis for Replacement Sections Identification/ Procurement of other 

installation aids – Buoyancy bags, Bear Clamp, Rollers, Pulling Heads etc.

Independent FEA review for Mechanical Connector

Gripping Pressure Simulation

In addition, McDermott performed the following to have TOTAL READINESS

Conclusions

Apart from Damage Assessment Expertize, contributionof Installation Contractors is equally imperative forRobust EPRS.

EPC Contractors with integrity expertize can provide asingle source solution to operators via long termcontracts

Industry needs to develop codes and practices for EPRS

Q & A

EPRS IS NOT ONLY A MATTER OF PREPAREDNESSBUT 

TOTAL PREPAREDNESS

At McDermott – we have Total Preparedness

References

1. Developing a Robust Emergency Pipeline Repair System in Nigeria [Conference] / auth. Iyede Efemena and Akinola Mobolaji // 38th Nigeria Annual International Conference & Exhibition. ‐ Lagos : SPE, 2014. ‐ Vols. Paper No. SPE‐172394‐MS.

2. Guidelines for Pipeline Operators on Pipeline Hazards [Report] / auth. Health & Safety Executive. ‐ Aberdeen : www.hse.gov.uk/pipelines, 2009.

3. International Energy Statistics [Online] / auth. US Department of Energy. ‐ January 13, 2015. ‐http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=5&pid=57&aid=1&cid=regions&syid=2009&eyid=2013&unit=TBPD.

4. List of Countries by Oil Production [Online] / auth. Wikipedia. ‐ January 12, 2015. ‐http://en.wikipedia.org/wiki/List_of_countries_by_oil_production.

5. List of countries by total length of pipelines [Online] / auth. Wikipedia. ‐ January 12, 2015. ‐ http://en.wikipedia.org/wiki/List_of_countries_by_total_length_of_pipelines.

6. Performance of European cross‐country oil pipelines ‐ Statistical summary of reported spillages in 2012 and since 1971 [Report] / auth. CONCAWE ‐ Conservation of clean air and water in Europe. ‐ Brussels : CONCAWE, 2013.

References

7. Probability Analysis of Damage to Offshore Pipeline by Ship Factors [Report] / auth. Liu Yutao, HU Hao and Zhang Di. ‐ Shanghai : TRB 92th Annual Meeting, 2011.

8. Risk Assessment Data Directory ‐Major Accidents ‐ Report No. 434‐17 [Report] / auth. International Association of Oil and Gas Producer. ‐ England & Wales : http://www.ogp.org.uk/, 2010.

9. The Update of Loss of Containment Data for Offshore Pipelines ‐ PARLOC 2001 [Report] / auth. Mott MacDonald Ltd.. ‐ Croydon : www.hse.gov.uk/pipelines, 2003.

10. www.eia.gov [Online] / auth. US Energy Information Administration (EIA) // Energy Information. ‐ January 12, 2015. ‐ http://www.eia.gov/countries/cab.cfm?fips=qa.

11. www.eia.gov [Online] / auth. US Department of Energy // International Energy Statistics ‐Gross Natural Gas. ‐ January 6, 2015. ‐http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=3&pid=3&aid=1.

12. www.offshore‐mag.com [Online]. ‐ 1 10, 2008. ‐ January 13, 2015. ‐ http://www.offshore‐mag.com/articles/print/volume‐68/issue‐10/middle‐east/middle‐east‐to‐be‐worldrsquos‐largest‐offshore‐producer.html.

13. www.subsea7.com [Online] / auth. Subsea. ‐ Saipem Dolphin Emergency Pipeline Repair System (EPRS). ‐ January 8, 2015. ‐http://www.subsea7.com/content/dam/subsea7/documents/whatwedo/projects/northseaandcanada/Saipem%20Dolphin%20(EPRS).pdf.