Case Study: Increasing Profitability by $16MM with Customized Risk- Based Inspection

Learn how we helped a global oil and gas exploration and production company recognize a profit of more than $16 million by optimizing its inspection program and increase its availability.

The Challenge

A global oil and gas producer with exploration and production activities concentrated in three geographic regions—the United States, the Middle East, and Latin America—is focused on long-lived oil and gas assets, where production can be increased by applying appropriate technology. This company strives to manage production costs effectively and to achieve exemplary safety and environmental performance.

In order to support the expansion of field assets—and meet production targets while maintaining equipment integrity—this organization identified the need to optimize its inspection program. A strategy was developed to utilize Credo® Inspection Database Management Software (IDMS) with an embedded Risk-Based Inspection (RBI) module based on API recommended practices. The company was faced with limited internal resources to develop and implement this solution, so it required external support from an established asset integrity services provider.

Pinnacle’s Solution

To address these challenges, Pinnacle was engaged to develop and implement a customized, comprehensive RBI and inspection planning solution, utilizing Credo® software. Pinnacle’s RBI solution helps to optimize inspection strategies, by determining where and when to focus inspection efforts.

Pinnacle applies a regimented process of document gathering, data mining, predictive damage modeling, consequence of failure assessments and RBI planning. As a result, clients receive an optimized set of inspection strategies that properly targets loss of containment risk in an efficient manner. Pinnacle’s in-house team of experts are also equipped to provide evergreening support through updating risk profiles and inspection tasks, and by monitoring key performance indicators (KPIs).

Based upon the client’s current needs, future goals, and corporate objectives, Pinnacle completed the following:

• Developed semi-quantitative RBI methodology based on API RP 581 and RAGAGEP.
• Conducted RBI methodology and hands-on training for company site teams to gain full understanding and expertise
  in use of Credo and RBI assessments.
• Created Master Asset List from CMMS, IDMS, PFD, P&IDs, MI List and field data.
• Created Electronic Document Library (EDL) of all Mechanical Integrity (MI) related documentation, which enabled the company to transition from hard copy equipment files to electronic files that can be accessed by all users within the business unit.
• Extracted all design and MI pertinent data for static equipment and process piping from the EDL.
• Classified process piping based on API 570 criteria, in addition to identifying corresponding fixed, time-based, inspection intervals for piping assets.
• Validated the client’s corrosion model by utilizing corrosion subject matter experts (SMEs) and by referencing data from API 571, 581, and NACE. Estimated corrosion rates were also assigned, as required.
• Gathered process, operating, and consequence of failure data from field personnel and respective departments. All of this data was then organized and uploaded to Credo® IDMS.
• Utilized Credo® RBI module to conduct risk analysis and establish risk ranking.
• Utilized Credo® Inspection Planning module to identify inspection due dates based on risk ranking and tolerable limits from the client’s Corporate Matrix.
• Developed RBI plans for static assets. These plans included: current and future risk ranks, corresponding inspection due dates, and effective inspection techniques.

Results

Through Pinnacle’s comprehensive solution, the client is now using a more robust and efficient mechanical integrity database. Key benefits stemming from Pinnacle’s RBI implementation include:

Miscellaneous Benefits:

Additional miscellaneous benefits achieved through the implementation include the following:

• Assets with no inspection history, or lack of effective inspection, were identified in the Credo® RBI module and updated with an annual inspection plan.
• An Electronic Document Library (EDL) was created with ~9500 MI hard copy documents and uploaded to an electronic document control library and shared with the entire facility.
• Data discrepancies and gaps with asset tags between the CMMS and field data were identified.
• Streamlined UT data (TML readings) were transferred to Credo® IDMS module using standardized import templates.
• Electronic approval process with inspection report templates in Credo® Workflow module was created.

As a result of Pinnacle’s solution, the organization is now able to make data-driven decisions, leading to optimized business decisions in regards to funds, resources, and efficiency. The client now has a more proactive and effective MI program, resulting in more effective inspections; reduced failures and equipment downtime; increased safety, compliance, and revenue; and optimized resource utilization.