1. The Best Strategy for
ASSET INTEGRITY
By Darwin Jayson Mariano
Special Supplement

2. Asset Integrity: It’s All About
Taking Action
In the wake of some of the biggest
disasters that happened within the
Oil & Gas industry over the past
couple of years, the quest for asset
integrity have made significant
progress. However, much still needs
to be done. Asset integrity relies
on many people doing many things
right and we all know how difficult
this could be. From maintenance to
engineering to inspection all the way
to data management, things could go
wrong, or worse, could be ignored.
In the words of Datuk Anuar Taib,
Vice President/CEO – Production
& Development, PETRONAS and
President, PETRONAS CARIGALI,
“with Asia Pacific predicted to be
a hub for global gas development
over the next five years, we need to
ensure there is strong asset integrity
management, based on sustainability
and HSE principles in all aspects
of our Exploration and Production
activities.” There are no truer words
spoken.
As the Asia Pacific region trundles
on to assume a more significant role
in oil & gas production, the need
for asset integrity management
becomes even greater. Derek Park,
an industry veteran and one of the
leading thinkers from Oil & Gas IQ
offered an enlightening perspective
on the subject in one of the articles
he’s written recently. Here are the
excerpts:
“In all organisations, it is easy to see
the big problems but few people are
even aware of the many other issues,
let alone able to develop effective
answers. How can we know if we are
vulnerable? These are just some of
the danger signs:
■ Staff across the organisation often
feel that their concerns about
plant integrity are not being taken
seriously. They feel that there
is little point in raising issues
because nothing will be done.
There is no process to help and
encourage front line staff to rectify
problems which are known to
them and that they could routinely
and legitimately deal with.
■ In many operations things happen
despite, not because of, the
formal procedures. There is a tacit
understanding that that the rules
have to be bent to get the job
done and managers simply turn a
blind eye. No attempt is made to
understand why this might be and
what should be done about it.
■ It takes a crisis or a disaster to
initiate change which is then led
by high powered enquiry teams
who drive specific but often
narrow actions ‘top down’ into
the business. There is usually no
understanding that the findings are
not comprehensive and that the so
To attend Asset Integrity Management Summit 2013, email enquiry@iqpc.com.sg or call +65 6722 9388

3. called ‘root causes’ are in fact just
the tip of a very big iceberg. The
real root cause of most incidents
is that organisations rely too much
on procedures and ignore many
things which the procedures do
not or cannot control.
■ Engineers and operations staff are
increasingly seen as a commodity
to be bought at the lowest price.
Little value is attached to acquired
local knowledge, informal staff
networks and basic loyalty.
■ When change comes, it is usually
developed with little involvement
from front line staff who, at best,
will be lukewarm to something
they see as an external imposition.
Programmes are usually expensive,
driven from the top and often
take months, if not years, to
implement. They are characterised
by big files of procedural theory,
special websites and huge roll
out exercises. Often by the time
the process reaches the front
line, management has moved
on to the next big topic and the
implementation, at best, becomes
a side issue, an irritant, a chore, or
maybe just a tick box exercise.
So what can be done? Many people
acknowledge a general problem but
unfortunately, few have the vision or
ability to see the solution.
If we accept that in even a well-run
organization, there are still many
problems, any one of which could
cause the next loss, then where do
we start? How can we design an asset
integrity system which is guaranteed
to identify and remedy all these
things? The answer is we can’t. There
is no inspection regime, database
and set of operating procedures that
can cope with absolutely everything.
We must do all we can to ensure they
are as good and effective as possible,
but we also have to recognise that
there will still be a shortfall. So what is
the answer?
Integrity systems are often seen as
standalone pieces of process that
run in parallel with operations. From
their point of view, staff sees them as
‘policing’ their activities rather than as
something which helps them improve
safety and performance. Staff should
see themselves as a key part of the
integrity process.
They should feel able to use their
local skills and knowledge to fix small,
routine problems as they arise rather
than wait and hope for the ‘system’
to deal with them later. We can only
hope to plug the many small but
critical gaps in integrity systems if we
take advantage of this local expertise.
This may require a different approach
from staff and management. It is
“with
Asia Pacific
predicted to be a hub for
global gas development
over the next five years,
we need to ensure there
is strong asset integrity
management, based on
sustainability and HSE
principles in all aspects
of our Exploration and
Production activities.”
not about suggestion schemes and
feedback forms but something much
more comprehensive. The good news
is that there are plenty of examples
of this being done successfully
and the even better news is that it
brings many other business benefits
alongside improved integrity.
Nothing happens in life unless people
take action. Even the best formal
integrity systems remain vulnerable
if staffs are not a central part of the
process. The eyes and actions of those
on the frontline offer the only hope of
plugging the inevitable gaps.”
To safeguard the oil & gas industry’s
assets and optimize the investments
that have already been made, every
stakeholder must recognize this.
About the Author:
Darwin Jayson Mariano is the Digital Content Manager and the Regional Editor - Asia for International
Quality & Productivity Center (IQPC), a leading producer of events and conferences for business leaders
around the world. You can contact him on Twitter @whoisdarwin or email darwin.mariano@iqpc.com.sg
Special Supplement
To attend Asset Integrity Management Summit 2013, email enquiry@iqpc.com.sg or call +65 6722 9388

4. Success Formula
To Optimise Oil & Gas Assets
Here’s the formula and the right questions to ask to increase the life of your
assets.
Find out where you are and where you want to go.
1.
• Have you established an asset management framework with
clear objectives and processes?
• How will you ensure consistent performance of assets,
throughout their lives and still deliver corporate objectives
profitably?
• How will you determine the criticality and value of assets?
• Do you have a toolbox of techniques to manage all asset
related risks?
• How will you develop inspection, test and maintenance plans?
Learn how to get there.
• How will you execute inspection, test and maintenance plans?
2.
• How will you allocate roles and responsibilities to the right
people?
• Is there proper documentation and communication between
asset stakeholders?
Evaluate the actual performance.
3.
• How What tools or processes are you using in assessing and
improving performance?are you monitoring and managing
deviations?
• What tools or processes are you using in assessing and
improving performance?
• How can you continually improve the performance of the Asset
Integrity Management System with the data collected?
Conduct thorough review of operations.
4.
• Have you achieved your objectives in your asset integrity
management process?
• How can you perform even better next time?
• What went wrong?
• What needs to be changed going forward?
• How will these results, help solidify resources, competency
needs and the processes needed for the asset’s life cycle?
To attend Asset Integrity Management Summit 2013, email enquiry@iqpc.com.sg or call +65 6722 9388

5. 24 Pillars that Make
a Winning Asset Integrity Management/HSE Strategy
1.
Performance Management
The strategic and integrated
approach to increasing the
effectiveness of companies by
improving the performance
of the people who work in
them and by developing the
capabilities of teams and
individual contributors.
5.
6.
2.
3.
4.
Knowledge Management
We are told that knowledge
is information and data put
into context. KM strategies
comprise a range of practices to
identify, record and distribute
best-practice insights and
experience across verticals.
This is especially important to
the oil & gas industry with the
Great Crew Change looming.
Communications
Both internal and external
communications are crucial in
management and seeding of
strategy and message on all
rungs of the corporate ladder.
Good communication can
be summed up as a winning
combination of “The Four
Ms” – Message, Messenger,
Meaningful and Medium
Continual Improvement
Process
Pioneered by W. Edwards
Deming, this is an approach
that centres on optimizing
whole systems rather
than treating problems in
isolation to foster continuous
performance improvements.
7.
Competency
The behaviours and technical
attributes that individuals must
acquire to perform effectively in
their role. This can be nurtured
and monitored through a
competency framework and
competency-based review.
Information Management
The organization of and control
over the structure, processing
and delivery of information.
Procurement
The acquisition of goods or
services of the best quality for
the best price. In oil & gas,
more than other industries,
procurement is governed by
state-specific local content
quotas that demand a certain
percentage of goods or
services be sourced from
indigenous national providers.
8.
Logistics
The precise management of
the flow of goods, information
and other resources from the
point of consumption.
9.
Planning & Scheduling
If logistics is the process of
getting things and people
from A to B, planning and
scheduling is ensuring that
tasks are timetabled and occur
with snap precision at an
allocated time.
10. Contract Management
Negotiating contracts
with
clients, vendors, partners
or employees and ensuring
compliance with the terms and
conditions stipulated therein.
11. Shutdowns & Turnarounds
The deliberate, methodical
and periodic suspension
and restart of operations at
a facility for the purpose of
essential maintenance.
12. QA/QC
Quality Assurance (QA) is the
systematic process of ensuring
a product or service is meeting
mandatory requirements.
Quality Control (QC) is the
activity of providing evidence
needed to establish quality in
work, and that the activities
that require good quality are
being performed effectively.
13. Materials & Inventory
Management
The control, tracking
and distribution of stock
throughout an organization.
Increasingly, real-time Radio
Frequency Identification (RFID)
and e-tagging technologies
are becoming prominent in
the oil and gas industry in this
regard.
14. Reliability Management
The practice of maintaining
the ability of a system or
component to perform its
required functi ons under
stated conditions for a
specified period of time.
Special Supplement
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6. 24 Pillars that Make
a Winning Asset Integrity Management/HSE Strategy (continued)
15. Change Management
The structured approach
involving the transitioning
of individuals, teams and
organisations from a current
state to a desired one, whilst
minimising the impacts on
employees and maintaining
business continuity.
16. Process Safety Management
Major disasters are rarely
caused by a single failure,
but are a result of multiple
malfunctions. PSM must be
integrated into all areas of
design, management and
operation of equipment to
avoid the perfect storm of
coinciding mishaps.
17. Security
Safeguarding the physical
security of a facility and security
of supply is as important
as upholding reliability of
process, especially in the
political climates in which the
oil & gas industry operates.
18. Regulatory Compliance
Adherence to the legal
tenets set out by national and
supranational governmental
and regulatory bodies.
20. Equipment Maintenance
Preventive and reactive upkeep
of essential operational
machinery, including periodic
repair strategies and cleaning
regimes.
21. Site Ownership
Whether this is a national
or regional jurisdictional
issue, this will consist of the
apportioning of responsibility
at a solely or jointly owned
facility.
22. Unscheduled Loss
Mitigating the causes and
effects of an unforeseen loss of
hydrocarbons due to a breach
in primary containment.
23. Real-time operations
The ability to instantly analyse
data, troubleshoot problems
and make informed decisions
to optimize performance,
lower costs and lessen risk.
24. Forecasting
The accurate calculation
of hydrocarbon capacity in
terms of production, factoring
in asset capability and any
unscheduled shutdowns and
downtime.
19. Safety
The umbrella covering that the
physical assets involved in the
production process as safe to
use.
To attend Asset Integrity Management Summit 2013, email enquiry@iqpc.com.sg or call +65 6722 9388

7. Improving the Integrity of Piggable
and Non-Piggable Pipelines
to acceptable limits. Cross-country pipelines transporting petroleum & hazardous
materials pose grave danger not only to the business but to local inhabitants &
the environment. Some of the recent accidents on pipelines leading to spillage of
hazardous products, fire & explosions have resulted in huge loss to precious lives,
property & irreparable damage to environment. In my view, the most important
factors that can contribute to success of the integrity management plan are:
• Building integrity right from the design & engineering stage, maintaining the
same during operations till final de-commissioning.
• Following best international practices for pipeline maintenance & asset integrity
complying to all statutory requirements.
• Strict adherence to SOP’s/SMP’s, training & awareness of all stakeholders.
Alok Gurtu, Head - Pipeline
Integrity
for
Reliance
Gas
Transportation Infrastructure Ltd.
is presenting at the Asset Integrity
Management Summit Asia 2013
conference in Malaysia. To attend,
email enquiry@iqpc.com.sg or call
+65 6722 9388.
Excerpts of the interview with Alok
Gurtu, Head – Pipeline Integrity
for Reliance Gas Transportation
Infrastructure Ltd. Alok Gurtu has more
than 20 years’ experience in operation
& maintenance of pipelines including
cathodic protection. He established
pipeline integrity management system
in RGTIL and now has been tasked
to provide PIMS for other Reliance
Group Pipelines in India. Some of the
important assignments being carried
out presently are commissioning of
ICCP for EWPL, mitigating severe DC
& AC interference problems, intelligent
pigging of EWPL, detailed study on
debris analysis, repair & rehabilitation
program based on ILI findings. He has
been a member of PNGRB team in
formulating new standards for PIMS.
Darwin Jayson Mariano: In improving
the integrity of piggable and nonpiggable pipelines, what factors
contribute to success?
Alok Gurtu: Improving the integrity,
simply means lowering the risk of failure
DJM: What are the latest techniques in modern pipeline integrity assessment?
AG: For piggable pipelines, inline inspection or intelligent pigging using various
technologies like MFL, UT, eddy current or a combination of such NDT methods
depending on the type of flaws / anomalies one is expecting in the pipeline.
This technique is highly accurate & capable of scanning the entire pipeline of all
possible defects.
For non-piggable pipeline, direct assessment methods both for external & internal
corrosion (ECDA & ICDA) has been the most acceptable & widely used wwmethods
for integrity assessment. However, it suffers from its limitation of the inspection of
entire pipeline & relies on the inspection results of few dig verifications. The latest
techniques available nowadays are the intelligent tools that can be inserted from
one side or even from branch lines/fittings for inspection & internal photography
and can easily be retrieved. Long range ultrasonic testing (LRUT) is also one of
the good techniques for integrity assessment of non-piggable pipelines subject
to certain limitations depending on the type of external coatings, pipe material,
location, number of branches/fittings.
DJM: What are the new preventive measures employed by companies such as
Reliance that are useful for large diameter pipelines?
AG: RGTIL (Reliance Gas Transportation Infrastructure Ltd) follows the prescriptive
type IMS based on the best international practices & fully complies to all statutory
requirements of the country. Some of the best practices & latest techniques
followed by RGTIL as preventive measures to safeguard the integrity of the
pipeline are described below:
1. A combination of aerial , road & foot patrolling depending on terrain &
vulnerability
2. Continuous online monitoring of cathodic protection(CP) status through
SCADA
3. Field measurement of CP parameter by handheld CP Data logger, thus avoiding
human error & complacency
4. Inline inspection of entire pipeline within two years of operation for collecting
baseline data.
5. OFC based pipeline intrusion detection system(PIDS) for early detection &
warning of third party activities in vicinity of the pipeline
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8. Latest Techniques in Gas Leakage
Detection and Cathodic Protection
80000km in northern part of Pakistan. The factors to be kept in view for protection
against external corrosion attack are:
• Selection of appropriate coating material for buried MS lines.
• Selection of surface preparation methodology as per ISO/NACE standards.
• Design of cathodic protection system (impressed current/sacrificial anodes) as
per current drain requirements of connected pipeline in line with NACE and
ASME standards.
Selection of coating, being the first line of defense against corrosion attack, plays
an essential role in protection and it is supplemented by cathodic protection to
overcome imperfections and discontinuities during coating application.
DJM: What are the current techniques employed in gas leakage detection and
cathodic protection?
Amjad Mumtaz, Chief Engineer
for Sui Northern Gas Pipelines is
presenting at the Asset Integrity
Management Summit Asia 2013
conference in Malaysia. To attend,
email enquiry@iqpc.com.sg or call
+65 6722 9388.
Excerpts of the interview with Amjad
Mumtaz, Chief Engineer for Sui Northern
Gas Pipelines. Amjad Mumtaz is in-charge
of ISO9001-2008 certified corrosion
control centre that functions as a resource
centre for design of CP system, fabrication
of Air cooled Transformer Rectifier Units
for installation on CP system, Inspection
& Monitoring of CP system for more than
7000 KMs of Transmission & 60,000 KMs
of Distribution network through 1440
CP stations and more than 30,000 Test
stations. He is Vice Chairman of NACE
Islamabad, Pakistan Section since 2009.
Darwin Jayson Mariano: What are
the important factors to consider
in developing a surface protection
programme for a large scale piping
network?
Amjad Mumtaz: We are
protecting surface areas
of natural gas pipelines
of assorted diameters
ranging from ¾ in to 36
in diameter with a total
network of more than
AM: Our experience with underground leak detection has been based on two
kinds of instruments: 1) Flame Ionization gas leak detectors and 2) Laser based
gas leak detectors.
Flame ionization instruments were discarded due to erratic results and deficiencies
in survey methodology. At present, we are using laser spectroscopy-based gas
leak detectors with a sensitivity level of 1 ppm .The leak grading is based as per
criterion defined in ASME B31.8. We have successfully scanned nearly 50000 km
of our gas network and identified more than 100000 leaks of various grades. Flow
samplers are also being used to calculate volumetric impact of gas loss due to
these leaks.
Other technologies in the market are Ultrasonic and Smart ball technologies.
Some operators also recommend the use of sniffer dogs. The instruments based
on Infrared spectroscopy are also available in the market.
In order to protect our buried pipelines, we are using two kinds of cathodic
protection systems.
• Impressed Current Cathodic Protection system comprising of a dc power
source, high silicon chromium anodes (tubular or solid) and associated electric
circuitry as per design
• Sacrificial anode system comprising of Mg Anodes installed on the lines
if current requirement is less.
The protection criterion to meet CP requirement is as per NACE SP069 and ASME
B31.8.
DJM: Is it possible to compute the pipeline assets’ integrity in commercial
terms? How can this be done.
AM: In my view, it is difficult to compute asset integrity of any pipeline in commercial
terms. So far, we have guidelines provided by ASMEB31.8S code to manage all the
issues related to integrity of pipeline based on integrity management programs
established by the operator. The plans for integrity assessment, change management,
communication, quality and emergency response, if formulated after correct risk
assessment against all pipeline threats, can give an estimated commercial basis
for computation .Most of the operators are interested in remaining life calculation
of assets for future investments and core business instead of life cycle assessment.
Disclaimer: Please note that we do all we can to ensure accuracy and timeliness of the information presented herein but errors may still understandably
occur in some cases. If you believe that a serious inaccuracy has been made please let us know. This article is provided for information purposes only.
IQPC accepts no responsibility whatsoever for any direct or indirect losses arising from the use of this report or its contents.
To attend Asset Integrity Management Summit 2013, email enquiry@iqpc.com.sg or call +65 6722 9388

9. In Collaboration With:
Main Conference: 19-20 November 2013
Post-Conference Workshops: 21 November 2013
Venue: DoubleTree by Hilton Hotel Kuala Lumpur
ASSET INTEGRITY MANAGEMENT SUMMIT ASIA 2013: STRATEGIES AND
TECHNIQUES TO IMPROVE ASSET PERFORMANCE
Challenges Addressed Include:
• Developing A Multi-Vertical, Multiple-Asset Aim Strategy
• Designing A Lean Aim Model
• Implementing Hse Driven Aim Policies
• Integrating Aim Feedback Into Future Feed And Construction Practices
• Controlling Opex Through Effective Aim
OPENING KEYNOTE:
Datuk Anuar Taib
Vice President/CEO - Production & Development, PETRONAS
President, PETRONAS CARIGALI
Other Speakers This Year Include:
Alok Gurtu
Head - Pipeline Integrity
Reliance Gas Transportation
Infrastructure Ltd
Ho Bee Leong
Manager – Integrity
BW Offshore
Mohamed Daoud
Manager – Engineering & Projects (E & P)
ABU DHABI COMPANY FOR
ONSHORE OIL OPERATIONS
Nasrul Salman
Corrosion Specialist
Bumi Armada
Ngo Dinh Long
Engineering & Maintenance Manager
TNK VIETNAM B.V
Nigel Wayne Nichols
Custodian – Structural Integrity,
Maintenance and Engineering
PETRONAS CARIGALI
Rehan Ahmed
Trustee
NACE Doha-Qatar Section
Simon Ruston Taylor
Head - Engineering & Maintenance
PETRONAS CARIGALI
S P Garg
General Manager – HSE
GAS AUTHORITY OF INDIA LIMITED
Mohd Ashri Mustapha
TP Principle Pipeline – Technical Services
PETRONAS
Sridhar Gopalakrishnan
Senior Engineer - Materials & Corrosion
Dubai Petroleum
Zahrin Zain
PETRONAS
Sundralingam Muthanandan
Principal – Rotating Equipment
PETRONAS CARIGALI
Tommy Tang
APME Regional AIMS Business
Development Manager
DNV Software
Anoop Naik
Head, Planning
Reliance Gas Transportation
Jonathan Cook
Senior Consultant Business Development
ABB Consulting
Nirmal Pullikundram
Major maintenance lead
WOODSIDE ENERGY
Syahriman Shahir
Senior Integrity & Corrosion Engineer
Carigali - PTTEP Operating Company
Amjad Mumtaz
Chief Engineer
Sui Northern Gas Pipelines
Janin Girie
Head - Operational Excellence
PETRONAS
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