Asset Management in A Low Price Oil
Asset Management in A Low Price Oil
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Abstract
The most cost-effective solution to ongoing production in a low oil price environment is often to extend
the life of ageing producing assets past the original design intent. The offshore oil and gas industry
therefore faces the challenge of extending the useful production life of ageing assets whilst ensuring their
integrity. The challenges to increased life include ensuring integrity given potential modifications to the
floating or fixed assets, modifications to the loading design conditions over their service life, as well as
the cumulative effect of fatigue loading on key structural components. Operators and designers increas-
ingly have access to relatively low-cost, high-accuracy instrumentation systems that can be used to
monitor the loading and dynamic response of FPSOs and offshore platforms. This paper details a suite of
cost-effective ongoing health monitoring measures that can be used to extend the life of producing assets.
A design verification process is envisaged to validate original design assumptions and update them against
more detailed local site knowledge. Instrumentation can supply health-monitoring data that can be
analysed in close to real-time, and which can signal to operators the advent of elevated risk scenarios
requiring a higher level of intervention and inspection. This facilitates a methodology for applying
risk-based inspections to key components, under which production can be extended while relatively riskier
locations are targeted for priority inspections and, if necessary, repair or modification. The technologies
investigated here provide cost-effective methods for implementing the concepts of Mooring Integrity
Management (MIM) recently expounded by DeepStar®, as well Risk-Based Inspections (RBI). Use of
these procedures can allow safe, extended operation of productive assets beyond their original design life
at minimum ongoing cost. The techniques will be of significant benefit to offshore operators with ageing
assets, as well as to FPSO and fixed platform designers and contractors.
Introduction
The oil and gas industry faces the combined challenges of a low oil price environment rendering new
investment difficult, and maintaining ageing assets in still productive fields. Often the most cost-effective
solution is to extend the useful productive life of existing floating units (FPUs and FPSOs) and fixed
structures such as jackets and platforms. The key challenge for the industry is to ensure the integrity of
these ageing assets as part of any life extension, which must account for changes in both the loading
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assumptions and structural resistance of key components. On the loading side, changes can occur over the
service life in the assumptions and modelling of key loads imparted onto the asset, such as advances in
meteorological and ocean predictions that modify the basis of design. On the resistance side, the life
extension must take into account degradation of the asset, including the cumulative effect of fatigue
loading on key components. Only after developing a full understanding of the system and the risks of
different failures can the operator develop strategies to cost-effectively manage the risks of life extension
through targeted, Risk-Based Inspections (RBI).
There has been significant recent industry focus on managing moorings in a risk-based framework.
Industry surveys such as those conducted by AMOG for DeepStar® Project CTR11405 (Fontaine et. al.,
Figure 1—FPSO Mooring Failures Root Cause (DeepStar® CTR11405 Final Report).
Design, manufacturing and overload constitute 13% of failures and are conventionally covered by
design codes issued by industry bodies such as API and classification societies such as ABS, BV and
DNV.
● Only 1% of failures are caused by the environmental loading at the facility being greater than that
anticipated during design, indicating that this is an area that is largely understood and managed.
● 7% of failures are attributed to inherent design faults, which again indicates that codified practices
are minimizing this as a root cause of failure.
● 5% are attributed to manufacturing defects, which pertains to quality assurance of components and
is largely covered by classification society and industry codes and company quality assurance
protocols.
● 18% of failures are associated with installation and could be caused by inadequate engineering,
poor control of operations. Installation is a one-off event requiring its own detailed engineering,
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and any installation program should include detailed as-built surveys whereby damage arising
from installation should be detected and rectified as required.
● 69% of failures are associated with through-life degradataion mechanisms such as fatigue,
corrosion, mechanical abrasion and wear, in addition to failures attributed to multiple causes.
Whilst Figure 1 relates to FPSO mooring failures, it is anticipated that a similar proportion of failures
would be attributed to through-life degradation of fixed structures.
Through-life degradation mechanisms require continuous monitoring and inspection programs to verify
safety and integrity. Conventionally, inspection programs have focused on visual inspections by divers
● The first four columns of Figure 2 (Feasibility/concept, FEED, Detail Design and Fabrication)
represent 13% of failures.
● The next two columns (Installation and Commissioning) represent 18% of failures. At this point
the in-situ service life of the facility begins.
● The final column (Operation) represents 69% of failures, and the near totality of the service life
excluding decommissioning and abandonment.
It is however, instructive to recognise that inspection planning commences at FEED, whereby the
inspectability of the facility must be considered as inherent in the design. When moving to the detail
design phase, this is further developed with consideration of condition assessment. Commencing the
operational phase, whilst it is essential to maintain numerical models of the as-designed, as-built and
current state of the facility, major elements of integrity management centre around inspection planning,
inspections records and condition assessment. Given the prevalence of failures in the operational phase,
and the inspection and condition assessment requirements during the service life, consideration at an early
(FEED) stage of the inspectability of the facility is essential and can produce important savings. This
should be combined with consideration of the merits of continuous condition monitoring strategies that
can minimise ongoing expense while providing the necessary confidence in the structural integrity of the
facility.
Condition assessment is not solely a matter of periodic inspections, evaluation of inspection data and
planning for the next inspection campaign. Where serious anomalies or degradation are identified, it is
important to understand their immediate impact on the integrity of the facility (diagnostic evaluation), and
the projected condition with respect to the known rate of degradation (prognostic evaluation), necessi-
tating the through-life maintenance and upgrade of high fidelity numerical models of the facilities.
Figure 3 depicts the structure of the MIM system health monitoring approach, which relies on condition
monitoring and risk-based inspections and models to direct ongoing maintenance activities. The risk-
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based approach requires a very good understanding of the possible failure mechanisms of the various
components in the facility. It is then important to understand the ways in which controls can be put in
place to reduce the risk of failure from the various failure mechanisms. These may be controls that are put
in place at design, fabrication or installation phases. This also then leads into the method and frequency
of the inspection conducted on the mooring system. It has been proposed in the DeepStar® Guidelines that
for a new design it is important to consider the MIM strategy at the FEED stage or earlier, and to carry
verification activities further through the design and installation stages.
Another key item to consider is the need for either planned or unplanned replacement of the mooring
system through the design life of the facility, where such Emergency Response Plans (ERPs) are essential
risk mitigation measures to avoid catastrophic events and unnecessary production downtime. As part of
an ERP, this may influence the keeping of critical spares (bearing in mind long lead times for many items
and manufacturing obsolence), the maintenance of critical operational plans and equipment, and standing
contracts with vessel and subsea contractors and equipment suppliers. Unfortunately, many facilities are
designed for a once-only installation where they have not been engineered to enable change-out or to
facilitate ready replacement (i.e. as may be required for more rapidly degrading elements). A recognition
early in the design stage of such foreseeable events and requirements is essential to minimise cost in the
operational phase, particularly as the site-specific degradation mechanisms become more apparent.
Designers need to be provided with the information necessary to complete their mooring design, particularly
corrosion rates, and also there needs to be better guidance on the integrity management of mooring systems.
It is recognized that more inspections are not necessarily the answer, as this can be very costly, but also it can
lead to other problems such as inspection-related damage and increased corrosion rates due to cleaning.
Furthermore, it is not enough to simply have inspection data, but that data needs to be reviewed and the
inspection anomalies identified. Having identified the anomalies, their extent, critically and potential growth
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rates require characterization and their likely impact on the performance and/or integrity of the mooring system.
These should then form the basis of further inspections. The operator also needs to understand the impact of
the anomaly on the original design to understand if the design has been compromised.
Recent advances in the understanding of fundamental degradation mechanisms applicable to mooring
systems will allow for significant improvements in management of mooring system integrity. The SCORCH
JIP (Rosen et. al 2015, OTC-26017) and the Chain FEARS JIP (Rosen et. al 2015, OTC-26264) have provided
additional guidance to mooring designers in the areas of corrosion and remaining life strength estimates. The
SCORCH JIP has highlighted the importance of obtaining more accurate estimates in the corrosion rates and
demonstrated that one corrosion rate is not adequate for all locations. The SCORCH JIP also highlighted the
they occur, as a small change in displacement from a nominal mooring center is difficult to detect without
a reference point, especially when the facility is subjected to a sustained mean offsets due to the prevailing
metocean conditions. Upon review of industry practice, there have been many instances of mooring line
failure that continued undetected for periods of time. While in the cases reviewed a loss of station did not
occur, the risk of a catastrophic failure is greatly increased – it was fortunate that a second failure did not
occur which would have lead to a loss of station event.
Gumley et. al (2016) report on an advancement on this deck-based system, using an intelligent
⬙black-box⬙ system that employs machine learning algorithms to predict the motions of the floating body
by being trained with the measured metocean inputs and the FPSO response. Several algorithms were
investigated for this purpose, and two leading candidates, Kriging and Neural Networks (as shown in
Figure 5), performed well when used to predict complex multivariate systems such as offshore floating
vessels. Both learning algorithms were trained using metocean and GPS data from an operating FPSO.
The system was developed using data from two distinct phases; a phase where the mooring system was
degraded and a phase when the mooring configuration changed due to the repair of some of the mooring
legs. This mooring configuration change provided a distinct change in the systems, which was taken to
be analogous to a mooring line failure event. It would be expected that a change in vessel response would
occur due to a change in the mooring system configuration, especially if the system responds due to
second order wave forcing. Both learning methods were trained on a subset of the collected data and the
accuracy of each validated by a second distinct subset of the data, with the same mooring configuration.
Figure 5—Example of neural network diagram for mean East-West direction offset
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Both models were able to accurately predict the motions of the FPSO in the time and frequency domain, as
shown in Figure 6, with errors less than 10% for both mean and significant offset. Models that were trained
on the original data were then passed data for the changed mooring configuration. Both methods were able to
successfully identify the mooring system change by accurately predicting the motion of the FPSOs for the
mooring configuration they were trained on. The methods investigated were found to reliably predict the
motions of the FPSO as the learning algorithms provided a means of detecting changes in state of the mooring
system. These predictions using the studied learning algorithms provided a more robust means of continuously
monitoring the integrity of mooring systems for FPSOs and FPUs than subsea instrumentation systems or
resorting to real-time computing using classical hydrodynamic analyses.
Machine learning methods have significant potential for allowing operators to cost-effectively and
reliably monitor the condition of their moorings. In particular, this method requires only metocean
monitoring and a DGPS, both of which are easily installed on any floating platform on commissioning or
retrofit further into the platforms lifetime. Machine learning methods present a novel and reliable way to
predict the motion of a moored floating body on its mooring system, which is easily installed on ageing
systems. This prediction can be used to detect a change in the mooring system, and ultimately provide the
early detection of a mooring line failure.
Condition Monitoring Advances for Fixed Offshore Platforms
Just as for floating vessels, the industry faces a number of challenges in extending the useful production
life of fixed platforms whilst ensuring their integrity. Some effort has been made in (Seto, 1964),
(Vandiver et. al., 1982) and (Rodrigues, 2005) to more accurately ascertain key dynamic characteristics
of the structures, including multiple methods employed to characterize the directional effective structural
damping, with varying reliability in different sea-states and under different motion thresholds. The
motivation for measuring damping is to validate original design assumptions against more detailed local
site knowledge. Effective structural damping is heavily influenced by the foundation damping and the
effective structural damping levels can be substantially greater than those currently recommended in codes
and in the literature for steel jacket offshore platforms, e.g. 2% of critical for offshore jackets recom-
mended in API RP 2A (2005).
Herein are presented two successful life-extension programs that were conducted on the basis of health-
monitoring instrumentation for two fixed offshore platforms off the coasts of Western Australia and New
Zealand. Figure 7 is a schematic of a Well-Head Platform (WHP) in 100m water depth that was instrumented
with several accelerometers, and Figure 8 shows a schematic of an instrumented mono-tower in 52m water
OTC-27076-MS 9
depth. The instrumentation campaigns were for extended periods, enabling reliable trends covering multiple
seasonal cycles. For the WHP data was collected for the period of November 2009 to June 2014, while for the
mono-tower the data was collected for the period December 2011 to August 2013. One accelerometer
installation on the mono-tower is shown in Figure 9 and an antenna was installed on the mono-tower as shown
in Figure 10 to allow continuous logging of results and warning of dangerous loading scenarios for the operator.
The value of the damping used for structural assessment of both platforms was assumed to be 2% of
critical as recommended in API RP 2A. This was considered to be conservative and it was therefore
anticipated that higher damping values could be appropriate for use in both strength and fatigue analysis.
Instrumentation of the fixed platforms allowed validation of the dynamic response of the original
structural design model against in-field measured response data, in this case with regard to the natural
response period and the damping of the platforms. These dynamic characteristics were used to assess the
ongoing structural compliance of the platforms with both fatigue and strength requirements, as well as in
ongoing health monitoring to quickly alert the operators to loading scenarios which may present elevated
risk.
The data series were analysed using a variety of processing techniques to establish the natural
frequency of vibration in each orthogonal direction and the associated total effective structural damping.
The natural frequency being a function of platform mass and stiffness can detect changes in topside mass,
as well as changes in structural stiffness, such as may occur with damage, cracking and other forms of loss
of integrity.
For each platform, acceleration time histories were recorded in the NS and EW directions by two
accelerometers digitized simultaneously. The data was processed to displacements, and the natural period
of the platform in two orthogonal directions was calculated, as shown in Figure 11 for the WHP. The peak
hourly platform displacements were logged over time, as shown in Figure 12 for the WHP. With this data
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available to operators in real time, dangerous loading scenarios could be quickly identified, and inspection
frequencies could be modified based on past loading histories.
Natural Period
The natural period of the two platforms in the NS and EW directions that were calculated by taking the
peak spectral ordinate from the Power Spectral Density (PSD) are shown in Table 1. These were averaged
over the 2⫹ years for each platform, and are compared in Table 1 with the original natural period
calculations used in design. Salient points from the measurements of the WHP natural period included:
● For both platforms, the measured natural periods were significantly different to the calculated
values used in the initial design. As such, measuring the WHP natural period allowed a much more
accurate description of the system dynamics compared to the original calculation during the WHP
design phase. Figure 13 shows the difference between the measured and design values of the
natural period.
● Figure 13 also shows the correlation of the moving average of the measured natural period with the
results of an updated structural model that included the results of the dynamic assessment and changes
in topside mass. The average natural period shows remarkable agreement over time with the natural
periods calculated from the updated structural model. The increase over November 2009 to September
2010, and the decrease in February 2014, followed documented changes in topside mass.
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As such, instrumentation of the platform has been demonstrated as capable of validating topside mass
changes over time, as well as highlighting potential deviations from as-designed assumptions as the asset
ages.
Damping
Platform damping was calculated by the random decrement method, as described by Vandiver et. al (1982)
for damping of an offshore platform, and refined in Rodrigues (2005). Using the random decrement
method, the damping was calculated by finding the average of the log decrement of the first two maxima
of an averaged time signal for a range of displacement exceedance thresholds. The threshold levels were
chosen to provide consistent benchmarks for comparison of damping between the NS and EW direction
and to generate a sufficient number of events per hour according to Vandiver et. al 1982. The final results
for the damping calculation are shown for both the mono-tower and the WHP in Table 2. For both
platforms, the damping ratios for the NS and EW directions were significantly higher than the default 2%
critical recommended by API RP 2A for jacket damping. The increase in structural damping over the
conservative value based on API RP 2A recommendations that was employed in previous structural
assessments, when applied to the structural analyses for the platforms, has the effect of significantly
reducing the predicted dynamic response, and extending the predicted fatigue life.
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A spectral fatigue analysis was conducted to determine the fatigue life of the jacket welded joints under
ambient environmental conditions. The fatigue life of the WHP was assessed with respect to a target
fatigue life of 30 years, based on a design life of 15 years and a fatigue life safety factor of 2 for
failure-critical inspectable joints. Fatigue calculations included:
● Predicted fatigue life with consideration of the historic changes in platform configuration.
● Baseline fatigue performance of the jacket tubular connections and base to jacket connections
under ambient environment parameters.
● An assessment of the influence of measured marine growth levels on fatigue performance. A
The risk-based inspections outlined here were augmented by the additional information provided by the
ongoing information from the instrumentation on the platforms. This provided an ongoing health-
monitoring measure, in which dynamic behaviour of the platform was monitored for changes in behaviour
that could signal a decrease in structural integrity.
Conclusions
The oil and gas industry faces significant challenges associated with ageing assets in a sustained low oil
price environment. As such, considerable industry effort is focused on life extensions, and on maintaining
structural integrity with minimum cost, in particular through reducing the frequency and scope of
expensive offshore operations through risk-based inspections.
DeepStar® Project CTR11405 indicated that mooring failures are occurring at a far higher rate than
industry standards generally suppose, and there is clear evidence that conventional inspection and integrity
management practices have not prevented threats to system integrity arising from the design, construction/
manufacturing and installation phases from propagating through to the operations phase. Almost 70% of
failures occur as a consequence of through-life degradation mechanisms, as opposed to design overload
events, and consideration of condition monitoring from an early design stage is key to extending safe
operating life and saving costs. DeepStar® Project CTR11405 proposed several advances in mooring
integrity management and developed Model Guidelines for Mooring Integrity Management for permanent
mooring systems. These Model Guidelines for MIM serve as the foundation for future implementation of
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risk-based inspection planning for mooring systems. The framework for a risk-based inspection program
can be used by operators to meet the risk profile, as well as corporate and regulatory guidelines, for
floating and fixed facilities.
Some of the key benefits of instrumenting existing facilities, and anticipating instrumentation of new
builds during the design stage are:
1. Condition monitoring using above-water, real-time instrumentation obviates many of the reliabil-
ity and cost drawbacks inherent in conventional subsea instrumentation.
2. Instrumenting floating systems has demonstrated significant potential for allowing operators to
Acknowledgements
The Authors would like to thank the DeepStar® Floating Systems Committee chaired by Paul Devlin (Chevron
ETC) and the working committee of CTR 11405, championed by Amal Phadke (ConocoPhillips), Derrick
Laskowski (ConocoPhillips) and K.T. Ma (Chevron ETC). The authors would equally like to thank Vermilion
Energy Inc. and OMV New Zealand for allowing the publication of results. Finally, the authors would like to
acknowledge the support of the management of AMOG Consulting, and in particular the contributions from
Mr. Gary Farrow, Mr. Simon Dimopoulos, Mr. Kanishka Jayasinghe, Mr. Daniel Johnstone, Mr. Brent Paradis,
Mr Craig Dillon-Gibbons and Ms. Madeleine Henry in preparation of this paper.
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