ASSET INTEGRITY MANAGEMENT

IN THE MIDDLE EAST

Learn from the region’s leading operators on how to improve asset
integrity performance to optimise the commercial viability of assets,
enhance safety and improve equipment performance.

Copyright © 2014 IQPC Middle East. All rights reserved. Produced by IQPC Middle East in association with the 10th Annual Asset Integrity Management Summit 2015.
 OVERVIEW
Asset Integrity Management (AIM) is crucial for the oil and gas sector to ensure the reliability
of operations and the safe delivery of production targets. While established in the Middle
East for many years, emerging challenges such as high pressure high temperature and sour
environments, means that AIM’s importance and influence is further expanding in the region.

2. ASSET INTEGRITY MANAGEMENT IN THE MIDDLE EAST

 CONTENTS
Page 4 Asset Integrity Management in the Middle East’s Oil and Gas Sector

Page 4 Assessing the Key Challenges for AIM in the Oil and Gas Sector in the Middle East

Page 5 AIM & Design

Page 5 AIM & Compliance

Page 6 The Future of AI in the Middle East

Page 6 Summary

3. ASSET INTEGRITY MANAGEMENT IN THE MIDDLE EAST

 Asset Integrity Management in the As the vast, conventional sources of easy oil
Middle East’s Oil and Gas Sector and gas decline, many reservoirs are getting
more complex, with a real change in recovery
techniques, says Allan Grieve, Operations and
Successful AIM programmes incorporate design,
Maintenance Manager, Joint Venture Excellence
maintenance, inspection, process, operations, and
at Shell Development Oman.
management concepts, across people, plants,
equipment and other assets. And, in oil and gas,
He also highlighted how operators are also
best practice operations have comprehensive,
turning their attention to sour gas and high
fully integrated systems and a culture directed at
temperatures and/or high pressures (HTHP).
gaining greater lifetime effectiveness, value, safety,
availability, profitability and return from production
t Infrastructure complexity: With skyrocketing
and manufacturing assets.
global demand for oil and gas, the industry
across the Gulf continues to expand. As such,
It is recognised by industry professionals that
Allan Grieve says this growth brings with it more
investment in AIM has significant business impact
infrastructure and a system in the Middle
over the longer term by mitigating the financial,
East that needs to be managed.
environmental and reputational risks that result from
systems failures (by way of example, just think
“Infrastructure in the Middle East is aging and
of the repercussions of the Deepwater Horizon oil
becoming more complex; there’s a large
spill in the Gulf of Mexico in 2010). However, in the
amount of pipelines and flow lines…for
Middle East, despite an increasing understanding
example, if the number of flow lines here in
and appreciation for AIM at the management level of
Oman alone were placed end-to-end from
oil and gas operations, AIM professionals still face a
Muscat it would reach all the way to Los
number of challenges that are peculiar to the region
Angeles. As we have more kit, it becomes a
as they work to develop robust, world-class AIM
more complex job to manage it effectively
systems and processes. over the lifecycle,” he says.

“Infrastructure in Assessing the Key Challenges for t People: Increasing the awareness of AI processes
the Middle East is AIM in the Oil and Gas Sector in the across the workforce, and influencing mindsets
and behaviours, is also a crucial challenge to
aging and Middle East address for AI professionals in the region,
becoming more The GCC oil and gas industry has historically held
advises Alan Bickle, Head of Operations, Oman
Oil Company Exploration & Production LLC
complex; there’s a major share of the world’s energy supply and (OOCEP).
a large amount still contributes significantly to the growing global
demand for oil and gas demand. In fact, the Arabian
of pipelines and Peninsula has fuelled the global economy with oil for
While the issue is not specific to the Middle East,
a lower awareness level of AIM is more prevalent;
flow lines…for more than five decades. partly due to a relatively transient international
example, if the workforce of predominantly specialist contractors
As the industry here reaches maturity, a number of from disparate firms, and partly due to the fact
number of flow challenges are being faced by operators in the race that in the past, AI had not necessarily been high
lines here in Oman for efficiency and profitability. We’ve discussed AIM on the agenda of management boards here.
with experts including Allan Grieve, Operations and
alone were placed Maintenance Manager for Joint Venture Excellence
“We still have some work to do around
instilling the mindset of AI into the industry;
end-to-end from at Shell Development Oman, and Alan Bickle, Head to have it inbuilt into the culture of operations
Muscat it would of Operations at Oman Oil Company Exploration & so that it influences behaviours,” he says.
Production LLC (OOCEP), to understand how the
reach all the way delivery of integrated AIM strategies will help the oil Despite the challenge, Alan Bickle says the
to Los Angeles. and gas operators to mitigate risk as they work to issue is changing, with a growing awareness
As we have more address these challenges, which include: at the corporate level of the long-term positive
kit, it becomes impact that AIM strategies can have on the
t Aging assets and equipment: Investments in
business financially and reputationally.
a more complex supply and infrastructure technologies were
made a long time ago, hence these aging
job to manage it assets are reaching maturity and the end of
effectively over the their technical lifetime. There is a need to further
lifecycle,” extend the life of these mature assets beyond
their design life, while at the same time, ensuring
Allan Grieve, Operations and safe and efficient operations, both of which
Maintenance Manager, Joint Venture
Excellence at Shell Development can be difficult given the age of the assets and
Oman. equipment.

t Sour gas and HPHT: According to Scottish

energy consulting firm, Wood Mackenzie,
the major oil fields in the Gulf region have already
pumped more than half their oil.

4. ASSET INTEGRITY MANAGEMENT IN THE MIDDLE EAST

AIM & Design AIM & Compliance
As a relatively new operator in the region, with newly Grieve says that AI should be treated as importantly
built plants, Alan Bickle says his firm, OOCEP, has in your business as personal safety; it has to have
had an advantage in integrating AI best practice the correct leadership attention and understanding
into the business by addressing needs at the design of how important managing AI effectively is. Our
phase. The investment illustrates the growing workforce and communities should be safe, both at
influence of AI on the corporate agenda in the Middle work and at home.
East and has created world class plants, that “have
all the bells and whistles” needed for the successful He likens AIM’s procedural compliance, audits and
delivery of AIM. assurance to that of a speedometer in a car; they
are crucial and fundamental aspects for safe and
“AIM should absolutely be factored into the effective operation, ensuring that you have a clear
design of plants. In my past, when working for understanding of what improvements are required.
BP in the North Sea, we had AIM specialists
in at even pre-feed to ensure that the right “The AIM industry here is helping to drive higher
monitoring systems were in place and the right standards in the region and operators now
material selection was undertaken. The earlier increasingly understand that it costs far more to
in the design of a plant that AI is considered, the deal with a leak when it happens than it does to
better,” he says. manage the asset effectively in advance,” he says.

Bickle argues that AIM is such a specialist area “Businesses may try to scrimp and save but in
with regard to how and where operators measure the long term it can really hurt economically.
their plants, that to have AI experts in early in their For example, when the price of oil drops, people
development can impact their design, thereby might stop painting, only to restart when the price
saving time and money in the long run because of oil goes up again. But, regular measurement
where corrosion and erosion is most likely going to and maintenance is a must. You need to keep
take place would be assessed correctly, resulting investing in AI for long term sustainable results.
in having monitoring probes located in the correct Short ‘termism’ and underspend will expose itself
places. in the future as more corrosion and more leaks.”

“It’s much more difficult to put monitoring While, measuring the performance of plants,
systems in place once a plant is operating. Post equipment and other assets may be complex,
implementation is much more difficult – the risks with hundreds of thousands of items needing
are then that you didn’t do or you don’t do it to be monitored and maintained, having the
properly, which means you have the possibility correct systems and processes in place ensures
of unplanned problems, which can impact costs, measurement is carried out effectively and efficiently,
safety, development and the environment,” he he says. “We’ve invested
says. strongly in
This is particularly important when you consider that
Bickle says that as the AI industry and its influence in most hydrocarbon plants, more than one third of
having AI well
further grows in the Middle East, the mindsets of equipment is safety critical, the performance of which incorporated into
operators will change and, as OOCEP has done, all needs to be measured, with maintenance actioned the design of our
it will become standard practice to have AIM in a timely manner, where and when required.
incorporated into the design of all new plants in the plants, which
region. For Grieve, AIM processes are about mitigating are now world
operational risk, across plants and people. class. But, now
For OOCEP, having AI designed into its plants was a
priority. Now, it is about focusing on people and their “AIM and measurement ensures that you know it’s about moving
behaviours. where you are. The risk of not undertaking on to the culture
effective measurement is that you have things
Bickle says: “We’ve invested strongly in having AI happen to you that you’ve not predicted. You
of the business
well incorporated into the design of our plants, want to operate in a predictive environment, and the mindsets
which are now world class. But, now it’s about otherwise you won’t know that your safety critical of the workforce;
moving on to the culture of the business and the equipment will be ready to perform when you
mindsets of the workforce; the building in of AIM need it,” he advises. the building in of
systems and processes.” AIM systems and
However, Grieve warns that AIM and measurement processes.”
“The plant has all the hardware in place, and in must not only focus on assets and equipment to
the right place, to effective measure and monitor be effective. People and their understanding and Alan Bickle, Head of Operations,
Oman Oil Company Exploration &
its operation. If you don’t consider AIM at the practice of AI systems and processes also need Production LLC (OOCEP)
design phase then there’s always an element much investment of time.
of doubt as to if you have the measuring and
monitoring equipment in the right place. For “It’s about people knowing what they need to
us, it’s now about putting in the systems and do, making people chronically uneasy and aware
processes to impact mindsets, culture and of the AI consequences of not getting it right,
ultimately, behaviours.” through training and simulations, so that they are
constantly thinking about and are on the edge of
checking AI performance and health,” he says.

5. ASSET INTEGRITY MANAGEMENT IN THE MIDDLE EAST

 The Future of AI in the Middle East

For Allan Grieve and Alan Bickle, there is no doubt

that there will be a continued focus on AIM in the
Middle East’s oil and gas sector. AIM will embed itself
into all phases of assets’ life, from conception and
design, through to operations.

As AIM continues to expand and professionals look

to instil best practice in the region, Grieve suggests
that other sectors, not just the oil and gas industry
abroad, can bring lessons to bear.

“What I’ve found when it comes to AIM best

practice is that you can find best practice within
your own organisation and industry, in your own
country and also in other sectors, such as the
motor manufacturing and processing industries.
The nuclear industry is also very good at AIM; it
has to have robust AI systems in place. We can
learn and improve from the other industries that
are doing it better,” he says.

“What separates the best from the rest is that

the best do the basics really well. It’s the guys
who prepare and schedule according to plan.
It’s the people that paint according to a painting
schedule, who PIG the lines as they should, who
select the right materials, and have effective
and efficient operations and maintenance
programmes.”

Grieve cites Toyota’s Lean process as a further

example of AIM best practice that delivers efficiency
and also improves safety. Essentially, lean is focused
on making obvious what adds value by reducing
everything else. It is a management philosophy
derived mostly from the Toyota Production System.

Both Bickle and Grieve also agree that industry

cross-learning and open dialogue between AIM
professionals in the oil and gas sector in the region,
through conferences and events, will further aid in
the development of AIM best practice here.

Summary

As Middle East oil and gas companies seek to

successfully navigate the fuel demands of the
ever-changing global marketplace, AIM monitoring,
measurement and management is crucial to help
improve reliability, ensure safety and asset protection.
Effective AIM programmes should be implemented
“It’s about making during design and included in maintenance,
best practice inspection, operations, and people management.
common practice” As AIM in the oil and gas industry looks ahead to
grow and expand its influence, this will be best done
Allan Grieve, Operations and
Maintenance Manager, Joint Venture
through the sharing of best practice, in the Gulf and
Excellence at Shell Development internationally, so that oil and gas operators will be
Oman. able to maximise operations and mitigate challenges.

6. ASSET INTEGRITY MANAGEMENT IN THE MIDDLE EAST

 Host Organisation Strategic Host Sponsor

Join Orpic, Dubai Petroleum, Daleel Petroleum, ADMA, GASCO, ExxonMobil Research
Qatar, Doosan, DNV GL and many more to share learnings and best practice to improve
asset integrity performance at the 10th Annual Asset Integrity Management Summit
taking place from the 1 – 4 March 2015 at the InterContinental Muscat Hotel in Oman.

Visit [Link] for more information.

Copyright © 2014 IQPC Middle East. All rights reserved.

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7. ASSET INTEGRITY MANAGEMENT IN THE MIDDLE EAST