First RBI study - DNV Germany

oil&gas g
Photo courtesy EVC, UK
Information from Det Norske Veritas for the Oil, Gas and Process Industries No.3 June 2001
2
New EU requirements
affecting third-party
activities all over
Europe
4 6 First
Loss control
management for
Slovak Gas Company
EVC moves from
Compliance to
Commitment
see page 3
RBI study
on a plant under
construction

Industries face
a complex
balancing act
The process industry is facing a complex balancing
act to improve the safety of asset operations
while maximizing production at reduced
operating costs.
The industry has for several years been characterised
by restructuring and realignments, a trend
that is expected to continue. An integrated
approach is considered fundamental to achieving
optimal performance.
DNV has a track record in assisting customers
to increase uptime while improving safety.
We have developed a risk-based inspection (RBI)
methodology that has become a world standard
and is now one of several services aimed at
improving asset operations of refineries and
petrochemical industry. In all these services,
efforts focus on high-risk units while eliminating
low-value work.
Companies that have successfully implemented
RBI and RCM (reliability centred maintenance)
programmes have reported direct savings in
inspection and maintenance costs of up to
USD100 million annually, along with increased
reliability.
This issue of Oil & Gas News addresses some
recent asset-operation improvement projects and
a European joint-industry project that aims at
sharing risk-based maintenance and inspection
approaches across different industrial sectors.
Maarten Tichler
Manager Oil Gas and Process Industries
Region Western Europe
2 Oil & Gas News 3 – 2001
DNV engineer performing inspection and pressure testing
of a piping system at a chemical plant in Sweden.
Ensuring optimal performance
in petrochemical industry
DNV works closely with Swedish petrochemical plants such as
Shell, Preem, Scanraff, Borealis and Akzo Nobel. Inspection engi-
neers from DNV execute services in facilitation, inspection and
modification of the production plant.
Daily operation
One to four engineers from DNV
provide daily services, consisting of
recurring inspection of pressure vessels,
piping, storage tanks and other items.
When changes and repairs are done
DNV performs review of piping and
instrumentation diagrams, modification
inspections etc. according to the Swedish
regulations for pressure vessels and pressure
retaining devices.
New EU requirements
Shutdown
At shutdown and in new projects DNV
employs experienced inspection engineers
and other experts in order to keep
the shut-down time as short as possible.
The number of engineers needed varies
from 5-50 depending on the extent and
complexity of the shutdown.
The European pressure equipment directive, 97/23/EU–PED, is affecting national
regulations for third-party activities all over Europe.
In Sweden the ordinance for pressure vessels was changed from one to two publications
in 1999. Three new publications will supersede one of these in May 2002 when
PED and CE–marking are the only way for design review and manufacturing inspection
of pressure equipment. They will cover the following areas:
• Manufacturing of pressure equipment not covered by PED
• Inspection of Pressure Equipment
• Use of Pressure Equipment.
The changes will affect DNV and Swedish industry in many ways. DNV will cooperate
widely with the industry to meet the new regulations. Courses and further information
will be offered to all customers in Sweden.
The new requirements will come into force in 2002.
Charlotta.Pedersen@dnv.com

For many companies, the manage-
ment system is a document sitting
unused on the shelf. Experience
shows that lack of management
system implementation is a major
problem for organisations trying to
improve their safety, health and envi-
ronmental (SHE) performance. A new
mind-mapping technique might be
part of the solution.
Moving from
Compliance to Commitment
‘We needed a new approach to move
beyond ISRS (International Safety Rating
System) compliance and implement the
customised management system developed
with DNV,’ says Nigel Waghorn,
UK SHE manager in EVC (European
Vinyls Corporation). ‘The next step was
to translate the SHE standards into
action.’
EVC is Europe’s leading PVC (Polyvinyl
Chloride) producer. By joining forces
‘We needed a new approach to move
beyond ISRS compliance,’ says Nigel
Waghorn, UK SHE manager in EVC.
Mind-Mapping Technique
The mind-mapping technique pioneered with EVC is
designed to improve management system implementation.
It is based on three principles:
• SHE activities must be integrated into primary tasks of managing
the business if they are to be effective.
• Individual task responsibilities for SHE management must
be clearly defined, communicated and followed up for all
job roles in the organisation if they are to be carried out.
with DNV they have developed a new
mind-mapping technique linking people
and activities into individual action
plans. In this way they believe the implementation
phase will contribute to more
commitment by the whole organisation.
‘We are in the initial phase of adopting
the new system and will need a period of
time before we can say it is self-containing,’
says Waghorn. ‘However, the
process so far has proved to be very positive
as it has enabled us to see how all our
activities are related to each other. It contributes
to increasing the information
flow between people and departments.’
EVC is implementing the system into
their operational departments. Waghorn
believes the new technique can be used
in other departments such as finance and
human resources. However, for the system
to prove efficient, it depends on how
the organisation manages to establish the
links between the various activities. For
example, the training system must
address appropriate emergency training
needs before any emergency plans can
be implemented.
The new technique is being implemented
at EVC’s four sites in the UK. As
soon as the initial phase is completed,
implementation in other EU sites will be
considered.
Beate.V.Orbeck@dnv.com
• Management systems are typically described in separate
elements although in reality they are highly inter-linked.
The interdependencies between elements must be
described and planned for so that the necessary information
flows between activities.
For more information contact:
Chris.Urwin@dnv.com
Geoff.Farnell@dnv.com
EUROPE
The VC3 plant at Runcorn, Chesire, UK
EVC (European Vinyls
Corporation):
• Leading producer of PVC
(Polyvinyl Chloride) in Europe
• Ineos Capital Limited owns over
68% of the shares
• 8 sites located in UK, Italy and
Germany
• PVC production is used in
the building and construction
sector, and packing, leisure and
transport industries.
Oil & Gas News 3 – 2001 3
Photo courtesy EVC, UK

DNV was awarded a four-year contract to
help SPP establish the management system.
The project is headed by DNV`s
local staff in Slovakia supported by an
international team of experts from the
UK, Germany, Norway and the Czech
Republic. The scope of work is based on
an integrated loss control management
system including several modules (see
fact box).
Scope
The project started with a high level
review to analyse the situation and to set
4 Oil & Gas News 3 – 2001
EUROPE
Loss Control Management
for Slovak Gas Company
It is the first time the contractor, Linde
Engineering and Contracting in
Germany, has made use of risk calculations
in the layout concept instead of
using only engineering standards. A consortium
comprising Statoil, TotalFinaElf
and Gaz de France will own the LNG
plant.
One of the challenges facing the DNV
engineers was the requirement to per-
The Slovak Gas Company (SPP) decided in 1999 to establish an effective
management system by making use of loss control management princi-
ples. SPP is the principal provider of Russian gas to the European market.
up priorities for the
project. Four pilots were
selected for two compressor
stations covering environment
and safety, subsidiary
lines for environment
and such services as maintenance and
non-destructive control of the environment.
Three pilots were chosen from the
distribution division focusing on quality,
subsidiaries for distribution and producing
regulation stations and a distribution
subsidiary for the environment. Specific
goals were set up to prepare for the final
certification.
Main distributor
SPP is the principal provider of Russian
gas transportation through Slovak territory
to Western Europe, with approxi-
mately 80% of Russian gas deliveries. The
transition system consists of four lines
and in some areas a fifth line, in addition
to four compressor stations. SPP is
preparing for privatisation during 2001.
49% of the shares will be sold to foreign
owners.
Juraj.Kramara@dnv.com
DNV is developing risk-engineering expertise in the fast-growing
LNG (liquefied natural gas) market. A new LNG plant to be built in
the north of Norway has been subjected to extensive risk analyses
by DNV expertise from Belgium.
form an extensive escalation analysis for
a fire and fragmentation explosion.
Based on the results of this analysis, the
plant-layout design was refined to meet
Statoil`s safety requirements.
A taskforce of five engineers has been
responsible for these studies, which
involved Hazops in different stages of the
project, calculating safety distances,
developing a safe layout for the facility
Modules used for
the integrated loss control
management system:
• Quality (IQRS)
• Environment (IERS)
• Safety (ISRS)
• Contractor safety (ICCS)
• Operational Risk Management
Introductory Study
• Human Resource Management
• IT support
Risk study in
fast-growing LNG market
Risk contours for LNG
production facility
and conducting a full quantitative risk
analysis.
This project is one of several similar projects
in which DNV is engaged in risk
studies for LNG plants and terminals
worldwide.
Dirk.Roosendans@dnv.com

Kerteh Industrial Estate is one of the
largest industrial sites in Malaysia with
more than 25 plants on site.
The main objective of the IRA was to
perform an overall assessment of major
hazards that could affect personnel,
assets, productivity and impact on the
environment. Special consideration was
given to the complexity related to knockon
effects from one site to another, and
inter-dependencies of process and utilities
streams. The site comprises power
stations, refinery, petrochemical complexes,
and oil receiving terminal.
Inserting risk picture
DNV was selected to undertake the study.
The main tool utilised for the toxic and
flammable risk modeling was Safeti. The
advantage of using Safeti is that risk
results are easily inserted in the geo-
graphical map of the area. The model
can be updated to account for new
hazards, new population or any design
modification on existing plants. For business
disruptions spreadsheet models
were developed.
Optimised locations
The DNV study has been used to propose
relocation of new infrastructure such as
residential areas, public roads and nonindustrial
activities as appropriate. It has
been applied to optimise locations of
control rooms and administration buildings
by taking into account potential
hazard distances from toxic and flammable
events.
The inter-dependency evaluation between
ASIA
Kerteh Industry
goes for
risk assessment
The first integrated risk assessment (IRA) study has been successfully completed
in Malaysia. The country’s growing economic dependence on the petrochemi-
cal industry has required Petronas to commission an IRA study for the Kerteh
Industrial Estate.
various plants has been used to identify
required back-up supplies and export
abilities, in order to minimise any
business disruption in case of major
accidents.
Optimised emergency plans
Petronas is currently using the results of
the study to review and optimise the
common emergency response plan for
the area. Special emphasis is being given
to issues such as medical facility requirements,
alarm warning procedures and
evacuation requirements.
Kjell.Are.Vassmyr@dnv.com
Breakthrough for RBI Services
in Indonesia The demand for DNV’s risk based inspections (RBI) and other risk-
Pertamina, the sole oil-refinery operator in
Indonesia, is the first company in the country to sign
a contract with DNV to purchase the software package
tool ORBIT Onshore. In addition DNV will run
a series of RBI training courses and establish consulting
services for all Pertamina’s seven refineries.
management services is increasing in Indonesia, due to several unexpect-
ed events in petrochemical plants and refineries leading to shutdowns.
The first RBI consulting project has been completed
at Pangkalan Brandan refinery, while work at the
Balikpapan and Cilacap refineries is just about to
start.
Haris.Ranuamihardjo@dnv.com
Oil & Gas News 3 – 2001 5

NORTH AND SOUTH AMERICAS
First RBI study performed
on a plant under construction
DNV has completed the first risk-based inspection (RBI) study ever performed on
a plant under construction, the SINCOR C.A. Upgrader Refinery in Venezuela.
The objective of this project was to assist
SINCOR C.A. in optimizing its inspection
plans and strategy for the process
pressure vessels and piping before startup,
and to train its staff to manage its
inspection programme using RBI.
Forecasting risk
The RBI inspection planning process
included a forecast of the risks up to the
year 2010 in order to determine the minimum
inspection requirements for the
2006 turnaround. The idea is that any
equipment showing a risk by the 2010
turnaround that is larger than the
acceptable risk agreed by Sincor personnel,
should be inspected in the 2006
turnaround.
Baseline inspection
Because the upgrader-type refinery is
new, there was no inspection history
that could be fed into the RBI software
to determine inspection intervals. To
remove any uncertainties and increase
conservatism, Sincor and DNV personnel
agreed on criteria for a baseline inspection.
This was decided to obtain initial
corrosion rates and cracking susceptibilities
that would confirm the engineering
assumptions used for the study.
6 Oil & Gas News 3 – 2001
Knowing their boundaries
Maximum and minimum limits were also
identified for each of the operational
variables that drive the identified corrosion
mechanisms. Depending on the
damage mechanisms, these variables
included pH values, temperature, percentage
of ammonium bisulphate,
amine concentrations, fluid velocity, etc.
Identification of these variables will allow
plant operators to know their boundaries
and inform the inspection group when
they have exceeded these and for how
long.
Armed with this information, inspectors
will be better able to predict where a corrosion-damage
mechanism might be
developing.
Benefits
Once the inspection plans had been
reviewed and approved, they were
compared with an inspection plan
developed without RBI. The savings
from using RBI over the next four years
were estimated to be USD 4.54 million
for a ROI of 32 to 1.
For more information, contact:
Ricardo.Valbuena@dnv.com
‘With RBI, plants under construction are
able to identify where the risks are and
develop inspection plans to manage the
risks all from the start of their operations,’
says Ricardo Valbuena DNV Houston.
SINCOR is a joint venture
between PDVSA, Statoil and
TotalFinaElf.
It will transform very heavy sour
crude oil from the Orinoco Basin
into a lighter sweet crude for sale
to more typical gasoline-producing
refineries.
Camaçari improves safety management
Camaçari petrochemical
complex, Brazil
The Camaçari petrochemical complex, one of the biggest and most
important in Brazil, has commissioned DNV to perform risk assessments at
52 companies operating in the industrial complex.
‘This project will bring a significant improvement in safety management to
the Camaçari complex’, says Luiz Fernado Garcia Lampeiro, Polibrasil’s
superintendent in Camaçari.
Embracing all 52 companies within the Camaçari complex, the project
schedule is 30 months with an investment of USD 1.5 Million. The project
comprises training of personnel, identification, mapping and assessment of
hazards, risk assessments, recommendation of mitigation measures and the
implementation of risk management and reduction programmes in all companies
involved.
Jose.Pontes@dnv.com

Risk-based approach
to pipelines in North America
As a result of several fatal explosions in
pipelines lately, the U.S. Department of
Transportation issued a final rule requiring
hazardous-liquid, including crudeoil,
pipelines with over 500 line miles to
complete integrity management plans,
including risk assessment, by 31 March
2002. Operators must identify all highconsequence
areas by 31 December
2001.
High Consequence Areas
Under 49 CFR 195.452, pipeline operators
must identify all segments of their
pipes that travel through High
Consequence Areas (HCA). HCAs contain
any or all of the following sensitive
AUSTRALIA
NORTH AND SOUTH AMERICAS
New pipeline regulations require integrity-management systems and risk assess-
ment for hazardous liquid pipelines over 500 miles. DNV is performing the first
environmental risk assessment under the new scheme on a new pipeline project
in the U.S. Gulf of Mexico.
receptors: high population areas, other
population areas, commercially navigable
waterways, and unusually sensitive
areas. Once the HCAs have been identified,
the operator must conduct a risk
assessment of its pipeline going through
the area. Operators must also demonstrate
they have an integrity management
system in place to ensure that pipeline
failure risks are minimized.
DNV supported the American Petroleum
Institute in the development of the guidance
document for industry (API 1160)
on pipeline integrity management and
risk assessment.
The regulations are likely to be extended
to gas pipelines in the coming year. With
DNV’s solid background in both integrity
management and risk assessment, we
look forward to working with both liquid
and gas pipeline companies in the
future.
For further information regarding
pipeline integrity management programs
at DNV, please contact Mark Boult at
+1 281-721-6846.
Mark.Boult@dnv.com
Michelle.Kareis@dnv.com
Victoria complies with new
Major Hazard Regulations
DNV is developing pilot safety cases with several process-
industry clients in Victoria, Australia to help them comply
with the new major hazard-facility regulations.
The new regulations require operators
to demonstrate the adequacy of their
controls and safety-management systems
by means of a comprehensive safety case.
DNV is preparing pilot safety cases with
companies such as Qenos, Australian
Vinyls, Dow and Orica.
Teams of plant operators, engineers,
maintenance staff and DNV specialists
are working together to prepare pilot
safety cases for specific parts of each
facility, and to extend the methods to
other parts of the site and other facilities.
The objective is to exploit existing safety
knowledge and tools while at the same
time challenging the operator’s current
understanding of risk and the way it is
managed.
This approach enables all required skills
and expertise to be incorporated into the
process, providing robust results and a
tested method that can be applied to the
rest of the business. It is highly attractive
to operators of large, complex or
multiple facilities, where corporate,
economic and time constraints demand
that safety cases are produced efficiently
and consistently while ensuring that local
experience of the process is reflected in
the results.
Huw.Jones@dnv.com
Oil & Gas News 3 – 2001 7

16 organisations from eight European countries are represented in the EU-
funded Research and Technology Development project RIMAP. The project
is part of DNV's strategic research programme “Energy and Resources”.
The overall goal of the project is to
develop a unified approach to make riskbased
decisions in the field of maintenance
and inspection. This is particularly
important for pressure equipment when
the new Pressure Equipment Directive
PED comes into force in 2002. The present
PED does not address the in-service
phase, only the design phase.
The Swedish authorities have issued new regulations to ensure
the safe operation of nuclear power plants. These include permission
to use quantitative risk-based methods to select the sites
that are to be inspected and to determine appropriate inspection
intervals.
The new software package is called NURBIT (Nuclear RBI
Analysis Tool). The aim is to develop a software system that
enables quick and cost-effective procedures for evaluating risks
and costs in nuclear piping systems. The system’s central
parameter is to evaluate the risk of core damage if the core
should melt and the possible subsequent release of fission products
to the environment.
DNV is developing software and a cost-optimisation module.
The project is scheduled for completion in December 2001.
Bjorn.Brickstad@dnv.com
DNV services to the oil,
gas and process industries
We are helping clients within the
following service areas:
• Safety, health and environment
• Qualification and innovation
• Verification and
classification
• Asset operations
For further information,
see www.dnv.com/ogpi
8 Oil & Gas News 3 – 2001
EUROPE
European project on risk-based
maintenance and inspection planning
The main deliverables from the work
will be:
• A method describing a unified
approach to maintenance and inspection
planning based on risk-decision
criteria and cost optimisation
• Documented validation and testing of
the method within the industry sectors
represented in the project
Published by Corporate
Communications
Editor: Beate V. Ørbeck
Layout: DNV Graphic
Communications
Print: GAN Grafisk AS
• Guidelines for practical use in the
format of “workbooks” per industry
sector
• A technical framework for a European
standard for inspection and maintenance
planning.
Related links:
http://research.dnv.com/rimap
Gjermund.Vage@dnv.com
New risk-based software for nuclear plants
The Swedish authorities and nuclear power plants are co-operating with
DNV in developing a new risk-based software tool for the nuclear industry.
Det Norske Veritas (DNV) is an autonomous, independent Foundation with the objective of safeguarding
life, property and the environment. The DNV organisation comprises 300 offices in 100 countries, with
a total of 5,500 employees.
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5000/06/2001 Printed by GAN Grafisk Design by Det Norske Veritas Eiendom AS 0105-031