Short Description Of VAIL Plant Software

(RBI plus Inspection Data Management System)

Velosi Certification Services LLC

25 AUGUST, 2010

Velosi Asset Integrity Management Services

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

TABLE OF CONTENTS
1. INTRODUCTION (VAIL-PLANT) ....................................................................................... 4 2. PRESSURIZED EQUIPMENT MANAGEMENT SYSTEM (PEMS) ................................ 6 3. PRESSURE SAFETY VALVES INTEGRITY MANAGEMET SYSTEM (PSVMS) ........ 7 4. LIFTING EQUIPMETN MANAGEMENT SYSTEM (LEMS)........................................... 7 5. CIVIL INSPECTION MANAGEMENT SYSTEM (CIMS) ................................................ 8 6. FACILITY STATUS INTEGRITY REPORT (FSIR) .......................................................... 8 7. ELECTRICAL, INSTRUMENTAL AND ROTARY MANAGEMENT SYSTEM (EIRMS) 8 8. STRUCTURE INTEGRITY MANAGEMENT SYSTEM (SIMS) ...................................... 9 9. PIPELINE INTEGRITY MANAGEMENT SYSTEM (PIMS) ............................................ 9 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 WHY PIPELINE INTEGRITY MANAGEMENT? ............................................ 10 VELOSIS PIPELINE INTEGRITY MANAGEMENT SYSTEM ..................................... 10 BENEFITS AND FEATURES ....................................................................... 10 KEY FEATURES .......................................................................................... 10 DATA MANAGEMENT ................................................................................. 11 RISK ASSESSMENTS.................................................................................. 11 LONG TERM INSPECTION PLANNING AND MANAGEMENT ................... 11 SURVEYS RECORDING CATEGORIES ...................................................... 11 EXTERNAL CORROSION DIRECT ASSESSMENT (ECDA) ....................... 12 INTERNAL CORROSION DIRECT ASSESSMENT (ICDA) ....................... 12 STRESS CORROSION CRACKING (SCC) ............................................... 13

10. HULL INTEGRITY MANAGEMENT SYSTEM .............................................................. 13 11. WELL HEAD INTEGRITY MANAGEMENT SYSTEM ................................................. 14 12. CATHODIC PROTECTION & MONITORING SYSTEM .............................................. 16 13. KPI (KEY PERFORMANCE INDICATORS) SYSTEM .................................................. 16 14. ROOT CAUSE ANALYSIS (RCA) SYSTEM .................................................................... 17 15. ESTIMATED CORROSION RATE ANALYSIS ............................................................... 17 16. INSPECTION MANAGEMENT ( PIR MODULE) ........................................................... 17 17. SYTEM INTEGRATION/INTERFAC ING ....................................................................... 18 Page 2 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

12.1 12.2 12.3

SAP INTEGRATION AND INTERFACES ................................................................. 18 API RISK BASED INSPECTION SOFTWARE.......................................................... 18 DATA LOGGER ........................................................................................................... 18

18. INSPECTION SCHEDULER .............................................................................................. 18 19. MAINTENANCE PACKAGE ............................................................................................. 18 20. STANDARD REPORTS ...................................................................................................... 19 21. AD-HOC REPORTS (USER DEFINED REPORTS) ......................................................... 19 22. REFERENCE LIBRARIES ................................................................................................. 19 23. NORSOK M-506 CO2 CORROSION MODEL ................................................................. 19 24. INTEGRITY PARAMETERS TRENDS REPORTING .................................................... 19 25. SYSTEM USERS & USER GROUPS ................................................................................. 20 26. DATA RECORDING BUSINESS LOGIC.......................................................................... 20 27. SOFTWARE REQUIREMENTS ........................................................................................ 20 28. HARDWARE REQUIREMENTS ....................................................................................... 21

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SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

1.

INTRODUCTION (VAIL-PLANT)

Oil & Gas Industries need to manage a complex portfolio of risks. These range from minor events to major incidents that may involve serious personnel injuries, significant environmental damage or substantial financial impact. Globally, the Oil & Gas Industry has been relatively successful in managing major incident risk. Nevertheless, the challenge remains to reduce the likelihood of such events. This program is mainly developed for Oil & Gas Industry to maintain the records and reduce the risk (injuries, environmental damage etc.) of all the equipments in the plant. Plant contains Pressurized equipments, Pressure safety valves and Pressure relief valves, Tank, Vessels, Heat Exchangers, Heaters, Columns, Pipes, Reactors, Fin Fan Coolers, Drums, Structures, Boilers, Chimney, Flares, and Cranes etc. These equipments contains engineering data, operating data, analysis data, history data (Inspection, Failures and Replacements data) , inspection results and maintenance routine data. Risk Based Inspection is a method for using risk as a basis to prioritize and manage the efforts of an inspection program. An effective risk based program results in a reduced level of risk for a given level of inspection activity. In any operating plant, a relatively large percentage of the risk is usually associated with a small percentage of equipment. A Risk Based Inspection methodology permits the shift of inspection and maintenance resources to provide a higher level of coverage on the high risk items and an appropriate effort on lower risk equipment. Being risk-based, the method requires consideration of both the probability of failure as well as the consequences associated with failure. The methodology can be applied to process equipment, structures and pipelines. The main deliverable of an RBI study is an Inspection Program, describing: Prioritization of equipment items to inspect. When to inspect these items (inspection interval). Which method to use for the inspection.

The VAIL-Plant Software is developed as part of the Velosi Risk Based Inspection Services and intended to be used for: Risk ranking and risk matrix. Risk driving degradation methods. Probability of failure and consequences for each individual equipment item. Calculates consequence to personnel, environment, production loss and material damage for ignited and unignited leaks. Evaluation of the impact of changes in process conditions and materials on installation risk and inspection programme. Effect of inspection effectiveness and the number of inspections on the individual equipment item risk for a given period of time. Inspection guidelines and detailed equipment inspection plans can be derived. Inspection Plans generation based on engineering measures. Inspection History Management. Man hour resource planning of on stream & off stream Inspection. Inspection results analysis based on Reliability Data.

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SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

The development idea behind the VAIL-Plant is, How to manage all types of equipments of Oil & gas industries in effective software. It covers all the equipments in each separate modules based on their functional & operational features. There are following modules in VAIL-Plant: Pressurized Equipment Management System (PEMS) It covers Pipes, Column, Tank, Fin-fan cooler, Heat exchanger, Heater, Reactor, Vessel, Flares, chimney etc. Structure Integrity Management System (SIMS) It covers all type of Structures. Pressure Safety Valve & relief Valve Management System (PSVMS) It covers Pressure Safety Valves (PSV) and Pressure Relief Valves (PRV). Lifting Equipment Management System (LEMS) Civil Inspection Management System (CIMS) Facility Status Integrity Report (FSIR) Electrical, Instrumental and Rotary Management System (EIRMS) Miscellaneous Equipment Management System (MEMS) It covers POs /FOs, NRVs and other equipments based on the functions of plant. Pipeline Integrity Management System (PIMS) Hull Integrity Management System Wellhead Integrity Management System It covers all types of Pipelines and their components, crossings, joints & attached equipments.

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SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

2.

PRESSURIZED EQUIPMENT MANAGEMENT SYSTEM (PEMS)

The purpose of this document is to provide the PTT team with an overview of the Pressurized Equipment Management System Module scope of work, and the software solution capability. This includes the description of business processes and how a Velosis PEMS solution will enable these processes. Pressurized Equipment Management System includes the features: Engineering data capturing along with hierarchy management of the facility Risk assessment and inspection planning of static equipments as per API RBI Semi quantitative RBI methodology for risk evaluation and inspection planning against identified damage mechanisms compliance with API St. 580 Inspection history recording with respect to multiple positions and TMLs as well Failure and replacement history recording CP monitoring data recoding and evaluation. KPIs identifications and calculation/evaluations Short term/long term corrosion rate calculations Remnant life calculations based on minimum measured thickness Asset Integrity /RBI related documents management and capturing of drawings, isometrics, PFDs and P&IDs Reference documents attachment. Trends and console reporting Plant Inspection Requirements (PIRs) generation Root Cause Analysis (RCA) against failures Time, Cost & Resources (CTR) Management Data importing from excel workspace templates Risk Based Inspection (RBI) is a systematic approach to create an accurate, well targeted inspection strategy based on risk. The inspection plans developed are to mitigate the specific failure mechanisms identified. It is applicable to offshore & onshore installations such as fixed or mobile units as well as FPSOs and pipelines. The oil & gas, process industry handles a wide range of flammable and toxic materials which are potentially hazardous. To reduce the hazards to an acceptable level, the authorities through legislation, have imposed requirements on the management of plants and facilities, requiring it to demonstrate that it has identified the existing hazards and undertaken mandatory inspection and mitigation measures to prevent accidents. In the cyclic nature of the business, operators constantly find themselves having had to balance between meeting the regulatory requirements to shutdown and avoiding business interruption. Those plants that succeed in operating more efficiently and reliably will be better positioned to ensure long term survival and success. Increasingly, innovative asset integrity strategies such as RBI are being implemented to meet these goals. VELOSIs Asset Operations Process is based on a risk-based strategy for maintenance and inspection planning (i.e. time-based, condition-based, operational or corrective maintenance). These strategies are associated with company and plant objectives towards plant availability and safety. Risk-based methods like Reliability, Availability and Maintainability (RAM), Reliability Centred Maintenance (RCM) and Risk Based Inspection (RBI) can be used to rank systems and equipment and develop strategies for maintenance and inspection. Page 6 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

The outcomes from RBI and Inspection Management System; Risk ranking, risk matrix & pareto curves. Risk driving degradation methods. Probability of failure and consequences for each individual equipment item. Calculates consequence to personnel, environment, production loss and material damage for ignited and unignited leaks. Evaluation of the impact of changes in process conditions and materials on installation risk and inspection program. Effect of inspection effectiveness and the number of inspections on the individual equipment item risk for a given period of time. Inspection guidelines and detailed equipment inspection plans can be derived The benefits of RBI and Inspection Management System; Establish risk ranking among individual equipment items in order to optimise inspection efforts and reduce costs o All pressure equipment contains flaws o Most flaws are innocuous; just a few may cause critical failures o Those critical flaws must be found cost effectively Extend inspection intervals beyond statutory requirements Potential for reduction of production loss during turnaround inspection Increase confidence in equipment integrity Established path to regulatory approval
3. PRESSURE SAFETY VALVES INTEGRITY MANAGEMET SYSTEM (PSVMS)

VAIL-Plant has a module for pressure safety valves integrity management. It maintains; Hierarchy of the valve(PSV/ PRV) Design/engineering data Inspection history recording Risk evaluation Inspection planning Cost, time & Resource management
4. LIFTING EQUIPMETN MANAGEMENT SYSTEM (LEMS)

VAIL-Plant has the module for Risk Based Inspection of lifting equipments like cranes, etc. It includes, Hierarchy recording and management Design / Engineering data capturing Operational data recording Risk evaluation against identified damage mechanisms Inspection planning Reporting feature

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SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

5.

CIVIL INSPECTION MANAGEMENT SYSTEM (CIMS)

VAIL-Plant has a module for Management of Civil assets like Concrete Structures, Pipe Sleeper, Buildings, Fencing, Roads & Paving, Equipment Foundation, Pipe Track Foundation etc. It includes, Hierarchy recording and management Design / Engineering data capturing Defects Recording Risk evaluation against identified Defects Defect Assessment and Repair plan Cost estimation against Defected area Reporting feature
6. FACILITY STATUS INTEGRITY REPORT (FSIR)

VAIL-Plant has a module to see the overall facility status report against trips/failures, Anomalies, Backlogs etc. It includes, Hierarchy recording and management Each hierarchy level have divided into three groups (HSECS, HCS, Non HCS) Number of leaks for last 30 days and to date against hierarchy each level Number of trips/failures for last 30 days and to date against hierarchy each level Number of Anomalies for last 30 days and to date against hierarchy each level Number of equipments (Remnant life <2 years) for last 30 days and to date against hierarchy each level Number of equipments (Remnant life >=2 & <7 years) for last 30 days and to date against hierarchy each level Number of equipments (Remnant life >7 years) for last 30 days and to date against hierarchy each level Number of equipments (MTBF <3 years) for last 30 days and to date against hierarchy each level Number of equipments (MTBF 3-7 years) for last 30 days and to date against hierarchy each level Number of equipments (MTBF >7 years) for last 30 days and to date against hierarchy each level Backlogs Inspection activities for last 30 days and to date against hierarchy each level Backlogs PM activities for last 30 days and to date against hierarchy each level

7.

ELECTRICAL, INSTRUMENTAL AND ROTARY MANAGEMENT SYSTEM (EIRMS)

VAIL-Plant has a module of Reliability Centered Maintenance (RCM) for Electrical, Instrumental and Rotary equipments like Generator, Pressure gauge and turbine etc. It includes, Hierarchy recording and management Design / Operational data capturing Functional data recording Reliability operator and reliability generic data recording Failure mode and effect analysis based on equipment type Failure mode, effect and criticality analysis and their criticality matrix Page 8 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

8.

Plant Maintenance Routines (PIR) generation Work order and work packs generation Inspection history recording Maintenance history recording Failures and Replacements recording Mean Time Between Failures (MTBF) and Mean Time to Repair (MTTR) calculation Effective Reporting
STRUCTURE INTEGRITY MANAGEMENT SYSTEM (SIMS)

VAIL-Plant has the module for Risk Based Inspection of lifting equipments like cranes, etc. It include, Hierarchy recording and management Design / Engineering data capturing Operational data recording Risk evaluation against identified damage mechanisms Inspection planning Reporting feature
9. PIPELINE INTEGRITY MANAGEMENT SYSTEM (PIMS)

The purpose of this document is to provide the company team with an overview of the Pipeline Integrity Management Module scope of work, and the software solution capability. This includes the description of business processes and how a Velosis PIMS solution will enable these processes. Whenever the term Oil & Gas appears, it shall be interpreted to fulfill requirements of Oil & Gas Industry. The primary modules enabled by Velosis PIMS are: Pipeline profile recording and plotting Probability of Failure (POF) calculation and plotting along the pipeline (POF Vs TIME) against applicable damage mechanism Consequence of Failure (COF) calculation against applicable damage mechanism External Corrosion Direct Assessment (ECDA) Internal Corrosion Direct Assessment (ICDA) Risk assessment against third party damages Risk assessment against Stress Corrosion Cracking (SCC) Corrosion calculation (NORSOK M-506) Inline inspection analysis Asset management Scheduling of integrity management and inspection Cost, Time and Resources (CTR) management Standardized reporting features VAIL-Pipeline is a composite application designed for pipelines integrity management. VAIL-Pipeline provides a structured work process which allows the organization to define inspection strategies based upon Risk Based Inspection (RBI) principles. In addition, VAIL-Pipeline provides specific capabilities to evaluate and measure the effectiveness of inspection strategies using analytics which provides a closed loop, continuous improvement process. Page 9 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

VAIL-Pipeline provides a framework that allows conducting pipeline risk based analysis for components, sections and whole line as well. In addition the system is flexible, allowing clients the flexibility to configure a specific criticality matrix to suite their specific business process needs. VAIL-Pipeline will support the analysis and creation of inspection strategies that are to be implemented. The application will permit the reviewing and adjustment of strategies to meet additional or new requirements from the RBI analysis system. Contents of this document are confidential and proprietary.
6.1 WHY PIPELINE INTEGRITY MANAGEMENT?

Pipelines are subject to regular statutory inspections, verifications and re-certifications just as often as facilities containing and transporting hazardous products as well as pressure equipment. Until recently, such requirements have been enforced and have imposed pressure testing of oil pipelines to occur every ten years. Operators are now asked to have in place a comprehensive integrated Pipeline Integrity Management (PIM), which is more in depth than an inspection and maintenance program, but a management system encompassing engineering, operation, inspection, maintenance, HSE and Corporate communications.
6.2 VELOSIS PIPELINE INTEGRITY MANAGEMENT SYSTEM

6.3

VELOSI brings a wealth of experience in many integrity management related fields such as HSE, system certification, risk assessment, fitness for services evaluation, risk based inspection and maintenance. VELOSI brings together all the skills. Expertise, operation support and local presence to our clients the best PIMS available on the market. Its a best available solution for Pipeline Integrity Management that facilitates for both onshore and offshore pipelines. User friendly inspection management tool. Optimum inspection periods are formally obtained based on an implicit time dimension of risk.
BENEFITS AND FEATURES

Meeting customer needs is Velosis ultimate business objective. Main benefits and features of VAILPipeline can be summarized are as follow: Implements company specific inspection strategies and best practices Reduces risk for non-planned shut downs Increases reliability and availability Provides the management with an aggregated overview of asset integrity Scalable to meet company specific work processes and asset portfolio Common storage for all life cycle data Benchmarking internally or against external best practice
6.4 KEY FEATURES

The major functional modules of VAIL-Plants PIMS include: Data management Analysis tools and code checks Risk assessments Planning and inspection management Built-in library of form such as corrosion mapping, SSC Page 10 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

Dialogs based input forms, DCVG & CIP information recording, SSC & MIC information recording, Coating fault information Metal loss assessment Soil receptivity & pH values Event log Surveys & inspection results, Defect assessment & condition assessment Short term and long term inspection planning Dynamic reporting features. Key support functions include document management, integration interfaces and a project execution environment
DATA MANAGEMENT

6.5

Velosis PIMS is based on the PODS data model with an offshore/onshore extension to cater for offshore/onshore objects like e.g. risers and subsea templates. The database is enveloped by a security system and role-based access restrictions on pipelines and groups of pipelines ensuring integrity of information. A specifically powerful capability in Velosis PIMS is the dynamic segmentation of pipelines associated with varying profiles such as location classes, pipeline sections and other specific user definition. The dynamic segmentation function is essential to the effectiveness and flexibility of the system.
6.6 RISK ASSESSMENTS

PIMS module supports the semi-qualitative risk assessment methodology and provides selected quantitative risk assessment functions to qualify and document interpretations on the PoF scoring and resulting risk levels. Threats, CoF and PoF can be based on various segmentation principles, such as pipeline sections, location and safety class, entire pipeline and also refined, adjusted by the pipeline engineer. The resulting risk will be displayed along the pipeline for each projected year. The risk assessment for components and critical areas (hotspots) can be performed in both overview and detailed mode.
6.7 LONG TERM INSPECTION PLANNING AND MANAGEMENT

The inspection planning module provides the engineer with functions to define inspections targeted for the entire pipeline or some selected sections. The long-term inspection plan is calculated from a combination of the risk assessment results and the prescribed inspection intervals.
6.8 SURVEYS RECORDING CATEGORIES

Using the Velosis Pipeline Integrity Management Software, surveys can be recorded by segregating on the basis of desired outcome. The surveys monitoring parameters classification supported by VAIL-Plants PIMS module are: Metal loss single Anode depletion CP readings Vertical configurations Vertical out-of-straightness Feature findings Page 11 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

Component Observation Exposure Others

6.9

EXTERNAL CORROSION DIRECT ASSESSMENT (ECDA)

VAIL-Plants PIMS module covers the following ECDA surveys regarding inspection management & to analyze the likelihood and impact of pipeline failures caused by external corrosion. Soil Resistivity Analysis Structure to soil Analysis DCVG Survey ACVG Survey Pearson coating survey CIP (Close Interval Potential) survey Pipe to soil potential survey C Scan current attenuation Pipeline current mapper
6.10 INTERNAL CORROSION DIRECT ASSESSMENT (ICDA)

VAIL-Pants PIMS module covers the Internal Corrosion Direct Assessment regarding inspection management & to analyze the likelihood and impact of pipeline failures caused by internal corrosion. For ICDA the PIMS module has the capability be recorded the following necessary data for the pipeline: Construction Related Data o Removed taps o Locations of inputs and outputs to the pipeline o Year of construction o Locations of drips o Existence of flow coatings o Diameter and wall thickness o Length/Map o Location of compressors Elevation Profile (Topography) o Depth of cover preferred o Elevation changes from roads, rivers, drains, valves, drips Process Information o Change in gas flow direction Minimum and maximum Operating pressures o Gas flow rates - maximum flow rates at minimum and Maximum operating pressures o Liquid water flow rate o Liquid hydrocarbon flow rate o Temperature Maintenance Data o Pigging type and frequency o Presence of solids o Presence of glycol Inspection and Repair Data o Leaks Page 12 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

o Hydro test and ILI data if available o Replacement or sleeve repair o Dig site inspections Chemical Treatment o Years of treatment o Type of chemical (biocide, inhibitor) and properties (e.g., oil soluble) o Continuous or Batch (dosage and frequency) Sampling Data o Gas analyses o Solids o Liquids o Solids o Bacteria testing results Corrosion monitoring data o Coupons o Probes

6.11 STRESS CORROSION CRACKING (SCC)

VAIL-Plant has the module for POF, COF and risk assessment for stress corrosion cracking based on coating type, age and specified yield strength factor.
10. HULL INTEGRITY MANAGEMENT SYSTEM

Ship owners and managers strive to maintain a high level of structural integrity. The ship crews and shore staff perform inspections of hull structure on a regular basis to assess the hull condition. The inspection regimes require easy identification of problems. Besides owners, inspections and surveys are carried out by many agencies such as classification societies, insurers, vetting agencies, cargo surveyors, port state, coastal state and flag state authorities. All have an interest in the safe operation of the ship and ensuring that it is properly maintained. The effectiveness of these inspections is being continually challenged by the ever decreasing time that these vessels remain in port. In this paper a holistic, simple and quantifiable approach is proposed. This methodology employs the application of risk-based decision-making techniques. Risk-based techniques have demonstrated great potential in identifying key structural elements and focusing resources for maintenance and inspection. The proposed methodology for rationalizing the hull inspection program is via the development of a vessel-specific inspection program which includes a scoring system for identified inspection criteria and a list of target inspection areas (critical structural areas) for each compartment. The condition for each inspection criteria, depending upon the score, is displayed within the context of a simple traffic light system. This methodology can be applied by a trained and qualified owners representative. The scoring system can be utilized and analyzed to view the condition status of compartments, vessels, and a fleet. The scoring system also utilizes a system to trigger anomaly list generation, which can be used to manage the damages and repairs as well as create a repair list for future repair / drydock events. The shipping industry needs a rationalized approach to perform inspections of hull structure and a methodology on what to inspect, when to inspect, where to inspect and how much to inspect. The benefits of hull inspection are usually well answered and known to all the inspection agencies. Page 13 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

Traditionally ship owners and vessel managers have their in-house hull inspection schemes and programs to track, assess and maintain the hull structure. Inspections to assess hull condition are also performed by many agencies such as classification societies, insurers, vetting agencies, cargo surveyors, port state, coastal state and flag state authorities. The inspection module for Hull within VAIL-Plant has the following features/capabilities; A compartment is divided into zones similar to the area of consideration All compartments are divided into zones those can be inspected and graded for the inspection criteria Six inspection criteria have been identified for each compartment & these are inspected for each zone. Critical structural areas (if any) are identified for a compartment/zone based on engineering analysis and in-service experience. The inspection criteria are graded with a score (rating) from 0 to 6. A traffic light status (red 5 to 6, yellow 3 to 4, green 0 to 2) is assigned to each zone for each criterion. These scores are added for each zone and rolled up to get a normalized score for the compartment. A red signifies the presence of an anomaly which needs to be documented for resolution/rectification. Six inspection criteria for the Hull structure; o Coating Condition o General Condition o Pitting/Grooving o Deformation o Fractures o Cleanliness (House Keeping) System has the capability to identify the general inspection activities and inspection activities for critical area as well. Damage mechanisms identification for each zone & risk evaluation Inspection history recording Maintenance history recording Replacements history recording Failure history recording Hull Inspection Routines (Inspection Packs) definition and execution Reporting feature
11. WELL HEAD INTEGRITY MANAGEMENT SYSTEM

The objective of developing Well Integrity Management System (WIMS) is to provide standard guidelines to ensure that technical integrity of all the wells is maintained throughout their life cycle, they operate under safe condition and are capable to function continuously to achieve the targeted production/injection requirements. Well integrity is based on the establishment and maintenance of confinement barriers in the particular well. As per WIMS standards, a well is considered integral if at least two separate and sound confinement barriers across each flow path between the potential reservoir and surface are available all the time. WIMS very much emphasis on the problem prevention based approach (endeavour to predict & solve the problem before it happens) that can accommodate several direct advantages and benefits like Page 14 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

reduction in operating down time, enhancement in well control and safety aspects, minimized unplanned repair intervention & cost impact etc. Major well issues that impact on the technical integrity and operability of a well viz; Surface Completion Components (Wellhead & X-mass tree), Sub-surface Completion Components (downhole safety valve (DHSV), Gas lift valves, electric submersible pump (ESP), Well Construction (Casing & Annulus), Communication Problems, Corrosion, Scaling, Non-hydrocarbon Effluents / Products, Well Operation Suspension, Well Intervention Services (Electric/Slick Line, Stimulation, coiled tubing unit (CTU), Risk Management Process & Auditing System.

Many of the mature oil and gas production areas in the world are characterized by an aging well stock. Poorly maintained wells can be a potential threat to people and the environment and can result in economic loss through production deferment. At a time when high oil prices mean any downtime is bad news, has WI ever been more important? The inspection module for WIMS within VAIL-Plant has the following features/capabilities; Providing up-to-date information on the current well integrity status, Looking closer at the functionality, the information available for an individual well is divided into five main categories; Status assessments, operational history, well details, well monitoring and non-conformance logs. Each of these categories consists of a set of sub-categories, logically broken down into manageable chunks of information. The predefined key indicators are split into several status codes and give the user the means to properly describe the well situation. The predefined codes are: o Integrity Status The well risk status indicates the level of risk the well has been assessed to have. The integrity status is derived from risk assessment of the wells condition. o Well barrier status This principle implies that at least two independent and testable well barrier envelopes shall exist in a well. o Annuli status When an abnormal pressure behavior is detected and identified as a leak to an annulus, the annuli status should be assessed and the status changed. Pressure build up may be caused by e.g. a casing leak or micro annuli. o Valve status The valve status indicates the status of the safety valves in a well. These barrier elements are periodically tested and will constitute a major part of the well barrier. Customized reports on test information and test performance indicators are available as an add-on module. o Life cycle status The lifecycle status states the operational phase of the well, i.e. if the well is operating or handed over for workover / intervention or P&A. This documents the responsible department for the well integrity throughout the wells lifetime. VAIL-Plant (WIMS) offers the possibility to retrieve and present data from automatic and manual sensor readings available for the well, e.g. automatic A- and B-annulus pressure readings and manual C-annulus pressure readings. In addition to pressure, temperature, choke position, wing valve position may be retrieved. Page 15 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

For all available sensor readings, manual or automatic, the last read values are presented graphically in a gauge together with the defined alarm limits. VAIL-Plant (WIMS) enables the user to see trends in graphs, e.g. annuli and tubing pressures and temperatures. In this way, VAIL-Plant (WIMS) simplifies the process of establishing trend data for evaluation purposes. The graphs can also indicate other types of information such as the start-up of test activities or build in logic to determine if the well is shut-in or flowing. An important feature of VAIL-Plant (WIMS) is the possibility to store and present bleed-off and top-up pressure data for annuli. VAIL-Plant (WIMS) can in many ways be described as a portal to information relevant to well integrity management. As part of this, VAIL-Plant (WIMS) has included a category with typical background information to be used as input in well integrity assessments, e.g. completion data, handover documentation, completion schematics etc. In addition, the well details category is used to define the alarm limits in the well. These can either be connected automatically from existing systems or entered manually. An important part of VAIL-Plant (WIMS) is the ability to generate reports. In order to accommodate the different requirements, VAIL-Plant (WIMS) can easily be configured to generate customized reports. This combined with the ability to connect to and extract information in various company databases makes VAIL-Plant (WIMS) a very flexible reporting tool. Several add-on modules are available, e.g. Scale management and Tubing deformation. These modules will be customized to requirements.
CATHODIC PROTECTION & MONITORING SYSTEM

12.

Velosi methodology for CP System is classified into two parts: Data review & engineering works Field works- surveys, inspections and investigations Velosi has identified seven key steps to carry out evaluation & condition monitoring of CP system: Pre-Assessment study Preparation of methodology and procedures Technical audit of existing CP system installation of main pipelines & performance assessment of Tank Form area, Pump stations facilities and associated piping network On/Off potential survey, CIP survey and line current survey Visual Inspection of Heat Shrinkable Sleeves.
13. KPI (KEY PERFORMANCE INDICATORS) SYSTEM

The following features of VAIL-Plants KPI module are described given below: The system has capable to incorporate standard industry metrics such as Mean Time Between Failure (MTBF), Mean Time Between Event, Equipment Reliability, Equipment Availability as well as is flexible to allow user defined metrics based on the systems data and other external data sources. Supports metrics involving incidents and lost production. Enterprise-wide metrics for maintenance, reliability, safety, environmental, health, asset and financial problems Page 16 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

Support and display a multilevel performance scoreboard Support the building of Key Performance Indicators (KPI) and their display Support the graphical display of all metrics Alert company personnel when KPIs fall outside of established limits Provide configured KPIs for the company Provide automatic electronic interface to company production monitoring system to create production KPIs
14. ROOT CAUSE ANALYSIS (RCA) SYSTEM

The following features of VAIL-Plants RCA module are described given below: Analysis the different types of failures events such as environmental, health, safety or recurring equipment failures Support multiple fault tree development and display methodologies as configured content within the system Maintaining the database of Team members, team goals and critical success factors for the analysis Ability to define standard templates to help facilitate the analysis of typical or previously experienced failure events Ability to collect, store, analyze, print and report failure data for an analysis Ability to assign the task of collecting failure data to a team member and track any outstanding task by team member, group,, area or analysis Ability to visually analyze events by organizing failure modes, hypotheses and causes of an event through the use of a logic tree Charting tool to track the effectiveness of implemented recommendations Closed loop tracking recommendation tracking from within the RCA solution Ability to verify and communicate hypothesis to users.
15. ESTIMATED CORROSION RATE ANALYSIS

The following features of VAIL-Plants ECR module are described given below: Capable of calculating estimated corrosion rate according to applicable damage mechanisms of a equipment based on services. Capable of calculating susceptibility according to applicable damage mechanism.
16. INSPECTION MANAGEMENT ( PIR MODULE)

The following features of VAIL-Plants Plant Inspection requirements (PIR) module are described given below: Capable to manage inspection activities for all types of assets/ equipment (tags). The system shall allow performing inspections on groups of tags, platforms and corrosion loops. Allow users to plan, schedule and execute the PIRs. It automatically extracts inspection plans from SAP. Allow the users to create work scopes, work packages for execution of PIR on a tag or a set of tags (package like boliers, pipe). Drawings, documents, specifications, previous history schedule date, previous readings, previous anomalies etc. Allow monitoring process of the PIR Plan.

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SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES 17. SYTEM INTEGRATION/INTERFAC ING 12.1 SAP INTEGRATION AND INTERFACES

The following features of VAIL-Plants SAP Integration module are described given below: The VAIL-Plant have certified interface to SAP Support an interface with SAP Plant Maintenance and Financial Software System Capability to be configured for alerting based on preset criteria Support to interface bi-directional of notification/ work order data from SAP into the system bi-directional synchronization of financial data into system bi-directional synchronization of Location/ Equipment records from SAP to the system Notification/ work request creation based on the systems criteria and/ or user interaction Update to the systems location/ equipment source tables based on changes to SAP master data records, including movement of equipment from one location to another Automatically synchronize with SAP tag/equipment master data Capable to link to SAP work notifications and allow automatic creation of notifications Link from SAP work order completions and provide inspection costs Automatically interface to SAP preventive maintenance plans
12.2 API RISK BASED INSPECTION SOFTWARE

System has the capability to be integrated with API RBI V8.02/8.03 VAIL-Plant can fetches the RBI results data in batch from API RBI Database Pre-Requisites: Equipment Tag for which RBI results have to be fetched must exist in VAIL-Plant API RBI Database should be in SQL Server
12.3 DATA LOGGER

System has the capability to be integrated with Inspection Data logger. ULTRASONIC THICKNESS GAGE (38DL PLUS ) Spec. Dual and Single Element ransducers Rugged, designed for IP67 Thickness range from 0.08 mm (0.003 in.) to 635 mm (25 in.) Color Transflective VGA Display
18. INSPECTION SCHEDULER

An Inspection order goes through the following process to be executed; Planned against a RANGE of Dates Approved for Inspection Scheduled Pending (Before exc. Date) Scheduled-In progress (In 30 Days of Execution) Completed (On Work order Closing) Backlog (Passed 30 Days of Inspection Date) Cancelled (Cancelled)
19. MAINTENANCE PACKAGE

A maintenance order goes through the following process to be executed; Page 18 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

20.

Filtering out the Tags for Maintenance Planning Dispatch for Maintenance Work Order notification Filtering would work based on remnant life

STANDARD REPORTS

VAIL-Plant has the feature of built in standard reports those includes; Piping - Equipment Summery Sheet Vessel Equipment Summery Sheet Column Equipment Summery Sheet Heat Exchangers Equipment Summery Sheet Fin/Fan Cooler - Equipment Summery Sheet Heater Equipment Summery Sheet API 650/629 Tank Equipment Summery Sheet RISK MATRIX (VELOSI) RISK MATRIC (API RBI) Risk Ranking Summery Inspection History & Analysis Plant Inspection Requirements Replacements & Failures Reporting Leaks & Defects
21. AD-HOC REPORTS (USER DEFINED REPORTS)

User can query the data as per desire & export to *.xls format files. Query might be SAVED for future use.
22. REFERENCE LIBRARIES

System has the feature of adding the Reference Doc. Library i.e. SOPs Operating Manuals Drawings Piping & Instrumentation Diagrams Process Flow Diagrams GA Drawing Isometrics ARIMS Corrosion Model
23. NORSOK M-506 CO2 CORROSION MODEL

NORSOK M-506 CO2 Corrosion Model is available with in system to calculate/Assess the corrosion due to CO2.
24. INTEGRITY PARAMETERS TRENDS REPORTING

System has capability of reporting integrity parameters trends; graphical representation of following parameters is a static feature of VAIL-Plant; Leaks Metal Loss Page 19 of 21 VELOSI SOFTWARE

SOFTWARE SHORT DESCRIPTION OF VAIL - Plant RISK BASED INSPECTION AND INSPECTION PLANNING VELOSI ASSET INTEGRITY MANAGEMENT SERVICES

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Remnant Life Defects Replacements Risk Level Corrosion Rate

SYSTEM USERS & USER GROUPS

User Groups can be created and configured based on the Clients BUSINESS LOGIC Groups naming is not a hard & fast rule with in the system, only concern is the configuration User can be created and configured according to their concerned groups Normally naming convention for Inspection Management System USERS is INSPCTOR, ENGINEER & MANAGER Separate Role can be assigned to each system users based on the needs & can be assigned to a particular USER Group. Only system ADMINSTRATOR has the rights to CREATE, MODIFY, ENABLE/DISABLE, BLOCK or DELETE any user account

26.

DATA RECORDING BUSINESS LOGIC

INSERT: Inspector can flag to create a new record/Tag (STATUS: NEW) Engineer will review that Record/Tag (STATUS: REVIEWED) Manager have to Approve that particular record/Tag (STATUS:APPROVED) UPDATE: Inspector Can flag to modify the Record (STATUS: MODIFIED) Inspection Engineer will review the MODIFIED Record (STAUS: REVIEWED) Inspection Manager will approve that particular Record/Tag DELETE: Inspector will flag the Tag for Deletion (STATUS:DELETED) Inspection Engineer will review the flagged Record/Tag (STATUS:REVIEWED) Inspection Manager will approve the deletion of Record/Tag INSPECTION RECORDING: Inspector has the full rights to inspection recording to INSERT, DELETE & UPDATE ADMINISTRATOR has the full ACCESS RIGHTS to the system
27. SOFTWARE REQUIREMENTS

VELOSI VAIL-Plant software licenses will be required to meet the projects deliverables. Velosi software required to support the VAIL-Plant implementation will be provided under licenses agreement. In addition to Velosi software VAIL-Plant, third party software and SAP operating platforms will be required to successfully install, integrate and operate the Velosi solution. The details are given as under; Microsoft Operating System Windows 2000 or Xp that is needed even to operate SAP Any web browser supported by SAP Web Application Server, if not previously installed DotNet framework 3.5 Crystal Reports 10.x Page 20 of 21 VELOSI SOFTWARE

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SynFusion 2.0 SQL Server 2005 Windows Installer 3.1 CLIENT may desire Microsoft Office Suite tools like Excel, Word, etc. based on the end users needs.

HARDWARE REQUIREMENTS

Minimum: 1.6 GHz CPU, 512 MB RAM, 1024x768 display, 5400 RPM hard disk, Pentium processor or equivalent (Recommended) Recommended: 2.6 GHz or higher CPU, 2 GB RAM, 1280x1024 display, 7200 RPM or higher hard disk

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