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Journal of the Australian Petroleum Production & Exploration Association (APPEA)
RESEARCH ARTICLE (Non peer reviewed)

Maximising ROI through risk based inspection in the CSG industry

Andrew Mills A B , Kelly Reilly A , Timothy Lim A and Glen Strike A
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A Wood Group, 432 Murray St, Perth, WA, 6000, Australia.

B Corresponding author. Email: andrew.mills2@woodgroup.com

The APPEA Journal 57(2) 511-513 https://doi.org/10.1071/AJ16201
Accepted: 6 March 2017   Published: 29 May 2017

Abstract

Australia is forecast to become the world’s largest exporter of liquefied natural gas (LNG) by 2018, and to date, $70 billion has been invested into the Queensland coal seam gas (CSG) industry. These projects consist of tens of thousands of wells, each with a local facility to separate water and gas. From the separation facility, CSG is transported to compression and dehydration stations and water treatment facilities through numerous networks. Spread over an extremely large geographical area, this huge asset count presents a significant challenge to operations and maintenance personnel.

Within Australia, regulation requires operators to inspect new pressure containing assets within the first year of operation. Maintaining compliance with these regulations presents significant costs of finances, time and manpower for operators. Furthermore, travelling to these remote sites for inspection increases the risk of driving accidents, currently the number one safety risk for personnel.

This paper will address these challenges and discuss potential strategies for the optimisation of plant inspection and maintenance management. We will discuss how Wood Group has delivered innovative solutions to operators utilising technical engineering expertise, operational experience, understanding business constraints and delivering maximum return on investment (ROI).

Keywords: AS3788, asset management, coal seam gas, continuous improvement, deferment, in-service inspection, RBI, Wood Group.

A materials engineer by training, Andrew Mills has over 20 years’ experience in the fields of integrity, risk, maintenance and materials technology. Andrew has spent time developing, reviewing, auditing, and implementing integrity management systems in many countries. He has been with Wood Group for 15 years, including two years in Kuala Lumpur and seven years in Jakarta, and is currently based in Perth, with global involvement in Wood Group’s integrity management services.

Kelly Reilly is a degree qualified materials engineer with over 17 years’ experience in the fields of integrity engineering, failure analysis and asset management. Kelly has performed the role of global engineering authority, engineering manager and subject expert in his roles in Wood Group’s London, Perth and Brisbane offices. He has worked extensively in both offshore and onshore oil and gas industries.

Glen Strike is a degree qualified engineer, starting his working life as a diesel fitter. He spent many years with Queensland Alumina refinery, supervising maintenance teams, acting as the technical on-site interface with the insurance provider and led asset area teams, including utilities, rotating equipment and static pressure equipment. Glen also had maintenance management and supervision roles with Queensland Ports Authority and Mount Isa Mines.

Timothy Lim is a degree qualified integrity engineer with experience in programmatic RBI engineering. He has experience in providing technical integrity engineering support to production operations, comprising repair recommendations, FFS assessments, risk assessments retrofit project scoping, corrosion audits and HAZOP studies.


References

Standards Australia (2005). AS 4343–2005 Pressure Equipment – Hazard Levels. Standards Australia, Sydney.

Standards Australia (2006). AS/NZS 3788 : 2006 Pressure Equipment – In-Service Inspection. Standards Australia, Sydney.