Why Life Extensions Are a Hot Topic
For oil and gas industry professionals the concept of life extensions (i.e. working to lengthen the working life of a facility beyond the originally planned duration) may well be a frequent topic of conversation.
Ultimately, shifts in the economic climate, price volatility, rising construction costs, and emerging production methods have created conditions that differ significantly from those anticipated when the facilities were originally commissioned and their operational lifespan evaluated.
Our blog introduces the concept of life extensions, outlines the risks that senior engineers anticipate and manage during such projects, and highlights how we contribute to delivering safer and more efficient projects.
Why Extend the Life of Oil & Gas Facilities?
In the UK, the Financial Times reported that the Sizewell B nuclear plant may operate 20 years longer than planned. Meanwhile, Repsol Norge has recently been given regulatory consent to extend the life of a North Sea field.
Additionally, Bloomberg has covered the issue of oil infrastructure life extensions in its coverage of President Biden’s plans for the industry in the US.
Turning back to the industry itself, as early as 2020 some companies had already identified life extensions as a viable strategy even in the face of the widespread acceptance of decommissioning as the norm at that time.
Why the Sudden Rise in Life Extension Projects?
It comes down to a simple fact: shifts in costs, demand, production methods, and the overall financial landscape of oil and gas operations now make it possible to reassess the value of facilities once marked for decommissioning. In many cases, a well-informed calculation shows that continuing operations can deliver significant benefits.
A paper authored by Brian G Hudson of ABB Engineering Services and available from the Oil & Gas IQ website looks at this situation in more detail. It also lists the typical equipment deterioration factors to consider when assessing the cost and risks involved in a life extension project:
- Corrosion: “Particularly those arising from changing operations and production profile”
- Fatigue: “Particularly where corrosion and material loss results in stress increases”
- Creep
- Structural and fabric integrity
- Wear out
- Obsolescence
- Thermal induced deterioration
- Overstress as loadings change over time
- Blockage and choking: “Resulting in dead legs for corrosion and overstress”
- Explosion: “Which is an extreme view but often relates to inadequate management of risk from equipment in potentially explosive atmospheres”
The research also identifies a basic process for assessing equipment integrity as part of this process:
- Review history
- Assess further life
- Identify actions and associated costs
- Develop cost summary
- Collect data
Of course, the continued safe operation of a facility goes beyond the issue of equipment deterioration factors. That’s why SA Equip clients working on life extension projects will also take a number of additional factors into account when looking at the bigger picture:
- Safety management systems
- Structural integrity
- Fire and explosion
- Mechanical integrity
- Electrical and instrumentation
- Inspections
- Repair and Maintenance
- Asset integrity
- HSE risks
Brian G Hudson’s paper predicts that “a properly conducted asset life extension study will identify at least one ‘life threatening’ issue not covered by existing strategies and plans”: “Often these issues relate to perceived ‘non-core’ systems, such as HVAC, potable water or basic utilities. Failure of these systems can have as significant impact as other, more obvious issues presented by front line systems or equipment.”
Effective life extension planning plays a crucial role in ensuring facility safety. That’s why sourcing equipment specifically designed to support a safer and more efficient working environment is essential, as it helps minimise risks for the operatives carrying out the work.
Equipping for Safer Working
Working safely and efficiently on-site has so many benefits for a life extension project. That’s why we strongly recommend the hazardous area certified equipment to create the best possible working environment for operatives.
In particular, it is important to assess the benefits of using equipment certified to ATEX, IECEx, UKCA, and INMETRO standards:
• Portable EX lighting: Look for plug & play capability with enhanced illumination levels, wide light output and overall cost-savings.
• Portable EX power distribution: Features to seek out include the ability to choose from multiple configurations and practical considerations including shock absorbing performance and full fuse protection.
• Portable EX ventilation: The right rig can transform a hazardous, inhospitable environment into a safe and functional workspace. Find out how the right combination of hazardous-area certified fans, filtration units, ducting, and accessories can be deployed on-site for increased safety and efficiency.
• Portable EX heating: High-quality Ex heating equipment is essential for maintaining efficient operations and minimising the risk of equipment failure. It provides reliable protection for compressors, pipework, and pumps, with full plug-and-play capability for ease of installation and use.
For help to identify the ideal equipment selection for your life extension project simply contact an SA Equip EX equipment specialist for help. SA Equip brings over 100 years of industry-leading experience and innovation, built on a foundation of serving the most extreme environments in the shipping and oil sectors, to clients around the world.
