11.2.1 asset integrity management (aims) well integrity management (wims) appr

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Asset Integrity Management Standard (AIM)

TABLE OF CONTENTS

1. Introduction 3

2. Purpose and Objectives 4

3. Scope 5

4. AIM Standard Elements:

Element 1 Leadership and Accountability 6 Element 2 Risk Assessment and Management 7 Element 3 People, Training and Behaviors 8 Element 4 Working with Contractors and Others 9 Element 5a Facilities Design and Construction 10 Element 5b Well Design and Construction 11 Element 6 Operation and Maintenance 12 Element 7 Management of Change 13 Element 8 Information and Documentation 14 Element 9 Community and Stakeholder Awareness 15 Element 10 Crisis and Emergency Management 16 Element 11 Incident Analysis and Prevention 17 Element 12 Performance Assessment, Assurance and Improvement 18 5. Appendix 1. Abbreviation and Definition 19-21

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1. Introduction Asset Integrity is fundamental to the Mubadala Petroleums operational principles, which are:

No accidents

No harm to people

No damage to the environment. Mubadala Petroleum undertakes oil and gas exploration and production in four strategic regions; the Middle East, Southeast Asia, the Caspian and Africa. Mubadala Petroleums vision is to be the leading Eastern Hemisphere upstream oil and gas company, which requires excellence in every aspect of its business. A crucial aspect of operational excellence and the prevention of major incidents is Asset Integrity. Sound Asset Integrity is an outcome of good design, good construction and robust operating practices. It is achieved when facilities and wells are structurally and mechanically sound, and are operated within their design envelopes. Asset Integrity Management (AIM) is now well recognized in the oil and gas industry as an important set of processes that, when methodically and efficiently executed, produce tangible benefits, including improved HSSE performance, reduction in loss of containment events, fewer unplanned outages and shorter planned shutdowns. These benefits will result in enhanced production performance and savings in inspection and maintenance costs. AIM processes also perform an important role in ensuring wells and plant are fit for purpose and providing confidence for extending operational life. The principal drivers for achieving Asset Integrity can be summarised as follows:

Local, national and international regulatory authorities HSE policies and standards.

Mubadala Petroleum HSSE Policy, Operations Management System (OMS) and associated standards.

Responsibilities to partners, stakeholders and the community.

Business performance and continuity.

Mubadala Petroleum and Mubadala Development Company reputation. In order to achieve this, Mubadala Petroleum shall:

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Retain highly qualified, competent and experienced professionals in key positions at all levels within the organization, who understand and actively manage the inherent risks associated with producing, processing and transporting oil and gas.

Create a culture throughout the Mubadala Petroleum organization such that the importance of AIM is clearly understood at all levels, including contractors, and AIM is incorporated into routine work practices.

Create a business environment in which emphasis is placed on the prevention of incidents and releases that could endanger company employees, contract employees, the public, the environment, or the facilities.

2. Purpose and Objectives This document provides the framework for the management and assurance of Asset Integrity within Mubadala Petroleum. This AIM Standard has the following objectives:

To specify a mechanism to ensure that Mubadala Petroleum operated assets remain fit for service and deliver the required safety, environmental and commercial performance throughout the asset life cycle.

To provide a basis for managing equipment integrity throughout the assets Life Cycle.

To demonstrate that systems are in place, or shall be implemented, to comply with corporate policies, technical and commercial objectives and regulatory requirements.

To ensure that AIM is focused on the equipment most critical to safety, the environment and business performance.

To be flexible to reflect operational experience and accommodate change.

To identify the Asset Integrity related requirement of the appropriate elements of the OMS and to ensure the efficient and effective implementation of those requirements.

Business Units (BUs) shall adhere to this AIM Standard throughout the asset life cycle. Deviations from this Standard must be approved by the Chief Operating Officer (COO), who shall consult with the companys respective Technical/Discipline Authorities as appropriate. A formal deviation procedure will be developed to ensure appropriate mitigations and controls are in place for the duration of the deviation, and that they are authorized by respective Discipline Authorities.

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3. Scope This document identifies the requirements necessary to effectively manage Asset Integrity. This shall principally be accomplished through the early identification of potential hazards and risk mitigation by the implementation of design, operational and procedural controls. This AIM Standard defines a system of requirements that shall be implemented in all Mubadala Petroleum onshore and offshore oil and gas BUs, and may be used as reference in all joint ventures and contractor-operated assets. Where national regulatory requirements are more stringent, they shall take priority over company standards. In such cases, the Standard document owner shall be notified to determine whether a document revision is required. This AIM Standard shall be applied to all exploration, developments/projects and production activities, as well as transportation, storage, offloading operations and supporting activities. The scope of this AIM Standard covers all engineered and constructed systems (including management and control systems, and procedures) from the reservoir to the point of custody transfer of hydrocarbons and associated products.

4. AIM Standard Elements This AIM Standard is arranged according to the relevant Elements of the OMS.

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Element 1 Leadership and Accountability

Objectives:

All leaders in Mubadala Petroleum must demonstrate commitment to fulfilling the requirements of this AIM Standard. Leaders will be held accountable for accomplishing this by demonstrating correct behaviours, by clearly defining roles and responsibilities related to AIM, by providing the required resources, and by measuring, reviewing and continuously improving our AIM performance.

Requirements:

BU management shall create a culture that promotes delivery of the requirements specified in this Standard.

Chief Operating Officer shall ensure that AIM is adequately resourced and remains so throughout the life of the asset.

BU management shall establish relevant AIM KPIs and objectives.

Mubadala Petroleum Engineering Authority shall formally appoint competent Discipline Authorities.

BU management shall commission a formal annual AIM review, which shall include a written report and gap elimination plans.

BUs shall establish a program of management site tours during which AIM issues form part of the agenda.

BU management shall ensure that their respective organizational structure is appropriate to support all AIM activities and associated roles and responsibilities are defined in job descriptions.

Chief Operating Officer shall ensure this Standard is reviewed and updated as appropriate within a maximum period of three years.

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Element 2 - Risk Assessment and Management

H

Objectives: The identification of hazards and effective management of risks is a fundamental component of AIM. Appropriate hazard identification and risk assessment tools and methodologies shall be utilized, as appropriate, throughout the life of the asset.

Requirements:

A Quantitative Risk Assessment (QRA) or Major Hazards Assessment (MHA) shall be developed and updated, where appropriate, for all hydrocarbon processing sites subject to major hazards.

All risks identified in the QRA/MHA shall be below, or brought below the Mubadala Petroleum risk acceptance criteria level.

Formal methods shall be adopted for process/technical hazard identification and risk mitigation such as HAZOP, HAZID and HAZAN.

Existing operations and new projects shall develop and maintain a risk register with associated gap elimination plans. These shall be updated periodically and regularly reviewed by management.

Vice President, Production & HSSE shall ensure an AIM assessment is carried out for all potential acquisitions, as part of the due diligence process.

All activities on site shall have an associated Task Risk Assessment or Job Safety Analysis or follow a formal procedure, and where appropriate, a permit to work.

The BU shall ensure that an effective Anomaly Management and Deviation Control system is established.

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Element 3 People, Training & Behaviors

Objectives:

To ensure our staff and contract staff are diligently selected, trained and competent with regard to the aspects of AIM within their job scope.

Requirements:

BU management shall ensure that technical competencies of all staff have been properly assessed.

All BUs shall have in place suitable operator and technical training programs which specifically include AIM related topics.

All BUs shall have in place contractor pre-qualification audits and ongoing contractor assessments.

All BUs shall have in place suitable staff recruitment and selection process, which includes, where relevant, assessment of candidates technical competencies.

Job descriptions, where appropriate, shall include relevant AIM responsibilities.

Job specific AIM competencies shall be identified and used to develop competency-based training programs and relevant staff competency assessments.

BUs shall implement suitable behavior-based programs that encourage the identification, correction and reporting of AIM related issues amongst others.

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Element 4 Working with Contractors and Others

Objectives: To ensure contractors, suppliers and operating partners have the capabilities and competencies to perform work for, or provide goods and services to Mubadala Petroleum, in line with this AIM Standard.

Requirements:

BUs shall have in place a contractor management process, which shall include as a minimum:

o Contractor selection process based on the work to be performed. o Regular contractor performance reviews and feed-back. o Close-out reports and assessments, where appropriate.

BUs shall have an effective contractor interface management plan.

BUs shall have in place suitable procurement processes to ensure that technical specifications of equipment are met.

BUs shall have in place a quality assurance program to verify that equipment received from manufacturers and/or suppliers, and plant constructed/fabricated by contractors fulfils relevant technical specifications and standards.

BU contract owners shall ensure this AIM Standard is effectively communicated to contactors and its requirements are being fulfilled.

For joint venture operators and joint operating companies, respective BUs shall have in place an influencing plan to encourage the operating entity to implement this standard.

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Element 5a Facilities Design and Construction

Objectives: To ensure new facilities and modifications to existing facilities are designed, procured, constructed and commissioned to enable safe, reliable and effective performance throughout their operational life; by utilizing recognized standards, procedures and management systems.

Requirements

When designing new facilities, the concept of safety by design shall be adopted.

All new developments shall commission and maintain a QRA or MHA at appropriate stages of the project, including major modifications to existing facilities. Identified risks shall be below or brought below the Mubadala Petroleum risk acceptance criteria.

HAZOP and HAZID techniques shall be utilized at relevant phases of the project (including modifications to existing facilities).

All new developments shall have an integrated project execution plan, which shall include relevant aspects of AIM.

BUs shall ensure that relevant technical studies and HSSE reviews have been carried out for all projects, so that facilities are properly designed and constructed. Examples include but are not limited to: corrosion, operability, maintainability, safety integrity levels (SILs), criticality, and meteorological and geological surveys.

BUs shall ensure that a suitable Management of Change (MoC) process is in place for all projects and all technical changes shall follow this process.

BUs shall ensure that appropriate technical codes and standards, including SILs, and lessons learned are adopted and properly applied during the design, construction/fabrication of facilities (refer to Mubadala Petroleum Engineering Standard).

BUs shall implement quality assurance programs to ensure technical integrity of facilities and equipment.

New projects shall follow the Mubadala Petroleum Stage Gate Process; associated peer reviews and PHSSERs shall include appropriate aspects of AIM.

Project teams, in conjunction with Operations shall develop, adopt and implement suitable pre-commissioning, commissioning and start up procedures.

Project teams shall formally identify the following project milestones; Mechanical Completion, Provisional Acceptance and Final Acceptance. Final Acceptance must be signed-off by an authorized Operations representative.

Project teams shall gather, collate and hand-over to Operations relevant documents relating to the project before start-up and before provisional acceptance, with particular emphasis on as-built documentation and drawings.

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Element 5b Well Design and Construction

Objectives: To ensure that all Mubadala Petroleum wells are designed and constructed to enable safe reliable and effective performance throughout the proposed life cycle; by utilising recognized standards, procedures and management systems.

Requirements

All new wells and sidetracks will comply with the Mubadala Petroleum Drilling and Well Engineering Standard

Planning of all new wells and sidetracks will follow the Mubadala Petroleum Well Planning Process

All Mubadala Petroleum well designs shall take into account the full well lifecycle, including any requirement for long term suspension, potential future production of exploration wells, conversion to injection wells and eventual abandonment at the end of the lifecycle.

All Mubadala Petroleum well completions and re-completions shall comply with the Mubadala Petroleum Drilling and Well Engineering Standard.

All Mubadala Petroleum well completions and re-completions shall be designed to enable full compliance with the Mubadala Petroleum Barrier Philosophy.

All completed Mubadala Petroleum wells shall be handed over to the department responsible for the next stage in the well life cycle with a documentation package that provides details of the as built well construction and clearly defined design and operating envelope information.

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Element 6 Operations and Maintenance

Requirements:

Formal pre-start up reviews shall be completed before new facilities are brought on line or where existing ones have undergone planned shutdowns

Operation and maintenance procedures/instructions shall be developed to cover operating scenarios and abnormal conditions

BUs shall implement a suitable maintenance, corrosion and inspection management systems commensurate with the asset integrity risks and life of the facility

BUs must establish an Anomaly reporting and tracking system

Safety critical equipment and systems shall be identified and maintained to ensure it will continue to perform its required function

Objectives: To ensure facilities and wells are operated and maintained safely, efficiently and within the operating and integrity envelopes throughout the life of the asset.

Requirements:

Formal pre-start up reviews shall be completed before new facilities are brought on line or where existing facilities are restarted after shutdowns.

Formal recording of all commissioning activities and plant performance at start-up shall be prepared jointly by Operations and project teams.

Operation and maintenance procedures/instructions shall be developed to cover expected operating scenarios and abnormal conditions.

BUs shall implement risk-based maintenance, corrosion and inspection management systems commensurate with the asset integrity risks and age of the facility.

BUs shall implement an operational upset or equipment failure reporting and analysis system commensurate with the asset integrity risks and age of the facility.

BUs must establish an anomaly and deviation reporting and tracking system.

Safety critical elements and systems shall be identified and maintained to ensure readiness to perform their required function.

BUs shall develop and implement key processes to minimize risk and maintain asset integrity during normal operations and interacting work activity. Examples include but are not limited to: Permit to Work, plant/equipment isolation procedures, risk assessment, SIMOPs, drilling and work-over activities, lifting equipment and lifting operations, MoC and emergency response.

BUs shall demonstrate legal compliance by developing a compliance matrix, which includes aspects of Asset Integrity.

All plant overrides shall be approved by the relevant authority and documented in an override register.

BUs shall ensure that all hydrocarbons processing/storage facilities undergo a HAZOP at least once every five years.

A well annulus pressure management program shall be developed to cover expected operating scenarios and abnormal conditions

Rig workovers and non-rig intervention operations and equipment shall comply with the Mubadala Petroleum Drilling and Well Engineering Standard.

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Element 7 Management of Change (MoC)

Objectives: To ensure all temporary and permanent changes to the organization, systems, procedures, equipment, materials or substances are evaluated and managed so that Asset Integrity risks arising from these changes are as low as reasonably practicable.

Requirements

BUs shall develop and implement an appropriate MoC process that assesses and mitigates Asset Integrity risks arising from changes.

BUs shall utilize appropriate techniques, such as HAZOP and risk assessment, to assess technical changes. Actions arising from these assessments shall be tracked to closure, the MoC remaining open until closure is verified.

BUs shall ensure that changes made and their consequences are documented, and effectively communicated to relevant persons and teams. Where appropriate, training shall be given concerning the change.

BUs shall ensure changes are approved by the relevant line management and Discipline Authorities.

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Element 8 Information and Documentation

Requirements:

Relevant AIM information must be stored and kept readily accessible utilizing a controlled document management system

Documents must be retained in accordance with legal requirements and good industry practice

Documents shall be updated timely when changes have been made

Documents shall be classified, stored , accessed and disposed of in accordance with their sensitivity

An effective system for data recovery shall be implemented and

regularly tested

Objectives:

To ensure appropriate and accurate information concerning all relevant Mubadala Petroleum activities is collated and maintained, and such information is held securely, yet readily available to authorized staff when required.

Requirements:

BU management shall develop and implement an electronic Document Management System (eDMS), which, as a minimum, shall contain all controlled Mubadala Petroleum documents.

All AIM information shall be stored and kept readily accessible utilizing a document management system. Data integrity must also be maintained.

Documents shall be retained in accordance with legal requirements and good industry practice.

Controlled documents shall be reviewed periodically. When changes are required, documents must be updated, approved and then re-issued.

Documents shall be classified, stored, accessed and disposed of in accordance with their sensitivity.

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Element 9 Community and Stakeholder Awareness

Requirements:

BUs will establish communication channels and methods with

respective stakeholders and communities to ensure good relationships are maintained

BUs shall establish a protocol for dealing with stakeholder and community concerns

Stakeholder and communities shall be notified in the event of an emergency situation, were relevant

Double check with Andy for this element

Objectives:

To ensure active engagement and dialogue with all key external stakeholders in order to maintain governmental and public confidence in the integrity of our operations and our commitment to HSSE performance.

Requirements:

BUs shall include key AIM information in the stakeholder management processes.

BUs will establish communication channels and processes to develop and maintain effective relationships with respective stakeholders, including local communities impacted or in close proximity to our operations

BUs shall establish a protocol for receiving and responding to stakeholder and community concerns

Stakeholders and communities shall be notified in the event of any emergency situation or operational activities that are likely to impact them or generate concern; stakeholder/community communications aspects should be specifically addressed in Emergency Response Plans.

BUs should also refer to the Mubadala Petroleum Working with Communities Policy.

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Element 10 Crisis and Emergency Management

Objectives: To ensure emergency management plans are developed, maintained and routinely tested for all of our facilities and locations. These plans will identify equipment, training and personnel necessary to protect the workforce, public, environment and Mubadala Petroleums reputation in the event of an incident.

Requirements

BUs shall develop and maintain emergency response plans and capabilities based on foreseeable emergency scenarios.

All facilities shall have emergency response teams capable of effectively dealing with foreseeable emergencies.

BUs shall develop and execute an exercise/drill program based on emergency response and crisis management plans. These exercises and drills should be assessed for effectiveness and corrective action taken, when necessary, to improve emergency response capability.

BUs shall ensure that lessons learnt from incidents (internal and external), exercises and drills are incorporated in to emergency response plans, where applicable.

For more information regarding this element, refer to the Mubadala Petroleum Crisis and Emergency Management Standard.

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Element 11 Incident Analysis and Prevention

zard reporting system

All Bus must implement, where appropriate, an anomaly

reporting procedure specifically focused on AIM issues BUs to adopt root cause analysis for incident/accident

investigation

All corrective actions arising from investigations etc must be

tracked to closure

Lessons learnt from incidents/accidents must be shared with other Mubadala Petroleum assets, and where appropriate, to a wider audience

Objectives:

All incidents will be reported, investigated and analyzed to prevent recurrence and improve performance. Investigations will focus on root causes and management system failures. Corrective actions and preventive measures must be implemented to reduce the likelihood of recurrence.

Requirements

BUs shall implement a suitable hazard reporting system.

BUs shall implement an anomaly reporting procedure specifically focused on AIM issues.

BUs shall implement a deviation reporting procedure specifically focused on AIM issues.

BUs shall adopt root cause analysis for incident/accident investigation.

All corrective actions arising from investigations and incident reviews shall be tracked to closure.

Lessons learnt from incidents/accidents must be shared with other Mubadala Petroleum BUs, and where appropriate, a wider audience.

BU management must provide sufficient resources to ensure that all corrective actions are properly designed and implemented.

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Element 12 Performance Assessment, Assurance and Improvement

Requirements

BU management shall ensure an annual AIM assessment is carried out to demonstrate compliance to this Standard.

Based on the annual AIM assessment report, a gap elimination plan shall be developed and executed.

Lessons learnt (internal and external) shall be analyzed and verified, and where applicable, incorporated into AIM processes.

BUs shall implement an action-tracking system that captures issues from various sources that are tracked to closure.

BUs shall establish an appropriate hazard reporting system which encourages the reporting of AIM issues.

BUs, in conjunction with the Production function, shall establish a suitable range of AIM-related KPIs as part of their performance contracts and report progress on a monthly basis.

Objectives: To periodically assess the implementation and compliance with this Standard to assure ourselves and stakeholders that AIM processes are in place and working effectively. This shall involve both internal and external assessments.

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Appendix 1. Abbreviation, Definition and Use of Language OMS Operations Management System AIM Asset Integrity Management BU Business Units QRA Quantitative Risk Assessment HAZID Hazard Identification HAZOP Hazard and Operability Study HAZAN Hazard Analysis MHA Major Hazard Assessment SIL Safety Integrity Levels MoC Management of Change SIMOPs Simultaneous Operations PHSSER Project Health Safety Security & Environment Review HSSE Health, Safety, Security and Environment KPI Key Performance Indicator Use of Language

When reference is made for actions to be taken, the intent of the following words is:

Shall, will, must means that an action is compulsory;

Should, would, if possible means that an action is not compulsory, but is strongly recommended;

May means that an action is optional and no recommendation is made whether or not it is to be carried out.

Asset An asset is defined as any equipment including wells, pipelines,

production & storage facilities, etc. belonging to the Company.

Well All tubular components, cement and valves from the formation face through the wing and annulus valves

Annulus The space between casing or tubing and the casing immediately

surrounding it.

Asset Integrity The ability of the asset to perform its required design functions effectively and efficiently whilst safeguarding personnel, the environment and production throughout its lifecycle.

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Asset Integrity Management (AIM)

A Mubadala Petroleum approved method of ensuring that people, processes, systems and resources essential to deliver asset Integrity are in place, are in use and fit-for-purpose over the whole lifecycle of the asset.

ALARP As Low As Reasonably Practicable. A level of risk that is tolerable and cannot be reduced further without incurring excessive costs which would be disproportionate to the benefits gained.

Asset Life Cycle The total period during which a facility or an asset within a facility, exists. It covers the time from initial design and construction through to decommissioning and site remediation.

Competence A person who has experience, knowledge, capability and aptitude to make a range of professional judgments with respect to their work scope.

Consequence The outcome of an event or situation expressed qualitatively or quantitatively, being a loss, injury, disadvantage or gain.

Criticality A rating given to an asset, which indicates the level of consequence if it were not available for normal use.

Deviation A controlled waiver to operate outside this integrity standard.

Hazard A source of potential harm, injury or degradation.

HSSE Policy Health, Safety, Security and Environment Policy.

Major Accident a) a fire, explosion or the release of a dangerous substance involving death or serious personal injury to persons on the installation or engaged in an activity on or in connection with it; b) any event involving major damage to the structure of the installation or plant affixed thereto or any loss in the stability of the installation; c) the collision of a helicopter with the installation; d) the failure of life support systems for diving operations in connection with the installation, the detachment of a diving bell used for such operations or the trapping of a diver in a diving bell

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or other subsea chamber used for such operations; or e) any other event arising from a work activity involving death or serious personal injury to five or more persons on the installation or engaged in an activity in connection with it;

Management of Change

The systematic process for managing deviations, permanent, temporary, or incremental, from a current established baseline. This includes changes to organization, processes, systems, plant and equipment, technology, documents, risks, legislation, commitments, obligations, other requirements, and external environmental, physical and social factors affecting or affected by Mubadala Petroleum.

Risk Assessment

The systematic evaluation of the degree of risk posed by an activity or operation. The process of using the results of risk analysis to rank and/or compare risk levels with acceptable risk criteria or goals.

Risk Management The systematic application of management policies, procedures, finite resources and/or practices to the tasks of analyzing, assessing and controlling risks to ALARP to protect personnel, the environment, assets and reputation.

Safety Critical Element

Means such parts of an installation and such of its plant (including computer programs), or any part thereof a) the failure of which could cause or contribute substantially to; or b) a purpose of which is to prevent, or limit the effect of, a major accident.

Discipline Authority

A person deemed competent and authorized by the Engineering Authority to give advice on technical aspects to process owners and others, and who reviews and approves key documents and assessments relating to their areas of expertise.

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11.2.1 asset integrity management (aims) well integrity management (wims) appr

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