A Case Study on Setting up Pipeline Integrity Management System for a Small or Medium Enterprise Operator

Abstract

This paper is a case study on developing and implementing a pipeline integrity management system (PIMS) for a medium-enterprise operator in the Middle East. It explains the stepwise, collaborative, applied learning approach adopted by the operator’s focus group that helped to show the value proposition of the system to higher management at each phase. It further explains how this approach subsequently acted as a catalyst between project phases resulting in an operational risk-based PIMS. PIMS must address elements such as people (organized team of various disciplines contributing to the overall objective i.e. pipeline integrity management), process (standards, procedures, and policies on how to achieve the objective) and tools (resources to achieve the objective) to manage pipeline integrity. This paper describes the way BHGE (the consultant) and the operator have worked together and adopted a stepwise approach to address these elements to setup a PIMS within the constraints of a limited budget. The process consisted of PIMS gap analysis, development of PIMS manual and procedures and Excel-based comprehensive, semi-quantitative risk assessment, and is based on an effective contracting strategy that resulted in use of the PIMS consultant as a trusted partner. Pipeline operators fall into three common categories with respect to PIMS implementation: (1) those with large pipeline networks and substantial budgets for integrity management, (2) those with relatively small pipeline networks but relatively high integrity management budgets due to business-critical pipelines being part of the network, (3) those with a relatively small pipeline network and correspondingly small integrity management budget. This paper focuses on this third category of operators. Many challenges arise while implementing an integrity management system in any operation. This paper highlights these challenges and how they were resolved through knowledge transfer, a technical workshop, and an astute contracting strategy. It explains how the subject-matter experts (SMEs) from the consultant were used to manage the pipeline network through a risk-based approach before investing in in-house software tools and personnel. It also highlights the importance of a pilot phase which results in a detailed understanding of the scope and organization-specific requirements before deciding on major capital investment. It further explains how knowledge transfer and a cooperative relationship resulted in various stakeholders for the operator becoming brand advocates for the system. Also, the paper explains the practical steps adopted in setting up risk-based PIMS with a limited budget and how that could be used as a road map for other small-or medium-enterprise operators. And finally, it elaborates on the role played by the applied learning approach, knowledge transfer, inclusive relationships, a smart contracting strategy, and use of the consultant as a trusted partner to implement a risk-based PIMS with limited investment.