Corrosion Management System and Implementation of IMO PSPC on FPSO

1. SATUAN KERJA KHUSUS
PELAKSANA KEGIATAN USAHA HULU MINYAK DAN GAS BUMI
(SKK Migas)
PRIVATE AND CONFIDENTIAL
Corrosion Management System &
Implementation of IMO PSPC on FSO/FPSO
By Putu Indra Mahatrisna
NACE CIP Level 3 – Certified
Dept. of Marine & Transportation SKK Migas

2. 2PRIVATE AND CONFIDENTIAL
Agenda:
1. Indonesia Upstream Oil & Gas Marine Operation Overview
2. Corrosion Management System on FSO/FPSO
3. Implementation IMO PSPC on FSO/FPSO

3. 3PRIVATE AND CONFIDENTIAL
Indonesia Upstream Oil & Gas
Marine Operation Overview

4. Working Area Based on Water Depth
- 0 – 100 m = 204 Working Area
- 100 – 500 m = 26 Working Area
- 500 – 1500 m = 31 Working Area
- > 1500 m = 15 Working Area
Source: Ditjen Migas
Indonesia Oil and Gas Future is... OFFSHORE

5. PRIVATE AND CONFIDENTIAL 5
Daily Marine Fleet Controlled by SKK Migas
Total Fleet Operates in Upstream Oil and Gas Activity 2016 around 620 ships
0 20 40 60 80 100 120 140 160
AHT / AHTS
Flat Top Barge
Diving Support Vessel
FSO/FPSO/MOPU
Hopper Barge
Tug Boat / Terminal Tug / Harbour Tug
Sea Truck / Speed Boat / Fifi Sea Truck
LCT
Multipurpose Vessel / Utility Vessel
Oil Barge / Tanker
PSV / Supply vessel
Accomodation Barge/ Crane Barge
Crewboat, RIV, & Others
Jumlah

6. 6PRIVATE AND CONFIDENTIAL
Marine Daily & Annual Operation Expenditure (OPEX)
Note :
• Average Shipping Opex is USD 2,280,360,- /day atau USD 824,331,400,- /year,
includes Tangguh LNG Fleet with “Cost of Sales” mechanism.
• Above shipping opex exclude fuel cost, drilling ship opex, ship to support
EPCI, and survey seismic vessel or G&G.

7. 7PRIVATE AND CONFIDENTIAL
7
Vessel Requirements 235 Units
No Ship Type Amount %
1 Accomodation Work Barge 6 2.6%
2
Anchor Handling Tug & Supply
(AHTS) 58 24.7%
3 Cable Boat/Cable Laying Barge 17 7.2%
4 Crew Boat 2 0.9%
5 Dinamic Position Vessel 5 2.1%
6 Diving Support Vessel 9 3.8%
7 Drilling Ship 8 3.4%
8 FSO/FPSO 9 3.8%
9 High Speed Craft 1 0.4%
10 Jack up Rig 31 13.2%
11 Multi Purpose Vessel 17 7.2%
12 Pipe Lay Barge 11 4.7%
13 Platform Supply Vessel 9 3.8%
14 Semi Submersible Rig 10 4.3%
15 Survey (Seismic) Vessel 16 6.8%
16 Tender Assist Rig 6 2.6%
17 Transportation Barge 2 0.9%
18 Utility Vessel 13 5.5%
19 Warehouse Barge 5 2.1%
Exploration & Project Fleet 2011-2015
Accomodation
Work Barge
2,6%
Anchor Handling
Tug & Supply
(AHTS)
24,7%
Cable Boat/Cable
Laying Barge
7,2%
Crew Boat
0,9%
Dinamic Position
Vessel
2,1%Diving Support
Vessel
3,8%
Drilling Ship
3,4%
FSO/FPSO
3,8%
High Speed Craft
0,4%
Jack up Rig
13,2%
Multi Purpose
Vessel
7,2%
Pipe Lay Barge
4,7%
Platform Supply
Vessel
3,8%
Semi Submersible
Rig
4,3%
Survey (Seismic)
Vessel
6,8%
Tender Assist Rig
2,6%
Transportation
Barge
0,9%
Utility Vessel
5,5%
Warehouse Barge
2,1%

8. PRIVATE AND CONFIDENTIAL 8
• Year Built : 1972
• Length : 142,5 m
• Breadth : 48.2 m
• Depth : 26,45 m
• Capacity : 30,000 BOPD
• Operator : PHE ONWJ
FSO ARCO ARDJUNA
• Year Built : 1972;
• Recondition : 1989
• Capacity : 1,000,000 BBLS
• Length : 183.6 m
• Breadth : 40.5 m
• Depth : 24.9 m
• Operator : JOB Pertamina
Petrochina East Java
FSO CINTA NATOMAS
SKK Migas FSO, FPSO, & FPU Own Fleet (1)

9. PRIVATE AND CONFIDENTIAL 9
• Year Built : 1975,
• Rebuild : 1985
• Length : 272.0 m
• Breadth : 43.4 m
• Depth : 20.6 m
• Field Location : South Cina Sea
• Operator : Star Energy (Kakap) Ltd
FPSO KAKAP NATUNA
• Year Built : 1990
• Capacity : 400,000 BBLS
• Processing Cap : 25,000 BOPD
• Length : 166 m
• Breadth : 39 m
• Depth : 21.4 m
• Operator : Premier Oil Natuna Sea
FSO ANOA NATUNA
SKK Migas FSO, FPSO, & FPU Own Fleet (2)

10. 22/04/2016 10PRIVATE AND CONFIDENTIAL 10
It was the first Deep Water Development in
Indonesia
• Water Depth: 2,400 - 3,400ft
• Start Production: 2003
• Design capacity: 60,000 BOPD
Crude Oil, 150 MMSCFD Gas,
• Hull build in PT PAL and Topside Fabrication
at Hyundai, South Korea.
• Operated by Chevron Indonesia Company
FPU WEST SENO
• Field Location: South Cina Sea
• PSC : ConocoPhillips Indonesia
• Production: Oil 40.000 BOPD; Gas
440 MMSCFD
• Condensate Prod. : 4,800 stbbls/day
• Cargo tank cap : 1,187,000 bbls
FPSO BELANAK NATUNA
SKK Migas FSO, FPSO, & FPU Own Fleet (3)

11. 22/04/2016 11PRIVATE AND CONFIDENTIAL 11
FSO GAGAK RIMANG
• Year Built : 1993,
• Rebuild : 2013
• Length : 327 m
• Breadth : 58 m
• Depth : 22.9 m
• Field Location : Java Sea
• Operator : ExxonMobil Cepu
Ltd.
SKK Migas FSO, FPSO, & FPU Own Fleet (4)
Number of FSO. FPSO, and FPU that operate in Indonesia are 23 units, with total
capacity around 15 MMBBLS Oil and Condensate.

12. 12PRIVATE AND CONFIDENTIAL
Corrosion Management System
On FSO/ FPSO

13. 13PRIVATE AND CONFIDENTIAL
Definition:
“Corrosion management is that part of
the overall management system, which
is concerned with the development,
implementation, review and
maintenance of the corrosion policy.”
(UK Health and Safety Executive (HSE),
2004)
Corrosion Management System
Objective:
• Reducing the number of corrosion related hydrocarbon
releases and other safety related and environmentally
damaging outcomes;
• Identifying good practices for setting up an optimal corrosion
management scheme, and
• Providing an overview of the top corrosion threats.

14. 14PRIVATE AND CONFIDENTIAL
• Statutory or Corporate compliance with Safety, Health and Environmental
Policies ----> Cert. of Safety Costruction, Class, SKPI, SKPP, etc.
• Reduction in leaks
• Increased plant availability
• Reduction in unplanned maintenance
• Reduction in deferment costs
Why Manage Corrosion?
Organise and operate successfull
of Corrosion management
system depend on:
• Design
• Stage in Life Cycle
• Process Conditions
• Operational History

15. 15PRIVATE AND CONFIDENTIAL
Yes
No
Basic Corrosion Management Process
• Leak and emissions targets
• Unscheduled shutdown targets
• Annual reduction targets
• Assess skills and competence
• Define roles & responsibilities
• Ensure co-operation & communication
• Identify hazards & assess risks
• Agree targets, processes & systems
• Set standards for measuring performance
• Proactive, measurement using regular
checks to show controls are working
• Reactive, measurement identifies why
performance was substandard
• Review activities & trends
• Check for compliance
• Learn from experience & make
changes
Source:
UK Health and Safety Executive (HSE) Report

16. 22/04/2016 16PRIVATE AND CONFIDENTIAL 16
FSO Lentera Bangsa – (Sept. 2011)
• Explosion in the Engine Room
• Casualties : 1 Person, several
injured
• Oil Spilled on the spot
• Location : Java Sea
• Loss of Production : 18.000 BOPD
FSO Gagasan Perak – (Aug. 2010)
• Explosion in the Slop tank
• Casualties : 1 Person, several
injured
• Oil Spilled on the spot
• Location : Java Sea
• Loss of production : 1.200 –
1.700 BOPD
Major Accident History

17. 22/04/2016 17PRIVATE AND CONFIDENTIAL 17•
PMS Audit
FSO/ FPSO
SEAWORTHYNESS
-Class – Strength and Reliability
-Statutory (SOLAS & MARPOL) - HSES
PMS
Rules
- Manufacturer
- Class
Period
- Load
- Running Hours
Actors
- Crew
- Contractor
Documentations
- Planning &
Schedulling
- Report
Controll
- Ship Management – ISM Code
- SKK MIGAS & KKKS – Owner/ Charterer
Technical
Recomendations

18. 22/04/2016 18PRIVATE AND CONFIDENTIAL 18
SKK Migas PMS Audit for FSO & FPSO
1. Ship Particular
2. Ship Certificate & Documentation
3. Ship Operation Manual
4. Hull Components
5. Machinery Components
6. Other Components
1. Electrical Components
2. Navigation Equipments
3. Life Saving Appliance (LSA)
4. Mooring System
Objective :
Continues Improvement on effectiveness, safety, and reliability FSO & FPSO operation to
minimize unplanned shutdown.
Scope:
Working Plan, Operation Management, Safety, Maintenance, Rule and Regulation
Implementation on FSO & FPSO

19. 19PRIVATE AND CONFIDENTIAL
Common Observation Result
Heavy Corrosion on Deck Heavy Corrosion on
Structural
Heavy Corrosion on Piping
Broken Insulation Weathertight
Door/Openings Corroded
Corrosion on access

20. 20PRIVATE AND CONFIDENTIAL
Major Observation Result
Leaks on Cargo Tank/ Hull Cracks on Hull Leakage on Engine Room
Corrosion Leakage on Boiler Corrosion on Life Appliance Mechanical Damage

21. 21PRIVATE AND CONFIDENTIAL
Challenges
1. Marine corrosion is one of the leading causes of structural and
mechanical failures in the floating production facilities, but the right
measures to protect these assets can ensure they operate safely,
efficiently and profitably.
2. As the price of oil continues to fall, Facility owners may be looking to
cut budgets, which could affect corrosion control providers
3. Poor understanding of the corrosion management concept and its
practical applications.
4. Increased expectations from the public for safety, stricter
governmental regulations and, perhaps more than anything, a
shortage of experienced personnel.
5. Aging infrastructure, particularly as it relates to marine coatings, is
another major concern in the industry

22. 22PRIVATE AND CONFIDENTIAL
How to Improve Asset Corrosion Management
1. Companies should have a policy statement that clearly addresses the
organization’s objectives for the corrosion management system
2. Companies must continue to train, certify and provide opportunity to
their corrosion control personnel to ensure the program is being
properly maintained.
3. Marine corrosion control starts with the proper design and
installation of the infrastructure. If a company takes the time to
develop, implement and maintain a proper program, these assets
will operate safely, while protecting the environment and providing a
profitable system to the owner.
4. There’s not just one methodology for controlling marine corrosion.
Coating, cathodic protection, electrical isolation and proper
maintenance all play a role.
5. Government can ensure that legislation and regulations relevant to
the industry includes language that supports proper corrosion
control planning and the use of qualified personnel

23. 23PRIVATE AND CONFIDENTIAL
Implementation IMO PSPC On FSO/FPSO

24. 24PRIVATE AND CONFIDENTIAL
The Performance Standard fo Protective Coating (PSPC)
IMO PSPC for Water Ballast Tanks
IMO MSC.215(82) Performance Standard for Protective Coatings for Water Ballast Tanks
(2006)
• A standard designed to achieve a target coating lifetime of 15 years in dedicated
seawater ballast tanks and double side-skin spaces of bulk carriers.
• The regulatory amendment is: SOLAS Regulation II-1/3-2
• Entry Into Force
• The building contract was placed on or after 1st July 2008
• The keel was laid on or after 1st January 2009
• The delivery is on or after 1st July 2012
IMO PSPC for Cargo Oil Tanks
The IMO MSC.291(87) Performance Standard for Protective Coatings for Cargo Oil
Tanks of Crude Oil Tankers (2012)
• Designed to achieve a target coating lifetime of 15 years to ensure the longevity of
cargo oil tanks.
• The regulatory amendment is: SOLAS regulation II-1/3-11
• Entry Into Force:
• The building contract is placed on or after 1st January 2013 or
• The keels of which are laid or which are at a similar stage of construction on or
after 1st July 2013
• Or the delivery of which is on or after 1st January 2016

25. 25PRIVATE AND CONFIDENTIAL
SOLAS Regulation II-1/3-2, Clause No. 4:
• Maintenance of the protective coating system shall be included in the
overall ship's maintenance scheme.
• The effectiveness of the protective coating system shall be verified
during the life of a ship by the Administration or an organization
recognized by the Administration, based on the guidelines developed
by the Organization.*
Main Element of PSPC
Main Elements of the PSPC
• Design of a specification and coating system
• Coating System approval
• Definition of inspection procedures
• Production of a Coating Technical File (CTF) which records all aspects of
the process
• Verification of compliance
• IMO PSPC requires that the CTF should be completed by the shipyard and
reviewed by the flag State (usually a Class society acting as an RO) before
the related certificate is issued.

26. 26PRIVATE AND CONFIDENTIAL
Shipyard Shipowner
Paint Company
The Parties Involved
Inspector
Source: Sandy Kirkwood
www.safinah.co.uk

27. 27PRIVATE AND CONFIDENTIAL
Coating System on FSO Karapan Armada
Sterling III - HCML

28. 28PRIVATE AND CONFIDENTIAL
Ballast Tank Dehumidifier – FSO Gagak Rimang
• OEM: Munters Pte Ltd.
• Type unit: Desiccant
Dehumidification MT-10000E
• Process Air: Rated air flow:
10000 m3/h;
• Reactivation air: Rated air flow:
3330 m3/h;

29. 29PRIVATE AND CONFIDENTIAL
Implementation of PSPC, Challenges:
• Greater demand for education in coating management
• New technology solutions for “equivalent” coating system
• More systematic approach to inspection with objectivity
• Better data recording and control of process
• True additional cost on New Build as yet not verified
• Today the surface preparation and
coating process is considered by most
shipyards as a ‘bottleneck’ in the process.
• Genuine shortage of trained coating
inspectors
• Coating Process predictable, but not an
exact science (weather, drying times,
access to surface).

30. 30PRIVATE AND CONFIDENTIAL
1. To reach the goal of 15 years useful coating life in GOOD condition from
initial coating application, these initial efforts during the new construction in
the shipyard is critical element include:
a) The clearly defined tripartite agreement on specification and
inspection procedures,
b) The selection of qualified and certified coating inspector(s),
c) Carrying out IMO PSPC-compliant surface preparation and coating
application,
d) Quality inspection and comprehensive CTF documentation.
2. The standardization of shipyard new construction processes to meet the
PSPC requirements not only has the potential for improving the quality of
coating, but also provides an opportunity for better controlling costs
during construction and throughout the service life of the vessel.
Summary

31. S C C E S S
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33. About Presenter
• Name : Putu Indra Mahatrisna
• Date of Birth : 1st May 1979
• Education :
• Bachelor degree in Department of Marine Engineering, Faculty of
Maritime Technology, ITS Surabaya
• Now is continuing Master degree majoring in Gas Management,
Department of Chemical Engineering, Faculty of Engineering,
University of Indonesia
• Experience :
• Marine Engineer at BPMIGAS/ SKK Migas (2009 to date)
• Lead Production Engineer & Subject Matter Expert (SME) for Coating & Passive
Fire Proofing at J. Ray McDermott (Batam yard) (2005-2009), project included:
• Chevron Platong Gas II CPP Topside Construction & HUC
• North Belut CPP Topside Construction & HUC
• Woodside LNG Train, Phase V Expansion Project
• Technical Service Advisor at PT. Jotun Indonesia (2003-2005)
• Certification:
• NACE CIP Level 3
• IMO OPRC (Oil Pollution Preparedness, Response, and Cooperation Convention)
- Level 2
• NEBOSH International Technical Certificate in Oil and Gas Operational Safety