1. Brussels April 16th 2007 Technical Audit of Oil & Gas Pipelines PNIS Project Contract : 1,4 M € Consortium : Technipipe/AETS www.technipipe.com from July 2005 to December 2006

2. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Maintain and improve the long-term integrity of the Central Asian Oil & Gas pipelines export to EU, Overcome the gap of working environment between NIS and Western oil & gas pipeline companies. Use the establishment of a Pipeline Network Information System as a basis for transfer of technology and procedures to the gas transmission companies of Central Asia.

3. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS

4. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Overall objectives The industrial tool, the pipeline network should no longer be seen as a black box and should become totally transparent (glass box). At any moment, the actual state of the pipeline system and its evolution in time can be displayed. The best way to get people to really care for the cathodic protection is to show them concretely the consequences of an ill maintained system.

5. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS SWOT of The Beneficiaries Strengths -Large experience in pipelines & Strong organization -Good education background & Common working language (Russian) Weaknesses (issues) -Poor overall status of pipeline & no separate regulation organization -Lack of exposure to the new technologies and Western standards Threats (risks) -Competition between the Beneficiaries for leadership -Gaps of competence, procedures and technology will have to be filled Opportunities and Assumptions -The Steering Committee to reinforce the regional approach. -The ground for a team of regional expert will be explored

6. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS  Project Team based in Tashkent -Project Manager -Team Leader -Software Expert (PNIS) -Inspection/Maintenance Expert -Training/Inspection Expert -Teachers from Gubkin oil & gas University (Moscow) -Local Coordinator, Junior Expert, services

7. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS

8. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Various phases of the Project : -Inception -4 Steering Committees (France, UZ, KZ) -4 Dissemination seminars (UZ, KZ, KY,TU) First 4 months : « Inception trips » :..Analysis of environment, identification and contact of partners/ beneficiaries, clarification of project objectives and strategy,..Approval from Beneficiaries of planned activities, specification of PNIS…

9. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Khiva Training Center Intensive usage of Khiva Training Center (Gas transportation Training Center assigned to the project by Uztransgaz). Training Plan made up of 8 Modules designed after Competence/knowledge assessment Modules 1 & 2 : engineering, design, construction and maintenance of pipelines (Khiva, Almaty & Moscow) Modules 3 & 3bis : Inspection (using tools sourced from European suppliers)

10. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Khiva Training Center Module 4 : On site Above ground Inspections (in Bishkek area) Module 5 : On line Pigging (in Samarkand with Rosen) of 40’’ x 156 km. Modules 6 & 7 : PNIS implementation operation & maintenance (theory only) Module 8 : Train the trainers (for the Beneficiaries to be able to train in their own countries)

11. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Priorities as per the 4 dissemination seminars : 1) Build/refurbish Cathodic Protection on full pipeline network. 2) Implement a large training program on Cathodic Protection 3) Collect the Cathodic Protection status by transmission network 4) Walk Survey weekly (Cathodic Protection efficiency, coating damage) 5) Prioritize above ground inspection (DCVG) where the Cathodic Protection has failed or if the Cathodic Protection data are wrong 6) Dig out the pipeline where coating defects are suspected and carry out US measurements, eventually repair Conclusion

12. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS Priorities as per the 4 dissemination seminars : 7) Carry out intelligent pigging in the High Risk Areas 8) Develop an Integrity Management System/RBI (Risk Basis Inspection) 9) Develop repairs by clock spring method 10) Collect the Cathodic Protection Data in real time 11) Implement a PNIS 12) Implement a SCADA system (for new or revamped pipelines)

13. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS PNIS is a “Pipeline oriented Geographical Information System” applied as a “Pipeline Integrity Management System” It provides a tool to store and display the pipeline system (with pipe characteristics and inspection data) in its geographical environment It provides the computational analysis to determine segment length & segment proximity to geographical land marks It allows queries & reporting It helps the user to classify the pipeline segments by pipe characteristics (diameter, pressure, coating, etc.) by pipe status (inspection data) or by geographical land marks

14. Brussels April 16th 2007 Technical Audit Pipelines @ PNIS PNIS optimizes maintenance through Risk Based Inspection RBI uses PNIS to : Segment the pipeline according to risk factors Identify risk contributors and deduce corresponding risk reducers Rank / Assign weights to the risk contributors Compute a risk factor per pipeline segment And then to focus inspection on segments that most need it