1. Forties Pipeline System Contaminant Management & Waiver Process
Offshore Operators Awareness Pack

2. Presentation Objectives
Improve awareness of Forties Pipeline System
Understand why waiver process exists
Impact of chemicals / contaminants on FPS
Mutually beneficial
Understand how & when to use the waiver process
When is a waiver required?
Different types of waiver
Waiver form & information requirements
Overview of waiver costs

3. Forties Pipeline System

4. FPS LPG Facilities and INEOS
Kinneil Process
Stabilisation
Compression
Fractionation
CO2, H2S, Hg, RSH removal
Gas drying
Effluent treatment
Mercury Removal
FPS LPG Facilities and INEOS

5. Contaminant Management
E&P Onshore ‘Costs’
Additional OPEX (energy, chemicals)
Gas Treatment Bed change-outs
Reputation/Legislation
Additional CAPEX (to increase capability)
Risks
Long Term Integrity
Throughput restrictions
Contaminants e.g. CO2, H2S
Water
- produced water
- disposal capability – reinjection or
overboard or export.
Production Chemicals
- manage performance
-(e.g. hydrates)
- integrity
E&P Offshore ‘Costs’
OPEX (chemicals)
CAPEX (to meet export specifications)
Risks
Oil Revenue
Gas Revenue
Throughput restrictions
Contaminants
impact on gas plant
impact on ‘System
Capability’.
Water
impact on processing
capability
separation efficiency
gas plant performance
Offshore
Export Pipeline
Downstream Operations
Contaminants:
impact of water and CO2 on
integrity
- impact on hydraulic performance
Production Chemicals
- manage integrity
- manage performance
Contaminant impact
on product quality (e.g.
Forties Blend) or Cracker
feedstock.
Product downgrading/
financial cost to BP
LPG Shipping Demurrage
Effluent Plant
Impact on effluent
Quality and discharge
consents
Reservoir

6. The waiver process
Allows a customer to export material not meeting their contractual specifications, e.g.
Start-up chemicals, e.g. methanol, glycol
Production chemicals, e.g. corrosion / scale inhibitor
Manage process upsets, e.g. export excess water
Allows FPS to meet all our customers’ needs by:
Maintaining system integrity
Maintaining system availability
Managing impact on the environment
Maintaining product quality
Helps ensure the Forties Pipeline System is available to meet the needs of all our customers both now and in the future

7. Ad-hoc Waiver Process
Applies whenever material not meeting specification will or may be exported to FPS.
Is instigated by the customer identifying a requirement and submitting a waiver request form to FPS by
FPS will then evaluate the request and either:
Approve the request by sending a ‘Waiver Granted’ form
Request further information if required
Suggest an alternative date / quantity which would enable the waiver to be approved
Reject the request
Once the operation has been completed, the customer must close-out the waiver by completing a ‘Waiver Close-Out’ form

8. Other Chemical waivers
We recognise that some of our customers have a requirement to continuously inject certain chemicals, e.g.
Corrosion / scale inhibitors
Deoilers / demulsifiers
Wax inhibitors
FPS has agreed with each shipper a list of production chemicals that can be used; these chemicals are routinely used in the operation of the field, such as corrosion / scale inhibitors.
If shippers wish to use ad-hoc chemicals or change any of the chemicals on their approved list then the shipper should complete a waiver request form and send it to the FPS waiver team.
The approval process for other chemicals is likely to take longer than 72 hours as additional research and tests may be required before BP is able to approve the waiver; typically 2 months’ notice should be given to approve such a request.
Use of certain chemicals including alcohols, glycols, acids and biocides will not be included in the approved list of other chemicals.
There will be a periodic review of routinely used chemical contaminants at which time the shippers will be obliged to inform FPS of the previous years use

9. When should I submit?
FPS has limited capacity for water, methanol and glycols. Capacity is booked on a first-come, first-served basis
For planned activities involving ‘routine’ chemicals, waivers must be submitted a minimum of 72 hours in advance, but no more than 2 weeks
For complex operations or ‘non-routine’ chemicals, it can take several weeks to complete an assessment, so our advice is to submit as soon as possible if you are seeking to use
Chemicals not previously used on your facility
Chemicals in larger quantities than previously used
A complex operation involving several chemicals

10. Waiver Process Summary
Step
Identify requirement for waiver
Prepare waiver request form & submit to FPS
Review waiver request versus system capacity and safe operating limits
Approve / reject waiver request
Close-out waiver
By who?
Customer
FPS
When?
As required
3 – 14 days for ‘routine’ chemicals
Normally within 2 working days
As soon as decision is reached.
If FPS cannot accommodate the request we would discuss possible alternatives with the customer.
Within 24 hours of completion
a.s.a.p. for ‘non-routine’ chemicals or changes to “other chemicals” list
As soon as practicable, but may take weeks or even months

11. Waiver costs Admin Fee is charged for each waiver requested:
Methanol waivers £2,400
Other waivers £2,180
Breach waivers £3,190
Short notice waivers £110 in addition to above fees
(less than 24 hours notice)
Late close out waivers £110 in addition to above fees
(more than 24 hours)
Processing Fee
Methanol cat 1 £4,250 per cubic meter
Methanol cat 2 Bed change out is c £150,000
Methanol cat 2 Cost of replacing mol sieve beds and flaring off spec gas products.
Estimated to be in region of £2m
Water £0.1592/bbl
H2S and other waivers No processing fee
Others on a case-by-case basis.

12. Methanol waiver costs
FPS has a limited capacity for methanol - the ‘sustainable operating limit’ is normally 2m3 / day arriving at Kinneil
Methanol destroys molecular sieve beds that dry propane product
For waiver requests that do not require FPS to exceed this limit, a charge of £4,250 per m3 is applied as a contribution towards increased costs associated with:
Cost of replacing damaged molecular sieve beds, including gas products flared during bed replacement
Lost value of export of off-spec gas products towards end of bed life
Costs incurred due to increased CO2 emissions and energy consumption during periods of flaring
For waiver requests that require FPS to exceed the ‘sustainable operating limit’ and up to a ‘maximum operating limit’
The costs of replacing damaged molecular sieve beds
The value of gas products flared during the bed replacement
Cost of replacing mol sieve beds and flaring off spec gas products (in the region of £1.5- £2m)

13. For more info, please see www.fortiespipeline.com
Summary
The waiver process has been used successfully in FPS for many years
Its continued success requires our customers to be honest about their chemical usage
FPS tracks chemicals through the system to manage the total quantity arriving at Kinneil (proactive)
FPS monitors Kinneil for certain chemicals and can ‘back-track’ to identify transgressors if necessary (reactive)
The system operates on a first-come, first-served basis
Capacity for chemicals cannot be booked more than 2 weeks in advance
Waiver close-outs help us optimise our capacity for chemicals
For unusual chemicals, we will endeavour to complete our assessment to meet your timescales, but can make no guarantee - as much notice as possible is requested
Above all, good communication between FPS and our customers is critical!
For more info, please see

14. Back-up Slide 1 - Methanol ‘Knock-out’ Factor
Not all the methanol injected offshore will be exported to FPS
Some flashes into gas phase and is exported with gas product
Some enters produced water & is discharged overboard
FPS methanol capacity is based on quantity arriving at Kinneil, not quantity injected
Therefore it is critical to understand what proportion of injected methanol is exported with the oil
‘Methanol Knock-out Factor’ is simply the percentage of methanol removed by offshore processing prior to export to FPS
Varies from field to field, and may vary within a field depending on which wells are online at time of injection
Particularly when a wet well is on / off

15. Back-Up Slide 2 - Chemicals Impact at Kinneil
Product Specifications
Particularly methanol
Effluent quality
Discharge into Forth
Separation & Knock-on effect
FPS LPG Facilities and INEOS

16. Back-Up Slide 3 : Chemicals in our Industry
We all need to work together to manage chemical usage - it
is in all our interests to minimise chemical usage whilst
maintaining excellent safety, operational and environmental
performance. We all strive to avoid production losses.