1. ICRARD 2010 RAPHAEL QUEIROZ Buxton, June 23 rd, 2010. NATIONAL AGENCY OF PETROLEUM, NATURAL GAS AND BIOFUELS

2. 1.Operational Safety Department: Mechanical Integrity Audits/Inspections (until 2009); Resolution ANP 43/2007. 2.Support for Research & Development: Legal requirement – investment clauses; Integrity management projects: AURI and Monflex. 3.Conclusions: Partnership in projects; Challenges. P RESENTATION S TRUCTURE

3. S AFETY - ANP R ESOLUTION N º 43/2007 Focus on Safety Management Systems New Regulatory Framework for Offshore Safety  Performance-Based/Goal Setting Model  Fewer prescriptive requirements  Non-restrictive approach to technological innovations Minimum requirements for: Mechanical Integrity, Risk Assessment, Contractors Selection, Internal Audits, Incident Investigations, Management of Change, Safe Working Practices, Simultaneous Operations etc.

4. C ONCESSIONAIRE R ESPONSIBILITIES  Ascertain that the installation operator has a management system that meets the practices of the Management System for Operational Safety (SGSO) established by the ANP in the Technical Regulation;  Ascertain that the installation operator will provide the verification of the critical elements for operational safety and will audit the Operational Safety Management System as prescribed in the Technical Regulation; and  Submit to the ANP the Operational Safety Documentation.

5. ANP D UTIES  Carry out the analysis of the Operational Safety Documentation – beginning of operation is allowed if ANP approves it;  Carry out audits at the installation to verify the performance of the Operational Safety Management System – 8 audits/month with Bureau Veritas (BV);  Carry out inspections of the critical elements for operational safety – Practice 11 (essencial);  Put into effect injunction actions when found non-conformities regarding the Technical Regulation.

6. Management, Leadership and Personnel MP 1: Culture of Safety, Commitment and Managerial Responsibility MP 2: Involvement of Personnel MP 3: Personnel Qualification, Training and Performance MP 4: Work Environment and Human Factors MP 5: Selection, Control and Management of Contracted MP 6: Monitoring and Continuous Improvement of Performance MP 7: Audits MP 8: Information and Documentation Management MP 9: Incident Investigation Facilities and Technology MP 10: Design, Construction, Installation and Decommissioning MP 11: Critical Operational Safety Elements MP 12: Risk Identification and Analysis MP 13:Mechanical Integrity MP 14: Planning and Management of Major Emergencies Operational Practices MP 15:Operational Procedures MP 16:Management of Change (MOC) MP 17: Safe Working Practices and Control Procedures in Special Activities O PERATIONAL S AFETY D OCUMENTATION

7. Objectives of supporting for R & D:  Legal Requirement;  Development of New Technologies: AURI and Monflex Projects;  Centers of excellence: CENPES (Petrobras Research Center)  Qualification of the Oil and Natural Gas professionals: Human Resource Program;  Development of Geological Knowledge of the sedimentary basins: ANP is drilling in order to bid better blocks for exploration and production of oil and natural gas. S UPPORT FOR R&D

8. R&D I NVESTMENT C LAUSE In the case of Special Participation Fee be owed by a field in any quarter of a year, the Concessionaire must realize expenses in Research and Development in an amount equal to 1% of the net revenue of Production for that field. YearTotal 1998/99 $ 30.887.085,15 2000/01 $ 221.471.784,08 2002/03 $ 586.836.845,00 2004/05 $ 912.012.921,41 2006/07 $ 1.232.892.602,46 2008 $ 860.858.232,82 TOTAL $ 3.844.959.470,92

9. 1.A.U.R.I. – Autonomous Underwater Riser Inspection Tool; 2.Monflex – Monitoring of Flexible Oil Lines. S ELECTED P ROJECTS Projects selected are meant to be used mainly in deep water operation on the management of riser integrity:

10. Objective: 1.Managemente of riser integrity; 2.Inspect the vertical section of the riser in order to detect Corrosion and Fatigue with lower price and safer technique. A.U.R.I. P ROJECT The A.U.R.I inspection may be set by 4 different parameters (also means redundances in case of failure): Maximum pressure on depth sensor ; The length of the run; Maximum mission duration; Maximum allowed tilt (inclinometer) < 30º.

11. A.U.R.I. P ROJECT Most used technique – ROV for visual inspection: Requires experienced operator; High cost – special vessel; Continuous monitoring. Pipeline with anomalous diameter variation Polymeric sheath damage and exposed armour steel layer.

12. A.U.R.I. P ROJECT A.U.R.I Tool primary concerns: Not getting trapped under the TDP (Touch Down Point) and not getting crushed by the weight of the riser causing damage to the pipeline; Severe electrical failure, returns automatically – Positive buoyancy; Mechanical fuses break without releasing sharp pieces – in case of rescue with ROV is needed.

13. A.U.R.I. P ROJECT A.U.R.I Tool Propulsion: 2 thrusters; Used to do all the inspection (positive buoyancy only for the safety of the tool. Suspension: Eight rollers – diameters from 190 to 360 mm; Absorb impacts and negotiate variation preventing AURI from getting stuck.

14. A.U.R.I. P ROJECT Onboard sensors: four cameras, pressure transducer, odometers, digital compass, inclinometer and thermometers; Lights on only for a brief period – cameras shooting; Digital compass – exact positioning of the acquired images; Odometers – images each 300 mm. Embedded computer and Software control the system after AURI starts, can be upgraded and store the inspection data and logs. The mission is considered complete when reach the parameters set: pressure, distance, time and inclination.

15. A.U.R.I. P ROJECT Three options for launching: From the surface of the platform; Submerged with a diver; Submerged with ROV. Testing: The AURI has only been tested in a pool environment with offshore tests.

16. A.U.R.I. P ROJECT Mission logic control worked for different returning criteria; Returned without any human intervention; The illuminating was considered appropriate; Forces produced by the thrusters in agreement with the manufacturer’s specification; Dynamic friction on the rollers was higher than expected – problem in suspension design; Inspection of 1,000 m – estimated time is 44 minutes. Test Results:

17. A.U.R.I. P ROJECT Prototype

18. A.U.R.I. P ROJECT Challenges for an autonomous riser inspection tool; Hasn’t been tested in real condition yet, but it seems to be good alternative with low cost, low time, safer condition; Possible to be used as a platform for new types of inspections using other techniques, such as radiography. Conclusion: AURI Video

19. Introduction: As the operation water depth for flexible risers increases, the stress level in these structures also increases. This higher load, associated with stress concentration close to end fitting, can induce fatigue damage in tensile armors at riser top section. Progressive rupture of wires due to fatigue, which may be accelerated by corrosion, is an important indication of deterioration in riser-end fitting connection, and has become a typical failure mechanism for flexible riser top section. M ONFLEX P ROJECT

20. Objective: In order to mitigate the progression of these damages, this techniques try to come with early detection of failure mechanisms at the riser-end fitting connection, specially at the tensile armors with a continuous monitoring. There are techniques under development: 1.Visual torsion monitoring through video cameras; 2.Monitoring through optical fiber sensor extensometers. M ONFLEX P ROJECT

21. Main damages: Usually caused during installation; Majority of occurrences from 30m depth to the platform connection, more concentrated in the close end fitting; Torsional instability, external sheath damage and corrosion. M ONFLEX P ROJECT

22. Visual torsion monitoring through video cameras; M ONFLEX P ROJECT Small angle deformation and on-line data acquisition in order to provide immediate identification for non-conformities; Procedure: attaching target on the riser – behavior on the video- camera; Already been installed in 4 platforms and results were considered efficient. Plan to install another 50 until the end of 2010; PTZ (Pan, Tilt and Zoom) system on the cameras; Multiple targets – 1 camera.

23. Visual torsion monitoring through video cameras M ONFLEX P ROJECT System: Target picture and target digitalized image – comparison between the images and a graph showing the torsion variation; In case of excess of variation on the predefined values, sound an alarm.

24. Monitoring through optical fiber sensor extensometers. M ONFLEX P ROJECT System: Many optical fiber sensors covering 100% of the wires; Remote sensing – software; Rupture brings tension from the operational tension to zero.

25. C ONCLUSION Searching for partners: 1.Brazil, through CENPES (Petrobras Research Center), is open for partnerships in the projects with universities or technological institutes: 2.CENPES + Brazilian Universities + International Universities. 3.AURI Project – new technologies (ultrasound inspection or radiography inspection), robotic solutions and improvement of the tool. 4.Other Mechanical Integrity Projects.

26. C ONCLUSION Searching for partners: 5.Challenges with ultra deep water – how to maintain the gas pipeline integrity under 2,000 m water depth and 300 Km distance to the shore (foreseeing problems in 5/10 years). 6.Challenges with ultra deep water: How to export the natural gas over the distance of 3oo Km to the shore; How to maintain the gas pipeline integrity under 2,000 m water depth. 7.Production of CO2: injection or exporting?

27. THANK YOU! RAPHAEL QUEIROZ RQUEIROZ@ANP.GOV.BR