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Guidance for corrosion management in

oil and gas production and processing


GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION
AND PROCESSING

May 2008

Published by
ENERGY INSTITUTE, LONDON
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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

CONTENTS

Page

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Scope of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Structured framework for corrosion management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 Policy and strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


2.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.3 Roles, responsibilities and accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.4 Competence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.5 Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.6 Co-operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

4 Corrosion risk assessment and planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


4.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.3 Corrosion risk assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.4 Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

5 Implementation and analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13


5.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.3 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.4 Reporting, analysis and corrective action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

6 Monitoring and measuring performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16


6.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
6.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
6.3 Performance measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
6.4 Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
6.5 Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.5 Reporting and corrective actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7 Performance review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.3 Performance reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

Contents cont... Page

8 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8.2 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8.3 Scope and frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Annex A Guidance to normative requirements and examples of good practice . . . . 23


A1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
A2 Policy and strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
A3 Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
A4 Corrosion risk assessment and planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
A5 Implementation and analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
A6 Monitoring and measuring performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
A7 Performance review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
A8 Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Annex B Top corrosion threats and main mitigation methods . . . . . . . . . . . . . . . . . . 78


B1 CO2 corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
B2 H2S corrosion and cracking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
B3 O2 corrosion of seawater and water injection systems . . . . . . . . . . . . . . . . . . . . . . . . . 88
B4 Microbially influenced and dead leg corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
B5 Galvanic corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
B6 Weld corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
B7 Grooving corrosion of pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
B8 Flange face corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
B9 Atmospheric external corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
B10 Corrosion under insulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
B11 Stress corrosion cracking and localised corrosion of stainless steels in chloride
environments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
B12 Erosion/corrosion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
B13 Chemical treatment management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
B14 Mitigation by coatings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
B15 Mitigation by cathodic protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Annex C Checklist for assessment of corrosion management . . . . . . . . . . . . . . . . . . 163

Annex D Glossary of terms and abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172


D1 Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
D2 Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

Annex E References and Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175


E1 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
E2 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

FOREWORD

Following a discussion on corrosion issues at the Major Accident Hazard Strategic Programme
Influencing Workshop in 2006, the Oil and Gas UK led Installation Integrity Working Group (IIWG)
and the Health and Safety Executive (HSE) requested the formation of an industry working group,
under the HSE’s Key Programme 3 (KP3) banner to address the corrosion of plant and structures on
offshore installations.

The Corrosion Management Work Group thus formed, comprised representatives from operators,
regulators, verification bodies and service providers and was managed by the Energy Institute. The
primary objective of the initiative is to revise and update existing HSE research report (Review of
Corrosion Management for Offshore Oil and Gas Processing, Offshore Technology Report 2001/044)
and to supplement it with more detailed operational guidance and in particular, introduce sections
which would aim to address external corrosion or 'physical state of plant' condition.

This document was written and compiled following consultation with a large cross-section of UK
Offshore Operators, specialist contractors and independent verification bodies who have a role in
corrosion control in the offshore oil and gas industry. Input to its development was sought via
working group discussion meetings, individual contributions and with provision of example
information. The information gathered has been collated and reviewed to identify commonalities in
the approach taken to corrosion management across the industry.

It is intended that these guidelines should provide good practice for the management of corrosion
for offshore installations and will be of use to duty holders, managers of operations, safety,
engineering and maintenance functions, and as an initial introduction for those who wish to become
involved in the subject. Although produced for the UK offshore industry, it is regarded as being
applicable to similar industries throughout the world and also to onshore terminals.

This publication has been compiled for guidance only and while every reasonable care has been taken
to ensure the accuracy and relevance of its contents, the Energy Institute, its sponsoring companies,
the document writer and the Working Group members listed in the Acknowledgements who have
contributed to its preparation, cannot accept any responsibility for any action taken, or not taken,
on the basis of this information. The Energy Institute shall not be liable to any person for any loss or
damage which may arise from the use of any of the information contained in any of its publications.

This guideline may be reviewed from time to time and it would be of considerable assistance for any
future revision if users would send comments or suggestions for improvements to:

The Technical Department,


Energy Institute,
61 New Cavendish Street,
London
W1G 7AR

E: technical@energyinst.org.uk

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

ACKNOWLEDGEMENTS

The Institute wishes to record its appreciation of the work carried out by the following individuals:

Mike Pursell of Mike Pursell Consultant Engineer Ltd; for compiling this document and for input of
expertise into its detail and content.

Members of the Corrosion Management Working Group, which was set up to steer the programme,
who provided valuable expertise through meeting attendance and correspondence. In particular,
those who have provided contributions that were key to the development of this publication:

Elspeth Allan ConocoPhillips


Richard Carroll BG Group
Andy Duncan HSE OSD
Keith Hart Energy Institute (Secretary)
David Hillis Total E&P UK Ltd
Rob Howard Lloyds Register EMEA
Dan Kirkwood Oceaneering International
Philip Ligertwood Shell UK Limited/Chevron Energy Technology Company
Jim MacRae Nexen Petroleum UK Ltd
Bill Miller Talisman Energy (UK) Limited
Raman Patel HSE OSD
Robert Paterson Oil & Gas UK
Steve Paterson Shell UK Limited
Catriona Smith BP Operating Company Ltd (Chair)
Yee Chin Tang DNV
Jonathan Wells AMEC Natural Resources
Chris Williams BP Operating Company Ltd
Liam Williams iicorr Ltd

The Institute also wishes to recognise the contribution made by those who have provided input and
guidance on the various documents which were issued during the development period:

Wayne Jones HSE OSD


Bob Kyle Oil & Gas UK
Martin Munday CNR
Mike Swidzinski ConocoPhillips

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

EXECUTIVE SUMMARY

This document provides general principles, engineering guidance and requirements for improving
Corrosion Management practices in oil and gas production and processing. It has been produced by
an oil and gas industry work group with the objective of:
— 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 to production and processing facilities
downstream of the wells.

Corrosion management has been defined as the part of the overall management system that
develops, implements, reviews and maintains the corrosion management policy and strategy and
includes a clear set of corrosion management system requirements that can, and should, be
considered normative.

They are based on the elements of a simple management model:

Health
and safety, Getting it
integrity and right
corrosion
issues

a
Clear policies
and objectives

Reports
b used to achieve
Organisational
structure and improvements
responsibilities

c Reviews
Corrosion risk
assessment used to provide
and planning correction

d
Implementation
and
analysis

e
Monitoring and
measuring
performance Yes No

f
Review Meeting
system the control
performance criteria?
g
Independent
audit

Figure 1: The basic corrosion management process model

vii
GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

Annex A provides informative guidance for the key elements a. to g. of the corrosion management
system. It describes good practices and techniques which have been demonstrated as necessary and
successful in the identification and the management of corrosion threats.

Annex B provides an overview of the top corrosion threats and mitigation methods and the
particular features of their management.

Annex C provides a structured checklist of activities and requirements against which a


management system can be reviewed or audited, assisting with element g., Independent Audit, of
the corrosion management system.

The system that is described can operate at various managerial and technical levels within an
organisation. The degree of complexity will depend on the size of the operation as will the number
of personnel involved and the roles and responsibilities of managers, engineers, technical support
staff and contractors.

The system will have risk assessments for both safety critical and safety related elements and
management activity to ensure ongoing availability and effectiveness of barriers to failure due to
corrosion.

Practical experience from the UKCS has shown that an effective corrosion management system,
coupled with commitment by the operator and their contractors can lead to major improvement in
safety, environmental protection and reliability in oil and gas production operations.

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

1 INTRODUCTION

1.1 PURPOSE

It is widely recognised within the oil and gas industry that effective management of
corrosion will contribute towards the maintenance of asset integrity and achieve the
following benefits:
— compliance with statutory and corporate safety, health and environmental
requirements;
— reduction in safety and environmental hazard from leaks and structural failures;
— increased plant availability, improving income;
— reduction in unplanned maintenance, reducing costs;
— reduction in deferment costs;
— optimisation of mitigation, monitoring and inspection costs, and
— improvement in the working environment with associated benefits.

The aim of this document is to provide guidance to individuals and organisations within
industry involved in the development and operation of Corrosion Management Systems for
facilities used in the upstream production and processing of oil and gas. The guidance has
been supplemented with practical examples of good practice and descriptions of how the
management model can be applied to address a number of key mitigation measures for the
control of each of the major corrosion threats experienced within the industry.

1.2 SCOPE OF APPLICATION

1.2.1 Management system scope

In this document corrosion management is defined as the part of the overall management
system that develops, implements, reviews and maintains the corrosion management policy
and strategy. The corrosion policy provides a structured framework for identification of risks
associated with corrosion, and the development and operation of suitable risk control
measures.

1.2.2 Production facilities scope

The document is intended to apply to the following facilities:


— offshore installations (including process plant, utilities and supporting structures);
— pipelines and subsea gathering, manifolds and processing systems, and
— onshore plant for reception, separation and stabilisation.

It not intended to apply to wells and well control equipment, to the transportation of oil and
natural gas by sea and after separation and stabilisation onshore, or to oil refining or gas
liquefaction.
The document is primarily written to address corrosion management within the UK
regulatory framework for offshore installations – specific details are included in Annex A.
However, the system model described in this document can also be applied elsewhere and
to the onshore elements of production schemes.

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

1.2.3 Deterioration processes scope

Corrosion management covers the management of threats to technical integrity arising from
mechanisms of material deterioration and failure, including but not limited to:
— corrosion processes – general, localised and galvanic;
— environmental cracking – stress corrosion, hydrogen induced, sulphide stress
cracking, corrosion fatigue, etc.;
— erosion, erosion corrosion, cavitation assisted corrosion and other flow related
degradation mechanisms, and
— mechanical damage – vibration induced fatigue, brittle fracture.

1.3 STRUCTURED FRAMEWORK FOR CORROSION MANAGEMENT

In the operation of an oil and gas production facility, the management of corrosion lies
within the function of many parts of the operator’s organisation and increasingly extends
into contractors’ organisations. It is therefore important that corrosion management
activities are carried out within a structured framework that is visible, understood by all
parties and where roles and responsibilities are clearly defined.
This document focuses on the management of corrosion during operation of the
production facilities. However, it also acknowledges the importance of the design phase in
planning and implementing barriers to corrosion risk. The management system model
described in this document is based upon an existing HSE model for the management of
safety related activity[1], (see Figure 2).

Health
and safety, Getting it
integrity and right
corrosion
issues a. Clear policies and objectives adopted by
an organisation. (Section 2)
a
Clear policies
and objectives
b. Organisational structure and
responsibilites within the organisation.
b Reports (Section 3)
Organisational used to achieve
structure and improvements c. Corrosion risk assessment and planning
responsibilities
of acitivities according to risk. (Section 4)
c Reviews
Corrosion risk d. Implementation and analysis of planned
assessment used to provide
and planning correction activity and its reported outcomes.
(Section 5)
d
Implementation
and e. Measure system performance against
analysis pre-determined criteria. (Section 6)
e
Monitoring and f. Systematic and regular review of system
measuring
performance Yes No performance. (Section 7)

f g. Periodic independent audit of the


Review Meeting
system the control management and monitoring systems.
performance criteria?
g (Section 8)
Independent
audit

Figure 2: Framework for successful corrosion management

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GUIDANCE FOR CORROSION MANAGEMENT IN OIL AND GAS PRODUCTION AND PROCESSING

The document is in four parts, as detailed:

1.3.1 Normative requirements

The first part, Sections 2 to 8 of this document, sets out the essential requirements to be
met by an effective corrosion management system for each element of the model. The
content of this part should be taken as normative.
Steps (a) to (f) are concerned with the setting up and operation of a management
system, whilst step (g), auditing, ensures that the overall structure is operating and that
lessons are learnt and fed back for future improvement. The steps are connected with
specific feedback loops necessary for control, review, audit and reporting purposes.
The simple framework shown in Figure 2 is expanded for use throughout this
document to illustrate the process.

1.3.2 Informative guidance

Annex A provides informative guidance to the management process and examples of good
industry practice related to the 'normative' requirements. (The main item numbering in
Annex A corresponds with the normative requirements to assist in relating the guidance to
the normative requirements.)

1.3.3 Control of the top corrosion threats and key mitigation methods

Annex B addresses a number of top corrosion threats and a number of key mitigation
methods and outlines how the corrosion management system model can be applied to their
control.

1.3.4 Checklist

The success of any corrosion management system is reliant upon the review of measures of
performance and on audit to ensure continuous improvement in corrosion management
activities. To assist in these activities Annex C contains a checklist for the self-assessment of
the corrosion management system.

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