Petrobras Amazônia Gas: Repair Logistics Evaluation Study

5, 6 e 7 de Agosto de 2010 ISSN 1984-9354 PETROBRAS AMAZÔNIA GAS: REPAIR LOGISTICS EVALUATION STUDY

Denise Faertes (Petrobras) [email protected] Joaquim Domingues (DNV) [email protected]

The purpose of this paper is to present the study concerning the evaluation of the repair logistics of gas pipeline Urucu-Manaus (extension of 600 km), that was constructed to operate on Amazonia Brazilian region.. The repair logistic is a challenge, regarding specific operation conditions in the jungle, environment and flood variations, difficulty on accessing pipeline path of way, difficulty on transportation, etc. Workshops were made, gathering most experienced company personnel from different Petrobras sectors (engineering, operation, repair centre, integrity area, Brazilian Army, offshore sector, etc.), in order to evaluate and establish strategies for each identified failure scenario, considering type of repair, logistics, resources and costs. First step of the study was to incorporate the experience obtained from the engineering team, responsible for the construction of Urucu-Coari- Manaus gas pipeline as they had to face unexpected and adverse conditions. Based on their, experience, different pipeline sections were defined, considering specific features, like isolation, flooded areas, river crossings, access limitations, etc. Second step was brain storming workshops with the purpose of providing the best Petrobras evaluation of pipeline sections repair strategies, logistics and resources. Failure frequencies were raised and addressed, as well as variables like: - time for failure detection, for digging, for repair, for resources arrival, considering different logistics and transportation modals (using specific boats, helicopters with special characteristics, such as suitable for long line operations, capable of transporting heavy equipment, etc.). Innovative ways of repair were conceived and proposed to be used. Supply contract conditions for thermo plants, industrial and residential consumers were considered. Finally, a cost benefit analysis was performed, considering expenses on logistics and resources and benefits associated with avoided losses for each specific failure scenario, in order to provide support for decision making process.

Palavras-chaves: Repair Logistics.

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INTRODUCTION

PETROBRAS together with DNV has performed an analysis of different options, concerning repair logistics to be adopted in the occurrence of unexpected failure scenarios on gas main pipeline Urucu – Coari - Manaus. This study was carried out considering loss of supply and risk expenditures associated with each one of the options analyzed. Flood conditions, different probable failure scenarios, repair time and repair modals, human and material resources were considered, as well as associated costs. The evaluation was made taking into account comparative gains between options, associated to repair time reductions and normal operation recovery time reductions, expressed in terms of risk of gas supply shortfalls analyzed for each one of the options considered and compared with a basic case scenario. The reliability analysis of the whole Amazonia gas supply chain is not being performed in this study.

GAS SUPPLY SYSTEM CONFIGURATION

Gas supply system configuration is composed by pipeline Uucu- Coari Manaus that was conceived to deliver gas to consumers in the city of Manaus and to seven (7) city-gates located along the pipeline. Gas will be processed in the processing units, located at Urucu. Figure 1 presents an overview of the pipeline. As shown in Figure 2, the pipeline is composed by two sections – Urucu- Coari (GARSOL), 18”, 278.8km of extension, and Coari – Manaus (GASCOM), 20”, 382.3km of extension. Most of the pipeline extension goes through Amazônia forest, crossing rivers and ‘igarapés’, providing gas to different regions of Amazonia state: - Coari, Codajás, Anori, Anamã, Caapiranga, Manacapuru, Iranduba and Manaus. Along the pipeline there are eight (8) pressure reduction stations and the following city-gates: Coari, Codajás, Anori, Anamã, Caapiranga, Manacapuru, Iranduba, Aparecida, Mauá and Manaus refinery (REMAN). Aparecida city-gate supplies gas to Aparecida thermo plant with a pressure of 48kgf/cm2 and to a gas distribution company (CIGAS) with 17kgf/cm2. As shown in Figure 2, along Urucu- Manaus gas pipeline, there are eight (8) pressure reduction stations (ERPs), city gates (PEs) and their associated distribution branches:  ERP Coari (20.2km of 4”) up to PE Coari;  ERP Codajás (25.4km of 3”) up to PE Codajás;

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 ERP Anori (27.5 km of 3”) up to PE Anori;  ERP Anamã (23.7km of 3”) up to PE Anamã;  ERP Caapiranga (6.9km of 3”) up to PE Caapiranga;  ERP Manacapuru (7.0km of 3”) up to PE Manacapuru;  ERP Iranduba - branch (12.4km of 3”) up to PE Iranduba - branch (12.3km of 14”) up to PE Aparecida;  ERP Manaus – city-gate REMAN- branch (3.7km, of 14”) up to PE Mauá. There will be three operational stages for the pipeline, as shown in Figure 2. During the first one, from October 2009, the pipeline is supposed to deliver 4,600Mm3/d, @ 9400kcal/m3, with a pressure of 87.7kgf/cm2 of dry gas from Urucu, only using the compression system located in Urucu. During the second stage, from October 2010, gas volume to be delivered will increase to 6.000Mm3/d @ 9400kcal/m3, with a pressure of 120kgf/cm2, when it will be necessary to put into operation compression stations, located at Juaruna (km 152) and at Coari (km 279). During the third stage, gas flow would increase to approximately 8,925Mm3/d @9400kcal/m3 (including Juruá production), at a pressure of 120kgf/cm2. In this case, three new compression stations would be necessary: - Cajual (km 72.4), Cutia (km 228) e Codajás (km 405). This study contemplates the second configuration described above, which includes only two compression stations (ECOMP´s) Juaruna and Coari. Figure 3 shows some of the twenty three (23) shut down valves along the pipeline: eleven (11 at GARSOL) (seven remotely operated by TRANSPETRO); twelve (12) at GASCOM (8 remotely operated by TRANSPETRO).

  

Distances between river boards and pipeline path of way vary from 500 m to 30 km. Accesses to significant points along the pipeline (SDV´s (23), city-gates (10) and pressure reduction stations (ERP) (8) combine different transportation modals, i.e., by land, by river, by air. All SDVs are provided with helicopter landing areas. Forest glades opened during pipeline construction should be recovered through a formal program specifically created for that purpose. Emergency fighting barges are located near remote transmission units, existent along the pipeline.

GASODUTO URUCU-MANAUS REV.: 3 MALHA NORTE DE GASODUTOS DATA: 13/05/09 TRANSPETRO/DGN/GAS/OP//NORTE GARSOL(URUCU-COARI) (278,8Km ø 18”) UM-AM Km 0 Q = 4600 Mm³/d @ P = 120Kgf/cm² URUCU / AM Q = 4600 GARSOL GASCOM UPGN I EC Q =600 Km Km Km Km Km max P = 112,3 72,4 P = 104 152 P = 95,9 216,1 P = 87,7 279,9 0,0 UPGN II Qmax=6000 P max = 120 ERP UPGN III COARI Q =3000 max ECOMP ECOMP ECOMP ECOMP P = 65 20,2 Km CAJUAL JUARUNA CUTIA Ø 4” GASCOM(COARI-MANAUS) PE (382,3Km ø 20”) COARI Q = 4600 Mm³/d @ P = 87,7Kgf/cm² Q = 17,5 ~ 175 Q = 6000 Mm³/d @ P = 115Kgf/cm² CIGÁS P = 37 Q = 8925Mm³/d @ P = 120Kgf/cm² Km Km Km Km Km 298,7 233,1 P = 62,5 P = 68,9 196 P = 72,1 162,9 P = 75 126,5 P = 78

ERP ERP ERP ERP ERP CAAPIRANGA ANAMÃ ANORI CODAJÁS MANACAPURU ECOMP ECOMP P = 65 23,7 Km P = 65 27,5 Km 25,4 Km 7 Km P = 65 6,9 Km P = 65 P = 62,5 Ø 3” Ø 3” Ø 3” PE Ø 3” PE Ø 3” PE PE PE ANORI MANACAPURU CAAPIRANGA ANAMÃ CODAJÁS Q = 1,5 ~15 Q = 1,5 ~15 Q = 6 ~60 Q = 17,5 ~175 Q = 1,5 ~ 15 Km CIGÁS CIGÁS CIGÁS P = 37 P = 37 P = 37 CIGÁS CIGÁS 382,5 P = 37 P = 37 ERP MANAUS LEGENDA: Km 2 P = 56,9 355,5 P = 51,7 PE P = Kgf/cm REMAN Q = Mm3/dia CIGÁS: Distribuidora Estadual do Amazonas ERP Em Azul: Estágio inicial de operação com compressão IRANDUBA Q = 400 P = 51,7 3,7 Km em Urucu 12,3 Km Ø 14” Em Rosa: Futuro em primeiro estágio de re-compressão 12,4 Km P = 56,9 Ø 14” UTE P = 40 P = 56,9 UTE MAUÁ Ø 3” APARECIDA PE Em verde: Futuro com todas as ECOMP’s operando. PE MAUÁ Q = 6~60 APARECIDA Q = 100 ~ 1200 Q = 135 ~ 2125 PE P = 17 Q = 705,7 P = 17 ELABORAÇÃO: ENG. EMMANUEL BEZERRA P = 37 IRANDUBA Q = 1658,5 P = 48 P = 37 REVISÃO: Coord. ADILSON JOÃO DA SILVA CIGÁS Q = 65 ~ 1075 CIGÁS Q = 150 ~2500  

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GASODUTO GARSOL REV.: 2 MALHA NORTE DATA: 30/05/09 DGN/GAS/OP/NORTE TRECHO URUCU-COARI

- - CAJUAL Km 72,4 Km 31,9 Km 68,4 Km 92,1 Km 113,2 RETIFICADOR Km 68,4

LP-01 SDV-03 SDV-04 SDV-05 SDV-02 REMOTA REMOTA CX PROV.

COR. POLOARARA MEDIÇÃO SDV-01 URUCU Km 0 REMOTA ECOMP

CUTIA Km 216,1 JUARUNA Km 152 Km 199,7 Km 173,4

LP-03 RP-03 SDV-08 SDV-07 REMOTA

MEDIÇÃO SDV-07A MEDIÇÃO REMOTA RETIFICADOR

- ECOMP - ECOMP Km 228,7 Km 261,8 Km 278,5 COARI Km 279 SDV-11 REMOTA LEGENDA: RP-01 Em Rosa: Futuro SDV-09 SDV-10 REMOTA CX PROV. COR. ELABORAÇÃO: ENG. EMMANUEL BEZERRA RETIFICADOR - - REVISÃO: Cood. ADILSON JOÃO DA SILVA  

Gas Demand Petrobras is supposed to deliver 5,500Mm3/d to Amazoniaas Gas Company and to Manaus Energy Company. A gas volume of 2,000Mm3/d will be consumed by independent thermal energy producers, located in Manaus, where 2,800Mm3/d of gas will also be supplied to thermo plants Mauá and Aparecida. There will be gas consumption of 200Mm3/d from small villages, like Coari, Codajás, Anori, Caapiranga, Anamã, Iranduba and Manacapuru. It is forecasted an additional volume of 500Mm3/d for other consumers – local industry and vehicles. Energy Companies that operate locally, using combustible oil, will have their thermo plants adapted to operate with dual fuel, using natural gas as the main option. This study considers that gas demand will be of 5,815Mm3/d, during the whole period of 2010 to 2020. There will be gas provision to Manaus Refinery (REMAN) (see Table 1 below).

 Flow Gas Demand (Mm3/d) CIGAS (gas distribution company) 500 Thermo plants Aparecida and Mauá 2800 Independent energy producers 2000 Seven branches consumers (CEAM) 200

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Manaus Refinery (REMAN) 315 Total 5815

Pipeline Sections For the purpose of this study, pipeline was segmented in several sections, according to the difficulty of accessing the path of way and to different feasible ways (modals) of transportation. Taking into consideration the experienced construction team suggestions, the following sections were considered: o Section 1- GARSOL - from Urucu to km 36 – Access: by land, during flood and dry periods. o Section 2 – GARSOL – from km 36 to km 68 – Isolated and dry area: Inside the jungle, not feasible to access by land or river. Access should be made using helicopter from Urucu. o Section 3 – GARSOL - from km 69 to Coari (km 279): Parallel to Urucu river; up to 3km far from pipeline path of way. Access: by land + river or by air. o Section 4 – GASCOM – from Coari to Anamã + 36 km (km 232): Critical section, difficult soil; impossible to use heavy machines to dig; flooded areas; difficulty to dig and to raise the pipeline for repair. During dry period, in case of failure occurrence, it will be necessary to dig manually. Dificulty of access: through the pipeline path of way due to alternating flooded and dry areas. Access: through igarapés; distances from Solimões river vary from 500m, during flood, to 4 km, during dry period. o Section 5 - GASCOM – from Anamã + 36 km to Manacapuru Lake (km 299): less critical than section 4, but still isolated areas. o Section 6 – GASCOM – Manacapuru Lake (km 299) to Manaus (km 383). Access: by land, from Manaus, after Negro river crossing.

GENERAL ASSUMPTIONS

 Period of Analysis: 10 years from 2010.  Configuration considered: 5,815Mm3/d @ 9,400 kcal/m3; two gas compression stations (Juraruna and Coari).  Failure scenarios: o Only failures related to gas main pipelines were considered, i.e., GARSOL and GASCOM. o Failure scenarios related to SDVs and city-gates are considered to be repaired using helicopters and already existing landing areas around pipeline valves; or through land, using resources already existing on Transpetro operational areas.  Types of failures: o Failures were gathered according to the repair method addressed: o small hole - repaired by leak repair clamps, welded sleeve or composite. o rupture - repaired through pipeline section replacement.  Directional drilling:

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o Only failures modes related to construction or material faults, landslide and earthquakes were considered.  Preventive maintenance: o Regular pig inspections are scheduled; no failures related to pig inspections were considered.  Communication systems: o No failures on communication systems were considered.  Fires: o No fires were considered.  Impacts of failures scenarios: o Only consequences related to gas supply shortfalls (undelivered gas volume, associated loss of income and penalties) were considered. Risks to public, to environment or to assets were not considered.  Intermediate helicopter landing areas: o The construction of additional intermediate landing areas for helicopters along the path of way was evaluated. Sensitive analysis was performed, evaluating gains provided, in terms of time reduction for defect localization.  Isolated areas: o Dry and isolated areas (pipeline sections 4, 5 and 6) were assumed to be repaired using helicopters (models: B212, Kamov or Black Hawk).  Barge with helicopter landing facility: o Helicopter refueling will be provided by those barges.  Helicopter versus helicopter combined with barges: o The study considered a time repair reduction of 12 to 24h utilizing helicopter combined with barge, when compared with the use of helicopter alone.  Special boat: o A special boat featured to be assembled and transported by helicopter, with the purpose of providing support to pipeline repair on flooded areas is going to be developed by Petrobras Research Centre.  Helicopter short line operation: o No safety risks (although they exist and should be taken into account) are being taken into consideration when operating with B212 short line operations.  Bulldozer: o When considering barges combined with bulldozers, the bulldozer arm is considered to be capable of being extended.  Line packing:

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o In case of the occurrence of failures, thermo plants, independent power producers and seven (7) gas branches will be fed by other type of combustible in a maximum time of 20 minutes. After that, only gas steady demand consumers will be fed by line-packing.  Gas consumption to thermo plants Thermo plants will consume 2,800Mm3/d, generating 583MWh. Each one of the five (5) independent power producers will consume 400Mm3/d, generating 60MWh (277 m3/MWh).  Shortfall penalties: o Penalties in case of the occurrence of contract shortfalls were considered.  Leak detection: o Ruptures will be observed by operators on Gas Operation Control Centre or by SDV actuation; small leaks will be detected only by foot inspection every 6 months. Therefore, for small leaks, the detection time varies from one (1) day to six (6) months. A sensitive analysis was performed, considering three (3) months.

 CO2 emission: o Conversion factor ton CO2 = 21 * ton CH4; price- U$50/ton CO2.  Emission reduction: o No effects related to the use of different fuels (gas x oil) were considered.  Flight conditions: o There are unsuitable fight conditions during 4.5 months per year (October to February). During that period, the conditions to flight, during the day, are reduced from 11 to 5 hours per day. This variation is considered to be included on the uncertainty of time to repair, raised in the field.  Periods of flood: o Based on a data basis, there are four (4) different periods, but in this study only two of them were considered: - dry period, during five (5) months; and flood period, during seven (7) months.  Failures scenarios frequencies: o Vulnerability to erosion was considered to impact landslide frequency. o Vulnerability to deforestation was considered to increase third party interference. o River crossing: Frequency of failures related to landslide, when pipeline is crossing specific Amazonia rivers, was considered to be 100% higher, when compared to international statistics. o Earthquakes: a probability for the occurrence of earthquakes was estimated, as well as of damaging the pipeline.

METHODOLOGY

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There were several meetings, gathering Petrobras most experienced and capable team, including technicians from Gas & Power area, Engineering, Transpetro, Brazilian Pipeline Repair Centre (CREDUTO), E&P subsea and also from Brazilian Army. First step of the study was to incorporate the experience obtained from the engineering team, responsible for the construction of Urucu-Coari-Manaus gas pipeline as they had to face unexpected and adverse conditions. Based on their, experience, different pipeline sections were defined, considering specific features, like isolation, flooded areas, river crossings, access limitations, etc. Second step was brain storming workshops with the purpose of providing best Petrobras evaluation of pipeline sections repair strategies, logistics and resources. Those meetings provided a very detailed analysis of operating conditions for different pipeline sections and the evaluation of best practices and strategies to be adopted for pipeline repair, considering each identified failure scenario, type of repair, logistics, resources (human, equipment, material) and costs. Equipment weight was also evaluated. Different repair strategies and logistics options to bring pipeline back to operation were compared with a basic case scenario, in order to evaluate gains in terms of repair time reductions. A cost benefit analysis was then performed, so that those different options could be prioritized.

Pipeline Sections: o Pipeline sections were defined, considering specific features of the region through which pipeline goes, as for example, type of soil, access conditions, isolation, if submitted to flood periods; repair possible strategies and logistics, different transport modals, i.e., by land; by land and river; by land, river and air (helicopter); by helicopter solely.

Failures types: o Failures were grouped according to type and logistics of repair, defined by the work group. For each identified failures scenarios, associated suitable (or feasible) repair types were analyzed. Failure scenarios were grouped into two categories: the first one contemplates failures that could be repaired using leak repair clamps, welded sleeves or by a composite (small holes); the second one relates to failures that require pipeline section replacement (ruptures).

Initiator events frequency estimations: o It was based on international pipeline failure data banks, as EGIG (European Gas Pipeline Incident Data Group). Among possible causes of rupture, there were considered soil movement due to erosion and earthquakes. In case of failures occurring on river crossing, igarapés, where there are directional drillings, it was considered that a new directional drilling should be made.

Repair time estimations:

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o Contingency scenarios were defined, based on the combination of failure type on a certain pipeline section, during flood or dry period and logistic type to be adopted. For each one of the failure scenarios that were identified, minimum and maximum times were estimated. Periods of time to bring pipeline back to operation were composed by the following time estimations:  Warning and SDV’s actuation;  Resources mobilization;  Failure localization and pipeline blow down;  Transportation of people, material, equipment;  Digging, draining and anchoring;  Concrete/cover removal; cleaning;  Repair type definition;  Repair execution;  Pipeline operation recovery.

Failure cost composition: Based on estimated minimum and maximum repair times, associated failure costs were calculated. Those costs include the following:  Difference between the cost of generating energy with an alternative fuel and gas generation cost – for thermo plants, independent power producers; seven (7) branches (CEAM), including undelivered gas volume for CIGAS consumers.  Loss of income related to undelivered gas volume to gas distribution company CIGAS and recovered after 10 years;  Costs related to emergency repair resources.  Cost associated with gas volume leakage;

 CO2 equivalent emission cost.

RISK OF GAS SUPPLY SHORTFALL - RISKEX

Based on failure frequencies estimations and on the associated repair costs for each failure type and location, a risk expenditure value – Riskex - was addressed to each scenario, taking into consideration the product of failure frequency and respective financial losses, related to gas supply shortfall, leaked gas volume and CO2 emission costs. Total pipeline Riskex is calculated considering the sum of individual Riskex values, evaluated for each pipeline section and location analyzed:

Riskex   frequency x failure cost

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Riskex reduction: The Riskex reduction is calculated through the evaluation of the gains obtained from the difference of Riskex values, associated with each one of the options analyzed, and Riskex value, associated with the base case scenario. Results are presented in terms of Net Present Values (NPV) addressed to each analyzed option, when compared with base case scenario and are given by the difference between the gain (present value of Riskex reduction), additional costs for each specific option (CAPEX) and present value of operational and maintenance costs (OPEX). Based on that, those options were prioritized.

EVALUATION OF CONTINGENCY SCENARIOS

Brainstorming workshops were promoted with best in class Petrobras pipeline team, in order to define strategies and logistics for pipeline repair. Besides the definition of basic case scenario, eight (8) additional logistics access options for repair execution were evaluated for each specific location type, along pipeline path of way. Tables 2 and 3 exemplify repair logistics options for each location type, considering basic case and others options, using special barges and helicopters. Regarding the implementation of additional helicopter landing areas, a sensitivity analysis was performed, in order to evaluate the gain that they could provide, as independent events, for fault location time reduction.



Local Type Basic Case – Barge built in 3 months Barge adapted in 10 to 20 days Barge (H shape) plus Marrecas barges Dry location; Pick up/Truck loading crane; Pick up/Truck laoding crane; Pick up/Truck loading crane; Access: by land Manual digging. Manual digging. Manual digging. Helicopter B212; Helicopter B212; Helicopter B212; Emergency landing areas; Emergency landing areas; Emergency landing areas; Dry location; Isolated Manual digging. manual digging. Manual digging Dry location; Slope Barge (Dry Cargo); Bulldozer. Barge (Dry Cargo); Bulldozer. Barge H ; Bulldozer Barge (Dry Cargo); Bulldozer; Barge (Dry Cargo); Bulldozer; Barge H, Bulldozer; Dry location Vegetation suppression. Vegetation suppression. Vegetation suppression. Construction of a barge with a bulldozer; Barge adapted with a bulldozer; Barge H and Marrecas with bulldozer; Vegetation suppression; Vegetation suppression; Vegetation suppression; Flooded location Pipeline should be raised. Pipeline should be raised. Pipeline should be raised. Should wait until flood level is reduced; Construction of a barge in three months with Should wait until flood level is reduced; Should wait until flood level is reduced; High flood level a bulldozer; Barge adapted with a bulldozer; Barge H and Marrecas with buldozer; location Pipeline should be raised Pipeline should be raised. Pipeline should be raised. Construction of a barge in three months with a bulldozer; Barge adapted with a bulldozer; Barge H and Marrecas with buldozer; Conventional Crossing Pipeline should be raised. Pipeline should be raised. Pipeline should be raised. Directional Crossing Barge and machine third party services Barge and machine third party services Barge and machine third party services

Deep Conventional Barge with hyperbaric chamber from Barge with hyperbaric chamber from Barge with hyperbaric chamber from Campos Crossing Campos Basin; saturated diving Campos Basin; saturated diving Basin; saturated diving

 Helicopter Kamov(5 ton)/MI 171 (4 ton) Helicopter Black Hawk/Cougar 532 (3,5 Local type Helicopter B-212 (1.2 ton) mobilized in 4 to 10 days ton) mobilized in 1.5 to 4 days Dry location Access Pick up/Truck loading crane; Pick up/Truck loading crane; Pick up/Truck loading crane; by land Manual digging Manual digging Manual digging Helicopter B-212; Helicopter Kamov/MI 171; Helicopter Black Hawk/Cougar 532; Emergency landing areas; Emergency landing areas; Emergency landing areas; Dry location Isolated Manual digging. Digging using bobcat. Digging using bobcat. Helicopter B-212; Helicopter Kamov/MI 171; Helicopter Black Hawk/Cougar 532; Emergency landing areas; Emergency landing areas; Emergency landing areas; Dry location Slope Manual digging. Digging using bobcat. Digging using bobcat. Helicopter B-212; Helicopter Kamov/MI 171; Helicopter Black Hawk/Cougar 532 ; Emergency landing areas; Emergency landing areas; Emergency landing areas; Dry location Manual digging Digging using bobcat. Digging using bobcat. Helicopter B-212; Helicopter Kamov/MI 171; Helicopter Black Hawk/Cougar 523; Emergency landing areas; Emergency landing areas; Emergency landing areas; Draining pumps; Draining pumps; Draining pumps; Flooded location Subsea repair. Subsea repair. Subsea repair. Helicopter B-212; Helicopter Kamov/MI 171; Helicopter Black Hawk/Cougar 523; Emergency landing areas; Emergency landing areas; Emergency landing areas; High flood level Draining pumps; Draining pumps; Draining pumps; location Subsea repair. Subsea repair. Subsea repair. Helicopter B-212; Helicopter Kamov/MI 171; Helicopter Black Hawk/Cougar 523; Emergency landing areas; Emergency landing areas; Emergency landing areas; Draining pumps; Draining pumps; Draining pumps; Conventional Crossing Subsea repair. Subsea repair. Subsea repair. Directional Crossing Barge and machine third party services Barge and machine third party services Barge and machine third party services Deep Conventional Barge with hyperbaric chamber from Campos Barge with hyperbaric chamber from Campos Barge with hyperbaric chamber from Crossing Basin; saturated diving Basin; saturated diving Campos Basin; saturated diving

CONCLUSIONS AND RECOMMENDATIONS

Table 4 below shows a resume of the options that were analyzed:

 Base Case Barges to be constructed in three months Other Logistics Options Barges to be adapted use (10 to 20 days) Barges (H shape + Marrecas) purchased Helicopter B212 (1.2 ton) Helicopter Kamov (5 ton)/MI 171 Helicopter Black Hawk/Cougar 532 (3.5 ton) Barge and Helicopter B212 (1.2 ton) Barge and Helicopter Kamov (5 ton)/MI 171 (4 ton) Barge and Helicopter Black Hawk/Cougar 532 (3.5 ton) Negro River Crossing Hyperbaric chamber Inspection Reduction Sensitivity Fault detection time – each 3 months

For each one of the options that were considered, failure frequency scenarios and minimum and maximum repair times were estimated, for each failure location type and pipeline section. Then, costs associated with each time to repair were estimated and expressed in terms of loss of supply to consumers. Those costs took into account the difference between energy generation costs, associated with the use of combustible oil by thermo plants, by independent power producers and other consumers, CEAM, CIGAS. Costs associated with emergency repair resources and CO2 emission costs were also considered. Once costs have been estimated, risk values were calculated (Riskex – Risk Expenditures) as a product of frequencies and costs. Then, for each analyzed option Riskex reductions were calculated, when compared with basic case scenario, and net present values addressed. Those values are shown on Figure 4. The option related to the greater NPV value refers to the use of helicopter B212 to perform repairs. But there are safety restrictions related to the use of that kind of helicopter performing short line operations due to Amazonia trees height. Long line helicopter operations are considered to be much safer. Therefore, as can be noted on Figure 4, the third best option, in terms of NPV, is the use of a service support barge, combined with helicopter from Brazilian Army (helicopter Black Hawk/Cougar 532), adapted for operation with long line. When choosing that option, for flooded areas or for conventional crossings, it will be necessary to count with subsea repair resources, with a special diving support boat, that could fit and be mobilized through the use of helicopter. In order to point out necessary arrangements that should be anticipated, so that option can be feasible as the one that could give best support to all identified failure scenarios, the following recommendations are made: o Petrobras should establish a detailed agreement with Brazilian Army;

VI CONGRESSO NACIONAL DE EXCELÊNCIA EM GESTÃO Energia, Inovação, Tecnologia e Complexidade para a Gestão Sustentável Niterói, RJ, Brasil, 5, 6 e 7 de agosto de 2010

o Internal company agreements should be established, so that subsea repair expertise could be brought to Transpetro, that is responsible for pipeline operation, inspection and maintenance; o Previous agreements and emergency strategies should be established with Amazonia Environment Authority, Citizen Defense and Brazilian Army; o Development of a special diving support boat with a moon pool that could fit and be mobilized by helicopter (by Petrobras Research Centre); o Training of Brazilian pilots on long line operations; homologation of helicopters/pilots for long line operation; o Simulation and training on subsea repair during flood conditions; o Logistics emergency simulation and training; o Investments on the implementation and improvement of Pipeline Repair Advanced Center in Manaus and Coari (the Pipeline Repair Centre is located in São Paulo); o Consumers, as thermo plants, independent energy producers and others should be prepared to commutate their turbo machines to combustible oil, so that shortfall impacts could be minimized; o Procedures should be taken in order to avoid combustible oil degradation, during storage time; o A data basis system, responsible for erosion and deforestation monitoring, should be kept updated; it should also be utilized as an input for inspection procedures planning; o Contact and training programs should be established with local community, along pipeline path of way, so that they could give warning when leaks occur and for supporting during pipeline path of way maintenance purposes; o Emergency and prompt response programs should be well established. This study has provided an important contribution to the operation and repair of Urucu-Coari- Manaus pipeline and for experience exchanging between personnel from different Petrobras areas. It has gathered technicians from Petrobras Engineering, who brought their experience on pipeline construction to the group; people from São Paulo Pipeline Repair Centre (CREDUTO), who contributed with their expertise on onshore pipeline repair; technicians from TAG, who contributed with their expertise on pipeline repair; people from Petrobras Research Centre (CENPES); whose contribution was very significant, with the availability of Amazonia data collection and monitoring system and also with the possibility of developing new technologies for repair support; experts from E&P area, who contributed with their know how on subsea repair; and for sure, Transpetro operational team, who brought important information and experience. It was an exercise of anticipation of risk and crisis scenarios, that provided an important support for the decision making process, related to best investment allocation, concerning different options of repair resources and logistics. This work brought formal and innovative solutions, as well as recommendations for optimizing Amazonia gas pipeline operation.

Net Present Value of Each Option in Relation to the Base Case 140.00 120.00 Repair Logistic Options Inspection 3 100.00 Months 80.00

60.00 Intermediaries Negro River Helicopter Landing 40.00 Crossing Areas

20.00 NPV (Millions R$) 0.00 -20.00 B212 -40.00 60 APODOs Kamov/MI 171 Barge and B212

Hyperbaric ChamberFault Detection Time Black Hawk/Cougar 532 Barge and Kamov/MI 171 12 APODOs20 IsolatedAPODOs Places Intermediaries

Barges (H shaped and Marrecas) 12 APODOs Wood Isolated Places Barge and Black Hawk/Cougar 532 Option Barges to be adapted in 10 to 20 days NPV Minimum NPV Average NPV Maximum

 

ACKNOWLEDGMENTS

The authors would like to thank to the following engineers, who have contributed to this paper:  Mauro Loureiro and Gilberto Barbosa (Petrobras Engineering)  Mucio Pinto (Petrobras/CREDUTO)  Adilson da Silva, Leonardo Forte, Claudio Batista e Silva (TRANSPETRO)  Celso Pereira and Jesualdo Lobão (TAG)  Fernando Pellon, Claudia Tocantins and Ney Robson (Petrobras Research Centre (CENPES)  Heraldo Pamplona (Petrobras/E&P)  Gustavo Parente e Luiz Pires (Pontifícia Universidade Católica)

REFERENCES

CREDUTO, Operation Guide – Pipeline Repair Logistics – Coari Repair Advanced Centre, 2009. EGIG, 7th Report of the European Gas Pipeline Incident Data Group, 1970 - 2007, 2007. Transpetro, Technical Report – Pre-operation of Urucu-Coari- Manaus Pipeline, 2009. Transpetro, Technical Report, GT 4, Logistics Technical Solutions Implementation, 2009.