During this period of declining oil prices, PETRONAS recognizes the extremely effective cost optimization represented by the ability to rehabilitate near-end-of-life pipelines as opposed to mounting large-scale replacement campaigns.
The InField Liner (IFL) system, developed under the joint management of PETRONAS and Anticorrosion Protective Systems (APS), when installed in existing subsea pipelines acts as a corrosion barrier, providing protection against aggressive service conditions and extending the use of the pipeline far beyond its original design life.
The IFL system was successfully piloted at PETRONAS Carigali Sdn Bhd’s (PCSB) Samarang Field in September, and a commercial trial was deployed at West Lutong Field in November 2014.
Liner specs
The IFL comprises a polyvinylidene fluoride (PVDF) inner liner from Solvay and a tightly woven Aramid core using Dupont Kevlar fabric with an outer layer of abrasive-resistant thermoplastic polyurethane (TPU) from BASF.
The inner PVDF layer provides a high chemical resistance against the most aggressive hydrocarbon exposure conditions, including hot sour crude oil up to 110 C (418 F). The Kevlar core provides the liner with an extremely high tensile strength, thus enabling the insertion of single lengths of multiple kilometers of liner through multiple 90-degree bends down to 5-D radii. The outer TPU covering provides a maximum protection and abrasion resistance as might be required during the pulling and insertion process of the IFL system into the host pipeline.
Liner applications
The IFL system is ideal for rehabilitating infield subsea pipelines running from platform to platform or from platform to shore. The IFL also can be used as a corrosion barrier for new pipelines that will be exposed to extremely corrosive environments incurred due to the aggressive environmental influences or in combination with high water cuts or other conditions where the predicted lifespan of the pipeline is reduced without the application of a fully effective corrosion-resistant layer.
The IFL system was originally developed as a viable and cost-effective method for subsea pipeline rehabilitation; however and in addition to this, the IFL system also might have specific applications for the onshore hydrocarbon pipeline industry as well. An example of this would be where a pipeline passes under an area where, for one reason or another, site access is extremely limited, and thus the pipeline has to be rehabilitated over much longer lengths with single pulls of up to 5 km (3 miles).
Liner development
During the IFL development project, a detailed research program was conducted into the potential rehabilitation market for this technology. At present there are about 175,000 km (108,740 miles) of subsea pipelines in operation around the globe, of which about 15,000 km (9,320 miles) will become due for replacement in the next 10 years as these pipelines have reached the end of their planned service life. These pipelines, ranging in diameter from 4 in. to 20 in., form the main target market for the IFL technology.
Regionally, the largest market potential for IFL worldwide is in North America and specifically the Gulf of Mexico, a large and aging pipeline network where close to 3,000 km (1,864 miles) of pipelines are in need of replacement during the next 10 years. Also, the Middle East and Southeast Asia have large potential markets for the IFL, each having about 2,000 km (1,243 miles) of pipelines that will need to be replaced during the next 10 years.
Prior to APS being granted the exclusive license to produce and market the IFL technology at the end of November this year, a soft launch of the IFL technology was instigated with the major offshore oil and gas operators, mainly in Southeast Asia, the Middle East, North America and West Africa. The main benefit is to provide a viable alternative to pipeline replacement.
PETRONAS granted APS a global 20-year exclusive license to apply the technology for other oil and gas operators.
“The exclusive license will enable the globalization of the IFL technology so that it becomes available for usage in PETRONAS facilities in and outside Malaysia. This also opens the market toward a new and cost-effective way in recommissioning damaged or corroded pipelines for other oil and gas operators,” said Tn Hj Zakaria Kasah, chairman of PETRONAS Technology Ventures.
Planned projects
APS was awarded multiple production and installation contracts worth more than $150 million in late 2015 by PETRONAS for the rehabilitation of various 6-in., 8-in. and 10-in. subsea crude oil gathering and high-pressure gas and condensate lines varying in lengths from 700 m (2,296 ft) up to 3.5 km (2.1 miles). These pipeline rehabilitation projects are expected to be executed during the course of 2016 and the start of 2017, and more contract awards are expected at the start of 2017 for execution in 2018 and 2019.
Recommended Reading
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Archrock Offers $500 Million in Secure Notes for TOPS Deal
2024-08-12 - Archrock is raising debt and selling equity to pay for its $983 million acquisition of Total Operations and Productions Services.
Archrock Offers Common Stock to Help Pay for TOPS Transaction
2024-07-23 - Archrock, which agreed to buy Total Operations and Production Services (TOPS) in a cash-and-stock transaction, said it will offer 11 million shares of its common stock at $21 per share.
Permian Consolidation Piques Interest in Drill-to-earn Opportunities
2024-08-14 - Drill-to-earn arrangements have been utilized in the Permian for years in the forms of joint ventures, farm-outs and other customizable agreements.
Permian Surface-owner LandBridge to Raise up to $367MM in IPO
2024-06-17 - Houston-based LandBridge holds some 220,000 surface acres in the Delaware Basin.