Annexure III

Scope of work

Objective:

 Ensure Asset integrity of all pipings and static equipment is maintained to ensure
fitness for service over the remnant life.
 Ensure that current inspection strategy, frequency and practices are in line with the
recommended RBI inspection recommendations, identify gaps if any.

There are 11 process complexes for which Risk based Inspection study was
carried out besides unmanned platforms. Risk based inspection was done based on
the inspection plan provided by consulting agencies like DNV, BV and ABS. NDT
reports for any vessel will be like UT conventional / advanced NDT, DP test, external
inspection, hardness test etc. to account for different damage mechanisms. It is
proposed to treat one pipe (based on tag in P & ID) / vessel as a unit for
interpretation of advanced NDT or conventional UT reports for that vessel/ pipeline.
Asset-wise certification of process complexes / Un-manned platforms for NH and MH
Assets are as follows:

Sr. No. Asset DNV Certified BV Certified ABS Certified DNV

Process process unmanned Certified
Complexes complexes platforms Unmanned
platforms

1 MH 3 4 78 Nil

2 NH Nil 2 Nil 33

3 B&S 1 1 12 Nil

1.0 Analysis of defects found in Non-Destructive Testing carried out as a part of Risk
Based Inspection program for static equipment and piping will be done as per Rule
30 of petroleum and Natural Gas (Safety in Offshore) and broad guidelines provided
by OISD 128, OISD 130, API 510, API 570 and API-579

2.0 Area of Operation: This job covers Fit for service analysis for all the defects found in
NDT carried out mainly as a part of Risk Based Inspection program for ONGC
offshore installations of Mumbai High Asset, B & S Asset and Neelam Heera Asset.
3.0 Asset-wise tentative quantum of work is as follows

Sr. Asset No. of No. of RBI Inspection plan

No. vessels Pipelines provided by

1 B&S 208 691 DNV/ABS/BV

2 MH 250 1800 DNV/BV

3 NH 92 746 DNV

TOTAL 550 3237

‘Assessment level-wise’ tentative quantum of work is as follows:

Sr. No. Type of Assessment Tentative No. of Tentative No. of Pipelines

as per API-579 Vessels

1 L-I 550 3237

2 L-II 358 2104

3 L-III 36 210

Quantum of work is tentative for the quantity as well as locations. ONGC may
offer NDT reports of other vessels/pipelines for FFS analysis due to operational reasons.
However total value of work will not exceed total value of the contract reported in
aforesaid tables. Quantities for L2 level assessment are 65% of the quantities for L1
level assessment. Quantities for L3 level assessment are 10% of quantities for L2 level
assessment.

4.0 General facilities and details. Soft and Hard copies will be provided for interpretation
purpose.

5.0 Scope of Work

5.1 “Fitness for Service” analysis based on reports provided defects noted during
Non-Destructive Testing for static equipment and piping.

5.2 Bidder shall provide assessment by Fitness-For-Service (FFS) methodology

which shall be quantitative engineering analysis process, incorporating
calculations and assessments, which are performed to assess the integrity of
an in-service item of plant, containing defects or has the potential to develop
defects.
5.3 Bidder shall review Non-Destructive Testing report and shall provide
comments for improvement in better reporting format of inspection results to
help update Fitness-For-Service (FFS) Assessment.

5.4 Bidder shall finalize the defect category from all the anomalies noted in
reports.

5.5 All the defects shall be analysed by Bidder based on Fitness for service
standard API-579, API 510 and API 570.

5.6 In order to get the best out of Fitness-For-Service (FFS) assessment and help
the final decision process, bidder shall effectively use the results in the Risk
Based Inspection (RBI) study for the affected equipment or piping.

5.7 Bidder shall provide analysis based on plant operational loads and process
conditions (e.g., normal operation, fault scenarios, start-up/shutdown,
chemical cleaning, etc.)

5.8 Bidder shall choose the appropriate Fitness-For-Service (FFS) assessment

methods.

5.9 Bidder shall gather all relevant data and shall complete the assessment, by
analyzing the results.

5.10 Bidder shall carry out Fitness for service considering following to
demonstrate integrity of equipment and piping

 Deterioration or loss of wall thickness by thinning DM

 Presence of a flaw by cracking mechanism or has the potential for

initiation of a cracking DM

 Operating conditions conducive to material properties change and /

or metallurgical damage

 Concerns on not meeting current design codes or best practices

 Concerns on not meeting the design code during construction

 Concerns on operating conditions which has the potential for

initiation of brittle fracture

 Concerns on current operating conditions fault scenarios

 Change in normal operating condition which is more onerous than

current

 Operation under high temperature creep environment

 Operation under mechanical or thermal fatigue environment

  Concerns after fire damage

 Concerns due to overheating

 Additional justification for operating major hazard equipment,

where failure can lead to catastrophic HSE.

5.11 Depending on the Non-destructive testing results and damage

mechanisms in Risk based inspection report bidder shall perform Fitness-For-
Service (FFS) Applications to address various types of Damage
Mechanisms and Operating Conditions but not limited to:-

 Allowable low temperature / pressure envelope to guard against Brittle Fracture

General metal loss and remaining life
 Localized metal loss and remaining life
 Pitting type corrosion and remaining life
 Shell out-of-roundness, weld misalignment, peaking at weld seams
 Hydrogen blisters and laminations
 Stress Corrosion Cracking
 Planar or crack-like flaws and remaining life
 Fatigue damage and remaining life under cyclic load service (e.g. pressure or
thermal cycles)
 Creep damage and remaining life under high temperature service
 Dents/Gouges and remaining life
 Fire Damage or Overheating and remaining life.

5.12 Depending on applicability, Bidder shall clearly mention following as a output

of Fitness of Service analysis.

 Tolerable thinning (e.g. corrosion, erosion) damage sizes and damage rates
 Tolerable crack sizes and crack growth rates
 Tolerable pressure vs. temperature operating envelope
 Tolerable material toughness and/or other mechanical properties
 Remaining life
 Fatigue Life
 Creep life
 Integrity Operating Limits / Windows
 Critical Maintenance Activities
 Other risk mitigating measures (e.g. design improvements, material upgrade,
changes to current operating conditions, etc)
 Suitable intrusive and/or non-intrusive NDT inspection (If required further to
analyze)

5.13 In addition to 5.12, assessment report shall clearly mention following items as
Outcome and final decision making

 Run the item as it is and at what optimum inspection interval

 Monitor the defect(s) and at what monitoring frequency
 Repair / replace item and when should be carried out
  Revise operating conditions
 Modify design and/or upgrade material
 Implement identified Integrity Operating Limits, and other risk mitigating
measures.
 Modified inspection intervals shall be provided for all equipment and piping,
irrespective of defects noted in nondestructive examination.

6.0 Bidder will involve experienced personnel for interpretation of NDT reports. He will
submit the list of API-510 and API 570 certified personnel along with their resume,
who will be signing final FFS reports, before taking up the job. He will also submit
resume of experienced personnel carrying out FFS certification before initiation of
the job, in mobilization period.

7.0 L1,L2 and L3 level assessments are the assessment levels for deciding the
fitness level of vessels and pipes. They are as specified in API 579. Assessment
complexity increases with ascending order of degree of assessment, i.e. L3 is the most
complex, L1 is the least complex type of assessment. All NDT reports of pipes and
vessels will undergo L1 level assessment. Out of those reports some may require
further probing. They will qualify for L2 level assessment. Few reports of L2 level
assessment may require L3 level assessment.
Flow chart for the Interpretation process is tabulated below:
Sr. No. Activity Duration
1 Handing over of NDT reports by ONGC to As and when available
bidder in soft or hard form on a particular date to ONGC
2 Carry out L1 level assessment for the reports 6 months from handing
handed over over of reports by
3 Submit FFS report if no further assessment is ONGC
required. If further assessment is required
then, submit interim report stating the need for
further assessment
4 L2 Level assessment will be presumed to be 3 months from the
started as soon as ‘Go ahead’ is received from date of receipt of ‘Go
ONGC for further analysis interim report is ahead’.
received
5 Submit FFS report if no further assessment is
required after L2 level assessment. If further
assessment is required then submit interim
report stating the need for further assessment
6 L3 Level assessment will be presumed to be 3 months from the
started as soon as ‘Go ahead’ is received from date of submission of
ONGC for further analysis interim report is interim report or
received submission of data
requested by
contractor for study. In
case ONGC is not able
to provide the data in
six months after the
 receipt of the request
of the contractor then
payment for that
report will be released
for assessed levels.

8.0 Applicable codes and Standards

 API 579-1:2007/ASME FFS-1:-Fitness-For-Service, Second Edition, is a

standard released by the American Petroleum Institute (API) in July of 2007.

 API 510 - Pressure Vessel Inspection Code: In-Service Inspection, Rating,

Repair, and Alteration.

 API 570 – Piping Inspection Code: In-service Inspection, Rating, Repair, and
Alteration of Piping Systems

 OISD-STD-128 - Inspection of Unfired Pressure Vessels

 OISD-STD-130 - Inspection of Piping Systems

 Special conditions of the contract

1.0 Payment schedule:

1. Payment for interpretation of NDT reports is to be made for vessels/ pipes

depending on the level of assessment. If vessel/ pipe requires L1 level
assessment only. Then payment will be released as per L1 Level assessment rate
after submission of FFS report. If NDT reports of a vessel/pipe require L2 level
assessment in addition to L1 assessment then that particular pipe/ vessel tag will
qualify for payment as per L2 level assessment rate after submission of FFS
reports in addition to L1 level assessment rate. Similar strategy is to be adopted
for pipes/vessels requiring L3 level assessment.
2. Payment will be made every month for submitted FFS reports as per applicable
rates.
3. Each asset will make payments separately for the FFS reports pertaining to that
asset
4. In case ONGC does not agree for L2 or L3 level assessment due to any reason
then payment as per L1 and L2 Level assessment will be made.

2.0 L.D. Clauses:

1. Mobilization L.D will be 0.5% of the total contract value, for relevant asset, per
week. L.D. will be applicable on annual contract value excluding taxes.
2. FFS reports which get delayed beyond stipulated period i.e. 6 months after the
handing over of NDT reports by ONGC will attract L.D. of 0.5% per week per
tag of vessel/pipe, depending on applicable rate for that FFS report excluding
tax. L.D will not exceed 10% of the applicable rate for a delayed FFS report.
3. Total L.D. (L.D. on account of mobilization and delay in submission of reports)
will not exceed 10% of the total contract value excluding taxes.

3.0 Other Conditions:

1. Duration of the contract will be 1 year from the placement of NOA

2. FFS reports will be signed by API-510 (For FFS of vessels) and API 570 (For
FFS of pipes) certified personnel besides Project In-charge of the contractor
3. Mobilization period is 4 weeks from date of placement of NOA.
4. Evaluation will be based on lump-sum basis for the entire scope of work.
5. Payments will be made as per actual assessed units (Pipes / vessels).