SPOOLABLE COMPOSITE PIPELINESAPI 15S Qualified, Corrosion Resistant, Lower Install Cost, Quicker Time to First Oil

Jeffrey PikeWell Site Facilities Canada 2019

Calgary, AB

2

+ AGENDA

→ Introduction→ Technology→ Operating Envelope → Qualification to API 15S→ Challenges→ Deployment History and

Case Studies→ Economics

Spoolable Composite Pipelines

3

+ INTRODUCTION

→ Founded in 2001 as Flexpipe Systems→ Now Shawcor Composite Production

Systems → Over 20,000 miles of pipe and 160,000

fittings installed worldwide→ 25 product, research, and applications

engineers and technicians→ Over 15 patents→ Division of Shawcor (6,000 employees

worldwide)

Shawcor Composite Production Systems

TECHNOLOGY

FlexPipe FlexCord

→ Helically wrapped, unbonded→ Up to 4” ID, FP 1500 psi at 180F, FC 2250 psi at 140F→ Will focus on these technologies as representative

TECHNOLOGY

Weldneck Fitting

→ Electroless Nickel (ENC) coated carbon steel – Standard material→ Externally coated with corrosion protective tape→ Duplex Stainless Steel – Optional material

Pipe to Pipe Coupler Flanged End Fitting

Fittings

TECHNOLOGY

Fittings

TECHNOLOGY

→ Crimping pressure is controlled by hydraulic pressure to each piston

→ Crimper pistons and dies move independently

→ Field friendly – no need for precise fit up and adjustments

→ One-piece fitting increases ease of fitting installation

Fitting Reliability

TECHNOLOGY

→ API 15S “Spoolable Reinforced Plastic Linepipe”→ Requirements for the manufacture and

qualification of spoolable reinforced plastic line pipe in oilfield applications

→ Internationally recognized; monogram program→ 2016 edition - contributors included Shawcor

(CoChair), all major manufacturers, Exxon, Saudi Aramco, Marathon, Shell, Conoco Phillips, YPF, Chevron, Occidental, PHMSA (US DOT)

API 15S Standard, 2nd Edition

OPERATING ENVELOPE

→ Review of the testing requirements 15S→ Primarily reference the FlexPipe product

line testing, which has been successfully completed

Design & Testing to API 15S

OPERATING ENVELOPE

→ Two burst tests on each reel of pipe→ 7,400 psi minimum→ 8,000 psi typical

Burst Testing FlexPipe

OPERATING ENVELOPE

→ API 15S Section 5.3.3.3→ ASTM D2992, Procedure B→ Minimum 18 samples; over 10,000 hours→ Design Factor applied to obtain pressure

ratings

Regression Testing

OPERATING ENVELOPE

→ From API 15S - “An engineering assessment shall be conducted to verify that the materials will retain integrity and fitness for purpose”

→ “The assessment shall be based on testing and experience and shall predict the aging of the material under the influence of fluids or environment”

→ In general, the fluid factor is set to 1 or 0→ Either compatible, or not→ Synthetically prepared crude oil is used for testing

Fluid Service Factors

OPERATING ENVELOPE

→ Full pipe samples and dog bone tensile samples

→ Tested with 50% aromatics/solvents (cyclohexane, toluene, xylene plus 50% hexane, heptane, octane, etc)

→ Saturated at maximum operating temperature 180 °F

→ Followed by pressurized hold tests; tensile tests

50% Aromatics in Oil Testing

OPERATING ENVELOPE

→ API 15S, Annex G regression testing to ASTM D2992→ Minimum 18 samples; over 1 MM cycles→ Service factor of 0.1 applied to obtain cyclic rating→ Shawcor – 3 generations of cyclic testing machines

Pressure Cyclic Testing

OPERATING ENVELOPE

→ API 15S Section 5.4.3→ Check for failure modes related to

possible thermoplastic degradation within the fittings

→ Elevated temperature used to accelerate failure modes

→ Tested at 225 °F (for design temperature of 180 °F)

→ Minimum 277 hrs, 3,500 psi

Elevated Temperature Test

α time-temperature shift factortDesign Life is the design life time (hours)tTest test time (hours)log log base 10ΔT test temperature minus the product's MAOT

OPERATING ENVELOPE

→ API 15S Section 5.5.1 & Annex C→ Saturate with CO2 at 180 °F and 1,500 psi→ Depressurize at 1000 psi/minute→ Examine for blistering, liner collapse, etc

Rapid Decompression Testing

OPERATING ENVELOPE

→ API 15S Section 5.5.2→ Samples held at operating MBR (7 ft for 4” pipe)→ Conduct 1000-hr hold test 4,000 psi at 180F→ Also conduct 1000-hr hold test on samples pre-conditioned with 10 bending cycles to MBR

Minimum Bend Radius (MBR) Test

OPERATING ENVELOPE

→ API 15S Section 5.5.3→ Hold sample at allowable axial tension

load for minimum 1 hour (6,000 lb for 4”)→ Followed by 1000-hr hold test at 4,000 psi,

180F→ Couplings included

Axial Load Test

OPERATING ENVELOPE

→ API 15S Section 5.7.3; ASTM D2444→ Strike the pipe with 20 lb steel up dropped from

varying heights → Conduct 1000-hr hold test at 4,000 psi and 180F→ Passed test with a drop from 10 ft

Impact Resistance

OPERATING ENVELOPE

→ Dog-bone shape polyethylene tensile bars were subjected to accelerated UV exposure → Testing to ASTM G155/ASTM D2565

→ UV Formula for grey PE jacket includes:→ TiO2, Anti Oxidizer, HALS (Hindered

Amine Light Stabilizers), and Carbon Black

→ Minimum 20 year UV life confirmed→ Greater than 50% of original elongation

at break based on accelerated exposure testing

UV Exposure Testing

OPERATING ENVELOPE

→ Typical chemical injection fluid carriers are aromatics, water, or methanol

→ Polyethylene is compatible with most oil industry corrosion inhibitors, hydrate breakers, biocides, scale inhibitors, paraffin dispersants, etc.

Chemical Injection

OPERATING ENVELOPE

→ Flow lines or gathering lines for transfer of:→ Crude oil→ Natural gas→ Oil emulsion→ Produced/Injection Water→ H2S and CO2 compatible

→ Enhanced Oil Recovery → Fuel Gas lines or gas lift lines→ Well test temporary surface lines (re-spool

and re-use)

Typical Applications

OPERATING ENVELOPE

→ Customer completes the form→ Shawcor Engineering provides

comments for long life→ Engineering provide Approval if

acceptable→ Acceptance document returned to

customer→ Approval before shipment of pipe

Application Review

OPERATING ENVELOPE

Typical Product Applications

Oil Gathering40%

Gas Gathering 31%

Water Transfer

15%

Water Injection

14%

FlexPipe Applications History

Challenges and Solutions

→ In severe cases, the line moves with cycles, twist can build and over time may move into a corner and cause a kink

→ Ensure surface pipe is installed per instructions→ Remove excessive slack in line→ Anchor line with dirt or sand piles every ~300 ft→ Inspect pipeline monthly

Pipe Twist on Surface Lines

Deployment

→Plowing→Trenching→Chain ditching→Liner pulls→Boring→Surface lines

Methods

Deployment

→ Insert spoolable composite pipe through a failed steel line→ 4” FlexPipe can be pulled through a 6” steel line→ Can pull multiple lines at one time→ Install up to 2.5 miles / day

Liner Pulls

Case Study

→ 3” FlexPipe HT→ Oil Emulsion operated up to 750 psi at 180 °F→ Customer decision based on:

→ Rapid installation→ Product durability while handling pipe in rocky

terrain→ Long term operating reliability with no concern

for pipeline corrosion→ In service for ~ 6 years with no issues

Australia Hot Oil Emulsion

Case Study

→ Well Flowback Operations with 4” FlexPipe HT → Up to 1200 psi and 180 °F→ Produced oil emulsion→ Temporary surface installation and re-spool; multiple times

Middle East Zero Flaring

Economics

→ Customers estimate 30% overall cost savings→ Material cost similar to steel pipe, installation cost much lower→ Approximately 1/4 to 1/2 the time vs installing steel

→ Faster time to production→ Lower operating costs

→ Eliminate Corrosion inhibitor→ Less fouling and lower friction (smooth PE liner)

→ More production→ Lower pump energy costs

Spoolable Composite Pipe vs Steel Pipe

Summary

→ API 15S Qualified and Industry Accepted→ Corrosion Resistant→ Lower Install Cost→ Time to First Oil

Spoolable Composite Pipelines

February 15, 2019

Thank you.

Questions?