FEATURE Oil & Gas
Ageing well!
Rapid technological progress can be a double-edge sword. On the one hand, emerging automation technologies allow us to gather real-time production data and optimise processes more efficiently than ever before. On the other, the continuous development of new products and solutions means that components can become obsolete more quickly. Here, Neil Ballinger, head of EMEA at automation equipment supplier EU Automation, explains why implementing a proactive obsolescence management plan is crucial
F
ierce competition, volatile prices and increasingly stringent regulations have pushed many oil and gas companies to keep their assets in operation for longer than anticipated periods of time. As a consequence, the sector has increasingly been relying on ageing assets, with a potential risk of failures due to equipment degradation, corrosion and fatigue. Add extreme environmental conditions and the pressure on companies to reduce maintenance costs, and you have a perfect mix for repeated breakdowns. While breakdowns occur in any industry, the mismatch between the expected lifespan of oil and gas systems and the increasingly rapid pace of innovation in automation technologies means that obsolescence is becoming a huge challenge.
Advances in automation technology push original equipment manufacturers (OEMs) to discontinue some of their components to make room for newer models, even if the previous version is still in use. Thus, when a part fails, oil and gas manufacturers face two choices: to source a spare or commission an entirely new system. However, obsolete doesn’t mean useless or outdated – it’s all in the classifi cation. If the parts still perform well and are compliant to the latest safety and environmental regulations, there is no reason to invest in
40 December/January 2022 | Automation
a systems overhaul. Sourcing like-for-like obsolete spares is not only cheaper, but ensures seamless integration with the existing equipment, and can eliminate risks associated with system changes. Sourcing obsolete components also means that employees do not need to learn about a new part or its implementation. Additionally, in heavily-regulated sectors such as oil and gas, a lot of paperwork and red tape are required for any component upgrade. Since redesigning and requalifying processes can cost companies time and money, sourcing a like-for-like obsolete spare part is by far the easiest and most convenient option.
Planning ahead
Once they understand the advantages of buying obsolete but also the risks associated with ageing assets, oil and gas companies should plan ahead and rely on a solid obsolescence management plan. This involves knowing the state of equipment, helped by a comprehensive system audit. Then, there’s risk analysis: plant managers can evaluate the critical assets and their timely replacement. The next phase involves fi nding a
reliable supplier who specialises in obsolete components and, ideally, one with a proven record of serving customers in the oil and gas industry. At this stage, it’s important to rely on suppliers that have a diverse and agile supply
chain, which doesn’t over-rely on a specifi c location or provider. Since obsolete parts can be scarce, it’s also crucial that suppliers are able to source them worldwide, regardless of their location. That’s why a supplier with a global headquarters, a worldwide network of providers and, ideally, native speakers to help negotiate prices, is the best bet. Lastly, all data collected during the equipment audit should be recorded and stored safely. This information is invaluable, and collating it into an easily-understandable format could save precious time in instances of breakage. This doesn’t necessarily mean investing in an elaborate database. Instead, a clear spreadsheet, detailing the conditions of critical parts, the likelihood of them breaking down and contact information for suppliers that have the parts in stock, can be enough. This data should be reviewed regularly, and then updated if necessary. By incorporating obsolescence
management into their maintenance plans, oil and gas companies can minimise the impact of breakdowns, eliminate last-minute repair costs and keep assets operational for as long as possible.
CONTACT:
EU Automation
www.euautomation.com
automationmagazine.co.uk
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