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4 HYDROCARBON ASIA, JULY-SEPT 2012 Visit our website at: http://www.safan.com Publisher/Executive Editor Eddie Raj Group Editor Vishnu Pillai Tel: 6222 3422 ext: 104 email: [email protected] Advertising Co-ordinator Salbiah Hj Ramli Tel: 6222 3422 ext: 106 email: [email protected] Subscription/Cirulation Salbiah Hj Ramli Tel: 6222 3422 ext: 106 email: [email protected] Conference Co-ordinator Zaman Tel: 6222 3422 ext: 112 email: [email protected] Graphic Artist Chua Ai Hwa Tel: 6222 3422 ext: 103 email: [email protected] TECHNICAL CONSULTANTS HARRY VAN DIJK Business Development Manager Shell Global Solutions - Singapore EDITORIAL ADVISORY BOARD DR. FEREIDUN FESHARAKI President FACT Inc. ENRICO SISMONDO Managing Director - Singapore MUSE Stancil TAN CHEE HONG Regional Manager Customer Sales Universal Oil Products Asia Pacific Pte Ltd PAUL KENNEDY Vice President Operations KBC Advanced Technology Pte Ltd DAVID TURNER Vice President Business Development KBC Advanced Technology Pte Ltd TONY ANDERSON Senior Consultant D. P. MISRA President Indian Institute of Chemical Engineers & Member Board of Governors of Engineering Council of India DAVID ONG Managing Director Excel Marco Industrial Systems Pte Ltd CORRESPONDENTS Australia/PNG Brian Wickins Dhaka, Bangladesh Ghazi Mahmud lqbal Beijing, China Li Peizhong Wang Yong Delhi, India Siddharth Raghavan New Zealand Warner Saville Pakistan Dr Salman Saif Ghouri Editorial Desk HA Reliability, Availability, Maintenance and Safety – Independent or Interdependent? T wo issues have been resonating around plants the last two years; bottomline and safety. Slightly less in the forefront has been reliability and maintenance. Ever since the 2008 financial crisis refineries have faced re- duced margins and have thus been facing an uphill battle to maintain profits as the upstream sector has rebounded much bet- ter than the downstream sector so feedstock, though not as expensive as the pre-crisis days, is still pretty expensive. The recent spate of accidents, both in the upstream and downstream, have made safety a critical issue. This leads to the question of whether the pursuit of bigger margins has to be at the expense of safety protocol and measures. Some of the per- sonnel on the ground feel that adhering to safety protocol leads to a loss of produc- tive time. There is may also be some feeling at the top that expenditure on safety systems and procedures will eat into the margins of refineries. Following that school of thought it would appear that safety and bottomline move in opposite directions. However, I must disa- gree; thankfully so do many of the refinery operators. Any savings made on produc- tion time and expenditure on safety sys- tems over the course of a decade will be wiped out by a single large-scale accident; and that is without taking into account injuries and loss of lives, which would impossible to translate into dollars and cents. Contrary to simplistic views, focus- ing on safety and adhering to safe protocol saves money in the long run. What then about reliability? Is it linked to safety? I think so. Reliable equipment and systems contribute to smooth opera- tions as well as well as helping to avoid critical failures. Think Macondo, where a system failure contributed greatly to a cata- strophic accident. Looking at it from that perspective it is apparent that that safety and reliability are intrinsically linked. Which brings us to maintenance. Proper maintenance, especially predictive main- tenance, will ensure that equipment and systems are in top condition. As the saying goes, a nail in time saves nine. According proper attention to a comprehensive maintenance program will result in long- term cost savings and increased reliabil- ity, thus aiding in improving safety. Availability, the last component of RAMS, might seem to be not as clearly aligned with the other three components but is in fact the link between the three and also the link with improving margins. Availability, simply put, means a lack of downtime. Increased availability is a re- sult of proper maintenance and in turn helps raise the reliability bar. Increased availability also means increased pro- ductive time, which enables proper safety protocol to be followed without the loss of productive time. No doubt, my explaination of the links between the components of RAMS is ex- tremely simplistic, but I’ve done that in an effort for brevity. It is meant more to en- courage thought on the concept rather than convince one of the concepts. RAMS Asia is a conference and exhibi- tion which Hydrocarbon Asia has been organizing for nearly a decade to promote this concept and I am proud to say that we must be contributing to the industry as we have been receiving kudos for our promotion of the RAMS concept, and a look at the conference program, which you will find inside, will prove that the concept has been widely received by the industry. The presenter list, which reads like a who’s who of the regional down- stream sector, validates our efforts in pro- moting these tenets in the oil and gas industry. I hope that you will continue to support and benefit from our efforts. Vishnu Pillai Group Editor

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Page 1: E04

4 HYDROCARBON ASIA, JULY-SEPT 2012 Visit our website at: http://www.safan.com

Publisher/Executive EditorEddie Raj

Group EditorVishnu PillaiTel: 6222 3422 ext: 104email: [email protected]

Advertising Co-ordinatorSalbiah Hj RamliTel: 6222 3422 ext: 106 email: [email protected]

Subscription/CirulationSalbiah Hj RamliTel: 6222 3422 ext: 106 email: [email protected]

Conference Co-ordinatorZamanTel: 6222 3422 ext: 112email: [email protected]

Graphic ArtistChua Ai HwaTel: 6222 3422 ext: 103email: [email protected]

TECHNICAL CONSULTANTS

HARRY VAN DIJKBusiness Development ManagerShell Global Solutions - Singapore

EDITORIAL ADVISORY BOARD

DR. FEREIDUN FESHARAKIPresidentFACT Inc.

ENRICO SISMONDOManaging Director - SingaporeMUSE Stancil

TAN CHEE HONGRegional ManagerCustomer SalesUniversal Oil ProductsAsia Pacific Pte Ltd

PAUL KENNEDYVice PresidentOperationsKBC Advanced Technology Pte Ltd

DAVID TURNERVice PresidentBusiness DevelopmentKBC Advanced Technology Pte Ltd

TONY ANDERSONSenior Consultant

D. P. MISRAPresidentIndian Institute of Chemical Engineers & MemberBoard of Governors of Engineering Council of India

DAVID ONGManaging DirectorExcel Marco Industrial Systems Pte Ltd

CORRESPONDENTS

Australia/PNGBrian Wickins

Dhaka, BangladeshGhazi Mahmud lqbal

Beijing, ChinaLi Peizhong

Wang Yong

Delhi, IndiaSiddharth Raghavan

New ZealandWarner Saville

PakistanDr Salman Saif Ghouri

Editorial Desk

HA

Reliability, Availability,Maintenance and Safety –Independent or Interdependent?

T wo issues have been resonatingaround plants the last two years;bottomline and safety. Slightly lessin the forefront has been reliability

and maintenance. Ever since the 2008financial crisis refineries have faced re-duced margins and have thus been facingan uphill battle to maintain profits as theupstream sector has rebounded much bet-ter than the downstream sector sofeedstock, though not as expensive as thepre-crisis days, is still pretty expensive.

The recent spate of accidents, both inthe upstream and downstream, have madesafety a critical issue. This leads to thequestion of whether the pursuit of biggermargins has to be at the expense of safetyprotocol and measures. Some of the per-sonnel on the ground feel that adhering tosafety protocol leads to a loss of produc-tive time. There is may also be somefeeling at the top that expenditure onsafety systems and procedures will eatinto the margins of refineries.

Following that school of thought it wouldappear that safety and bottomline move inopposite directions. However, I must disa-gree; thankfully so do many of the refineryoperators. Any savings made on produc-tion time and expenditure on safety sys-tems over the course of a decade will bewiped out by a single large-scale accident;and that is without taking into accountinjuries and loss of lives, which wouldimpossible to translate into dollars andcents. Contrary to simplistic views, focus-ing on safety and adhering to safe protocolsaves money in the long run.

What then about reliability? Is it linkedto safety? I think so. Reliable equipmentand systems contribute to smooth opera-tions as well as well as helping to avoidcritical failures. Think Macondo, where asystem failure contributed greatly to a cata-strophic accident. Looking at it from thatperspective it is apparent that that safetyand reliability are intrinsically linked.

Which brings us to maintenance. Propermaintenance, especially predictive main-tenance, will ensure that equipment andsystems are in top condition. As the sayinggoes, a nail in time saves nine. Accordingproper attention to a comprehensivemaintenance program will result in long-term cost savings and increased reliabil-ity, thus aiding in improving safety.

Availability, the last component ofRAMS, might seem to be not as clearlyaligned with the other three componentsbut is in fact the link between the threeand also the link with improving margins.Availability, simply put, means a lack ofdowntime. Increased availability is a re-sult of proper maintenance and in turnhelps raise the reliability bar. Increasedavailability also means increased pro-ductive time, which enables proper safetyprotocol to be followed without the lossof productive time.

No doubt, my explaination of the linksbetween the components of RAMS is ex-tremely simplistic, but I’ve done that in aneffort for brevity. It is meant more to en-courage thought on the concept ratherthan convince one of the concepts.

RAMS Asia is a conference and exhibi-tion which Hydrocarbon Asia has beenorganizing for nearly a decade to promotethis concept and I am proud to say thatwe must be contributing to the industry aswe have been receiving kudos for ourpromotion of the RAMS concept, and alook at the conference program, whichyou will find inside, will prove that theconcept has been widely received by theindustry. The presenter list, which readslike a who’s who of the regional down-stream sector, validates our efforts in pro-moting these tenets in the oil and gasindustry. I hope that you will continue tosupport and benefit from our efforts.

Vishnu PillaiGroup Editor