Page 309 - Pipelines and Risers

282 Chapter 16

Category Recovery Period Operational Phase Installation Phase probability
probability per year per operation
I 1 I ClYeU I c 1 x lo-* I c 1 x 10.~ I
I 2 I ~ 3 ~ - I <2.5X1U3 I c 2.5 x 10"' I
I 3 I <loyears 1 1 10'3 1 < 1 x 10"' I
I 4 I >1OYW I ~5x10"' I c 5 x 10.~ I
Causes of Loss of Containment incidents considered during the operational phase are:

0 External Impact (Sinking Vessels, Dropped Objects, Trawl Impact)
0 Corrosion (External and Internal)
0 Material Defect

16.2.5 Financial Risks
All incidents considered as initiating in the assessment of individual and societal risks are
considered to be initiating for the purposes of determining the Risks of Material Loss.

In addition any incidents occurring during construction and installation and having the
potential to result in damage to andor delay in the construction of the pipeline are considered
to be initiating with respect to Risks of Material Loss.

The costs of incidents have been considered as being made up from:

0 notional cost of fatalities;
0 cost of repair;
0 cost of deferred production.

The expected (average) number of loss of containment incidents and associated fatalities have
been used to derive an expected annual cost incorporating each of the quantities given above.

The acceptability of risks of material loss will be determined using cost benefit analysis. Risk
reduction measures should be implemented if cost benefit analysis shows a net benefit over
the full life cycle.

To summarize, the acceptance criteria shall be based upon a cost benefit evaluation, where the
expected benefits must be much greater than the costs of implementing and operating with the
risk reducing measure, i.e.:
Cmm~ + COP CRED (16.1)
where: