The future of Australian oil and gas: ensuring integrity in ageing assets

13 Dec, 2023

Australia’s oil and gas industry has seen remarkable growth in recent decades. However, the continued decline of Australian petroleum production coincides with a lack of exploration and development offshore of Australia in recent years.

As the sector matures, the focus is increasingly shifting towards the preservation and upkeep of ageing assets. The inspection and integrity of these assets have become crucial, as the consequences of
failure can be devastating. This article delves into the importance of maintaining integrity in ageing oil and gas assets, identifies high-risk areas, and discusses the challenges that the industry faces in the midst of a declining market and budget constraints.

THE IMPORTANCE OF ASSET INTEGRITY
Ensuring the integrity of ageing oil and gas assets is paramount for several reasons:

Safety: The safety of workers, the environment, and the public is of utmost concern. Failure in ageing assets can lead to
catastrophic accidents and environmental disasters.
Efficiency: Well-maintained assets are more efficient and productive. Downtime for repairs and maintenance can be costly and reduce profitability.
Regulatory Compliance: Adherence to stringent regulatory standards is vital. Failure to maintain asset integrity can result in penalties and legal consequences.
Reputation: Protecting a company’s reputation is essential. A failure in asset integrity can lead to a tarnished image and loss of investor confidence.

HIGH-RISK AREAS FOR ASSET FAILURE
Ageing assets are prone to failure in several areas, including:

Corrosion: Over time, the corrosive effects of oil and gas can weaken equipment and pipelines, leading to leaks and ruptures.
Wear and Tear: Mechanical components, such as pumps and compressors can wear out, causing them to break down unexpectedly.
Structural Integrity: Aging infrastructure may experience structural weaknesses, increasing the risk of catastrophic failures.
Instrumentation: Control systems and instrumentation can become outdated, resulting in operational inefficiencies and safety concerns.

CHALLENGES IN A DECLINING MARKET
The oil and gas industry faces a multitude of challenges in the context of a declining market, including:

Budget Restraints: Tight budgets make it challenging to allocate resources for asset integrity maintenance, leading to deferred maintenance and increased risks.
Market Sentiment: In a declining market, many companies are tempted to cut costs to maintain profitability. This can result in compromising safety and asset integrity.
Aging Workforce: An ageing workforce with specialised knowledge is retiring, leaving a skills gap that can impact asset maintenance.
Technological Advancements: Rapid technological advancements may make older assets obsolete, requiring costly upgrades

THE ROLE OF APPLUS+
Applus+ has emerged as a trusted partner for the oil and gas industry in Australia, specialising in ensuring the integrity of high risk ageing assets. With a focus on safety, efficiency, and regulatory
compliance, Applus+ offers a range of services, including:

Advanced Inspection Techniques: Using cutting-edge technologies, Applus+ conducts thorough inspections of ageing assets to identify potential issues before they become critical.
Predictive Maintenance: By leveraging data analytics and predictive maintenance strategies through digital twin and non-intrusive inspections, Applus+ helps operators proactively address potential problems, minimising downtime.
Compliance Expertise: With a deep understanding of industry regulations, Applus+ ensures that assets meet the highest standards of safety and environmental responsibility
.Cost-Efficiency: Applus+ works closely with business partners to develop cost-effective solutions that align with budget constraints without compromising integrity.

As the Australian oil and gas industry navigates the challenges of a declining market, the focus on the inspection and integrity of ageing assets becomes increasingly critical. Failure to address these concerns can result in catastrophic consequences for safety, the environment, and a company’s reputation. Applus+, with its commitment to integrity and safety, is well-positioned to assist operators in safeguarding their high-risk assets, ensuring the sustainable future of Australia’s oil and gas sector.