Cost benefit analysis of applying PHM for Subsea Applications

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Published Jun 30, 2018
Xiaojing gao

Abstract

The decrease in oil price has been a hot topic over recent years and has directly affected oil companies and original equipment manufacturers (OEMs) of systems used for oil production (subsea assets in particular). Numerous technologies, methodologies, processes and tools are being developed to support lifecycle cost reductions for subsea assets and to maximize the overall profits for the industry.  Prognostic and Health Management (PHM) is a technology that can assess and predict the remaining useful life (RUL) of a system, enabling operations and maintenance strategies to be better planned. One goal of PHM is to lower the cost for a system during the operational period by reducing the downtime cost and risk of unanticipated failures. Traditionally, failure was accepted in this industry sector through the incorporation of functional safety features of critical components. Unfortunately, a fail-safe strategy has significant downtime costs associated with it. However, introduction of new technology (e.g. PHM) requires a business case to demonstrate the potential benefits. At present there is a lack of literature on the topic of PHM cost-benefit-risk analysis for subsea production systems. This paper will provide a background of lifecycle cost and the potential cost savings PHM can deliver in the subsea application will be provided. The paper will also expand on four categories of factors contributing to the cost benefit analysis as well as a case study to illustrate the potential cost savings and the side-effects from PHM integration on subsea equipment.

How to Cite

gao, X. (2018). Cost benefit analysis of applying PHM for Subsea Applications. PHM Society European Conference, 4(1). https://doi.org/10.36001/phme.2018.v4i1.407
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Keywords

Subsea Application;, Prognostic and Health Management ; Cost, Cost benefit analysis ;, Lifecycle Cost;

Section
Technical Papers