TWO PRESENTATIONSCOMBINED: RISK ASSESSMENT AND ECONOMIC ISSUES: 1' WHEN PAINTING BALLAST TANKS 2' WH

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TWO PRESENTATIONS-COMBINED RISK ASSESSMENT AND
ECONOMIC ISSUES1. WHEN PAINTING BALLAST
TANKS 2. WHEN PAINTING OFFSHORE STRUCTURES

• KENNETH B. TATOR, PE
• KTA-TATOR, INC
• 115 TECHNOLOGY DRIVE
• PITTSBURGH, PA. 15275
• WWW.KTA.COM

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RISK ASSESSMENT AND ECONOMIC ISSUESWHEN PAINTING
BALLAST TANKS

• KENNETH B. TATOR, PE
• KTA-TATOR, INC
• 115 TECHNOLOGY DRIVE
• PITTSBURGH, PA. 15275
• ktator_at_kta.com
• www.kta.com

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Newly coated and inspected ballast tank
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RISK ASSESSMENT AND ECONOMIC ISSUESWHEN PAINTING
BALLAST TANKS

• THIS PRESENTATION WILL BRIEFLY COVER
• The annual cost of corrosion to the U. S. marine
  shipping industry
• A discussion of changes inherent with double
  bottom ballast tanks
• Some of the stresses and weak areas within
  ballast tanks for coatings
• Some causes of coating failures
• A discussion of Coating Condition Assessment
  requirements
• Risk assessment methodology
• Means to extend coating life
• Costs of coating

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ANNUAL COST OF U.S. SHIPPING INDUSTRY CORROSION

• TOTAL ANNUAL CORROSION COST IS ESTIMATED AT 2.7
  BILLION
• NEW CONSTRUCTION- 41.12 BILLION
• MAINTENANCE REPAIRS- 810 MILLION
• CORROSION RELATED DOWN TIME- 785 MILLION
• COST OF CORROSION Appendix O
• FHWA-RD-01-156 2001

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TANKERS AND CARRIERS

• THERE ARE 9321 TANKERS AND CARRIERS (OIL,
  CHEMICAL, LNG, ORE) IN SERVICE, WHICH CONSIST OF
  10.8 OF THE WORLDS SHIPS AND 34.8 OF THE WORLDS
  TONNAGE.
• A TYPICAL 250,000 DWT DOUBLE HULL TANKER HAS OVER
  200,000 M2 OF BALLAST AREA.
• TOTAL BALLAST FOR ALL TANKS AND CARRIERS EXCEED
  135 BILLION M2.
• COST OF CORROSION Appendix O
• FHWA-RD-01-156 2001

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EXXON VALDEZ CHANGES

• THE EXXON VALDEZ SPILLED 11 MILLION GALLONS OF
  CRUDE OIL, MARCH 24, 1989 .
• CONGRESS PASSED THE OIL POLLUTION ACT IN 1990.
• THIS ACT, AMONG OTHER THINGS, REQUIRED ALL NEW
  TANKERS OPERATING IN THE U.S. TO HAVE A DOUBLE
  HULL.

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DOUBLE HULLS

• INSULATE CARGO TANKS FROM DAMAGE
• ARE USED AS WATER BALLAST TANKS
• INSULATE CARGO TANKS FROM SEA WATER COOLING
• ARE CONSTRUCTED FROM HIGH-TENSILE STRENGTH STEEL
• THINNER PLATES
• MORE FLEXING

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CAUSES OF COATING FAILURES

• DEFICIENT SURFACE PREPARATION AND
  DEFICIENT/EXCESSIVE COATING THICKNESS ARE MAJOR
  CAUSES OF COATING FAILURES-but are readily
  corrected with inspection.

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Ballast tank-thin paint breaking down
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Poor weld coated over
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Runs Sags
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CAUSES OF COATING FAILURES contd

• WHEN THE COATING IS PROPERLY APPLIED, COATING
  FAILURES ARE DUE TO
• Shrinkage of coating due to curing/cross-linking
• After shrinkage due to migration/loss of
  plasticizer
• Stress/chemical degradation (oxidation, water
  uptake, aging, chemical attack)
• Increased flexing
• Mechanical damage/impact
• Entrapped solvent blistering

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Critical corrosion areas
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AREAS OF HIGH STRESS CONCENTRATION
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Low temperature cure coating-stress cracking at
welds
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Blisters from poor ventilation, solvent
entrappment
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SURVEYS AND CERTIFICATION INSPECTIONS

• International Association of Classification
  Societies (IACS)
• REQUIREMENTS CONCERNING SURVEYS AND
  CERTIFICATIONS
• SCOPE- to ensure a ship is fit for its intended
  purpose for the next 5 year period, subject to
  proper maintenance and operation.

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COATING CONDITION ASSESSMENT

• THREE COATING CONDITION CATEGORIES
• GOOD - only minor spot rusting general coating
  breakdown lt3 edge weld breakdown lt20.
• FAIR - local breakdown at edges of stiffeners
  and weld connections, light rusting over 20 or
  more of areas under consideration, but less than
  that defined for POOR condition.
• POOR - breakdown of coating at 20 or more of
  areas or hard scale at 10 or more of areas under
  consideration.

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IACS COATING CONDITIONS
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DNV COATING CONDITIONS
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TANKER STRUCTURE CO-OPERATIVE FORUMTSCF COATING
CONDITIONS
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Lloyd's-poor
Lloyd's-good
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Ballast tank-10 years old, good condition
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Old ballast tank in good condition
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Ballast tank-10 years old, failure starting at
welds
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Old ballast tank in poor condition
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COATING CONDITION ASSESSMENT contd

• FOR SALT WATER BALLAST DOUBLE BOTTOMS IN FAIR
  or POOR CONDITION
• MAINTENANCE OF CLASS MAY BE SUBJECT TO SPACES IN
  QUESTION BEING INSPECTED ANNUALLY.
• EXTENSIVE THICKNESS MEASUREMENTS OF STEEL MAY BE
  REQUIRED.
• COSTS TO AN OWNER ARE CONSIDERABLE.

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Surveyor incorrectly assessed this tank as fair
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Surveyor incorrectly assessed this tank as fair
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Surveyor incorrectly assessed this tank as fair
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RISK MANAGEMENT

• RISK MANAGEMENT-identification of hazards and a
  prioritization of risk.
• HAZARD -the potential to cause harm or damage
• RISK -likelihood of the hazard happening and the
  consequence of that happening.

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RISK BASED INDEX MATRIX
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RISK MANAGEMENT contd

• RISK MANAGEMENT METHODOLOGIES ARE A SUB-SET OF A
  CORPORATIONS OVERALL POLICY AND PROCEDURES FOR
  MAINTAINING A FACILITY FOR HEALTH AND SAFETY
  ISSUES.

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RISK MANAGEMENT METHODOLOGY

• ESTABLISH A CORPORATE POLICY -upper management
  must authorize and buy-into.
• CONVENE APPROPRIATE STAFF -knowledgeable,
  concerned, involved, have time.
• PLAN SET STANDARDS -systematic strategy to
  accomplish policy (step 1). Set acceptance
  standards and determine how to measure
  performance against the standards.
• MEASURE PERFORMANCE -inspection, surveillance,
  observations (time consuming, requires
  documentation).
• ACTIVE MONITORING -on-going basis
• REACTIVE MONITORING after-failure post-mortem
• AUDIT/REVIEW -change process as required for
  better effectiveness.

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RISK BASED INSPECTION

• AMERICAN BUREAU OF SHIPPING (ABS) GUIDE FOR
  SURVEYS USING RISK-BASED INSPECTION FOR THE
  OFFSHORE INDUSTRY
• RISK BASED INSPECTION AN EXCELLENT MEANS TO
  EVALUATE THE CONSEQUENCES AND LIKLIHOOD OF
  COMPONENT FAILURE FROM SPECIFIC DEGRADATION
  MECHANISMS, AND TO DEVELOP INSPECTION APPROACHES
  THAT WILL EFFECTIVELY REDUCE THE ASSOCIATED RISK
  OF FAILURE.

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RISK BASED INSPECTION-contd

• ABS GUIDE FOR SURVEYS USING RISK-BASED
  INSPECTION FOR THE OFFSHORE INDUSTRY
• Appendix 4 Contribution of Inspection Plan
  Elements defines 6 elements of an inspection
  plan
• COMPONENT IDENTIFICATION -an itemization of
  critical items that would endanger health, safety
  and operation should they fail.
• INSPECTION METHODS -means and equipment to
  properly inspect.
• SCOPE -inspection location, extent of inspection,
  sampling rate.
• INSPECTION DATA DOCUMENTATION -record of
  inspection results.
• FREQUENCY OF INSPECTION -how often
• UPDATE OF INSPECTION PLAN -revise and improve

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MEANS TO EXTEND COATING LIFE

• NEW CONSTRUCTION-best time to properly paint.
  Present systems not suitable, longer lasting
  systems needed.
• EDGE RETENTIVE COATINGS-for new construction and
  maintenance, to build up areas prone to thin
  film failure.
• BETTER PAINT SYSTEMS-designed for 10, 15 and 25
  year service (TSCF).
• OTHER CORROSION PROTECTION SYSTEMS
• Thermal spray aluminum/zinc
• 100 solids high build (polyurea, polyurethane,
  hybrids, elastomerics)
• Epoxy novolacs, cresols
• Powder coatings
• Polyfluorinated sheet wallpaper laminates
• Metal alloy wallpapering

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COSTS OF COATING

• COST TO REPLACE STEEL IS FROM 4-14X COST OF
  COATING DURING CONSTRUCTION.
• ANNUAL REPAIR/DOWNTIME CORROSION COSTS
• OIL TANKERS 340,000
• CHEMICAL TANKERS 440,000
• DRY BLUK CARRIERS 106,000
• CARGO ROLL/ON-OFF 123,000
• COST OF CORROSION Appendix O
• FHWA-RD-01-156 2001

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COSTS OF COATING-contd

• COST OF COATING A DOUBLE SKIN VL CRUDE OIL
  CARRIER (2 MILLION BARRELS) WITH 250,000 M2
  BALLAST TANK SURFACE AREA
• 250 DAYS
• 20 MILLION
• Eliasson and Mills

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COSTS OF COATING-contd

• HIGH SOLIDS EPOXY PAINT WITH 20 YEAR SERVICE
  LIFE
• 6.25 FT2 (62-69 M2)
• Webb, Brinkerhoff, Rice, Bizol
• FOR VLCC (250,000 M2 ballast area)- 17.25
  MILLION

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RISK ASSESSMENT AND ECONOMIC CONSIDERATIONS WHEN
COATING OFFSHORE STRUCTURES

• KENNETH B. TATOR, PE
• KTA-TATOR, INC
• 115 TECHNOLOGY DRIVE
• PITTSBURGH, PA. 15275
• ktator_at_kta.com
• www.kta.com

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OVERVIEW

• THIS PAPER WILL BRIEFLY REVIEW
• THE ANNUAL COST OF CORROSION IN THE U.S. OIL
  GAS INDUSTRY
• A CATEGORIZATION OF CORROSION LOCALES ON OFFSHORE
  PLATFORMS
• COATING SYSTEMS USED IN THE SPLASH ZONE AND FOR
  ATMOSPHERIC SERVICE
• COATINGS FOR PASSIVE FIREPROOFING
• CAUSES OF COATING FAILURES
• RISK and RISK ASSESSMENT METHODOLOGY
• COSTS OF COATING OFFSHORE FACILITIES

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ANNUAL COST OF CORROSION IN THE U.S. OIL AND GAS
INDUSTRY

• THE ANNUAL COST OF CORROSION IN THE U. S. OIL
  GAS INDUSTRY
• TOTAL COST 1.372 BILLION
• SURFACE PIPELINE FACILITY COST 589 MILLION
• DOWNHOLE TUBINING EXPENSE 463 MILLION
• CORROSION CAPITAL EXPENDITURES 320 MILLION
• COSTS OFFSHORE CAN BE 10X COSTS ONSHORE
• Cost of Corrosion Appendix S Oil and Gas
  Exploration and Production FHWA-RD-O1-156 2001

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CORROSION OF OFFSHORE PLATFORMS

• CLASSIFIED INTO 4 GENERAL CATEGORIES
• INTERIOR CORROSION -within process and production
  equipment, piping, tanks. Use alloys, plastics,
  inhibitors, coatings.
• IMMERSION CORROSION -controlled by coatings and
  cathodic protection.
• SPLASH ZONE CORROSION -most corrosive offshore
  environment due to wetting/drying, marine
  fouling, repair difficulty.
• ATMOSPHERIC CORROSION -above splash zone
  exposure to weather, salt spray, operating
  chemicals.

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COATING SYSTEMS FOR SPLASH ZONE

• ORIGINALLY
• COAL-TAR EPOXY-3 coats, 12 to 16 mils ( 375-450
  µm).
• EPOXY POLYAMIDE PRIMER (5-7 mils 125-175 µm)
• TOPCOATED WITH GLASS FLAKE EPOXY (16-20 mils
  400-500 µm).

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COATING SYSTEMS FOR SPLASH ZONE-contd

• PRESENTLY
• SURFACE TOLERANT EPOXIES-12 to 16 mils 300-400
  µm.
• GLASS FLAKE POLYESTERS-2 coats _at_ 30 mils (750
  µm).
• GLASS FLAKE EPOXIES-2 coats _at_ 20 mils (500 µm).
• EPOXY CERAMIC-3 coats _at_ 5 mils (125 µm).
• ULTRA HIGH BUILD EPOXIES-80-120 mils 2000-3000
  µm.
• THERMAL SPRAY METTALICS-
• Long life-20 years
• Expensive

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COATING SYSTEMS FOR SPLASH ZONE-contd

• RISER PROTECTION IN SPLASH ZONE-Higher
  temperatures in the riser due to reservoir
  conditions- accelerated corrosion.
• NORTH SEA
• NEW RISERS-EPDM RUBBER MONEL SHEETS (1200 mils,
  5 mm).
• OLD RISERS-HIGH BUILD EPOXY (40 mils, 1 mm)
  PETROLATEUM TAPE (60 mils, 1.5 mm) HDPE JACKET
  (80 mils, 2 mm) EXPANDED POLYETHYLENE MESH-
  secured with plastic strapping.

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COATING SYSTEMS FOR ATMOSPHERIC SERVICE

• A NUMBER OF COATING SYSTEMS ARE USED, BUT
  COMMONLY
• ZINC RICH SILICATE, OR ZINC RICH EPOXY PRIMER
  EPOXY INTERMEDIATE (with or without glassflake)
  TOPCOATED WITH AN ACRYLIC- OR POLYESTER-
  POLYURETHANE TOPCOAT.
• THERMAL SPRAY METALLIC-zinc, aluminum,
  zinc-aluminum, aluminum-magnesium), sealed with
  epoxy/polyurethane.

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COATING SYSTEMS FOR ATMOSPHERIC SERVICE-contd

• HOT DIPPED GALVANIZED STEEL-
• ECONOMICAL FOR ITEMS WITH A HIGH SURFACE
  AREAWEIGHT RATIO SUCH AS SMALL DIAMETER PIPING,
  STAIR TREADS, GRID DECKING, ETC.
• GALVANIZERS CHARGE BY WEIGHT AND NOT SURFACE
  AREA. GALVANIZING IS NOT ECONOMICAL FOR HEAVY
  STEEL WITH LOW SURFACE AREA.
• LIFE EXPECTANCY APPROXIMATELY 20 YEARS.
• TIME TO FIRST RUST IS NOT END OF SERVICE LIFE
  BECAUSE ZINC-STEEL ALLOY WILL INITIALLY CORRODE
  LIGHT BROWN. A DARKER BROWN COLOR INDICATES
  STEEL PITTING.

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COATINGS FOR PASSIVE FIREPROOFING

• PIPER ALPHA EXPLOSION AND FIRE ON JULY 6, 1988
  KILLED 167 MEN. THE MAIN LOSS OF LIFE WAS DUE TO
  SMOKE AND CO2 ENTERING THE ACCOMODATION MODULE
  WHERE MEN GATHERED FOR HELICOPTER EVACUATION.
• NEED FOR INSULATION AND FIREPROOFING FOR
  EVACUATION ROUTES AND PERSONNEL SPACES.
• PASSIVE FIREPROOFING-INSULATING SYSTEMS TO DETER
  HEAT TRANSFER FROM A FIRE TO THE STRUCTURE.
• USED IN CONJUNCTION WITH ACTIVE SYSTEMS SUCH AS
  WATER SPRAYS, DELUGES, FOAM, INERT GAS
  SUPPRESSION.
• USUALLY MINERAL AND/OR ORGANIC COATINGS

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CLASSES OF FIREPROOFING MATERIALS

• CEMENTICIOUS-concrete, gunite, vermiculite
  lightweight concrete, gypsum calcium silicate.
  Heat of fire evaporates water in coating. The
  water turns to steam, absorbing heat and
  repelling fire, keeping substrate temperature at
  approximately 212 0F, 100 0C.
• FIBEROUS BOARDS/BLANKETS-
• MINERAL WOOL- rated to 850 0C, 1560 0F
• CERAMIC FIBER- rated to 1150 0C, 2100 0F

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CLASSES OF FIREPROOFING MATERIALS-contd

• 3. COMPOSITE PANELS -metal cladding over
  cementicious board or fiber board/blanket.
• 4. INTUMESCENT COATINGS -usually epoxy coatings
  applied as thick mastics. In a fire, the coating
  melts and endothermic blowing agents release
  gas, expanding the coating into a foam 8X thicker
  than the original coating. The foam char layer
  absorbs heat and insulates the substrate. 3/8
  coating produces a 2 hour fire rating.
• The intumescent is applied onto a wire, glass or
  carbon mesh over an epoxy primer using heated
  plural component spray equipment.

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CAUSES OF COATING FAILURES

• DEFICIENT SURFACE PREPARATION AND
  DEFICIENT/EXCESSIVE COATING THICKNESS ARE MAJOR
  CAUSES OF COATING FAILURES-but are readily
  corrected with inspection.

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CAUSES OF COATING FAILURES contd

• WHEN THE COATING IS PROPERLY APPLIED, COATING
  FAILURES ARE DUE TO
• Shrinkage of coating due to curing/cross-linking
• After shrinkage due to migration/loss of
  plasticizer
• Stress/chemical degradation (oxidation, water
  uptake, aging, chemical attack)
• Increased flexing
• Mechanical damage/impact
• Entrapped solvent blistering

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MEANS TO EXTEND COATING LIFE

• NEW CONSTRUCTION-best time to properly paint.
  Present systems not suitable, longer lasting
  systems needed.
• EDGE RETENTIVE COATINGS-for new construction and
  maintenance, to build up areas prone to thin
  film failure.
• BETTER PAINT SYSTEMS-designed for 10, 15 and 25
  year service (TSCF).
• OTHER CORROSION PROTECTION SYSTEMS
• Thermal spray aluminum/zinc
• 100 solids high build (polyurea, polyurethane,
  hybrids, elastomerics)
• Epoxy novolacs, cresols
• Powder coatings
• Polyfluorinated sheet wallpaper laminates
• Metal alloy wallpapers

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COSTS OF COATING OFFSHORE FACILITIES

• GRIEG-The cost of procurement and application of
  all coatings, including passive fireproofing is
  1.5 to 3 of the total cost of construction of a
  platform topside.
• CAVASSI, CORNADO and MALFANTI-Coating cost is
  approximately 8 of the total cost of total
  corrosion control costs for platform (jackets and
  decks).
• Coating costs are 4.7 for sealines 4 for well
  tubing.
• High capital costs for corrosion resistant alloys
  and high quality coating systems are more
  economical over the life of the platform.

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COSTS OF COATING OFFSHORE FACILITIES-contd

• RUSCHAU AND AL-NEZI
• Estimate the cost of corrosion for offshore oil
  facilities as 0.40 per barrel produced compared
  to 0.20 for an onshore facility.
• The cost of offshore painting is up to 10 times
  the cost of performing the same activities
  onshore.

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SUMMARY

• IN ORDER TO SUCCESSFULLY COAT IN THE FUTURE
• COATING MANUFACTURERS -must develop new longer
  performing coating systems.
• FABRICATION YARDS AND REPAIR FACILITIES -must
  take time to properly apply coatings in a
  high-quality fashion.
• CLASSIFICATION SOCIETIES -must develop better
  coating inspection standards, and train surveyors
  to assess coating condition.
• OWNERS -must pay for up-front quality, and
  conduct timely maintenance of coatings. Coatings
  must be factored into any risk assessment
  methodology.
• GOVERNMENT Consider revising tax law to
  encourage credits for corrosion control.
  Currently, capital costs (new construction)
  related to corrosion control must be amortized
  over structure life, while costs for maintenance
  and repair can be expensed. This is a
  dis-incentive for spending monies up-front to
  reduce corrosion.

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www.kta.com
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www.kta.com