DOC

VERSION: 1

FUNCTION NAME POSITION DATE

Created by ILARIO FALO Asset Integrity Engineer Apr - 2017

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CONTENTS

Changes as Compared to Previous Version............................................................2

CONTENTS.............................................................................................................3

List of Figures.......................................................................................................4

List of Tables.........................................................................................................4

1 Introduction..............................................................................................5
1.1 Purpose.......................................................................................................5
1.2 Applicability.................................................................................................5
1.3 Definitions...................................................................................................5
1.4 Roles & Responsibilities.................................................................................6
1.5 References...................................................................................................6

2 Asset Management (definition and scope)................................................6

2.1 Asset Management compliance and auditing process.........................................9
2.2 Asset management (implementation documents and key elements)..................10
2.3 Asset Integrity Management (scope and basic phases)....................................11
2.4 Asset Register............................................................................................12
2.5 Compliance Register....................................................................................13

3 Asset Compliance Gap-Analysis...............................................................14

3.1 Compliance Register....................................................................................14
3.2 Asset Register – discipline or department responsible......................................14
3.3 Tasks Register – demonstrability check list....................................................15
3.4 Mitigating actions for all identified ‘gaps’........................................................15

4 APPENDICES............................................................................................16
4.1 Example of Compliance Gap analysis – Task Register –Compliance overview......16

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List of Figures
Figure 1: Relation between Asset management and other processes..........................7
Figure 2: AI program for equipment life cycle/phases...............................................9
Figure 3: Processes interaction for compliance and auditing, OT Asset Management...10
Figure 4: Asset Integrity Management elements and processes...............................12

List of Tables
No table of figures entries found.

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1 Introduction
1.1 Purpose

The objective of this document is providing the basic principles that the operational
facilities of Oiltanking shall take into consideration while developing, structuring and
registering all the aspects related to Asset Management. This document is based on the
international standards ISO 55000/1/2. If required, the users of this document can find
more in depth explanation/support about Asset Management in the mentioned ISO
standards.

Throughout this document, the word shall indicates a mandatory requirement, should
indicates a recommendation, while the word may indicates and option.

1.2 Applicability
The implementation of this procedure is mandatory for all levels and departments in the
organization (corporate centre, profit centres and terminals). For facilities with an existing
Asset Management process in place, a gap analysis shall be carried out by a competent
department to verify that the minimum requirements of this document are met and if
applicable complements are required for the existing system.
1.3 Definitions

Asset

An asset is an item, component, equipment or system that has potential - or actual value
to an organization. The value will vary between different organizations and their
stakeholders, and can be tangible or intangible, financial or non-financial. The definition of
asset in this standard is aligned with the definition of tangible asset in “M&B Group
Accounting Guidelines” and the “Oiltanking Capitalization and Depreciation Policy”.
Asset Breakdown Structure (ABS)
An Asset Breakdown Structure can be defined as an ordered hierarchical decomposition of
the total asset of an organization following a logical concept or criteria that provides a
structural view of all the assets. All equipment in a company should be ordered in
accordance with the asset tree following the same philosophy.
Asset Integrity

Asset Integrity is the ability of an asset to perform its required function effectively and
efficiently without provoking any undesirable effects for the organization or third parties.
CMMS
Computerized Maintenance Management System, usually consists of hardware solution and
software package that allows an organization to manage all the activities related to the
maintenance of the assets. Some examples of CMMS’s are: Maximo, Ultimo, SAP, INFOR.

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Critical equipment
Please refer to the document “DOC-00xx Barrier Management” (to be released) for all the
definitions associated to Critical Equipment.

System

Group of units or equipment that as a whole fulfils a functional purpose. A system is

usually associated with a product or media handled by its components.
1.4 Roles & Responsibilities

Profit Center/Terminal Manager/Terminal engineers & technicians.

Ensure that this document is applied for as-built/updates and both greenfield and
brownfield modifications.
Engineers and Managers.
Support the implementation of this document.

1.5 References
 ISO 55000 – Asset Management (Overview, principles and terminology)

 ISO 55001 – Asset Management (Management system requirements)

 ISO 55002 – Asset Management (Guidelines for the application)

 ISO 14224 – Petroleum, petrochemical and natural gas industries -- Collection and
exchange of reliability and maintenance data for equipment.

2 Asset Management (definition and scope)

Asset Management is the process which supports all the facilities of Oiltanking in order to
apply all required rules & regulations (including Oiltanking standards) for the physical
assets.
Asset Management comprises of all the coordinated actions implemented by the company
to warrant safe operations during the asset life cycle while meeting company objectives.
Asset Management strategies involve different levels of the organization (different
disciplines, departments or teams) that share the same objectives and vision to assure
that procedures and standards will be applied according to internal, local and international
regulations.

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Figure 1: Relation between Asset management and other processes

All the operational facilities of Oiltanking shall be compliant to all applicable rules &
regulations with regard to the design, construction, maintenance and decommissioning of
their physical assets. The following actions shall be completely applied with regarding the
assets compliance evaluation:
 Verify the applicability of Oiltanking Standards.

 Verify the applicability of local regulations (governmental rules).

 Verify the applicability of international standards and best engineering practices.

Knowledge of the associated risks of the assets installed in every operational facility is
crucial for the organization and will contribute to implementing control barriers (mitigation
actions), clarifies the scenarios for making critical decisions and establishes the risk levels
acceptance criteria in the company. A solid Asset Management System can contribute with
tangible benefits to the organization and detects improvement opportunities, fulfils gaps
and provides for compliance with legal and corporate requirements. To achieve this, is
necessary to cover all the asset’s life cycle phases. Please find below the minimum details
that shall be checked per phase and per asset:

Design/procurement and fabrication phase:

 Verify the application of the appropriate design code.

 Be compliant with the requirements of the Oiltanking Project Management Handbook.

 Verify the quality of the material used during the fabrication process.

 Apply the required non-destructive & destructive testing, calibrations or tests according
to the applicable codes.
 Verify the qualification/certification of the personnel involved in all phases.

 Verify the compatibility of the asset to be installed with existing systems, interactions,
effects, risk evaluations and preventive measures.
Installation, commissioning and start-up phase:

 Prepare all the necessary procedures to warrant a safe installation process of the assets
(including logistic scopes like lifting, transporting, etc.).
 Before commissioning, carry out risks assessments according Oiltanking’s Risks
Management policy. Develop all the technical information associated to the assets
(P&ID’s, ABS, Risk Assessments, mechanical drawings, cost tracking, etc.).

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 Hand over to the operation units all the technical information associated to the assets
(P&ID’s, ABS, Risk Assessments, mechanical drawings, etc.).
 Carry out a robust commissioning process (all the departments responsible shall be
involved such as: engineering, operations, process and maintenance).
 Carry out the entire preliminary tests before start up.

 Preparation and training for personnel.

 Prepare mitigation plans in case of undesirable effects during the completion phase.

Financial control (during all phases):

 Control and register all the costs associated with the life cycle of the asset (design,
installation, tests, maintenance, etc.). This is achievable when a solid Work Breakdown
Structure and Asset Breakdown Structure are in place.
Operations and logistics:
 Develop all the necessary operational manuals to warrant safe operations. All the roles
and responsibilities shall be clearly defined.

Maintenance and inspection activities:

 All the required maintenance activities shall be carried out as per internal and external
standards.

Integrity plans/assessments:
 All the required maintenance activities shall be carried out as per internal and external
standards.

Regulatory compliance:
 All the applicable regulations shall be adhered to (including internal and external
audits).

Replacement/decommissioning:

 A replacement/decommissioning plan shall be created according to the best applicable

engineering practices and standards.

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Figure 2: AI program for equipment life cycle/phases

2.1 Asset Management compliance and auditing process.

The Asset Management interacts with different processes inside the organization in order
to complete a transparent auditing process and compliance accomplishment. All the
operational facilities shall comply with the requirements of local / international authorities
in order to receive the approval to operate. The maintenance document management
system of each operational facility shall register, track and preserve relevant information
related to compliance for auditing and demonstrability purposes (CMMS can be also used
for these tasks..

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Figure 3: Processes interaction for compliance and auditing, OT Asset Management.

2.2 Asset management (implementation documents and key elements)

Oiltanking operational facilities shall comply with the minimum (but not limited to)
documentation associated to Asset management implementation (this includes applicable
local / international standards not mentioned here):
Engineering

 Oiltanking Building Specifications.

 Oiltanking Engineering Technical Standards.

 Work Breakdown Structure.

 Piping & Instrumentation Diagrams standard.

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Operations
 Oiltanking Operating Manual.

 Management of Change (MoC).

Maintenance:
 Asset Management.

 Maintenance Standard.

 Asset Breakdown Structure.

 FMECA Procedure.

 Maintenance Blue Print (CMMS workflow).

HSSE:
 HSSE Manual.

 OFPS – Oiltanking Fire Protection Standard.

International Standards / Regulations

 API 653 / 510 / 570 / 2610 / RP581.

 ISO 55000 / 55001/ 55002.

 ASME B31.3 / B31.8 / Sec I / II / V / VIII / IX / X, ANSI/ISA-S5.1-1992, IEC 81346-

1:2009, IEC 14764, INS-0032, ISA S5.1.
 NEN-EM-ICE 60812, EEMUA 159, OCIMF, NFPA, CDI-T.

A list of key elements (supported by the documents listed above) that the facilities should
take into consideration for the implementation of the Asset Management System is shown
below:
a. Maintenance Management Plan & Performance Standards.
b. Asset Register.
c. Asset integrity approaches (Risk Assessment Procedures, etc.).
d. Management of Change.
e. Internal basic documentation (P&ID’s, ABS, etc.).
f. Plant inspections and technical audits.
g. Anomaly & Incident reporting and investigations.
h. Corrective actions and tracking/register system.
i. Statistical analysis and trending.
j. Learning from events.

2.3 Asset Integrity Management (scope and basic phases)

Asset Integrity Management is a group of systematic processes applied for an organization
where several departments interact to develop, operate, maintain, upgrade and dispose of
assets/systems cost-effectively while safeguarding the environment, personnel health,

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business continuity and the company’s reputation. This concept shall apply during the
whole lifecycle of the asset/system and it is covered inside the Asset Management policies
of the organization. Facilities in Oiltanking shall develop their own systematic process to be
compliant with this standard, covering the elements and processes shown in figure 4:

Figure 4: Asset Integrity Management elements and processes

2.4 Asset Register

The physical asset register (tangible assets) is the overview of all physical assets which are
installed at the facility. The asset register shall be maintained in an Asset Breakdown
Structure (ABS) in the CMMS (Computerized Maintenance Management System) of the
terminal using the ABS standard of Oiltanking. In this structure parent-child relations
between systems, assets and components can be found. For more information please refer
to the document “Standard Asset Breakdown Structure (ABS) for Oiltanking”.

The minimum requirements applied during asset registering shown below:

a. The asset register should represent a breakdown of the physical assets on the
facility (Asset Breakdown Structure - ABS) at least to the level of individual
maintainable units, following the explanation given in the Oiltanking ABS standard.

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b. The asset register and ABS must be kept as-built/updated (all the assets shall be
incorporated into the ABS).
c. In the ABS inside the CMMS, a clear distinction shall be made between functional
locations (asset tags according documents such as P&ID’s) and physical assets
(physical assets with “serial number” from the manufacturer).
d. Any modification in the facility will trigger the the MoC system and an evaluation to
incorporate the changes in the documents (such as: P&ID’s, one-line diagrams, etc)
and also in the ABS.
e. The functional location-/tag-code must correspond with drawings/documents,
process automation systems and also the tag painted (marked) on the field.
f. Each physical equipment must be identified uniquely.
g. Each physical equipment must be linked to a historical maintenance report register.
h. HSSE critical equipment must be identified.
i. Business critical equipment must be identified.
j. Assets must be classified into several main-asset types for historical analyses
purposes and costs analyses.
k. Per asset the status of the asset must be identified (decommissioned, in-service, in
maintenance / repair, out-of-service, etc.).
l. Per asset a typical set of (main) specifications should be kept up-to-date.
2.5 Compliance Register

One of the first phases in asset management is the Compliance Register in which an
overview is provided of all rules, local and/or international regulations, permit-
requirements and Oiltanking-requirements which are applicable at the terminal.
The compliance register function can be held with the CMMS tool of each terminal. A
compliance register shall be structured in such a way that the relations between laws, their
articles, specific rules, regulations and guidelines are clear, easy to identify and auditable
(for example link between them or a ‘parent-child’ relation). For implementation purposes
it is necessary to specify per task which department or discipline is responsible to
implement necessary measures in order to establish compliance. All the actions to be
executed in order to be compliant shall have a responsible within the department; dates
for the execution (deadlines) shall be established with a prudent period inside the timeline
required by the applicable regulation, rule, code or standard.
The compliance register is typically multidisciplinary and comprises of all compliance-rules.
The registration of the information shall follow the accepted format/criteria approved by
the review authority / organization.

It is important that the responsibility for building and maintaining the Compliance Register
is clearly assigned to one specific department and/or function in the organization. The
information and support related to the demonstration of compliance shall remain in the
system/storage location until the minimum time demanded according to the applicable
code or rule.

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3 Asset Compliance Gap-Analysis

As part of Oiltanking’s Asset Integrity approach, all the facilities shall carry out the
analyses of potential gaps with regard to the compliance-requirements on asset level. In
this chapter the minimum recommended approach for performing a compliance gap-
analysis is further explained.

3.1 Compliance Register

The first step for the gap-analyses is evaluating whether the compliance register is
complete and up-to-date. A typical approach for this activity consists of the following
steps:
 Check whether responsibility for maintaining the compliance register is properly
assigned within the organization;
 Check whether the management of change process with regard to the compliance
register is in place and whether evidence of execution is available (was the system
audited).
 Check whether all applicable laws are present in the register (Oitanking standards,
international, national, regional, local);
 Check the system in place to ensure the facility is made aware of and updated with
changes in laws/regulation.
 Check whether all regulations to which laws refer are present in the register and have a
reference to their ‘parent’;
 Check whether all applicable (latest versions) standards to which laws and (referenced)
regulations refer are present in the register and have a reference to their ‘parent’;
 Check whether all Oiltanking mandatory standards are present in the register;

 Check whether the level of detail of the list is sufficient so individual articles or rules in
laws, regulations and/or standards can be assigned to specific
departments/disciplines/functions within the company.
3.2 Asset Register – discipline or department responsible
The second step is to check per asset, asset-type and/or discipline whether all applicable
rules, regulations, guidelines and (company) standards are mentioned in the compliance
register and referenced to the correct asset(-type) or discipline. Per discipline it should be
established whether the specific obligation is actually applicable to the specific asset (-
type) or discipline within this terminal. The asset register process is based on the ABS of
the terminal that shall be created and maintained according to the Oiltanking ABS
standard.

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3.3 Tasks Register – demonstrability check list.

The third step in the process is to establish per specific obligation in the Compliance
Register:

 Which tasks have been defined in order to comply?

 Have all aspects of the obligation been covered by the specified task(s)?

 Is every task fully specified and is an owner/ action-holder assigned?

 Has a deadline/timeline been assigned for every task?

 Are all tasks covered in one tasks register, and if n vot, are relations/references
between tasks in separate task registers maintained properly?
 Has the task been executed (if scheduled) according to schedule?

 Are the results from task-executions properly recorded?

 Are all necessary follow-up activities executed or assured into new tasks?

 In case of a recurring/repeating task: is execution for the next recurrence scheduled,

assigned and assured?

After answering these questions per specific obligation, which has been identified as
applicable for certain assets, asset-types and/or disciplines within asset management, it
should provide a clear path to identify potential ‘gaps’ when they are there.
The typical ‘gaps’ which could be identified are:

 Obligation(s) not (fully) covered by tasks defined;

 Execution of tasks not finalized (before deadline);

 Results of execution of task(s) are not (fully) traceable or demonstrable;

 Follow-up activities from execution are not (fully) assured or executed;

 Recurrence task(s) for repeating/recurring tasks are not properly scheduled, assigned
and assured.

 Incorrect asset registration process or assets missing in the ABS.

3.4 Mitigating actions for all identified ‘gaps’

When the complete gap-analyses has been performed an overview of identified gaps is
available. It is mandatory to define mitigating actions per ‘gap’ in order to close the gap as
soon as possible. Every mitigating action should at-least adhere to the following principles:
 Proper and clear task specifications are available.

 Task is assigned to an owner who is responsible for timely execution.

 Every task has a deadline/timeline.

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 Identification of critical and non-critical resources needed in order to complete the task
(contractor support, certified entity to perform a specific action, especial equipment
required, etc.).
All information related to the authority in charge of reviewing the regulations, including
dates of visits to check compliance, information about the auditor/inspector, his/her
identifications, certifications and observations for feedback shall be registered.

4 APPENDICES
For information purposes the following example-file has been added to this procedure.

4.1 Example of Compliance Gap analysis – Task Register –Compliance

overview

Asset Management
Compliace - Gap Anal

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