About Dacon

Dacon works closely with clients in the oil & gas, power, mining and petrochemicalindustries to adapt solutions to suit our clients’ dynamic requirements. Dacon Inspection Services is an independent organization offering inspection services and pipeline intelligent pigging to the highest standard. As part of the Dacon Group Norway, Dacon has been involved in sub sea and pipeline developments and inspections since 1979.

Dacon Inspection Services are proud to be involved in pipeline inspection projectsfrom Argentina to Canada on one side, and from Australia to Norway on the otherside of the globe.

Pipeline Services

Dacon Inspection Services has been established in Asia since 1993, with offices in Singapore and Thailand.

2

Dac

on

Pipeline integrity management is a process for assessing and mitigating pipeline risks in order to reduce both the likelihood and consequences of incidents.

Dacon has implemented an integrity management program for pipelines which is a systematic, comprehensive process designed to provide information to effectively allocate resources for appropriate prevention, detection and mitigation activities. The program builds on an existing foundation of pipeline safety regulations covering design, construction, testing, operation and maintenance that has been in place for many years.

These are the basic steps in the integrity management process.

» Threat identification and risk assessment Information about the pipeline segments is evaluated to identify threats to the pipe and assess risk. » Baseline assessment plan

A schedule for performing pipe integrity assessments over the baseline period is developed. Risk assessment results are used to prioritize the projects. The method of integrity assessment is selected for each segment and becomes part of the plan along with the schedule. More than one method may be required depending on the threats identified. » Integrity assessment – The pipe segments are assessed according to the

schedule and methods identified in the Baseline Assessment Plan, Generally using one of DACON’s comprehensive inspection techniques detailed throughout this brochure » Fitness for Service (FFS) / Fitness for Purpose (FFP) Evaluation – FFS / FFP

can be made to the code as requested by the client including, but not limited to, ASME B31G, API 579, R-STRENG, DNV, POF etc. » Ongoing Risk Based Inspection (RBI) or Inspection Database (IDB)

Program Dacon will establish a risk based approach to prioritizing and planning inspection analysing the probability and consequence of failure of an asset to calculate its risk to the business. The level of risk is used develop a prioritised inspection plan for the asset. As an alternative to a full RBI program, Dacon’s in-house IDB system provides all the benefits of a full RBI program, but at a much lower cost.

IntegrityManagement

3

Dacon

The In Line Inspection (ILI) technique provides unparalleled inspection accuracy in steel and dense material pipelines. The smallest corrosion, pitting or erosion is immediately detected and measured in relation to the pipeline integrity.

If your pipeline is: » Old and /or very corroded you should choose ILI. » In need of very accurate /detailed inspection you should choose ILI. » Externally inaccessible and requires full inspection coverage you should choose

ILI. » Borderline and /or close to de-rating /decommissioning you should choose ILI. » Without launcher /receiver facilities you should choose ILI. » Non metallic pipeline, such as HDPE, you should choose ILI.

There are techniques that may have higher ‘through pipeline’ speed than ILI, but when it comes to inspection accuracy the ILI tool can provide owner or operator with the best remaining thickness data available.

Inline InspectionPrinciple

Ultrasonic Intelligent Pigging / In Line Inspection.

4

Dac

on

The system consists of a horizontally placed ultrasonic transducer contained within the centre body of the ILI tool. The transducer sends it’s sound waves horizontally where they hit a 45° rotating mirror, which then directs the sound waves perpendicular towards the pipe wall. Every time the signal hits a surface a proportion of it will reflect back to the transducer the same way it came. The difference in time between the sent and received signal allows the computer to calculate the time of travel which is then converted to distance and the measurement recorded. These measurements are made by the transducer approximately 800 up to 2000 times per second.

The computer software will plot the thickness recorded from each revolution (B-Scan on the right), or from continuous revolutions (C-Scan below left). To ease data analyzing and overview, the thicknesses are colour coded in the software which allows variations in thicknesses to be seen as a colour change.

The mirror rotates up to 5 times per second, allowing 400 up to 1000 measurements around the circumference of the pipe in a single revolution. This allows for thickness measurements as little as 0.1 mm apart.

Ultrasonic Intelligent Pigging / In Line Inspection.

5

Dacon

MFL can be used with or without liquid in the pipeline and offer a higher inspection speed and hence greater range. These MFL tools are based on the latest standards of electronics,

data processing and measuring principles. This has lead to a unique set of features such as:

» real tri-axial measurement of the flux leakage vector, resulting in accurate assessment of metal loss. » flexible tools with high tolerance for various pipeline diameters, wall thicknesses

and bend radii. » compact size tools, which facilitates easy procedures for pig launching,

receiving and handling. » robust sensor technology, with minimum risk of damage (and data loss). » stabilized sensors with incorporated signal quality control; this feature makes it

possible to correct the measured value for sensor-lift-off e.g. in areas of welds. » powerful software which gives insight in the pipeline condition and easily

compares results of subsequent pig runs, also from other vendors.

Dacon has developed a unique tool for detecting corrosion in pipelines at support areas and other “hidden areas” These areas are susceptable to higher corrosion rates for many reasons, inspecting them historically has involved costly and time consuming operations to lift the pipe or cut the supports, but can now be done in situ quickly, cost effectively and simply.

The Dacon CUS system has been successfully field tested offshore in conjunction with PTTEP, and successfully undergone trials onshore with Exxon Mobile.

Using patented technology the Dacon CUS system has now hit the market to an incredible reception, and is already booked to perform inspections around the globe for several major oil and gas companies.

Magnetic Flux Leakage

Corrosion Under Support

Pigging (MFL)

(Dacon CUS)

6

Dac

on

There is a demand in the market for improved probability of detection (P.O.D.) and exceptional accuracy for sizing of corrosion pits. Competing tools that use Magnetic Flux Leakage (MFL) require intimate contact with the pipe wall in order to achieve acceptable flaw sizing. Unfortunately many pipelines have internal deposits of wax, scale or sand and others are lined with cement mortar, epoxy or polyethylene, preventing the effective use of MFL tools. See Snake technology, on the other hand, requires no contact with the pipe wall, and can measure through scale, wax and non-magnetic liners. In fact, See Snake tools have a minimum clearance of 0.250” (6.3mm) to allow passage of the tool past weld roots, dents and internal deposits.

Just like the real thing, See Snake tools are flexible. So flexible in fact that they can negotiate multiple 90 degree bends.

See Snake Tools are completely water proof and can be pumped through the pipeline with the product flow, or with compressed air.

Caliper and/or Geometrical Inspection of the pipeline.The Caliper pig provides a powerful tool and secondary inspection to the Intelligent Pigging. Any variation to the internal surface of the pipe is registered in a user friendly software that serves to independently verify any ID features.

The tool can be combined with a Geometry pig, which incorporates and Internal navigation System (INS), that enables 3D software representation of the pipe run, showing deformations, misalignments, bends, elevation changes and directional changes to the pipe. The software is easy to use and allows for full documentation of the entire pipe location, readily available on customers computer.

SeeSnake RFT

Geometric

Pigging

Caliper Pig

Geometry Pig 3D reportingrepresentation of pipe runand location

7

Dacon

Dacon is one of the world leaders in ultrasonic pigging of high density polyethylene (HDPE) pipelines, regularly inspecting pipelines up to 48” diameter.

HDPEPipeline

Dacon’s involvementDacon Inspection Services first started testing Intelligent Pigging for HDPE pipes in 2001 and conducted the first commercial inspections in 2004. More then 170 hundred commercial inspection runs in large diameter HDPE pipelines has been completed by earlier of 2011.

This enables HDPE Pipeline owners to accu-rately verify the condition of any line in regard to remaining wall thickness, damages and integrity of the pipeline, thus enabling full Fitness For Service (FFS) and integrity studies of these lines.

The technology Dacon utilizes has been specially developed for HDPE and plastics material and provides unequalled accuracy and inspection coverage.

8

Dac

on

SpheresSpheres are available in size 2 inches to 36 inches and are used for separating batches, hydrostatic testing, dewatering and line maintenance with corrosion inhibitors. Different durometers can be used when additives are present in the line.

Steel Mandrel pigsCan be manufactured in sizes 2 inches-48 inches and are used for cleaning, batching and gauging in Uni or Bi-Di modes by using different disc and cup arrangements. When used for gauging an aluminum disc is added. Cleaning pigs can have spring loaded brushes and/or scrapers attached to the pig body for various applications. Steel mandrel pigs are mainly used for batching, displacement, hydrostatic testing, paraffin removal and cleaning.

Polyurethane pigsWe supply 4 basic types of polyurethane foam pigs: drying, wiping, cleaning and scraping, all manufactured from high quality open cell polyurethane foam in sizes from 2 inches to 144 inches and coming in four different densities.

» 1 – 2 lb/ft3 Drying, Cleaning and Scraping. » 5 – 8 lb/ft3 Regular Wiping and regular Scraping. » 9 – 10 lb/ft3 Heavy Wiping and heavy Scraping. » Up to 20 lb/ft3 Special applications - Batching, Special

PipelineCleaning

Cleaning and Scraping.All polyurethane foam pigs are able to negotiate 90 degree Ells, Tees, Valves and pipe internal diameter changes. They will travel in almost any piping system with adequate flow and volume to move the pig.

Solid Cast PigsPigs of solid cast polyurethane with multiple discs and/or cups of various durometers to suit specific applications. They give a good quality seal which make them ideal for product batching, line displacement and product evacuation. They also can be used to control paraffin build up in crude oil lines.

9

Dacon

Pressure testing is a way to provide quality assurance of any pipeline or pressure vessel, and helps identify damaged or defective pipe fittings joints, valves, hydrants and thrust restraint systems. There are many advantages of pressure testing such as decreasing expense risks and decreasing health and safety risk.We can divide pressure testing into 2 methods:1. Hydrostatic Pressure Test.2. Pneumatic Pressure Test.

Hydrostatic Pressure Testing:is a way in which leaks can be found in pressure vessels, pipelines and plumbing. Using this test helps maintain safety standards and durability of a vessel over time. Newly manufactured pieces are initially qualified using the hydrostatic test, they are then continually re-qualified at regular intervals using the proof pressure test which is also called the modified hydrostatic test. Hydrostatic testing is also a way in which a gas pressure vessel, such as a gas cylinder or a boiler, is checked for leaks or flaws. Testing is very important because such containers can explode if they fail when containing compressed gas.

Pneumatic Pressure Test:This involves higher final pressure and also involves higher risk, so this method must only be used when hydrostatic testing is not practicable. No work should be carried out on the piping during the test. If the compressed air supply cannot be controlled from outside the test area then the pipe work in the test area should be protected to limit damage if an explosive failure of the piping occurs.

PressureTesting

10

Dac

on

Dacon’s research and development department is continuously working on upgradesor specific developments to suit clients’ requirements. With today’s availability of advanced technology such as GPS systems, inclinometers, accelerometers and other sensors, there is virtually no limit to the amount of data that can be gathered from an ILI tool run down a pipeline.

Researchand Development

The ILI tools can be fitted with distance and angle encoders, sub sea and topside tracking systems, GPS coordinate trackers, elevation trackers to mention but a few of the combinations available. Test and calibration pieces are manufactured both for specific inspection projects, and for further development of the ILI tool. Inspection speed and accuracy are continuously under development to optimize the ILI system capabilities.

Dacon’s R&D department is developing a 4th generation UT Intelligent Pigging tool, which will be a breakthrough in UT pigging technology. Detection of Corrosion Under Support (CUS) and Corrosion Under Insulation (CUI) has been a challenge for many years, Dacon’s R&D is developing tools to effectively inspect these areas.

4 Inch

11

Dacon

Dacon inspection Services operate a Pipeline Test Yard of approximately 1 Rai (0.4 acres) in Dacon’s office. The yard is designated for testing and contains tanks, pumps and calibration equipment specifically for pipeline testing purposes. At present the following lines are available for testing purpose:

Pipeline1. 14” pipeline with artificial defects and 3D bends - 35 meter2. 16” pipeline with severe internal corrosion - 5 meter3. 16” pipeline with a ‘Y’ connection and 5D bend - 20 meter4. 8” pipeline with 1.5D bends – 10 meter5. 6” pipeline with 1.5D bends – 16 meter6. 4” pipeline with 1.5D bends – 12 meter

Riser Pipe1. 14” pipeline 11.13 mm - 1 meter2. 16” pipeline 12.70 mm - 2 meter3. 20” pipeline 15.09 mm - 2 meter

Calibration PiecesAll regular pipeline sizes are availiablefrom 4” - 48” pipe diameter.

All test pipes have flanges and possibility for inserting spool pieces with special defects or arrangement for inspection/testing purpose.

PipelineTest Yard

12

Dac

on

No two pipelines are the same and specific procedures there-fore are always developed for cleaning, gauging and inspection prior to mobilization.

Being an intelligent pig is a tough job, the ILI tools are designed to handle the most adverse conditions with regards to chemi-cals, pressure and bend configuration found in modern pipe-lines.

The general rule for the cleaning requirement of any pipeline is that the cleaner the line the better the inspection result and less chance of any problems during inspection.

Cleaning of a pipeline can be achieved in many ways, normally hard or soft bodied cleaning pigs would be run through the line until the pipe is cleaned to the desired level.Gauging of the pipeline is equally important prior to inspection to verify that the line does not have any diam-eter restrictions,and is normally carried out with a rigid bi-directional (Bi-Di)pig fitted with perforated aluminium gauge plates.

Launcher / receiver facilities are normally preferred both for safety reasons as well as to ease the launching and receiving process. It is however possible to use temporary launcher / receivers or even launch directly into both horizontal or vertical lines with no launcher / receiver.

PipelineRequirements

13

Dacon

In picture: HDPE 48” diameter 3.2km tailings lines

at a gold and copper mine in SE Asia, for one of the biggest mining companies in the world. The job consisted of Ultrasonic In Line Inspection, or Intelligent Pigging, of one x 48” diameter pipeline running from shore for 3.2km out to sea, and one x 40” diameter pipeline running from shore to 3.4km out to sea. The pigs are launched in triplicate ineach pipeline, so a total of 6 intelligent pigs were run, each obtaining accurate and informative data on the pipeline condition enabling continued safe operation of the mine.

The pipeline is open to the sea and the Intelligent Pigs are ejected at 125m below sea level, so they are fitted with flotation devices and GPS transponders to ensure they are not lost at sea, and are then retrieved by boat. A truly innovative and bespoke solution to a unique Intelligent Pigging requirement.

Dacon have recently completed

Dacon News

the successful In Line Inspection of 2 subsea Tailing line

14

Dac

on

Dacon signs agreementwith Russell NDE & PICA

Russell NDE president, Dave Russell and Dacon Managing Director Martin Stuvik have inked an agreement to share their technology within their market areas. The agreement allows Russell and its sister company PICA to market Dacon’s UT PIG (anultrasonic, high precision, in-line inspection tool for pipeline inspections) within Canada and the USA. It also allows Dacon to market Russell and/or PICA’s electromagnetictools for pipeline inspection in Thailand and surrounding areas.

Dacon was once again sucessfull in bringing the API individual Certification Examina-tion to Thailand, as per the API list of examination centers Thailand is not in the list of permanent sites for theexamination of API Individual Certification Programs. Indeed its an acheivment for Dacon to facilitate the individuals from various Oil and Gas companies and service providers to take up the exmination in Thailand. Earlier all these individuals would have to opt for Singapore or Malaysia which is a permanent examination site for API Individual Certification Examination.

In picture: Mr. Martin Stuvik Managing Director of Dacon with President Dave Russell of Russell NDE during his visit to Rusell NDE facilities in Edmonton Canada

Dacon Brings API Individual CertificationExamination to Thailand for June 2011 Session

This is the second time Dacon managed to bring the API Individual Certification Examination to Thailand earlier was in Sept 2010. Dacon has arranged the training programs for the API 510 and API 570 in the month of May 2011 to help the individuals for better understand and sucessfully passing the examination and moreover it gives an oppurtunity to the individuals to practice a mock up examination that would be simillar to API examination.

15

Dacon