This paper will explain the process and practices involved in managing Asset Integrity within the context of the UKCS, one of the most regulated environments of the world. The paper will explain the following main areas:
1 The workings of Asset integrity within an major oil and gas company operating in the N Sea, including illumination of the processes that we have developed over the last seven years to assess the risks of the threats that we face in order to validate and prioritise the works.
2 We have undertaken ageing and life extension studies and the paper will discuss the methodology used, the outcomes and the results in relation the UK regulators programme to assess the understanding of Oil and Gas companies in relation to ageing and life extension.
The processes and tools explained in the paper will be transferrable to any operator or duty holder looking to establish or improve an Asset Integrity function around the world. In terms of achievements, the processes that we have in place both demonstrates that we are managing the risks that we encounter as well as senior management involvement and leadership on the issues. With regard to life extension, as a result of the ageing studies that we undertook we have moved on from study and assessment into the implementation phase of the required works that will enable us to operate one of our facilities for 20 years in excess of the original design life.
The author is a member of the Asset Integrity Workgroup in Stepchange in Safety and has presented on elements of Asset Integrity at numerous seminars in the UK in recent years. Most recently I was also invited to participate as a member of the panel session on Ageing and Life Extension at Offshore Europe 2011 in Aberdeen.
As oil and gas projects explore more and more challenging territories, and as public opinion is increasingly aware of risks from drilling operations, it is of furthermost importance to better understand and systematically manage these risks.
For every well project on the Norwegian sector, the risks from a blowout are studied from the safety and the environmental perspective, through Quantitative Risk Assessments and Environmental Risk Analyses, respectively. The blowout characteristics (probability, flow rates, durations) are among the most influent input parameters for these analyses. Traditionally these parameters have been extracted from available historical statistics from blowout databases. These databases provide generic data with very limited consideration for the well and operation specific characteristics (e.g. exploration, development, HPHT).
DNV has developed a methodology for the assessment of blowout risks in order to better understand them and to be able to provide a more realistic risk picture. A multidisciplinary approach is applied during the risk assessment process, assessing the drilling or well operations according to a set of predefined criteria or risk factors. This benchmarking analysis is used as a basis for assessing the probability of a leak or a blowout. Well flow simulations are used and adjusted in order to assess the well specific leak and blowout rates for the different operations. The potential leak and blowout durations are calculated using statistical models and taking into account the context of the drilling and well operations.
This new method considers the field specific reservoir challenges, best available technology and best operational practices in order to generate a more field and operation specific risk exposure. The results are more accurate risk predictions. Traditional analysis may be too conservative and would typically not reflect the actual well conditions, barriers and operational steps. Relevant examples from the Norwegian sector are presented.
Kominas, Charlie (ExxonMobil Development Company) | Shaw, Miles J. (ExxonMobil Development Company) | Moynihan, Kelly J. (Exxon Mobil Corporation) | Brinkmann, Philip (ExxonMobil Development Co.) | Tyler, David C. (Exxon Co. USA)
Oil and gas industry projects have the potential to impact individuals, communities and the environment where they occur. Early identification, planning and engagement are essential to implement appropriate risk management-related avoidance and/or mitigation measures as well as identify and optimize opportunities to achieve positive socioeconomic outcomes. ExxonMobil recognizes that effective management of social and environmental issues is fundamental to the management of risk related to its major upstream projects and to achieving long-term Company success.
Socioeconomic Management is the term ExxonMobil uses to describe its approach to managing local community impacts. Socioeconomic Management is a risk-based approach comprised of several core elements that include but are not limited to: adhering to internal corporate policies, expectations and standards; complying with applicable host country regulatory requirements, international conventions and universally recognized industry practices; engaging with external groups; and building local economic capacity.
ExxonMobil's Upstream Socioeconomic Management process covers:
• Impact assessment and mitigation;
• Human rights;
• Community relations;
• Indigenous peoples;
• Cultural heritage and diversity;
• Land use and resettlement;
• Economic development; and,
• Transparency and corruption.
Socioeconomic issues can be difficult to identify, predict, assess and consequently manage, and business challenges include, and are often dominated by, socioeconomic attributes. Industry data indicate that international oil and gas projects are often adversely impacted, from a cost and schedule perspective, by stakeholder-related issues. ExxonMobil's own experiences have reinforced that sufficient time and resources must be dedicated to manage socioeconomic issues. Early and frequent engagement with the appropriate external stakeholders is an important factor in addressing these challenges.
What makes ExxonMobil successful is its commitment to carefully and systematically identify, plan for, and manage risk. This is accomplished by applying a rigorous management approach — the Operations Integrity Management System, or OIMS. OIMS integrates safety, security, health, environmental and social risk management into every aspect of ExxonMobil's business. ExxonMobil's approach to managing local community impacts is integrated into OIMS.
Modern Oil and Gas facilities are designed to meet an extensive array of government legislation and international standards and are subjected to a range of technical and operational safety reviews and analysis to identify and reduce failure risk. By taking such an approach, residual risks can be demonstrated to be As Low As Reasonably Practicable, (ALARP) - this process is normally recorded through a Safety Case or safety report, reflecting good oil and gas practice. Despite the use of recognised Exploration and Production, (E&P) practices provided in ISO, API, IEC, national standards and local in country regulations, major accidents are still occurring in the industry with an unacceptable frequency of intolerable business consequences. In addition, the differing regulatory compliance regimes between countries may not provide an equitable approach to operational and design requirements affecting safety and in particular the suitability of the risk management processes adopted. It is generally accepted by E&P companies that significant major accident risk reduction is achieved at the design stage, to ensure that facilities are robust against system or component failure of Safety Critical Elements, (SCE).
Moreover, regulatory bodies are increasingly expected by the public to adopt a robust intervention approach should operators continue to operate using an increasing set of operational deviations or with assets not in compliance with risk based inspection and testing requirements. In addition to the risk reduction achieved through the design, it is also understood that the human-machine interaction to respond to hazardous situations has a significant role to play in preventing the hazard occurrence and/or mitigating the magnitude of the consequence. This paper will provide an overview of how the E&P industry provides robust "fail-safe?? designs against Major Accident Hazards, (MAH) and possible differences in design practices between different E&P sectors, such as production platforms versus drilling rigs. The paper will also examine other major hazards' industries and assess how their design requirements are configured to ensure that risk control systems fail in a safe manner and extrapolate these approaches to the E&P business. Case studies will be used to show how "fail-safe?? design principles can be applied to the system design of a sub-sea well connected to a Mobile Offshore Drilling Unit, MODU during exploration drilling and also at the component level for the Blow-Out Preventer (BOP). The paper will discuss the findings from the case studies in the context of a providing a fail-safe design approach to reduce residual risks.
The Gulf-war (1991) resulted in one of the world's biggest environmental disasters, impacts of which are still to be assessed. The post war environmental impacts comprise of multiple dimensions among which only two dimensions have been investigated in this research. The first dimension was to assess the amount of present offshore oil slicks while the second approach was to assess the impacts on coastal areas along the Gulf in a-20-years period (1991-2011) using high resolution satellite imagery.
42 high resolution ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer) satellite images have been employed in this research in the TIR (thermal infrared) region of the EM (Electro Magnetic) spectrum to assess the impact of the spill on the coastal zones along the Gulf since 1991. In order to assess and monitor the trend of the oil slick movements during the last 20 years period offshore, thirty (30) Seasonal day time MODIS (Moderate Resolution Imaging Spectroradiometer) satellite images were employed. Following intensive processing and image classification procedures, color composite images of the TIR bands of the ASTER satellite and moderate resolution bands of MODIS were produced.
Fuzzy logic and variograms were employed throughout the processing procedures of the data analysis as powerful tools to reduce uncertainty prior to data analysis.
The processed MODIS images mapped the direction of the movements of slicks in the last 20 years offshore while the processed ASTER images were employed to monitor the gradual impact on the coastal zones along the Gulf during the same 20 years period.
Astonishing results were achieved. Some slicks are still present in the Gulf region and the magnitude of the environmental damage on the coastal areas along the Gulf hasn't decreased in accordance with the standard contingency plans.
Immediate response is demanding both to remove the existing slicks as well as the shoreline cleanup and restoration, the impacts of which have accumulated over the last 20 years.
The prevention and management of infectious diseases, including human immunodeficiency virus (HIV) infection, has been an area of increasing focus of the oil and gas industry. HIV infection is highly prevalent in many of the regions where oil and gas production occurs. With the introduction of antiretroviral therapy, people living with HIV are living longer and able to participate in the work force. Recent epidemiological studies indicate that age-related illnesses are more common in HIV-positive (HIV+) individuals than in age-matched HIV-negative (HIV-) individuals. Together with the typical age-related illnesses of older people, challenging workplace issues are foreseeable.
Among long-term survivors of HIV infection, increased risk of bone, heart, cognitive diseases and certain malignancies have been described. Correlations exist between bone health in HIV-infected persons and increased risk of fragility fractures. Additionally, cardiovascular disease and neurocognitive deficits are recognized as occurring prematurely in HIV+ individuals. Further, it is suggested that long-term antiretroviral therapy may result in medication toxicity. Such degenerative illnesses have wide impact on health and the working environment during exploration and production operations including reduced productivity, reduction in labor pool experience, and increased safety risks in transporting, lifting, and equipment operation. Outcomes like these result in additional project and health costs that are ultimately paid by the operator, contractor, stakeholder and the community.
This paper highlights recent epidemiological findings based on cohort studies, translates their relevance to the oil and gas industry, discusses their direct impact on health and the working environment, personal safety, health safety and environment (HSE) management, and suggests timely industry preparation for workplace issues resulting from HIV and aging, both premature and chronological aging.
This paper presents findings on the effectiveness of management systems to elevate social performance, illustrated by two case studies of shale gas development in the United States and Europe. This paper provides practical insights to the upstream oil and gas industry on (a) using management systems to drive a higher level of social performance for shale gas development and (b) generally integrating social performance even more effectively into management systems. The case studies illustrate several benefits driven by management systems: increased organizational focus and identification of resourcing needs through deliberate planning, performance innovations to meet stakeholder expectations and concerns, an ability to meet the challenge of community-level engagement with underlying confidence in processes. The company's experience in these case studies also illustrated a difference between the environment, health and safety (EHS) function and the external affairs function in the extent that the management system governed performance . Practioners also noted a seeming trade-off in employing a management systems approach: that better performance in the short- and long-term requires reconciliation with initially slower decision making and operational expansion. Finally, this paper presents several practical tips on social responsibility and shale gas across the key dimensions of a management system, with three concluding considerations around the importance of adequate resourcing, sharpening functional responsibility and accountability for social performance and the role of company-wide requirements.
Marine mammals, including coastal dolphins, West African manatees, offshore cetaceans (baleen whales and larger odontocetes), and marine turtles are increasingly under threat; many are rare, although some cetaceans are showing recovery from commercial exploitation. When Angola Liquefied Natural Gas (LNG) began using Chevron's Operational Excellence Process for Environmental, Social and Health Impact Assessment (ESHIA) to manage the potential environmental impacts of a proposed LNG facility in the Congo River Basin, they collaborated with the Wildlife Conservation Society (WCS) to address issues identified in the Angola LNG ESHIA Process and to develop programs to protect the marine turtles and marine mammals through cooperative science and management, training, and education.
Marine Mammal Program
The Marine Mammal Program fieldwork, conducted by WCS and Angola LNG in the Congo River Basin area and South Atlantic coastline near Soyo, Angola, was completed between 2008 and 2009. Activities included the assessment of inshore and Congo River environments and marine mammals, and the use and deployment of Marine Autonomous Recording Units (MARUs; shown in Figure 1) as a cost-effective means of surveying whales in the South Atlantic Ocean. This was the first time MARUs were used off the coast of West Africa.
The MARUs allowed for long periods of continuous monitoring for vocalizing cetaceans, cetacean behavior and anthropogenic contributions to ocean ambient noise with relatively minor field effort. The technique also allowed for uninterrupted acoustic monitoring investigations, otherwise impossible with boat-based visual methods during night hours and inclement weather. However, there were certain challenges in using the MARUs, such as the analysis and management of large datasets, as well as the identification of signals in the recordings when there is little to no possibility of verifying all possible signals through simultaneous visual surveys and sightings. Due to logistical and safety limitations for conducting numerous offshore surveys for identification, existing data from other parts of the world were used for comparisons to confirm species of vocalizing whales. In many cases, some of the signals will remain unknown.
As a result of the work, WCS achieved the first detailed description of humpback whale singing behavior and migration timing off coastal northern Angola (Figures 2 and 3) during the Angola LNG project with the MARUs. WCS also documented the presence of blue whales (Figure 4), the first modern evidence of this endangered species off Angola since whaling ended.
The Goliat field operated by Eni Norge AS (Eni Norge), with Statoil Petroleum AS (Statoil) as only partner, will be the first offshore oil field in the Barents Sea and the world's northernmost offshore oil field. The production will commence during the last quarter of 2013. The field is located in the south western part of the Barents Sea, relatively close to the coastline in an area perceived to be environmentally sensitive. The area has high political focus, especially on oil spill preparedness, and strict environmental requirements.
The implementation of the Goliat oil spill preparedness will introduce new technologies and methods, which are the results of R&D projects and initiatives developed in cooperation with Statoil and the Norwegian Clean Seas Association for Operating Companies (NOFO). This will give an increased oil spill response capability, especially for the coastal zone, both for the Goliat field and for other oil and gas activities on the Norwegian Continental Shelf (NCS). It is also expected that this implementation will have a positive impact on oil spill preparedness in general and for access to new acreage on the NCS.
This paper will address how the oil spill preparedness for Goliat will bring the coastal oil spill preparedness on the NCS up to a new level. Goliat will be the first field in Norway to implement permanent use of fishing vessels, a special acute phase task force, and an integrated field oil spill detection and surveillance system. The oil spill preparedness focuses on locally adapted solutions for quick and effective response.
This paper will in addition, illustrate how the oil spill response planning and development has been conducted over several years and how the oil spill preparedness is being implemented for both the production drilling and production phase at Goliat.
The paper is closely linked to the SPE paper 156795-PP "Coastal Oil Spill Preparedness Improvement Programme (COSPIP) and Memorandum of Understanding - Comprehensive Joint&Industrial project focusing on coastal oil spill challenges?? (1). It is also related to the SPE paper 98593 "High resolution oil spill response planning for operations in a sensitive Arctic environment. Sharing information between operators, national authorities, local oil spill response groups, and the general public?? from 2006 (2) and SPE paper 126598 "IA for the Goliat Offshore Oil Field Development. World's northernmost offshore oil development??? from 2010 (3).
Resilience is the capacity to bounce back from adversity, and is characterised by flexible thinking and adaptive behaviour. All humans have some degree of resilience, and individual capacity for resilience can be learned and strengthened. Research shows that resilient employees perform better, are more productive, and are healthier and happier. Resilience training for employees is gaining momentum in the workplace. Shell's approach is focused on being practical and we have spent time on developing the design and delivery of resilience modules to Shell employees around the globe. This presentation will cover the methodology of the Shell resilience programme, and the evaluation of the programme to date, and what makes this programme innovative.
A Resilience Programme: Enhancing Human Performance
If you type "People are our best asset?? into Google, you get 383 million results in 0.2 seconds.
We have all heard this term "People are our best asset??. The statement recognizes the essential importance of people to the success of a business. Whilst there may be argument about the use of the word "asset?? to describe people, there is little argument that engaged, effective, high performing people will significantly contribute to business success. Discussions on how businesses can move toward having a workforce of highly performing people abound in books, papers, boardrooms, HR meetings, business forums and on most of those 383 million sites on the internet. This paper discusses just one of the factors that can assist individuals and teams to become high performing - resilience.
This paper covers a programme that Shell has developed over the last few years, designed to enhance resilience, and focusing on assisting Shell people to be the best they can be. Why Shell moved into this approach, how the programme was designed, the progress of the programme thus far, and plans for the future are discussed. Whilst the programme is global, some data from Australia is used in this paper to illustrate the thinking behind the shift from the more traditional stress management approach, to the newer resilience development approach, as this paradigm shift was occurring simultaneously locally as well as globally.
Management of mental health in the workplace has been on the agenda in Australian workplaces for many years. This was strongly influenced by the upward trend in workers compensation claims for mental disorders, and the disproportionate cost and time lost for these types of claims. "Stress Management?? programmes were put in place in many workplaces, and managers and employees were put through courses designed to help them recognise the early warning signs of a stressed employee or workmate, and therefore to intervene. WorkCover authorities published guidelines to manage stress in the workplace, and external providers offered many products to assist companies to manage this issue.