Barents Jon Rysst 11 February 2010

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1 Barents 2020 Jon Rysst 11 February 2010

2 Project Objectives (2007) The overall aim of the project is to ensure that all oil and gas operations in the Barents Sea, be it on Norwegian or Russian side, should be carried out with an acceptable safety level. Safety involves safety for life, environment and asset values The project includes all aspects of offshore petroleum activity, i.e. exploration, drilling, production, transportation and support activities The project must establish a dialogue between Russian and Norwegian experts so they may recommend safe and harmonised industry standards for use in the Barents Sea.

3 Barents Sea Challenges Low temperatures - Working Environment - Cold Flow - Selection of materials Ice - Sea ice and ice loads - Icebergs and Ice management - Icing Darkness - Working environment - Rescue Remoteness - Emergency preparedness - Transportation of personnel and equipment Vulnerable Environment

4 Safety level for Barents Sea Assumption: At least as safe as for operations in the North Sea Risk (Incident) = Probability (Incident) x Consequence (Incident) should be same for North Sea and Barents Sea In the Barents Sea the consequences (C) of an incident may be more serious than in the North Sea due to cold, darkness, ice, icing, distances to shore, lack of infrastructure, etc. If consequences (C) increase, the probabilities (P) must decrease to keep Risk (R) constant

5 Agreed recommendations for harmonized standards Laws National Regulations ( Forskrifter ) Recommended International Standards Solved phase 3 Detailed Industry Guidelines

6 Field Specific Safety Regime: Case Russia/Shtokman Russian Federation Company: SDag Field: Shtokman National Laws National Regulations and Guidelines Functional Industry Standards Operator s HSE policies Risk Assessment of actual installation in actual conditions Detailed Industry Standards, Industry guidelines, Recommended Practices Corporate Standards Project Specific Technical Specifications

7 Work Flow Phase 1 Phase 2 Phase 3 WG 1 RUS + NOR WG 2 First Stakeholder meeting Norway Select stakeholders Establish baseline Russia Select stakeholders Establish baseline Russian/ Norwegian Conference - Present position papers - Select Steering committee - Select topics for review - Appoint Expert WG RUS + NOR Topics outside project scope WG 7 Jan 2008 July 2008 Nov 2008 Dec 2008 Dec 2009

8 Russian - Norwegian Experts: 2 nd workshop in Norway in June 2009

9 Topics for Working Groups in Recommend the basic list of internationally recognized standards for use in the Barents Sea Recommend standards for design of stationary offshore units against ice loads in the Barents Sea Recommend standards for Risk Management of major Hazards, such as Fires, Explosions and Blow-outs on offshore drilling, production and storage units in the Barents Sea. Recommend standards for escape, evacuation and rescue of people from ships and offshore units, including standards for rescue equipment Recommend standards for working environment and safety, related to human performance and decision making (Human factors) for operations in the Barents Sea Recommend safe standards for loading, unloading and ship transportation of oil in the Barents Sea to minimize risk of accidental oil spills Recommend standards for operational emissions and discharges to air and water in the Barents Sea

10 Expert group participants phase 3 No Group Topic Russian Experts Norwegian Experts 1 Basic list of standards Rostekregulirovanie, TK23, Gazprom, Rosneft, CNIIMF Statoil Hydro, Standard Norge, Moss Maritime, Ptil, DNV 2 Design against Ice loads VNIIGAZ, Min. Emergency Sit., Lukoil, Rosneft, MRS NTNU, Olav Olsen, Statoil Hydro, Moss Maritime, DNV 3 Risk Management of major hazards 4 Evacuation and Rescue 5 Human factors VNIIGAZ, Min. Emergency Sit., Giprospetzgaz, Lukoil, Rosneft, CNIIMF Lukoil, Rosneft, CNIIMF, Giprospetzgas,VNIIGAZ, Krulov, Min. of Defence VNIIGAZ, Giprospetzgas, Gazprom, CNIIMF ENI, Statoil Hydro, NEK, Ptil, DNV ENI, Marintek, Ptil, Norw. Ship owners Association, Industri Energi, DNV Statoil Hydro, ENI, Transocean, Ptil, University of Tromsø, DNV 6 Loading/unloading, ship transport of oil VNIIGAZ, Giprospetzgaz, Lukoil, CNIIMF, Krulov, Sovkomflot Teekay, APL, DNV, StatoilHydro, Ptil 7 Operational discharges to air and water VNIIGAZ, CNIIMF, Krulov Statoil Hydro, ENI, Transocean, DNV

11 Basic list: 130 Standards Identified ISO: 67 IEC: 12 NORSOK: 13 IMO: 6 DNV: 6 Russian Register: 5 GOST R: 4 EN: 3 World Bank: 2 ILO: 1 PSA: 1 EEMUA: 1 OGP: 1 OCIMF: 1 ARCOP: 1 ISGOTT: 1 CAA: 1 API: 1 NFPA: 1 Class Rules for floating units IACS: 1

12 Basic List: Environmental standards for reference, offshore oil & gas ISO 14001:2004 Environmental Management System - The ISO implies that activities are planned for and executed in a systematic manner considering relevant environmental aspects and aiming at continuous improvement. International Finance Corporation / World bank Group Environmental, Health, and Safety Guidelines: - Offshore Oil and Gas Development (2007) - Air Emissions - Wastewaters - Waste management - Hazardous Materials Management - Noise - Decommissioning - Ambient Air Quality (2007) NORSOK S-003 Environmental Care (2005)

13 Ice loads: Barents Sea is not uniform as to ice and metocean conditions Main Findings - Ice and Metocean conditions vary in the Barents Sea, but are uniform within each numbered sub-area I III IV - Waves and winds are lower than in North Sea II V - Main difference from North Sea is ice and icing, and current standards do not cover these loads - New standard ISO is a good basis for ice loads on arctic structures however with proposed amendments VIII VI VII

14 Risk Management: Focus on Prevention Risk reduction can be achieved by controlling - Consequences of incidents or - Probabilities of incidents Barents 2020 focus on prevention - We believe it is better to prevent accidents from happening than to mitigate consequences, and this means reducing the probability of incidents by improved specifications / standards

15 Risk management: Technicalsafety barriers Topside integrity: - Containment - Ignition source control - Fire&Explosion risk mitigation Selected scope Well control barriers (drilling and production) - Down hole safety valves - BOP & control system - X-mas tree -Risers - Surface flow tree - Compensators

16 Risk Management: Main areas of concern Explosion and fire risk management: Cold and harsh climate require protection of personnel and process equipment by enclosing the process areas. Explosion and fire risk management is considered to an important area with respect to safe design of arctic offshore installations. Ignition source control: Cold climate will require increased sheltering of hazardous areas. This reduces the ventilation rate compared to naturally ventilated areas, and may cause even a relatively small release of hydrocarbons to build up an ignitable gas cloud of sufficient size to expose an ignition source. Sevan Hummingbird, North Sea Sevan Goliat, Barents Sea

17 Escape. Evacuation and Rescue: Changes from North Sea Practice Examples of changes expected for Barents Sea conditions in relation to North Sea industry practice may include: - Survival suits adapted to Arctic conditions - Built-in or covered escape ways - Temporary safe refuge for personnel providing protection for days rather than hours - Alternatives to free fall lifeboats in case of ice conditions - Hospital/medical capability on installations - Better equipped standby vessels, adapted to take on board new types of life crafts, and to suit man overboard rescues - Helicopters adapted to actual distances and climate conditions

18 Working Environment & Human Factors: Main areas of concern Focus: Human health, safety and performance

19 Ship Transportation of Oil and Offshore Loading Main areas of concern Ice Management - Procedures and Standards - Training - Competence - Capability of vessel IMO Guidelines for ships operating in Polar Waters ISO/CD under development, Chapter 17 DNV Comp. Stand. for Officers for Navigation in Ice Guidelines for Navigating Ice Covered Seas in Russian Territorial Waters (Russian only) OCIMF, Ref. to Class Notations, Power, Ice Passport Collision with ice, transit in open water IMO Guidelines for ships operating in Polar Waters Navigation, Equipment etc. IACS Ice Class Rules Training Standards Offshore Cargo Transfer - Procedures - Equipment standards International Safety Guide for Oil Tankers & Terminals, ISGOTT Best Practice Guide for Vessel Operators (TSMA) OCIMF briefing paper on the use of large tankers in ice and severe sub zero conditions OCIMF/ Intertanko Standards

20 Final Conference in Moscow

21 Discussion of results so far Comments to different hierarchy levels Laws: Not covered Regulations: Not covered, but based on discussions in the expert groups it appears this is where the main differences lay between Russia and Norway Barents 2020 experts have proposed functional international standards common for Russia and Norway, i.e. this level can be harmonised to a reasonable level The expert working groups propose further work on detailed industry guidelines for the Barents Sea Laws National Regulations Functional International Standards Detailed Industry Guidelines

22 Results, identified main standards Laws National Regulations RN-01 Comment on Upcoming Regulations RN-03 Risk Assessment; Training & Seminars Recommended International Standards Detailed Industry Guidelines RN-07 MARPOL Special Area Regional Barents Annex to ISO RN-02 Ice Loads RN-04 Escape Evacuation & Rescue RN-05 Working Environment RN-06 Ice Management Key Funding; Industry

23 Practical use of project results / use of Recommendations Final report with recommended standards will be sent to Standardisation organisations (e.g. ISO) for consideration at next standard update National regulators in Russia and Norway for reference in national regulations Operators and designers as input to project specifications until updated standards are available (will take several years) Research organisations and consultants as basis for further work

24 Safeguarding life, property and the environment

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