Risk management and major accident potential in a safe late phase. Experience from Supervisory Activities.

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1 Risk management and major accident potential in a safe late phase. Experience from Supervisory Activities. Ingvill Hagesæther Foss Director of supervisory activities Kjell Arild Anfinsen Supervision Coordinator Petroleum Safety Authority Norway

2 Petroleum Safety Authority Norway Established in 1972 as part of the Norwegian Petroleum Directorate Independent regulator from 2004 Responsible for supervising safety and the working environment in the petroleum industry Report to the Ministry of Labour About 170 employees

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4 PSA overall goal The Petroleum Safety Authority Norway set the terms for and follow up that the companies in the petroleum industry maintain a high level of health, safety and the environment and emergency preparedness, and thereby also contribute to creating the highest possible value for society 4

5 PSA Main Priority 2015 Safe Late life Marginal profit due to reduced production and increased cost Regulatory requirements are challenged Strong pressure for continuation of production

6 Age production facilities on NCS EKOFISK B EKOFISK C ELDFISK A TOR ELDFISK B STATFJORD A VALHALL Q STATFJORD B VALHALL DP DRAUPNER S HEIMDAL STATFJORD C ULA DP ULA PP ULA QP EKOFISK K GULLFAKS A GULLFAKS B OSEBERG A OSEBERG B GULLFAKS C GYDA VESLEFRIKK A VESLEFRIKK B OSEBERG C EMBLA SLEIPNER R SNORRE A BRAGE DRAUGEN SLEIPNER A DRAUPNER E HEIDRUN SLEIPNER B TROLL A TROLL B EKOFISK X SLEIPNER T VALHALL WP EKOFISK J NJORD A NJORD BRAVO NORNE FPSO VARG A JOTUN B OSEBERG ØST PETROJARL VARG VISUND BALDER FPU ELDFISK E JOTUN A OSEBERG D OSEBERG SØR TROLL C ÅSGARD A ÅSGARD B ÅSGARD C SNORRE B TAMBAR KVITEBJØRN RINGHORNE VALHALL FLANKE SØR VALHALL IP GRANE VALHALL FLANKE NORD EKOFISK M KRISTIN NAVION SAGA ALVHEIM FPSO VALHALL PH GJØA GUDRUN SKARV FPSO EKOFISK L EKOFISK Z VALEMON ELDFISK S PETROJARL KNARR Installation year, design life time, extended life time Installasjonsår Designlevetid Levetidforlengelse

7 GYDA VOLVE JOTUN samlet VARG samlet TRYM BRYNHILD VESLEFRIKK samlet BRAGE OSEBERG ØST DRAUGEN KNARR ULA samlet BALDER samlet SLEIPNER samlet NJORD samlet NORNE samlet GUDRUN HEIMDAL samlet GOLIAT EDVARD GRIEG VALEMON MARTIN LINGE OSEBERG SØR IVAR AASEN AVLHEIM samlet STATFJORD samlet GINA KROG ELDFISK SAMLET AASTA HANSTEEN SKARV GRANE samlet VALHALL samlet KVITEBJØRN GJØA samlet VISUND HEIDRUN SNORRE samlet OSEBERG feltsenter samlet GULLFAKS samlet KRISTIN samlet EKOFISK samlet ÅSGARD samlet ORMEN LANGE SNØHVIT TROLL samlet Remaining recoverable reserves fields in operation Million barrels o.e

8 Structures Working environmen Organisation Maintenance Old solutions Support structure Subsidence Wells

9 PSA Main Priority 2015 Safe Late Life Industry Early identification and follow up of HSE-challenges in late life for integration in overall field planning Surveillance of late life risk picture and implementation of necessary measures for risk reduction Ensure that late life challenges are managed and not turn into conflicts with prudent operation and regulatory requirements Ensure that late life organsations has resources and sufficient knowledge to manage actual challenges

10 PSA Supervision Principles of supervisory methodology Supervision is focused on the duty of the players to see to it that the regulations are observed. It is exercised in the form of system audits and verifications. Its scope and content depend on the PSA s overall experience, relevant activities, etc. Conclusions from supervision take the form of improvement points for the enterprise s management systems.

11 PSA Supervision Frame Regulation 7: The operator and others participating in the activities are responsible pursuant to these regulations. The responsible party shall ensure compliance with requirements stipulated in the health, safety and environment legislation. The operator shall see to it that everyone who carries out work on its behalf, either personally, through employees, contractors or subcontractors, complies with requirements stipulated in the health, safety and environment legislation. In addition to the duties imposed on licensees and owners of onshore facilities by individual provisions in these regulations, they are also responsible for seeing to it that the operator complies with the requirements stipulated in the health, safety and environment legislation..

12 Experience from Supervision Corrosion Under Isolation CUI «Hidden secret». Rapid development under the right conditions. Difficult to obtain an overview without costly removal of isolation Around 60 CUI related incidents in PSA database since Area with potential for improvement Improved evaluation before isolation New materials available New inspection technology available Best practice to be renewed and upgraded?

13 Experience from Supervision Emergency Shutdown Valves (ESDV) PSA audit of pipeline equipment in Zeebrugge and Dunkerque in Notification of order. Follow up of Gassco s work on testing of ESDVs in technical meetings Safety critical element High reliability needed We have seen significant improvement Today: Good performance But: No reason to relax

14 Experience from Supervision Pig launchers/receivers - Lack of maintenance? - Safety issue - Cost issue - Leads to unnecessary postponement of internal inspection Activity Regulation 50: On pipeline systems where fault modes may constitute an environmental or safety hazard, cf. Section 46, inspections shall be carried out to monitor potential fault modes that may affect the integrity of the pipeline system..

15 Experience from Supervision High risk activities - Simultaneous operations and modification - Need for high attention at all times - Strict requirements to management follow up - Shut downs and start up - HC leaks - Scaffolding - In general: potential for improvement - Dropped objects

16 Antall Experience from Supervision Dropped objects J J J > 1000 J Mangler energiklasse

17 Antall hendelser Experience from Supervision Incidents and accidents DFU23 bil/trnsp ulykke DFU22 utslipp st.syst DFU21 fall gjenstand DFU19 giftig utslipp DFU4 andre branner DFU2 antent lekkasje DFU1 uantent lekkasje

18 Experience from Supervision Incidents and accidents PSA investigations from 2009 and onwards (onshore facilities) 2014: Mongstad work accident november Hammerfest LNG gas leak 5. january 2012: Mongstad Rupture of hot water pipe 19. november 2010: Mongstad gas leak 12. september Mongstad gas leak 8. february 2009: Kollsnes Condensate leak 19. may Key element for learning: Involvement and Commitment

19 Improvement programs The PSA expects the industry to deal with its economic challenges without affecting safety, says director general Anne Myhrvold. On the contrary, cost cuts and efficiency enhancement processes must help to strengthen safe operation. (Dialogue May 2015) Gains We believe risk analyses and documentation are two areas where both safety and financial gains can be made, says Finn Carlsen, director of professional competence at the PSA. (Dialogue May 2015) Documentation project: Ongoing PSA project relevant for all players in the industry Management Regulation 23 Continuous improvement The responsible party shall continuously improve health, safety and the environment by identifying the processes, activities and products in need of improvement, and implementing necessary improvement measures. The measures shall be followed up and the effects evaluated.