Safety and Health Management

www.wipro.com Safety and Health System in Oil and Gas Industry Neha Chauhan SAP EHS Consultant

Table of contents 03... 1. Introduction 03... 2. Industry Overview 04... 3. Hazards related to Oil and Gas Industry 04... 3.1 Safety and Injury Hazards 05... 3.2 Health and Illnesses Hazards 06... 4. Managing Occupational Safety and Health Risks 06... 4.1 Risk Process 07... 5. Occupational Safety and Health System (OSHMS) 07... 5.1 Features of OSHMS 08... 5.2 Components of an effective OSHMS 09... 5.3 Benefits of OSHMS 09... 6. Conclusion 09... References 10... About the Author 10... About Wipro s Energy, Natural Resources, Utilities and Engineering & Construction (ENU) Strategic Business Unit 10... About Wipro Ltd.

1. Introduction Safety and health management is one of the vital constituents of Oil and Gas industry activities because most of the operational conditions, chemicals and end products (hydrocarbons and other compounds) associated with Oil and Gas production are well-known to pose serious safety and health threats to the workers. 2. Industry Overview: Upstream Exploration and Production Midstream Transportation, Storage and Marketing Downstream Refining, Sales and Distribution Fig.1.Segments of Oil and Gas industry On 25 August 2012, an explosion caused by the ignition of a leaking gas at the Amuay oil refinery, which is part of the Paraguana Refinery Complex, killed 48 people; primarily National Guard troops stationed at the plant, and injured 151 others 1. The Deepwater Horizon drilling rig explosion refers to the April 20, 2010 explosion and subsequent fire on the Deepwater Horizon semisubmersible Mobile Offshore Drilling Unit (MODU) killed 11 workers and injured 16 others 2. The explosion caused the Deepwater Horizon to burn and sink, resulting in a massive offshore oil spill in the Gulf of Mexico, considered the largest accidental marine oil spill in the world, and the largest environmental disaster in U.S. history 2. According to the report developed by the NORA Oil and Gas Extraction Council; In the US, during 2003-2008, 648 oil and gas extraction workers were fatally injured on the job, resulting in an occupational fatality rate of 3

29.1 deaths per 100,000 workers eight times higher than the rate for all U.S. workers. Nearly half of all fatal events in the Oil and Gas extraction industry resulted from highway crashes (29%) and workers struck by objects and equipment (20%) 3. The above alarming incident data clearly emphasizes the need for an effective occupational safety and health management system that integrates safety and health concerns into a daily routine. People working in Oil and Gas industry are exposed to various risk factors. Hence continuous monitoring of their working conditions and well-being is essential. Health protocols and periodic medical checkup should be pre-defined and done for every worker depending on the job and work area type to identify possible deviations from the normal health and to confirm that necessary counteractive actions are taken in advance. This paper outlines the key safety and health hazards associated with the upstream, midstream and downstream segments of Oil and Gas industry, including the significance, features, components and benefits of an effective Occupational Safety and Health System (OSHMS) for the industry. 3. Hazards Related to Oil and Gas Industry Hazards in Oil and Gas industry can be divided into two broad categories: Safety and Injury Hazards Health and Illnesses Hazards 3.1 Safety and Injury Hazards Workers in Oil and Gas industry are generally susceptible to the following safety and injury hazards Safety and Injury Hazards Possible Causes Motor Vehicle Accident Often the roads leading to well sites lack firm shoulders and other safety features 4 Fatigue due to long driving distance and long working shifts Contact Injuries Workers being struck by, entangled, or crushed by tools, machinery or other objects Fire and Explosions Presence of highly combustible hydrocarbons Presence of oxygen/ignition source Slips, Trips and Falls Frequent need to work at elevations Uneven Surface Improper use or non-availability of fall protection systems Confined Space According to NIOSH, confined space refers to a space which by design has 5 : Limited opening for entry and exit Unfavorable natural ventilation Not designed for continuous employee occupancy Examples of confined places in Oil and Gas industry are storage tanks, pipelines, silos, etc. 4

3. 2 Health and Illnesses Hazards Workers in Oil and Gas industry are generally susceptible to following agents which lead to various health and Illnesses hazards: chemical hazards (toxic, corrosive, carcinogens, asphyxiates, irritant and sensitizing substances); physical hazards (noise, vibration, radiations, extreme temperature); biological hazards (virus, parasites, bacteria); ergonomic hazards (manual handling activities, repetitive motions, awkward postures); and psychosocial hazards (overwork, odd working hours, isolated sites, violence). The following table identifies the potential health effects from key processes in Oil and Gas industry: Segments Key Processes Agents Possible Health Effects Upstream Seismic Survey and evaluation Exploration and drilling Development and production Decommissioning Pathogenic microorganisms Infection transmitting vectors Drilling mud Petroleum products (Hydrocarbons) Radioactive sources Chemicals and additives Metals (Pb, Cd, Mn, etc.) Extreme temperatures Silica/Asbestos Noise/Vibration Mechanical Ergonomic Psychosocial Infectious and parasitic diseases (e.g., Hepatitis A, Cholera, Typhoid fever) Cumulative trauma disorders Chronic obstructive pulmonary disease Gastrointestinal disorders Dermal and eye issues Spinal disorders Neoplasms/Cancer Heat Stroke Stress Sleep deficits Noise induced hearing loss Drug and alcohol abuse Midstream Pipelines Transport and storage Marketing Petroleum products (Hydrocarbons) Dust from filing and scaling (from cleaning of pipes and tanks) Dermal and eye issues Pulmonary disorders Gastrointestinal disorders Neoplasms/Cancer Downstream Product Refining Petro chemicals Sales and Distribution Petroleum products (Hydrocarbons) Treatment chemicals Metals (Pb, Cd, Mn, etc.) Silica/Asbestos Dermal and eye issues Gastrointestinal disorders Neoplasms/Cancer Noise induced hearing loss Solvents Noise/Vibration 5

4. Managing Occupational Safety and Health Risks The aim of occupational safety and health risk management is to identify and assess safety and health hazards existing at the workplace and to define appropriate control and retrieval steps. Business processes in Oil and Gas industry are very complex. Hence it is essential that a systematized approach should be used for managing occupational safety and health hazards. Its solution model can be based on the PDCA Cycle: Plan Strategic HSSE Roadmap Work Flows Objectives and Targets Key Priorities Risk & Injury Health & Illness Training & Assessment Regulatory Compliance Do Act Review Actions for Continuous Improvements Monitoring Modeling Trends Performance Indicators Audits Check 4.1. Risk Process As stated earlier, risk management is crucial for preventing work related injury and illness. It includes: Identifying the risks Evaluating and prioritizing the risks Implementing preventive/protective measures to control the risk There are a number of circumstances in the Oil and Gas industry where a proper risk management process is essential. For example: Job safety analysis: It is a process of systematically evaluating certain jobs, tasks, processes or procedures and eliminating or reducing the risks or hazards to As Low As Reasonably Practical (ALARP) in order to protect workers from injury or illness 6 Workplace inspections and audits Change management - identification of new hazards, introduction of new equipment/process, or regulatory needs 6

Generally Risk Process in the Oil and Gas Industry Involves the Following Key Steps: Identify persons taking part in the risk management process Gather health and safety information pertinent to Oil and Gas Industry Define strategy and workflows as per the business/legal requirements PLANNING Evaluate the risk arising from each identified hazard Identify existing precautionary measures and what went wrong Determine what kind of injury or ill health might occur Rank the risks on the basis of severity RISK ASSESSMENT RISK IDENTIFICATION Identify possible safety and health hazards within workplace through work area inspections, previous accident/ ill-health records, etc. RISK RECORDING Define and Implement preventive measures to eliminate or minimize the risk of an incident/accident RISK CONTROL Record the findings of risk assessment for defining control measures, audit, internal review, regulatory purposes Regular review and updating of risk assessment FOLLOW ON ASSESSMENT MONITOR AND REVIEW Ensure that implemented control measures are being used and are effective Reassess the efficiency of preventive/control measures 5. Occupational Safety and Health System (OSHMS) The insinuation of implementing an occupational Safety and Health System at all workplaces came into limelight, when Global Strategy on Occupational Safety and Health: Conclusions were adopted by the International Labour Conference at its 91st session, 2003. The Strategy advocates the application of a systems approach to the management of national OSH systems 7. Also, Guidelines on Occupational Safety and Health Systems (ILO-OSH 2001) provide national/organizational framework for occupational Safety and Health Systems 8. As per these guidelines, the OSH management system should contain the main elements of policy, organizing, planning and implementation, evaluation and action for improvement 8. 5.1 Key Features that Should be Fulfilled by an Efficient Safety and Health System are as Follows It should ensure safety of different operational sites by correctly mapping the business processes, risks, and controls involved in all the three segments (upstream, midstream and downstream) of Oil and Gas industry It should help in managing site inspections, permits, violations, lessons learned and best practices execution for Oil and Gas sector It must be well documented (strategies and action plans) and should be easily understood and readily available to all the workers It should enable workers to follow consistent health and safety practices 7

5.2 Components of an Effective Occupational Safety and Health System Occupational Safety and Health System is one of the critical factors whose successful execution confirms operational safety in Following key components should be encompassed in an active occupational Safety and Health System: upstream, midstream and downstream segments of Oil and Gas industry. Sl. No 1 OSHMS Components Health and Safety Plan 2 Administration 3 Work Area Requirements Oil and Gas Company s vision and approach towards Health and Safety Organizational hierarchy Key details of persons responsible for managing health and safety plans Proper demarcation and management of workplace according to processes, activities, design, etc. Worksite inspections Implementation of best practices and lessons learned from the past experiences at workplace Set of systems and processes for managing Health & Safety risks 9 10 11 12 Occupational Health of Change Emergency Response Plan Compliance Health protocols Medical appointments Injury/Illness management Drug, alcohol and other medical testing Identification of new hazards Introduction of new equipment Process change New regulatory requirements Disaster management/emergency response plan for all the potential predicaments based on predictive risk analysis Alarm system Comply with the obligations under pertinent local/national/global H&S regulations 4 H&S Risk Job Hazard analysis Hazard ranking/risk matrix Corrective action plans 13 Competency Track capabilities/skills of workforce Trainings for employees, contractors and visitors Risk control levels analysis Assessments 5 Inventory Maintenance of hazardous substance database 14 Content of SOP, SDS, Health and safety documents 6 7 Task and Workflow H&S Maintenance Systems Calendar management Role assignments - Involving and informing workers, safety officers and others about their roles and responsibilities, allocated tasks, etc. Automated notifications Performance and monitoring of H&S activities and corrective action as needed 15 16 17 Contractor Rehabilitation Statistics, Reporting and Dashboard Managing and coordinating activities of contractors Tracks number of compensation days, rehabilitation information of workers Relevant report generation from health and safety data Interactive dashboards for higher management view and decision making 8 Incident Recording, processing, investigation, reporting and root cause analysis of any reported incident/accident/near miss/safety observations 18 Audit and Review Audit and review programs to check and improve the effectiveness of implemented Safety and Health System 8

5.3 Benefits of Occupational Safety and Health System It enables Oil and Gas industry in performing hazard identification, risk assessment and implementing various control methods It ensures well-being of all the employees and thus contributes to a more inspired, and performance driven workforce Regular risk assessment process helps in frequent tracking and monitoring of health and safety indicators (both leading and lagging). Reduced costs associated with accidents and incidents Improved regulatory compliance Implementation of OSH management system gives competitive edge and improves relationships between stakeholders, such as clients, contractors, subcontractors, consultants, suppliers, employees and unions 6. Conclusion Given the perilous nature of the Oil and Gas industry, the need for implementation of an efficient occupational Safety and Health System is important for improving safety and health performance. Many countries have extensively participated in it by making strict and obligatory OSH standards and legislations. For example, on 10th June 2013, the EU adopted a Directive on safety of offshore oil References 1. http://en.wikipedia.org/wiki/paraguan%c3%a1_refinery_complex 2. http://en.wikipedia.org/wiki/deepwater_horizon_explosion 3. Draft National Oil and Gas Extraction Agenda - August 2010: For Occupational Safety and Health Research and Practice in the U.S. Oil and Gas Extraction Industry - Developed by the NORA Oil and Gas Extraction Council (http://www.cdc.gov/niosh/nora/comment/agendas/oilgas/) 4. http://www.cdc.gov/niosh/programs/oilgas/projects.html 5. http://www.cdc.gov/niosh/topics/confinedspace/ 6. http://en.wikipedia.org/wiki/job_safety_analysis 7. GLOBAL STRATEGY ON OCCUPATIONAL SAFETY AND HEALTH: Conclusions adopted by the International Labour Conference at its 91st Session, 2003 http://www.ilo.org/wcmsp5/groups/public/@ed_protect/@protrav/@ safework/documents/policy/wcms_107535.pdf 8. Guidelines on occupational safety and health management systems (ILO-OSH 2001) http://www.ilo.org/public/english/region/afpro/cairo/downloads/ wcms_107727.pdf 9. http://ec.europa.eu/energy/oil/offshore/standards_en.htm and gas operations 9. The new directive sets clear rules that cover the whole lifecycle of all exploration and production activities from design to the final removal of an oil or gas installation 9. Because of the regulatory compliance pressure, the principal responsibility of ensuring operational safety and sustainability is placed on the Oil and Gas industry. OSHMS not only provides a systematic and synchronized proactive approach to managing occupational health and safety risks, but also helps in defining strategies for implementing control actions, performance substantiation, resource mapping and competency management. Moreover it also helps in enhancing organization s brand image in today s competitive scenario. 9

About the Author Neha Chauhan is a SAP EHS Consultant in the HSSE Practice of Energy and Utilities Vertical at Wipro Technologies. She has around five years of industrial and research experience, with a specialization in Environment Health and Safety, Regulatory Compliance and Toxicological Risk Assessments. She has given Solution Consulting to various Chemical and Oil and Gas companies for their Health & Safety and Compliance Requirements. About Wipro s Energy, Natural Resources, Utilities and Engineering & Construction (ENU) Strategic Business Unit Businesses across the globe, over the last decade, have established us as a trusted partner to address their business challenges using our deep industry domain competency and technology expertise. We have over 6600 dedicated consultants serving businesses in the oil & gas, mining, water, natural gas, electricity, engineering and construction industries. Having a strong relationship with over 40 large customers spread across Americas, Europe, India, Middle East, Southeast Asia, Australia and New Zealand, the ENU SBU has been continuously investing in building competencies to help our customers do business better. In 2011, Wipro acquired SAIC s Global Oil and Gas business unit, reinforcing its focus on this industry. We understand your business, to help you do business better. About Wipro Ltd. Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company that delivers solutions, to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of Business through Technology - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner s approach to delivering innovation and an organization wide commitment to sustainability, Wipro has a workforce of 140,000 serving clients across 57 countries. 10

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