Improving Performance: Beyond Compliance Derrick O’Keeffe Head of Division, Safety and Integrity Society of Petroleum Engineers meeting Perth 13 December 2017
Our Vision Safe and environmentally responsible Australian offshore petroleum and greenhouse gas storage industry 2
What We Regulate Safety Facilities Wells Integrity Environment Activities 3
Safe Operations Production, Accommodation, Drilling, Pipelay, Construction, Decommissioning Vessels & Structures 4
Australia LNG Exports: What Downturn? 80 70 World Class 60 Million tonnes 50 40 30 20 10 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Source: Department of Industry, Innovation & Science (2017) 5
Global LNG Export Capacity 100 90 80 70 Million tonnes 60 50 40 30 20 10 0 Middle East Africa South East Asia Rest of the world Australia North America Existing capacity 2016 Additional capacity by 2019 Source: Department of Industry, Innovation & Science (2017) 6
Behavioural Change • Industry – Belief that good business means safety & environment – Buy-in throughout organisation & industry – Aspire to “World Class” • NOPSEMA – Belief that “step change” is not just possible, but achievable, likely and can occur faster – Whole organisation working together – Use of all “tools” to get there. Use of data. 7
Performance improvement framework World Class High Increasing performance Leveraging: Global Stds Big Data International IRF Standards Goal setting and Regulators National Stds Minimal low Prescription Local National International Global Information reach 8
Communicating Our Perspectives Monitor and secure compliance Assess permissioning Promote Promote documents Inspections Advise Advise Permissioning Incident document investigations commitments Knowledge Enforcement 9
Pathways to Improvement…. Stopping Find one, Respond to old incidents fix many evolving trends Analyse databank of previous Prevent future events through Address transparency expectations incidents and HiPos to test for risk to examination and sharing learnings Remove unnecessary regulatory ALARP in assessments and inspections; from current non-compliances, burden to improve efficiency incidents and best practices Effective audits Looking elsewhere for better Enhance existing good practice practices and tools to apply now Prevent major Prevent loss of Effective incident Oil spill accident events: loss well control response & spill preparedness of life, containment source control arrangements 10
Old Accident: Failed Instrument Line Incident Investigation & identifies issues Enforcement (Single operator across 12 facilities) Safety Alert; International Linkages 11
Old Accident: Near-Electrocution Incident Investigation identifies issues Enforcement Safety Alert, CEO Meetings The Regulator 12
Find One, Fix Many: Test Equipment Inspection identifies 3rd Party provider significant issue across multiple duty-holders Enforcement CEO Meetings 13
Future: Prevent DP Incidents Incident Investigation & identifies issues Recommendations (Operator & Manufacturer) Safety Alert/ International Attention 14
Isolated Incident? US CG: Incident High Likelihood UK HSE: Incident Low 15
Big Data Opportunity? 2005: “Two pushes of the stand-by button took place within the allowed 4 seconds through a clipboard being put on the DP console” Data 2009: “Main Cause Human error – Placing of logbook on surge searching Preliminary switch” and data sharing 2013: “a clipboard was placed on the DP desk which resulted in the fore/aft surge button being inadvertently pressed” 2013: “ DPO inadvertently pressed the joystick button with the logbook he was reading from” 2014: “Initiating Event: Auto DP was deselected when the rough DP logbook was placed on the DP control desk” Source: IMCA Database 16
Review “risk ALARP” • Promotion & advice Recent • Risk awareness: steps • “Weak signals” • Big data? • Practicable solutions • Planned inspections • Industry actions, e.g: • MTS 2017 Key Note • Shell – Rule 28 • IMCA Station Keeping Event Report 17
Seeking Manufacturer Input 18
International Context • Ongoing regulator liaison (US CG & UK HSE) • IRF Annual Meeting October 2017 • Communique: • Importance of data • Continued focus • Letter to manufacturers 19
Future: LWI Incidents Incident Investigation & identifies issues Recommendations (Operator & Manufacturer) Safety Alert/ International Search 20
Influencing Industry Action…. World Class High Increasing performance Future Trends Leveraging: Communications Find One; Global Stds? Big Data? Stop Old Fix Many Industry Accidents Associations? low Local National International Global Information reach 21
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Improving Performance: Beyond Compliance Derrick O’Keeffe Head of Division, Safety and Integrity Society of Petroleum Engineers meeting Perth 13 December 2017
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