Download - Operational Resilience in FLNG
Value without compromise.
A Framework for Business Continuity to Provide High Availability in Floating LNG Operations
Pete Winn and Alex Lal
Velrada
How does business continuity planning help
achieve a resilient operation?
What changes with FLNG?
Why should we care?
What should we do?
Today’s agenda
Established in 2009, Velrada is an award winning, Australian-owned,
business and technology consulting firm with strong experience in
resources around the Asia-Pacific region.
Pete and Alex have delivered Business Continuity Planning
engagements for a range of clients in the Oil & Gas, Mining,
Engineering and Construction industries, and the Public Sector.
Our consulting in this area draws on strong capabilities in:
Operational Efficiency
Integrated and Intelligent Operations
Risk Management
Organisational Change Management
Analytics and Optimisation of Processes
Supply chain and logistics optimisation
Online Collaboration and Information Management
Pete Winn
Intelligent Operations SME
Alex Lal
Business Continuity &
Disaster Recovery SME
By way of introduction
RISK MANAGEMENT
Emergency
Management
(EM)
Business
Continuity
Management
(BCM)
Health & Safety
(HSEC)
Disaster Recovery
(DR)
A heavy focus and highly
mature function engrained in
the culture of the organisation
A mature practice
throughout Oil and Gas
backed up by solid
historical evidence
Well developed and
delivered supported by
legislation and license
to operate
Often overlooked and draws
together a number of functions
throughout the businessProvision of highly available
systems and technology
mature in O&G
The role of business continuity in supporting resilient operation
63%of a business
functions have a recovery time of less than 24hrs.
(Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)
47%of organisations do
not know the cost of business disruptions in the last 12 months.(KPMG: global Business Continuity Management Program Benchmark Study)
Organisations do not have an up-to-date business continuity or disaster recovery plan (Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)
1 3in
2weeksMore than half of organisations believe their ‘worst case scenario’ outage to be 2 weeks or more.(Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)
Expectations vs. Reality
This is a new technology with a high degree of variability
and a limited knowledge base to support efficient operations.
With this in mind, can you still rely on identifying all the risks up front?
FLNG changes the game
Challenging cost
Environment Leading
to requirement for
constant offloading
in all conditions
New technologies that
aren’t understood in
new environments
Multiple concepts will
be realised leading
to a high variance in
operating vessels
Lack of support from
nearby onshore
facilities & supply base
ScenariosMitigation PlansRisks
Scenarios
Scenarios
Scenarios
Scenarios
Scenarios
What does this mean?
ScenariosMitigation PlansRisks
ScenariosMitigation PlansRisks
Recovery Strategies Planning
Framework
Level of
Preparedness
‘MITIGATE’
Possible
Recovery
Points
Effectiveness of Planning ‘REMEDIATE’
TIME
IMP
AC
T
Improvement
Normal
Deterioration
Getting it right
INCIDENT
A business continuity planning
framework shifts the focus from
reacting to specific known scenarios,
to planning based on what’s
important to the operation:
reducing recovery time.
Assess”Understand the scope of the operation and prioritise based on value chain analysis and maximum
acceptable outage”
Emergency
ResponseMedical
Business and Facilities Functions
OffloadStorageProcessingExtraction
Reliability &
Inspection
Control &
Operations
Supply &
Logistics
Marine
Operations
Production
PlanningSurveillance
Health and
SafetyContracting
Reservoir
Optimisation
Remote
AssistanceMaintenance Planning
Govern“Embed the framework define responsibilities, assign ownerships and embed in
your continuous improvement process”
Assess”Understand the scope of the
operation and prioritise based
on value chain analysis and
maximum acceptable outage”
Test”Check that the appropriate
strategies are in place and
understood throughout
the organisation”
Analyse”For each function map out the
critical human, information, physical,
system and process assets and their
interdependencies”
Plan”Identify and record recovery
strategies for a failure in each
asset competent of the
business function
CMS Outage
Another operator has suffered a
helicopter incident causing the
grounding of a significant
proportion of your fleet for safety
concerns, this has lead to a lack of
coverage for medical evacuation
and a shut down of operations. Helicopter
Vendor
Helicopter
Contract
Medical
Evacuation
Contract
Manager
Helicopter
Fleet
Fleet Share
Agreement
Contract
Analyst
No backup
process!
CMSPaper Copies
Detailed
Process
Instructions
Shared
Medivac
Manager ill!
No backup
fleet!
Single Vendor!
Fleet
grounded!
Little evidence of major incident planning. Processes are unclear or poorly
documented. Little or no understanding of which business processes or systems to
prioritise in the event of a major incident.Very Immature
Processes are defined and documented with some gaps, but are largely manual.
Information used to prioritise business processes or systems in the event of a major
incident is incomplete or not usedImmature
Processes are well defined but inconsistently applied. Monitoring tools in place but
not used proactively. Core business processes and systems can generally be
recovered within an acceptable timeframe.Somewhat Mature
Mostly resilient with some degree of process automation. System and infrastructure
monitoring tools in place and proactively used to anticipate/respond to BCDR
incidents.Mature
Highly resilient with a degree of process automation. Monitoring tools in
place and proactively used for future planning. Near-line BCDR capability
that is well-aligned to business operationsAdvanced
Realistic. Achievable. Build confidence early. Iterate. Buy in.
FLNG poses unique BC challenges.
The risks are substantial and have changed and
so should the planning in response to this.
Planning and preparation is key to reducing the
time to return to operations.
Framework approach leads to a quicker return to
normal operations.
Key takeaways
© 2014 Velrada Capital Pty Ltd.
All rights reserved.
The information contained herein is for
informational purposes only and
represents the current view of Velrada
Capital as at the date of the presentation.
Velrada Capital cannot guarantee the
accuracy of any information provided
after the date of this presentation.
Velrada Capital makes no warranties,
express, implied or statutory as to the
information in this presentation.
Thank you.
www.velrada.com
1300 835 723
@velrada
linkedin.com/company/velrada
Australia. New Zealand. Singapore.