Facility Integrity National Programme

Findings from Reported Incidents and Planned Inspections

February 2008

2

Purpose

• Thank you for joining with us to share key lessons learned from NOPSA’s Facility Integrity National Programme and industry’s facility integrity management

3

What have we been doing?

Data obtained from:– NOPSA’s Planned Inspections using

prompt sheets that reflect NOPSA’s elements of Facility Integrity

– Accidents and dangerous occurrences reporting under the OHS legislation

4

How do we share results?

• Presentations that provide detailed information on both sets of findings are available on the NOPSA website at:

http://www.nopsa.gov.au/programmes/

5

Inspection: what we found

• Safety management system areas of improvement:

– Management of change and deferrals– Backlog, maintenance and testing of safety

critical elements– Performance standards for SCEs – Monitoring, independent auditing and review

6

Good practices from FI inspection

- Overall maintenance/integrity management systems

- Management reporting of performance indicators

- Company staff competency- Onshore/offshore communications- Supervision

7

Planned Inspections Prompt sheet & Traffic Light Scoring System

FACILITY INTEGRITYFACILITY INTEGRITY MANAGEMENT SYSTEM

ONSHORE INTERVIEWS

OPERATOR: …………………………………… INSPECTION DATE(S): …………………………………… FACILITY(S): …………………………………… No Prompt Guide Notes Comments /Status

1 Policy and strategic objectives for Facility integrity Tick one (√)

2 Planning, Responsibility and Authority Tick one (√)

3 Training and Competency Tick one (√)

4 Deviation/deferrals, monitoring and records Tick one (√)

5 Audit and review Tick one (√)

Legend: - complies - partially complies (incomplete system) - non compliance (major failing or - Not Tested /

Key elements missing) No Evidence INSPECTION CARRIED OUT BY (Please send the completed prompt sheets to T3 EA) Name: Signature:...................................................................

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Planned Inspections Progress

• 12 production operators • 8 topic areas:

e.g. maintenance system, corrosion, pressure integrity

• 56 sheets completed• 40% complete

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Planned Inspections Expectation Levels - Proportion facilities at each level

Partially meets 45%

Meets 42%

Does not meet 13%

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Specific example of integrity management

FI Management ONSHORE % Scores - All Facilities

0

20

40

60

80

100Policy & Strategic Objectives

Planning Responsibility &Authority

Training & CompetencyDeviation/DeferralsMonitoring & Records

Audit & Review

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HC Releases – Overall TrendAnnual Total HCT Releases and Rolling Trend

Q1Q1

Q2

Q2

Q2

Q3

Q3Q4

Q4Q3

Q436

26

19

0

5

10

15

20

25

30

35

40

2005 2006 2007

Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407

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HC Releases by Material Type

Petroleum Liquid17%

HC Gas 73%

Production Water10%

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HC Releases by Production Operators - Incidents per Facility

Actual (HCT) and Potential (PHCT) Releases for each Operator per Facility Jan 2005 - Dec 2007 : Operators - Anonymously Coded

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

B L K E C H J G F A D I

Num

ber o

f Rel

ease

s pe

r Fac

ility

PHCT Releases per FacilityHCT Releases per Facility

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HC Releases Causes (Tap Root®)

Training6%

Natural Phenomenon

1%Repeat Failures

6%

Tolerable Failure

3% Maintenance15% Equipment /

Parts Defects18%

Design12%

Work Direction 3%

Human Engineering

3%Management

Systems9%

Communications3%Quality

Control7%

Procedures14%

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Areas of concern Hydrocarbon releases

• Equipment/parts defects

• Non-adherence to procedures

• Inadequate maintenance and testing of safety critical elements (SCEs)

• Unclear performance standards for SCEs

16

HCT Releases Parts/Equipment Involved

0.0

5.0

10.0

15.0

20.0

25.0

Pipe

s

Valv

es

Pum

ps

Join

ts

Gas

kets

Engi

nes

Inst

rum

ents

Hyd

raul

ics

Uns

peci

fied

Mis

c.

% of Incidents

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International Regulators Forum Asset Integrity Conference 2007

• Leadership commitments to safe and reliable operations

• Monitor and respond to leading indicators to meet defined performance standards

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International Regulators Forum Asset Integrity Conference 2007

• Maintaining multiple independent prevention and mitigation barriers

• Self audits not adequate, need independent audits and corrective actions

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International Regulators Forum

• Management and control of deferrals and modifications

• Regular review of near misses

• Workforce participation provides insight into process vulnerabilities.

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What’s next?

• FI programme through to mid 2009

• Post inspection and Accident & Dangerous Occurrence analysis on the website

• Encourage industry to share good FI practices for continuous improvement

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What else could be done?

• Industry website to share good practices

• Common leading indicators in process safety and facility integrity

• Training for Senior Leadership on integrity and major accident events

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We are not alone

“But the most important lesson from Norway’s 40 years of petroleum operations is that structures and equipment do not always last as long as expected – even with detailed and systematic inspection and maintenance.”

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BP Texas City – US CSB CEO

“All industrial managers need to treat safety and major accident prevention with the same degree of seriousness and rigor that is brought to financial transactions.”