Product Quality & OpsManaging the Offshore Fuel Supply Chain

Product Quality & OpsManaging the Offshore Fuel Supply Chain

Agenda (20 minutes)

1. Introduction to Aviation Fuel Quality Assurance

2. Supply Chain Risk Assessment

3. Standards in Commercial Aviation

4. Compare and Contrast: Offshore vs. Commercial

Aviation

5. UK NorthSea Supply Chain

Global Product Quality Assurance Objective

• All of the actions in the supply chain;

• All the steps in quality control

• All the measurements made in laboratories

• All of the documentation

These come together to ensure:

Aviation Fuel Meets the Specification

Aviation Fuel is Fit for Purpose

• At the point of delivery to aircraft.

• So where do we start?

The Commercial Aviation Fuel Business

Context

• How many commercial flights worldwide each day?

• So how many refuels?

• Add in smaller aircraft, general aviation, military, helicopters?

• What’s the probability of doing a task 250,000 times a day without a single error?

That’s the refuelling business.

Managing Supply Chains

Fuel Supply Chain Risk Assessment

Is there anything obvious in the supply

chain which could be a factor in a

major incident?

Business Continuity Risks

Non-conforming fuel has

been successfully

intercepted in the supply

chain but, because there is

only one supply route, the

airport has run out of fuel.

Attrition

Problems frequently

occur in the supply chain.

Historically problems

have been reported but

never fixed. Over time,

the problems have built

up, they are never

reported…the supply

chain is one final straw

away from breakdown.

Standards in Aviation Fuel

First and foremost – the fuel standard.

• Fuel shall meet the requirements of the

standard at the point of delivery.

How do we achieve that?

We use an operating standard

• JIG 1&2 for commercial aviation

• EI/JIG1530 for supply and distribution facilities

• JIG4 for smaller facilities

JIG 1 Into-Plane (Issue 12)JIG 1 Into-Plane (Issue 12)JIG 1 Into-Plane

(Issue 12)

JIG 2 Depots &

Hydrants (Issue

12)

Standards aren’t fuel proof

EI/JIG covers most aviation fuels and some

operations scenarios

• Standards are designed to exclude non-

conforming fuels

• Standards are not designed to give an

airport

a guaranteed easy fuel supply.

• Fuel handling comprises:

• Operations

• Maintenance

• Training

• Assessment

• Reporting

• Improvement

All Aviation Fuels

JIG

PQ Problems

Inspection

To verify the effectiveness of procedures in delivering on-spec fuel to

aircraft, a programme of inspections is in place.

• Inspectors and trained and approved to an industry accepted

standard a guaranteed easy fuel supply.

• Inspectors use a predefined checklist to accompany the inspection

• A consistent level of auditing is achieved with results and issues and

findings transferable across any other company using the same

standard.

• A database of inspection reports is maintained so airlines can access

information about possible destination facilities

• Process approved/endorsed by Airlines and IATA – so a JIG

inspection can serve multiple customers

• Learnings are published in industry bulletins

Offshore Fuel Supply Chain Compare and Contrast

Commercial Aviation vs Offshore Helidecks

Item Commercial Offshore

Operations standards JIG CAP / OPITO

Fuelling personnel Dedicated Part time

Type of company Huge multinational JVs Small independent

Operator refuels 10 planes a day 2 planes a month

Fuel risks Dirt, bugs, water Dirt, bugs, water

System design Huge multinational

approved

Independent

Maintenance In house Contracted

Fuel operations inspection Regimented Not sure

Assurance Part of the process Needs improvement?

What is the Offshore Supply Chain?

Grangemouth

Refinery Road

transport

supply to

Transit Tank

FacilityFuel

Supply

Terminal

Transit

Tank to

Offshore Offshore

fuel

installation

How much of this is covered by appropriate assurance?

Grangemouth

Refinery

Yes Audited

regularly by

Oil Company

customers to

latest industry

standards

Road

transport

YesAudited as

part of

supplies to

Northern

Commerci

al airports

Fuel Supply

Terminal

NoAudited by

helicopter

operators and

charterers but

not to the

same degree

as commercial

aviation.

Transit Tank

NoAudited by

helicopter

operators

and

charterers.

Offshore

NoAudited by

helicopter

operators and

charterers.

Audit Method

Supply chains are audited for compliance with regulations and safe fuel handling. A

modular questionnaire is used to check each stage of the supply chain. As far as

possible, all operations are witnessed.

Grangemouth Refinery

Road, rail & coaster

vessel supply of Jet A-

1 & Jet A-1 + AL48 to

Northern UK

Road transport

supply to

Transit Tank

Terminal

Fuel

Supply

Terminal

Transit

Tank to

Offshore

Offshore

fuel

installation

EI1530 EI 1530 / ADR EI/JIG 1530

Could be operated

as a small aviation

fuel supply and

distribution hub

JIG 4

Offshore refuelling

should operated as a

small general

aviation heliport.

EI/JIG 1530

Mobile containers

are included in

the standard

Which standards should apply to this infrastructure?

Grand Plan to Verify / Improve Offshore Supply Chain

1. Establish a consistent audit method based on experience from commercial aviation

2. Establish a pool of offshore-trained auditors

3. Establish a baseline of offshore capabilities to compare to similar onshore facilities

4. Establish a database of audit results

5. Identify trends and topics for improvement

6. Implement a process for action tracking and completion

7. Integrate this assurance process into existing O&G

8. Look for synergies with commercial aviation – maybe even join up at some point

There are no lay-bys in the sky

Air BP West Europe PQ Team

Sept 2016