IOGP 423 revision update

IAGC / IOGP Joint HSE & Security ForumHouston, 19th April, 2016

Status of IOGP 423 Version 3.0

• Currently with IOGP secretariat for final review and edits

• Will go to IOGP Safety Committee around end of April. Three week period for review.

• Published pdf should be available sometime in July

Developing a Communications Plan

• Decision made by IOGP to develop a communications plan for roll out of Version 3.0

• E-Poster at SPE HSE International Conference in Stavanger (slides to follow describing highlights)

• Written paper will be published in one of the Energy Institute’s magazines (will reach outside just oil and gas)

• Press release being developed and will be circulated to industry journals when document finally published

• Other publication opportunities being developed

Driving efficiencies in oil & gas through a risk based and systematic approach to contractor

HSE managementIOGP 423 (Version 3.0)

John Blackhall, BP; Lisette Iversen, Statoil; Ian Threadgold, SPE, Threadgold Safety Management; Piet Van Dam, Shell & Scott Bergeron, Kosmos Energy

Content of talk

Slide 5

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

• Background

• Changes

• Supplemental tools

• Benefits

• Acknowledgements

Background

• HSE management - guidelines for working together in a contract environment (IOGP Report 423, June 2010)

• First issued in September 1999 (Report 6.64/291)

• An eight phase contracting process:

Phase 1 - Planning Phase 2 - Sourcing / Capability assessment Phase 3 - Tender and award Phase 4 - Pre-mobilization Phase 5 - Mobilization Phase 6 - Execution Phase 7 - De-mobilization Phase 8 - Evaluation and close-out

Slide 6

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

Client Contractor

Scope of work / context & risk assessment

Capability assessment

Contracting mode

Create tender list

3 - Tender and awardBid documentation

preparation & development of evaluation criteria

Contractor submits bid, including draft key HSE

documentation

Award contractHSE Plan including remedial

actions as agreed

4 - Pre-mobilisation

Development of monitoring plan (modes 1 & 2)

Preparation & selection of subcontractors

5 - Mobilisation

HSE field review or audit Mobilisation including subcontractors

6 - Execution

Deliver monitoring plan (modes 1 & 2) & performance

reporting

Deliver HSE including verification plan &

performance reporting

Monitoring, audits and reporting on subcontractors

activities

7 - De-mobilisation

Acceptance of work and restored site

De-mobilisation, including subcontractors

8 - Final evaluation & close-out

Final evaluation and close-out report

Final evaluation and close-out report

DATA BASE of Suppliers

Review

Joint responsibility for for continuous improvement

Communication of HSE plan - commence orientation & site-specific training

Establish HSE evaluation criteria and capability assessment protocol

Contractors responds to HSE capability assessment

questionnaire and if requested HSE audits

Ensures subcontractors aligned with HSE

requirements

Phases of the contracting process

Post award planning, including completion of HSE plan including verification plan and bridging documentation if applicable

Joint Client / Contractor activities

Review of de-mobilisation aspects of HSE plan / Reassess de-mobilisation risks

DATA BASE of Suppliers Historical record Prior registration New contractors

Bid documents evaluation and clarification

1 - Planning

2 - Sourcing / capability assessment

Changes to IOGP 423

Slide 7

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

Changes include alignment to IOGP 510 & 511 - Operating Management System Four key Fundamentals Ten Elements Integrating risk management (Health, Safety, Security,

Environment & Social Responsibility, represented by “HSE”)

Other changes – more emphasis on . . .

• Risk based aspects of the contracting process throughout all 8 phases

• Defining assurance mechanisms or risk mitigating actions for each phase

• Contractor verifying that risk controls and barriers are being effectively managed, along with monitoring by the client

Slide 8

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

A B C D E

People Assets Environment Reputation Never heard of in the industry

Heard of in the industry

Incident has occurred in

similar operations

Happens several times a year in similar

operations

Happens several times a month in similar

operations

0No health

effect/injury/illness

No damage No effect No impact

1Slight health effect/injury/

ilnessSlight damage Slight effect Slight impact

2Minor health effect/injury/

ilnessMinor damage Minor effect Limited impact

3Major health effect/injury/

illnessLocal damage Local effect

Considerable impact

4 Single fatality Major damage Major effect National impact

5 Multiple fatalitiesExtensive damage Massive effect

International impact

No action requiredControl at workplace level and manage for continuous improvementRequires constant management attention and incorporation of risk reduction measuresVery substantial risk reduction measures and seriously consider alternatives

MEDIUMHIGH

Consequence Increasing Probability

Risk classification and management responseINSIGNIFICANT

LOW

Sev

erity

More emphasis on . . . continued

• Client and contractor working together in a collaborative way

• Contractor using the same process for managing subcontractors

• HSE responsibilities for key client and contractor roles

• Address management system gaps through interfacing and bridging

Slide 9

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

Supplemental reports/tools

• IOGP 423-01; Contractor HSE capability assessment & scoring system;

• IOGP 423-02; HSE plan guidance and checklist;

• IOGP 423-03; HSE bridging document guidance and template.

Slide 10

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

Benefits to using . . .

• Consistent and standardized approach to HSE management in a contract environment includes:• HSE ‘risk’ focus;• assurance mechanisms or risk mitigating actions all through the contract life

cycle;• systematic verification and monitoring of barrier / control effectiveness;• clients and contractors working in a more aligned manner.

• This aligned, standardised and systematic approach should result in:• the reduction of HSE related incidents;• greater retained value in the oil and gas industry;• less incurred costs for clients and contractors.

Slide 11

Driving efficiencies in ‘Oil & Gas’ through a risk based and systematic approach to contractor HSE management • Ian Threadgold

Acknowledgements

The IOGP Safety Committee is acknowledged for sponsoring development of this important industry guidance document revision.

The IOGP 423 Revision Task Force members are acknowledged for all their time and efforts that resulted in this revision, as well as the

companies who provided them the time to participate.

Slide 12

Thank You / Questions

Slide 13

For more information please contact:

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