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Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

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Page 1: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

Meeting the Environmental ChallengeAccelerate Oil& Gas – Rio de Janeiro, 16 May 2012

Tommy Bjornsen – Director of Operation, South America

Page 2: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved.2

DNV – Managing Risk Globally

DNV KEMA Energy &

Sustainability

DNV Maritime and Oil & Gas

DNV Business Assurance

Page 3: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 3

DNV’s core competence

identify assess manage

risk

Page 4: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 4

Addressing the new risk agenda

DNV helps develop, implement, maintain and continually improve best practices in safety and environmental management

A complete service offering:- Risk-Based Decision Support- Management Systems and Performance Measures- Environmental Models and Management- Emergency Planning and Accident Investigation- Advanced Simulation and Modelling- Human Factors and Safety Culture- Operations Safety

Page 5: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 5

Effective and robust safety and environmental management system

Ensure that exploration and production is done safely and in a sustainable manner

Assure all stakeholders that activities that pose a threat to life, environment and assets are properly controlled

How to prevent major accidents – “black swans”

How arrange a proper response capability for major environemntal spills

How to establish predictability for the industry

How to prevent unnecessary business interruption and disturbance

How to manage all relevant legislation

How to ….

Page 6: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 6

Current Regulation in Brazil Regulatory bodies for Safety and Environmental aspects:

- The National Agency of Petroleum, Natural Gas and Biofuels (ANP): 17 Management Practices

- Marine Authority ( the Coast and Ports Directorate, DPC): Maritime Authority Standards, NORMAM

- Ministry of Labour and Employment: regulations, codes of practice and guidelines

- Environmental licencing: CONAMA and IBAMA

It seems to be a continued need for better understanding of objectives and expectations and further the implementation of the regulations and criteria to be applied for developing and approval of safety and environmental studies.

Overall, it is a “learning process” that goes between the Regulators and the industry and it will take some time until all parties have the same understanding and the conditions are understood, implemented and well applied.

Some areas for improvement when comparing best practices

Page 7: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 7

Major accidents versus Occupational accidents

Occupational risk

Major accident risk

Personal safety management Process safety management

Page 8: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved.

Occupational Safety shows significant improvements

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Page 9: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved.

Macondo/Deepwater Horizon – “a one off ” case?

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Page 10: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 10

Historical major accidents and related improvements and learning's:

Alexander Kielland (1980) Structural redundancy

Piper Alpha (1988) “Offshore Safety Case”

Exxon Valdez (1989) Double hull

Scandinavian Star (1990) Corporate accountability for loss of life

Texas City (2005) Improved understanding of major accidentsOccupational safety ≠ Major accident safety

Deepwater Horizon (2010)Are we prepared for worst case accidents?

Herald of Free Enterprise (1987) Increased freeboard, initiation of ISM

Estonia (1994) Requirements in crowd and crisis management

Page 11: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved.

Need of improved quality in decisions at critical point

Importance of managing barriers and critical functions to prevent accidents and achieve corporate goals for safe and productive installations

Importance of organizing information to support decision makers

Importance of a visual, intuitive framework and “common language” for communication, consensus, and action across discipline and organization boundaries

Importance of providing practical guidance and training in challenging, high stress situations

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Page 12: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 12

Design vs Operations Phase Risk approaches Design stage – only a few specialists need to know

- They decide on risk reduction based on cost-risk benefit approach

- Complex risk approaches are necessary for some kinds of decisions

- Broad based decisions can be concluded with Risk Matrix

- Difficult decisions may require QRA (Quantitative Risk Analysis)

Operation stage – everyone involved need to know- What makes things safe- What is their role in maintaining the controls- Management and regulators need to be assured that the controls they

specified / agreed to are working

Page 13: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved.

Swiss Cheese Model – barrier methodology

Major Accident

Emergency responseE.g. escape, evacuation

MitigateE.g. drainage, fire protection

DetectE.g. fire & gas detection, control systems

Prevent E.g. design, maintenance, procedures, competence

HAZARD

Page 14: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved.

Barrier philosophy linked to the safety management system

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The Bow Tie risk model

• Implements the Swiss Cheese model• Clearly identifies barriers in accident pathways• Critical barriers can be identified• Barrier ownership is assigned• Barriers linked to management system – Operations,

Engineering, Maintenance etc.

Page 15: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 15

Summing up – how to meet the environmental challenge

Legislation and regulation is in place in Brazil. However, areas for improvement both regarding interpretation and implementation

Question mark whether we have sufficient focus on the operational safety and specifically the unexpected events potentially leading to environmental catastrophes

Barrier methodology and specifically the bow tie may be a tool to enhance and improve the safety and environmental performance

Page 16: Meeting the Environmental Challenge Accelerate Oil& Gas – Rio de Janeiro, 16 May 2012 Tommy Bjornsen – Director of Operation, South America

© Det Norske Veritas AS. All rights reserved. 16

Safeguarding life, property and the environment

www.dnv.com