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1 Confidential Process Safety Overview for the Rig 10 September 2015

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1

Confidential

Process Safety Overview

for the Rig

10 September 2015

2Confidential

• The industry’s focus on “Personal Safety” has saved

many lives and has improved the quality and safety of

operations.

• Past experience however has shown us that excellent

personal safety performance does not necessarily

guarantee a safe operation.

Introduction to Process Safety

Texas City Refinery

• Explosion in 2005, 15

fatalities and 180 injured

• On that day, personnel

received a safety award

for excellent safety

performance.

Macondo

• Fire and explosion in 2010,

11 fatalities and 16 injured

• On that day, senior

company personnel visited

the rig to present a safety

award.

We now understand better the need to focus on

both Personal and Process Safety

3Confidential

• Is process safety a new thing?

• Even though Process Safety may sound like a new thing,

through many of the processes in the an organization’s

management support the process safety concept.

– Identifying hazards

– Establishing barriers

– Managing them to ensure they work

– Reporting events so that we can learn from incidents

– Various inspections/audits focused on barriers/preventive

processes

Process Safety is Not A New Thing

General Identification and Preservation of Barriers

4Confidential

Personal vs Process Safety Events?

Personal vs Process

1982

Ocean Ranger,

Canada

84 fatalities, loss of

rig

1988

Piper Alpha, UK

167 fatalities, loss of

rig

2010

Macondo, USA

11 fatalities, loss of

rig, 120 million gallons

spilled

5Confidential

• Process safety is the management systems and

processes that focus on preventing catastrophic

operational events.

Process Safety vs. Personal Safety

Degraded barriers are indicators

Process Safety Personal Safety

Affects multiple people / entire rig Typically affects single person

Low frequency, higher

consequence

Typically higher frequency lesser

consequence

Indicators are first aid cases

Blow out, fire, collision, stability, etc.Slips, trips, falls, dropped objects,

etc.

Identifying barrier degradation early is

the key to preventing catastrophic

operational events.

6Confidential

Process Safety Event Type Definitions Based on the

IADC Safety Case Major Hazards Event Groups

Formation fluid influx (kick) and any event that triggers use of well control equipment or procedures.

Impact between the rig and a foreign object, including subsea infrastructure.

Loss of rig’s desired operating position, or loss of control of rig during a rig move.

Significant loss of structural integrity, load-carrying capacity, fracture (crack) or excessive deformation of critical structural components.

Inability of the rig to maintain desired trim, heel, and draft or remain afloat.

Combustion regardless of the presence of flame, includes smoking, scorching or evidence of.

Any pressure wave caused by the ignition of a flammable gas cloud.

Loss of rig’s systems resulting in a brown-out or blackout.

Failure of systems or assets that prevent, detect, control or mitigate catastrophic events and are defined in either Ensco guidelines or a rig-specific safety case.

Release of pressure or hazardous substances to the environment or to an area of secondary containment.

7Confidential

• Barriers, or safeguards, stop an incident from occurring,

or they control or reduce the impact of an event.

Preventing Process Safety Events

Hazards

Barriers are divided into 3 types:

– People – apply knowledge, skills

and abilities to perform jobs or

work tasks

– Plant – physical equipment or

assets

– Process - standards, procedures,

or work instructions

Training

Maintenance

Procedures

SSoW

EquipmentMoC

8Confidential

Incorporating Job Factors into the JSA

Process

9Confidential

Barrier Examples

Prevention Barriers Mitigation Barriers

10Confidential

Well Control Bowtie Example

Well Kick

Shallow Gas

Loss

Circulation

Gas Cut Mud

Blow Out

Personal Injury

Critical System

Damage

Environmental

Damage

Gas Release

Hydrocarbon

Influx

Prevention

Barriers

Mitigation

Barriers

Cause ConsequenceEvent

Hydrocarbon

flow from

pressurized

formation

Mu

d W

eig

ht

Cu

ttin

gs

Tri

p T

an

k

Kic

k D

rills

Ce

rtific

atio

n

An

nu

lar

Kill S

he

et

Div

erte

r

Tra

inin

g

C&

KM

an

Prevention and mitigation barriers are combinations of people, process and plant

11Confidential

Risk Rating The Process Safety Event

12Confidential

Monitoring:

Well Control Events of Different Severity

5- Catastrophic Incident

• Uncontrolled blowout that destroys the rig and results in fatalities

4- Major Incident

• Large uncontrolled flow of gas that requires full-abandon rig

3- Significant Incident

• Significant kick with large pit gain (> 25 bbls for floaters, >15 jackups)

2- Minor (Incident / Barrier Event)

• Minor kick with small pit gain (< 25 bbls jackups, < 15 bbls for jackups)

• Both BOP pods not working.

1- Slight (Barrier Event)

• Driller drilled 5 meters past section total depth due to a drill pipe tally error

• One of the BOP pods not working

13Confidential

PSE Event Severity Levels and

Associated Barriers

14Confidential

Roles & Responsibilities In

Understanding and Monitoring Barriers

15Confidential

Monitoring PSE’s Within The

Organization

16Confidential

Process Safety Framework Review

Risk AnalysisBarrier

IdentificationBarrier

ManagementMonitoring

Continual Improvement

Rig Self-Verification

Barrier Health

Policies,

Standards and Procedures (PSP)

Local Regulatory Requirements

Safety Case (Only if have an SC)

Ro

leF

re

qu

en

cy

Too

lO

ve

rsig

ht

Daily

Rig Manager periodically

Barrier

Specific

Checklist

Weekly

PSP based

Checklist

Yearly, if

applicable

Safety Case

based

checklist

Yearly, if

applicable

Document

based

checklist

OIM on routine basisRig Manager engaged during

activities

Barrier

AuthorityHOD OIM

Ops Manager periodically

17Confidential

Think beyond personal safety!

• Ask yourself:

– “What is the worst that can happen to me, my coworkers, to the rig or

environment?” when applying our SSoW

• Understand barriers you are responsible for;

– Ensure they are in place and healthy – remember the umbrella

– Have a sense of ‘chronic unease’ – identify weak signals

• Follow all standards, procedures, and work instructions 100/100

– Ensure your training, certification and CAP are current

• Use Stop Work Authority (SWA) if anything doesn’t appear to be

working as it should (look, listen, smell, and feel)

Individual’s Role In Process Safety

18Confidential

• Educate employees as to the need for working at a level of

“Chronic Unease” to avoid complacency

• Proactively recognize barrier degradation vs. only reacting to

barrier failures

• Spot flags as to a developing sense of complacency within the rig

team and act on this trend to restore chronic unease

• Support a culture that promotes raising alarms to verify potential

barrier degradation issues

• Encourage a sense of curiosity within the workforce for the

investigation of “out of the norm” flags

Shifting the Mindset of the Work Force

to Avoid Complacency

19Confidential

Shell’s “Chronic Unease” Video

View “Chronic Unease” Video

20Confidential