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Risk Management & HSE Culture Disposal of Ekofisk 2/4S 23.10.2014 VP Decommissioning Eirill Hatlevik

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Risk

Management &

HSE Culture

Disposal of

Ekofisk 2/4S

23.10.2014 VP Decommissioning Eirill Hatlevik

© Kvaerner 2013

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23.10.2014

Kvaerner - Four business areas

2

2 800 employees in 9 countries

Revenues of NOK 12.9 billion in 2013 (2.2 billion USD)

Order backlog of NOK 21.5 billion (per Q2 2014) (3.5 billion USD)

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23.10.2014 3

Kvaerner at Stord

Kvaerner at Stord

1650 employees

850 blue collars

800 white collars

Core Businesses

Module and platform assembly

Onshore plant installation

Completion/Hook-up

Decommissioning

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23.10.2014

Kvaerner’s Disposal Site - Stord

4

19 years decommissioning experience incl. both inshore and onshore operations.

Excellent infrastructure, access to skilled operators, equipment and facilities.

Long shoreline, large tower crane and solid pad areas. New water-treatment systems.

Deepwater quay - water depth

15,3 – 30m min datum LAT.

Atshore/Inshore decom sites for

jackets.

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Preparation

Decommissionig value chain

5

Inshore

deconstruction and

load-in

Plugging and abandonment

of wells

Offshore removal and transport

Onshore deconstruction and disposal

Shutdown & cleaning

of process systems

Mapping and

removal/ sealing of

hazardous materials

Hook-down to

prepare for removal

Plugging and

abandonment (P&A)

of wells

Make safe

Remove hazardous

materials and

equipment for sale

Deconstruction &

segregation of

materials

Disposal – Reuse and

recycling maximised

using best practical

environmental option

principle

Preparation and

removal of jackets,

topside and subsea

structures

Involves lifting of

structures by heavy

lifting vessels

Studies

Removal and

disposal studies

Mapping of

hazardous materials

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23.10.2014

HSSE is our keystone Just Care™

6

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23.10.2014

HSE Awareness

7

27/10/2014

© Kvaerner 2011

«To make decisions and take actions to

protect yourselves, your co-workers and

the environment from incidents and

accidents, and to prevent hazardous

situations.”

HSSE policy

Safety rules «Just Rules»

HSE Tools

Kværner Stords HSE handbook

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23.10.2014

HSE Tools

8

27/10/2014

© Kvaerner 2011

Just Rules

Tool box talk

HSE-inspections

Risk assessments incl. SJA

RUI – Please report all issues, positive or

negative

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23.10.2014

Ongoing HSSE initiatives in three dimensions

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Initatives Structure Competence Culture

Just Rules

Care Talk

Reporting, Risk Observations

KPI

Standardisation

Risk assessments

5S vs HSSE inspections

Lessons Learned/ Best Practise

Investigation

HSSE leadership training

Human Factors

E-learning

Familarisation

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23.10.2014

2000 – YTD: SIF, LTIF og TRIF

10

0

5000000

10000000

15000000

20000000

25000000

0

5

10

15

20

25

30

35

40

45

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014ytd

Total worked man-hours

LTIF

TRIF

SIF

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23.10.2014

Disposal of Ekofisk 2/4S

11

The Ekofisk 2/4S jacket and tripod were delivered to the disposal site by Saipem’s

S7000 during summer season 2014.

The tripod and the upper part of the jacket were placed on the quayside, while the lower

jacket part is parked just outside our quay at a prepared area. Total weight approx.

10.000 tonnes. In addition a 650 tonne lifting frame followed.

Materials: steel, anodes, wood (launch runners) and some marine growth

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23.10.2014

Ekofisk 2/4S – at Stord

12

27/10/2014

© Kvaerner 2014

-30m atshore location

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23.10.2014

Jacket Deconstruction Work – Main Risks

13

Falling objects

Working in height

Structural members under stress

Crushing hazards

Flame cutting

Diving

Work at quayside or above sea

Simultaneous work

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23.10.2014

Experience Frigg QP jacket

14

Why did it go well?

Small team on the job. Low turnover, personnel cared for each other and took responsibility for overall safety and for performance.

Good communication among the operators, with the supervisor and the site engineer. Hands on management.

Focus on safety all the way. Many lifts and manual cutting, working in height, in basket above sea and diving.

– Planning the cutting and lifting - engineering and production in close cooperation to identify how cuts can be done, how to rig and identify safe working positions.

– Simultaneous operations – avoid exposing others to risk due to work at different level or disturbance

– Constant focus on falling objects. Repeated campaigns to check for and remove items that are or can become loose. Always check area above before work on lower lever starts.

Focus on visibility of personnel on site. Reflexes, visible protective equipment to ease job for crane driver and banksman.

Jacket deconstruction carried out safely.

No injuries or serious incidents.

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Risk Reduction

15

Methods developed based on ALARP principle.

Fence off structures after load-in

Secure structures to reduce risk of falling objects by: Remove loose items resting on the bracing

Secure any stillage following the structures

Remove anodes which may represent a risk

Re-check structure – there might be loose objects hidden by marine growth

Reducing work in height. Toppling of tall structures reduces need for working

from baskets and reduces risk for dropped objects.

Most of the work is brought to ground – giving more ergonomic working

positions.

Plan the cuts above and below sea with focus on safe working positions

Minimising risks for the personnel actually doing the work and for personnel

working in the nearby areas.

VIDEO

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23.10.2014

Deconstruction – Jacket Lower Part

16

27/10/2014

© Kvaerner 2014

K10000 crane - used for some lifts and for

holding basket

Lampson crane – instead of lifting vessel

Method involves less cutting and lifting,

gives more flexible schedule and less

weather risk

©

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Deconstruction using Lampson Crane LT1500

17

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Special focus areas for Ekofisk 2/4S

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27/10/2014

© Kvaerner 2011

The following areas are highlighted

Work over sea, at quay or at vessels/barges

– Use of life jacket for work at quay, barges etc. Have rescue equipment available

– Never work alone

– Secure adequate lightning and safe access

The work will involve much rigging, and handling of heavy shackles, lifting

arrangements etc. Be aware of possible heavy personal lifts, squeezes, tension in

wire, ergonometric etc.

Work in height, use safety harness / arrangements

Avoid falling objects - secure tools and all loose objects, inspect area above

workplace.

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Keep working area tidy

Reduces risk, increase overall efficiency and is important for the culture

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27/10/2014

© Kvaerner 2011

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23.10.2014

Isocyanates

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Fresh air mask protect against

toxic gas

If personnel for some reason have

to take off the mask, go away from

the working area or ensure the gas

burning is stopped until everybody

is protected.

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Summary Just Care™

HSSE core value

All incidents can be prevented

Zero harm to people and the

environment

Personal responsibility

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Just Care™ Just Care™

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23.10.2014

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.

Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable

acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to

differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the

regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and

projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual

results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets

for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange

rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based

upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is

making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,

officers or employees will have any liability to you or any other persons resulting from your use.

Copyright and disclaimer

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.

Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable

acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to

differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the

regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and

projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual

results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets

for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange

rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based

upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is

making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,

officers or employees will have any liability to you or any other persons resulting from your use.

Copyright and disclaimer

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