Health
Healthand
andSafety
Safety
Executive
Executive
“2 years after Macondo: A
Review of the Offshore Industry
and its Regulators”
IOSH Offshore Branch 12 March 2012
Steve Walker
Head of Offshore Division
UK Health & Safety Executive (HSE)
Agenda
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Introduction
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IRF Summit 2011
Post - Macondo: what’s been done so far?
What remains of the Macondo agenda for
industry and the Regulators?
Maitland Review
What should be the industry’s other priorities?
Update on European legislative proposals
Questions
Macondo and Montara.
Lessons from Macondo & Montara
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Lots of reports!
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Wide range of lessons - technical
weaknesses and softer lessons
UK Regulatory regimes fundamentally
sound (Select Committee, Maitland
Review, European Commission etc)
Industry’s post-Macondo work (1) –
embed the lessons
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Implementing outputs from OSPRAG, including
• WLCPF
» Considerable amount of work due
for delivery during next 18 months,
especially on competence issues
• OSRF
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Implementing other outputs from post-Macondo
work
• e.g. OGP GIRG recommendations, with
support for Wells Expert Group and
database development
Industry’s post-Macondo work (2) – a
“public license to operate”
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Part of wider agenda to give confidence
for “public licence to operate”
– Better sharing of information
– Bringing poor performers up to the
standards of good performers
– Being open and transparent
Industry’s post-Macondo work (3) – the
hardware challenges
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e.g. Draft API Standard 53
– Mandatory requirement of two shear rams on
all BOP stacks (cf Select Committee views)
– Mandatory requirement for all subsea stacks
to have
• Auto-shear
• Deadman
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Developing other approaches – explosive well
control techniques etc.
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Strengthen verification system
Industry’s post-Macondo work (4) – the
“software” challenges
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“Control Panel”
– Display of data about well/reservoir
– Status info on equipment, controls inc
Human Factors
– Authorisation to shut down
– Task aids & decision making
– Team working and decision peer monitoring/review
Organisational Factors
– Management of competence
– Training delivery
– Audit/Review and learning from events
– Safety Leadership to create culture
– Major hazard/process safety/SCE awareness within the industry
– Issues of intimidation and bullying
Company Interface
– Interface documents, including escalating/emergency situations
– Monitoring/auditing of contractors
– Contractual environment which does not negatively affect behaviours
Regulators post-Macondo work
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Response of UK regulators
– Inspections of verification schemes for well
control equipment
– Assessment of BOP integrity management
systems
– Effectiveness of disconnect and move-off
procedures
Response of international regulators
– Multi-national audit in North Sea ,
concentrating on human and organisational
factors from Macondo
– More coordinated approach of IRF in the ISO
standards arena
But what more for the Regulators?
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Bringing the safety integrity and
environmental protection regimes closer
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Responding to almost insatiable need for
openness and transparency
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Competency and resourcing
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Responding to European Commission
proposals
Working with industry to respond to
Maitland Review
Maitland Review (1)
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In 2010 DECC announced a formal review to
consider the consequences of the Macondo
accident for the UK regulatory regime.
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“To carry out a review of the UK Oil and Gas
regulatory regime against the issues and
recommendations emerging from the key
investigations into the Deepwater Horizon
incident in the Gulf of Mexico and other relevant
reviews”
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“To make any recommendations for
improvement to the UK regime in the light of that
review”
Maitland Review (2)
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Chaired by Prof. Geoff Maitland (Chair)
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Published December 2011: “Offshore Oil & Gas in the
UK – an independent review of the regulatory regime”.
Covered
– Licensing, approval & consent process
– Preventative regime (safety and environmental)
– Preparedness regime
– Liability issues
– Liaison between regulators
– Co-ordination and responsibility in a drilling
activity
– Adequacy of industry response
http://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/oil-gas/3875offshore-oil-gas-uk-ind-rev.pdf
Maitland Review Recommendations (1)
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Well planning and
control
Environmental
protection
Emergency response
Learning from incidents
and best practice
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Implementation
assurance
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Competency and
training of the workforce
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Workforce engagement
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Regulator issues
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Technology
development
Liability and insurance
issues
The European
dimension
Maitland Review Recommendations (2)
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Industry is called upon to
implement many recommendations
(with support in some areas from
regulators)
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Other recommendations fall to the
regulators to implement.
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Report to Ministers by July 2012
Industry/regulator steering group
established.
But what other priorities should
the industry have?
IRF 2011 Offshore Summit
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Held in Stavanger, October 2011
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Summary of conclusions circulated
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Conclusions at
Provided an opportunity for frank dialogue
on post Macondo issues
Should help to form ongoing priorities for
industry and regulators alike.
http://www.irfoffshoresafety.com/conferences/2011Summit
Hydrocarbon releases
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Achievement of industry target by
2012/13
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All operators are delivering effective HCR
Action Plans, and building into business
plans
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Continuing intrusive approach by
regulator in major and significant HCRS
Integrity through life cycle – HSE
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Ageing and life extension – continuing
with KP4
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Spotlight of Operational Risk
Assessments
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Spotlight on verification as a key
component
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Safety Case process remains backbone
But, not forgetting KP3 agenda – industry
to continue benchmarking progress?
Leadership and workforce involvement
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Expectation of process safety leadership
– By company individuals, learning from
Macondo
– By Step Change, delivering existing
Strategy
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Workforce involvement development
– Improved Safety Rep training,
particularly in process/MH issues
– Wider issues of establishing safety
culture
Update on Europe
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European Commission offshore proposals based on UK
regulations, but with more - “North Sea plus”
Current position – with Council and European Parliament
Key areas for the drilling industry:
– Extends well examination and verification philosophy to
other Member States
– Introduces Well and Combined Operations notifications
– Requires “Acceptance “ of Major Hazard Document
Brings offshore safety integrity and environmental
protection/response under one umbrella
Operators, major contractors and licensees and operators
based in the EU shall ‘endeavour’ to follow the Regulations
principles when operating outside of Europe.
Sets up National Competent Authorities for offshore safety &
environmental protection
Directive or Regulation – a major concern!
QUESTIONS?