A Framework for Business
Continuity to Provide High
Availability in Floating
LNG Operations
Pete Winn and Alex Lal
Velrada
Value without compromise.
Today’s agenda
How does business continuity support a resilient
operation?
What’s changed with FLNG?
A new approach to planning for FLNG.
Why should we care?
By way of introduction
Established in 2009, Velrada is an award winning, Australian-owned,
business and technology consulting firm with strong experience in
resources around the Asia-Pacific region.
Pete and Alex have delivered Business Continuity Planning
engagements for a range of clients in the Oil & Gas, Mining,
Engineering and Construction industries, and the Public Sector.
Our consulting in this area draws on strong capabilities in:
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Pete Winn
Intelligent Operations SME
Operational Efficiency
Integrated and Intelligent Operations
Risk Management
Organisational Change Management
Analytics and Optimisation of Processes
Supply chain and logistics optimisation
Online Collaboration and Information Management
Alex Lal
Business Continuity &
Disaster Recovery SME
The role of business continuity in
supporting resilient operation?
RISK MANAGEMENT
Well developed and
delivered supported by
legislation and license
to operate
Emergency
Management
(EM)
Provision of highly available
systems and technology
mature in O&G
Health & Safety
(HSEC)
Business
Continuity
Management
(BCM)
Disaster Recovery
(DR)
A mature practice
throughout Oil and Gas
backed up by solid
historical evidence
A heavy focus and highly
mature function engrained in
the culture of the organisation
Often overlooked and draws
together a number of functions
throughout the business
Expectations vs. Reality
63
%
of a business
functions have a recovery
time of less than 24hrs.
(Gartner: Ten Best Practices for Creating & Maintaining Effective Business
Continuity Management Plans)
2
More than half
weeks
of organisations believe their
‘worst case scenario’ outage to
be 2 weeks or more.
(Gartner: Ten Best Practices for Creating & Maintaining Effective Business
Continuity Management Plans)
13
in
Organisations do
not have an up-to-date
business continuity or
disaster recovery plan
(Gartner: Ten Best Practices for Creating & Maintaining Effective Business
Continuity Management Plans)
47
%
of organisations do
not know the cost of
business disruptions in the
last 12 months.
(KPMG: global Business Continuity Management Program Benchmark Study)
FLNG Changes the game
Challenging cost
Environment Leading
to requirement for
constant offloading
in all conditions
New technologies that
aren’t understood in
new environments
Multiple concepts will
be realised leading
to a high variance in
operating vessels
Lack of support from
nearby onshore
facilities & supply base
This is a new technology with a high degree of variability
and a limited knowledge base to support efficient operations.
With this in mind, can you still rely on identifying all the risks up front?
What does this mean?
Risks
Mitigation Plans
Scenarios
Risks
Mitigation Plans
Scenarios
Risks
Mitigation Plans
Scenarios
Scenarios
BCP
Framework
Recovery Strategies
Scenarios
Scenarios
Scenarios
Scenarios
Getting it right
Improvement
INCIDENT
IMPACT
Normal
Deterioration
Level of
Preparedness
‘MITIGATE’
Possible
Recovery
Points
Effectiveness of Planning
TIME
‘REMEDIATE’
A business continuity planning
framework shifts the focus from
reacting to specific known scenarios,
to planning based on what’s
important to the operation:
reducing recovery time.
Assess
”Understand the scope of the
operation and prioritise based
on value chain analysis and
maximum acceptable outage”
Assess
”Understand the scope of the operation and prioritise based on value chain analysis and maximum
acceptable outage”
Medical
Extraction
Production
Planning
Health and
Safety
Emergency
Response
Processing
Reliability &
Inspection
Control &
Operations
Maintenance Planning
Storage
Surveillance
Remote
Assistance
Business and Facilities Functions
Offload
Supply &
Logistics
Marine
Operations
Reservoir
Contracting
Optimisation
Govern
“Embed the framework define responsibilities, assign ownerships and embed in
your continuous improvement process”
Assess
”Understand the scope of the
operation and prioritise based
on value chain analysis and
maximum acceptable outage”
Test
”Check that the appropriate
strategies are in place and
understood throughout
the organisation”
Analyse
”For each function map out the
critical human, information, physical,
system and process assets and their
interdependencies”
Plan
”Identify and record recovery
strategies for a failure in each
asset competent of the
business function
Another operator has suffered a
helicopter incident causing the
grounding of a significant
proportion of your fleet for safety
concerns, this has lead to a lack of
coverage for medical evacuation
and a shut down of operations.
NoShared
backup
Medivac
process!
Medical
Evacuation
No backup
fleet!
Helicopter
Fleet
grounded!
Fleet
Single Vendor!
Helicopter
Vendor
Fleet Share
Agreement
Helicopter
Contract
Paper Copies
CMS Outage
CMS
Detailed
Process
Instructions
Contract
Analyst
Contract
Manager ill!
Manager
Advanced
Highly resilient with a degree of process automation. Monitoring tools in
place and proactively used for future planning. Near-line BCDR capability
that is well-aligned to business operations
Mature
Mostly resilient with some degree of process automation. System and infrastructure
monitoring tools in place and proactively used to anticipate/respond to BCDR
incidents.
Somewhat Mature
Processes are well defined but inconsistently applied. Monitoring tools in place but
not used proactively. Core business processes and systems can generally be
recovered within an acceptable timeframe.
Immature
Processes are defined and documented with some gaps, but are largely manual.
Information used to prioritise business processes or systems in the event of a major
incident is incomplete or not used
Very Immature
Little evidence of major incident planning. Processes are unclear or poorly
documented. Little or no understanding of which business processes or systems to
prioritise in the event of a major incident.
Realistic
.
Achievable
.
Build confidence early
.
Iterate
.
.
Buy in
Key takeaways
FLNG poses unique BC challenges.
The risks are substantial and have changed and
so should the planning in response to this.
Planning and preparation is key to reducing the
time to return to operations.
Framework approach leads to a quicker return to
normal operations.
Thank you.
www.velrada.com
1300 835 723
info@velrada.com
@velrada
© 2014 Velrada Capital Pty Ltd.
All rights reserved.
The information contained herein is for
informational purposes only and
represents the current view of Velrada
Capital as at the date of the presentation.
Velrada Capital cannot guarantee the
accuracy of any information provided
after the date of this presentation.
Velrada Capital makes no warranties,
express, implied or statutory as to the
information in this presentation.
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