“The report’s recommendations indicate the importance Maersk Oil places on the need for safe operations, and robust systems throughout the organization. It also demonstrates our corporate intention to maintain the highest industry standards at all times, and is a clear example of our desire to conform to good industry practice. The Maersk Oil management team is firmly committed to learning the lessons of the report, and implementing its recommendations. As a company we are looking at ensuring the continuous improvement of our worldwide operations.” - Kurt Normann Nielsen, Managing Director Maersk Oil North Sea UK Limited
Maersk Oil North Sea UK Limited has been discussing the findings and recommendations of its major Process Safety Audit (PSA) report with the Health & Safety Executive (HSE), and with its workforce in Aberdeen. The Report was commissioned by parent company Maersk Oil in Copenhagen, and covered the company’s operations in Denmark, Qatar and the UK.
Kurt Normann Nielsen, Managing Director of Maersk Oil’s North Sea UK operation explained the origins of the PSA. ‘The PSA was instigated by Maersk Oil in Q2 2007 as a result of the Texas City accident, and the subsequent Independent Safety Review Panel (Baker Panel) evaluation of process safety management effectiveness, corporate oversight, and culture. As it is the policy of Maersk Oil to make safety its first priority, the company decided to commission a thorough review of its operations to evaluate process safety in its three main operating regions.’
During the spring of 2007, the scope of the review was finalised and the team members were identified. It was decided that the team would comprise both internal and external members and the review team leader from ABS Consulting had also led the review in the US. Additionally, an executive from ABS Consulting who had been on the Baker panel participated in some of the interviews and meetings. The internal members represented each of the three operating countries and Maersk Oil in Copenhagen, and the external members were from ABS Consulting, and Chilworth Technologies.
The review commenced in Qatar in June 2007, each country has been visited at least two times, and more than 200 man days have been spent per country, including offshore visits to several locations. A Process Safety Culture Survey was conducted in February and March 2008, and the results were evaluated and incorporated into the country reports during April 2008.
The review scope and standard of care was in line with the Baker Panel’s scope and as laid out in the Center of Chemical Process Safety publication Risk Based Management (2007) representing the most recent developments in the area of process safety.
The Results and Conclusions
The focus of the Process Safety Review is on the issues significantly affecting process safety. These issues are defined as’ findings’, and less significant issues have been designated as ‘improvement areas’. The findings were consolidated into 33 specific recommendations
A number of the findings and improvement areas were already identified by the Maersk Oil UK organisation and some of these were being resolved already, but were not closed out by the time of the audit and were therefore recorded by the review team. The UK element of the PSA was carried out in December 2007 and January 2008, with follow-up activities, including a Safety Culture Survey, during Q1 2008.
The Report made recommendations covering the following areas:
• Business Management Systems
• Planning and resourcing
• Technical systems
• Maintenance
• Contractor and vendor management
• Competence assessment and training
• Incident investigation and processes
• Audit processes
• Quality assurance.
Comments from the report on these areas included:
• The Business Management System is inadequate and incomplete, both in delivery and contents, especially the permit to work system and management of change.
• Accident investigation does not go far enough in establishing underlying and root causes.
• Competency issues
• Integrity management is inadequate, especially on marine systems.
• Planning is inadequate.
• Audit scope is unfocussed and follow-up is not ascertained.
• Management review needs to be introduced as a systematic activity.
• Process safety culture is not adequately embedded.
An action plan has been developed to address the key recommendations and has been discussed with the HSE.
Key elements of the action plan include:
• Re-establish an effective Process Management System, and fully assimilate the UK operation into the overall Maersk Oil culture
• Establish Asset Integrity management as a core activity in Maersk Oil
• Develop a programme to enhance process safety competency at all levels
• Compile a complete set of Safe Work Procedures, including all safety critical work elements and review the Permit to Work system
• Develop and roll out clear expectations for conduct of operations, focusing on strong compliance
• Improve the tools and processes available for incident investigation
• Develop an effective process safety audit programme
• Develop and implement a rigorous regime of overseeing contractors output
• Initiate a review and streamlining of the Business Management System
Commenting on the Action Plan Kurt Normann Nielsen said:
“As a company we recognize that we can improve performance. We have invested considerable resources in identifying the underlying issues that have been affecting our performance, and putting action plans in place to remedy these problem areas. Some of these were already in place prior to the PSA, and others were being addressed prior to the publication of the report. We are fully engaged in delivering the agreed action plan.
We are certain that this report will help ensure we have a safe working environment, and provide a framework for the management to take the business forward in a way that satisfies our own stringent criteria, and that of the regulator.”
Follow up
Maersk Oil is committed to carrying out a follow up safety culture survey in 2009, and will be monitoring and auditing Process Safety on an ongoing basis.
It is expected that close-out of all recommendations will last around 24 months. During the close out of recommendations a number of the improvement areas will also be addressed. To ensure that improvement areas are comprehensively addressed, a detailed plan for close-out of any remaining improvement areas will be prepared in the first quarter of 2009.
Janice A FPU start up
Maersk Oil North Sea UK Limited also announced that the Janice A Floating Production Unit (FPU) has instigated a commissioning and start up sequence designed to bring the asset back into full production. The Janice facility was shut down in Q4 2007 by Maersk Oil for extensive improvement work to be carried out following a series of incidents and findings.
A detailed action plan for Janice was developed and implemented in consultation with the HSE.
The action plan included:
• Review of safety related systems and equipment
• Review of safety related procedures, both onshore and on Janice
• Review of the Janice organization both onshore and offshore.
Kurt Normann Nielsen, Managing Director of Maersk Oil in Aberdeen said, “It is our policy to give safety the first priority, and the detailed action plan for Janice indicates the importance Maersk Oil places on the need for safe operations, and robust systems. Production his only being resumed now Maersk Oil and the HSE are satisfied it is safe to do so”.