Post on 26-Mar-2015
Health and Safety Executive
UK response to Macondo &
Montara incidents
IOPRO Summit, Perth, Australia, August 2011
Steve Walker
Head of Offshore Division,
UK Health & Safety Executive
Initial reactions in UK – media, public attention and politicians
• Montara – little notice apart from specialist press
• Macondo - first few days, interest in UK was relatively narrow, BUT…..
• Media attention quickly developed because of :– Focus on BP as a “British” company in USA– Appreciation of financial and economic aspects - >
moved to the financial pages!
• Initially quiet on political front (new Government, Parliament in recess), but then:
• Succession of Parliamentary Questions• Ministerial interest• Set up a Parliamentary Select Committee regarding
deep water drilling in UK
Initial response from Regulators
• Two key offshore regulators in UK – Health & Safety Executive (HSE) -
safety integrity– Dept. of Energy & Climate Change
(DECC) - environmental protection/response, plus exploration licensing and drilling consent
• Quick review of safety regulatory regimes
Quick review
• Compare and contrast with U.S.
• UK multiple layers of safety regulatory protection• Established Safety Case regime for MODUs• Wells notification to HSE • Independent wells examiner• Independent verification of safety critical elements
(e.g. BOPs)• Duty Holder focused intervention by HSE wells
specialists and other offshore HSE inspectors• Weekly drilling operations reports to HSE• Mature, goal setting safety regime – from Piper
Alpha• Safety culture/work force involvement in North Sea
Initial response
• No “knee jerk” reaction – robust but no complacency!!
• Sensible reinforcement of our rigorous approach:– Checks that existing systems were working (we were
doing what we said we were doing!)– Increased well control assessment during MODU
offshore inspections– Increased number of MODU environmental inspections
by DECC inspectors (requiring additional resources)– Increase in HSE/DECC joint inspections of MODUs– Increased scrutiny of all E&A wells and in particular
deepwater wells (>300 metres) at consent stage
• HSE Deepwater Horizon Internal Review Group
• Commenced a formal independent review of UK’s offshore regulatory regime once clear lessons emerged from GoM
Initial response - Industry
• Key area was the quick creation of OSPRAG, the Oil Spill Prevention & Response Advisory Group.
• UK offshore industry’s focal point for the review of its offshore practises in the light of both Macondo and Montara
• Strong support/involvement from regulators and the Trades Unions
• Taking forward:• Technical Review (containment and well control
issues)• Oil Spill & Emergency Response• Insurance and Indemnity Issues
• Task & finish, but legacy of Wells Life Cycle Practices Forum and the Oil Spill & Emergency Response Review Group
UK Parliamentary Select Committee
• Reported January 2011
• No moratorium of drilling
• Confirmation of regime
• Now taking forward recommendations
Wider International aspects – European Commission
• Deepwater Horizon initiated significant ramping up of European Commission interest in offshore matters
• Key areas being• Relative comfort in North Sea regulation, but
concern about Mediterranean and Black Sea• Liability issues• Adequacy of cross-Europe oil spill response • Transparency /openness issues
• European Commission communication in October 2010 set out their views on way forward
• Working with the European Commission as it develops proposals for strengthening offshore oil & gas regulatory regimes set out in European law, and in particular who the law in applied in practice.
Wider international aspects - others
• Lots of activity and influencers! • G20• OGP• US investigations• NSOAF• IRF• US and Australian Ministerial Forums
• UK working with colleagues across these fora
• …but real need to bring all this together!
Three pillars for acceptable global offshore safety and environmental standards
• The legislative and standards framework• Those who create the risk must manage them
• Strong and competent regulator• Constructively, and robustly challenges the risk
creators• Targeted, proportionate, consistent and transparent
approach
• A committed industry• Understands and buys into the regulatory
framework• Delivers obligations effectively and consistent• Creates a safety culture• Engages with those exposed to risk – the workforce
Current status in UK
• Legacy of OSPRAG for UK– Capping device– Wells Life Cycle Practises Forum – five sub-teams
• BOP Issues• Relief Well Planning Requirements• Well Life Cycle Integrity Guidelines• Competency/Behaviours/human Factors• Well examination/verification
– Oil Spill & Emergency Response Review Group
• Increasing international activity on Standards and “best practise” – e.g BOPs, cementing design etc?
• Still a lot more to come out of the USA investigations – continue watching!
Current status - continued
• Legislative changes from Europe:– North Sea/UK safety legislation = benchmark– Pressures on
• Financial liability• More sophisticated cross- Europe legislation• Continuing environmental pressures
– Draft proposals from Commission emerging
• Regulatory changes– More transparency (via EU)– More consistency across national boundaries (via
NSOAF & IRF) – hopefully not via the Commission– Review of HSE/DECC system in 2011
• We must all learn the lessons from Macondo and Montara
• Multiple barriers breached = change any feelings of invulnerability -> chronic unease
• “Most of the mistakes and oversights at Macondo can be traced back to a single overarching failure – a failure of management.”
• Concentrate on all three “pillars” together:• Framework of legislation and standards• Strong, competent, effective regulators• Commitment of industry and its workforce.