ASSET INTEGRITY PERFORMANCE INDICATORS: RECENT DEVELOPMENTS FOR … · · 2010-10-20ASSET...

ASSET INTEGRITY PERFORMANCE INDICATORS: RECENT DEVELOPMENTS FOR THE UPSTREAM

OIL & GAS INDUSTRY

Brett DohertySHE Group Manager

RasGas Company Limited

17 March 2010

Brett Doherty RasGas SHE Group Manager

RasGas at a glance

Process Safety Defined

Evolution of Industry Standard API 754

OGP and the Upstream Industry

Asset Integrity KPIs - today

Asset Integrity KPIs – future

Outline:



North Field

State of Qatar

Doha

RasGas

RasGas at a glance…



RasGas at a glance…

North Field

Doha

RasGas

One of the Largest Integrated Gas Facilities in the World: Intake 9.2 bcfd

Largest LNG Plant in the World

7 LNG Trains – 36.2 MTA capacity

Sales Gas, LPG, Condensate and Helium production

Process Safety paramount: High pressure hydrocarbons

Large liquid inventories

Toxic (H2S)

Cryogenic

Asphyxiation



Definitions

Process Safety = Asset Integrity

Personal or Occupational Safety Hazards

Hazards that give rise to incidents that primarily affect one individual worker for each occurrence

Process Safety Hazards

Hazards that give rise to major accidents involving release of potentially dangerous materials, release of energy (explosions, fires); or both



Asset Integrity Performance Indicators– „Breakthrough‟ Opportunity

Buncefield11 December 2005

BP Texas City Refinery23 March 2005




.

Recent Developments

2006 – CCPS commences Process Safety Metric Project

2007 – Baker Panel Report (Texas City Refinery)

2007 - CSB Report (Texas City Refinery)

2008 – Buncefield Major Incident Investigation Report

All acknowledged

Measures for tracking operational and safety performance will not provide early warning of potential major incidents

The need for industry-wide lagging Asset Integrity PIs




.

CSB Report recommended American Petroleum Institute (API) develop a new ANSI standard;

“create performance indicators for process safety for the refinery and petrochemical industries”

Ensure leading and lagging indicators identified for nationwide reporting

Include methods for development of indicators

API Recommended Practice now approved (Mar 2010)



Jaramillo and al. (2007)

OGP‟s Activities

The International Association of Oil & Gas producers (OGP)

encompasses most of the world‟s leading publicly-traded, private and state-owned oil & gas companies, oil & gas associations and major upstream service companies

formed in 1974 to develop effective communications between the upstream industry and an increasingly complex network of international regulators

Commissions Task forces and Sub-Committees of members to develop upstream industry recommended practices

Identified the absence of upstream industry guidance on Asset Integrity KPIs as an issue




OGP‟s Activities – AI Task Force

2008 - published “Asset Integrity – the key to managing major incident risks”

included preliminary guidance on establishment of KPIs

To build on this report, a Task Force was created

Asset Integrity KPI Task force:

1.Assess whether further guidance is needed on the selection, development and use of KPIs;

2.Identify a limited set of leading and lagging KPIs to improve company safety performance;

3.Select KPIs suitable for industry-wide OGP reporting



The Process Safety Triangle – API 754

Process Safety Triangle

Events of

Lesser

Consequence

Events of Greatest

ConsequenceReportable PSIs

Tier 1 Events

Tier 2 Events

Tier 3 EventsEvents with Least or

No Consequence

Tier 4 Performance




AI Performance IndicatorsTier 1 – Process Safety Incidents

Tier 1 PSE

loss of primary containment (LOPC) with the greatest consequence as defined by RP 754

an unplanned or uncontrolled release of any material, including non-toxic and non-flammable materials from a process that results in one or more of the consequences:

employee, contractor or subcontractor “Lost Workday Case” injury and/or fatality; or

A hospital admission and/or fatality of a third-party; or

An officially declared community evacuation or community shelter-in-place; or

A fire or explosion resulting in greater than or equal to $25,000 of direct cost to the Company; or

A pressure relief device (PRD) discharge to atmosphere or to a downstream destructive device that results in one or more of four consequences; or

A release of material greater than certain threshold quantities in any one-hour period




AI Performance IndicatorsTier 2 – Process Safety Incidents

LOPC approximately an order of magnitude less than Tier 1

an unplanned or uncontrolled release of any material, including non-toxic and non-flammable materials from a process that results in one or more of the consequences:

An employee, contractor or subcontractor occupational injury; or

fire or explosion resulting in greater than or equal to $2,500 of direct cost to the Company; or

A pressure relief device (PRD) discharge to atmosphere or to a downstream destructive device that results in one or more of four consequences; or

A release of material greater than certain threshold quantities in any one-hour period (1/10 of those for Tier 1)

Tier 2 PSE




AI Performance IndicatorsTier 3 – Challenges to Safety Systems

De Minimus LOPC Events

Other Process Unit Fires

Safe Operating Limit Exceedence

Demands on Safety Systems

More predictive or „leading‟ indicators

Considered a Process Safety Near Miss

Tier 3




AI Performance IndicatorsTier 4 – Risk Control Barriers

Also called Operating Discipline metrics

KPIs typically based on Management System

Site-specific

Primarily predictive or „leading‟ indicators

Currently no intention for collection and benchmarking

Tier 4




AI Performance IndicatorsTier 4 – Risk Control Barriers

Indicators set to define defects in barriers

Tier 4




AI Performance Indicators Task Force- Progress to date

Task force charged with:

Adapting lagging KPIs for upstream industry reporting

Upstream terminology, definitions, thresholds and examples

Identifying Tier 3 and 4 (leading) KPIs for asset/company internal use

Congruent with CCPS OECD, API, ANSI work etc




AI Performance Indicators Task Force- Progress to date

OGP will not produce an upstream equivalent to API 754

API document can be used by upstream industry with minimum modification

Interim interpretation guidance for API 754 to be issued imminently for 2010 reporting year

Two OGP documents will be modified to provide guidance for use of API RP and reporting of Tier 1 – 4 KPIs by year end




AI Performance Indicators- Progress to date

Task Force reviewed RP 754 - interpretation guide includes

Upstream-specific activities and operations (e.g. drilling, production) identified and included in interpretation guide

Upstream-specific scenarios augment RP appendix

Upstream-specific chemicals augment threshold table

Reviewed 2009 industry survey on current AI data collection and analysis

OGP will solicit AI data from previous years to obtain some baseline prior to 2010




AI Performance Indicators Task Force- Work in Progress

Two current OGP documents were identified as requiring modification:

Will provide guidance

for use of API RP

Reporting of Tier 1 & 2 KPIs

Recommended structure for adoption of Tiers 3 & 4 KPIs

Asset Integrity Guidance Publication (415) will replace the Interim interpretation guidance for API 754 for 2011

H & S Users Guide Report (416) will be modified to collect Process Safety and Personal Safety data contemporaneously





2011 work likely to recommend adoption of “Dashboard” models for Tier 4 Performance Indicators:

Simple view of current status & direction of both leading and lagging indicators

Warning signs driven from potential for failure of multiple barriers

Information available to all levels of an organisation



Thank you!

ASSET INTEGRITY PERFORMANCE INDICATORS: RECENT DEVELOPMENTS FOR … · · 2010-10-20ASSET...

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