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.