Shell Asset Integrity and Process Safety
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Transcript of Shell Asset Integrity and Process Safety
Copyright 2006 Shell Global Solutions International BV Page 1
L181 Basic Terminal Engineering Course Topic or Session or Module Name
7th EUOAG - 3rd of July 2014Copyright of Royal Dutch Shell plc
Asset Integrity and Process Safety ManagementAsset Integrity and Process Safety ManagementAsset Integrity and Process Safety ManagementAsset Integrity and Process Safety Management
- How it Works (maintaining the SECE’s)
- Control and Assurance
- Audits and Reviews
- Independent Verification
Presentation to the
European Union Offshore Oil and Gas Authorities Group (EUOAG)3rd of July 2014
1
Ante Frens, Wim van den Berg
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014 ...........………… 2
Vision: “Our Assets are Safe, and we know it”
2
Copyright 2006 Shell Global Solutions International BV Page 2
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014 3
Agenda
� Asset Integrity & Process Safety Management – How it Works
� Asset Integrity & Process Safety Management – Assurance
� Line of Defence – Audits and Reviews
� Independent Verification– 1st Party Assurance
Technical Authority, Audits and Reviews
– 2nd Party InspectionAccredited Internal Inspection Body
– 3rd Party Verificationby Bureau Veritas (OneGas UK)
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Vision: “Our Assets are Safe, and we know it”
4
Design IntegrityDesign IntegrityDesign IntegrityDesign Integrity Technical Technical Technical Technical
IntegrityIntegrityIntegrityIntegrity
OperatingOperatingOperatingOperating
IntegrityIntegrityIntegrityIntegrity
Integrity LeadershipIntegrity LeadershipIntegrity LeadershipIntegrity Leadership
Asset IntegrityAsset IntegrityAsset IntegrityAsset Integrity
HSE Case & ALARP-statement
Copyright 2006 Shell Global Solutions International BV Page 3
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
EXAMPLES of SECE’s
PERFORMANCE STANDARD of SECE’s
� Instrumented Protection System (SIL rated)– Trip setting of initiating element (e.g. 85% of set pressure relief valve)
– Right sequence of events (shutdown schedule)
– Fail safe
� Shutdown Valve (upstream design pressure)– Closing Time < ... seconds
– Leak Rate < ... m3/hr
� Pressure Relief Valve (set pressure to protect design)– Opening Pressure > 110% Set Pressure (safety)
– Opening Pressure < 90% Set Pressure (environment)5
RESERVOIR
FLOW
CONTROL
VALVE
EMERGENCY
SHUTDOWN
VALVE
[SECE]
EMERGENCY
SHUTDOWN
VALVE
[SECE]
EMERGENCY
SHUTDOWN
VALVE
[SECE]
TREATMENT FACILITIESTREATMENT FACILITIESTREATMENT FACILITIESTREATMENT FACILITIES
Vessels, Coolers, Piping, Heaters, Tanks, ...
DESIGN PRESSURE 600 bar DESIGN PRESSURE 120 bar
400 bar
85
bar
PRESSURE
RELIEF
VALVE
[SECE]
EMERGENCY
SHUTDOWN
VALVE
[SECE]
DESIGN PRESSURE 80 bar
EXPORT SYSTEM
INSTRUMENTED PROTECTION SYSTEM
Pressure transmitters, Fire&Gas, ....
WELL
HEAD
WELL
60
bar
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Hardware barriers and SCE groups (addresses Safety and Environment)
...........………… 6
• “SCE = SECE”
SCE’s address both Safety and
Environment
• Safety and Environment are
managed in integral way
Copyright 2006 Shell Global Solutions International BV Page 4
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
DEVELOP/ PROJECT PRODUCE
SCE Management through the Asset life cycle
...........………… 7
CMMS = Computerized Maintenance Management Systeem
FEED = Front End Engineering Design
HAZID = Hazard Identification
HEMP = Hazard and Effects Management Process
OR&A = Operational Readiness & Assurance
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Technical Integrity Management
2. Create / Update Maintenance, Inspection and Test plan
� Planned maintenance, Inspection and Testing routines automatically called by the CMMS
8
1. Identify SCEs and Performance Standards (using HEMP)
3. Execute Maintenance, Inspections and Testing
4. Initiate Corrective Task
� Risk assess and mitigate.
� If not acceptable production is stopped.
� Facility Status Reporting (FSR) with TA approval
Methodology & Strategy� Risk and Reliability Management (RBI, WIMM,
PIMM, IPF, CMF, …)
NONONONO
YESYESYESYES
SCE functions OK
FSR monitoring of SCE groups
FSR -Facility Status Reporting
Preventive Preventive Preventive Preventive
Maintenance tasks
SCE Performance Standards
CorrectiveCorrectiveCorrectiveCorrective maintenance
(CMPT priority)
Computerized Maintenance Management
System
SCE functions correctly ?
Copyright 2006 Shell Global Solutions International BV Page 5
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014 9
Agenda
� Asset Integrity & Process Safety Management – How it Works
� Asset Integrity & Process Safety Management – Assurance
� Line of Defence – Audits and Reviews
� Independent Verification– 1st Party Assurance
Technical Authority, Audits and Reviews
– 2nd Party InspectionAccredited Internal Inspection Body
– 3rd Party Verificationby Bureau Veritas (OneGas UK)
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Independent Technical Authorities
� TA0: EVP of Shell Upstream International Operated (UIO) and EVP Upstream Development (PTU)
� Del-TA0: Engineering & Production is VP Global Production Excellence
� TA1’s appointed by del-TA0:ENGINEERING: Mechanical Static, Rotating; Electrical; Control & Automation; Pipelines; Inspection; Materials & Corrosion; Civil; Offshore Structures; Process Eng
HSSE SP: Technical Safety, Environmental
PRODUCTION: Production Operations; Maintenance and Reliability; Production Technology (well integrity); Production Chemistry; Logistics
� TA2’s and TA3’s are appointed by the TA1’s
� Competences of all TA’s are formally assessed before being appointed
10
TA0
TA1
TA2/TA3
TA0
TA1
TA2/TA3
PROJECTS _ PROJECTS _ PROJECTS _ PROJECTS _
TECHNOLOGYTECHNOLOGYTECHNOLOGYTECHNOLOGY
(Well and (Well and (Well and (Well and
Facility Projects)Facility Projects)Facility Projects)Facility Projects)
UPSTREAM UPSTREAM UPSTREAM UPSTREAM
OPERATEDOPERATEDOPERATEDOPERATED
(Engineering, (Engineering, (Engineering, (Engineering,
Production)Production)Production)Production)
ASSET OWNERSPROJECTS (incl
WELLS)
Copyright 2006 Shell Global Solutions International BV Page 6
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Technical Professional Foundation
11
• Structured Development Programmes (including assessments) are available for all engineering disciplines
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Independent Technical Authorities
ASSET
co-located Engineers
/ TA2
Maint Eng TL
VP NAM NL and OneGas UK
MaintMgr
Discipline Lead / TA1
Disc Eng Mgr
Asset MgrProd Serv
Mgr
OpsMgr
Del-TA0
appointment and
escalation
EVP Upstream International Operated (TA0)
Business
priorities
Technical
Assurance
12
Copyright 2006 Shell Global Solutions International BV Page 7
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Independent Technical Authorities – Control and Assurance
� Engineers, Operators, Maintainers, … – Own the Delivery and Responsible for the Quality
of the Work
Quality Control
Quality Assurance
Quality Work
� Technical Authorities 2 and 3 (TA2, TA3)– Own the Quality Control and Sign off on
Deliverables (Design Docs, Deviations; etc.)
� Technical Authority 1 (TA1)– Set / maintain the Standard for their Discipline
– Assess and appoints TA2s/TA3s
– Approve Deviations from the Discipline Standard
� Integrity Meeting at Asset level (every month)
� Integrity Meeting NAM & OneGas UK (every 6 months)
Management Review
Design IntegrityDesign IntegrityDesign IntegrityDesign Integrity Technical Technical Technical Technical
IntegrityIntegrityIntegrityIntegrity
OperatingOperatingOperatingOperating
IntegrityIntegrityIntegrityIntegrity
Integrity Integrity Integrity Integrity
LeadershipLeadershipLeadershipLeadership
Asset IntegrityAsset IntegrityAsset IntegrityAsset Integrity
13
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014 14
Agenda
� Asset Integrity & Process Safety Management – How it Works
� Asset Integrity & Process Safety Management – Assurance
� Line of Defence – Audits and Reviews
� Independent Verification– 1st Party Assurance
Technical Authority, Audits and Reviews
– 2nd Party InspectionAccredited Internal Inspection Body
– 3rd Party Verificationby Bureau Veritas (OneGas UK)
Copyright 2006 Shell Global Solutions International BV Page 8
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Hardware , Organisation,
Procedures,
Ops Context
DCAF DCAF DCAF DCAF –––– Discipline Control and Assurance FrameworkDiscipline Control and Assurance FrameworkDiscipline Control and Assurance FrameworkDiscipline Control and Assurance Framework
“Quality Control and Assurance of Critical Deliverables”
DEP’s, DEM1, DEM2DEP’s, DEM1, DEM2DEP’s, DEM1, DEM2DEP’s, DEM1, DEM2
TA’s
Blades 10/12 Blades 10/12 Blades 10/12 Blades 10/12 –––– MIEMIEMIEMIE
“Maintenance Integrity Excution”
Preventive &
Corrective
maintenance
compliance
Deviation
Management
Blades 17 Blades 17 Blades 17 Blades 17 –––– RRMRRMRRMRRM
“Risk & Reliability Mgt”
etc......etc......etc......etc......
Blade 19 Blade 19 Blade 19 Blade 19 –––– Overall Equipment Overall Equipment Overall Equipment Overall Equipment
Condition Condition Condition Condition
“Site Ownership and HBA”
RBIRBIRBIRBI
Risk Based
Inspection
IPF IPF IPF IPF
Instrument
Protected
Functions
CMFCMFCMFCMF
Corrosion Mgt
Framework
Hardware Hardware Hardware Hardware
Barrier AssessmentBarrier AssessmentBarrier AssessmentBarrier Assessment
Hardware Hardware Hardware Hardware
Barrier AssessmentBarrier AssessmentBarrier AssessmentBarrier Assessment
Asset Integrity & Process safety Assurance within UIO/T
Process Safety ReviewProcess Safety ReviewProcess Safety ReviewProcess Safety ReviewProcess Safety ReviewProcess Safety ReviewProcess Safety ReviewProcess Safety Review
HSE Case &
ALARP - statement
Blade 13 Blade 13 Blade 13 Blade 13 –––– MoCMoCMoCMoC
“Management of Change”
SoF -
Statement of
Fitness
For both permanent
&
temporary
changes
Design IntegrityDesign IntegrityDesign IntegrityDesign Integrity Technical Technical Technical Technical
IntegrityIntegrityIntegrityIntegrity
OperatingOperatingOperatingOperating
IntegrityIntegrityIntegrityIntegrity
Integrity LeadershipIntegrity LeadershipIntegrity LeadershipIntegrity Leadership
Asset IntegrityAsset IntegrityAsset IntegrityAsset Integrity
Blade 24 Blade 24 Blade 24 Blade 24 –––– Field OpsField OpsField OpsField Ops
“Operations Integrity”
-Permit to Work
-Alarm Mgt
- Handovers
- .....
OI reviewOI reviewOI reviewOI reviewOI reviewOI reviewOI reviewOI review
15
The Line of Defence (LOD) Model
LOD 1
�Management controls give effect to Management
ownership, accountability and responsibility for
delivering business objectives and assessing,
controlling and mitigating associated risks, together
with maintaining effective internal controls.
LOD 2
�Higher level controls and business assurance to assess the
effectiveness of business processes, operational controls and
management controls in ensuring compliance with processes,
controls and external laws and regulations.
LOD 3
� Independent (internal and external) audit provides assurance
to the RDS Board and senior management on how effectively
the organisation assesses and manages its risks
LOD 3
Management Controls
LOD 1
Operational Controls and Processes
Finance Controls Business Controls Value Controls
�Operational processes and controls are the
means by which business objectives are
achieved and many risks are managed on a day-to-
day basis, usually governed by documented Group,
Business and lower level standards and policies.
LOD 2
Business
Assurance LOD1 & 2 support
Management in Control
LOD 2 & 3 are part of Annual
Assurance Plan
AUDITand
REVIEW � Hardware Barrier Assessment� Process Safety Review� Integrity Assurance Sustain Review� Maintenance Execution Sustain Review� Operation Integrity Reviews� …
� Shell Internal Audits (Asset Mgt, ...)� HSSE SP Audits
Copyright 2006 Shell Global Solutions International BV Page 9
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014 17
Agenda
� Asset Integrity & Process Safety Management – How it Works
� Asset Integrity & Process Safety Management – Assurance
� Line of Defence – Audits and Reviews
� Independent Verification– 1st Party Assurance
Technical Authority, Audits and Reviews
– 2nd Party InspectionAccredited Internal Inspection Body
– 3rd Party Verificationby Bureau Veritas (OneGas UK)
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Verification: “a multi dimensional playing field”
� SCE groups (Structures; Pressure Containment; Ignition Control; Emergency Response; ... )
� Project Phase (Design, Construct, Commission) .... … Produce Phase (Maintain, Operate, Management of Change, Life Extension)
� Management System level (processes, methodology, organisation, competences) …… Output level (Check Plans /Programmes; Condition of equipment, Witness Activities)
� Sampling (100% … Random check ... Risk Based Methodology)
� Level of Independence: 1st Party ….. 2nd Party … 3rd Party
� Reporting of findings to Duty Holder … Competent Authority
� Certificates of compliance …. Approved …. Accepted …. No further Questions
18
What is the right level of verification?
Copyright 2006 Shell Global Solutions International BV Page 10
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
1st Party Assurance – Technical Authorities, Review and Audits
Hardware Barrier Assessment- HBA
� Technical Authority team visits site and verifies effectiveness of hardware barriers
� Each year several sites per Asset according to multi year plan
� Close feedback loop: Which HBA-groups are effective and where are improvements required (strategies; PM-routines; competence; ...).
� Outcome HBA is input for PSR evidence at Asset level.
Process Safety Review - PSR
� Technical Safety lead review to verify Asset at HSE case level.
� Builds on findings of HBA’s, with focus on:– Management of Changes: Ops Conditions; Hardware; legislation; LFI’s; Procedures; Technology and Organization
– Safety studies (e.g. HAZOP)
– ALARP statement
Operation Excellence Reviews
� Integrity Assurance Sustain Review
� Maintenance Execution Sustain Review
� Operation Integrity Reviews
Audits and Reviews (LoD2 and LoD3)
� Shell Internal Audits (e.g. Asset Management)
� HSSE SP Audits
19
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
1st Party Assurance - Strengths and Points of Attention
Strengths Points of Attention
Close to the business and linked with production and maintenance processes
Requires up-to-date standards and accepted methodologies and processes
Integration of design, construction & produce phase allows direct feedback and optimization
Requires sufficient in-house capability and competences which are formally assessed
Allows pro-active approach to anticipate future changes (operating conditions, modifications)
Needs special attention to keep up to date with legal requirements, standards and technology developments
Gives higher efficiency and stimulates “pro-active” behaviour
Appropriate level of independence must be ensured
Stimulates ownership and cross learning between different assets and operations
Needs right leadership and behaviours of both asset line and Technical Authorities
Formal escalation to Shell EVP level (above VP NAM NL and OneGas UK)
Might be perceived as less independent by the community at large
20
Copyright 2006 Shell Global Solutions International BV Page 11
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
2nd Party Inspection – Accredited Internal Inspection Body
� For Pressure Equipment an accredited 2nd or 3rd party inspection body is required to meet NL legislation of pressure equipment
– Pressure Vessels
– Heat Exchangers
– Storage Tanks
– Piping Systems
– Relief Systems
� IQS (Inspection Quality System) is part of CMS(Corporate Management System)
� Competency of inspectors are based on external certification
� Shell Risk Based Inspection methodology is externally accepted
� Inspection Department is formally accredited (Raad van Accreditatie) and appointed by the Dutch Authorities (Ministry of Social Affairs)
21
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
2nd Party Inspection - Strengths and Points of Attention -
Strengths Points of Attention
Accredited 2nd party Inspection Body is accepted alternative over 3rd party Inspection Body satisfy legal requirements for pressure equipment in NL
Needs to maintain an externally accredited “quality management system” and organisation
Builds on strengths, knowledge and experience of 1st party assurance
Needs to maintain certified SKK competence levels of inspectors in NL
Seen as more independent than 1st party assurance by community at large
Inspection techniques and sample size depend on full understanding of degradation modes/ rates and defect morphology.Shell Risk Based Inspection methodology is formally, externally accepted in NL.
22
Copyright 2006 Shell Global Solutions International BV Page 12
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
D
U
T
Y
H
O
L
D
E
R
V
E
R
I
F
I
E
R
Role of 3rd Party Verification – Bureau Veritas
23
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
3rd Party Verification - In OneGas UK by Bureau Veritas
� In UK the Verification and Examination Scheme of the Duty Holder is required by the Offshore Installations Regulations (“Safety Case” and “Prevention of Fire and Explosion and Emergency Response”)
� The Verification and Examination Scheme is compiled by the Duty Holder in consultation with the Verifier (Independent Competent Person, ICP)
� The sampling is risk based aimed at all SCE groups. SCEs are ranked in terms of criticality and drives number of verifications and offshore visits. The criticality is based on risk (consequence and likelihood of failure)
� Verification and Examination comprises witnessing and checking.
� All findings are recorded in database (BV-net)
� Findings are reported as Low, Medium or High priority. – For OneGas West approx. 100 findings/year (80% Low; 20% medium; no high
findings in past 5 years).
� Escalation (none received for OneGas UK in past 5 years):– “Note of Concern”, when too many findings or insufficient follow-up
– “Note of Reservation”, when “Note of Concern” not satisfactorily resolved.
� ~3.5 man years to execute the operational (~2.5) and modifications (~1) verifications for OneGas UK
24
Copyright 2006 Shell Global Solutions International BV Page 13
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
3rd party verification - Strengths and Points of Attention
Strengths Points of Attention
3rd party perceived as more independent than 1st party and/or 2nd party
More distant from primary business processes (e.g. projects, production and maintenance) and as such reactive
Verification Scheme/ sampling is risk based and agreed with Independent Competent Person
Independent Competent Person needs to be competent to verify variety of SCE groups in project and/or operate phase
Commercial interest of 3rd party verifier could hamper cross learning between verifiers
When 1st party assurance functions properly this could result in duplication of effort
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
3rd Party versus 2nd Party: Examples / Considerations
� 2nd Party Inspection of Pressure Equipment– Corrosion and degradation rate depends on material selection, medium
(CO2, H2S, acidity, salt, sand, ...), temperatures, flow regime, ...
– Heavily integrated with the primary production processes
– Business impact (shutdown duration and frequency)
� 3rd Party Inspection of Electric Systems– Less integrated with the primary process of exploring and producing
hydro carbons
– Mature and widely accepted industry practices
26
Copyright 2006 Shell Global Solutions International BV Page 14
L181 Basic Terminal Engineering Course Topic or Session or Module Name
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Independent Verification to prevent Major Accident
� First party independent verification supplemented with reviews and audits does provides the assurance required by the RDS board of its respective duty holders
� In case additional verification is deemed necessary (e.g. in eye of public) it would be most effective to focus on the primary barriers that prevent high energy release top events potentially leading to Major Accident scenario’s. Like:
– Pressure Containment – Pressure vessels, Pipelines, ...
– Shutdown systems, Emergency Shutdown valves, Pressure Relieve valves, ...
– Structural Integrity– Primary structure
� At present member states impose different requirements – “Inspection” NL: In depth on selected equipment - Pressure vessels; Life extension Primary
Structure; Cranes; Electric Installation; ....
– “Verification” UK: Risk based covering all SECE’s
27
Copyright of Royal Dutch Shell plc 7th EUOAG - 3rd of July 2014
Concluding Remarks
� The FOUNDATION is a solid Asset Integrity and Process Safety management process , with:
– proactive Leadership
– Competent Staff
– independent Technical Autorities
� Reviews and Audits (internal and external) assess the effectiveness of business processes, operational controls and management controls in ensuring compliance with processes, controls and external laws and regulations
� Goal setting , Risk Based and Tiered approach for inspection and verification
28
Copyright 2006 Shell Global Solutions International BV Page 15
L181 Basic Terminal Engineering Course Topic or Session or Module Name