Industry united on major safety issues

April 2011

The UK oil and gas industry has once again come together to tackle offshore safety issues head-on.

Two new agreements have recently been reached. Firstly, in a bid to drive further reductions in the number of accidental hydrocarbon releases, companies have committed jointly to cut leaks on their offshore installations by 50 per cent over the next three years. Secondly, an Asset Ageing and Life Extension network has been established to address asset integrity management issues linked to the ongoing Health and Safety Executive’s Key Programme 4 (KP4) inspections.

Action 1: Tackling hydrocarbon releases

As a result of unremitting efforts by the industry working collaboratively through Step Change in Safety, the UK’s flagship offshore safety initiative, the number of accidental hydrocarbon releases has already almost halved since 1997. Industry-wide workshops, the sharing of best practice on asset integrity, and the development and use of toolkits and guidance documents led to an early period of sustained year-on-year reductions. However, in recent years, this progress appears to have stalled and the industry is now keen to kickstart a further downward push on the statistics. While the new 50 per cent reduction target has been agreed by the UK offshore oil and gas industry as a whole, Step Change in Safety has asked the managing directors of its member companies to build this reduction target into their firm’s business plan.

As Step Change in Safety’s co-chair, John Forrest said: “I am very pleased by the industry’s strong commitment to tackle hydrocarbon releases and I’m encouraged that senior managers across the board have taken this opportunity to prove they put safety at the very forefront.”

Since Step Change in Safety was created in 1997, there has been a 44 per cent reduction in major and significant hydrocarbon releases; in the past decade, these have decreased from over 110 in 2001/02 to 85 in 2009/10. However, in the last few years the number of hydrocarbon releases has ‘flat-lined’ at around 60-85 leaks a year.

Mr Forrest said: “We took the decision that now is the time to redouble our efforts to drive this figure down even further. There are multiple barriers in place to stop releases of oil and gas and it’s important to remember that, even if they do occur, there are further multiple barriers to prevent them from escalating into a more serious incident. Nevertheless, safety is paramount and minimising the likelihood of a release occurring in the first place must be the priority.”

While the responsibility for halving the number of hydrocarbon releases will fall first and foremost to the companies managing the UK’s offshore oil and gas installations, Step Change in Safety will drive the reduction at an industry level by sharing with its member companies the analyses of the root causes of incidents, addressing the management of ageing assets, and circulating best practice, supported in particular by the experiences of the top performing companies.

Action 2: Asset Ageing and Life Extension network

The HSE’s key programme 4 (KP4), scheduled to run until September 2013, was set up last year to ensure effective management of the risks arising from operation of installations beyond their anticipated design life. It will also examine the ability of the offshore industry to take immediate action to make sure that installations and operations continue to be safe for the long term.

The Asset Ageing and Life Extension network was set up in January to share across the industry experience of safely managing ageing assets and to identify best practice in making decisions about extending the life of infrastructure. Chaired by Andy Lane, Talisman’s vice president of HSE and operational integrity, the network comprises representatives of duty holders, contractors and the HSE.

The asset ageing and life extension network’s remit is to:

  • Develop guidance on key aspects of asset ageing processes and life extension decision making
  • Develop communication channels through which the industry can share experience and learning on an ongoing basis
  • Engage with other organisations and industries to learn from their experience of managing ageing assets (eg from the nuclear industry)

Mr Lane said: “This network is part of the sector’s response to the HSE’s KP4 and marks a significant step forward for the UK oil and gas industry. By sharing experiences and setting out what constitutes good practice, it will improve the industry’s ability to manage asset ageing and life extension issues effectively.“The aim of the network is to share companies’ experiences in ensuring the safe operation of ageing assets. By defining the challenges encountered by companies across the industry and developing guidance to help tackle these issues, the sector will be equipped with a consistent and cohesive approach to ensuring the integrity of ageing assets and extending their life.”

For more information on Step Change in Safety’s agreement to cut the number of hydrocarbon releases, please email Stepchange in Safety.
For more information on the Asset Ageing and Life Extension network, please contact Bob Lauder.