October 2014 1 Copyright of Shell International Ltd

Øystein Knutsen HSSE Country Manager, A/S Norske Shell

1

A SOLID AND INTEGRATED HSE&Q COOPERATION FOR FUTURE SAFETY AT NYHAMNA

ORMEN LANGE KEY FACTS

2 April 2014

Copyright of Shell International Ltd

LOCATION FIELD: NORWEGIAN SEA ONSHORE FACILITY: NYHAMNA, NORWAY

CATEGORY DEEPWATER

OWNERSHIP SHELL – OPERATOR (17,8%) STATOIL (25,4%) PETORO (36,5%) DONG (14,0%) EXXONMOBIL (6,3%)

MAIN CUSTOMER

UK

KEY CONTRACTOR Kværner

DESIGN CAPACITY 70 mln Sm3/day

NYHAMNA ONSHORE FACILITY

3 October 2014 Copyright of Shell International Ltd

NYHAMNA EXPANSION

4 October 2014

THE IMPORTANCE OF LEADERSHIP

5 October 2014 Copyright of Shell International Ltd

Leaders are judged by what they say and do, not by their intentions

Leaders are role models whether they choose to or not

Goal Zero is possible

“Poor safety frankly means nothing else than a lack of leadership”

Peter Voser – former Chief Executive, Shell

PROCESS SAFETY VS. PERSONAL SAFETY

6 October 2014

Often fatal Rarely fatal

Senior Management Middle Management Workforce

SAFETY CRITICAL ELEMENTS

7 October 2014

Structural

Integrity Process

Containment Ignition

Control Detection

Systems Protection

Systems Shutdown

Systems Emergency

Response Life

Saving

Structural

Integrity Process

Containment Ignition

Control Detection

Systems Protection

Systems Shutdown

Systems Emergency

Response Life

Saving

Safe

Operation

Major

Accident

1 Deluge and

Monitoring

System

2 Fire and Explotion

Protection

4 Firewater

Pumps

11 Fixed Foam

Systems

5 Firewater

Ring Main

12 Sand Control

And Filters

8 Fine Water Spray

System

9Sprinkler

Systems

1 Emergency

Shurdown system

2 Depressuration

System

-

3 High Integrity

pressure protection

Systems

4 Well Isolation

5 Pipeline

Isplation Valves

2 Escape and

Evacuation Routes

3 Emergency Escape

Lighting

4 Communcation

Systems

5 Uninterrupted

Power supply

UPS

9 Process Control

And Alarms

10 Onshore Drain

Systems

2 Rescue Facilities

1 Fire and

Gas Detection

2 Water in Gas

Messurmentl

1 Hazardous Area

Ventilation

2 Non-Hazardous

Area Ventilation -

3 Certified

Elecrtical Eq.

5 Earth Bonding

7 InertgasSystem

8 Misc. Ignition Controll

Components

6 Fuel Gas

Purge System

1 Pressure Vessels

2 Heat Exchangers

3 Rotating

Equipment

4 Tanks

6 Pipelines

7 Relief systems

9 Gas Fired Heaters

11 Tanker Loading

Systems

13 Wireline

Equipment

Structural

Integrity Process

Containment Ignition

Control Detection

Systems Protection

Systems Shutdown

Systems Emergency

Response Life

Saving

Structural

Integrity Process

Containment Ignition

Control Detection

Systems Protection

Systems Shutdown

Systems Emergency

Response Life

Saving

Safe

Operation

Major

Accident

-

6 Emergency

Shutdown System

1 Subsea

Structures

2 Onshore

Structures

-

5 Piping systems

8 Well containment

15 Produced Water

Treatment

16 Mechanical handling

Equipment

PROCESS SAFETY MANAGEMENT

8 October 2014 Copyright of Shell International Ltd

OPERATING INTEGRITY BEST PRACTICES (OE)

9 October 2014 Copyright of Shell International Ltd

OPERATING INTEGRITY BEST PRACTICES (OE)

10 October 2014 Copyright of Shell International Ltd

OPERATIONAL EXCELLENCE BLADE 24 FIELD OPERATIONS

11 October 2014

1) VISIBILITY SUPERVISON AND

MANAGEMENT

2) OPERATING ENVELOPES

3) ALARM CATALOG

4) OPERATOR RESPONSE

5) AREA ACCOUNTABILITIES

6) OVERRIDE MANAGEMENT

7) DOCUMENT CONTROL

8) DOCUMENT ACCESS

9) PERMIT TO WORK

10) MANAGEMENT OF PERMITTED

OPERATION

11) HANDOVERS

12) EQUIPMENT LABELLING

13) OPERATOR INTEGRITY ROUNTINES

14) MANAGEMENT OF CHANGE

15) DYNAMIC HAZARD ANALYSIS

16) PERFORMANCE REPORTING

17) LEGISLATIVE REQUIREMENTS

18) COMPETENCE

19) STATEMENT OF FITNESS

Procedures exist and are in use on structure and content

of the meetings, with the standard local templates for

reporting and clear transfer of responsibilities. The

Facility has a procedure which is applied across the

Facility, as required. It requires verbal and documented

handover for sites with continuous operations. Handover

looks at both what has happened and what is planned to

happen. Line managers periodically check

implementation. All levels of the organisation have access

to the shift reports.

An actively used effective system is in place to manage

competencies, which provides proactive notification of

competence expiry. Competent stand-ins/deputies are in

place and activities are managed/adjusted to reflect

available competencies. No deviations are in place.

THE IMPORTANCE OF PLANNING AND DISCIPLINE

12 October2014 Copyright of Shell International Ltd

KEEP IT SIMPLE

13 October 2014

CONTINUOUS IMPROVEMENT

14 October 2014

THE IMPORTANCE OF LOOKING FOR WEAK SIGNALS

15 October 2014

CHRONIC UNEASE

Organisation

Our Safety Case is a powerful tool to manage our key risks

We know and see all our risks. We mitigate them

proactively together Our HSE data is always complete, accurate and

timely

To comply is instinctual in everyone here

Our Safety Leaders Are Constantly Visible, High Impact and Credible

I want to learn from incidents. I teach and I coach others

Risk - I am relentlessly curious– “ I always look behind the greens”

Feedback On Risks (Encourage reporting of bad news) – I

demand it, I listen for it and I action it

Chronic unease – if I don’t feel it, I cause it!

Challenge risk normalisation - I don’t accept erosion of controls

Self

Cumulative risk – are we in control of the cumulative risk ?

KEY POINTS IN SUMMARY

Safety Leadership

Best Practices

Planning & discipline

Keep it simple

Continuous Improvement

Look out for weak signals (chronic unease)

16 October 2014 Copyright of Shell International Ltd