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Perth 4th March, 2010

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APPEA AWIC UPDATE

Mutual AidSelf Audit Checklist

Source Control – First Response

Presenter: Tom Nolan Perth 1st March, 2012






WHAT IS APPEA?

The Australian Petroleum Production & Exploration Association(APPEA) is the peak national body representing Australia’supstream oil and gas industry. The association has more than 80 fullmember companies that explore for and/or produce oil and gas inAustralia and more than 220 associate member companies thatprovide goods and services to the upstream oil and gas industry.

www.appea.com.au

http://www.appea.com.au/�






Working through the APPEA Montara Taskforce, the industry has developed a program of collaborative activities aimed at improving Australia’s well incident prevention, intervention and response capability. This work has delivered:

1 A new self-audit tool to provide guidance for integrating permit holders’ and contractors’ well operations safety management systems

2 A memorandum of understanding on mutual aid for companies to assist each other and share equipment when responding to offshore well incidents

3 A commitment to designing and constructing a well capping solution for Australian conditions

4 Increasing collaboration within the Australian offshore drilling industry, including the establishment of a new APPEA Well Integrity and Safety Committee

5 Expanding the Australian petroleum industry spill response capability including through AMOSC.






AUSTRALIAN INDUSTRY SOURCE

CONTROL CONTINGENCY PLAN UPDATE

2 FEBRUARY 2012APPEA - AWIC SUBCOMMITTEE ON SOURCE CONTROL






• What was highlighted during recent high profile well control incidents?– Each of the incidents could have been prevented– Each company must ensure rigorous adherence to safe operating

guidelines, competency requirements, and suitable contingency planning

– The regional industry has a part to play in helping to prevent and responding to major incidents

APPEA Drilling Steering Committee was created in response to Montara

OIL AND GAS OPERATORS IN AUSTRALIA ARE COMMITTED TO SAFE AND RELIABLE OPERATIONS

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• Three levels of engagement:– Individual companies– National groups such as APPEA and AMOSC– International groups such as OGP / SWRP

• Focused on engagement for– Prevention– Intervention– Response capability

HOW ARE WE RESPONDING?

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• Operators reacted individually

– Self-audits of systems and standards

– External audits of systems and standards

• Industry collaborated together to assist– APPEA Self-Audit Checklist– Common Safety Training

Program

EARLY / CONSTANT FOCUS ON PREVENTION

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• Our requirement: Without delay - to manage an offshore incident and stop release of hydrocarbons as quickly, effectively and efficiently as possible.

• APPEA / AMOSC are already bridging across operators to ensure timely and thorough emergency response– Mutual Aid Memorandum of Understanding– Input and cooperation with the International Association of Oil and

Gas Producers (OGP) on Well Integrity and Subsea Well Response

– National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances

PLANNING FOR THE POSSIBILITY – INTERVENTION AND RESPONSE CAPABILITY

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• Australian region capability for intervention and response to a subsea well control incident requires enhancement

– Equipment required for emergency subsea intervention response

– Ongoing service for specialty equipment to ensure operational readiness

– Evergreen planning for deployment • Regional vessel and ROV surveys• Equipment specific procedures • Emergency response drills

WHAT GAPS REQUIRE ACTION?

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• Source control at the well - Each operator, as part of their Well Operations Management Plan is responsible for ensuring a contingency plan is developed based on well requirements– Contingency plans should be in place to cap a well, if applicable,

in the event of a subsea well control incident– Operator should demonstrate access to equipment capable of

capping the well without delay to the response– Capping equipment can be sourced through OGP / SWRP,

proprietary company equipment, or commercial consortium

• Surface response to an underwater hydrocarbon release – As with other spills, AMOSC has provides equipment, training, and personnel

• Emergency first response equipment – Proposed to be contracted through AMOSC

HOW WE PLAN FOR SUBSEA WELL CONTROL CONTINGENCIES?

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• First response equipment is defined as the specialised equipment that will be in the region for immediate mobilisation at the onset of a subsea well control event.

• Equipment that will enhance the local capability to respond quickly to a subsea well control event.

• Equipment needed to make the surface area around a subsea drill center safe, and prepare the well for an intervention (capping stack) if appropriate.

WHAT IS “FIRST RESPONSE EQUIPMENT”

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• Specialty ROV tasks– Intervene on existing BOPs and function them hydraulically– Area surveys, maps, and video recordings– Set sonar arrays for equipment guidance during deployment

• Apply subsea dispersant to make surface safe for work

• Clear debris, risers, or disconnect LMRP as required to allow capping stack engagement

NOTE: All of the above tasks must be completed before an intervention (capping stack) can be considered

WHAT CAN FIRST RESPONSE EQUIPMENT DO?

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Work class ROV - Multiple ROVs work in Western Australia at any

given time

PRIMARY EQUIPMENT IS DESIGNED FOR AN ROV

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Torque tools and hot-stab tools that allow BOP override with an ROV






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SUBSEA HYDRAULICS ALLOW TOOL USE AND FASTER BOP CLOSURE

Subsea hydraulic accumulator






KEEP THE AREA SAFE FOR OPERATION

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Visibility isn’t guaranteed 3D Sonar Gives a “Picture”

Sonar buoys can mark specific hazards or safe zones






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SUBSEA DISPERSANT MAY BE REQUIRED – SURFACE VESSELS






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Tools such as shears and saws are instrumental in removing choke and kill lines, drill pipe, even drilling riser

PREPARE FOR DEPLOYING THE CAPPING STACK






• Work class ROV (s)

• Deployment vessels (can be large lift vessels or even anchor handling vessels)

• Coiled tubing unit

• Possibly a heavy lift vessel or drilling rig if relief well or capping stack deployment is necessary

WHAT EQUIPMENT IS REQUIRED THROUGH MUTUAL AID

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• Scope of First Response Equipment under final review by full APPEA Australia Well Integrity Committee:– Lease of equipment required to prepare location and wellhead for

intervention operations– Dedicated storage and maintenance of all equipment– Deployment planning and operational readiness reviews

• List of 5 potential suppliers has been developed– SWRP will be requested to submit a proposal for Australian First

Response Equipment package

• AMOSC and APPEA have agreed a funding mechanism that allows affordable access to all Australian operators

INDUSTRY COMMITMENT

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• AMOSC to own and manage contract with specialist service provider

• Service provider owns, operates and maintains all equipment

• Equipment is leased to AMOSC under a service agreement

• Call-out rates for equipment to be included in AMOSC contract – any field operations to be paid by member requiring services

COMMERCIAL FRAMEWORK PRINCIPLES

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• Tiered membership structure (sub-membership within AMOSC)– Allows for all companies with subsea drilling operations to

participate at reasonable cost– Tiers aligned by historical rig operations over the past 5 years;

but flexible to allow for predicted future activity

• Lower joining fee for Foundation Members of all tiers during first 6 months

• Re-entry fee structure designed to encourage sustained membership by all companies

• Details and tier denominations to be finalized after bid results are received and compiled

COMMERCIAL FRAMEWORK PRINCIPLES

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“The meeting with the Minister went very well and the principles as outlined in the attached presentation were well received.”

• The minister is seeking to announce the outcomes of this work at the APPEA conference in Adelaide – May 13th – 16th

• Action list has been prepared with APPEA and source control sub group of AWIC to award tender for first response by end of April

MEETING OUTCOME & WAY FORWARD

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Acknowledgements:

• Thanks to APPEA website

• Thanks to Kent Bonner – Apache for content of slides from a presentation made to Hon. Minister Ferguson, APPEA Board and some MD’s.






QUESTIONS

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