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HEALTH & SAFETY REPORT 2012

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Page 1: HEALTH & SAFETY REPORT 2012oilandgasuk.co.uk/wp-content/uploads/2015/05/HS074.pdf · 2018-08-22 · 6 OIL & GAS UK HEALTH & SAFETY REPORT 2012 2. Safety Performance The UK offshoreoil

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Contents

1. Foreword 5

2. Safety Performance 6

3. Oil&GasUK’sWorkinRepresentativeBodies 13

4. SignificantIssuesandActivities 16

5. RegulatoryConsultations 20

6. Publications 21

7. Oil&GasUKSafetyEvents 23

8. StepChangeinSafety 25

9. 2012FocusAreas 27

10.Appendix 32

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1 ThefullOSPRAGreportisavailableandcanbedownloadedat: http://www.oilandgasuk.co.uk/publications/viewpub.cfm?frmPubID=412.

1. Foreword

HealthandsafetycontinuestobeapriorityissuefortheUKoffshoreoilandgasindustryandadeterminingfactorinitsoverallsuccess.Exploitationofoffshorehydrocarbonresourcesisinherentlyhazardousandthoseinvolvedintheindustryapplysignificantefforttomanaginghealthandsafetyrisksandachievinggoodlevelsofhealthandsafetyperformance.OurapproachtohealthandsafetymanagementintheUKoffshoreoilandgasindustryhasbeenshapedbysignificantlearningovertheyearstothepointwherewehaveanexemplarmajorhazardregulatoryregimedrivingresponsibleandeffectivemajorhazardmanagement.

Thisreportssetsouttodescribesomeofthosehealthandsafetymanagementapproachesandtosummariseperformanceresultsinthereviewperiodof2011/12.ItalsodescribesthepartOil&GasUKanditsmembercompaniesplayinmanagingtheindustry’shealthandsafetyagendaandstrivingforcontinualimprovementinhealthandsafetyperformance.

TheDeepwaterHorizon(Macondo)disasterofApril2010continuedtocastalongshadowovertheindustrythroughout2011andislikelytodosoin2012andbeyond.Oil&GasUKandpartnerorganisations,intheformoftheOilSpillPreventionandResponseAdvisoryGroup(OSPRAG),identifiedandtackledanumberofpost-MacondochallengesfacingtheUKoffshoreindustry.OSPRAG’sfinalreport1setsoutthemanyachievementsofthegroupandillustrateshowitslegacywillbetakenforwardbyotherOil&GasUKnetworksandworkgroups.

DeepwaterHorizonalsogaverisetoanumberofinvestigationsandreviewsatnationalandinternationallevelsandthosereviewsreportedandmaderecommendationsduring2011.ReferenceismadeinthispublicationtotheMaitlandReportandinparticulartotheproposalsfornewEuropeanUnion(EU)regulationofoffshoreoilandgashealthandsafety.WebelievetheEUregulationproposalisill-consideredandpoorlyconceivedandwecontinuetomarshaloppositiontoit.WeseekadirectivethatwouldhavelessofanadverseeffectonexistingrobustlegislationintheUK.

Locally,thereisincreasedregulatoryandoperationalfocusonassetageingandlifeextensionandtheindustryistakingpositivestepstoensurethatthesearemadeprominentincompanies’managementsystemsandbusinesspractices.Aconsistentkeyelementofmajorhazardmanagementisthepreventionofhydrocarbonreleases and the industry now has a declared improvement target – a 50 per cent reduction –which isdescribedanddiscussedinthisreport.

Intermsofperformance,theUKoffshoreoilandgasindustryhasmadesignificantimprovementovertimeagainstanumberofkeymetrics.Regrettablywehavetoreporttwofatalitiesin2011;thefirstUKcontinentalshelffatalitiesinafour-yearperiod.Thisemphasisestheneedforcontinuedfocusonourhealthandsafetyeffortsandsustainablelongertermperformanceimprovement.

AnyfeedbackonthisreportwillbewelcomedandshouldbedirectedtoOil&GasUK’shealth,safetyandemploymentissuesdirector,RobertPaterson,[email protected].

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2. Safety Performance

TheUKoffshoreoilandgasindustryhasagoalofbecomingthesafestoilandgasexplorationandproductionprovinceintheworldandputssignificanteffortintoachievingthisgoal.Thissectionoutlineskeyaspectsofthesector’srecentsafetyperformanceusinganumberofmetricsandarangeofreferencesources2.

2.1. Injuries

DespitethefactthattheUKoffshoreoilandgasindustryisamajorhazardindustry,thesectordemonstratesarelativelylowlosttimeinjuryrateandhas,formanyyears,outperformedanumberofcomparativelylowerhazardindustrialsectorsintheUK,asshowninthechartbelow.

Figure 1: The Three-year Average (2008 to 2011) Non-Fatal Injury Rate to Workers by UK industry Sector per 100,000 Workers (Source: HSE)

LastyearOil&GasUKwelcomedthepublicationoftheHealthandSafetyExecutive(HSE)’soffshoresafetystatisticsreport3.Thedocumentpresentedanoticeableandsteadyreductionintheincidenceofover-three-dayinjuries,reachinganalltimelowof386.8per100,000workersin2010/11andrepresenting a reduction of almost 70 per cent in the last 15 years (see diagram below).Thecombinedmajorandfatalinjuryratedepictedoverleafshowsafluctuatingtrendbutoverallitismaintainingasteadydecline.

Figure 2: Over-Three-Day Injury (below) and Combined Major and Fatal Injury Rates (on page seven) for the UK Offshore Oil and Gas Industry (Source: HSE)

2 Lagtimeinthedevelopmentandverificationofstatisticsmeansthat2011dataarenotavailableforallmetricsusedinthisreport.

3 Pleasevisithttp://www.hse.gov.uk/offshore/statistics/stat1011.htmtoviewthefullreport.

1,670 Transport/Storage

750

280

470

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0 200 400 600 800 1000 1200 1400 1600 1800

All Industries

Finance/Business

Education

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Estimated Rate of Reportable Non-Fatal Injury to Workers by UK Industry Sector (Standard Industrial Classification), per 100,000 workers, from 2008 to 2011

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74 OGPSafetyPerformanceIndicators–2010data(http://www.ogp.org.uk/pubs/455.pdf).

Worldwide comparative accident statistics are published by the International Association of Oil and GasProducers(OGP).Figure3belowcomparesregional losttimeinjuryfrequencies(LTIF)for2010foroilandgassectorsinEurope.WhilsttheUKisbelowtheEuropeLTIFaverage,theOGPstatisticsshowthatwehavesomewaytogobeforeoursafetyperformancematchesthebestregionsintheworld.Globalcomparisonsofthistype,however,shouldusuallybetreatedwithcaution,duetopotentialinconsistenciesarisingfromdifferencesinthereportingconstituencies(e.g.intermsofthecompaniesthatmakeupthedifferentOGPandOil&GasUKreportingcommunities).

Figure 3: Lost Time Injury Frequencies in 2010 for Oil and Gas Sectors in Europe (Source: OGP)4

2.2. Oil & Gas UK Benchmarking

Eachyear,Oil&GasUKcarriesoutsafetyperformancebenchmarkingfordutyholders.Thepurposeofthebenchmarking is togainanoverviewofUK industry safetyperformanceand to informoperatormembercompanies of their reportable incident frequencies compared with their peer companies. Results arepresentedonananonymousbasisbutindividualresultsareissuedtooperatorcompaniesthroughtheirOil&GasUKHealth&SafetyForumrepresentatives.

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ThebenchmarkingusesincidentdatafromtheHSEandmanhourdatafromtheVantagePersonnelOnBoard(POB)trackingsystem,whichensurestheconsistencyandaccuracyoftheresults(seefigure4below).

Figure 4: Oil & Gas UK’s safety performance benchmarking methodology

Benchmarkingcovers:

• Reportable Injuries (fatal, major and over-three-day injuries) according to the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR)

• RIDDOR reportable dangerous occurrences

• Hydrocarbon releases (reported to the HSE under RIDDOR)

ManhoursdataarecalculatedfromVantagePOB

X 1,000,000

OIR12/OIR9BreportsuppliedfromtheHSEforbenchmarkingpurposes

• Calendaryearbased• Platformandlinkedinstallationsonly• Ratespermillionmanhours,basedon12hourdailyexposure

Number of Incidents

Daily POB Figure

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Figure 5: Examples of Oil & Gas UK’s 2011 safety performance benchmarking results

The year-on-year decrease in the frequency of over-three-day injuries, continuing an improving trend inrecentyears,isencouraging,asistheimprovementinthefrequencyofdangerousoccurrencesin2011.

Whileweacknowledgethatingeneralsafetyperformancetermsstrongprogresshasbeenmade,anyseriousinjuryordeathisarealconcernandsomethingtheindustrystrivestoavoidatallcosts.In2011,weregrettoreportthatthereweretwofatalities(afallfromheightandadivingfatality).Thisfollowsfouryearswithoutafatality.NotethatthesereportedincidentsexcludeaviationandmarineincidentsasthesearereportedtoauthoritiesotherthantheHSE.

2.3. Asset Integrity Key Performance Indicators

Since2000,theHSEhashadaspecificfocusonreducinghydrocarbonreleases(KeyProgramme1).Thiswasfollowed laterbyawider focusonasset integrity issues (KeyProgramme3).TheKeyProgramme3 (KP3)inspectionprogramme,which ran from2004 through to2007, focusedonasset integritymanagement. It

Reporting Operator Companies

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Industry Average 2011 = 1.58

Industry Average 2010 = 1.82

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defined“assetintegrity”astheabilityofanassettoperformitsrequiredfunctioneffectivelyandefficientlywhileprotectinghealth,safetyandtheenvironment.“Assetintegritymanagement”wasdefinedasthemeansforensuringthatthepeople,systems,processesandresourcesthatdeliverintegrityareinplace,inuseandwillperformondemandovertheasset’slifecycle.

OneofthemanyresponsesfromtheUKoffshoreoilandgasindustrytoKP3wastodevelopadditionalassetintegrityrelatedkeyperformanceindicators(KPIs).TheaimwasthattheseKPIswouldprovideaconsistentdemonstrationofindustryprogressinassetintegritymanagementovertimeandcomplementhydrocarbonreleasestatistics.In2005,UKOOA(nowOil&GasUK)setupaworkgrouptoidentifyanddevelopanumberofmeaningfulindicatorsresultinginthefollowingKPIs:

• KPI-1–HydrocarbonReleases

• KPI-2–VerificationNon-Compliances

• KPI-3–Safety-CriticalMaintenanceBacklog

Theserepresentavalidmixofleadingandlaggingindicatorsasillustratedbythepyramidstructurebelow.TheHSEmanagesthehydrocarbonreleasedata,whileOil&GasUKcollatesandmanagesKPI-2andKPI-3data.

Figure 6: Current Asset Integrity Key Performance Indicators used in the UK Offshore Oil and Gas Industry

KPI-1 Hydrocarbon Releases

Hydrocarbonreleases(HCRs)areleaks.TheHSEsetuptheHCRreportingschemein1992inresponsetooneofLordCullen’srecommendationsinhisreportonthePiperAlphadisaster.DutyholdersofoffshoreinstallationssupplythedatacontainedontheHCRsystemtotheHSE.TheserelatetoincidentsinvolvingHCRsthatarereportedundertheReportingofInjuries,DiseasesandDangerousOccurrencesRegulations1995(RIDDOR).HCRsareclassifiedasmajor,significantorminor5basedontheirpotentialtocauseamajoraccidentifignited.

Industry-wideworkshops,sharingbestpracticeonassetintegrity,andthedevelopmentanduseoftoolkitsandguidancedocumentsledtoanearlyperiodofsustainedyear-on-yearreductionsinmajorandsignificantHCRs.In2010,theUKoffshoreindustry’ssafetyinitiative,StepChangeinSafety,agreedwithallitsmembercompaniestoredoubletheeffortstoachievea50percentreductioninthenumberofreportableHCRsbytheendofMarch2013,measuredagainstthe2010totalHCRsfigureof187.

InApril2012,theHSEpublisheddata(showninfigure7)thatconfirmcontinuingimprovement.Twoyearsintotheprogramme,thereisreasonforconfidencethatthe50percentreductiontargetfigurecanbeachieved.AlthoughthereductiontargethasbeensetforallHCRs,the40percentdecreaseinmajorandsignificantreleasesoverthelasttwoyearsisparticularlypleasing.Theindustryisnotcomplacent,however,andremainsfocusedoneffortstoeliminateHCRsaspotentialcontributorstomajoraccidentsoffshore.

5 ThedefinitionsofHCRseveritiescanbefoundontheHSEwebsiteat: https://www.hse.gov.uk/hcr3/help/help_public.asp#Severity.

KPI-1Hydrocarbon

Releases

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6 “Safety-criticalelements”meansuchpartsofaninstallationandsuchofitsplant(includingcomputer programmes),oranypartthereof— •thefailureofwhichcouldcauseorcontributesubstantiallyto;or •apurposeofwhichistoprevent,orlimittheeffectof,amajoraccident.

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Figure 7: Number of Hydrocarbon Releases Occurring Offshore (Source: HSE)

KPI-2 Verification Non-Compliances

Thesafety-criticalpartsofoffshoreinstallationsaresubjecttoaverificationprocesstoensurethattheyaresuitablefortheir intendedpurposeandremainingoodconditionandrepair.Verificationisundertakenbyindependentcompetentpeople.VerificationfindingsarerankedasLevel1,2and3withbroadconsistencyinthoseclassificationsbetweenverifiers.KPI-2monitorsandmeasuresLevels2and3non-compliances,thosebeingthemoresignificantfindings.

TheLevel3findingsrepresentthemoreseriousmattersofconcernidentifiedbytheindependentcompetentperson(ICP).Theyoftenresultwhenasafety-criticalelement(SCE)6 fails to meet its performance standard andpresentanimmediaterisktopersonnelontheasset.Asmightbeexpected,theaverageLevel3findingsperinstallationareverysmall,sothetotalnumberacrossallinstallationsismonitored.Thereisanexpectationthat mitigationmeasures (agreed with the relevant technical authority) are in place while the findingremains open.

FromQ12008toQ42011,theindustryhasconsistently reduced the number of open Level 3 findings from 35 to only seven (an 80 per cent improvement)asshowninfigure8below.Theindustrycontinuestofocuseffortandattentiononthiscriticalareaofperformance.KnowledgeandexperiencefromcompanieswhohadLevel3findingsaresharedanddiscussedatthequarterlyworkgroupmeetingsmanagedbyOil&GasUK.

Figure 8: Total Number of Level 3 Verification Non-Compliance Findings Remaining Open at the End of a Quarter

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KPI-3 Safety-Critical Maintenance Backlog

KPI-3producesareportofthetotalnumberofbackloghoursforplannedsafety-criticalmaintenancethatisbeyonditsscheduledcompletiondate.Thisexcludesbacklogmaintenancethathasbeensubjecttoaformalandrobustdeferralprocessinvolvingrelevanttechnicalorengineeringauthorities.

Ascanbeseeninfigure9below,thedatashowaseasonal(cyclic)nature,probablyreflectingcampaignmaintenancepatterns(e.g.plannedmajormaintenanceshutdowns). Ithasnowbeenrecognisedthatreportingbacklogs intermsofmanhoursonly isnotentirelyhelpful tounderstanding thesignificanceofbacklogs.Changeshavebeenmadetothe scheme to show thebacklogasapercentageof totalplanned safety-criticalmaintenanceas that is likely tobemorerelevantandmeaningful topeople reviewingandassessingmaintenancebacklog.2012datawill includepercentagefigures.

Figure 9: Average Number of Planned Maintenance Manhours in Backlog per Installation

Thetwocross-industryleadingindicators(KPI-2andKPI-3)wereincludedintheHSEOffshore Safety Statistics Report for the first time in 2011 to provide useful additional evidence of the offshore industry’s major hazardmanagement performance.

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3. Oil & Gas UK’s Work in Representative Bodies

TheOil&GasUKHealth,SafetyandEmploymentIssuesDirectoratemanagesabroadrangeofissues.ItworkscloselywithStepChangeinSafetytowardsthegoalofmakingtheUKthesafestplacetoworkintheworldwideoilandgasindustry.Thehealthandsafetyteammanagesandcoordinatesthedevelopmentofcooperativesolutionstoawiderangeofhealthandsafetyissuesonbehalfoftheupstreamoilandgasindustry.Itsforumsandworkgroupsareshownbelowanddetailedoverleaf:

Figure 10: Current Oil & Gas UK Health & Safety Forums and Work Groups

Health & SafetyForum

Industry Guidelines on a Framework for Risk Related Decision Review

Group

Asset Ageing & Life Extension Steering

Group

NUI Helideck Firefighting

Equipment Work Group

Supplementary Guidelines

for Reporting Hydrocarbon

Releases Review Group

Major Hazards Management

Forum

Asset Ageing & Life Extension

Network

Aviation Safety Technical Group

Asset IntegrityKPI Work Group

StructuralNetwork

Oil & Gas UK Health, Safety & Employment

Issues Directorate

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Oil & Gas UK Health & Safety Groups

Chairman Participants Functions / Activities

Health & Safety Forum

BobLauder(Oil&GasUK)

H&S managers oradvisorsfrombothoperatorandcontractormembercompanies

TheH&SforumisacentreforcommunicationbetweenOil&GasUKandmembercompaniesonawiderangeofhealthandsafetyissuesaffectingtheUKupstreamoilandgasindustry.Itprovidestheindustrywithaplatformtoengagewiththeregulatorsandotherstakeholders.Itproposesandsupportsresearch,studiesandanalysistoensureappropriatehealthandsafetyimprovementstrategiesandactionsaredeveloped.TheforumalsolinkstoStepChangeinSafety.Meetingsareheldquarterly.

Major Hazards Management Forum (MHMF)

DavidPiper(Petrofac)

Technicalsafetyprofessionals

Specialistknowledge,opinionandoperationalexperiencearesharedattheforummeetingstodeliverguidanceonmajorhazardmanagementissues.ThegroupalsotakesaccountofrelevanthazardmanagementdevelopmentsinothermajorhazardindustriesandprovidesinputtotheHSE’sresearchproposalsandconsidersthepracticalimplementationofthatresearch.

Asset Ageing & Life Extension Network

BobLauder(Oil&GasUK)

Assetintegrityandageing and life extensionpersonnelfrommembercompanies

ThisnetworkwasestablishedinresponsetoKP4todevelop,communicateandhelpimplementacohesiveandconsistentapproachtomanagingassetageingandlifeextensionissueswithintheUKcontinentalshelf.Formoredetailpleaseseesection4.5.

Aviation Safety Technical Group (ASTG)

RobertPaterson(Oil&GasUK)

Technicalaviationexpertsfrommembercompanies,helicopteroperators,regulatorsandotherindustryorganisations

TheASTGsupportstheStepChangeHelicopterSafetySteeringGroup(HSSG)byprovidingandmaintainingtechnicaloversightofaviationmattersandpromotinganindustrypositiononawiderangeofissues.Thegroupworkswithstakeholderstoensurerisksareidentifiedandmeasuresareinplacetoensuretheindustry’saviationsafetystandardsaremaintainedtoahighlevel.Italsopromotesaviationindustryinitiativesandefficientuseofresourcesbyencouragingthedevelopmentanduseofcommonstandards,theproductionofjointindustryguidelinesandproceduresand,ifrequired,influencingthedevelopmentoramendmentofappropriateregulations.Meetingsareheldquarterlyalongwithanannualaviationseminar.

Asset Integrity KPI Work Group

BobLauder(Oil&GasUK)

Verificationandmaintenance management personnel

ThegroupsuppliesKPI-2(VerificationNon-Compliances)andKPI-3(Safety-CriticalMaintenanceBacklog)dataeachquarter.Theanalysedresultsarepresentedanddiscussedattheworkgroupmeetings.

Structural Network BobLauder(Oil&GasUK)

Structuralspecialists AnewOil&GasUKnetworkforstructuralspecialistswasformedin2012tofacilitateacohesiveindustryapproachtoanumberofstructuralintegrityrelatedmattersaffectingdutyholders.ThenetworkwillfunctionmainlyviatheOil&GasUKextranetbutwillmeetasrequiredtoidentifykeyissuesandtoagreeappropriate response strategies.

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TheOil&GasUKHealth,SafetyandEmploymentIssuesDirectorateisactivelyinvolvedininfluencingawidevariety of other industry and external stakeholder groups. Figure 11 shows current examples of externalinvolvement.

Figure 11: Examples of the Oil & Gas UK Health, Safety and Employment Issues Directorate’s work in representative bodies7

7 Acronymsareexplainedintheglossaryinsection10ofthisreport.

Step Changein Safety

Oil & Gas UK Health, Safety

and Employment Issues

Directorate

OPITONOIA

EPOL OIAC (HSE)

OGPEERTAG

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4. Significant Issues and Activities

Overthecourseofayear,Oil&GasUKdealswithadiverserangeofsubjectsand issuesonbehalfof itsmembership.Typically,theseareissuesthathavethepotentialtoaffectlargesections,orindeedall,oftheindustry,orthatrequireorwouldbenefitfroman industry-ledratherthancompany-specificsolution.ThefollowingareexamplesofrecentkeyissuesmanagedbyOil&GasUK,someofwhichareongoing.

4.1. Proposed European Union Regulation on Offshore Oil and Gas Safety

As part of its response to the Deepwater Horizon disaster in April 2010, the European Commission (EC)initiatedareviewofhealthandsafetypracticesandthelegislativeframeworkrelatingtooffshoreoilandgasexplorationandproductionactivitiesacrosstheEU.ThereviewconcludedthattheriskofamajoroffshoreaccidentinEUwatersremainsunacceptablyhighandtheexistingfragmentedlegislationanddiversepracticesdonotprovideforallachievablereductionsinrisk.Asaresultofthatreviewanditsconclusions,on27October2011,theECissuedaproposalfora“Regulationonsafetyofoffshoreoilandgasprospection,explorationandproductionactivities”.

ThroughouttheperiodleadinguptothisproposalithadbeenevidentthattheECregardedtheUKlegislativeregimeasanexemplar,andthedraftregulationdrawsonUKregulationforasignificantpartofitscontent.However,Oil&GasUKconcludedthattheproposedregulationisunacceptableasitwouldhaveanimmediatedetrimentaleffectonsafetystandardsintheUKoffshoreoilandgasindustryandwouldprovidenosignificantimprovementinoverallsafetystandards.

Oil&GasUKalsocommissionedGLNobleDentontoreviewtheimpactassessmentundertakentosupportthe regulation. This review concluded that the EC impact assessmentwas fundamentally flawed and thejustificationfortheproposedregulationinvalid.

Oil&GasUKhasbeenactiveinleadingoppositiontotheproposedregulationandinadvocatingawell-drafteddirectiveasamoreappropriateandeffective legal instrumenttodrive improvedsafetyacrossoilandgasproducingEUmemberstates.Oil&GasUKkeptitsmembercompaniesinformedandengagedonthistopicthroughasteeringgroupandacomprehensivepositionpaperwhichincludesaccesstotheGLNobleDentonreviewoftheECimpactassessment8.Thisisanongoingissueinto2013(seesection9.1ofthisreport).

4.2. Maitland Review and Report

InMarch2011,theDepartmentofEnergyandClimateChange(DECC)appointedProfessorGeoffreyMaitlandchair of a review panel to consider findings fromofficial reports into the circumstances surrounding theDeepwaterHorizonaccidentofApril2010.Thepanel’sprincipal rolewastoreviewtherecommendationsmadeinthosereports,andtoconsidertheirrelevancetotheUKoffshoreoilandgasindustryandtheextenttowhichtheymightinformmodificationorimprovementoftheUKregulatoryregime.InadditiontoreviewingUKregulation,thepanelconsultedwithOil&GasUKandrepresentativesfrommembercompaniestogainanappreciationoftheeffectivenessoftheUKregulatoryregimeincontrollingmajoraccidenthazards.

ThepanelpublisheditsformalreportinDecember20119.Thereportnotesthat“thepanelwasreassuredthattheUKregimealreadyincorporatesanumberofpositivekeyfeaturesthatwerenotpresentintheUSatthetimeoftheMacondoincident”.Thereportgoeson,however,tomakeanumberofrecommendationsforimprovementandtheindustryisrequiredtorespondonthosematterswithinitscontrolbyJuly2012.WorkisongoingwithinOil&GasUKandtheregulatorstopursueandcloseoutimprovementactions.

4.3. Post-OSPRAG Arrangements

TheworkoftheOilSpillPreventionandResponseAdvisoryGroup(OSPRAG)isreferredtointheforewordofthisreport.OSPRAGwoundupinQ32011,andaspartofthatprocess,itwasidentifiedthatmechanismswerestillrequiredtocontinueOSPRAG’sgoodworkandtohelpembedthegoodpracticesinplaceordevelopedbytheUKindustryinthewakeofDeepwaterHorizon.

8 Thepositionpapercanbefoundhere: http://www.oilandgasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=1914.

9 ThereportcanbefoundonDECC’swebsiteat: http://www.decc.gov.uk/publications/basket.aspx?FilePath=11%2fmeeting-energy-demand%2foil-gas%2f3875-offshore-oil-gas-uk-ind-rev.pdf&filetype=4&minwidth=true#basket.

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TheWellLifeCyclePracticesForum(WLCPF)wasformedandcomprisesseniorwellsanddrillingpersonnelfromoperatorandcontractormembercompanies,theHSEandDECC.WorkgroupswereformedbyWLCPFtodevelopandpublishguidelinesonblowoutpreventer(BOP)issues;reliefwellplanningrequirements;lifecyclewellintegrity;competency,behavioursandhumanfactors;andwellexaminationandverification.

AnOilSpillResponseForum(OSRF)comprisingseniorenvironmentalpersonnelfromoperatorandcontractormembercompanieshasalsobeenformed.OSRFhassixworkgroups:

• OilSpillTreatmentOptions

• EnvironmentalSensitivities

• OPEP(OilSpillPreventionandEmergencyPreparedness)

• AccreditedRespondersManagement

• OilWasteManagement

• OilSpillModelling

4.4. The Health and Safety Regulatory Impact Assessment

ThepolicygroupwithintheHSE’sOffshoreDivisionapproachedOil&GasUKmid-2011forsupportonanexercisetoidentifythecoststotheoffshoreindustryofcompliancewithhealthandsafetyregulationsbeyondthebasicrequirementsoftheHealth&SafetyatWorkAct.Essentially,thatinvolvescompliancewiththesuiteofmajorhazardregulationswhichincludesinstrumentssuchastheSafetyCaseRegulations.

Theobjectiveof theexercisewastoestablishacostbaselineagainstwhichthefinancial impactof futureneworrevisedlegislationcouldbeassessed.Oil&GasUKassembledafocusgroupfromamongdutyholdermembersandthatgroupprovidedcostestimatesacrossarangeofregulatorycomplianceitems.Apeergroupofdutyholdermemberrepresentativesthenvalidatedthoseestimates.Thefinalreportwillbecirculatedtoourdutyholdermembercompanies.TheHSE’spolicyandeconomics staffcommented favourablyon theprocessandthesupportprovidedtotheexercisebyindustrypersonnel,andbelievesthatthisisprobablythemostrobustimpactassessmentundertakenbyanyindustrialsectorintheUK.

4.5. Ageing and Life Extension (HSE Key Programme 4)

TheHSEKey Programme4 (KP4) focuses on themanagement of asset ageing and life extension by dutyholders.TheprogrammewasinitiatedinrecognitionofthefactthattheUKcontinentalshelf(UKCS)isnowamatureoilandgasprovinceandmanyinstallationsare“approachingorhaveexceededoriginalanticipateddesign life”.Although theHSE’smain focus ison installations in that category, the inspectionprogrammeextendstoalldutyholdersandallinstallations.

In January2011,Oil&GasUKconvenedameetingonKP4atwhich itwasagreed thatanAgeing&LifeExtension (ALE)Networkwould be established to provide a communication forum for issues aroundALEandKP4inspections.112peoplesubsequentlysigneduptothatnetwork,whichfunctionsviatheOil&GasUKextranet.InthatmeetingitwasalsoagreedtodevelopindustryguidanceonmanagingALEandaworkgroupwasformedtothatend.TheworkgroupcomprisedsixdutyholderrepresentativesandwaschairedbyAndy Laneof TalismanEnergy. The groupmet eighttimesduring 2011 and succeeded in producing aguidancedocumentthatisdesignedtohelpdutyholdersensurethatALEisfeaturedappropriatelyintheirmanagementsystemsandismanagedeffectivelyinpractice.(SeedetailinSection9.2.ofthisreport).

4.6. Weather Data Network

TheCivil AviationAuthority (CAA)’s documentCAP437Offshore Helicopter Landing Areas – Guidance on Standards wasreissuedin2009.Amendmentsincludedrecommendationsonweatherreporting,following

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theAirAccidentsInvestigationBranch(AAIB)’sreportontheG-BLUNMorecambeBayfatalhelicopteraccidentinDecember2006.Aparticularfocusareawasimprovingpre-flightweatherreportsandensuringaccuratemeteorologicalinformationisprovidedtoaircrew.

Toachievethis,theCAAinitiallyproposedthatalloffshoreinstallationswouldrequireautomaticmeteorologicalequipment(inparticularforcloudbaseheightandvisibility).However,duringaconsultationperiod,itwasagreedthataninstallationwouldsatisfyCAP437requirementsifitwaswithina10nmradiusofaninstallationfittedwiththisequipmentandhadaccesstothedataaspartofaUKCS-widedatanetworkthatisabletoshareinformationbetweenallUKoffshoreoperators.

Oil&GasUKhasmanagedtheestablishmentoftheweatherdatanetwork(Helimet)onbehalfofindustry,contractingNesscoLimitedtohostthenetwork.HelimetbecamefullyoperationalinNovember2011.Thenetwork’sbenefitsinclude:removingtheneedforfullweatherstationsoneveryinstallation;redundancyforfaultyequipment;qualitycontrol;andconsistentpre-flightreportsbeingprovidedtohelicopteroperators.Inconjunctionwiththishardwareprovision,over700installation-basedpersonnelhavenowbeentrainedasweatherobservers,andbiennialrefreshercoursesarenowavailabletohelpmaintaincompetence.

4.7. Helicopter G-REDU: Accident Investigation Report10

On18 February2009, thehelicopterG-REDU landed in the seanear ETAPCentral Production Facility.Allpassengersandcrewevacuatedthehelicopterintoliferaftsandweresuccessfullyrescued.

TheAAIB’sinvestigationrevealedthreecausalfactorsandtwocontributoryfactors.Thecausalfactorswerepoorvisibilityfromfogorlowcloud;falseperceptionofthehelicopterpositionanddisorientationbythecrew;andtheheightalertwarningsfailingtoactivate.Thecontributoryfactorswererelatedtovisualdifficultiesonapproach.

Two Special Bulletinswerepublishedin2009andthefinalreportinJanuary2011.Intotal,27recommendationsweremadeandsomehavealreadybeenaddressed.Theseincludechangingtheouterringlightingonhelideckstomeetnewstandards,whilstworkonthecircleand‘H’lightingisongoing.Thisincidenthighlightedagaintheneedforimprovedpre-flightweatherforecastingandreports(see4.6above).

SevenoftherecommendationswerepresentedtotheStepChangeHelicopterSafetySteeringGroup(HSSG)byBPanditwasagreedthattheyshouldbeaddressedthroughtheAviationSafetyTechnicalGroup(ASTG).AsteeringgroupwasinitiatedandmetforthefirsttimeinMarch2012.Thisgroupwillworkwiththenecessarypartiestorespondtotherecommendations.

4.8. Helicopter G-REDL: Accident Investigation Report11

On1April2009,thehelicopterG-REDLcrashedoffthecoastofPeterheadleadingtothelossof16lives.TheAAIBinvestigationcommencedonthesamedayandsixinitialsafetyrecommendationswereissuedin2009.Theseactionshaveallbeencompletedandadditionalsafetycheckshavebeeninplaceforthelasttwoyears.

On 24 November 2011, the AAIB published the formal incident report containing the original sixrecommendations,plusafurther11.

AspecialHSSGmeetingwasheldon5December2011withrepresentativesfromoilandgasoperatorsandcontractors,helicopteroperatorsandtradeunionstodiscussthereportrecommendationsanddecideonawayforwardfortheindustry.Anewsletterwasissuedreportingontheactionsalreadytakenontheinitialrecommendations,alongwithactionsgoingforwardandaFAQtorespondtoanyresidualworkforceconcerns.

The 11 new recommendations are largely of a technical nature and responsibility for implementationoversight iswith theCAA. TheHSSGwillmonitor the various agencies (CAA, EASA, Eurocopter, FAAetc.)fortheircomplianceoverthecomingmonthsandyears.Workgoingforwardwillincluderesearchmethodsto improvethedetectionofcomponentdegradation;flightdatamonitoring;andearlywarning if thechipdetectorisactivated.

10The Report on the Accident to Eurocopter EC225 LP Super Puma, G-REDU near the Eastern Trough Area Project (ETAP) CentralProductionFacilityPlatformintheNorthSeaon18February2009isavailableontheAAIBwebsite: http://www.aaib.gov.uk/sites/aaib/publications/formal_reports/1_2011_g_redu.cfm.

11TheReportontheaccidenttoAerospatiale(Eurocopter)AS332L2SuperPuma,registrationG-REDL,11nmNEofPeterhead,Scotland,on1April2009isavailableat:http://www.aaib.gov.uk/sites/aaib/publications/formal_reports/2_2011_g_redl.cfm.

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4.9. NUI Helideck Fire Fighting Equipment

The CAA amended CAP 437 to require that new build Normally Unattended Installations (NUIs) be builtwithdeck integratedfirefighting systemsand thatexistingNUIs shouldbe retrofittedwithanalternativeautomatically activatedfirefighting system.Oil&GasUK contractedDNV to carry out a risk assessmentprojectandestablishedasteeringgrouptoconsidertheCAArequirementandhowitmaybeaddressed.

TheDNVreportexaminestheoverallrisktotheworkforceasaresultoftheextramanningdemandsinvolvedininstallingautomaticfirefightingequipmentandfromsubsequentrequirementsforinspection,maintenanceandtesting.Theserisksarethencomparedwiththeriskbenefitsfromhavingtheequipmentavailable.Thereportalsoexploresthebenefitsarisingfromtheuseofhelicoptersfittedwithcrashresistantfuelsystems.ThefinalreportwasgiventotheCAA,HCA,HSEandindustryinMarch2012forinitialdiscussion,followingwhichfurthermeetingsaretobeheldwithindustryandregulatorybodiestodiscussthereport’sfindingsanddetermine a way forward.

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5. Regulatory Consultations

Oil&GasUKservesasafocalpointforconsultationprocesses.Itseeksmembercompanyviewsonregulatoryandrelatedproposals,developstheindustryposition,prepareswrittensubmissionsand,wherenecessary,representstheindustryatparliamentaryselectcommitteesthatconsiderregulatorymatters.Thefollowingisasummaryofrecentconsultations.

5.1. Coastguard Modernisation12

The Department for Transport initiated a significant consultation process on proposals to modernisethe Coastguard service. The proposals were geared to increasing operational capability and resilience inCoastguardserviceprovision,basedonareductioninoperationalcentresbutwithasignificantlyimprovedcommunicationsinfrastructurethatwouldmakethenewstructuremoreoperationallyefficientandeffective.

GiventhecrucialroletheCoastguardserviceplaysinrespondingtooffshoreoilandgasemergencies,therewaswidespreadinterestintheproposedchangesresultinginrobustresistancetomanyofthosechanges.In addition towritten submissions,Oil&GasUK’shealth, safety andemployment issuesdirector, RobertPaterson,gaveoralevidenceatasessionoftheParliamentaryTransportSelectCommittee.TheoutcomeofalengthyconsultationprocesswasannouncedtotheHouseofCommonson24November2011.AmongthemoresignificantchangesaffectingtheoilandgasindustryareareductioninstaffinglevelsinAberdeenandtheclosureofcentresinLiverpoolandGreatYarmouth.Thechanges,whichwillbeimplementedoveratwo-to-threeyearperiod,havebeenwellcommunicatedtomembercompanies.

5.2. Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR)13 InMay2011,theUKGovernmentsoughtviewsonachangetothereportingcriteriaforinjuriesasdefinedinRIDDOR.ThechangeispartofaGovernmentdrivetoreducetheregulatoryburdenonbusinesses,andchangedthebasiccriterionforaRIDDORreportableinjuryfromthreedaystosevendays.Membercompanieswereeithersupportiveorneutraltotheproposalsoaresponseinfavourofthechangewassubmitted.

5.3. Health and Safety in Scotland14 TheScottishAffairsSelectCommitteesoughttheviewsofawiderangeofindustriesontherobustnessandeffectivenessofhealthandsafetyregulationinScotland.Oil&GasUKsubmittedawrittenresponsetotheSelectCommittee,andhealth,safetyandemploymentissuesdirector,RobertPaterson,gaveoralevidenceatasessionofthatcommitteeatWestminsterinNovember2011.Atthetimeofwriting,theSelectCommitteereporthasnotyetbeenpublished.

5.4. Offshore Information Sheet on Totally Enclosed Motor Propelled Survival Craft Assurance15

InJune2011,Oil&GasUKbecameawareofadraftoffshoreinformationsheet(OIS)producedbytheHSEonmaintenanceandassurancearrangementsforTEMPSC(TotallyEnclosedMotorPropelledSurvivalCraft).TEMPSCwouldmorecommonlybeunderstoodas“lifeboats”.

ThedraftOIS includeda specific recommendation that TEMPSCassurance couldonlybe considered fullyeffectiveifitincludedperiodiclaunchtoseatesting.TheUKoffshoreoilandgasindustryhasmovedawayfromlaunchtoseatestingovertheyearsonaccountofaseriesofincidents,riskstopersonnelanddifficultiesinrecoveringTEMPSCbackontoinstallations.Ithasmadesignificantinvestmentinin situtestingarrangements.

TheHSEproposalattractedresponsesfrom23dutyholdermembers.Thisinitselfisanindicationofthelevelofoppositiontothe“launchtosea”recommendation.ArobustwrittenresponsewassupportedbymeetingswithHSEspecialistinspectors,andtheoutcomeofthoseengagementswasthattheHSEelectedtoputthedraftOISinabeyanceforaone-yearperiod.HSEinspectorswillundertakefocusedinspectionstogainthenecessaryassurancethatcurrentmaintenanceandtestingregimesareeffectiveinensuringtheavailabilityandreliabilityofTEMPSC.

12 Phase1responsetocoastguardmodernisationcanbefoundat: http://www.oilandgasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=1994andphase2responsecanbefoundat: http://www.oilandgasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=1995.

13 RIDDORconsultationresponsecanbeviewedat:http://www.oilandgasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=1996.

14 ThewrittenresponsetotheScottishAffairsCommitteecanbeviewedat: http://www.oilandgasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=1997.

15 TheTEMPSCresponsecanbeviewedat:http://www.oilandgasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=1998.

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6. Publications

Oil&GasUKleadsorsupportsthedevelopmentofguidelinesandpromotesthesharingofbestpracticeandinformation.ThissectionsummarisestherecenthealthandsafetyguidanceproducedbyOil&GasUK.

6.1. Asset Ageing and Life Extension Guidance

Oil&GasUKhasledthedevelopmentofGuidance on the Management of Ageing and Life Extension for UKCS Oil and Gas Installations16.Thisguidancesupportsdutyholdersincreatingmanagementsystemarrangementsthat effectivelymanage ageing and life extension. It uses theHSE guidance documentHSG65,Successful Health and Safety Management,asamanagementsystemmodeltoaidalignmentwithexistingdutyholdersystems.

Theguidancestresses that themanagementofageingdoesnotapply to“old” installationsasageing isaprocessthatstartswhenaninstallationoritemofequipmentisputintoserviceor,evenbeforethat,ifitisastorediteminneedofpreservation.Italsoprovidesguidanceonconsiderationstobetakenintoaccountwhenmaking life extension decisions – life extension being the period beyond the originally anticipatedservicelifeoftheinstallation.TheOil&GasUKdocumentcomplementstechnicalguidancetobeproducedinconjunctionwiththeHSE,whichwillprovidegreaterdetailonhardwareaspectsofageingandlifeextension.

6.2. Operational Risk Assessment Guidance17

Oil & Gas UK managed an industry work group to develop and publish Guidance on the Conduct and Management of Operational Risk Assessment for UKCS Offshore Oil and Gas Operations. This guidance isgeared toenablingdutyholders todevelopand implement company-specificoperational riskassessment(ORA)arrangements.Itdescribesamanagedresponsetoriskassessmentofarangeofabnormaloperationsonoffshoreinstallations.TheexpectationisthatdutyholderswilldevelopORAprocessesthatarealignedwiththeguidanceorwillassessexistingORAprocessestoharmoniseapproachesacrosstheindustry.

HSEinspectorswereinvolvedinreviewingdraftsofthisguidanceandhaveastatedintenttoinspectdutyholderORAarrangementsagainsttheguidance.

6.3. Guidance on Management of Aviation Operations18

The sixth edition of these guidelines has been created through collaboration betweenOil&GasUK andkey industry organisations to provide information on good industry practice for aviation operations. Thedocumentisintendedtoassistthoseworkinginoilandgasaviationsupportoperationstoensuretherisksinvolvedareaslowasreasonablypracticable.Lessonslearntovermanyyearshavebeentakenintoaccounttoformtheseguidelinesandstandards.Byaddressingbothkeyandroutineissuesthatariseduringoffshorehelideckoperations,theguidelinesprovideinformationongoodpracticeandtheminimumhelideckoperatingstandardsexpectedforcompaniesoperatingintheUKCS.

Newpiecesofguidance issuedbytheOil&GasUKAviationSafetyTechnicalGroup(ASTG)sincethefiftheditionhavebeenembodiedinthesixthedition.TheguidelineshavealsobeenalignedwiththeOGP Aircraft Management Guide to ensure consistency in aviation management standards and guidance across theinternationaloffshoreoilandgasindustry,

The guidelines are intended to assist onshore management personnel; provide advice to independentcompetentpersonswhoareundertakingaviationandoffshorehelideckinspectionsandaudits;andprovideinformationonproducingsafetycasesandriskassessmentsforoffshoreinstallations.

16GuidanceontheManagementofAgeingandLifeExtensionforUKCSOilandGasInstallations(2012)isfreetodownloadat:http://www.oilandgasuk.co.uk/publications/viewpub.cfm?frmPubID=436.

17TheGuidanceontheConductandManagementofOperationalRiskAssessmentforUKCSOffshoreOil andGasOperations(2012)isfreetodownloadat: http://www.oilandgasuk.co.uk/publications/viewpub.cfm?frmPubID=430.

18 TheGuidelinesfortheManagementofAviationOperationsareavailabletopurchaseat: http://www.oilandgasuk.co.uk/publications/viewpub.cfm?frmPubID=48.

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19 TheUKOffshoreCommercialAirTransportHelicopterSafetyRecord(1981-2010)isavailableat: http://www.oilandgasuk.co.uk/publications/viewpub.cfm?frmPubID=240.

6.4. Aviation Statistics Report19

TheUK Offshore Commercial Air Transport Helicopter Safety Record (1981 – 2010)isthethirdeditionofthisdocument,firstpublishedin2003bytheHSEandsupportedbytheCAA.TheworkwasoriginallycommissionedtoproduceasafetyrecordofUKCSoffshorehelicopteroperationsandallowthistobecomparedwithotherformsoftransport.ThiseditionofthereportissponsoredbyOil&GasUKASTG.

ThereportcontainsdataonUKCSoffshorehelicopteroperations fromthe last30years,covering1981to2010,consistingofoffshorepublictransporthelicopterflightstatisticsandreportableaccidentdata.Between1981andtheendof2010,over54millionpassengerswereflowntoandfromoffshoreinstallationsontheUKCS.Justfewerthan6.5millionsectorswereflown,totallingalmostthreemillionflyinghours.

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7. Oil & Gas UK Safety Events

Arangeofeventsareorganisedthroughouttheyeartoencouragelearningandsharingof informationonimportantissues.Theseeventsalsoprovideexcellentopportunitiestonetworkwithindustrycolleagues.Theprogrammerangesfromlargeevents,suchastheUKOilandGasIndustrySafetyAwardsandconferences,tosmallerevents,suchasawarenesscoursesandworkshops.Recenthealthandsafetyrelatedeventsinclude:

Hydrocarbon Release Seminar

Around200peoplefromacrosstheUKoffshoreoilandgasindustrygatheredon15March2012attheAberdeenExhibitionandConferenceCentretounderlinetheir commitment to HCR reduction. The special seminar, jointly organised byStep Change in Safety andOil&GasUK,was held to showcase the industry’scollectiveworktowardsitstargetofreducingthenumberofHCRsby50percentbytheendofQ12013.

Offshore Europe Breakfast – Leadership Challenges in Tackling Hydrocarbon Releases

Over300oftheoilandgasindustry’sleadingfiguresgatheredattheAberdeenExhibitionandConferenceCentreduringSPEOffshoreEurope2011tohearabouttheleadershiproleintacklingHCRs.EricSirgo,generalmanagerofoperationsatChevronUpstreamEurope,andBrianKraus,ERM’smanagingpartnerforglobalperformanceandassurancepractice,sharedtheirpersonalexperiencesabouttheroleleaderscanplayinreducingthenumberofHCRs.SteveWalker,headoftheHSEOffshoreDivision,joinedthepanelsession.

Asset Ageing & Life Extension Seminar

AnAssetAgeing&LifeExtensionseminarwasheldat theAberdeenExhibitionandConferenceCentre.Itofferedanopportunityforcompaniestogainaninsightintoassetageingand lifeextensionactivitiesandtohearspeakers fromacrossUKCS industry, the regulatorandOLF - theNorwegianOil IndustryAssociation.Theseminarwasattendedbyprimarilyoperationalmanagers,maintenanceandintegrityengineers,andsafetyandenvironmentalpractitioners.

Aviation Seminar The annual Aviation Seminar addresses the importance of aviation safety. Theseminarisaboutcollectivelymovingforwardasanindustryandexploringwaystofurtherimproveoffshorehelicoptersafety.The2012AviationSeminarwasheldon13June.

Examining Doctors’ Conference

The Examining Doctors’ Conference is held each year. This year’s conferencefocusedon ‘research inpractice’andprovidedamixof interestingspeakersaswellaslivelydebate.

Aneveningreceptionbeforetheconferencewasalsoheldtogivedelegatesthechancetonetworkwithotherexaminingdoctorsattendingtheconference.

Examining Doctors’ Workshops

This is a preparatory training course to ensure that examining doctors havesufficientknowledgeof theUKoffshoreoilandgas industrytoenablethemtoundertakeOil&GasUKmedicalexaminations.ThecourseprovidesanopportunityfornewlyregisteredexaminingdoctorstoobtainanoverviewoftheUKoilandgasindustry.Theyhearaboutwhatlifeandworkisreallylikeoffshore,toenablethemtogetabetterunderstandingoftheworkingenvironmenttheirpatientsface.TheworkshopsattractattendeesfromglobaloilandgasregionswheretheOil&GasUKmedicalstandardsareadopted.Eightworkshopswereheldin2011,attendedby117examiningdoctorsfrom24differentcountries.

The UK Oil and Gas Industry Safety Awards

Each year the UK Oil and Gas Industry Safety Awards ceremony celebratesthe achievements of people and organisations that have made outstandingcontributionstothesafetyoftheUKoffshoreoilandgas industry.Winnersareannouncedinthefollowingcategories:•SafetyLeadership•SafetyRepresentativeoftheYear•PreventativeSafetyAction•MostPromisingIndividual•InnovationinSafety•TheIdeasinSafetyPrize-newfor2012Inaddition,aspecialawardforServicestoSafetyispresentedbytheStepChangeinSafetyco-chairs.

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Ageing & Life Extension Seminar, December 2011

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8. Step Change in Safety

Foundedin1997,StepChangeinSafetyistheUKoilandgasindustry’sflagshipsafetyinitiativewiththeremittomaketheUKthesafestoilandgasexplorationandproductionprovinceintheworld.It ischargedwithachievingthisvisionthroughcooperation,collaboration,sharingandadoptionofbestpracticeandlearning(seediagrambelow).

Figure 12: Step Change in Safety’s strategic approach

20 StepChangeinSafetyStrategicPlan2010-2015canbedownloadedat: http://www.stepchangeinsafety.net/about/strategicplan.cfm.

TheworkforceisengagedthroughthefollowingStepChangeworkforcenetworks:

• ElectedSafetyRepresentatives(theyalsohaveapresenceontheStepChangeLeadershipTeam)

• SafetyProfessionalsandAdvisers

• SiteLeaders

• FocalPoints

Regularnetworkmeetingsareheldthroughouttheyear.ThesemeetingsprovideaforumfortheworkforcetosharetheirviewsonthehealthandsafetyissuesfacingtheindustrydirectlywithStepChangeinSafety.

TheStepChangeLeadershipTeam(SCLT)comprisesseniormanagersandofficialsfrommembercompanies,industry-relatedtradeassociations,tradeunionsandtheHSE.RepresentativesoftheworkforcealsoattendtheSCLTmeetings.Theleadershipteamisresponsibleforplanningandmonitoringactivitiesandconsiderstheworkforce’sviewsinthisprocess.

Under the Leadership Team, there are currently five steering groups: Asset Integrity, Helicopter Safety,WorkforceEngagement,CompetenceandHumanFactors.Throughindustryparticipationandcooperation,the groups identify opportunities to drive improvements in health and safety performance. Some of thesteeringgroupshavealsoformedworkgroups.TheactivitiesofeachgrouparereportedanddiscussedattheLeadershipTeammeetingeachquarter.

AssetIntegrityandWorkforceEngagementarethetopprioritiesforStepChangeduring201220.

Vision

To make the UK the safest place to work in the worldwide oil and gas industry

BeliefsAllworkershaveafundamentalrighttoworkinanenvironmentwhereriskstotheirhealthand safety

are properly controlled.

Everyonehasacontributionto

make.

Weeachhaveanindividual

personal responsibilityforhealthandsafety.

Wehaveamoraldutytolearnfromthepastandshareour

learning.

Industrycooperationiskeytoachievingourvision.

GoalsWemusthavea strong and sustainableleadershipin

healthandsafety.

Wemusthavethecompetence

toidentifyhazardsand

ensurethatrisksare properly controlled.

Wemusthaveaworkforcethatisfullyengagedinhealthandsafety.

Wemustraisestandards and continuallyimproveour

healthandsafetyperformance.

Wemusthaveeffectiveasset integrity management.

Wemusthaveeffective

systems of communicationforhealthandsafetyissues.

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Figure 13: Current Step Change in Safety Steering Groups and Work Groups

Leadership Team

Steering Groups

Work Groups

Assurance and

Verification

TechnicalAuthorities

HydrocarbonRelease

Prevention

FPF /FPSOs

Surveyand

WorkforceEngagement

Toolkit

MechanicalJoint

Integrity

HumanFactors

Toolkit & ProceduralCompliance

Human Factors HelicopterSafety

Competence

Asset Integrity

WorkforceEngagement

Support Team Human Factors HelicopterSafety

Competence

Asset Integrity

WorkforceEngagement

Support Team

Human Factors HelicopterSafety

Competence

Asset Integrity

WorkforceEngagement

Support Team

Human Factors HelicopterSafety

Competence

Asset Integrity

WorkforceEngagement

Support Team Human Factors HelicopterSafety

Competence

Asset Integrity

WorkforceEngagement

Support Team

Human Factors HelicopterSafety

Competence

Asset Integrity

WorkforceEngagement

Support Team

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9. 2012 Focus Areas

ThehealthandsafetypictureoftheUKoffshoreoilandgasindustrytendstobedynamicandissubjecttoarangeofinternalandexternalinfluences.Oil&GasUKandmembercompaniesrecogniseandaccommodatetheflexibilityrequiredtorespondtoemergingissuesandchallenges.Thatsaid,wedotrytoanticipateandprovide focus in key areasof health and safety, and the following are topics thatwebelievewill requirecontinuedeffortandattentioninthenearfuture.

9.1. EU Regulations

Asdescribedinsection4.1ofthisreport,theECisproposingtointroduceanEUregulationonthe“safetyof offshoreoil and gasprospection, explorationandproductionactivities”. Irrespectiveofwhether this isadoptedasaregulation,or,theindustrypreference,awell-wordeddirective,itislikelythatthiswillremainakeyfocusareainto2013.

ShouldtheEUproceedtoissuearegulation,therewillbeasignificantworkloadfordutyholdermemberstoachievecompliancewiththeletterofthenewlegislationand,inparticular,todevelopandgainacceptanceofreportsonmajorhazards.Equally,therewillbeasubstantialburdenonUKregulatorstoassessandacceptthesereports.Aparallelactivity,potentiallyinvolvingbothregulatorsandindustry,willrequiretherealigningofexistingUKmajorhazardregulationswiththenewEUregulation.ManyoftheexistingUKregulationsorpartsthereofwillneedtoberevokedorrevisedsubstantiallytoeliminateanypotentialconflictofinterpretationorapplication.

Oil&GasUKwillremainactiveinitseffortstoarriveatthemostappropriateanddesirablelegislativepositionandtoinfluenceimprovementsintheformofwordingadoptedintheeventuallegalinstrument.Irrespectiveof whether the proposal is as advanced as a regulation or is a directive, therewill bework required tosupportredraftingandtodeliversupportinginterpretativeguidance.Oil&GasUKwillbeactiveindrivingorparticipatinginthoseactivities.

9.2. Asset Ageing and Life Extension

TheHSEinspectionprogramme,KP4(seesection4.5),willcontinueinto2013withallremainingdutyholdersbeinginspectedoverthatperiod.Oil&GasUKanddutyholdermembercompanieswillmaintainfocusonageingandlifeextensionasakeybusinesschallengeinadditiontorespondingtotheKP4focus.TheOil&GasUK Guidance on the Management of Ageing & Life Extension for UKCS Oil & Gas InstallationswaspublishedinApril2012andeffortswillbemaintainedtopromotetheadoptionorintegrationofthisguidancewithindutyholdermanagementsystems.

TheHSEhasstatedanintentiontopublishaninterimreportonKP4bytheendofQ22012andtherewillbeanexpectationthattheindustryrespondsappropriatelytofindingsandrecommendationssetoutinthatreport.Manyofthefindingswillhavebeenaddressedwithindividualdutyholdersbutitislikelythattherewillbemattersthathavecross-industryrelevanceandeffect.Oil&GasUKwilltakealeadindevelopingtheindustryresponseinthoseareas.

Oil&GasUK’sAgeing&LifeExtension (ALE)SteeringGroupwill allowcontinued liaisonwith theHSEonissuesarisingfromKP4inspectionsspecificallyandonALEtopicsmoregenerally.ThisgrouphasdutyholderrepresentativesandtheHSEKP4managersonboard,enablingdirectcommunicationbetweentheparties.

Oil&GasUKstaffandmemberrepresentativesarealso involved indevelopingALEtechnicalguidance, insupportoftheHSE.ThatguidancewillcomplementtheOil&GasUKALEguidanceandfocusprimarilyonhardwareaspectsofALEmanagement.

9.3. Operational Risk Assessment

Oil&GasUKhaspublishedguidanceonORAstoenabledutyholderstoimplementeffectivemanagementsystemapproachestomanagingtherisksarisingfromabnormaloperationalsituations.HSEinspectorswereinvolved indeveloping thatdocumentand theHSEhas indicatedan intention toassessdutyholderORAprocessesforalignmentwiththeguidance.Weintendtomonitorimplementationandtoseekfeedbacktoensurethattheguidanceishavingthedesiredeffect. Inparticular,Oil&GasUKwillengagewiththeHSEtoseekassurancethattheimprovementsinORApractice,whichtheguidanceseekstoenable,havebeendelivered.Thedocumentwillofcoursebeupdatedorimprovedasnecessaryinlightofbothindustryandregulatorfeedback.

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9.4. Maitland Report Follow-Up

TheMaitlandReportreferredto insection4.2willrequirecontinuedOil&GasUKfocusandinvolvementthrough2012.AnumberoftherecommendationsciteOil&GasUK’sleadroleasbeingcrucialtodeliveringimprovement, and we will also participate in wider industry actions where appropriate. RecommendedactionshavebeenassignedtotheHSE,DECCandOil&GasUKpersonneland,fromastricthealthandsafetyperspective,we anticipateparticularOil&GasUK involvement in a numberof key areas. These include:support foraspectsofworkassignedtotheWellLifeCyclePracticesForum, learning fromincidents,bestpracticeimplementationassuranceandworkforceengagement

SomeoftheresponsestotheMaitlandrecommendationswillbeundertakenbyStepChangeinSafety.DECC,whichcommissionedtheMaitlandReview,hasrequestedanindustryresponsebymid-2012andprogressonactionsisbeingtrackedbyOil&GasUK.

9.5. Structural Integrity Challenges

TheHSEinitsdealingswithsafetycasethoroughreviewshaschallengedsomedutyholdersontheirapproachtostructural integritymanagement.Thesechallengesrelateprimarily,butnotuniquely,totheassessmentandmanagementofstructuralloadingsassociatingwithextremeweatherevents.AlthoughHSEinspectorscommunicatedirectlywithdutyholdersonsafetycaseassessmentmatters,manyoftheissuesraisedbytheHSEhavecommoneffectacrosstheindustryandassuchwillbenefitfromthepursuitofcommonsolutions.Therefore,anetworkcomprisingstructures-focusedtechnicalauthoritieshasbeenformed.Thisgroupwillmeetperiodicallyandwilldeveloptechnicalguidancenotesaddressingkeytopicswhereappropriate.Oil&GasUKwillprovidetechnicalandadministrativesupporttotheworkgroup.

9.6. Emergency Response and Rescue Vessels (ERRV)

Oil&GasUKhaspublishedtwodocumentsinconjunctionwiththeERRVAssociation(ERRVA):

• The Emergency Response & Rescue Vessel Management Guidelines (2008)

• The Emergency Response & Rescue Vessel Survey Guidelines (2008)

Aworkgrouphasbeen formedcomprisingERRVAmembersanddutyholdermarinespecialists to reviewandrevisebothdocumentsasnecessary.TherearealsosomespecificissuesaffectingERRVoperationsthatwillbeaddressedbythisworkgroupduring2012,andthesewill featureintheupdatedguidelineswhereappropriate.

9.7. Health and Safety Publications Review

Workhasbegunin2012toreviewcurrentOil&GasUKhealthandsafetypublications.Aninitialscreeningexercisewill identifythepublicationsmost inneedofreviewandaplanwillbeput inplacetoundertakereviewsandtoupdatedocumentsasnecessary.Twopublicationshavealreadybeenidentifiedasprioritiesforrevisionin2012andthoseare:

• The Risk Based Decision Making Framework (1999)

• The Supplementary Guidance on Reporting of Hydrocarbon Releases (2008)

MembersoftheMajorHazardManagementForumhaveformedtwoworkgroupstoreviewandrevisethesedocuments.

9.8. Support of the Industry Hydrocarbon Releases Reduction Target

The reduction in the number of HCRs remains a top priority and a key focus of the industry’s absolutecommitmenttocontinuouslyimproveprocesssafetystandardsandperformance.Attheendof2010,StepChangeinSafetypublishedarevisedHCRreductiontarget.TheUKoffshoreoilandgasindustryasawholehasagreedatargetofreducingHCRsby50percentbytheendofMarch2013,thebaselinebeingtheHSE2009/10figure.

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Toimprovetheindustry’sperformanceinHCRsrequiressharingandlearningbetweencompanies.Inthefirstyear,theindustryachieveda10percentreduction.Resultsfor2011/12indicatea30percentachievementtowardsthetargetandan all time low in major and significant releases(seefigure7).WhilsttheindustryhasmadeasignificantefforttowardsHCRpreventioninthepastyear,there is lessthanayearremainingofthethree-yearchallenge.Toachievethegoal,Oil&GasUK,togetherwithStepChange,isnowworkingcollaborativelywithindividualcompanies.Figure15belowsummarisesthecollectiveeffortsthattheindustryhasmadeinrelationtoHCRreduction.

Figure 15: Contribution to Hydrocarbon Release Reduction by Industry

Oil & Gas UK • HCR Data Publication - openness

and sharing of information • Supplementary Guidelines for HCR

Reporting – work group formed to review the guidance to ensure accurate and robust approaches to HCR reporting

• HCR events: Offshore Europe breakfast (12 September 2011) and HCR Seminar (15 March 2012)

• KPI-2 Verification Non-Compliance – process containment findings now required

Individual Companies• Built target into their business plans• Continue to share analyses of

the root causes of incidents and circulate best practice

• Top performing companies are sharing their knowledge and experience with other members

Step Change in Safety• Asset Integrity Steering Group has

initiated an industry-wide HCR root cause analysis exercise using 474 HCRs related data supplied from 20 duty holders. Results of the analysis have been widely shared within the industry

• The Steering Group also set up the HCR Prevention Sub-Group and the FPSO & FPF Sub-Group to improve industry’s HCR performance

• Verification Sub-Group is to deliver guidance on verification and

assurance

Figure 14: The Industry has a Three-Year Target to reduce Hydrocarbon Releases by 50 per cent

300

Target Baseline: 187 Target: 94

Tota

l Num

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1

2011

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2

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3

126

ActualTarget 2012/2013

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9.9. KP3 Improvements “Health Check”

InNovember2007,theHSEissuedareportofitsfindingsfromtheKP3inspectionprogrammefocusingonassetintegritymanagement(seefurtherdetailonKP3insection2.3).InJuly2009,theHSEissuedafurtherreportreviewingindustryprogresssincethe2007report21.Assetintegritymanagementhasremainedakeytopicfortheindustryandisanintegralfeatureofmajorhazardmanagementfordutyholders.TheindustrynowhasamaturesetofassetintegrityKPIsmeasuringthefollowingaspectsofintegritymanagement:

• KPI-1–Hydrocarbonreleases

• KPI-2–Verificationnon-compliances

• KPI-3–Safety-criticalmaintenancebacklog

Thetwonewindicators(KPI-2andKPI-3)havebeeninplaceforthreeyearsnow.AneffortisbeingmadetorefreshKPI-2and3andanewindicator(KPI-4)hasbeenintroducedtomeasureindependentcompetentperson(ICP)activitycompletedagainstthatplanned.

The Asset Integrity KPIwork groupmeets quarterly to review KPI results. It is intended that the group’sscopeofinterestwillbeextendedbeyondtheKPIreviewtobecomemoreinterrogativetoidentifyareasforimprovementandtohelpdrivethoseimprovementswhereappropriate.Itisalsointendedtousethatgroup,anditsrelationshipwithICPs,toprovidesomeassurancethattheindustryremainssufficientlyfocusedonassetintegrityandhassustainedtheeffortandprogressmadeinrelationtoKP3findingsandrecommendations.

ThetablebelowsummarisestheimprovementsthatarecurrentlybeingmadetothethreeKPIs.

Figure 16: Current Improvements to Asset Integrity KPIs

21 TheHSE2007reportcanbedownloadedathttp://www.hse.gov.uk/offshore/kp3.pdfandtheHSE2009reviewreportcanbe downloadedathttp://www.hse.gov.uk/offshore/kp3review.pdf.

KPI-1 Hydrocarbon

Releases• Managed by the HSE, the database is currently being upgraded• Data are now published on the Oil & Gas UK website

KPI-2 Verification Non-

Compliances

• Process containment non-conformities are collated to provide linkage to KPI-1 • Tracking of the top three safety-critical elements featuring in non-compliances to identify common areas for improvement• Tracking the percentage of verification activity completed against planned activity

KPI-3Safety-Critical Maintenance

Backlog

• Monitoring the percentage of safety-critical maintenance that is incomplete in the period rather than showing the manhours smooths out many of the variations in backlog reporting and allows the industry to set reduction targets• Drilling further into data to understand issues and improvement needs

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9.10. Aviation Agenda

Workwill continue in response to the recommendationsmade in theAAIBG-REDU report.Circleand ‘H’lightingtrialsencounteredanumberofproblems;improvementsarebeingmadeandtrialsofaproductionversioncontinue.Theweatherdatanetworkisfullyestablishedandadditionalinformationhasbeenincludedto maximise its usefulness to pilots. Work to encourage uptake will continue. A work group has beenestablishedtolookattheindustryresponsetosevenoftheAAIBreportrecommendationsfromtheG-REDUinvestigationreport.

Followingtheperiodofbadweathertowardstheendof2011,theBritishAirlinePilotsAssociation(BALPA)has again raised the issueof operatinghelicopter flightswhen theonlymeansof rescue and recovery isDaconscoops.PilotshavebeenencouragedtovisitemergencyresponseandrescuevesselstoseeaDaconscoopand tohavediscussionswith themaster and crew.AmeetingwasalsoheldwithBALPA, theRMTunion,helicopteroperatorsandrepresentativesfrominstallationoperators.Whilethereremainanumberofoutstandingmattersrequiringresolution,itwasclearthatthetwosidesinthedebateweremovingclosertoaconclusion.

9.11. NUI Fire Fighting Equipment

DNV’sreviewreportwasgiventotheCAA,HCAandHSEinMarch2012.Thereportfoundthatautomaticfirefightingequipmentfittedtohelideckswillnotreducetherisks.Therefore,thereportrecommendsthathelicopters intheUKfleetcontinuetobereplacedwithtypesthathavecrashresistantfuelsystems,and,whereappropriate,retrofittingsuchsystems.Theindustryshouldfocusonthosehelicoptertypesusedforflights toNUI in thefirst instance.Thiswilldecrease the risksby reducing the likelihoodofafirestartingonhelicoptercrashimpact.Thiswillbeongoingworkfor2012todeliverasatisfactoryresolutionforbothindustryandtheregulators.

9.12. Pipeline and Riser Loss of Containment

ThePipelineandRiserLossofContainment(PARLOC)Databasewaspreviouslyavailableinhardcopy,withnew issuespublishedperiodically, the lastofwhichwas in2001. Ithasbeenavailableonline since2009;however,successwithitsuptakehasbeenlimited.Asteeringgrouphasbeenformedtoestablishifthereisanindustrydesireforthistocontinueasanonlinedatabase.Worktore-launchPARLOCisplannedforJune2012.

9.13. Shape and Size Project

Oil&GasUKiscollaboratingwithspecialistsfromRobertGordonUniversityona joint industryprojecttomeasuretheshapeandsizeoftheUKCSoffshoreworkforce.Initialanalysisshows,onaverage,anincreaseintheweightofworkerssincethelastdatawerecollectedin1985.Itisintendedthatthedatawillbeusedtoenhancesafetybyassistinginthedesignoffutureoffshoreequipmentandfacilities.Datawillbecollectedfromasamplesizeof600offshoreworkers.

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AAIB AirAccidentsInvestigationBranchALE Ageing&LifeExtensionASTG AviationSafetyTechnicalGroupCAA CivilAviationAuthorityDECC DepartmentofEnergyandClimateChangeEASA EuropeanAviationSafetyAgencyEC EuropeanCommissionEERTAG Evacuation,Escape&RescueTechnicalAdvisoryGroupEPOL EmergencyPreparednessOffshoreLiaisonGroupERRV EmergencyResponseandRescueVesselEU EuropeanUnionFPF FloatingProductionFacilityFPSO Floatingproduction,storageandofftake(vessel)HCR HydrocarbonReleaseHSE HealthandSafetyExecutiveHSSG HelicopterSafetySteeringGroupICP IndependentCompetentPersonKPI KeyPerformanceIndicatorLTIF LostTimeInjuryFrequencyMCA MaritimeandCoastguardAgencyNOIA NorthSeaOffshoreIndustriesAssociationsNUI NormallyUnattendedInstallationOGP InternationalAssociationofOilandGasProducersOIAC OffshoreIndustryAdvisoryCommitteeOIS OffshoreInformationSheetORA OperationalRiskAssessmentOSPRAG OilSpillPreventionandResponseAdvisoryGroupPARLOC PipelineandRiserLossofContainmentDatabaseRIDDOR ReportingofInjuries,DiseasesandDangerousOccurrences

RegulationsSCE Safety-CriticalElementSPE SocietyofPetroleumEngineersTEMPSC TotallyEnclosedMotorPropelledSurvivalCraftUKCS UnitedKingdomContinentalShelfUKOOA UnitedKingdomOffshoreOperatorsAssociation

10. Appendix

10.1. Glossary of Terms and Abbreviations

Copyright©TheUnitedKingdomOffshoreOilandGasIndustryAssociationLimitedtradingasOil&GasUK,2012

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Notes

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PUBLISHEDBYOIL&GASUKISBN1903003878

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