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THE RELATIONSHIP OF POTENTIAL HAZARDS TOWARDS SAFETY IMPACT AT MALAYSIAN FLOATING STORAGE FACILITY SALEHUDDIN BIN MD FADZIL UNIVERSITI TUN HUSSEIN ONN MALAYSIA

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Page 1: THE RELATIONSHIP OF POTENTIAL HAZARDS TOWARDS …eprints.uthm.edu.my/9206/1/Salehuddin_Md_Fadzil.pdf · significant and yet low extent for the relationship of potential hazards towards

THE RELATIONSHIP OF POTENTIAL HAZARDS TOWARDS

SAFETY IMPACT AT MALAYSIAN FLOATING STORAGE

FACILITY

SALEHUDDIN BIN MD FADZIL

UNIVERSITI TUN HUSSEIN ONN MALAYSIA

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THE RELATIONSHIP OF POTENTIAL HAZARDS TOWARDS SAFETY

IMPACT AT MALAYSIAN FLOATING STORAGE FACILITY

SALEHUDDIN BIN MD FADZIL

A thesis submitted in

fulfillment of the requirement for the award of the

Degree of Master of Science in Technology Management

Faculty of Technology Management and Business

Universiti Tun Hussein Onn Malaysia

AUGUST, 2016

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DEDICATION

To my lovely wife, my kids, my father and mother, relatives, friends....

I also want to dedicate it to my Supervisor....

To everyone who I know, and all people I will know them in future....

For their genuine pride. To all these loving people, this thesis is dedicated.

DEDICATION 

CLARATIO 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ACKNOWLEDGEMENT

All praise is to ALLAH, the most exalted the most high to which we all depend for

sustenance and cherishment.

I would like to express my sincere appreciation to my capable supervisor, Assoc. Prof.

Dr. Hj. Rosmaini Bin Hj. Tasmin for helping me to develop that interest and zeal in

research and also for all the guidance and counselling throughout the period of this

research, thank you sir.

I would also like to thank the management of Universiti Tun Hussein Onn Malaysia

for giving good facilities for students. Furthermore, to the entire academic and non-

academic staff of the Faculty of Technology Management and Business and also the

Centre for Postgraduate Studies for all their support and guidance, and to all staff in

UTHM.

I would also like to thank all staffs at FPSO Ventures Sdn Bhd, colleague at Petronas

Carigali and all facility in this study for their contribution and commitment.

My sincere appreciation goes to my family members, especially to my wife for support

and prayers, and to my parents who showed me that life is not easy and must be

working hard to get what we want. There is no amount of word that would express my

gratitude to you. All what I am going to say is that may ALLAH (S.W.T) grant you

all your heart desires in this world and hereafter.

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ABSTRACT

Floating storage facility is increasingly becoming the preferred solution for new

installation in offshore industry. The facility has the ability to handle changes of oil

reservoir and process as well as offering storage and offloading at the same time. With

the straight forward of building and conversion based on the ship building technology,

the system will easily contribute to the potential hazard or risk that is difficult to

quantify due to short of experience, if compared to shipping industry. This thesis gives

an overview of the potential hazards during normal activity and the safety impact to

personnel, asset and environment. The list of potential hazard is generated and

compiled during reviewing of the literature from journals, conference proceedings,

databases and guidelines related to offshore operation safety. The research study

followed Risk Assessment approach by using Risk Matrix as a tool to measure the

level of potential hazard. Survey data also analyzed through statistical method of

analysis using SPSS. The tools from ANOVA One Way and T-Test were used to

analyze further the significant differences of demographic facility towards potential

hazards. Tool from Pearson Correlation is used to analyze the data for the relationship

of the potential hazard towards safety impact of the facility. The research study

described the potential hazards mainly from marine activities that should be

considered at the floating storage facility operated in Malaysia. The findings reported

that the age of facility has significant difference for ship collision, from the perspective

of facility’s demographic. The result also shows mooring system having significant

difference for hull failure since the statistical finding is significant. For the level of

hazard, it shows that on the first ranking is hydrocarbon release followed by

occupational accident, ship collision and hull failure. The result shows positive,

significant and yet low extent for the relationship of potential hazards towards safety

impact of the facility. The findings from the collected experience-based and research

survey data can be applied to facilitate the development of rationalized approaches for

the top management in decision-making for the safety guideline, policy making and

investment towards the floating storage facility.

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ABSTRAK

Fasiliti penyimpanan terapung sedang berkembang pesat menjadi penyelesaian kepada

pemasangan yang baharu dalam industri luar pesisir pantai. Fasiliti ini berkemampuan

mengendalikan perubahan kepada takungan minyak dan proses disamping

menawarkan penyimpanan dan pemindahan pada masa yang sama. Dengan terus

kepada pembinaan dan penukaran berdasarkan teknologi pembinaan kapal, sistem

tersebut dengan mudah terdedah kepada potensi bahaya atau risiko yang sukar

diklasifikasikan kerana pengalaman yang singkat jika dibandingkan dengan industri

perkapalan.Tesis ini akan memberikan pandangan terhadap potensi bahaya semasa

aktiviti biasa dan impak keselamatan terhadap pekerja, aset dan persekitaran. Senarai

potensi bahaya ini dihasil dan disusunkan semasa semakan terhadap karya dari jurnal,

pembentangan persidangan, pangkalan data dan garispanduan yang berkenaan kepada

operasi di luar persisir pantai. Kajian penyelidikan ini telah menggunapakai

pendekatan dari Penilaian Risiko yang menggunakan Risiko Matriks sebagai alatan

untuk mengukur paras potensi bahaya. Data penyelidikan ini dianalisis melalui

penggunaan statistic daripada analisis SPSS. Peralatan analisis tersebut adalah

ANOVA One Way dan T-Test yang digunapakai untuk menganalisis seterusnya

perbezaan yang signifikan dari fasiliti tersebut terhadap potensi bahaya. Korelasi

Pearson pula menganalisis data untuk perhubungan potensi bahaya terhadap impak

keselamatan di fasiliti tersebut. Kajian tersebut menerangkan potensi bahaya daripada

aktiviti marin yang diambil kira di fasiliti penyimpanan terapung yang beroperasi di

Malaysia. Hasil kajian melapurkan umur fasiliti mempunyai perbezaan signifikan

terhadap pelanggaran kapal dari segi perspektif fasiliti. Keputusan juga menunjukkan

sistem tambatan mempunyai perbezaan yang signifikan kepada kerosakan badan kapal

di mana statistik menunjukkan ia adalah signifikan. Paras potensi bahaya yang

menunjukkan tahap pertama adalah perlepasan hidrokarbon dan diikuti oleh

kemalangan pekerjaan, pelanggaran kapal dan kerosakan badan kapal. Hasil dapatan

korelasi adalah positif, signifikan, namun pada tahap rendah terhadap perhubungan

potensi bahaya terhadap impak keselamatan fasiliti. Keputusan daripada pengumpulan

data, pengalaman dan kajian penyelidikan akan menentu ukuran terhadap

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perkembangan pendekatan yang rasional untuk pihak atasan mengaplikasikannya

dalam membuat keputusan bagi garis panduan keselamatan, pembentukan polisi dan

pelaburan terhadap fasiliti penyimpanan terapung.

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TABLE OF CONTENTS

TITLE i

DECLARATION ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRACT v

ABSTRAK vi

TABLE OF CONTENTS viii

LIST OF TABLES xii

LIST OF FIGURES xv

LIST OF SYMBOL and ABBREVIATIONS xvii

LIST OF APPENDICES xviii

CHAPTER 1 INTRODUCTION

1.1 Overview 1

1.2 Floating Storage Facility 4

1.3 Potential hazard onboard facility 12

1.4 Problem statement 15

1.5 Research questions 18

1.6 Research aim 18

1.7 Research objective 18

1.8 Scope of the research 19

1.9 Summary 19

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CHAPTER 2 LITERATURE REVIEW

2.1 Introduction 20

2.2 Potential hazard at the floating facility 22

2.2.1 Hydrocarbon release 22

2.2.1.1 Pipeline failure/burst 23

2.2.1.2 Flexible riser failure 24

2.2.1.3 Tank venting 26

2.2.1.4 Loss of well control (blowout) 27

2.2.2 Ship collision 29

2.2.2.1 Offloading tanker impact 32

2.2.2.2 Offshore support vessel impact 34

2.2.2.3 Merchant vessel impact 35

2.2.3 Hull failure 37

2.2.3.1 Failure in ballasting-capsize 39

2.2.3.2 Corrosion release 40

2.2.3.3 Adverse weather condition 42

2.2.4 Occupational accidents 46

2.2.4.1 General maintenance works 47

2.2.4.2 Helicopter impact 49

2.2.4.3 Manual handlings 51

2.2.4.4 Dropped object 53

2.3 Conceptual diagram and theoretical framework 58

2.4 Demographic of floating facility 61

2.4.1 FSO Angsi 61

2.4.2 FSO Cendor 61

2.4.3 FSO Abu 62

2.4.4 FPSO Kikeh 62

2.5 Summary 62

CHAPTER 3 RESEARCH METHODOLOGY

3.1 Introduction 63

3.2 The scope of study facility 63

3.3 The method of study 66

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3.3.1 Risk matrix 66

3.3.2 SPSS 68

3.4 Pilot study 68

3.5 Sampling method 69

3.6 Survey questionnaire 70

3.7 Summary 71

CHAPTER 4 ANALYSIS AND FINDINGS

4.1 Introduction 72

4.2 Analysis ANOVA One Way 73

4.2.1 Age of facility 73

4.2.2 Manpower 75

4.2.3 Storage capacity 77

4.3 T-Test 78

4.3.1 Type of mooring system 79

4.4 Pearson correlation 80

4.4.1 Relationship of potential hazards

towards safety impact 80

4.5 Risk matrix 82

4.5.1 Potential hazards towards Personnel 82

4.5.2 Potential hazards towards Asset 84

4.5.3 Potential hazards towards Environment 85

4.6 Summary of level potential hazards 87

4.7 Summary 88

CHAPTER 5 DISCUSSION AND CONCLUSION

5.1 Introduction 90

5.2 Discussion of the data collection 91

5.3 Discussion of the findings 91

5.3.1 Level of potential hazards 92

5.3.2 Significance difference for demographic

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facility towards potential hazard 94

5.3.3 Relationship of potential hazard towards

safety impact 99

5.4 Implication of the study 100

5.5 Suggestion for future research 101

5.6 Contribution from the study 103

5.7 Conclusion 106

REFERENCES 108

APPENDIX A Facility Information 116

APPENDIX B Weather forecast for Abu

Cluster Field, Terengganu 121

APPENDIX C FVSB HSE Management

System List 123

APPENDIX D The questionnaire for the study 124

APPENDIX E SPSS Sheets 131

APPENDIX F Vitae 173

PUBLICATION LIST 175

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LIST OF TABLES

1.0 Number and cost of worldwide floaters orders,

2000-2011. Source data from RigLogix, 2011 11

1.1 The statistic of occurrences for floating, production,

storage and offloading facility for year 1990 – 2007

(Oil and Gas UK 2009) 14

1.2 The statistic of Incident Investigation Report (IIR)

from year 2003 to year 2011 by PMO Petronas Carigali

(HSE Online 2011) 15

1.3 Number of accidental events for different Types of Unit 17

1.4 List of facilities in this study 19

2.0 Summary of events associated with event

reported incident, HSE (2006) 38

2.1 Overview of less serious accidents due to

environmental impacts to FPSOs in the

North European waters, Vinnem (2000) 44

2.2 Wave data for operational – 1 year return

period (Abu Cluster Field, Malaysia) 44

2.3 Environmental condition for storm – wave,

current, wind for 100 years condition. (Abu

Cluster Field, Malaysia) 45

2.4 Severity of injury and kind of accidents in

2009/10 (UK HSE, 2010) 48

2.5 Helicopter accidents in North Sea for the period

of 1999-2009 (Harrera et al., 2010) 50

3.0 ISO 17776 Risk Matrix (DNV, 2001) 67

3.1 Morgan Table 1970 for Determining Random

Sample Size from a given population 69

4.0 Total correspondence and percentage 72

4.1 Analysis Anova One Way; comparison from

Potential Hazard with Age of Facility 73

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4.2 Analysis Tukey LSD Test for ship collision

from Age of Facility 74

4.3 Analysis Anova One Way; comparison from

Potential Hazard with manpower 75

4.4 Analysis Anova One Way; comparison from

Potential Hazard with Storage Capacity 77

4.5 T-Test Analysis; comparison of Potential

Hazard with type of Mooring System 79

4.6 Pearson Correlation Analysis for Potential

Hazard towards the Personnel 80

4.7 Pearson Correlation Analysis for Potential

Hazard towards the Asset 80

4.8 Pearson Correlation Analysis for Potential

Hazard towards the Environment 81

4.9 Level of hydrocarbon release towards the

personnel 82

4.10 Level of ship collision towards the personnel 82

4.11 Level of hull failure towards the personnel 83

4.12 Level of occupational accidents towards the

personnel 83

4.13 Level of hydrocarbon release towards the asset 84

4.14 Level of ship collision towards the asset 84

4.15 Level of hull failure towards the asset 84

4.16 Level of occupational accidents towards the

asset 85

4.17 Level of hydrocarbon release towards the

environment 85

4.18 Level of ship collision towards the environment 86

4.19 Level of hull failure towards the environment 86

4.20 Level of occupational accidents towards the

environment 86

4.21 Summary of level potential hazards according

To ISO 17776 Risk Matrix (DNV, 2001) 87

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5.1 Level of potential hazards for Malaysian floating

storage facility according to Risk Matrix 92

5.2 The summary of significant difference between

demographic of floating facility and potential

hazards by using Anova One Way and T-Test 94

5.3 Comparative summary of Turret Moored

and Spread Moored F(P)SO Systems

(Howel et al. 2006) 98

5.4 The summary for relationship of potential hazards

Towards safety impact by using Pearson Correlation 99

5.5 Priority of action for the level of hazard

according to risk matrix 104

5.6 The ranking of 4 potential hazards towards safety

impact 105

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LIST OF FIGURES

1.0 Deepwater development system (wikipedia) 2

1.1 FPSO Kikeh anchoring picture 5

1.2 FPSO compartmentalizing of the ship 6

2.0 The hazard from hydrocarbon release 22

2.1 The hazard from ship collision 29

2.2 Ranking of Risk Influencing Factor (RIF) group

combination (expert judgement) by

Vinnem et al. (2003) 31

2.3 FPSO offloading incidents per year for UK

Sector distributed on the defined categories

by Jenman et al. (2005) 34

2.4 The hazard from hull failure 37

2.5 Wave related incident in UK HSE Study by

Smith (2003) 43

2.6 The hazard from occupational accidents 46

2.7 All severities of injury in 2009/10

(UK HSE, 2010) 47

2.8 Fatality due to Helicopter Incident by Petronas

HSE Division (2012) 50

2.9 Pictures of common manual handling at

Offshore facility 51

2.10 Ergonomic Offshore Accident – UK HSE

Statistic 2011/2012 52

2.11 Crane and lifting operation incidents in year

2011 (Dobson, 2012) 54

2.12 Crane and lifting operation incidents in year

2012 (Dobson, 2012) 54

2.13 Other dropped objects in year 2011

(Dobson, 2012) 55

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2.14 Other dropped objects in year 2012

(Dobson, 2012) 56

2.15 The conceptual diagram of relationship between

Potential hazards towards safety impact at

Malaysian floating storage facility 59

2.16 A Theoretical Framework based on Risk

Assessment (ABS, 2000) 60

3.0 Depiction of floating storage facility in this study 64

3.1 Research Flowchart (Rasil, 2006) 65

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LIST OF SYMBOL and ABBREVIATIONS

ABS - American Bureau of Shipping (classification society)

BV - Bureau Veritas (classification society)

BOP - Blowout Preventer

BS - British Standard

Bbls - Barrels

DNV - Det Norsk Veritas (classification society)

FVSB - FPSO Ventures Sdn Bhd

FandG - Fire and Gas

FPSO - Floating Production Storage and Offloading

FSO - Floating Storage and Offloading

HSE - Health Safety and Environment

IG - Inert Gas

ISO - International Standard Organization

MARPOL - Marine Pollution

MISC - Malaysian International Shipping Corporation

MT - Metric Tonne

OGP - Oil and Gas Producer

OSV - Offshore Support Vessel

PMO - Peninsular Malaysian Operation

QRH - Quick Release Hook

SOLAS - Safety of Life at Sea

SWL - Safe Working Load

SPSS - Statistical Product and Services Solutions

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LIST OF APPENDICES

 

APPENDIX TITLE PAGE

A Facility information 116

B Weather forecast for Abu Cluster Field,

Terengganu, Malaysia 121

C FVSB HSE Management System List 123

D The questionnaire for this study 124

E SPSS sheets 131

F Vitae 173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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CHAPTER 1

INTRODUCTION

1.1 Overview

Offshore floating storage facility presents a unique combination of equipment and

conditions not observed in any other industry. Although there are few aspects of the

industry which are completely new, the application in an offshore environment can

result in new potential hazards which must be identified and controlled.

Much of the oil and gas processing equipment which utilized on offshore facilities is

similar to the equipment used onshore for oil production activities or in chemical

process plants. Therefore, many of the hazards associated with the process equipment

are well known. However, the inherent space constraints on offshore structures have

resulted in the application of some new process equipment and more importantly,

making it difficult to mitigate hazards which separate the equipment, personnel and

hazardous materials. Due to the facilities are located at remote locations, personnel

who operate or service at offshore facilities typically live and work at offshore for

extended periods of time. In many ways, these aspects of offshore operations are

similar to those found in shipping industry. However, the operations that take place on

offshore oil and gas production are different than those which take place on trading

ships.

Another difference between offshore and onshore oil and gas production is the relative

complexity of drilling and construction activities, which contributes significantly to

the risk. Due to the remoteness of most offshore facilities and the challenges presented

by marine environment, drilling and construction projects are typically major

undertakings which require the use of large and expensive marine vessel (drill ship,

derrick barges, supply vessel, diver-support vessels, etc.). These non-routine

operations dramatically increase the number of persons onboard a facility and the level

marine activity, material handling and other support activities over more routine

production activities.

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Figure 1.0: Deepwater development system (Wikipedia)

As shown by Figure 1.0, the offshore facilities can be divided into several types along

with their respective functions:

i. Fixed Platform (FP) consists of a jacket (a tall vertical section made of

tubular steel members supported by piles driven into the seabed) with a

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deck placed on top, providing space for crew quarters, a drilling rig, and

production facilities. The fixed platform is economically feasible for

installation in water depths up to 1,500 feet.

ii. Compliant Tower (CT) consists of a narrow, flexible tower and a piled

foundation that can support a conventional deck for drilling and production

operations. Unlike the fixed platform, the compliant tower withstands large

lateral forces by sustaining significant lateral deflections, and is usually

used in water depths between 1,000 and 2,000 feet.

iii. Tension Leg Platform (TLP) consists of a floating structure held in place

by vertical, tensioned tendons connected to the sea floor by pile-secured

templates. Tensioned tendons provide for the use of a TLP in a broad water

depth range with limited vertical motion. The larger TLP's have been

successfully deployed in water depths approaching 4,000 feet.

iv. Mini-Tension Leg Platform (Mini-TLP) is a floating mini-tension leg

platform of relatively low cost developed for production of smaller

deepwater reserves which would be uneconomic to produce using more

conventional deepwater production systems. It can also be used as a utility,

satellite, or early production platform for larger deepwater discoveries. The

world's first Mini-TLP was installed in the Gulf of Mexico in 1998.

v. SPAR Platform (SPAR) consists of a large diameter single vertical

cylinder supporting a deck. It has a typical fixed platform topside (surface

deck with drilling and production equipment), three types of risers

(production, drilling, and export), and a hull which is moored using a taut

caternary system of six to twenty lines anchored into the seafloor. SPAR's

are presently used in water depths up to 3,000 feet, although existing

technology can extend its use to water depths as great as 7,500 feet.

vi. Floating Production System (FPS) consists of a semi-submersible unit

which is equipped with drilling and production equipment. It is anchored

in place with wire rope and chain, or can be dynamically positioned using

rotating thrusters. Production from subsea wells is transported to the

surface deck through production risers designed to accommodate platform

motion. The FPS can be used in a range of water depths from 600 to 7,500

feet.

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vii. Subsea System (SS) ranges from single subsea wells producing to a nearby

platform, FPS, or TLP to multiple wells producing through a manifold and

pipeline system to a distant production facility. These systems are presently

used in water depths greater than 5,000 feet.

viii. Floating Production, Storage & Offloading System (FPSO) consists of

a large tanker type vessel moored to the seafloor. An FPSO is designed to

process and stow production from nearby subsea wells and to periodically

offload the stored oil to a smaller shuttle tanker. The shuttle tanker then

transports the oil to an onshore facility for further processing. An FPSO

may be suited for marginally economic fields located in remote deepwater

areas where a pipeline infrastructure does not exist.

1.2 Floating Storage Facility

Floating storage facility nowadays are becoming the preferred solution for new

installation of oil and gas fields as oil industry seeks better economic solutions to its

new challenges. The facility is suited for both small marginal fields and large deep-

water reserves (Wilne, 1998). The floating storage facility is the most commonly used

as the floating facility due to cost reasons and practical advantages if compared to

fixed installation. With the straight forward of building and conversion, based on the

ship building technology, the expensive offshore works can be kept to minimum as

most of the construction, hook-up and commissioning can be completed inshore with

significantly less cost (Alford, 1997). The floating facility has the ability to handle

changes of oil reservoir and process as well as offering storage and offloading

facilities. With this significant and comprehensiveness of the system, it will easily

contribute the potential hazard or risk that is difficult to quantify due to short of

experience if compared to shipping industry.

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Figure1.1: FPSO Kikeh anchoring picture

For the construction of floating facility, two options can be considered. First option is

the conversion of an existing vessel. With the condition of the vessel and accepted by

the Classification Society, the selected tanker is converted to become floating storage

and offloading facility. Such equipment is installed to suite for the facility to receive

oil and gas from designated oil well via subsea pipeline. Figure 1.0 shows one of the

examples, FPSO Kikeh which was converted from existing sailing vessel to floating

storage and offloading facility. Another option for oil storage is by building a new

purposely built floating facility. The concept of this huge oil storage is rather similar

with the converted vessel. Both facilities are expected to remain on the designated

location for up to 20 years with all the environmental conditions taken into

consideration. Some of the facilities are designed to suite the process of keeping the

hydrocarbon which is located on top of the vessel. The floating facilities are designed

to avoid any dry docking as compared to the practice of conventional sailing vessel.

This poses new challenges as on-site repairing can become very difficult and

equipment failure may have adverse consequences for vessel safety (Wilne, 1998).

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Figure 1.2 : FPSO compartmentalizing of the ship (Gilbert and Ward, 2001).

It is important to know the basic arrangement of the facility to understand further on

the operations that currently occur before studying the potential hazards surrounding

the area. The facility is divided to several compartment and equipment such as process,

storage, mooring system, utilities and offloading equipment. Figure 1.1 shows the

example of FPSO compartmentalizing of the ship, according to Gilbert and Ward

(2001). The basic arrangements of facility can be divided to the following areas:

i. Process Area

The process plant is usually placed on the frame structure elevated at a height of about

3.5 meters above the main deck. Equipment modules most sensitive to motions are

likely to be placed towards midships. The modules are assembled in such a way to

allow easy implementation and also fulfill the production requirements of the field.

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ii. Tank arrangement

Several tanks are dedicated to store the processing crude depending upon the ship

design capacity. Each tank is equipped with heating coil system to heat up the crude

to maintain the viscosity of storage crude.

iii. Mooring system

The vessel is permanently moored in position to its field. Majority of the vessel in

Malaysian waters are using External Bow Turret System with Single Point Mooring.

This type of mooring is connected to the seabed by mooring lines which is attached to

anchor piles or drag anchors. This design will tolerate the vessel to rotate 3600

depending upon the sea current condition. And some of the vessels are also installed

with Spread Mooring System to fix the position permanently. Each of the system is

designed to withstand up to 100 years environmental condition.

iv. Shuttle tanker mooring system

The shuttle tanker is moored to floating vessel by tandem mooring system during

offloading. The facility is able to moor above 150,000 DWT shuttle tanker with offtake

parcel more than 100,000 bbls. The main components of this system are hawser and

Quick Release Hook (QRH). QRH which commonly located at centre line of aft upper

deck is provided with hydraulic operating system to ensure hawser is released under

maximum load condition under monitoring system. The QRH is remotely controlled

from CCR as well as local control.

v. Custody metering system

A custody metering skid installed on an elevated platform on upper deck for metering

during offloading activity. The height of the metering skid is to comply with the

statutory requirement. The custody metering skid is designed for a nominal offload

capacity up to 20,000 bbls/hr.

vi. Inert gas (IG) and tank venting system

The existing system is normally retained and is modified in accordance to SOLAS

74/2000 requirement and national regulations. The flue gas from exhaust boiler is

directed through IG cooling system before entering cargo tanks.

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vii. Cargo system

The cargo system comprises of crude oil and fuel gas from turret swivel system to

production process and subsequently distributed to storage tanks. The offloading is

carried out at the stern of the facility via floating flexible hose, which is monitored by

a metering skid. This line is equipped with a double closure marine break away

coupling to minimize accidental oil spills. Additionally, it protects oil transfer system

from tensile overloading when export tanker drifting away. This also prevents any

surge pressure in case of incorrect valve control at export tanker.

viii. Power generation and distribution

Main power supply on the facility is generated by either gas turbine or steam turbine

generators, depending upon the design capacity. The generators are suitable for

parallel operation which allows load sharing of different diver and rating. Emergency

diesel generator is installed to be initiated automatically, soon after a blackout.

ix. Escape and evacuation system

The muster areas are designated at strategic places with adequate exit signage for the

personnel evacuation during emergency. The escape routes are provided with proper

illumination and signage on every level leading to the muster areas.

x. Active fire protection system

The purpose of active fire protection systems onboard floating facilities are to:

Control fires and limit escalation.

Reduce the effects of a fire to allow personnel to undertake emergency response

activities or to escape and evacuate if necessary.

Extinguish the fire where it is considered safe to do so.

Limit the damage to structure and equipment.

The normal active fire protection systems provided onboard floating facilities are as

follows:

Fire deluge and water curtain system

Engine room fire extinguisher system

Main deck foam system

Helideck fire protection system

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Galley fire extinguisher system

xi. Passive fire protection system

For normal operation and design, the floating facilities are equipped with passive fire

protection to control and mitigate the hazard. The passive fire protection systems

provided onboard floating facilities are as follow:

A60 fire insulation wall at control room, fire control station and accommodation.

A0 fire insulation wall at deck plate and deck head.

xii. Fire and Gas detection

The Fire and Gas (F&G) system is designed and installed to provide detection of fire

or a leak of flammable vapour onboard the floating storage facility, in a rapid and

reliable way.

The F&G system function as below:

Provide early and reliable detection of the presence of fire or flammable vapours.

Alert the personnel.

Initiate protective action.

The Fire and Gas system will receive input signals from end devices such as flame

detectors, heat detectors, smoke detectors, gas detectors and manual fire alarm call

points. These will protect personnel and equipment by providing automatic equipment

shutdown and activation of fire suppression equipment.

xiii. Lifesaving appliances

Lifesaving equipment for personnel evacuation and rescue are distributed strategically

around the floating facility. Lifesaving appliances are designed in compliance with

SOLAS requirements and Flag Administration.

The totally enclosed self-propelled survival crafts lifeboats, with 100% capacity for

persons onboard are installed in suitable type davits at ideal location on port and

starboard side of boat deck.

In addition, the other lifesaving system, the life rafts are installed and located at port

side, starboard side and main deck with 100% capacity for persons onboard if lifeboats

are failing to engage. The life buoys with flame proof illumination are located at the

various and strategic place for man overboard.

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xiv. Manpower philosophy and responsibility

Each facility has different numbers of manpower depending upon the respective duties

and responsibilities. This mainly consists of the regular crew for operation and

maintenance, as well as contractor for various activities onboard.

As described by Offshore Journal (2000), there are several advantages and

disadvantages for the floating storage to be operated at offshore location.

Advantages:

Cheaper than deepwater pipelines.

Development will take place earlier.

Render some fields commercial that are not developable due to infrastructure

access or other transport limitations.

Balance competition for smaller producers with larger producers.

Able to store tons of fluid.

Generally insensitive to depth, so can work in deepwater.

Contractors can lease the vessel.

Is gradually becoming a commodity as mobile service offshore.

Pipeline contractors still competitive because increased number of fields

made commercial in deepwater and ultra-deepwater by the FPSO option.

Vessel can connect to pipeline almost anywhere.

Disadvantages:

Takes 1-2 years to convert or build.

Companies compete with own pipeline infra-structure.

Companies must conduct timely and costly environmental study for a

specific field once accepted.

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Table 1.0: Number and cost of worldwide floaters orders, 2000-2011.

Source: RigLogix, 2011.

Table 1.0 above shows the number and cost of worldwide floaters order in 2000 to

2011. There were three orders in 2001 and two orders in 2002. As orders increased in

the middle part of the decade, price rose. Following the 2008 recession, order declined

markedly but prices only declined marginally (Mark and Brian, 2012). In 2011, the

demand of the floaters starts to increase back together with the price with an average

600 to 700 million dollars for 27 units ordered.

In business operation perspective, when external cost tends to increase top

management strives to decrease internal operational expenses, in whichever potential

areas within their circle of influence. Hence, potential hazard could impact hugely into

unexpected expense, if disaster happens. Furthermore, this subject matter is within

their control. As such, it must be mitigated and controlled by identifying existing

potential hazards. This prevention measure can be initiated through an identification

process of audit and assessment, on board of the facility by a committee of relevant

staff members.

  

  

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1.3 Potential hazard onboard facility

Hazard identification is a formal activity to examine all aspects of the operation under

consideration using a pro-forma approach. It depends on the quality of the input data

available and is typically performed as a table-top exercise lead by an experienced

facilitator and the participation by representatives covering the full range of design

and operational expertise for the system under consideration (Spires, 2001). As

pointed out by Spires (2001), the hazard identification has considered a total of 11

different hazard categories that exists during the production phase of development.

The hazards considered were categorized as listed below:

i. Blowout

ii. Riser and pipeline leaks

iii. Process leak

iv. Non-process fire and explosions

v. Cargo storage events

vi. Marine accidents on the FPSO

vii. Offloading accidents

viii. Tanker transportation

ix. Non-process spill

x. Ship collision

xi. Transportation (supply vessel and helicopters)

Biasotto and Rouhan (2004) explain that each identified hazard is analyzed in terms

of its functional failure, failure mode, consequences (including the possible different

scenarios), existing barriers, control methods and repair strategies. The identified

hazards are qualitatively classified on the basis of the like-hood and the related

consequences regarding risks to personnel, to environment and to asset and production

(Biasotto and Rouhan, 2004).

The major hazard to the offshore oil and gas facility is not much different from others

as described in lesson learn of the offshore accidents. They are clearly categorized as:

loss of well control or blowout, fire from the process plant, explosion from the process

plant, H2S and naturally occurring radioactive materials from reservoir, extreme

weather, ship collision, seismic events and helicopter or other aircraft impact

(Galbraith and Terry, 2008). For the past few years, the major accidents happen

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involving multiples fatalities, equipment damage and environment impact that require

high cost to overcome the situation. Khan et al. (2004) also point out that the main

hazards on offshore installation are the processed fluids and processing operations, the

sea environment and the process links between the reservoir and other installations.

The lesson-learnt is part of the process to identify the hazards and mitigate them to as

minimum as possible. These unfortunate events have happened to ‘Alexander L

Kjelland – structure failure during adverse weather condition’, ‘Ocean Ranger –

capsized due to ballasting’, ‘Piper Alpha – hydrocarbon release’ and ‘Helicopter Super

Puma crash at Cormorant’, as described in “The Offshore Industry – Learning from

Accidents” by Galbraith and Terry (2008).

Khan et al. (2004) also mentioned that the main hazards on offshore installations are

the process fluids and processing operations, the sea environment and the process links

between the reservoir and other installations. Vinnem (2000) described, there are some

differences with respect to how the risk contributions are categorized, but there are

nevertheless some clear observations that could be made:

Hydrocarbon associated risk (process, turret and riser) is the highest

contribution for all FPSOs considered.

Collision risk represents a significant contribution for two of the FPSOs (all

potential collision scenarios are included but shuttle tanker impact is the

dominating contribution).

Occupational accidents and accidents during helicopter transport were only

included for one of the cases.

The statistics from offshore overseas facility and offshore Malaysian facility are also

taken to show the total number of incident and accident for the past few years of

operation. This is for reference and guidance as such actual incident will give direct

impact to personnel, assets and environment. The experienced-based data from

offshore UKCS and Petronas Carigali Health Safety and Environment have been

collected and compiled for reference.

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The statistic of occurrences for floating production storage and offloading facility for

year 1990 – 2007 is shown in table 1.1 based on the HSE UK (Oil and Gas UK 2009).

It shows the total number of 685 occurrences happening during 17 years of floating

storage facilities which are operated in UK.

Table 1.1: The statistic of occurrences for floating, production, storage and offloading facility for year 1990 – 2007(Oil and Gas UK 2009).

The highest occurrence shows the total numbers of 404 from oil spill and hydrocarbon

release. This occurrence represents the severe impact to the environment. The second

highest is falling object with 96 occurrences, followed by crane accident and fire at

the facility. The falling object, crane accident and fire can be representing the impact

to personnel and facility asset. The number of ‘0’ shows that there is no occurrence

happens to the facility but it might be happening if the awareness of the hazard is not

seriously taken into consideration.

Table 1.2 shows the statistic of Incident Investigation Report (IIR) from 1/1/2003 to

31/3/2011 that has been reported by PMO Petronas Carigali Health Safety and

Environment (HSE) Department. The reports were taken from 7 locations in

Peninsular Malaysia; i.e, Abu cluster, Anding, Penara Lukut, FPSO Perintis, Puteri,

Sotong and Malong. Based on the statistics, 66 IIRs were reported from these

locations, as shown in the table.

15 0 0 0 17 71 296

69 0 0 1 2 1 1 1

404

6 0 3 270

50

100

150

200

250

300

350

400

450

Anchor failure

Blowout

Capsize

Collision

Contact

Crane

Explosion

Falling object

Fire

Foundering

Grounding

Helicopter

Leakage

List

Machinery

Off position

Spill/release

Structural

Towing/towline

Well problem

Others

Occurrences

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Table 1.2: The statistic of Incident Investigation Report (IIR) from year 2003 to year 2011 by PMO Petronas Carigali (HSE Online 2011).

As for the safety impact of operation in Malaysia, only one fatality, 10 equipment

damages and 1 oil spill recorded with highest 18 near misses had happened for over 8

years of statistics (HSE Petronas Carigali, 2011).

1.4 Problem statement

The floating storage facility was primary installed for storing and offloading

petroleum crude oil related activity. Nowadays, with the modern technology, the

facility becomes offshore producing installation; hence, storage facility and offloading

terminal are all merged into one integrated infrastructure. The facility allows oil

companies to produce oil in more remotes areas and in deeper water. As such, floating

storage facility would have been making it economically possible, in comparison to

other technology. The facility allows storage of crude oil and offloading of tankers in

the field rather than requiring a pipeline to transport oil to offshore terminal facility.

However, the provision of storage and offloading has introduced respective potential

hazards. Hence, this challenge requires wisdom and experience to manage the

associated risks.

1

810

1 2 1

7

1

9

2

18

1 3 202468

101214161820

Business interruption

Effluen

t discharge

quality

Equipmen

t dam

age

Fatality

Fire non process

Fire process

First aid

Hazard

Hydrocarbon release

Med

ical treatmen

t

Near miss

Oil spill (crude oil)

Public/security/others

Rectricted work days

Incident Investigation Report (IIR) 

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The floating storage facility in Malaysia nowadays also has typical similar problems

on the potential hazards being handled, in comparison to other storage facility around

the globe. Some of the hazards are being studied and have been taken into

consideration during facility’s design stage. But the projection of the level of hazards

is not known until the facility is fully in operation at the oil field. The level of hazards

during design stage is applied as a guideline, in order to establish some safety

procedure in preventing incident and accident case at the facility. With these guideline

and procedure, the management of each facility will impose several safety campaigns

for enhancing the awareness level. This may prevent death to personnel, damage to

property and oil pollution to the environment. Despite the continuous effort being

taken by the management, the problem still arises where we can see that the incident

and accident still happen nowadays. The actual level of hazards needs to be studied

further. The relationship towards the safety impact also needs to be highlighted so that

the implication to personnel, asset and environment can be determined further.

A more detailed analyses of past accidents and events have been performed based on

the database (World Offshore Accident Dataset) of DNV. This is one of the most

reliable and most complete databases of failure, incidents and accidents in the offshore

oil and gas sector (Christou and Konstantinidou, 2012).

Table 1.3 provides the number of accidental events for the different types of unit by

Christou and Konstantinidou (2012). The information given included all types of 

offshore facilities from the European area. Within the WOAD database, the records

are classified in 4 categories:

- Insignificant events

- Near-misses

- Incidents/Hazardous situations

- Accidents

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Table 1.3: Number of accidental events for different Types of Unit

Type of Unit Accidents Incidents/Hazardous situation

Near miss Insignificant

Barge (not drilling)

41 20 2 0

Concrete structure

81 419 74 136

Drill barge 65 22 0 2 Drill ship 91 65 3 4 Drilling tender 10 4 0 1 Flare 1 0 0 1 FPSO/FSU 10 68 8 23 Helicopter-Offshore duty

238 17 13 3

Jacket 716 889 127 252 Jackup 552 210 13 33 Loading buoy 13 19 2 5 Mobile unit (not drill)

18 3 0 0

Unkn.fixed struct/others

3 3 0 1

Pipeline 139 111 1 4 Semi-submersible

227 626 147 119

Ship, not drilling or production

6 27 1 8

Submersible 19 5 0 1 Subsea install/complete

4 6 0 2

Tension leg platform

13 132 22 29

Well support structure

122 36 2 2

Insignificant events represent hazardous situation, with very minor consequences. In

most of the cases, no damage was registered and repairs were not required. Small spills

of crude oil and chemicals are also included in this category. The database also

includes very minor personnel injuries, such as “lost time incidents”.

Near-misses represent events that might have or could have developed into an

accidental situation. No damage and no repair was required also in these cases.

Incidents represent hazardous situation which have not developed into an accidental

situation. Low degree of damage was recorded but repair/replacements usually were

required. This type includes also events causing minor injuries to personnel or health

injuries.

Accidents represent hazardous situation which have developed into an accidental

situation. In addition, for all situation/events causing fatalities and severe injuries this

type of event has been used.

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1.5 Research questions

Research questions are the process of gathering data, synthesizing information to

develop an understanding of overall study, and seeking answers which consist of the

following elements:

a. What is the level of hydrocarbon release, ship collision, hull failure and

occupational accidents at the floating storage facility?

b. What are the significant differences between the elements of demographic

facility towards the element of potential hazards?

c. Is there any relationship between potential hazards and the safety impact of the

facility?

1.6 Research aim

This study describes the potential hazards, mainly from marine activities, that should

be considered at the floating storage facility operating in Malaysia. This contributes to

better understanding on the level of potential hazard onboard the floating storage

facility and also the impact from the potential hazard to the personnel, asset and

environment. The findings from the collected experience-based and research survey

data will eventually facilitate the development of rationalized approaches for the top

management in decision-making for the safety guideline, policy making and

investment towards the floating storage facility.

1.7 Research objective

In associating with hazard or risk that contributed to the facility, the main aim of this

research is to focus on the following objectives:

a. To measure the level of potential hazard that consists of several key safety

elements such as, hydrocarbon release, ship collision, hull failure and

occupational accidents at floating storage facility.

b. To analyze the significant differences between the element of demographic

floating facility towards element of potential hazard.

c. To investigate the relationship between potential hazard towards the safety

impact of the facility.

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1.8 Scope of the research

The conceptual diagram is serving as a guide for further evaluation of the relationship

between potential hazards and safety impact. This study focuses on the floating storage

that currently operates at Malaysian waters. This research also measures the level of

significant differences between the elements of demographic floating facility. Each of

the floating storage facilities are operated by different field owners, hence this could

depict their delivery capability, reliability and integrity towards the safety aspect on

the facilities. Table 1.0 shows the selected facilities that currently operate in Malaysia

for this study.

Table1.4: List of facilities in this study

Name of facilities Field Owner

1. FSO Angsi Talisman Energy

2. FSO Cendor Petrofac Malaysia Ltd

3. FSO Abu Petronas Carigali

4. FPSO Kikeh Murphy Oil Ltd

1.9 Summary

In general, the floating storage facility is the combination of offshore traditional

process technology and marine technology. Thus, it is quite dependable on overall

operational safety control. It is essential that scenarios involving potential hazards are

assessed at an early stage in the design of new facilities, in order to optimize technical

and operational solutions. This study is conducted to establish the research survey data

of potential hazards for floating storage facility. In addition, research assessment is

engaged on hazards’ level, significant differences from demographic facility towards

potential hazards and the relationship between potential hazards towards safety

impact. This is based on the actual data of each facility operated at the field for the

past few years. In chapter 2, the literature review elaborates on the potential hazards

being involved at the floating storage facility. The hazards include the hydrocarbon

release, ship collision, hull failure and occupational accidents.

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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

The floating storage structure has been used widely and reliably throughout the oil

industry for many years. The floating storage facility was primarily installed as for

storage and offloading activity. Nowadays, with the modern technology, the facility

becomes offshore producing installation, storage facility and offloading terminal all

rolled into one single unit. Moan et al. (2002) describe that the floating storage and

production unit is a vessel that receives oil and gas from subsea wells through flow

lines known as risers. The vessels can be a purpose-built ship or semi-submersible, or

a converted shipping line tanker. This facility is commonly known as floating,

production, storage and offloading (FPSO). The vessel without production system is

termed as floating, storage and offloading (FSO).

Moan et al. (2002) explain that the vessel should perform five functions:

Process oil and gas through the production processing facilities;

Receive oil and gas through the riser system;

Discharge oil, gas and water through the riser and/or offloading system;

Store oil onboard the vessel, using tanks, piping and inert gas system;

Remain on position by means of a mooring system or station-keeping system.

Vinnem (2000) explains from the operational safety perspective of FPSOs: initial

summary report; although the facilities are becoming more common, operational

safety performance may still be considered somewhat unproven, especially when

compared to fixed installations. Furthermore, floating installations are more dependent

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on continued operation of some of the marine control systems, during a critical

situation. There is accordingly a need to understand the aspects of operational safety

for the facilities, in order to enable a proactive approach to safety, particularly in the

following areas:

Turret operations and flexible risers

Simultaneous marine and production activities

Vessel movement/weather exposure

Production, ballasting and offloading

The floating storage and offloading facility has the ability to handle changes of oil

reservoir and process, as well as offering storage and offloading of the treated crude

to other export tankers. With this significant and comprehensiveness of the system, it

will easily contribute to the potential hazard or risk which is difficult to quantify due

to FPSO’s limited experience if compared to long time spanning of shipping industry.

The hazard is defined as a situation with a potential source of harm that are causing

human injury, damage to the environment, damage to property or any combination of

such event (BS EN ISO 17776:2002). It may be a physical situation (e.g. a shuttle

tanker is a hazard because it may collide with the production installation), an activity

(e.g. crane operations are a hazard because the load might drop) or a material (e.g. fuel

oil is a hazard because it might catch fire). The essence of a hazard is that it has a

potential for causing harm, regardless of how likely or unlikely such occurrence might

be.

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2.2 Potential hazard at the floating storage facility

2.2.1 Hydrocarbon release

Figure 2.0: The hazard from hydrocarbon release

Hydrocarbon release is one of the potential hazards that can cause fire and explosion

to the facility. These events have the potential to cause catastrophic loss of facility and

multiple fatalities. Figure 2.0 shows the hazard from hydrocarbon release such as

pipeline failure or burst, flexible riser failure, tank venting and loss of well control or

blowout. The activities involve receiving produced oil from the process facilities,

distributing it to the storage tanks under controlled conditions and discharging the final

product to the off-take tanker. The process facilities may be above the deck of the

storage vessel as they would be on an FPSO, or they may be a remote platform as they

would be for an FSO. In this case, it is assumed that the process facility delivers

‘treated crude oil’ to the storage facility as most of the base sediment and water have

been removed consistently with normal specifications for crude oil transportation.

Although crude handling of the facility is similar in many aspects to crude oil handling

tanker, the facility is continuously loading the product whilst carrying out the other

operations as well. Concurrent operations and the sequence of these operations can

Pipeline failure/burst

Flexible riser failure

Tank venting

Loss of well control (blowout)

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differ greatly from conventional tankers and result in the greatest risks to be managed

through procedures and system design.

As described by Vinnem (2000) that there are some differences with respect to how

the contributions of hazards are categorized. But, there are nevertheless some clear

observations that the hydrocarbon associated risk from process, turret and riser are the

highest contribution for all floating storage facility considered. Khan et al. (2004) also

mentioned that the source of major hazard in offshore processing are the inventories

of flammable materials in the risers, associated pipelines of the reservoir, slug

catchers, separators, heat exchanger and high speed rotating equipment such as

turbines, compressors, export pumps and reinjection pumps. Therefore, these items

should be the main targets for inherently safer approaches. Hydrocarbon release, in

this context, is defined as gas or oil leaks (including condensation) from process flow,

well flow or flexible risers with a release rate greater than 0.1 kg/s (Aven et al., 2006)

The most significant disaster due to hydrocarbon release is offshore production

platform, called Piper Alpha on July 1988. It is believed that the leak came from pipe

work connected to a condensation pump. A safety valve had been removed from this

pipe work for overhaul and maintenance. The pump itself was undergoing

maintenance work. When the pipe work from which the safety valve had been

removed was pressurized at start – up following a shift change, the first leak occurred.

The leaks continued until the massive leakage of condensate gas ignited, causing an

explosion which led to large oil fires. The heat ruptured the riser of a gas pipeline

produced further massive explosion and fireball that engulfed Piper Alpha. Ultimately,

167 people died, including the 2 man crew of a fast rescue boat dispatched from a

standby vessel. All these chains of events took just 22 minutes with 62 people survived

(Galbraith and Terry, 2008).

2.2.1.1 Pipeline failure/burst

The pipeline failure or burst can cause massive hydrocarbon release to atmosphere. If

this situation cannot be controlled, there will be a fire and explosion to the facility

which causes major disaster. For offshore pipelines, the cleanup can be extremely

difficult and the consequences to the environment might be severe. The main cause of

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24

pipeline ruptures and leaks are corrosion (both internal and external), construction

damage, welding failure, incorrect operation and third party damage, such as ship

anchors and bottom trawls (Rygg, 2002).

The Piper Alpha catastrophe in 1988 revealed the potential of operational failures with

respect to dramatically destroying an entire offshore installation. When a severe

hydrocarbon leak occurred due to operational oversights, other safety barriers

collapsed mainly due to lack of prudent safety culture (Vinnem, 2006). In most FPSO

Safety Cases, the areas identified to be potentially highest risk are the engine room,

process plant and the turret. For the turret and process area, the Safety Case is generally

based on the likelihood and consequences of a process facilities explosion. It is

assumed that a release of gas or process fluids in the process areas would, if ignited,

lead to a jet fire. Other explosion scenarios are also considered (Wall et al., 2001)

Wall et al. (2001) also describe that the consequences of turret explosion could

typically be:

Structural damage or plastic deformation of the turret. Missile generation is

not considered credible. No potential for escalation to the gas injection

manifold.

Fatality to all individuals involved in the initial blast.

Serious injury confined to turret and immediate surrounding area. High

number of serious casualties.

Local escape and evacuation routes are potentially destroyed or damaged.

Process area inventories are potentially vulnerable to escalation but not

envisaged.

For the disconnect-able turret designs the connection and disconnection is an

important part of the turret safety case.

2.2.1.2 Flexible riser failure

There are two types of configuration system when referring to FSO or FPSO. Spread-

Moored System and Turret Moored System are quite common, in use for the floating

storage facility around the globe. Turret Moored System may be fixed internally to the

hull or mounted on an extension of the hull. The mooring lines are spread radially

from the turret and anchored to the sea bed via drag embedment anchors. The turret

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