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HSE in Integrated Operations

HSE in the Greater Ekofisk Modification Project

2nd October, 2007Arne Helge Andersen Sr. HSE Engineer Modification Projects

Content of this Presentation

ConocoPhillips in Norway & EkofiskEkofisk Modification Projects HSE statusLearning from incidents and preventing recurrence Onshore Project Centre Risk management

North Sea Business Unit

The NSBU includes:

Norway

• Regional headquarter for Europe and Western Africa

United Kingdom

The Netherlands

Tjeldbergodden

East Irish Sea

London

Theddlethorpe

Teesside

Netherlands Emden

StavangerAberdeen

Heidrun

Miller

Britannia

Ekofisk

Rotliegendes

Carboniferous

J-Block

MacCulloch Grane

Alvheim

Oseberg

Troll

Visund

HuldraStatfjord

Clair

Alba

Largest foreign operator in Norway Gross production: about 450,000 barrels of oil equivalent (boe) per dayNet production: about 209,000 boe per day, includes partner-operated fields

Ekofisk Eldfisk Embla Tor Heidrun

Statfjord Huldra Oseberg Troll Visund Grane

The Greater Ekofisk AreaThe Ekofisk license (PL018):ConocoPhillips 35.112%TOTAL 39.896%Eni 12.388%Hydro 6.654%Petoro 5.000%Statoil 0.950%

Total personnel offshore: ca. 11004 fields in production4 fields abandonedOil production – 325,000 barrels per dayGas production – 350 million scf per dayWater injection – 900,000 barrels per day

Ekofisk

Eldfisk Tor Embla

2/4 B

2/4 K

2/4 H

2/4 W2/4 FTP

2/4 J

2/4 X

2/4 C

2/4 Q

B 11

H 7EMBLA2/7 D

EKOFISK2/4 A

2/4 T

2/7 A

2/7 FTP2/7 E

ELDFISK2/7 B

Oil to Teesside

Gas to Emden

Tor2/4 E

Tananger

2/4 M

The Greater Ekofisk Area

Platform modifications- The driving forces

Regulatory requirements concerning• Platform safety, work environment,

emissions, noise, etc.Extended operation of legacy platforms

• Renewed consents under new regulatory requirements

Increased reservoir exploitation and changing production parameters

• New platforms, upgraded drilling rigs, new production lines, enhanced process capacity, etc.

Reduced operating costs • E-operation and new forms of

cooperation, remote control of platforms, process simplification, more and better instrumentation, etc.

Modification projects

Oil Company and Vendors

Two EPCIC contractors∼

500,000 mhrs - offshore installation

∼

600,000 mhrs - onshore engineering

∼

130 men/day - average manning level offshore

∼

115 vendors with frame agreement

∼

45 suppliers and contractors with their personnel offshore

Give the GEM (Greater Ekofisk Modifications) team technology that connects them, inform them and enables them to invent, to collaborate and to succeedBreak the work into small logical elements (work tasks) in order to fully understand and control all aspects of the work, to successfully complete the construction work in a smart and efficient manner. The 4 elements needed for an efficient modification project with good HSE performance

The procedures (work package)The material The tools The personnel

IO Methodology

Workplace

Procedure

Crew

Tool

Material

• Correct• Adequate• Secured • Special tools• Safety net

• The Team• Competence• Experience

• GEM• General

• Specialist

• Container• Prefabrication• Equipment• Scaffolding• Vendor • Consumables • Services

• Work Package• Procedures• Drawings• Plans• Methods• Instructions

GEM On-/Offshore Line Management Operational Workplace Safety

Behind each of the four elements is a controlled process. The crew is sent to the workplace when procedures, tools and material are available. Behind each of the four elements is a controlled process. The crew is sent to the workplace when procedures, tools and material are available.

EngineeringPre-

fabricationOffshore

Installation

Mai

n A

c tiv

ity

MC/Com Handover

Close-outFront End Loading

Modification Project Work Process

DefinitionBudget & Act. Plan

Integrated work processes – COPNO/Contractor – Onshore / Offshore

Supported by new Technology

Onshore Project Centre (OPC)

COPNOOrg.

TAG /SAGOperationTananger

OperationTananger & offshore

Onshore Project Centre Strategy

Take control and ownership of the offshore modification worksite by forming an integrated ConocoPhillips and main contractors work team.

Adapt and change work processes in order to apply new technology for cooperation between offshore & onshore, and between ConocoPhillips and contractors

20 Project Leaders

Onshore

More than 100 vendors

GEM OnshoreProjects Centre

(OPC)

Ekofisk centre 2/4K, B & A Eldfisk

15 Worksites40 Workers4 Foremen

Construction Supt

Real-time project

management

Foremen Onshore

Foremen Offshore

5 Worksites20 Workers2 Foremen

10 Worksites20 Workers2 Foremen

500 engineers working onshore

GEM Project HSE Performance Results

0

1

2

3

4

5

6

7

8

2003 2004 2005 2006 2007

TRR Main Mod ContractorsTRR Mod Contractors incl. main subcontractors

Main Modification Contractors Aibel & Fabricom

Year 2003 2004 2005 2006 2007

Hours offshore 362 316 576 569 396 787 440 785 410 000

MTC (Medical) 10 9 1 1 2

TRR 5,5 3,1 0,50 0,48 1,0

Falling Objects NR NR NR 3 2

Modification Contractors Aibel & Fabricom & subcontractors

Year 2003 2004 2005 2006 2007

Hours offshore 362 316 685 489 560 024 542 493 515 000

MTC (Medical) 10 12 4 4 2

TRR 6,8 4,1 1,65 1,54 0,8

Falling Objects NR NR NR 6 3

Aibel, Fabricom, D&F, Linjebygg offshore, National Oilwell Varco, Mollier, etc.

TRR: Total Recordable Rate, per 200.000 hours worked offshore Hours above are hours worked offshore for the GEM project

HSE – TRR Reduction

Total recordable personnel injuries radically reduced from 2004 to 2007 through:

Continuous interaction on-/ offshore through video collaboration, document sharing, portable video, etc.Focus on line management’s responsibility for HSEImplementing tools like ConocoPhillips Cardinal Rules and PSI (Personal Safety Involvement)GEM Safety bulletins for instructions and information sharingCrew competence criteria

Experienced mixed with inexperienced Registering number of returns offshore for GEMRegister of contractors’ and subcontractors’ personnel

Violating the agreed rules has consequences

Integrated Team

GEM Organization Line Management Responsibilities

Offshore Workplace

Work Team Leader

Offshore Foreman

Operator

Construction Leader OPC

Project Director

OPC Foreman

Construction Leader OPC

Project Director

EPCIC Contractor

HSE – Incident prevention

Every incident analysed for learningIncidents deemed serious always require preventive measures

Reportable medical treatment are serious First aid incidents and incidents without injuries may also be deemed serious

Short time span between incident and preventive measuresImplementation of preventive measures

Without waiting for the official investigation reportNo waiting for previous actions to workRepeated incidents requires new actions

Knowledge Sharing / Process ImprovementKnowledge Sharing / Process Improvement

ConcludeConcludeAnalysisAnalysis CorrectionsCorrections Implement.Implement.

• Time-out• Brief foremen• Process related• Crew

•Competence• Procedures

•Method •Instructions

• Tools•New PPE•Replace tools

• Material•Warehouse

• Time-out• Brief foremen• Process related• Crew

•Competence• Procedures

•Method •Instructions

• Tools•New PPE•Replace tools

• Material•Warehouse

• Incident, FAC, MTC, WDC, UES, etc.

• Review own incident for immediate and basic cause

• Review incidents outside GEM

• Incident, FAC, MTC, WDC, UES, etc.

• Review own incident for immediate and basic cause

• Review incidents outside GEM

• Safety bulletin• Process update

•Crew•Procedures•Material •Tools

• Steering doc. update

• Safety bulletin• Process update

•Crew•Procedures•Material •Tools

• Steering doc. update

• Immediate cause• Root cause• Procedure

adherence • New information• Additional

information • Best practice

• Immediate cause• Root cause• Procedure

adherence • New information• Additional

information• Best practice

GEM On-/Offshore Line Management Operational Workplace Safety

Data Collection Data Collection Follow-upFollow-up

• Contract Mgt Plan• Steering Com.

Meet. • Weekly Mgt

Meeting • Bi-weekly HSE

Meet. • Toolbox meeting• Daily HSE

Meeting • Morning meeting• Foreman meeting

• Contract Mgt Plan• Steering Com.

Meet.• Weekly Mgt

Meeting• Bi-weekly HSE

Meet.• Toolbox meeting• Daily HSE

Meeting• Morning meeting• Foreman meeting

• Bulletin review, 2 per week

• Regular contact with work place

• Audits and verifications

• Bulletin review, 2 per week

• Regular contact with work place

• Audits and verifications

The OPC compared with Traditional Work Methods

Administrative work moved onshore• Foremen spend more time out in the field, and less in the

office• Foremen pay more attention to workplace safety

Improved dialog between offshore foremen and onshore management

• HSE meetings and time-outs arranged from onshore with onshore management attending

• Onshore management attends offshore safety tours via portable video cameras

HSE – Cultural change

The Cultural Change:The GEM model delivers focus on Quality, Control and OwnershipA step change reduction in incidents achieved within one yearLeadership, the workforce, safety delegates and unions are aligned behind the modelPeople are proud of working for GEM, because of the good HSE results. GEM has received prizes, internal in ConocoPhillips and Aibel, for outstanding HSE performance GEM has become role model for other parts of the organization

Cardinal Rules

GEM House Rules

Systems & Procedures

GEM Project Risk Management Preventive and Consequence Reducing Barriers

Consequence reduction

Event

Event prevention

Safety Bulletins

Procedures and instructions

PPE

Platform control systemsMOC

Emergency response teamsPSI

Personnel

MaterialTools

GEM HSE Barrier Poster

Thank you for your attention!