Technical SessionOffshore Self Regulation Implementation in Malaysia Upstream22 November 2018

Abdullah bin Abdul GhaniAsset Assurance, Asset Integrity & Assurance Management Production & Operations Management Malaysia Petroleum ManagementPETRONAS 1Open

Presentation Outline• Introduction• Regulatory requirement under DOSH• FMA Sections Exemption to PETRONAS• Certificated Machineries Integrity Assurance Process• Way Forward

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Introduction• Offshore Self Regulation (OSR) officially launched in 2013 where

Malaysia Government granted PETRONAS an exemption to Section 19,36 and the FMA (Notification, Certificate of Fitness and Inspection)Regulation 1970 [P.U.(A) 43/1970] of the FMA 1967 with eight (8)conditions.

• One of the Order exemption conditions is related to determination andcertification of the eligible inspector to examine the integrity and provideassurance of the certificated machinery.

• OSR allows PAC to plan, and carry out inspection and maintenanceactivities internally.

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Agency responsible for ensuring the safety, health and welfare of people at work as well as protecting the public from the safety and health hazards arising from the business activities.

Agency vested with the entire ownership in obtaining petroleum lying onshore or offshore of Malaysia and is responsible for stewardship and management of the overall exploration and production activities in Malaysia.

Provisions for securing the safety, health and welfare of persons at work and for protecting others against risks to safety and health in connection with the activities of persons at work, to established the NCOSH, and for matters connected therewith.

Occupational Safety and Health Act 1994 (OSHA)

Provision for the control of factories on matters relating to the safety, health and welfare of persons, and the registration & inspection of machinery and for matters connected therewith.

Factory & Machinery Act 1967

To consolidate laws relating to safety in transportation,storage and utilisation of petroleum and to provide for matters relating thereto.

Petroleum (Safety Measures) Act 1984

Provision exploration and exploitation of petroleum resources in Malaysia

Petroleum Development Act 1974

PETRONAS Malaysia Petroleum Management (MPM) takes role as a single reference point for all upstream exploration andproduction activities in ensuring energy security for Malaysia and sustainable development of the domestic oil & gas industryas the provision in Section 3 PDA 1974.

Regulatory requirement under DOSH

(DOSH)

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28 March 2013:Exemption granted officially by Human Resources Minister. The Order titled “Factory and Machinery (Exemption to PETROLIAM NASIONAL BERHAD) Order 2013”. The conditions of exemption are highlighted in the paragraph 3. of the Order)

FMA Sections Exemption to PETRONAS

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Exempted Sections and Conditions

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No. Direct Exemption Action Party1 Section 19 – Certificate of fitness PETRONAS & PAC2 Section 36 – Installation of machinery PETRONAS & PAC3 Factories & Machinery (Notification, Certificate of Fitness and Inspection)

Regulations 1970PETRONAS & PAC

No. Exemption Conditions1 PETRONAS shall involve DOSH in its annual work plan relating to occupational safety and health matters2 PETRONAS shall submit its annual work plan including the determination of OSH indicator to DOSH each year for

monitoring purposes3 PETRONAS shall involve DOSH in every verification activity at the highest level of management for the implementation of

the OSH management system4 One Joint Committee which members are from DOSH and PETRONAS shall be established for the purpose of

communication, discussion and decision making on any matters relating to OSH, and maintenance of the offshore machinery.

5 PETRONAS shall give DOSH the right to determine and certify the eligible inspector to examine the integrity of the machinery.

6 PETRONAS shall allow DOSH to conduct an audit or examination on any premises at any time in the interest of OSH. 7 PETRONAS shall involve DOSH in every plan and execution of shut down and reconditioning activities of the offshore

machinery.8 PETRONAS shall cooperate with DOSH for any purpose in relation to Offshore OSH.

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NOTE:*Essential documents for EIAC issuance:- Manufacturing Data Record (MDR)- HT Certificate- GA Drawing’**To include hard stamping practice within the guideline

Design Fabrication Installation & Commissioning

Cons

ultan

t/ Fa

brica

tor/

Contr

actor

PAC

OSR I

nspe

ctor

PETR

ONAS

TA: Technical Authority, SME: Subject Matter Expert, FAT: Factory Acceptance Test, HT: Hydrostatic Test, EIAC: Equipment Integrity Assessment Certificate

Submit equipment datasheet & specification

New PV/Boiler

Review/ approved by TA/SMENo

Submit equipment drawing & calculation

Authorized 3rd Party to appraise

Yes Review/ approved by TA/SME

Fabrication

Authorized 3rd Party to witness and approve HT/ FAT

Review & approve HT/LT/FAT

Installation & commissioning

Witness & approve test. Call up OSR inspector during site initial inspection

Witness & approve test. Issue *EIAC

No

Yes

NoImportedLocal

Yes

No

Yes`

Initiate Request NoHandover to Operation & update equipment register

Cont. to part 2 of 2

NoNo

Yes

Yes

Witness & approve HT/LT/FAT.No

Acknowledged & register the equipment

Notify PETRONAS for registration

Verify & approve docs.

OSR Process Workflow For Pressure Vessel, Boilers and Lifting Equipment…1/2

Certificated Machineries Integrity Assurance Process

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Operation Decommissioning

PAC

OSR I

nspe

ctor

PETR

ONAS

Regular inspection *Repair/Rerating

Review/ Endorse by TA/SMEAccept

Fail

Isolate (Mothball) Replace Notification of Decom. & update equipment register

Witness & Verify

NOTES:*Repair shall be performed by repairer approved by PETRONAS*PAC shall submit quarterly update to PETRONAS on each Pressure Vessel under OSR implementation (to be included in OSR MS)

OSR Process Workflow For Pressure Vessel, Boilers and Lifting Equipment..2/2

Cont. from part 1 of 2

Start to operate

•Verify and/or witness tests•Asses the inspection result

Initiate Request

EIAC RenewalAccept

Fail

Accept

Fail

Accept

Fail Witness & Verify Verify & Update record

Acknowledge

TA: Technical Authority, FAT: Factory Acceptance Test, HT: Hydrostatic Test, EIAC: Equipment Integrity Assessment Certificate

To notify PETRONAS End

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Way forwardPAC shall comply with the OSR Process Work Flow for Certificated Machineries (Pressure Vessel, Boilers and Lifting Equipment) integrity assurance requirements

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Thank you

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