OGP safety performance indicators. Report No. 367 May 2005

Transcription

1 OGP safety performance indicators 2004 Report No. 367 May 2005

2 P ublications Global experience The International Association of Oil & Gas Producers has access to a wealth of technical knowledge and experience with its members operating around the world in many different terrains. We collate and distil this valuable knowledge for the industry to use as guidelines for good practice by individual members. Consistent high quality database and guidelines Our overall aim is to ensure a consistent approach to training, management and best practice throughout the world. The oil and gas exploration and production industry recognises the need to develop consistent databases and records in certain fields. The OGP s members are encouraged to use the guidelines as a starting point for their operations or to supplement their own policies and regulations which may apply locally. Internationally recognised source of industry information Many of our guidelines have been recognised and used by international authorities and safety and environmental bodies. Requests come from governments and non-government organisations around the world as well as from non-member companies. Disclaimer Whilst every eff ort has been made to ensure the accuracy of the information contained in this publication, neither the OGP nor any of its members past present or future warrants its accuracy or will, regardless of its or their negligence, assume liability for any foreseeable or unforeseeable use made thereof, which liability is hereby excluded. Consequently, such use is at the recipient s own risk on the basis that any use by the recipient constitutes agreement to the terms of this disclaimer. The recipient is obliged to inform any subsequent recipient of such terms. Copyright notice The contents of these pages are The International Association of Oil & Gas Producers All rights are reserved.

3 OGP safety performance indicators 2004 Report No: 367 May 2005

4 The safety statistics for 2004 were derived from data provided by the following companies: OGP Members ADNOC Amerada Hess Anadarko BG BHP BP Cairn Energy ChevronTexaco CNOOC ConocoPhillips Devon Energy DONG ENI ExxonMobil GNPOC HOCOL Kuwait Oil Company Maersk Norsk Hydro OMV Occidental PDVSA Petro-Canada Petronas Carigali Sdn Bhd Premier Oil PTTEP Qatar Petroleum RasGas RepsolYPF Saudi Aramco Shell Statoil TNK - BP Total Unocal VICO (Subsidiary of BP but reporting separately) Yukos

5 Safety performance of the global E&P industry 2004 data Table of contents 1 Summary Fatalities Lost time injuries Total recordable incidents Database Overall results Fatalities Fatal accident rate Fatal incident rate Fatality causes Fatality demography Lost time injury frequency Severity of lost workday cases Total recordable incident rate Accident triangles Results by Region Fatalities Lost time injury frequency FAR and LTIF 5-year rolling averages Severity of lost workday cases Total recordable incident rate Individual country performance Results by Function Fatalities Lost time injury frequency Severity of lost workday cases Total recordable incident rate Exploration performance Drilling performance Production performance Other performance Results by Company Overall company results Company results by function Signifi cant incidents 37 7 Conclusions 38 Appendices Appendix A Database dimensions Appendix B Data tables Appendix C Fatal incident reports...55 Appendix D Significant incident reports...67 Appendix E Restricted workday analyses Appendix F Glossary of terms...81 Appendix G Contributing companies...83 Appendix H Countries represented i

6 International Association of Oil & Gas Producers Preface The principal purposes of this report are to present the safety performance of the global E&P industry in 2004, and to compare the performance to that of previous years. The report allows OGP members and others to benchmark their performance against that of the global E&P industry. The key indicators presented are: number of fatalities, fatal accident rate, lost time injury frequency and total recordable incident rate. The report presents global results for these indicators, which are then analysed by region, function and company. A code is used for the company results to preserve anonymity. The performance of both companies and contractors is reported. Wherever practicable, results are presented graphically. The data underlying the charts are presented in Appendix B. The tables are organised according to the section in the report where the chart appears. ii

7 1 Summary Safety performance of the global E&P industry 2004 data The report summarises the safety performance of the global E&P industry for It is based on the analysis of 2290 million workhours of data, submitted by 37 companies from operations in 78 countries. The primary indicators used to benchmark the safety performance of the industry are; number of fatalities, fatal accident and incident rates, lost time injury frequency, and total recordable incident rate. For the majority of indicators there has been little change compared to the previous years values. However, when viewed over a longer period, signifi cant improvement remains evident. 1.1 Fatalities 18 company and 102 contractor fatalities were reported in The total of 120 is 9 more than reported in In addition, 7 third party deaths were reported (10 less than in the previous year). The increase in the number of fatalities is against the background of a 2% increase in the number of workhours reported. The overall fatal accident rate (FAR) is 5.2 company/ contractor fatalities per 100 million workhours. This represents an increase of nearly 6% on last year s figure. The company and contractor FAR are 2.82 and 6.18 respectively. Onshore and offshore FAR are 5.00 and 6.02 respectively. In line with previous years, the two most common causes of fatalities are associated with the categories vehicle incidents and struck by incidents. A helicopter crash in USA, in which 9 contractors and 1 company employee died, was the incident in which the largest number of casualties occurred. Fatal accident rate per 100 million hours worked Fatality causes (excluding unknown ) Other 17.5% Air transport 12.3% Caught between 6.1% Drowning 4.4% Electrical 7.9% Vehicle incidents 21.9% Fall 6.1% Explosion/ burn 4.4% Struck by 19.3% 1

8 International Association of Oil & Gas Producers 1.2 Lost time injuries Lost time injury frequency per million hours worked The overall Lost Time Injury Frequency (LTIF) decreased from 1.16 in 2003 to 1.09 in This represents a 6% decrease compared to 2003 and a return to the 2002 value. Contractor performance at 1.17 lost time injuries per million hours worked represents an improvement compared to the previous year s performance and a return to the 2002 value. The difference between company and contractor LTIF has halved compared to last year with the contractor LTIF being 34% greater than the company value. There were 2371 reported injuries resulting in at least one day off work. This equates to an average of 45 such injuries every week of the year, a 7% reduction on Approximately 256 person-years are estimated to have been lost by reporting companies and their contractors as a result of injuries. 1.3 Total recordable incidents Total recordable incident rate - company & contractors per million hours worked The rate for all recordable incidents (fatalities, lost workday cases, restricted workday cases and medical treatment cases) was 3.94 incidents per million hours worked. This is a 2% improvement compared to Database The database for 2004 embraces 2290 million hours worked, a 2% increase on 2003 and the highest in the history of safety data reporting. 37 companies contributed data. All but 2 reported statistics for their contractors. Operations in 78 countries are included in the database. 2

9 Safety performance of the global E&P industry 2004 data 2 Overall results In this section the primary indicators used to measure the industry s safety performance are presented. These are the number and nature of fatalities, fatal accident rate (FAR), fatal incident rate (FIR), lost time injury frequency (LTIF), and total recordable incident rate (TRIR). 2.1 Fatalities Company fatalities 18 15% Contractor fatalities % Onshore fatalities 88 73% Offshore fatalities 32 27% Company workhours 28% Contractor workhours 72% Onshore workhours 77% Offshore workhours 23% Third party fatalities 7 Company/Contractor Fatalities There were 120 company and contractor fatalities reported in This is 9 more than were reported in This is against the background of a 2% increase in the number of workhours reported. The 120 fatalities occurred in 99 separate incidents. The worst reported incident was a helicopter crash in USA, in which 9 contractors and 1 company employee died. In Nigeria, 4 contractor employees died after being attacked by armed militants and a further 4 contractors died in a helicopter crash. 3 people died in Iran from suffocation after inhaling H 2 S. 30 of the company/contractor fatalities occurred in Africa, 28 in FSU and 26 in the Middle East. Third Party Fatalities Not all companies collect and report information associated with third party fatalities, hence comparison with previous years needs to be carried out with care. 7 third party fatalities were reported in 2004, compared to 17 in of the 7 incidents reported were associated with vehicle accidents. A listing of all fatal incidents appears in Appendix C. 3

10 International Association of Oil & Gas Producers 2.2 Fatal accident rate (FAR) Overall 5.24 (6% worse) Company 2.82 (25% worse) Contractor 6.18 (2% worse) Fatal accident rate (FAR) The number of company/contractor fatalities per 100,000,000 (100 million) hours worked. Onshore 5.00 (3% better) Offshore 6.02 (45% worse) The percent. in parentheses relates to the 2003 average Fatal accident rate - company & contractors per 100 million hours worked The overall fatal accident rate is 5.24 company/contractor fatalities per 100 million workhours. This represents an increase compared to the 2003 rate of 4.9. The company and contractor FAR values are 2.82 and 6.18 respectively, both higher than last year (2.26 and 6.06). The FAR onshore value of 5.00 shows a small improvement on the 2003 value of The offshore FAR of 6.02 is 44% worse than the 2003 value (4.16). The FAR onshore and offshore displays a large variation over the 10 year period shown. Neither is consistently better. Fatal accident rate - onshore & offshore per 100 million hours worked There has been a slight deterioration in FAR in 2004 compared to the 2003 values. Over the 4-year period there has been little change in FAR however the long term trend appears to be downwards. 4

11 Safety performance of the global E&P industry 2004 data 2.3 Fatal incident rate (FIR) Without third party incidents Overall 4.32 (4% better) Company 2.82 (44% worse) Contractor 4.90 (12% better) Onshore 4.55 (2% better) Offshore 3.58 (10% better) The percent. in parentheses relates to the 2003 average With third party incidents Overall 4.63 (10% better) Company 3.29 (9% worse) Contractor 5.15 (15% better) Onshore 4.95 (10% better) Offshore 3.58 (14% better) The percent. in parentheses relates to the 2003 average Fatal incidents are incidents resulting in one or more fatalities. The FIR is a measure of the frequency with which fatal incidents occur, in contrast to the FAR which measures the frequency of fatalities. Accordingly, for company and contractor fatalities only, FIR will be less than or equal to the FAR. Comparison of FAR and FIR gives an indication of the magnitude of the incidents in terms of lives lost. The overall fatal incident rate fell to 4.32, representing a 4% reduction compared to 2003 (4.49). The inclusion of 3rd party incidents increases the FIR to Whilst this represents a 10% improvement compared to 2003, it is a difficult indicator to use as not all companies report 3 rd party incidents. In common with FAR, company FIR is consistently lower than contractor FIR. However, in contrast to FAR, for the majority of the past 10 year period, onshore FIR has been greater than offshore FIR. Fatal incident rate - company & contractors per 100 million hours worked Fatal incident rate - onshore & offshore per 100 million hours worked Fatal incident rate (FIR) The number of fatal incidents per 100,000,000 (100 million) hours. worked 5

12 International Association of Oil & Gas Producers 2.4 Fatality causes Incidents Fatalities (not 3 rd party) Air transport 2 14 Caught between 7 7 Drowning 4 5 Electrical 9 9 Explosion/burn 4 5 Fall 7 7 (1) Struck by Vehicle incident (6) Other Unknown 6 6 Total The fi gures in parentheses are the additional numbers of incidents that resulted in one or more third party fatality Fatality causes % fatalities associated with each reporting category (excluding unknown ) Other 17.5% Air transport 12.3% Caught between 6.1% Drowning 4.4% Electrical 7.9% Vehicle incidents 26.7% Other 6.7% Air transport 7.1% Caught between 8.1% Drowning 6.1% Electrical 5.5% Vehicle incidents 21.9% Struck by 19.3% Fall 6.1% Explosion/ burn 4.4% Struck by 18.4% Falls 9.5% Explosion/ burns 12.7% The piecharts show the percentage of fatalities within each of the reporting categories for 2004 and for the 5 year period In common with previous years, the largest proportion of the fatalities reported in 2004 was the result of vehicle related incidents. Similarly, incidents in which individuals were struck by moving or falling objects were the second greatest contributor to the fatality statistics. 6

13 Safety performance of the global E&P industry 2004 data 2.5 Fatality demography The ages of victims were specified in 42 instances of fatalities in The chart shows the age distribution of victims when these cases are added to the 45 instances in 2003 and 59 instances in Of the 106 fatalities where the gender was specified, 1 was female. Number of fatalities by age group for Company and contractor 7

14 International Association of Oil & Gas Producers 2.6 Lost time injury frequency (LTIF) Overall 1.09 (6% better) Company 0.87 (10% worse) Contractor 1.17 (11% better) Lost time injury frequency (LTIF) The number of lost time injuries (fatalities + lost workday cases) per 1,000,000 hours worked. Onshore 1.04 (8% better) Offshore 1.26 (1% better) The percent. in parentheses relates to the 2003 average Lost time injury frequency - company & contractors per million hours worked Lost time injury frequency - onshore & offshore per million hours worked There were 2371 lost time incidents (excluding fatalities) resulting in at least one day off work incidents were contractor related, 539 company related. The LTIF value associated with company personnel is 10% worse than in The contractor LTIF is 11% better than the previous year and represents the lowest value on record. The overall LTIF improved by 6% from 1.16 in 2003 to 1.09 in Onshore performance is 8% better than in The difference between company and contractor LTIF has almost halved compared to the difference in 2003, with the contractor value being 34% greater than the company value. The above equates to an average of 45 incidents every week of the year. Approximately 256 person-years are estimated to have been lost by reporting companies and their contractors. assuming 220 working days per year 8

15 Safety performance of the global E&P industry 2004 data 2.7 Severity of lost workday cases (LWDC) Severity Severity is defi ned as the average number of days lost (where reported) for each lost workday case. Overall (2% better) Company (49% better) Contractor (34% worse) Onshore (10% worse) Offshore (32% better) The percent. in parentheses relates to the 2003 average Severity - company & contractors average days lost per LWDC In 2004 only 64% of the reported hours qualify for inclusion in this analysis. The upstream industry reported days of work lost through injuries. This equates to around 181 man-years of activity. However it should be noted that the number of days lost was only reported for 71% of the lost workday cases. Overall a slight improvement can be seen in the 2004 result compared to In the company category the severity of lost work day cases is almost half that reported in 2003, while in the contractor category it is about one third worse. Offshore the result is nearly one third better than in Severity - onshore & offshore average days lost per LWDC 9

16 International Association of Oil & Gas Producers 2.8 Total recordable incident rate (TRIR) Overall 3.94 (2% better) Company 3.71 (107% worse) Contractor 4.00 (15% better) Onshore 3.17 (15% better) Offshore 6.36 (31% worse) Total recordable incident rate (TRIR) The number of recordable incidents (fatalities + lost workday cases + restricted workday cases + medical treatment cases) per 1,000,000 hours worked. The percent. in parentheses relates to the 2003 average Total recordable incident rate - company & contractors per million hours worked TRIR calculations are only made on returns that include information on medical treatment cases as well as other data. In 2004, 81% of the reported hours qualified for inclusion in this analysis. In 2004, improvement can be seen in the contractor measure of TRIR with the overall value being 15% less than the 2003 value. The greatest increase in TRIR was associated with company activity, where a 107% increase was measured against the 2003 value. Total recordable incident rate - onshore & offshore per million hours worked 10

17 Safety performance of the global E&P industry 2004 data 2.9 Accident triangles In this section the relative numbers of types of occupational injury are shown in the form of accident triangles. The ratios have been corrected to account for the absence in some returns of medical treatment cases. Overall, the ratio of lost time injuries to fatalities is 20:1 and for total recordable incidents to lost time injuries about 3:1. In 2003 these ratios were 23:1 and 2.8:1 respectively accident triangles 2003 accident triangles 11

18 International Association of Oil & Gas Producers Regions into which data are partitioned 12

19 3 Results by region Safety performance of the global E&P industry 2004 data 3.1 Fatalities In this section the safety performance of regions and individual countries within the regions are presented. A list of countries from which companies have reported information is provided in Appendix H, which also shows the division of countries into regions. The term Australasia refers to Australia, New Zealand and the islands in the SW Pacifi c. Fatal Fatalities incidents Africa Asia/Australasia 6 6 Europe 2 2 FSU Middle East North America 8 17 South America The table shows the number of fatal incident and fatalities in each of the 7 regions into which the data are partitioned. It can be seen that the highest number of fatalities occurred in the African region where 30 fatalities were reported, 28% fewer than in A further 7 fatal incidents were reported involving third parties only, each the cause of one fatality. Three of the incidents occurred in Africa, 2 occurred in Asia/ Australasia and 2 in South America. Further analysis of the fatality statistics is presented in Section 3.3, where 5-year rolling averages of FAR are presented for each of the regions. 3.2 Lost time injury frequency Overall 1.09 (6% better) Africa 0.74 (9% better) Asia/Australasia 0.50 (19% worse) Europe 1.59 (24% better) FSU 1.04 (14% worse) Middle East 0.84 (48% better) North America 1.22 (24% worse) South America 2.23 (no change) The percent. in parentheses is relative to 2003 average The figure presents the LTIF for the seven regions for both 2004 and It can be seen that the LTIF has improved, compared to the 2003 values, in Europe, the Middle East and, to a lesser extent, in Africa. In common with the previous year, Asia/Australasia is seen to be the best performing region, and South America the worst. However, the largest improvement from 2003 to 2004 is seen for operations in the Middle East region from 1.6 in 2003 to 0.8 in 2004, a 50% improvement. Lost time injury frequency per million hours worked Four regions, FSU, Middle East, Africa and Asia/ Australasia are seen to perform better than the world average of Further analysis of the lost time incidents is presented in Section 3.3, where 5-year rolling averages of LTIF are presented for each of the regions. 13

20 International Association of Oil & Gas Producers 3.3 FAR and LTIF 5-year rolling averages Africa FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) Asia/Australasia FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) Europe FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) In order to smooth out variability in the annual values of the regional FAR and LTIF, 5-year rolling averages are computed which should provide a more reliable indicator of performance trends. Each figure shows FAR and LTIF 5-year rolling averages for one of the seven regions, and includes the all regions average curves. FAR 5-year rolling average The best performing region in 2004 is Asia/Australasia, with a 5-year rolling average value of FAR of 2.9, which is considerably lower than the average for all regions of 5.5. The worst performing region is Africa, with a FAR of 8.6, although steady improvement can be seen over the 10-year period for the region. The largest reduction in FAR during the 10-year period shown has occurred in the South American region, where the 2004 value (4.7) is just 29% of the 1995 value (16.4). LTIF 5-year rolling average Steady improvement in the LTIF in all regions is evident, with the 2003 values representing the lowest values on record. Asia/Australasia reported the best LTIF performance, achieving a 5-year rolling average LTIF of 0.6. The worst performing region is South America with an LTIF of 2.5. South America has been the worst performing region since 1995, although steady improvement can be seen over the 10-year period for the region and the 2004 value (2.5) is 64% lower than the 1995 value (6.8). The North American region has realised the greatest improvement in LTIF over the period shown, with the 2004 value (1.4) being just 32% of the 1995 value (4.4). 14

21 Safety performance of the global E&P industry 2004 data FSU FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) North America FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) Middle East FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) South America FAR and LTIF 5-year rolling average (FAR per 100 million hours worked, LTIF per million hours worked) 15

22 International Association of Oil & Gas Producers 3.4 Severity of lost workday cases Severity Average days lost per LWDC Overall (12% better) Africa (21% better) Asia/Australasia (18% worse) Europe (3% worse) FSU (27% better) Middle East (20% worse) North America (19% better) South America (3% better) The percent. in parentheses is relative to average results The figure shows the average number of days lost per LWDC for each of the 7 regions. Also shown is the average number of days lost for the preceding 5-year period for each region. The severity of LWDC remains high in the North American region with nearly 42 days lost per LWDC in 2004 compared to an average of days lost per LWDC for the previous 5-year period. No clear trend is evident in the changes in severity between the 2004 values and the preceding 5 years. 16

23 Safety performance of the global E&P industry 2004 data 3.5 Total recordable incident rate (TRIR) Overall 3.94 (16% better) Africa 5.08 (89% worse) Asia/Australasia 2.15 (12% better) Europe 5.64 (31% better) FSU 2.39 (15% worse) Middle East 2.31 (45% better) North America 5.82 (28% better) South America 4.87 (21% better) The percent. in parentheses is relative to average results The figure shows the TRIR for the 7 regions, compared to the average for the preceding 5-year period for each of the regions. Total recordable incident rate per million hours worked In all regions, apart from the FSU and Africa, the 2004 TRIR has fallen compared to the previous 5-year regional average value. The largest reduction is associated with operations in the Middle East where the 2004 value (2.31) is just 55% of the Middle East average value for the preceding 5-year period. The African TRIR for 2004 is nearly twice the average for the preceding 5-year period for that region. 3.6 Individual country performance The safety performance of individual countries is presented in terms of the lost time injury frequency of companies jointly with contractors. To preserve the anonymity of companies, performance is only published for those countries for which at least 2 companies have reported statistics. Countries with less than 50,000 reported hours worked are excluded, since results for such small populations of hours would be unrepresentative. Of the 78 countries from which data have been reported, 18 are excluded by these constraints. The chart of relative performance for the remaining 60 countries compares the 2004 performance with that in 2003 and Bangladesh, Vietnam, Singapore, Albania and Brazil reported zero lost time incidents in However, the latter three reported relatively few work hours (205,000, 305,000 and 1804,000 respectively). The large majority of countries in the FSU, Africa and Asia/Australasia perform at least as well as the global average (1.09). The majority of countries in the European region perform worse than the global average. For comparison, the 5-year average FAR is shown for each of the regions. There appears to be little if any correlation between these values and the regional average LTIF values. 17

24 International Association of Oil & Gas Producers Lost time injury frequency - companies with contractors per million hours worked 18

25 4 Results by function Safety performance of the global E&P industry 2004 data In this section the safety performance within different functions performed in the E&P industry is presented. Functions are defi ned as exploration, drilling, production, and other, the last being the category for activities other than in the fi rst three. The overall results quoted take account also of data provided by contributing companies which were not allocated to one of these four, i.e. the unspecifi ed category. 4.1 Fatalities Fatal Fatalities Fatal Fatalities incidents incidents Exploration Drilling Production Other Unspecified The distribution of company and contractor fatal incidents and fatalities between the functions are shown in the table for both 2004 and A substantial increase is noted in the number of fatalities reported as unspecified for 2004 compared to In order to compare the rate at which fatalities occur for each of the different functions, ideally the number of fatalities should be normalised by the associated number of workhours. Unfortunately, many operations around the world have reported workhours as unspecified even though they relate a particular fatality to a specific work function (e.g. an organisation may report a drilling related fatality, however all their workhours are reported as unspecified ). In order to overcome this problem (and for this section only) all the hours reported as unspecified have been reclassified into exploration, drilling, production or other in accordance with the way the remaining hours are distributed within these categories. In addition, any fatality reported as unspecified is excluded from this analysis. The FAR associated with the different functions is compared in the above figure for the period 1998 to Considerable variability can be seen over this period, with no clear evidence that the performance of one function is better or worse than any other. Fatal accident rate per 100 million hours worked Fatal accident rate Exploration Drilling Production Other The number of fatal incidents in each category is derived from the job function of each fatality in each incident. Hence incidents where more than one job function is represented will be listed as an incident associated with each job function. 19

26 International Association of Oil & Gas Producers 4.2 Lost time injury frequency (LTIF) Lost Time Injury Frequency per million hours worked Overall 1.09 (6% better) Exploration 0.61 (49% better) Drilling 1.71 (1% better) Production 1.23 (11% worse) Other 0.77 (20% worse) The percent. in parentheses relates to the 2003 average The figure shows the LTIF associated with each of the different functions. Compared to the 2003 values, improvement can be seen in the LTIF for Exploration while in the Production and Other functions the LTIF has increased. The Drilling category has reported the highest LTIF throughout the period shown, however it has realised the greatest reduction in LTIF of all the functions since 1995, with the 2004 value (1.71) being just 31% of the 1995 value (5.5). It remains unchanged compared to the previous year. 4.3 Severity of lost workday cases Severity average lost days per LWDC The figure shows the average number of days lost per LWDC. The severity of drilling related injuries has decreased, showing a 31% reduction compared to the average (39.4). 20

27 Safety performance of the global E&P industry 2004 data 4.4 Total recordable incident rate (TRIR) Overall 3.90 (16% better) Exploration 3.55 (13% better) Drilling 6.04 (25% better) Production 4.94 (5% worse) Other 2.50 (16% better) The percent. in parentheses relates to the average The figure shows the TRIR associated with each of the functions. The highest reported TRIR was associated with drilling related activities. Overall the TRIR has improved by 16% compared to the average of the preceding 5-year period (4.7). Total recordable incident rate per million hours worked 21

28 International Association of Oil & Gas Producers 4.5 Exploration performance Lost time injury frequency The figures show the LTIF performance of companies and contractors for exploration related activities, in different regions of the world. The 2004 performance is compared to performance in the previous 5-year period. In 2004 the average LTIF values for companies and contractors engaged in exploration activities of 0.28 and 0.71 respectively; the global average LTIF is The company result is down by 46% compared to the average (0.52) while the contractor result has improved by 29% compared to the average (1.00). There has been a marked improvement in contractor LTIF performance associated with exploration activities in Europe as well as in the North and South American regions. NOTE: In many instances where the LTIF or TRIR is reported as 0.00, the number of workhours reported for the specifi c function and region are relatively low. A detailed breakdown of the hours by region and function is presented in Appendix B. Lost time injury frequency - exploration per million hours worked Exploration Geophysical, seismographic and geological operations, including their administrative and engineering aspects, construction, maintenance, materials supply, and transportation of personnel and equipment; excludes drilling. 22

29 Safety performance of the global E&P industry 2004 data Total recordable incident rate The figures show the TRIR performance of companies and contractors for exploration related activities, in different regions of the world. Notable improvements are seen in the TRIR performance of contractors in North America while in South America and the FSU the TRIR is worse. Total recordable incident rate - exploration per million hours worked 23

30 International Association of Oil & Gas Producers 4.6 Drilling performance Lost time injury frequency The figures show the LTIF performance of companies and contractors for drilling related activities in different regions of the world. Improvement can be seen in all regions for contractors and in Africa and the Middle East for companies. The LTIF has increased however for companies operating in Europe and South America. Lost time injury frequency - drilling per million hours worked Drilling All exploration, appraisal and production drilling and workover as well as their administrative, engineering, construction, materials supply and transportation aspects. It includes site preparation, rigging up and down and restoration of the drilling site upon work completion. Drilling includes ALL exploration, appraisal and production drilling. 24

31 Safety performance of the global E&P industry 2004 data Total recordable incident rate The figures show the TRIR performance of companies and contractors for drilling related activities in different regions of the world. Improvement can be seen in contractor TRIR results in all regions apart from Africa when compared with the average. Total recordable incident rate - drilling per million hours worked 25

32 International Association of Oil & Gas Producers 4.7 Production performance Lost time injury frequency The figures show the LTIF performance of companies and contractors for production related activities in different regions of the world. The 2004 LTIF associated with companies working in the African, European and South American regions represent a substantial improvement compared to the previous 5-year period while the LTIF for companies operating in the FSU region has worsened. Lost time injury frequency - production per million hours worked Production Petroleum and natural gas producing operations, including their administrative and engineering aspects, minor construction, repairs, maintenance and servicing, materials supply, and transportation of personnel and equipment. It covers all mainstream production operations including wireline. It does not cover production drilling and workover. 26

33 Safety performance of the global E&P industry 2004 data Total recordable incident rate The figures show the TRIR performance of companies and contractors for production related activities in different regions of the world. When compared to the average for the previous 5-year period, improvement is shown in Asia/Australasia, Europe and North and South America for both company and contractor operations. The TRIR associated with company related drilling activities in Africa is extremely high. This is due to a large number of medical treatment cases in the region. Total recordable incident rate - production per million hours worked 27

34 International Association of Oil & Gas Producers 4.8 Other performance Lost time injury frequency The figures show the LTIF performance of companies and contractors for other activities, for different regions of the world. Compared to the average of the previous 5-year period, with the exception of FSU and South America, the performance of both companies and contractors, in particular those operating in the Middle East and North America, has improved. Lost time injury frequency - other per million hours worked Other (as a category of work) Major construction and fabrication activities and disassembly, removal and disposal (decommissioning) at the end of the life of a facility. Includes factory construction of process plant, offshore installation, hookup and commissioning, and removal of redundant facilities. Also includes personnel and incidents that cannot naturally be assigned to exploration, drilling or production. 28

35 Safety performance of the global E&P industry 2004 data Total recordable incident rate The figures show the TRIR performance of companies and contractors during the performance of other activities, for different regions of the world. Compared to the previous 5-year averages, substantial improvements have been reported in the performance of both companies and contractors in North America and the Middle East. Total recordable incident rate - other per million hours worked 29

36 International Association of Oil & Gas Producers 30

37 5 Results by company Safety performance of the global E&P industry 2004 data This section compares the safety performance of individual companies with each other and with their performance in previous years. The comparison is made in terms of the LTIF, which is believed to be the most representative indicator for inter-company benchmarking. Where non-operator companies have provided joint venture information, the information is excluded from the analysis to derive the company result. 5.1 Overall company results For reasons of anonymity each of the 37 companies that has contributed relevant data and is to be included in this analysis has been allocated a unique code letter (A to HH). The figure shows, in rank order, the LTIF for companies together with their contractors. 34 companies (A to HH) contributed company and contractor data, although not always for every country in which operations were conducted. The LTIF for the company alone is plotted alongside the LTIF for company and contractors jointly. The incidence of a fatality in either company or contractor operations is also indicated. Details of results are tabulated in Appendix B. The best result is achieved by company HH, with a LTIF of 0.23 for company with contractors. 18 companies performance was better than the weighted average (1.09) and 16 companies performance was worse. The worst performing company, company A, has a LTIF of 5.04, more than 4 times the 2004 industry average. 21 of the 34 companies presented below suffered one or more fatalities. In 2 instances, contractors outperformed the companies they were employed by. Performance ranking of companies jointly with contractors - lost time injury frequency per million hours worked 31

38 International Association of Oil & Gas Producers In the figure below, the data are reorganised to show companies ranked according to LTIF performance for company personnel alone, omitting contractor input. Those companies that only submitted data for company activities, II and JJ, are now included. 9 companies, EE, BB, CC, S, P, Q, A, M and V, had no lost time incidents among company employees (LTIF zero). However, all these companies reported relatively few workhours, hence the results are unlikely to be a reliable indicator of their longer term performance. The worst performing company, company B, achieved a LTIF of 4.26, almost 5 times greater than the 2004 company average and nearly 50% greater than that of the next poorest performing company. 26 companies performed better than the 2004 company only average and 10 companies performed worse. Performance ranking of companies alone - lost time injury frequency per million hours worked 32

39 Safety performance of the global E&P industry 2004 data In the figure below the LTIF is presented for those companies which, with their contractors, reported more than 10 million hours worked. 25 companies met this criteria. Companies are shown in rank order of the company-with-contractor LTIF performance. 14 of the 25 companies with their contractors performed better than the global average for companies with contractors. The best performing company is HH and the worst is C. The range in 2004 was between 0.23 and 3.64 lost time injuries per million hours worked. 19 of the 25 companies suffered one or more fatalities. Performance ranking of companies jointly with contractors, joint hours>10 million - lost time injury frequency per million hours worked 33

40 International Association of Oil & Gas Producers The table below shows the trends in company-withcontractor performance. The 34 companies reporting joint performance are listed together with the LTIF for For each company where data are available the chart shows whether performance in the reference year had improved or worsened relative to the previous year. Only company Y achieved improvement year by year over the previous 5-year period and companies U and FF have improved year by year over the past 4 years. Company G, has shown consistent improvement over the past 3 years. No company s performance deteriorated year by year over the period Company code Company & LTIF Performance relative to previous year contractor LTIF A 5.04 better worse better B 4.26 C 3.64 D 3.29 worse better better better better E 2.90 worse worse better better better F 2.87 better worse worse worse better G 2.36 better better better worse better H 1.77 better worse better worse worse I 1.75 better worse better better worse J 1.69 better better worse better K 1.53 L 1.38 worse better worse better M 1.33 worse N 1.32 worse better better worse worse O 1.30 better worse better worse worse P 1.30 worse better better better worse Q 1.03 worse better better better better R 1.01 better worse better better S 1.01 worse better worse better worse T 0.97 same better U 0.96 better better better better V 0.93 better worse better better W 0.80 worse better better better worse X 0.77 worse better worse worse better Y 0.77 better better better better better Z 0.70 better worse better better better AA 0.66 worse better better better worse BB 0.64 worse worse better CC 0.55 worse worse DD 0.54 same better better EE 0.40 better worse better FF 0.33 better better better better GG 0.32 better better worse HH 0.23 better worse better better 34

41 Safety performance of the global E&P industry 2004 data The chart shows the achievements of the two companies that showed the greatest year-by-year improvements from , companies U and FF. Also shown is the overall performance of all companies. Company U achieved a 78% reduction in LTIF since From an LTIF around 2.5 times the average in 2000, in 2004 it performed at 12% below the overall average. Company FF has achieved a reduction in its LTIF since 2000 of 77%. In 2000 its LTIF stood at 24% below the average while today it has reduced to 70% below the average for Exemplary improvements in LTIF per million hours worked by companies with contractors 35

42 International Association of Oil & Gas Producers 5.2 Company results by function Results of companies together with their contractors have been analysed by function to allow more in-depth benchmarking between companies. The LTIF indicator has been selected, and the ranked results are shown in the following charts. Only companies who provided data by function are included, and then only those companies who had more than 100,000 hours worked. Results against smaller numbers of hours would not have any statistical significance. The company code letters are the same as used elsewhere in this chapter. For those companies that submitted data in both 2004 and 2003, details of whether the performance in 2004 was better or worse than in 2003 is shown on the graph. Lost time injury frequency - Exploration per million hours worked by company with contractors Lost time injury frequency - Production per million hours worked by company with contractors Lost time injury frequency - Drilling per million hours worked by company with contractors Lost time injury frequency - Other per million hours worked by company with contractors 36

43 Safety performance of the global E&P industry 2004 data 6 Significant incidents 6.1 Signifi cant incidents by category Significant incidents by category Appendix D gives details of the significant incidents reported for Significant incidents are intended to be incidents that have the potential to result in a fatality or serious injury. Summary of 2004 dignificant incidents 22 of the 37 companies submitted significant incident reports in The total number of reports is 62. A large number of the reports relate to offshore activity. Care needs to be taken in drawing conclusions from the data as, for example, vehicle incidents are likely to be under represented. The pie-charts compare the significant incidents reported in 2004, with those reported in the preceding 5-year period. In common with previous years, large numbers of significant incidents are reported in the struck by and explosion/burn categories. In future years, further consideration will be given to how significant incidents are reported and categorised so as to improve the industry s ability to learn from this important source of data. 37

44 International Association of Oil & Gas Producers 7 Conclusions The safety performance of the global E&P industry in 2004 has been presented. It is based on the analysis of 2290 million workhours of data, submitted by 37 companies, from operations in 78 countries. This represents the largest database used in the analysis of the industry s safety performance. Vehicle related incidents, and individuals being struck by falling or moving objects accounts for in excess of 40% of the reported fatalities. Both are areas where further effort is required to identify improved risk management measures. There has been a slight deterioration in FAR in 2004 compared to the 2003 values. Over the 4-year period , there has been little change in FAR, however the long term trend appears downward. The 2004 (overall) LTIF has reduced compared to he 2003 value, once again reaching its lowest value on record (1.09). Work is underway to improve the quality and value of both the fatality and significant incident data. 38

45 Safety performance of the global E&P industry 2004 data Appendix A Database dimensions Hours worked millions The database for the year 2004 covers 2290,453,000 hours worked in the exploration and production sector of the oil and gas industry. The database is 2% larger than it was in % of the hours reported were associated with onshore contractor activities, 4% with offshore company activities. 78 countries are represented in the database, 4 more than in Countries are listed in appendix H. 37 companies contributed data. All but 2 contributed contractor statistics, though not in every case for each country of operation. Of the 37 companies, 34 had contributed data in Since these 34 accounted for 92 % of the database in 2004, comparison of the year 2004 results with those of 2003 is legitimate and statistically meaningful. 33 of the companies submitting 2004 data had also provided data in of the companies contributed 73% of the hours. 5 companies between them covered nearly 50% of the hours, and the largest contributor accounted for 17%. Hours worked - by company percent. Hours reported ( 000s) Onshore Offshore Company 537,518 (23%) 101,221 (4%) Contractor 1,221,742 (53%) 429,972 (19%) The following pie-charts show how the hours are distributed between reporting regions and work function. 39

46 International Association of Oil & Gas Producers Hours worked - by region Hours worked - by function 40

47 Safety performance of the global E&P industry 2004 data Proportion of database used in analysis For calculations of FAR, FIR and LTIF: All hours in the database were used. For calculations of TRIR: Submissions without information on medical treatment cases were fi ltered out, leaving a database of 1847 million hours, 81% of the total database. In 2003, the TRIR database was 1802 million hours, 80% of the total database. In North America and Europe 100% of the database was used but in the FSU and South American regions only 47% and 53% were included respectively. For calculations of lost workday severity: Submissions without information on days off work were fi ltered out, leaving a database of 1455 million hours, 64% of the total database. In 2003, this database was 1451 million hours, 65% of the total database. North America and Europe have only 32% and 36% severity information respectively, whereas 85% of the South American database was useable. For calculations of RWDC + LTI frequency: Submissions without information on restricted workdays were fi ltered out, leaving a database of 1610 million hours, 70% of the total database. In 2003, this database was 1447 million hours, 64% of the total database. Just 32% of the South American database contains RWDC information. 84% of the European database was included and 82% of the Middle East. For calculations of restricted workday severity: Submissions without information on days assigned to restricted activities were fi ltered out, leaving a database of 830 million hours, 36% of the total database. In 2003 this database was 822 million hours, 37 % of the total database. More detailed information is shown in the table below. Percent. of useable data regions Lost workday RWDC+LTI TRIR case severity frequency analyses analyses analyses Africa 87% 61% 87% Asia/Australasia 92% 71% 79% Europe 100% 36% 84% FSU 47% 68% 47% Middle East 92% 73% 82% North America 100% 32% 78% South America 53% 85% 32% Percent. of useable data functions Lost workday RWDC+LTI TRIR case severity frequency analyses analyses analyses Exploration 97% 66% 88% Drilling 88% 69% 76% Production 67% 68% 65% Other 89% 66% 79% 41

48 International Association of Oil & Gas Producers Summary of data Hours No. No. No. No. worked fatalities LWDCs RWDCs MTCs Region Type ( 000s) FAR LTIF TRIR Africa Company Onshore Company Offshore Contractor Onshore Contractor Offshore Sub Total Asia/ Company Onshore Australasia Company Offshore Contractor Onshore Contractor Offshore Sub Total Europe Company Onshore Company Offshore Contractor Onshore Contractor Offshore Sub Total FSU Company Onshore Company Offshore Contractor Onshore Contractor Offshore Sub Total Middle Company Onshore East Company Offshore Contractor Onshore Contractor Offshore Sub Total North Company Onshore America Company Offshore Contractor Onshore Contractor Offshore Sub Total South Company Onshore America Company Offshore Contractor Onshore Contractor Offshore Sub Total Total Company Onshore Company Offshore Contractor Onshore Contractor Offshore Grand Total