Gavin Guyan Manager - Well Integrity NOPSEMA. DrillSafe 1 March 2012

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1 Gavin Guyan Manager - Well Integrity NOPSEMA DrillSafe 1 March 2012

2 Scope NOPSEMA & Legislation 2012 Wells focus Industry Performance 2011 MODU focus

3 National Regulator Amendments 1 Jan 2012 NOPSA s functions expanded to include environment protection and general administration and is continued in existence as the National Offshore Petroleum Safety and Environmental Authority (NOPSEMA) Creation of National Offshore Petroleum Titles Administrator (NOPTA) to replace the Designated Authorities in Commonwealth waters NOPTA is a branch within RET, administer titles and petroleum data and advise the JA

4 Significant incident directions The OPGGS Amendment (Significant Incident Directions) Bill 2011 has just been passed by Parliament Enables NOPSEMA to direct a titleholder, in the event of a significant offshore petroleum incident that has caused or might cause an escape of petroleum, to: take action (prevent, eliminate, mitigate, manage or remediate) or not to take an action, and may be unconditional or subject to conditions The direction may apply either within or outside the titleholder s title area

5 NOPSEMA Coverage Operations Offshore petroleum operations Offshore greenhouse gas storage operations Scope Occupational health and safety Structural integrity of facilities and wells Environmental management of petroleum activities - Petroleum Safety Zones

6 Legislation administered by NOPSEMA Schedule 3 to Cth OPGGSA OPGGS (Safety) Regulations 2009 Part 5 of the OPGGS (Resource Management and Administration) Regulations 2011 [Wells regulations] OPGGS (Environment) Regulations 2009 Commonwealth Offshore Petroleum and Greenhouse Gas Storage Act 2006 [OPGGSA] Schedule 3 OHS law Safety Regulations Wells regulations Environment regulations

7 Environment Regulatory framework (Petroleum) Environment Regulations Unchanged Petroleum activity conducted: consistent with the principles of ecologically sustainable development; and in accordance with an accepted environment plan that has appropriate environmental performance objectives and standards as well as measurement criteria for determining whether the objectives and standards are met.

8 Environment Plan requirements include Description of the Activity, Environment Environmental impacts and risks Environmental performance objectives & standards Implementation strategy Reporting and monitoring arrangements

9 Wells Regulatory framework Part 5 RMAR 2011 Performance-based regime that requires the titleholder to control well integrity hazards or risks where integrity means: under control in accordance with an accepted WOMP able to contain reservoir fluids subject only to risks that have been reduced to a level that is as low as reasonably practicable Risks managed in accordance with sound engineering principles, standards, specifications and good oil field practice

10 Key wells regulatory changes 29 April 2011 NOPSEMA replaced the Designated Authority as the regulator for wells NOPSEMA decides: WOMP acceptance/rejection individual well activities approval / rejection Integrity definition includes that the well is subject only to risks have been reduced to a level that is as low as reasonably practicable Part 5 (RMAR) is a listed OHS law => NOPSEMA powers apply

11 WOMP Regulations Safety Case for Wells Be appropriate Explain philosophy and criteria; company policies and processes that are the basis of the design, construction operation and management of the wells Identify risks & controls - demonstrate well integrity risks are reduced to ALARP Include performance standards, objectives & associated measurement criteria Explain how a well integrity hazard or increase in risk will be managed => contingency planning.

12 WOMP - Core Concepts WOMP must: be appropriate to the wells and well activities contemplated be a stand-alone document that is sufficient to meet the contents & level of detail requirements of the regulations without need to refer to other documents external to the WOMP. Only by inclusion of a sufficient level of detail in the WOMP will NOPSEMA be able to make a judgement on the appropriateness of the WOMP in accordance with the regulations

13 Well regulation challenges 30 WOMPs & 146 AAUWAs assessed to date (4 rejections) Relationship between WOMP & AAUWA Content & Level of detail Guidance Intention to develop a WOMP contents guidance document similar to that used for the SC guidance notes has proved problematic. Review of well regs (Part 5 RMAR), with a view to considering revision, is underway.

14 A safe Australian offshore petroleum industry - PERFORMANCE

15 IRF Data 10 Australia Gas Release Rates (per 100 million BOE) Rate Rate IRF Countries Conservative estimate based on stable BOE Injury Rates (ADI+LTI) (per million hours )

16 Injuries 20 TRC Rates per million hours worked ALL Operators ALL MODU Operators 15 Rate

17 Facility Numbers Facility Group Based on Current (2011) data * Platforms 58 FPSOs 14 MODUs 15 Vessels 13 Pipelines 109 TOTAL: 209

18 Incidents by Facility Type 10 8 Incidents per Facility per year By Facility Type Rate FPSO / FSOs Platforms MODUs Vessels Pipelines NB : Incidents includes Accidents and Dangerous Occurrences

19 Severity of Incidents 20 MODU Incident Severity Rates 16 Rate (per million h) 12 8 Significant Incident Rate 4 Major Incident Rate Based on the International Regulators Forum (IRF) severity rating. Major is considered more serious, followed by Significant as less serious.

20 Accidents & Dangerous Occurrences 20 MODU Incident Rates 16 Dangerous Occurrence Rate Rate (per million h) Accident Rate

21 MODU Incidents Number of MODU Incidents reported per year Incident Type Trend Accident - Death or Serious Injury Accident - Incapacitation >3 days LTI Could have caused Death or Serious Injury Could have caused LTI Fire or Explosion Collision marine vessel and facility Uncontrolled HC release >1-300 kg Well kick >50 barrels Unplanned Event - Implement ERP Damage to Safety-critical Equipment Other kind needing Immediate Investigation TOTAL Number of MODU Complaints reported per year Complaints Red = Major Incident Types

22 Incident Root Causes Top three TapRoot Groups for All Incidents Procedures - Not Followed Preventive Maintenance Procedures - Not Followed Procedures - Not Followed Procedures - Not Followed Design Specs Design Specs Preventive Maintenance Mgmt System - SPAC Preventive Maintenance Procedures - Preventive Maintenance Design Specs Not Followed Procedures - Not Followed Design Specs Procedures - Not Followed Design Specs Training Preventive Maintenance Preventive Maintenance Preventive Maintenance

23 25 MODUs Inspected per year

24 Inspection Findings - Recurring Maintenance Management Lifting Equipment Management Lifeboat issues Client Contractor interface management Supervisory Competence Assurance

25 Questions?

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