HSE Risk and Asset Integrity Management for Oil & Gas Assets

Independent Verification of Safety Critical Elements (SCE)

Algeria, November 2016

Raja Bou Fakher Aldeen

Contenu de la présentation

General Services pour la conformité au DE 14-349 Valeur ajoutée

Introduction AIM HSE &Risk Verification Drilling NPT

O&G Market RBI Safety Verification Prevention of
Overview of Safety Non-Productive
FFS Environnement
Critical Time (NPT) -
NII OH Elements The Proven TH
Hill Way
PIMS
CRA
ANDT
Others  Background & Legislation
 The Five Step Process of Verification
 Outcomes of Verification

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 2
Background and Legislation
Piper Alpha Explosion and Fire

►North Sea

►6 July 1988

►Fixed production platform

►Explosion and fire

167 were killed
►167 fatalities The Cullen Inquiry Only 61 survived
►$1,270 million*

* adjusted to Jan 2002 value

(property damage, debris removal +
clean-up cost) (Loss from business
interruption, extra expense, employee
injuries and liability claims excluded)

Piper Alpha Disaster

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 4
Disasters and Recurring Trends

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 5
What have changed?

Certification Verification

Prescriptive requirements Goal setting risk based approach

Review against Code / Standard /

Confirm compliance with Performance Standard
Specification / Directive

Consideration given to items which are not

Only concerned with Safety Critical items
Safety Critical

Documents / drawings used as reference only.

Documents / drawings may be approved Applicable sections of relevant documents will be
as part of process considered during the course of review.
BV will not approve documents and drawings.

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 6
The Intent?

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 7
The Five Step Process of Verification
The Five Step Process of Verification Summarised

Define Develop
Identify Identify Execute
Performance Verification
MAHs SCEs Verification
Standards Scheme

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Step One: Identify and Understand Major Accident
Hazards
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

HAZARD
Threat 1 Consequence 1
P E A R
3 1 2 1 HAZARD

TOP
Threat 2 Consequence 2
EVENT
P E A R
3 1 2 1
TOP
EVENT
What if it Escalation Identify What are the
Hazards and
happens their
?
How to Factor Effects?
recover?

Recover
HEMP
Is there a
How to
prevent it?
better Control Assess What could
happen?
way?

HAZARD HAZARD
Threat 1 Consequence 1 Consequence 1
P E A R P E A R
3 1 2 1 3 1 2 1

TOP TOP
Threat 2 Consequence 2 Consequence 2
EVENT EVENT
P E A R P E A R
3 1 2 1 3 1 2 1

HSE
Risk
Escalation Critical
Reduction How
Equipment How likely serious
Factor Measures? is it?
& System will be?

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 Step One: Identify and Understand Major Accident
Hazards – Bow-tie
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Identification Tool – Bow-tie Analysis

PREVENTATIVE CONTROL
MEASURES MEASURES

HAZARD

CONSEQUENCES
CAUSES

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Step Two: Identify Safety Critical Elements (SCEs)
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

► What is Safety Critical Element?

Parts (Structures, Equipment and/or Systems) of an Installation: -

• The failure of which could cause or contribute substantially to a MAH;
• Or a purpose of which is to prevent, or limit the effect of a MAH

► Examples of SCE:

• Containment, Ignition Control, Structure

• F&G Detection, ESD System, EDP (BLWD & Flare), Emergency Power, Active
FF / Passive FP
• Temporary Refuge, Evacuation Systems, Alarm Management, Rescue System
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Step Two: Identify Safety Critical Elements (SCEs) –
The Barrier Model
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Known as the Swiss Cheese Model

PREVENTION
CONTROL
MITIGATION
EVACUATION

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Step Two: Identify Safety Critical Elements (SCEs) –
The Barrier Model - Quiz
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Structural integrity Hydrocarbon containment Alarm/PA system ESD system

F&G detection/control Emergency lights Firewater pumps Deluge System

EVACUATION MITIGATION CONTROL PREVENTION

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Step Two: Identify Safety Critical Elements (SCEs) –
Criticality Ranking
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Overall SCE Ranking Criticality Rating

(R x C x RE x CO)
Greater than 15 1
Greater than 5 ,less than 15 2
Less than 5 3
Role – R Consequence - C
Role Of SCE Coefficient Consequence Criteria Coefficient
Protection Systems 3 Minor Failure would not solely cause loss of life. 1
Ignition Control 3
Moderate Failure could lead to significant loss of life. 2
Process Containment 3
Major Failure would most probably lead to loss of life. 3
Structural Integrity 3
Detection Systems 2
Redundancy - RE Confidence - CO
Shutdown Systems 2
Redundancy Coefficient Rolling 24 Month Confidence Coefficient
Emergency 1
Response Yes 1 Criteria TBC 1

Life Saving 1 No 2 Criteria TBC 2

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Step Three: Define Performance Standards
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

► What is a Performance Standard?

• A set of expectations/criteria that the SCE shall have in order to perform the
intended function
• Set of criteria on which the suitability of a SCE is assessed
• As per UK PFEER “Statements which can be expressed in qualitative or
quantitative terms, of the performance required of a system, item of equipment,
person or procedure, used as the basis for managing a hazard (e.g. planning,
measuring, control or audit) throughout the life cycle of the installation.”

► Performance Standard shall be:

• Specific: Refer to specific parts of SCE; not a high-level statement
• Measurable: Require measurements of SCE capability
• Auditable: Evidence on the extent to which the standard is achieved
• Relevant: Relate to capability of SCE to deliver its function
• Testable: Define an acceptance criteria

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Step Three: Define Performance Standards
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

What is the SCE required to do? (in relation to

Functionality managing the major accidents)

For what proportion of time is it required to be

Availability available and capable of performing its functions?

What is the minimum allowable failure rate of the

Reliability SCE?, How likely is it to perform on demand

What major accident hazard effects must the SCE be

Survivability able to survive and still perform its function(s)?,
Does it have a role to perform post event?

Interaction Which other SCEs are required to work for the SCE
to meet its Performance Standard?

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Step Three: Define Performance Standards - Sample
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Key Requirements

Goal References
Description FARSI
Criticality Assurance

Linked to MAH
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Step Three: Define Performance Standards - Sample
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

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Step Three: Define Performance Standards - Sample
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 20
Step Three: Define Performance Standards - Sample
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 21
Step Three: Define Performance Standards - Sample
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

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Step Four: Develop Verification Scheme
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

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Step Four: Develop Verification Scheme
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

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Step Five: Execute Verification
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Duty Holder / Operator Independent Verifier / ICP

Demonstration of compliance with Performance Verify compliance with Performance Standards via
Standards. desktop and site audits / examination.

Appointment of Independent Verification Body. Reporting of compliance and/or non-compliance.

► Execution of Verification Scheme

A team if Independent Competent Persons (ICPs) will:
• Review and confirm SCE identification is suitable
• Verify PS have been developed and are suitable
• Verify SCE Management System and Personnel competency
• Verify SCE are and remain suitable in line with the requirement of PS
• Implementation of Verification Scheme and Written Schemes of Examination

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Step Five: Execute Verification
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

DUTY HOLDER / OPERATOR

Identify Major VERIFICATION
Accident Hazards
INTERFACE ICP / VERIFIER
Comment on
Identify SECEs / HSECESs
Record

Develop Performance
Standards
Develop Verification Completed by or in
Scheme Consultation with
Develop Assurance
Process

Carry Out Witness Tests /

Assurance Process Review Records

Act upon Findings Report Findings

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Step Five: Execute Verification
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

Assurance Desktop review

activity review cycle

Tailored site Assurance Lessons learned Tailored site

verification completion / best practice verification
activities review approach activities
Desktop Site

Lessons learned Root cause Holistic

/ best practice Root cause
identification identification approach
approach

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Outcomes of Verification
Outcomes of Verification - Reporting

Standardised Full Guidance and Continual Monitoring

Reporting Templates Training on Reporting of Reporting

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Outcomes of Verification - Dashboard

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Outcomes of Verification – Verification Sheets

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Outcomes of Verification – Verification Sheets

HSE Risk and Asset Integrity Management for Oil & Gas Assets – Algiers November 28, 2016 32
Outcomes of Verification – Example

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Outcomes of Verification – Example

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Outcomes of Verification – Example

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Bureau Veritas: Verification +
Define Develop
Execute
Identify MAHs Identify SCEs Performance Verification
Verification
Standards Scheme

BV – ICP 1

Report to ARH / SONATRACH

ARH / SONATRACH

BV – ICP 2

Report to Duty Holder / JV

BV Consult

Works with Duty Holder / JV

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