Lloyd’s Register services to the energy industryGoM Accident and its impact onPre-Salt developmentDaniel (Danny) WalkerVP ...
Lloyd’s Register services to the energy industryTerms of reference – MONTARA INCIDENT                                     ...
Lloyd’s Register services to the energy industryTerms of reference – DEEPWATER HORIZON                                    ...
Lloyd’s Register services to the energy industryImplications for developing Pre-Salt Reserves                             ...
Lloyd’s Register services to the energy industryWELL INTEGRITY = PRESSURE CONTAINMENT =BARRIERS                           ...
Lloyd’s Register services to the energy industry30 CFR Part 250 – Immediate mandatory changes tothe Prescriptive requireme...
Lloyd’s Register services to the energy industry The safeguards address well bore integrity and well control equipment1. E...
Lloyd’s Register services to the energy industryImplications for developing Pre-Salt Reserves                             ...
Lloyd’s Register services to the energy industryImplications for developing Pre-Salt Reserves                          •  ...
Lloyd’s Register services to the energy industryThe safe operation of a facility is the responsibility of the facilityoper...
Lloyd’s Register services to the energy industryObjective/Performance based (or goal setting) regimes, (including the UK s...
Lloyd’s Register services to the energy industry For more information please visit: www.lrenergy.orgDanny WalkerVP Complia...
Upcoming SlideShare
Loading in …5
×

Gulf of Mexico Accident and its impact on Pre-Salt development

990 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Gulf of Mexico Accident and its impact on Pre-Salt development

  1. 1. Lloyd’s Register services to the energy industryGoM Accident and its impact onPre-Salt developmentDaniel (Danny) WalkerVP Compliance ServicesLloyd’s Register North America Inc.26th October 2010
  2. 2. Lloyd’s Register services to the energy industryTerms of reference – MONTARA INCIDENT Uncontrolled release of Hydrocarbons from the Montara unmanned Wellhead Platform – Ashmore Cartier region (Timor Sea) 690 miles West of Darwin – August 2009 www.nopsa.gov.au Initial Investigation findings: Root Cause Analysis •Systematic Failure of MANAGEMENT SYSTEMS •Non-Compliance with Operational process’ and procedures
  3. 3. Lloyd’s Register services to the energy industryTerms of reference – DEEPWATER HORIZON Explosion and Fire on MODU “Deepwater Horizon” – 60 miles Offshore Louisiana – April 2010 www.boemre.gov Initial Investigation findings: POSSIBLE Root Causes •Equipment Design/Maintenance •Operational safety culture •Procedures and Process training (Competence)
  4. 4. Lloyd’s Register services to the energy industryImplications for developing Pre-Salt Reserves • Operators  Media spotlight  Loss of reputation and Community trust  Insurance and liability (unlimited liability)  Cost increases  Long term viability for smaller companies  Minimum standards vs best practice
  5. 5. Lloyd’s Register services to the energy industryWELL INTEGRITY = PRESSURE CONTAINMENT =BARRIERS 30 CFR PART 250 (OCTOBER 14 2010)
  6. 6. Lloyd’s Register services to the energy industry30 CFR Part 250 – Immediate mandatory changes tothe Prescriptive requirements in the GoM The Primary purpose of this interim final rule is to clarify and incorporate safeguards that will decrease the likelihood of a blowout during drilling operations on the Ouetr Continental Shelf (OCS) The interim final rule implements certain safety measures recommended in the report entitled “Increased Safety Measures for Energy Development on the OCS” dated May 27 2010. The Rule becomes effective October 14 2010 Additionally, please refer to the following BOEMRE Factsheets: The Workplace Safety Rule on Safety and Environmental Management Systems (SEMS) The Drilling Safety Rule
  7. 7. Lloyd’s Register services to the energy industry The safeguards address well bore integrity and well control equipment1. Establish new casing installation requirements2. Establish new cementing requirements (Incorporate API RP 65 – Part 2, Isolating Potential Flow Zones During Well Construction)3. Require independent third party verification of blind-shear ram capability4. Require independent third party verification of subsea BOP stack capability5. Require new casing and cementing integrity tests6. Establish new requirements for subsea secondary BOP intervention7. Require function testing for subsea secondary BOP intervention8. Require documentation for BOP inspections and maintenance9. Require a Registered Professional Engineer to certify casing and cementing requirements, and10. Establish new requirements for specific well control training to include deepwater operations
  8. 8. Lloyd’s Register services to the energy industryImplications for developing Pre-Salt Reserves • REGULATORS  Independence of safety regulator  Prescriptive or Performance based regulatory environment (or a combination of both)  International Regulation (IMO)  Competence
  9. 9. Lloyd’s Register services to the energy industryImplications for developing Pre-Salt Reserves • Materials Management Service (MMS) Reorganization• Bureau of Ocean Energy Management: A new bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for the sustainable development of OCS conventional and renewable energy resources, including resource evaluation, planning, and other activities related to leasing.• Bureau of Safety and Environmental Enforcement: A bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for ensuring comprehensive oversight, safety, and environmental protection in all offshore energy activities.• Office of Natural Resources Revenue: An office under the supervision of the Assistant Secretary for Policy, Management and Budget that will be responsible for the royalty and revenue management function including the collection and distribution of revenue, auditing and compliance, and asset management.
  10. 10. Lloyd’s Register services to the energy industryThe safe operation of a facility is the responsibility of the facilityoperatorThe primary responsibility for ensuring health and safety lieswith those who create risks and those who work with them1. What is the role of the regulator in all of this2. Use the identification and mitigation of Risk AS a minimum standard3. Meeting Regulatory requirements is NOT a minimum standard4. Compliance with prescriptive regulation is ONLY a compliance issue5. To what extent are regulations responsible for setting the threshold for safety6. Are you doing enough to ensure safety7. Are you doing what you have indicated you would do8. What level of enforcement is required9. Is there a minimum threshold required for operator competence
  11. 11. Lloyd’s Register services to the energy industryObjective/Performance based (or goal setting) regimes, (including the UK safety case regime), are based onthe principle that the legislation sets the broad safety goals to be attained and the operator of the facilitydevelops the most appropriate methods of achieving those goals. A basic assumption is the premise that theongoing management of safety is the responsibility of the operator and not the regulator.Any goal setting is not just minimum requirement, it is the basisof a mature & continuously improving safety culture wihin anorganization. Accidents and Dangerous Occurences 2008 - 2009 Root Causes Deck and Drilling Lifting MajorInjuries 2007-2009 (UK Offshore Sector) Preventitive maintenance Other Procedures Not Followed Supervision Planning Design Specifications Design Review Incorrect Procedures Risk Assessment Hazard Awareness UK Offshore (HSE figures) Australia Offshore (NOPSA Figures)
  12. 12. Lloyd’s Register services to the energy industry For more information please visit: www.lrenergy.orgDanny WalkerVP Compliance ServicesLRNA IncDanny.Walker@lr.org+1 281 675 3119

×