risk management and assessment for business The Challenge Working with its strategic partner, Mitsui Babcock Technology Limited, Risktec Solutions Limited has been addressing the ongoing initiative by the Health and Safety Executive’s (HSE) Offshore Safety Directorate to reduce the numbers of uncontrolled hydrocarbon leaks from offshore production platforms on the UK Continental Shelf. Hydrocarbon leaks are potential initiating events for fires and explosions and not only pose a major offshore accident hazard, but can affect the environment and significantly disrupt production as well. The main contributors to releases are Small Bore Connections (SBC) and associated piping. Typically there are several thousand SBCs on an offshore production platform and the challenge is to adopt a cost-effective approach to identify root causes and remedies to reduce the likelihood of leaks. The HSE has a target to reduce the occurrence of leaks to 50% of the 1999/2000 numbers by 2004. In the first two years of the campaign, the data to 2001/2002 shows a continued downward trend in the occurrence of “major” and “significant” leaks, which is encouraging. While it is still unclear whether the surge of “minor” releases witnessed two years ago was, as is suspected, because of improved reporting, what is beyond doubt is that sustained effort from the industry will be required if the overall target is to be met. In addition to this ongoing effort, the HSE is now targeting the poorest performing installations to establish what progress is being made. Our Solution Risktec and Mitsui have developed a three phase, risk-based approach to help resolve this problem. The approach has already been applied to eleven installations - ten offshore platforms and one onshore plant - but is applicable to any North Sea fixed production platform. Phase l - Data Collection This phase is undertaken by Mitsui Babcock Technology and focuses on identifying all the SBCs, which is not a trivial task in light of their large num- ber. Data are recorded in a specially developed SBC database, including plant information from drawings, process information from manuals and condition information from previous survey reports. Records are validated by conducting a comprehensive offshore visual survey based on defined criteria. The output from this exercise is a full set of validat- ed physical data for all SBCs on the platform. Phase 2 - Risk Ranking A range of data from the Phase I database, such as unique SBC number, its location and its condition, is then passed to Risktec who apply a bespoke risk model to conduct a risk ranking exercise. This model, named SBC Risk Ranking Model (SRRM), takes account of a broad range of mechanisms that contribute to premature failure, including vibration, fatigue, corrosion, erosion and mechanical fitness for purpose, to provide an estimate of release frequency. Reducing Offshore Hydrocarbon Releases Reported hydrocarbon releases 1997/98-2001/02 0 20 40 60 80 100 120 140 160 97/98 98/99 99/00 00/01 01/02 Major Significant Minor Ref. HSR 2002 002, January 2003 Case Study Case Study Safety and Risk Assessment Business Risk Management Advanced Risk Engineering Training Software
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r i s k m a n a g e m e n t a n d a s s e s s m e n t f o r b u s i n e s s
The ChallengeWorking with its strategic partner, Mitsui BabcockTechnology Limited, Risktec Solutions Limited hasbeen addressing the ongoing initiative by theHealth and Safety Executive’s (HSE) Offshore SafetyDirectorate to reduce the numbers of uncontrolledhydrocarbon leaks from offshore production platformson the UK Continental Shelf.
Hydrocarbon leaks are potential initiating events forfires and explosions and not only pose a major offshore accident hazard, but can affect the environment and significantly disrupt production as well.
The main contributors to releases are Small BoreConnections (SBC) and associated piping.Typically there are several thousand SBCs on anoffshore production platform and the challenge isto adopt a cost-effective approach to identify rootcauses and remedies to reduce the likelihood ofleaks.
The HSE has a target to reduce the occurrence ofleaks to 50% of the 1999/2000 numbers by 2004. Inthe first two years of the campaign, the data to2001/2002 shows a continued downward trend inthe occurrence of “major” and “significant” leaks,which is encouraging.
While it is still unclear whether the surge of “minor”releases witnessed two years ago was, as is suspected, because of improved reporting, what isbeyond doubt is that sustained effort from theindustry will be required if the overall target is to bemet. In addition to this ongoing effort, the HSE isnow targeting the poorest performing installationsto establish what progress is being made.
Our SolutionRisktec and Mitsui have developed a three phase,risk-based approach to help resolve this problem.The approach has already been applied to eleveninstallations - ten offshore platforms and oneonshore plant - but is applicable to any North Seafixed production platform.
Phase l - Data CollectionThis phase is undertaken by Mitsui BabcockTechnology and focuses on identifying all the SBCs,which is not a trivial task in light of their large num-ber. Data are recorded in a specially developedSBC database, including plant information fromdrawings, process information from manuals andcondition information from previous survey reports.Records are validated by conducting a comprehensive offshore visual survey based ondefined criteria.
The output from this exercise is a full set of validat-ed physical data for all SBCs on the platform.
Phase 2 - Risk RankingA range of data from the Phase I database, suchas unique SBC number, its location and its condition, is then passed to Risktec who apply abespoke risk model to conduct a risk ranking exercise. This model, named SBC Risk RankingModel (SRRM), takes account of a broad range ofmechanisms that contribute to premature failure,including vibration, fatigue, corrosion, erosion andmechanical fitness for purpose, to provide an estimate of release frequency.
Reducing Offshore HydrocarbonReleases
Reported hydrocarbon releases 1997/98-2001/02
0
20
40
60
80
100
120
140
160
97/98 98/99 99/00 00/01 01/02
Major
Significant
Minor
Ref. HSR 2002 002, January 2003
Case StudyCase StudySafety and Risk Assessment Business Risk Management Advanced Risk Engineering Training Software
Safety and Risk Assessment Business Risk Management Advanced Risk Engineering Training Software
risk management and assessment for business
In addition, the consequences of failure are con-sidered by taking account of such factors as pres-sure and temperature, proximity to sensitive equip-ment, and manning levels. Critically, the escala-tion potential associated with any release isassessed to provide a numerical severity ranking.
The model uses a risk scoring system to generate arisk score for each SBC in terms of impact on peo-ple, assets and the environment. The scoring sys-tem provides a workable level of resolutionbetween a simple risk matrix approach (moderateeffort, poor level of resolution) and a full blownQuantitative Risk Assessment (QRA) approach(intensive effort, high level of resolution).
The output is a list of SBCs, prioritised in order of risk,together with a detailed report of recommendedactions, including a scope of work for inspectionand modification to high risk locations.
Phase 3 - Vibration/Fatigue Surveys and/or NDTOnce the recommended actions are agreed, thisphase would be undertaken by Mitsui or other spe-cialist organisations. Implementation includes con-ducting vibration/fatigue surveys and/or NDT asrequired, updating the databases and delivering areport with recommended remedial actions. Theseactions would be taken forward by the Operatorwith the intention of reducing the potential forleaks.
The Benefits
This approach is believed to be unique in that itcombines the practical engineering expertise ofMitsui with the specialist risk expertise of Risktec,to provide a single integrated solution. The tech-nique differs from many other solutions, whichoften rely very much on engineering judgmentalone, or are executed solely by risk analysts andlack focus when it comes to engineering detailand interpretation.
What is more, the risk-based approach allowsthe Operator to target resources on those areaswhich present the greatest risk. The output is apackage of tangible improvement options, suchas additional or improved maintenance, inspec-tion and testing, and the adoption of best prac-tice for basic but problematic areas such as themaking of bolted pipe joints.
The phased approach enables the Operator totake a step by step view of the value of theassessment, without committing to significantexpenditure from the outset, while risk rankingallows work to be appropriately prioritised.
Our CompanyRisktec Solutions is an independent and specialist riskmanagement consulting firm. We assist clients in majorhazard industries and commercial sectors to managesafety and business risk.Based in Warrington, Aberdeen and Teesside in the UK,Risktec is part of Nutec Group, a leading provider ofsafety and emergency response training to industriesworldwide.
For further information please contact:Mark Taylor, tel +44 (0)1224 224454
Steve Lewis, tel +44 (0)1925 [email protected]
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