Asset Integrity Steering Group Lunch & Learn 15 May 2015

Agenda 12:00 Registration Lunch will be available after registration 12:15 -12:20 Introduction from AISG co-chairs Alan Chesterman (Apache) / Alan Johnston (Amec Foster Wheeler) 12:20 12:35 A contextual from the Health and Safety Executive Russell Breen (HSE) 12:35 12:55 Improvement and Implementation workgroup update Andy Ewens (Amec Foster Wheeler) / Alan Blacklaw (Nexen) 12:55 13:15Learning and Sharing workgroup update Ian Wright (Petrofac) / Hugh Bennett (Amec Foster Wheeler) 13:15 13:35 MAH Understanding workgroup update Peter Hepburn (Maersk Oil) / Stuart Taylor (Apache) 13:35 13:50Questions 13:50 14:00Closing comments and networking

Co-chairs Alan Johnstone (Amec Foster Wheeler) Alan Chesterman (Apache) Asset Integrity Steering Group

AISG GOALS AND OBJECTIVES Goal Drive down the number of hydrocarbon releases (HCRs) and other process safety threats by improving industry capability and action in the prevention and management of Major Accident Hazards (MAH). Objectives Promote and support industry efforts to reduce the number of HCRs. Help industry to maintain facilities integrity and condition in compliance with perf standards (structures, equipment, piping, subsea, support systems etc.) Promote application of best practice and industry learning from past major accidents (including learning from other industries) to avoid repeating the mistakes of the past. LOW OIL PRICE INDUSTRY MUST MAINTAIN MORE FOCUS THAN EVER ON ASSET INTEGRITY

KEY AISG ACTIVITIES Build on HSE lead to drive actions to reduce leaks and improve prevention and management of Major Accident Hazards. Identify and promote application of best practice and KPIs. Develop capability and culture in MAH prevention management and HCR reduction. Leadership education in Process Safety Management. All relevant UK companies involved. Includes initiatives such as Mechanical Joint Integrity, Control of Work, etc. in learning scope. Map contribution of the entire workforce and tailor learning so that everyone can play their part. Encourage and develop learning and sharing not only current incidents / near misses, but learning from and continuous application of past lessons. Better process and implementation of learning through SADIE Embed continuous application of past learning. Promote communication & engagement in MAH improvement actions: Encourage site based approach across all installations, top to bottom, including contractors. Engage at all levels OIMs, ESRs, Safety Committees. Encourage everyone to play their part.

AISG WORK GROUPS Implementation Work Group Drive and support company / asset by asset improvement actions Identify & share MAH/HCR good practice / KPIs Monitor plan execution and performance impact Learning/Sharing Work Group Better use of SADIE Continuous application of past learning X-industry sharing event AISG Directs and steers activities Supports pan-industry execution of MAH improvement plans Develop capability in MAH/HCR prevention and management Promote learning from past and current lessons Ensure engagement and communication Developing Capability Work Group X-industry leadership education in process safety Map how everyone plays their part, tailors learning content to suit

What are we doing in Apache?

1.Reduce hydrocarbon releases by 50% Improve hazard and risk awareness Better manage small bore pipework Process safety assurance reviews and audits 8 Apache Operations Key Goals 2015

9 Apache Improvement Plan Training New Hazard Awareness and Risk Assessment hands-on course developed; Train all offshore technicians and managers by Dec 2016. Spadeadam awareness sessions recommenced. Small-bore pipework installation training develop a better solution than the current certification system. Safety Culture & Awareness New Process Safety Dashboard Standardize monthly process safety reviews includes review and challenge of ORAs, process safety audits and safety dashboard. Audits Develop a process safety audit system to include ORAs, overrides, locked- out/locked-open valves and other. Add findings and actions to monthly process safety meetings.

10 Apache Improvement Plan (contd.) Small-bore pipework New standard Management of Small Bore Tubing Systems developed and issued (design, installation, commissioning, ops, maint, inspection). 164 persons completed SBT installation training Establish and manage a competent persons register Operational Risk Assessments (ORAs) Improve ORA quality and goal to close out ORAs as soon as practical. Override Management New Management of Overrides guidance document in place (complete 4Q-14). Procedures New procedures for Management of Small Bore Tubing Systems, Management of Overrides, Management of Procedures. Develop pre-job checklist to determine if a procedure is required when none is currently available.

Apache Performance Leading measures 11

How are we doing? - Apache Performance Lagging measures 12

HOW ARE WE DOING? INDUSTRY HCR PERFORMANCE No. of leaks

Health and Safety Executive Health and Safety Executive Asset Integrity Maintaining safe production Russell Breen ED Offshore Operations Manager

1. Competing pressures Low oil price / high operating costs Pressure on resources: Budgets Reduced manning Reduced training (competency) Ageing assets Surviving now v- securing the future

2. Some fundamentals Good safety is an outcome of efficient operational assets (hardware and software) Safe production is integral to a well managed high hazard business Protecting the asset and the workforce is the same thing MAHs are associated (mainly) with HCRs: failed plant failed systems or both

3. So the key focus is: Ensuring HC hardware is properly maintained Softer aspects are equally important, so process knowledge competency manning levels communication lessons learned etc And also related hardware like TRs, Blast walls, Emergency systems, etc need to be considered.

4. HSEs Strategy Directed at MAH prevention Interventions priorities are based on risk Targeted on key areas and topics Principal focus on Hydrocarbon containment Supported by inspection guides on Maintenance management SCE & Verification ORAs Control of work Competence

5. AISG Purpose and Objectives Improve industry management of Major Accident Hazards Promote and support HCR reduction Support industry to maintain facilities integrity Promote the application of best practice and learnings from major incidents (including from other industries) Series of workgroups covering: HCR Improvements and Implementation MAH Understanding MAH sharing and learning

6. So what does this mean Pulling together to develop universal right answers has clear advantages for all in: Getting it right Identifying and formulating best practice Standardisation; consistency and simplification A common understanding of the benchmarks A level playing field Resourcing and timescale Cost and Value

7. And the Bigger picture Properly addressing MAH safety goes a long way to maintaining safe and efficient production. A key part is ensuring the integrity of the assets and the capability of the personnel. This takes leadership and a recognition that everyone (Dutyholders, Contractors, Stakeholders, Management and Workforce, The Regulator) need to play their part. AISG is setting direction for Industry. I would encourage you all support this valuable role.

HCR Improvement & Implementation Alan Blacklaw & Andy Ewens Asset Integrity Steering Group

What: Develop a method for assessing companies HCR plans, providing objective feedback and promoting cross industry best practice through mentoring. Who: Co Chairs: Alan Blacklaw (Nexen) & Andy Ewens (Amec Foster Wheeler) Team members: Mike Skidmore (Maersk), Mike Wendes (BP), Fraser Selfridge & Kevin Bayne (TAQA), Damon Bowler (Shell), Andy King (BG), Derek Ellington (Enquest), Alex Wilson (Petrofac), Ashley Hynds (HSE) How: A qualitative assessment method has been developed across 7 key themes assessment will recognise Best Practice and inform on Areas of Improvement When: Four assessments planned in Q2: BG, Nexen, Shell, Enquest/Petrofac Further assessments to be scheduled in Q3 & Q4 Implementation workgroup update May 2015

7 Key Themes: Performance Operational activities Investigation Competence Integrity management Communication Human factors

TOPIC: Operation Activities The following questions are designed to determine what systems and processes organisations have in place to mitigate and control hydrocarbon releases QuestionGood Practice / Hints 1 Describe how your control of work system manages your preparation, breaking containment, management of the isolation over time, and plant reinstatement. o Competence and training of Personnel o Processes and Procedures o Safe isolation and reinstatement practices o Permit system guidance on handovers, actions to take if work is interrupted o Valve status register o Isolation selection - determined by risk assessment o Register of Long Term Isolations and the reason for isolation o Periodic review of items on long term isolation register to determine if the isolation remains appropriate, whether plant should be removed, or if some other form of action is required 2 How does your organisations change management system ensure that the status of all plant is known and understood by everyone and that adequate measures are in place to maintain it effectively? E.g. mothballed or redundant equipment, decommissioned plant and equipment. o Isolation Procedures o Register of Long Term Isolations o Register of Dead legs o Locked valve control procedures o Changes outwith the design intention should involve the examination of relevant documentation to ensure continued safe operation

TOPIC: Operation Activities cont The following questions are designed to determine what systems and processes organisations have in place to mitigate and control hydrocarbon releases QuestionGood Practice / Hints 3 What processes and procedures do you have in place to manage bolted joints, flexible hoses and small bore tubing? How does your organisation ensure their implementation can prevent the likelihood of a HCR in these areas? o Implementation of Energy Institute guidelines for small bore tubing, flexible hoses and bolted joints o Guidance from HCR toolkit (step change) o Audit use of procedures and procedural compliance o Suitable storage, selection, installation & maintenance of small bore tubing o Flexible hose register inspection dates/application/criticality rating etc. o Assessed competencies for bolted joints, flexible hosing and SBT 4 How do you ensure that you remain within your plant design envelope? o Alarms & Trips o Operating Procedures o Operator competence o Equipment maintenance o Audits of processes and procedures 5 Describe how your organisation categorises, records, trends and analyses hydrocarbon leaks, weeps and seeps. o Weeps and seeps register o Categorisation of gas release rates through gas monitor, or FLIR camera o Action levels for isolation, shutdown and repair

Learning & Sharing Hugh Bennett & Ian Wright Asset Integrity Steering Group

No. of leaks Focus had been on specific actions for improvement on equipment and processes and great progress was made Inadequate breadth of industry engagement in improvements Progress in leak reduction stalled Annual Performance Hydrocarbon Release Reduction Performance 2014-15 same objectives but a change in activity - engagement

Wide activity spread Hydrocarbon leaks Technical authorities Verification HCR reporting / tracking HCR prevention bulletins Sharing / Lessons Learned Work Groups Steering group and work groups had become large and diverse FROM: TO: Refreshed AISG Goals, Objectives Targeted Activities HCR reduction plans Develop Industry Capability in Process Safety Management More effective sharing of lessons learned More emphasis on Communication and Engagement Work Groups Smaller, action oriented Greater co-operation with other Step Change work groups 2015 Change in Activities and focus Sharing & Learning

Typical Limitations of our Learning Response and notification Local learning Investigation Time passes, people move on, new personnel appear, other locations / companies are not informed Incident happens Solution: Improved proactive Sharing & learning through better awareness of and accessibility to, publications, and, Improved Quality and engagement of experience shared

Learning, engaging and managing major accident hazards remain at the core of how we can work together to further improve our safety performance. Step Change in Safety has created Joined-up Thinking presentations for onshore and offshore safety meetings. The presentations tackle a number of issues that are directly related to hydrocarbon releases and which could have devastating consequences, if not otherwise prevented. Joined-up Thinking presentations Each pack contains a five minute, high quality, animated case study in video format with challenge questions at the end. It is supported by easy-to-follow speaker notes and a special bulletin which provides more details about the incident described in the case study. February 2015 // Change ManagementChange Management April 2015 // Communication Communication June 2015 // Complacency August 2015 // Control of Work October 2015 // Competence December 2015 // Culture February 2016 // Commitment SCiS Joined-up Thinking video presentations

Safety Alert Database and Information Exchange (SADIE) 32 facilitates the sharing of safety information and improves the lateral learning across the industry Available via the Step Change in Safety website Target to significantly improve input to this valuable tool

Original SADIE New format SALE

++ How do we share this valuable knowledge with more people? 30 high value documents SCiS Publications

Abstracts under development

People engage through emotions -Tell a story -Fear or Love, which works better? Next steps http://dumbwaystodie.comhttp://dumbwaystodie.com/

MAH Understanding Stuart Taylor & Peter Hepburn Asset Integrity Steering Group

Purpose: To develop a step change in the understanding of Major Accident Hazards (MAH) that involves the entire workforce and which enables everyone to play their part in improving offshore safety. MAH Understanding workgroup

Team members: Peter HepburnMaersk Oil(Co-chair) Stuart Taylor Apache(Co-chair) Fiona Fitzgerald DNV GL Melanie Taylor HSE Imogen Hutchcroft Apache Tony OShea WG Kenny Mark Stagg Sea Energy Ian Wright Total Glen Sheppard Nexen MAH Understanding workgroup

The aim is to prevent major accidents by: A reduction in hydrocarbon releases Improved workforce engagement and understanding of MAH & MAH barriers Improved asset integrity and reliability Promotion of a MAH management culture Provision of an industry-agreed minimum scope & learning outcomes for MAH understanding MAH Understanding workgroup

Objectives Define the entire workforce into populations Define MAH management and publish a common language/framework Identify each populations learning needs and objectives Produce a MAH understanding Gap Analysis tool for self-assessment with an accompanying guide for use Produce a roadmap to resources for each group so gaps can be closed Identify OSD opportunities MAH Understanding workgroup

The offshore and onshore populations have been defined as: OIM Frontline Supervisor Elected Safety Representative Technician All MD Managers Engineering Supply Chain HR Duty Holders MIST 2 (done) Elected Safety Representatives Development Training (done) Technician MAH Training Frontline Supervisor Training Managers Training Leadership Training MAH Understanding workgroup Population Framework HSE

MAH Understanding workgroup Gap analysis tool

MAH Understanding workgroup Roadmap to resources External resources: Step Change Joined up thinking videos & literature MAH Capability posters Rough platform documentary Falling dominos of Macondo Understanding Bow ties

MAH Understanding workgroup Timeline ActionBy whenCompleted Agree population framework23 Feb Agree Industry benefits23 Feb Present strategy and ask for sign off (from AISG)10 Mar Agree population training needs29 th May Develop gap analysis tool (with guidance)26 th June Develop resources roadmap and identify resources28 th Aug Pilot sessions28 th Sept Launch at Leadership workshop6 th Oct Monitor uptake through MCR group 2016

MAH Understanding workgroup Summary To develop a step change in the understanding of Major Accident Hazards (MAH) throughout the industry A population framework has been identified A gap analysis tool is under development A road map to resources is being developed Full launch planned for 6 th Oct

Asset Integrity Steering Group Lunch & Learn 15 May 2015

Documents

Asset Integrity Steering Group Lunch & Learn 15 May 2015