Value without compromise.

A Framework for Business Continuity to Provide High Availability in Floating LNG Operations

Pete Winn and Alex LalVelrada

How does business continuity support a resilient operation?

What’s changed with FLNG?

A new approach to planning for FLNG.

Why should we care?

Today’s agenda

Established in 2009, Velrada is an award winning, Australian-owned, business and technology consulting firm with strong experience in resources around the Asia-Pacific region.

Pete and Alex have delivered Business Continuity Planning engagements for a range of clients in the Oil & Gas, Mining, Engineering and Construction industries, and the Public Sector.

Our consulting in this area draws on strong capabilities in:

Operational Efficiency

Integrated and Intelligent Operations

Risk Management

Organisational Change Management

Analytics and Optimisation of Processes

Supply chain and logistics optimisation

Online Collaboration and Information Management

Pete WinnIntelligent Operations

SME

Alex LalBusiness Continuity & Disaster Recovery SME

By way of introduction

RISK MANAGEMENT

Emergency Management

(EM)

Business Continuity

Management(BCM)

Health & Safety(HSEC)

Disaster Recovery

(DR)

A heavy focus and highly mature function engrained in the culture of the organisation

A mature practice throughout Oil and Gas backed up by solid historical evidence

Well developed and delivered supported by legislation and license to operate Often overlooked and

draws together a number of functions throughout the business

Provision of highly available systems and technology mature in O&G

The role of business continuity in supporting resilient operation?

63% of a business functions have a recovery time of less than 24hrs.(Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)

47% of organisations do not know the cost of business disruptions in the last 12 months.(KPMG: global Business Continuity Management Program Benchmark Study)

Organisations do not have an up-to-date business continuity or disaster recovery plan (Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)

13in

2weeks

More than half of organisations believe their ‘worst case scenario’ outage to be 2 weeks or more.(Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)

Expectations vs. Reality

This is a new technology with a high degree of variability and a limited knowledge base to support efficient operations.

With this in mind, can you still rely on identifying all the risks up front?

FLNG Changes the game

Challenging cost Environment Leading to

requirement for constant offloading

in all conditions

New technologies that aren’t

understood in new environments

Multiple concepts will be realised

leading to a high variance in

operating vessels

Lack of support from nearby onshore

facilities & supply base

ScenariosMitigation PlansRisks

Scenarios

Scenarios

Scenarios

Scenarios

Scenarios

What does this mean?

ScenariosMitigation PlansRisks

ScenariosMitigation PlansRisks

Recovery Strategies BCP Framework

Level of Preparednes

s

‘MITIGATE’

Possible Recovery

Points

Effectiveness of Planning ‘REMEDIATE’

TIME

IMPA

CT

Improvement

Normal

Deterioration

Getting it right

INCIDENT

A business continuity planning framework shifts the focus from reacting to specific known scenarios, to planning based on what’s important to the operation: reducing recovery time.

Assess”Understand the scope of the operation and prioritise based on value chain analysis and

maximum acceptable outage”

Assess”Understand the scope of the operation and prioritise based on value chain analysis and maximum acceptable outage”

Emergency

ResponseMedical

Business and Facilities Functions

H

OffloadStorageProcessingExtraction

Reliability &

Inspection

Control & Operation

s

Supply & Logistics

Marine Operation

s

Production Planning

Surveillance

Health and Safety

Contracting

Reservoir Optimisati

on

Remote Assistance

Maintenance Planning

Govern“Embed the framework define responsibilities, assign ownerships

and embed in your continuous improvement process”

Assess”Understand the scope of the operation and prioritise based on value chain analysis and

maximum acceptable outage”

Test”Check that the appropriate

strategies are in place and

understood throughout the organisation”

Analyse”For each function map out the

critical human, information,

physical, system and process

assets and their

interdependencies”

Plan”Identify and record recovery strategies for a failure in each asset competent of the business function

CMS Outage

Another operator has suffered a helicopter incident causing the grounding of a significant proportion of your fleet for safety concerns, this has lead to a lack of coverage for medical evacuation and a shut down of operations.

Helicopter Vendor

Helicopter Contract

Medical Evacuation

Contract Manager

Helicopter Fleet

Fleet ShareAgreement

Contract Analyst

No backup process!

CMSPaper Copies

Detailed Process

Instructions

Shared Medivac

Manager ill!

No backup fleet!

Single Vendor!

Fleet grounded!

Little evidence of major incident planning. Processes are unclear or poorly documented. Little or no understanding of which business processes or systems to prioritise in the event of a major incident.

Very Immature

Processes are defined and documented with some gaps, but are largely manual. Information used to prioritise business processes or systems in the event of a major incident is incomplete or not used

Immature

Processes are well defined but inconsistently applied. Monitoring tools in place but not used proactively. Core business processes and systems can generally be recovered within an acceptable timeframe.

Somewhat Mature

Mostly resilient with some degree of process automation. System and infrastructure monitoring tools in place and proactively used to anticipate/respond to BCDR incidents.

Mature

Highly resilient with a degree of process automation. Monitoring tools in place and proactively used for future planning. Near-line BCDR capability that is well-aligned to business operations

Advanced

Realistic. Achievable. Build confidence early. Iterate. Buy in.

FLNG poses unique BC challenges.

The risks are substantial and have changed and so should the planning in response to this.

Planning and preparation is key to reducing the time to return to operations.

Framework approach leads to a quicker return to normal operations.

Key takeaways

© 2014 Velrada Capital Pty Ltd. All rights reserved.

The information contained herein is for informational purposes only and represents the current view of Velrada Capital as at the date of the presentation. Velrada Capital cannot guarantee the accuracy of any information provided after the date of this presentation. Velrada Capital makes no warranties, express, implied or statutory as to the information in this presentation.

Thank you.

www.velrada.com

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