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Transcript of Wells Integrated Gas: Red and No -Go Zone …dropsonline.org/downloads/minutes28nov/6 Drops...
Shell Integrated Gas
DROPS Forum Brunei Nov 2013
RESTRICTED February 10, 2014 1
Wells Integrated Gas:
Red and No-Go Zone Management Policy
Josephine Song
Integrated Gas Drops Focal Point
RESTRICTED
DEFINITIONS AND CAUTIONARY NOTE Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the
United States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2011 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement. Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.
Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S. investors are urged to consider closely the disclosure in Shell's Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
RESTRICTED 3
DROPS statistics to date
Observations on Red Zones on different units
Implementing the policy
Responses from contractors on Red and No-Go Zone Management policy
OVERVIEW
RESTRICTED RESTRICTED
DROPPED OBJECTS – TIMELINE
4
0
2
4
6
8
10
12
14
16
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009 2010 2011 2012 2013 YTD
No.
of D
ropp
ed O
bjec
ts (RA
M P
oten
tial 4
+5)
55 YTD*
RESTRICTED RESTRICTED
WELLS IG DROPS INCIDENTS STATISTICS (YTD 31ST OCT)
5
54 Incidents reported
12 Hi-Potentials
− 83 % in Red/ No-Go Zones
Source: Shell Fountain Incident Management System
RESTRICTED 7
Dog House
V-Door
Draworks
I/RRC
HPU
Gate
I/R
Access ladder to R/F
Access ladder to R/F
Access ladder to R/F
MCC room
A/C
Swaco
DRILL FLOOR RED ZONE
UP
Updated :- 5th December 2011
NOTE
RED ZONE WHEN CATWALK
NOTERED ZONE WHEN CATWALKMACHINE OPERATING
Draw work
Dog House
West Pelaut Rig Floor
V-door
Standpipe Manifold
PB Degasser
Hi Line WinchCh
oke
Man
ifold
Derr
ick
foot
prin
tDe
rric
k fo
otpr
int
Derr
ick
foot
prin
tDe
rric
k fo
otpr
int
Winch
Warning sign
Warning sign
Rotary table
Staircase to Rig floor
Staircase to Rig floor
Red Zone
Green Zone
VARIATIONS ON A THEME - RED ZONES IN BSP RIGS
RESTRICTED 8
OBSERVATIONS
Large variance of understanding and interpretation of Red Zones, Safe Zones and the objective of Rig Floor
Management. A big link to DROPS!
Not all units have a detail Policy or Procedure about Red zones
– The most detail was from one rig contractor refers to Entire Rig
– Some are basic – not part of the Management System and not embedded in HSE Cases
No Hard wired message on “limiting activty” in High Risk Zones and the implicit use of “Safe Zones”
Some Service Companies do not have “Red Zone Management” Polices in their work instruction / procedures for staff.
– Huge reliance on Drilling Contractor HSEMS
RESTRICTED
RED/ NO-GO ZONE MANAGEMENT POLICY
Policy statement for Integrated Gas:
High Risk Work Areas (NO-GO Zones), and controlled hazards areas (Red Zones) should be managed with
the objective of limiting the presence of personnel in the vicinity of hazardous equipment & unconstrained
sources of energy.
Implementation:
— All Wells operations work locations shall have a process of identifying and policing DROPS ‘NO-GO’ and
‘Red Zones’.
10
RESTRICTED
RED/ NO-GO ZONE MANAGEMENT POLICY (2)
NO-GO ZONES:
— Restricted areas, strictly controlled by a Permit to Work.
— Shall have physical barriers.
RED ZONES:
— To be entered only when authorised.
— Entry must be controlled by a designated person in charge.
— Shall have a practice of active Red zone monitoring, including but not limited to the appointment of dedicated ‘Red Zone
wardens’ for routine operations.
— Shall be physically visible, with active barriers or delineation.
— A DROPS Risk Assessment shall be conducted for ALL ‘Work at Height’ activities to reduce DROPS risks
and verify ‘NO-GO’ and ‘Red Zones’ effectiveness.
— ‘NO-GO’ and ‘Red Zones’ management shall be included in work location inductions and training.
11
RESTRICTED 12
BEST PRACTICES
Focus No. 1:
Risk Assessment to verify Zone effectiveness (IDENTIFYING)
Copyright of Shell Projects and Technology
CASE FOR CONTINUED ACTION
“I can’t shake the feeling that we all have been desensitized to our horrendous DROP’s frequency and
that eventually our luck is going to run out. I don’t want to look back in 6 months time and say if
only we had done more.”
- Peter Sharpe 18 July 2013
15
Pinedale USA
Fatal incident caused by
falling drill pipe
South Texas USA
Fatal incident, floor man
struck by forklift lifting
device
Egypt
Fatal incident, during
rig move operation
Where?
What are we doing
differently to prevent the
next fatality?
Who?
? 10 months 16 months 35 months ?
June 2008 April 2009 When? August 2010
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Up to two lines if required
RESTRICTED February 10, 2014 16
Integrated Gas BIP 2013
Copyright of Shell Sarawak Berhad
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RESTRICTED
DROPS timeline
17 February 10, 2014 Copyright of Shell Sarawak Berhad
Copyright of Shell Projects & Technology
Prevention of Dropped Objects Manual
EP 2009-9039
18 2/10/2014
SCOPE- all operations and activities associated with drilling, completion
and well intervention including mobilisation/transportation of personnel
and equipment to/from operation related location
There are four principles, with a number of Mandatory Requirements as set out in the Prevention of Dropped Objects Manual.
Principle 1 Contractors providing equipment and personnel on Shell well sites shall have a Dropped Object
Prevention Scheme in place
Principle 2 A systematic dropped object inspection programme shall be in place
Principle 3 Worksite Hazard management for dropped objects shall be in place
Principle 4 Audits to check for compliance with Dropped Object Prevention Scheme shall be in place
Copyright of Shell Projects & Technology
What are we doing to STOP dropped objects ?
19 2/10/2014
Gap analysis Template Prevention of Dropped Objects Manual
EP 2009-9039
The gap analysis is a tool to assess the compliance with the mandatory requirements of our Prevention of Dropped Objects Manual (EP 2009-9039)
20
Volume 1 includes:
Mandatory requirements
Role of focal points
DROPS calculator
Tubular handling
Derrick temp equipment
No Go and Red Zones
Reliable securing practices
Volume 2 includes:
Expands on mandatory reqs
DROPS inspection programme
Audits to check for compliance
No-Go Zones and Red Zones
Lifting and Hoisting:
Planning and execution of lifting ops
Personnel lifting
Design and certification of equipment
Crane operations
Slinging of tubulars
Pre-job inspections
What are we doing to STOP dropped objects ?
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RESTRICTED
Dropped Object Campaign – Training Packs
21 Aug 2012 Copyright of Shell Sarawak Berhad
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Up to two lines if required
RESTRICTED
IG DROPS PREVENTION PLAN 2013
February 10, 2014 22
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RESTRICTED
Drops Focal Points in Integrated Gas
February 10, 2014 23
Regional Focal Point – Josephine Song ([email protected])
SMEP - Mel Bryant Dulam (Well Eng), Adrian Maidi (CWI Eng)
Deepwater – Michael Bark (HSE)
BSP – Ismail Hamzat (SWE) / Imran Amir (HSE)
SDA – Wout Keultjes (SWE) / Lance Costello (Contractor HSE) / Michael Chapman (HSE)
Arrow – Ben Prain (HSE), Les Friske (Well Eng), Ray Watt (SWMS HSE)
STOS – Bernard Poon (Well Eng), Ryan Ashworth (CWI Eng)
Qatar - Dorcas Odeinde (HSE)
SCEPCO – Chen Bo (HSE)