International Seminar Brazil Norway

Transcription

1 International Seminar Brazil Norway «The Norwegian experience on regulations and standardization in the petroleum industry» Arild Drechsler - Manager Regulatory Affairs-OLF Rio de Janeiro 22 November 2010

2 The contents of my presentation: About OLF The Norwegian Oil Industry Association Information of the significance of the Norwegian petroleum sector The legal regime on the Norwegian Continental Shelf (NCS) More specific on standardization on NCS activities Closing remarks 2

3 OLF The Norwegian Oil Industry Association OLF is a professional industry- and employer s association for oil and supplier companies engaged in the field of exploration and production of oil and gas on the Norwegian Continental Shelf (NCS) OLF is a member of the Confederation of Norwegian Business and Industry, NHO The main office is at Forus, Stavanger OLF also has an office in Oslo 3

4 Members in OLF 46 Oil companies Bayerngas Norge BG Norge Limited BP Norge Bridge Energy Centrica Energi Chevron Norge Concedo ConocoPhillips Norge Dana Petroleum Norway Det norske oljeselskap DONG E&P Norge Edison International Norway Eni Norge E.ON Ruhrgas Norge Esso Norge Faroe Petroleum Norge Front Exploration Gassco GDF SUEZ E&P Norge Hess Norge Idemitsu Petroleum Norge LOTOS Expl. and Production Norge Lundin Norway Marathon Petroleum Company Maersk Oil Norway Nexen Exploration Norge Norske AEDC Norske Shell North Energy Norwegian Energy Company OMV (Norge) Petoro Petro-Canada Norge PGNIG Norge Premier Oil Norge Repsol Exploration Norge Rocksource RWE Dea Norge Skeie Energy Spring Energy Norway Statoil Svenska Petroleum Exploration Talisman Energy Norge Total E&P Norge VNG Norge Wintershall Norge 4

5 Members in OLF (2) 57 Supplier companies Drilling and well service Aker Subsea Aker Well Service Baker Hughes Norge BJ Process & Pipeline Services BJ Services Franks International AS Geoservices Halliburton IOS Tubular Management Intertek West Lab KCA Deutag Drilling Norge M-I Swaco Norge M-I EPCON Prosafe Ramco Schlumberger Norge Smith International Norway VetcoGray Scandinavia Weatherford Norge Weatherford Laboratories WellDynamics Norge Welltec Norway Subsea Acergy Norway NUI Oceaneering Riise Underwater Engineering Scan Mudring Subsea 7 Norway Technip Norge Catering ESS Support Services Sodexo Remote Sites Norway Supply bases ASCo Norge Helgelandsbase Coast Center Base Mongstadbase NorSea Polarbase Saga Fjordbase Vestbase Other supplier companies AGR EmiTeam Benor AS Expro Norway Expro Group Norway Landmark Graphics Nosefo Tau Falck Nutec Petrotech ResQ Securitas SGS Norge TWMA Norge Teekay Shipping Norway AS 5

6 Strategic areas Health, safety and environment Access to prospective acreage The external environment Pay and working conditions Profitability/operational excellence Fiscal framework conditions R&D and innovation Knowledge and education Member follow-up and organization 6

7 Norwegian Continental Shelf: Large areas yet to be explored 60 % of the NCS is opened for exploration 16 % of the opened area are currently licensed 7

8 The Barents Sea Emerging frontier area Opened for exploration in 1980 First discovery in wells drilled Northern Barents Sea not opened Area of overlapping claims 8

9 Macro economical indicators 2010 The petroleum sector s share of GDP The petroleum sector's share of state revenues The petroleum sector s share of total investment The petroleum sector s share of total exports 9 Source: Statistics Norway/Finansdepartementet /OED

10 Top 25 Areas Undiscovered Resources Billion BOE Russia Saudi Arabia Iran Brazil Iraq Greenland Nigeria Norway Turkmenistan Venezuela Kazakhstan Mexico China Australia Indonesia Angola Suriname Azerbaijan Algeria U. A. E. Gabon Malaysia Libya Qatar U. K. Source: US Geological Survey World Petroleum Assessment 2010/ Marathon Oil

11 The Worlds largest gas exporters (2009) Bill. scm gas per year 11 Source: Source: KBC /Cedigaz/ OED

12 The World needs energy The global demand for energy will rise with 40 % within 2030 Global demand for energy More than ¾ of the global need for energy will be covered with fossil energy holders. Only 1 % of the total energy consumption is from renewable energy it might rise to 3 % in Source: IEA WEO 2009 / OED

13 HSE legal regime on NCS - some general issues The HSE legal regime covers development and operational aspects, from the concept to the disposal phase The HSE rules and regulations cover most of the legal aspects on NCS, except licensing/resource aspects as well as fiscal/tax legal aspects. The recommended use of norms such as standards (ISO/NORSOK), industry guidelines (from OLF), best practice in the industry sector (SfS), apply as a principal rule to health, working environment and safety generally not to external environment. A challenge! 13

14 The HSE legal regime, with subsequent yearly amendments, is the main basis for a comprehensive and coordinated set of rules and supervision on NCS and integrated onshore petroleum-facilities The HSE regime emphasizes risk reduction principles, and focusing on risk management in particular. (Both for PSA/OLF) The HSE regime comprises 1) safety 2) working environment 3) health 4) the external environment 5) economic values If conflict of interest, people s life and health are prioritized! 14

15 The Norwegian HSE role and actors - OLF s role The tripartite model Authorities Employers Employees OLF s role Employers representative OLF represents our member companies, both operators and suppliers, in tripartite arenas. OLF s members interests OLF focus on member companies needs and expectations. Tripartite arenas Safety Forum Regulatory forum Statutory skills for the NCS - RVK Working Together for Safety (SfS) Standardisation petroleum sector board 15 The Norwegian Oil Industry Association

16 OLF main issues for the HSE legal regime OLF states that the HSE regime on NCS should be; Functional based, not prescriptive, with the industry s own preparation and use of norms (standards-guidelines-best practice) A legal HSE regime based on innovation and flexibility Based on legal practice which accepts possibilities to challenge the regime and/or the public practice from the governmental side without any hard feelings in the governmental bodies and/or in the unions. To challenge the HSE legal system and practice should always be fully accepted professionally by the parties involved. Based on the industry s internal and high competence and rich experience after 40 years, one should allow the industry to find our own, acceptable solutions with minimal or no interruption from public bodies. 16

17 OLF main issues for the HSE legal regime (cont.) A legal HSE regime based on mutual trust, openness and predictability among the parties involved. Based on international framework conditions Be in the forefront nationally as well as internationally in all aspects of HSE, but in the same time on a cost-effective basis. Continue the important process towards a HSE legal regime which supports the long-lasting expansion track as stated in the last Petroleum White papers (from OED), not follow the crumbling path or other suboptimal strategies. 17

18 Future challenges for the government Challenges for both industry and authorities when having a legal regime based on governmental assessments.this creates high attention on all sides but in the public bodies in particular, i. e High professional and legal competence in industry and public bodies Orderly practice in the public bodies Written practice in the public bodies Common practice in the public bodies More use of cost-benefit assessments in public practice (Ptil) Better clarification regarding parties responsible (pliktsubjekt) 18

19 More challenges ahead Requirements have been carried over from offshore to onshore activities without adequate consequence-assessments. A negative rub-off effect. Attempts have been made to assess consequences of the effect of a number of changes; however, it has been widely expressed that this is a only a continuation of long lasting practice In OLF s view an over-simplification! Some of the changes involve real and costly changes and new challenges to the industry. Most difficult topic is working time arrangements; work at night, rest, organization of work etc. OLF asks for better collaboration between the governing and regulatory bodies. The co-ordination role for PSA is positive. In particular the regulatory boundaries for the PSA/SPCA/SHDir/DSB should be better specified to land facilities. Adverse/wrong enforcement/implementation of HSE rules and regs. can have highly negative consequences for the exploitation of resources. (OED) In principle, the HSE legal regime for our sector should be the same as for other industrial activities unless special conditions (i.e. good reasons) dictate otherwise. 19

20 challenges on framework conditions and legal topics 2010 OLF s main concern and strategies will be concentrated on : Work towards a more cost-effective and functional based legal regime both offshore and on land-based activities Contribute to harmonize the NCS frame work conditions in an international context and especially for the North West European area (Uk, Denmark, Holland and Germany). To contribute in the proceedings in a manner that OLF gains vote of confidence among the politicians to be an active and reliable player Focus on activities in the North/Barents sea/artic areas Evaluate all issues related to the tri-partite system 20 The Norwegian Oil Industry Association

21 challenges on framework conditions and legal topics 2010 Focus on and evaluate differences between on- and offshore working conditions Evaluate new models for remote control on - and offshore and in an integrated operative context / IO challenges Contribute to clarify roles of responsibility between the parties involved Focus learning through experience/major accidents Focus on HSE competence in all aspects, also on legal issues Contribute to create HSE-White papers giving a realistic picture of the petroleum industry in Norway in which all players can identify own roles and responsibilities 21

22 challenges on framework conditions and legal topics 2010 To follow up our main goal that the Norwegian petroleum industry shall be in the HSEforefront on a global basis To focus on risk reduction on major accidents, personal injuries, work-related health injuries and damage to the environment Activities in the Norwegian petroleum industry, both offshore an on land, must be fully competitive on a global basis OLF supports publication of a comprehensive HSE White Paper 2010 covering all industry sectors in Norway, not only on the «wealthy petroleum sector». Keyword: Integration Focus on life-time extension of ageing installations Focus on HSE challenges among smaller and new actors on NCS Focus on the enforcement/interpretation of the HSE regime by PSA and other supervisory bodies on NCS The balance between HSE- resource management and cost benefit in our industry, ref. the Petroleum Act. 22

23 Main industry view from OLF The HSE legal regime should be based on increasing value creation The HSE legal regime should focus on high HSE standard based on; the principle of continuous improvements on HSE modern management-steering principles user friendly legal structure and provisions well co-ordinated provisions among the public bodies on/offshore predictable legal system and provisions functional requirements which create innovation and flexibility international harmonization of provisions and standards by limiting the Norwegian specific requirements to a minimum, and promote application of international standards 23

24 OLF comments specially to offshore activities On the whole, the established rules and regulations for offshore activities are satisfactory and will be retained The new provisions in force from are therefore satisfactory and to live with. 24

25 A safe cowboy based on PSA Prescriptive Regulations 25

26 Challenges for the industry Competence and skills to handle the HSE legal regime based on functional or performance-based requirements for all parties involved. Most important of all elements when dealing with legal issues; common sense or horse sense! 26

27 RVK Rules and regulations competence The RVK initiative background from 2001 The authorities repeatedly called attention to inadequate knowledge of the petroleum regulations Emphasis on HSE by the politicians Transport accidents Reports/audits from offshore 27

28 RVK Hårek (Haggard the Horrible)... and you shall follow all the ten commandments! He can t mean my line of business! - Our industry s recognition of inadequate knowledge 28

29 Path-breaking emphasis on statutory skills Initiative by the employers organizations OLF The Norwegian Oil Industry Association Norwegian Shipowners Association Active participation by public authorities OD Norwegian Petroleum Directorate (NPD)/Ptil Petroleum Safety Authority Norway (PSA) SFT Norwegian Pollution Control Authority (NPCA) Norwegian Board of Health/Directorate for health and social affairs (SHdir) Participation by the labour unions LO, Industrial Section The Norwegian Confederation of Trade Unions NOPEF The Norwegian Oil and Petrochemical Workers Union; now IE OFS Federation of Oil Worker s Trade Unions; now SAFE Lederne - Norwegian Association of Managers, Supervisors and Technicians From parties to partners! Active financial support from the public authorities and from partners In 10 years more than participants from our industry! 29

30 Module learning elements Knowledge of events that are central to the development of the offshore regulations Knowledge of the development of the HSE regulations General idea of the regulations, structure and contents Knowledge of regulatory and executive authorities their roles and responsibilities, plus their enforcement and practicing of the legal regime 30

31 The regulatory hierarchy ACT REGULATIONS GUIDELINES STANDARD COMPANY INTERNAL NORMS 31

32 Developments in the use of standards/norms Acts Acts Acts Acts Regulations Regulations Regulations Regulations NPD guidelines NPD guidelines NPD guidelines Appendices Guidelines Company internal standards NORSOK/company Internal standards NORSOK/company Internal standards Other standards Other standards Other standards NORSOK/company Internal standards Other standards 32 Classification rules, maritime legislation

33 33 Standard s «It s a jungle out there»

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35 Standardisation in the Norwegian Petroleum Industry Vision Excellent standards give continuous improvement of Safety, Health and Environment, - and increased added value in the Norwegian petroleum industry Goals No 1: Access to and use of standards of high quality No 1.1: Availability of international standards covering the needs of Norwegian petroleum industry. No 1.2: Availability of national- / industry standards (NS / NORSOK) covering the potential gap between the international standards and the Norwegian needs. No 1.3: An effective experience feedback system. No 2: Effective standardisation activities No 2.1: Effective use of the experts in the industry. No 2.2: Effective management, structure of committees and work in the standardisation bodies 35

36 Standardisation in the Norwegian Petroleum Industry The Organization The standardisation activities in the Petroleum sector are managed by an executive committee, Sector Board Petroleum Industry, with wide industry participation. The formal administration is handled by Standards Norway. The Sector Committee Petroleum Industry (SN/K 114), has the main focus on international standardisation, assist in strategy development and supports the project manager. The real standardisation work is performed by discipline experts, organized in and under discipline expert groups. Individuals representing Norway in international standardisation work shall coordinate their work with the established Expert group. Ad hoc project teams, for issuing new and for revision of existing NORSOK standards, shall report to the Expert group. Standards Norway supports the work with standardisation knowledge, Standards Norway key personnel. 36

37 Standardisation in the Norwegian Petroleum Industry The Petroleum Sector Board Jan Inge Dalane, The Norwegian Oil Industry Association (OLF) / Statoil (chair) Astrid Onsum, Federation of Norwegian Industries / Aker Solutions (deputy chair) Kjersti Høgestøl, Maritime Industry /Norwegian Shipowners Association Arild Drechsler, The Norwegian Oil Industry Association (OLF) Halvor Erikstein, The Norwegian Union of Energy workers (SAFE) Arne Larsen Fløisvig, The Norwegian Confederation of Trade Unions (LO) Rolf Hestenes, Federation of Norwegian Industries Norvald P. Holte, Lederne Gunhild Holtet Eie, The Norwegian Oil Industry Association (OLF) / Statoil Olaf Thuestad, Authorities /Petroleum Safety Authority Norway ( PSA) Christian Holthe, Standards Norway Jan Gustaf Eriksson, Project Manager / Standards Norway 37

38 Standardisation in the Norwegian Petroleum Industry Expert Groups EG C Civil / Architect EG D Drilling EG E Electrical EG G Geotechnology EG H HVAC EG I Instrumentation EG I SCD System Control Diagrams EG IM Metering EG J Marine Operation EG K117 Offshore containers EG L Piping / Layout EG M Material EG N Structural EG P Process EG R Mechanical EG RL Lifting Equipment EG S Safety (SHE) EG T Telecommunication EG U Subsea EG UB Underwater operations EG WFWell fluids EG Y Pipeline EG Z CCS Cost Coding System EG Z MC&P Mechanical Completion & Preservation EG Z TE Temporary Equipment EG Z TI Technical Information EG ZR Regularity and Criticality 38

39 Standards Petroleum activities (..) shall be conducted in a prudent manner and in accordance with recognized standards for such petroleum activities, cf. the Petroleum Act (now in accordance with applicable legislation, cf. the Framework regulations section 18 on documentation) ISO, IEC and CEN standards are generally recognized Industrial standards are recognized by the authorities when referred to by the regulations/guidelines No real deregulation when refering to norm/standards 39

40 The regulations and standards: NORSOK (cont.) In addition to NORSOK standards, the following are used: ISO (International Standard Organization) and IEC (International Electrotechnical Commission) standards API (American Petroleum Institute) standards Approaching the ISO standards ( a certain power struggle between continents, though) European regional standards such as CEN/EN - CENELEC/EN Maritime standards such as IMO, and DNV/classification standards Norsk <Norwegian> Standard, NS Non-maritime DNV standards (pipelines and risers) OLF guidelines (emergency preparedness training etc.) 40

41 The regulations and standards: NORSOK Status - NORSOK standards Around 85 NORSOK standards published Around 40 NORSOK standards recommended in the regulations All NORSOK standards are in English; quite a few in Norwegian A tripartite project has defined the criteria for translation into Norwegian. All NORSOK standards are free of charge (available on the Internet ) 2001 the administration of the NORSOK standards was reorganized and revitalized. It is now administrered by Standard Norge (founded 23 June 2003) 41

42 NORSOK - standards The NORSOK standards are developed by the Norwegian petroleum industry to ensure adequate safety, value adding and cost effectiveness for existing and future petroleum industry developments in Norway. The objective is to provide international standardisation work with Norwegian knowledge in order to improve international standards and reduce the need for NORSOK standards. The preparation and publication of the NORSOK standards is supported by OLF (The Norwegian Oil Industry Association) and Federation of Norwegian Industries. NORSOK standards are managed and issued by Standards Norway. 42

43 Petroleum standardisation and ISO Most of the international standardisation activities are organized in ISO/TC 67 "Materials, equipment and offshore structures for petroleum, petrochemical and natural gas industries". In 2010, 164 standards are published and 69 active Work Items are on the program. Norway takes part in all 6 sub-committees in ISO/TC 67, and contributes with experts in most of the working groups. The Norwegian petroleum industry participates also in many of other international standardisation committees. Experts from a wide range of Norwegian companies participate heavily in the development of ISO and European standards. 43

44 Standardisation in the Norwegian Petroleum Industry ISO/TC 67 Materials, equipment and offshore structures for petroleum, petrochemical and natural gas industries Useful ISO links ISO/TC 67 web page ISO/TC 67 Standards published ISO/TC 67 Work program ISO/TC 67 drafts for voting 44 Organization and Norwegian participation of ISO/TC 67 Work ISO/TC 67 Scope and membership ISO/TC 67 Management Committee/Executive Committee ISO/TC 67/SC 2 Pipeline transportation systems ISO/TC 67/SC 3 Drilling and completion fluids and well cements ISO/TC 67/SC 4 Drilling and production equipment ISO/TC 67/SC 5 Casing, tubing, and drill pipe ISO/TC 67/SC 6 Processing equipment and systems ISO/TC 67/SC 7 Offshore structures ISO/TC 67 Workgroups

45 Key projects international, Norwegian lead ISO ISO ISO ISO Materials selection for Upstream Operations ( NORSOK M-001) Compact flanged connections (NORSOK L-005) Offshore containers and associated lifting sets Geotechnical and foundation design (NORSOK G-001) 45

46 Key projects international, Norwegian lead ISO/NP TS Reliability modelling and calculation of safety system ISO ISO EN External coating for pipelines Weight control during engineering and construction Offshore cranes, general purpose offshore cranes 46

47 Subsea standards, major Norwegian impact ISO established under Norwegian leadership, comprising 11 parts All parts adopted identical by API 5 additional parts in process of establishing 10 NORSOK standards withdrawn 47

48 Some key projects, NORSOK 2010/ D-001 Drilling facilities R-003 Safe use of lifting equipment U-103 Petroleum related inshore diving Systematic reviews and updates NS 5820 Supplier documentation 5 0 Totalt antall Ptil referanser Norsok totalt Norsok referert av Ptil

49 The impact of standards - CAPEX Re-use of best practice design principles, less engineering hours Improved availability of systems, less sparing Enhanced design knowledge, less materials needs Reduced equipment and material costs, international competitive sourcing Enabling extended life of field 49

50 The impact of standards OPEX Improved reliability, less maintenance Reduced number of varieties, smaller stock of spares Improved materials properties, less corrosion Common design and operational procedures across company borders, reduced need for training personnel Improved HSE attitude of personnel, reduced number of incidents and accidents 50

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53 OGP considers regulators use of standards OGP Standards Committee Regulators use of standards! OGP Report No. TBA DRAFT Version:

54 The role of regulators should always be: To clearly define roles and liabilities among parties involved To ensure predictable framework conditions, regarding all aspects of the industry; safety, environment, working environment, economically To create regulations that have a continuous improvement focus and involves all three parties employees, employers and regulators alike in policy development. To focus on international standards when possible as we are a global industry. But differences in culture and legal tradition must be taken into consideration.

55 OLF Guidelines The OLF has established a number of guidelines in the areas of: Competence Employment Environment HSE and operations Integrated operations Framework conditions Resource management Fiscal conditions - OLF guidelines on our Website -. 55

56 56 A passion for standards..

57 A sound HSE culture Focus on HSE culture by introduction of a separate provision in 2002 Shall cover all parts of the individual enterprise Focus on responsibilities and increased awareness at all levels The management has special and focused responsibility Focus on systematic and constant development and improvement Based on involvement and contribution from all parties Open and free communication and information Openness and trust a precondition for the reporting of matters of importance to HSE Duty to report, cf. the information duty regulations Ability and willingness to learn and improve Development of the safety culture is a never ending story! 57