The Norwegian Context PTIL/PSA 1

Transcription

1 The Norwegian Context 1

2 Some fast facts about Norway s petroleum industry Oil and gas is Norway s largest industry today Net cash flow from the petroleum industry is 26% of GNP (2012) 40 years of operations 78 producing oil & gas fields (2013) More then 3000 wells for production or injection purposes (2010) km of subsea pipelines (2008) Employment for of 4,5 million population Produces 20 times more than our domestic consumption Exporting gas (liquefied) also to markets outside Europe

3 Political commitment (Introduced in 2003 and repeated by every new government) 03/01/2017 3

4 Separation of roles and responsibilities Ministry of Petroleum and Energy Ministry of Labour and Social Affairs Resource management Oil companies Ministriel level National National plans plans plans National Legal Legal Legal plans basis basis basis Legal Licensing basis Licensing Licensing Safety management Authority/ Directorate Field development Contracting Operations Marketing Detail regulations Supervision Advice (PSA) N P D

5 Management of Oil and Gas in Norway From joint to separate administration in 2004

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7 Safety challenges in the Petroleum Sector Safety, Health and Environmental impacts - High risk potential - Avoidance of big hazards/disasters - High pressure and temperature acitvities (Reservoirs, wells, vessels, pipelines etc) - Flammable products (Gas and fluids) - Processing of oil and gas - Handling of chemicals - Corrosive environment (CO2 and H2S + water) - Transport of oil and gas (pipelines, ships etc) - Complicated, dynamic and high intensive technological development - Rapid technological changes - High decree of interactions between different technical disciplines multi skilled experts - Strong and important counterparts - Oil industry - Labour unions Important members of the tripartite collaboration - Local communities issues - NGO`s - Balancing of different considerations - Maximization of productions versus high level of safety - Use of chemicals to increase recovery and make transportation more efficient versus health and environmental impacts

8 A predictable licensing system The Norwegian system is a discretionary licensing system - Awards based on technical competence and geological understanding - Composition of companies in the license - Licensees are awarded licence shares and thereby compelled to form a business partnership in a licence one is appointed as operator - Work program No signature bonuses 29% corporation tax and 50% special petroleum tax Full consolidation of income and expenses All expenses are tax deductible Bodø University College

9 The Norwegian Context Historical review Resource mgmt and Safety Separated reporting lines for Resource and HSE mgnt Separated institutions More than Less than fatalities fatalities Bravo disaster 1977 Alexander Kielland disaster 1980 The development of legislation and regulations in the petroleum industry in Norway can be seen in two distinct phases with the year -85 as the turning point

10 The first period of offshore oil and gas in Norway Resource mgmt and Safety Separated reporting lines for Resource and HSE mgnt 1985 Bravo disaster 1977 Alexander Kielland disaster 1980 In the period the petroleum authorities "borrowed" in regulations and instructions that originally were developed for other national industries and Imported principles and guidelines from international sources in areas the petroleum authority didn t have expertise and experience (use of third party verification consultancy) The regulations appeared to be fragmentary and complex with prescriptive requirements which was enforced and followed up by a number of government institutions within their respective areas of responsibility

11 The paradigm shift Chronicle of events Major changes made in 1985 Resource mgmt and Safety Separated reporting lines for Resource and HSE mgnt Separated institutions Bravo disaster 1977 Alexander Kielland disaster 1980 First Petroleum Law - Important elements from Safety regulations included in the law - Expanded definition and understanding of safety - See to it principle introduced - An emphasised responsibility put to the operator Major shift in the regulating approach regarding safety, health and environment - Risk and management based approach underscoring the importance of continuous improvement - New system of coordination between enforcing government agencies - Establishment of a new consent system - On-going systematic regulatory development Systematic involvement of stakeholders both in the two partite and tripartite context

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14 Chronicle of events Major changes made in 1985 Resource mgmt and Safety Separated reporting lines for Resource and HSE mgnt Separated institutions More than fatalities Less than 10 fatalities Bravo disaster 1977 Alexander Kielland disaster 1980

15 Ekofisk today Production: Oil bpd Gas mmcfd Water injection bpd Production fields Ekofisk Eldfisk Embla Tor Offshore-employee Total of circa 900 working on site ConocoPhillips /01/

16 Chronicle of events Major changes made in 1985 Resource mgmt and Safety Separated reporting lines for Resource and HSE mgnt Separated institutions More than fatalities Less than 10 fatalities Bravo disaster 1977 Alexander Kielland disaster 1980

17 Industry response to the see to it principle

18 New principle based framework introduced

19 Legal principles and structure in a principle/performance based regulatory regime Legal level Law level requirements Could be: Principle/performance based or Specific/ prescriptive Secondary level pinpoints and elaborates regulatory requirements (Principle/performance based and specific/prescriptive) Non legal level Guidelines, standards and norms. (Recognized standards should be used as an alternative to guidelines)

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21 HSE-regulations for the petroleum activity from /01/

22 Separate regulators approach versus multipurpose regulations with one agency appointed as coordinating body responsible for enforcement Cross industry or Sector specific regulations? HSE Regulations in the Norwegian Petroleum Industry

23 Co-ordinated authorities in the petroleum activity

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25 Co-ordinated authorities in the petroleum activity Climate and Pollution Authority Health Directorate Radiation Protection Authority Emission permits Duty holders Maritime Directorate Coast Directorate Civil Aviation Authority Electricity Board Direct. of Civil Prot. & Em. Plan. Telecom. Meteorology Institute 25

26 A new consent system

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28 A consent is a formalised expression of the PSA s confidence in the operator s capability of carrying out the activity in compliance with regulatory requirements Consents are activity oriented Consent does not imply approval of installations, equipment or methods 28

29 Milestones for formal authority involvement 29

30 Involvement of stakeholders - Stakeholder management How to: Identify the most important stakeholders Develop a system of involvement and collaboration Political commitment Work force participation and collaboration between the parts in working life are essential presumptions in the development of the HSE framework

31 Stakeholder management Political commitment Identify the most important stakeholders Development of a system of involvement and collaboration The Tripartite System Interaction Transparency, trust and dialogue between all involved parties are preconditions for safe activity Work force participation and collaboration between the parts in working life are essential presumptions in the development of the HSE framework

32 Stakeholder management Institutional arrangements The Tripartite System You need institutional arrangements to develop a collaborative culture between the stakeholders

33 The tripartite context Safety Forum Regulatory Forum Regulatory competence Hosted by the PSA Norway - Four regular meetings per year - Working groups reporting to the forum - Responsible for organizing an annual conference All relevant stakeholders are represented Hosted by the PSA Norway - The Regulatory Forum is an advisory forum for discussions related to development of HSE-regulations. All relevant stakeholders are represented "Working Together for Safety" is one of the most extensive collaboration projects initiated within health safety and the environment (HSE) in the oil and gas industry. Participants in the project are representing the associations and the labor unions The authority acts as an observer A training program for the petroleum industry to increase knowledge about policies, laws and regulations. Organized and operated by the industry themselves in collaboration with the research community The authority contributes with capacity 34

34 Supervisory strategy

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36 Regulative approach Command and control Principle based (self) regulation

37 Regulators intervention - strategies

38 Trends in risk level Participants and contributors Acting as a reference group: Employers, unions and government in the "tripartite context" Strategy issues, advise on further development, tripartite context Advisory group Safety forum PSA Norway HSE Professional group The industry Providing data, information and knowledge Responsible for the product Professional experts

39 Trends in risk level - Methodology

40 Collecting data

41 Use of information from RNNP It is perceived and commonly accepted throughout the industry that the data/information should be used where ever relevant Annual updated data and trends over time represents an important basis for decision-making for all stakeholders The results are being presented to the parties in working life (the tripartite system of stakeholders) For the government - Risk based PSA Norway use the information to prioritise and signalize high risk areas and in intervention planning - RNNP-data forms an important basis for input to the ministry in a wide range of governmental matters (parliament reports, declarations aso) - Input to the internal proceedings risk based considerations - Input to PSA Norway's contribution in international cooperation

42 PSA s means of enforcement Expulsion Legal prosecution Suspend operation Order (Notice given 3 weeks in advance) Dialoque and interaction without use of formel means

43 Chronicle of events Recent changes 2001 Statoil partly privatised 2001 Petoro (State direct participation in Oil & Gas) established 2001 Land facilities included in the HSE regulation PSA(NPD) responsible authority 2004 Petroleum Safety Authority established as an independent authority 2007 Statoil and Norsk Hydro merging into one company 2010 End of the dispute with Russia - Settlement of dividing line in the Barents sea

44 Petroleum Safety Authority Norway What kind of competence and capacity do you need to be a sufficient resourced regulator?

45 - The Petroleum Safety Authority Norway is divided into discipline areas with dedicated leaders for each area. - Discipline leaders are responsible for personnel and development of competence. Professional competence

46 - There are 6 main supervision groups, organized in relation to six groups of players. - Each main group has a contact person who is the regular contact for their defined players. - Each main group has a supervision coordinator who is responsible for products and formal decisions. Supervision

47 Regulatory development has the overall responsibility for regulations and agreements, including strategies for formulating, preparation and principles for enforcement. Regulatory development is organized into three areas with the following responsibilities: Regulatory development and legal affairs

48 Laws and regulation on web Thank you!