Wells Expert Committee Bulletin

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COMMITTEE UPDATE DECEMBER 2016 Issue no. 2 Wells Expert Committee Bulletin The Global Industry Response Group (GIRG) was created in July 2010 with a remit to identify, learn and apply the lessons of Macondo and Montara as well as other significant incidents and near misses in the Industry. GIRG, an alliance of over 100 technical experts and senior Industry leaders, focused on three areas; Prevention, Intervention and Response. The Wells Expert Committee (WEC) was established in order to improve drilling safety and reduce the likelihood of well control incidents and to address GIRG recommendations on the first of these areas; Prevention. Two other groups were formed to manage Intervention and Response, and these groups worked separately, but always in parallel with, the WEC. A remit with renewed relevance Since then, the WEC has been working hard on several aspects of Well Control Incident Prevention and significant progress has been made on industry s call for improved safety and performance of critical well operations. Following recommendations from GIRG, the WEC developed and implemented strategies to address these recommendations by leveraging a global coalition of well operators and working closely with contractors, other industry associations and regulatory bodies. Going forward, the WEC is positioned to assess and share global well control incidents and learnings with the broader industry and to leverage that information to help develop and implement strategies across the industry to address key issues: assess and share global well control incidents and learnings improve existing and establish new technical and operational practices for the overall governance of well constructions works on training and competence of well operations personnel gather data on BOP performance (BOP Reliability JIP) monitor and influence international standards for wells operations.

WEC Bulletin No. 2 December 2016 2 Adapting to changing needs In 2016, the WEC Members reassessed industry needs to support operations throughout a well s life-cycle and risks to our overall license to operate. It also refreshed the committee and subcommittee s Terms of Reference and Business Plan. Subgroup main strategic focus for 2017 1 Well Control Incidents Subcommittee Strengthen collaboration and alignment with industry groups to improve industry ability to learn from well control events 2 Competency and Training Subcommittee Leverage global incident learnings to identify efforts to improve industry well control technical and non-technical competency, including human behaviours 3 Well Control Systems Subcommittee Build on the success of BOP Reliability Industry effort to address the reliability and effectiveness of entire well control systems 4 International Well Standards Network Maintain awareness and promote alignment of critical well control and well integrity industry standards 5 Subsea Well Response and Source Control Subcommittee Provide a forum for IOGP Members to share knowledge and assess industry s current subsea well response and well source control capabilities 2

WEC Bulletin No. 2 December 2016 3 1) Well Control Incidents Subcommittee: Update on safety reporting The updated WEC charter has learning from incidents at its core. The WCI SC is a critical enabler in identifying underlying causes of well control events and will allow WEC to achieve its Prevention goals. Learning from well control incidents All E&P organizations can improve their approach to risk management by learning from events and incidents. The Well Control Incident (WCI) Subcommittee put a system in place through which well control incidents could be shared amongst IOGP Membership and with the wider industry. Today, IOGP Member Companies can access descriptions of well control incidents relating to a range of well operations both onshore and offshore throughout the world. Many of the incidents are shared with the wider community through the IOGP Safety Alerts system. Anyone can register here to receive the latest safety alerts by email: http://safetyzone.iogp.org/safetyalerts/register.asp? scriptname=incidents Sharing well control incidents allows operators to learn from the experiences of their peers. Analysis of these types of events allows the industry to identify broader areas that could benefit from further industry guidance or training enhancements. Identifying learnings for the broader industry WEC organized a series of workshops aimed at reviewing the voluntarily-submitted well control incidents and identifying high-level, cross-industry learnings. The workshops adopted a structured approach to analysing the well control incidents, focusing on the key barriers that had failed. The result of the workshops was a thematic report highlighting the main lessons, Well Control Incidents Review (Report 574r). Key themes: Competence and human factors Competence and human factors continue to play a significant role in well control incidents. Implementing effective CRM, supporting decision-making, and supervisory capability remain key themes (Report 502) Procedural discipline Recent incidents highlight the importance of creating a culture of procedural discipline to address both quality and execution. Risk management The risk management process often unsuccessfully identifies hazards, assesses risks or puts in place adequate controls. This was particularly evident in non-routine operations. Responding to signals Confidence in sensors and alarms is imperative. On occasion, there was an inappropriate response to weak signals. Cognitive bias could be inferred to have been a factor in several incidents. Calibration of safety critical sensors needs to be correct and trusted. The role of the BOP The BOP played an important role in preventing initial influxes of hydrocarbons into the well bore from escalating to an even more significant event. When the BOP was actuated, it performed as expected. The incidents emphasize the importance of ensuring that the BOP is fit-for-purpose and well maintained.

WEC Bulletin No. 2 December 2016 4 Learning the lessons IOGP, through WEC and its other committees, is using the learning gained from submitted well control incident reports to help focus activities towards addressing the most significant factors in well control incidents. Another set of learnings, e.g. human factors and procedural discipline, are relevant to other activities within the industry. WEC collaborates with other IOGP committees to deliver solutions which will be of benefit across the whole industry. Establishing learning partnerships To reduce repeat incidents, organizations should ensure that the right person has access to the right information at the right time. It is a challenge to link well control incident learnings with individuals. The well control incident reports accessible through the IOGP website only have value when they are downloaded and used. These uses may include training or toolbox talks, safety moments, raising awareness of a specific issue, or addressing an organization s management system and processes. The WEC is working with training organizations to develop products, based directly on submitted incidents, designed to be used in a classroom environment. It aims to ensure that every individual who undergoes well control training gains from the experience of the industry. 4

WEC Bulletin No. 2 December 2016 5 2) Competency and Training Subcommittee: Advances in the well control training The Training, Competency & Human Factors Task Force was transitioned into the Competency and Training Subcommittee reflecting the importance of competence and training to well safety. One of the GIRG recommendations was a promotion of human competency management systems to ensure individual staff and management teams always have the skills they need. The Competency and Training Subcommittee is successfully achieving this task through their deliverables. The second edition of IOGP Report 476, Recommendations for enhancements to well control training, examination and certification, was published in August 2016. It expands the understanding of role-based training, and places more focus on well intervention personnel and activities to improve well control preparedness and human performance. IOGP Report 476: www.iogp.org/pubs/476.pdf The Well Control Institute, along with IADC and IWCF are currently engaged in developing strategies to operationalise the recommendations of 476. They are looking to harmonise the approach taken by Well Control Training providers and certification bodies and seeking to align operators and contractors on enhancing and standardising well control training and certification requirements.

WEC Bulletin No. 2 December 2016 6 3) Well Control Systems Subcommittee: Advances in the well control equipment follow up The BOP Reliability TF transitioned to the Well Control Systems Subcommittee with increased scope beyond the BOP to include other well control system components. GIRG recommended to improve reliability and efficiency of blow out preventers (BOPs). In response, IOGP and IADC launched Phase I of the BOP Reliability JIP in January 2016: a unique collaborative programme between drilling contractors, equipment manufacturers and operators to gather, share and analyse high-quality BOP performance data. The improved data gathering is supporting OEM decisionmaking on product improvement and new product development, consistent with API Standard 53. In September 2016, IOGP and IADC launched Phase II of BOP Reliability JIP, with increasing focus on collecting surface BOP data in addition to subsea BOPs. Commenting on Phase II, JIP Project Co-ordinator Steve Kropla of IADC says, It will provide further opportunities to improve the quality of the database and provide Members with access to key learnings through JIP collaboration. Participants will obtain industry-wide BOP defect and failure knowledge, which should lead to improved BOP safety and integrity in their own operations. Ongoing subcommittee work includes two new reports commissioned as a direct result of data gained from the JIP: Root Cause Failure Analysis (RCFA) on BOP systems, to be finalized by the end of 2016 Guidance on the prevention of hydraulic leaks on BOP hoses, tubing and fittings to be finalized by the end of 2016 7 CONTRACTORS (Diamond Offshore, Ensco, Maersk Drilling, Noble, Pacific Drilling, Seadrill and Transocean) Joined Phase I of the JIP 10 OPERATORS (Anadarko, BP, Chevron, CNOOCNexen, Kosmos, ExxonMobil, Petrobras, Shell, Statoil and Total) 3 MAJOR ORIGINAL EQUIPMENT MANUFACTURERS (Cameron, GE Oil & Gas and NOV) Joined Phase II of the JIP 8 DRILLING CONTRACTORS (Dolphin, Northern Offshore, Ocean Rig, Queiroz Galvão (QGOG), Rowan, Songa, Stena and Vantage) 1 OPERATOR (Hess) 6

WEC Bulletin No. 2 December 2016 7 4) International Well Standards Network: A new approach to standards In response to GIRG recommendations, the International Well Standard Network: recognizes existing internationally and nationally agreed standards as a baseline for industry improvements monitors the development critical well control and well integrity industry standards that can be used to prevent high consequence events promotes a culture that fosters adherence to standards and procedures. This network s efforts will enable IOGP and its Membership to promote effective collaboration between industry regulators and standards bodies. Recent Task Force/Network achievements include publication of: IOGP Report 485, Standards and guidelines for well construction and well operations Well collision avoidance factsheet.

WEC Bulletin No. 2 December 2016 8 5) Subsea Well Response and Source Control Subcommittee assessment for future response In an effort to provide the industry with a forum through which its capabilities in the areas of Subsea Well Response and Source Control can be discussed and progressed, IOGP through WEC has taken a major decision to form a new subcommittee. The formation of a new Subsea Well Response and Source Control Subcommittee will allow WEC to support the industry in ensuring that, should an event occur, the hardware and systems will be available to respond effectively. The new subcommittee s first task will be to undertake a review of the subsea well response and source control capability (equipment, resources and services) available worldwide and identify any gaps in the provision. Making our Industry safer WEC s latest structure update and 2017 focus areas has positioned the group to continue to deliver tangible benefits in terms of both safety and efficiency in the coming years, leveraging the successes achieved previously through delivery of the GIRG recommendations. Future WEC Bulletins will further highlight our work and our continuing commitment to efficient and reliable, but above all, safe, operations. Until next time Registered Office City Tower 40 Basinghall Street 14th Floor London EC2V 5DE United Kingdom T +44 (0)20 3763 9700 F +44 (0)20 3763 9701 reception@iogp.org Brussels Office Bd du Souverain,165 4th Floor B-1160 Brussels Belgium T +32 (0)2 566 9150 F +32 (0)2 566 9159 reception@iogp.org Houston Office 16225 Park Ten Place Suite 500 Houston, Texas 77084 United States T +1 (713) 338 3494 reception@iogp.org www.iogp.org Images used courtesy of: Gonzalez Thierry/Total (p1) Dazman/iStockphoto (p4) 2012 BP PLC (p5) iznashih/istockphoto (p7) A company limited by guarantee. Registered in England No. 1832064 VAT No. 241 240 903