Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?

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Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Harmonisation of Oil Spill
           Prevention and Response in
                the Barents Sea:
              Reality or Just a Pipe Dream?
                                            Dr Tina Hunter
           Director, Centre for International Minerals and Energy Law, University of Queensland

TC Beirne School of Law: First in Law
Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Presentation Outline

  • Legal regimes for petroleum
    activities
       • International Law
       • ‘Soft Law’
       • National law
  • Oil spill prevention and
    response
       • Regulatory Bow Tie
  • Conclusion: prevention vs
    response
TC Beirne School of Law: First in Law
Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Barents Sea Petroleum Reserves

Source: Ole Gunnar Austvik, Oil
   and Gas in the High North:
   A Perspective from Norway
Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Legal Regimes – International Law
• No ‘international law’ for petroleum
  activities
  • IADC, API, ISO, NORSOK
• UNCLOS – particularly a56 (EEZ),
  a76 (CS), a234
• IMO – eg SOLAS
• Agreement on Cooperation on
  Aeronautical and Maritime Search
  and Rescue in the Arctic
• Illulissat Declaration (Ship Based)
• Other ship based international oil
  conventions
Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Regional agreements

• Regional law – OSPAR
  • Signatories
• Copenhagen Agreement
• Bonn Agreement
• European Maritime Safety
  Agency
• Norway-Russia Cooperation
• Arctic Cooperation through
  Arctic Council
Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Legal Regimes – Soft Law
• Northern Dimension policy
• Arctic Council
                                  March 20, 2014   AOOGG: Systems Safety Management and Safety
                                  Culture

  • PAME Working Group
      • Arctic Offshore Oil and
        Gas Guidelines 2009
      • AOOGG: System Safety
        Management and Safety
        Culture
• SHOULD THERE BE
  BINDING INSTRUMENTS
  FROM AC? or DOES SELF                              i

  REGULATION WORK?
Harmonisation of Oil Spill Prevention and Response in the Barents Sea: Reality or Just a Pipe Dream?
Legal Regimes: just about compliance?
• Objective-based regulation vs prescriptive regulation
    • Never forget the early lessons – Alexander Kielland; Piper Alpha
    • But: ‘Piper Alpha’ process safety superseded by the Macondo/
      Montara ‘well integrity’
•   Safety Culture
•   Standards and Best Practice
•   ALARP/Safety Case vs GOP
•   Risk Assessment and Hazard Identification
•   Inspection not just approval of WOMPS
    • Comparison to building industry
• Norway
    • Risk-based – Identify risk; utilise barriers
• Russia
    • More prescriptive?
    • Use of Risk based assessment of HSE?
PREVENTION                                                         RESPONSE

                                                                                 Emergency
                                                                                 Response -
                 Well                                                           Evacuation, etc
                 design/
                 construction                Monitoring
                                CBL

                                                                                 Well Control
 THREAT:                                                   EVENT                Response Plan
Well Integrity

                         Cement       Well           BOP                         Hydrocarbon
                         Job          integrity
                                      test                                      Spill Response
                                                                                      Plan
                                Barriers

 Adapted ‘Bow Tie’ analysis of prevention of, and response to, loss of well integrity in conventional
                                       petroleum operations
Barrier management in Norway
     Barrierer management process –ISO 31000
                                                                                         Context
                                                                System definition, -description and assumptions
                                                  Regulations, standards, best practices , company specific requirements a.o.

                                     Risk assessment
                                                                             Hazard Identification
                                                        (per area and for all relevant potential internal/external hazards and accidents

                                            Etablish barrier functions, -elements and performance requirements
           Communicate and consult

                                                        (per area and for all relevant potential internal/external hazards and accidents

                                                                                                                                                              Monitoring and review
                                                      Perform risk analysis and safety related studies/analysis
                                          (What can happen, how likely, what is the consequence ? Asses and compare with design-/acceptance criteria)

                                          Asses and evaluate risk (Risk evaluation), incl. sensitivities , uncertainties
                                                                           Establish the risk         picture
                                     Risk Treatment
                                            Need for additional/ more effective barriers/risk reducing measures ?
                                                                                                                                                        YES
                                                                                                  NO
                                               Establish specific startegy and specific performance requirements

                                           Document process /results from                                    Specify perfomance
                                              Risk evaluation and Risk                                        requirements into
                                                   Treatment into
                                                                                                       Performance standards
                                                          Strategy
                                                                                                      Function/integrity/vulnerability
                                              Specific per barrier/event/area

                                                                                   O. Thomassen, PSA                                                                                  PTIL/PSA
Barrier management in Norway
Barrierer Management                                                                                                       Technical
                                                                                                                            barrier elements
                                                                                                                           •Containment
                                               Context                                                                     •Firedetection
                            System definition, -description and assumptions
                            Regulations, standards, best practices , company                                               •Ventilaton/HVAC
                                       specific requirements a.o                                                           •Gasdetection
                                                                                                                           •ESD
                            Risk assessment                                                                                •Igntion Source control
                                         Hazard Identification                                                             •Drainage                                 Organisational
                                 (per area and for potential internal/external
                                                                                                                           •Flare and relief                          barrierelements
                                            hazards and accidents)                                                         •Passive fire protection                  •Competence
                                                                                                                           •Active firefighting                      •Communication/
                                  Etablish barrier functions, -elements                                                    •Emergency power                          •Work practice
  Communicate and consult

                                     and performance requirements                                                          • etc….                   Technical       •Procedures

                                                                                       Monitoring and review
                                  (per area and for all relevant hazards and                                                                                         •Work environment
                                                  accidents
                                                                                                                                                                     •Man / machine
                                                                                                                                                                     •Control,check,verify
                                 Perform risk analysis and safety related                                                                                            •Documentation
                                                 studies                                                                  Operational                                •Resources, Capacity
                                                                                                                          barrierelements                            •Work load / Time
                                                                                                                                                         Organisational
                                                                                                                                                                     •Planning
                                          Asses and evaluate risk                                                                               Operational
                                                                                                                          •Design and arrgt.                         •Roles and responsebility
                                             (Risk evaluation)
                                                                                                                          •Maintenance
                                           Establish risk picture
                                                                                                                          •Operations and activities
                                                                                                                          •Modifications
                            Risk Treatment                                                                                •Changes/ MOC
                                                                                                                          •Deviation handling
                                   Need for additional/ more effective
                                    barriers/risk reducing measures ?
                                                                                                                          •Work processes
                                                                                 YES
                                                             NO

                                  Establish specific barrier strategy and
                                   specific performance requirements

                                                                                                                      Plant specific barrier                     Performance requirements
                                                                                                                        Strategy (per area)                      Performance standards

                                                                                                               O. Thomassen, PSA                                                        PTIL/PSA
LEVEL 1
                                                                                ISO 31000
     Regulatory Bow Tie
Risk management
-main principles                                  Guideline on principles and implementation of risk management
                                                                             (functional)

                                                                                                                                           LEVEL 2
Safety barriers                  ISO 13702
and arctic offshore                                            ISO 19906              Well integrity                     Risk assessment
                                 ISO 10418
design                                                        Arctic offshore         ISO proposal                        ISO 17776
                              Mitigations of fires              structures          NORSOK D-010
-main principles                and explosions

                                                                                                                                           LEVEL 3

                                                Technical safety                      Well integrity                     Risk assessment
Safety barriers
                                            NORSOK S-001                            NORSOK D-010                        NORSOK Z-013

                                                                                                                                           LEVEL 4
                   Functional safety of E/E/PES
                                                                                                  Drilling facilities
                         IEC 61508
                                                                                                NORSOK D-001
                   Instrumented safety system
                          IEC 61511
                                                                                                       Production
                           Ventilation
                                                                                                 Riser, X-mas tree,
Safety                   ISO 15138
                                                                                                        SSCV
barrier
elements
                     Ignition source control
                         IEC 60079
                          IEC 61892                                                                     DWCO
                                                                                                  Riser, BOP, Mud
                         IEC 80079
Barents 2020
  purpose of this project is to recommend HSE          The seven selected topics from phase 2 which are
 dards for common Norwegian - Russian                  addressed in this report are:
  ication in the Barents Sea, for safeguarding
        • Baseline Offshore HSE
ple, environment and asset values in
                                                        1
                                                            Recommend the basic list of internationally recognized
nection with oil and gas activities, including              standards for use in the Barents Sea
          Standards
transportation of oil and gas. The underlying
                                                            Recommend standards for design of stationary offshore
 mption is that                                         2
               • petroleum
                  Use of NS  operations
                                  system  in theas          units against ice loads in the Barents Sea
ents Sea shall be at least as safe as those in the
 th Sea.          baseline                                  Recommend standards for Risk Management of major
                                                            Hazards, such as Fires, Explosions and Blow-outs on
                                                        3
 Phase 1 of the• project
                  Norsklasted
                            PSA from October                offshore drilling, production and storage units in the
                                                            Barents Sea.
7 to October 2008. The results of phase 1 were
        • Harmonisation of Laws
umented in 5 “Position Papers”. The position
                                                        4
                                                            Recommend standards for evacuation and rescue
                                                            of people from ships and offshore units, including
ers provided the basis for further work in phase            standards for rescue equipment
               • Use of
  sting from November    2008NSto system
                                   March 2009,  as
 lting in the special topics prioritised for further        Recommend standards for working environment and
                  baseline                                  safety related to human performance and decision
 y in expert working groups in phase 3.                 5   making (Human factors) for operations in the Barents
 The selection BUT
                of topics for further work was              Sea
 ied out in close cooperation between the
        • Regulation must be
 wegian and Russian participating organisations.        6
                                                            Recommend safe standards for loading, unloading
                                                            and ship transportation of oil in the Barents Sea – to
                                                            minimize risk of accidental oil spills
          contextual – best
  process was constructive and quick, based on
h Russian and Norwegian proposals. There was                Recommend standards for operational emissions and
                                                        7
          practice is not abstract
 agreement between the parties that the selected            discharges to air and water in the Barents Sea

 cs are among the most important issues which
          but situational
d to be addressed in relation to safeguarding oil      This report provides the findings and
  gas operations in the Barents Sea. Still, some       recommendations from these seven expert groups.
posed topics were left out, not because they are           Group 1, also called RN01 (Russian –
mportant, but because they are addressed by            Norwegian expert group number 1) summarizes
But…

       What if there is a loss of well control ?
Oil Spill response
• Response as close to
  operation as possible                                             Norwegian Equipment Depots
                                                                                          Svalbard
  • Booming and Skimming         NORWEGIAN COASTAL ADMINISTRATION

• Norwegian response                                                  NCA DEPOTS                   Tromsø

  • Government, Private and
    municipal contingency                                                                                   NOFO DEPOTS
                                                                                                            (Norwegian Clean Seas Organisation)
    system                                                                                                   MAJOR PRIVATE DEPOTS
                                                                        Trondheim
  • All available resources in
                                                            Norway
    society used to combat         Bergen
                                                                     Oslo
    major spills
                                 Stavanger
• Satellite monitoring                                                              Department for Emergency Response

• Graded contingency plans
  • National, regional, local
• extended to Russian
  areas ?
Responding to Oil Spills
              not just oil spill response
• Emergency Response
  • Control and Mitigation of fires and explosions on offshore
    production installations ISO 13702; NORSOK S-001
       • Adapted for Barents sea
       • Need for containment of HC
  • Rescue and treatment of injured
       • Ad

• Well control response
  • Mobilisation of resources
       • Human, technical,
  • Capping stack – Wild Well Control
       • Closest – Aberdeen
Conclusions
• Prevention is better than response - WELL INTEGRITY
  CRITICAL
• Norwegian System provides excellence in safety (HSE) and
  spill response
• Legal Framework predicated on objective-based regulation
• Need to be cognizant of Bow Tie –
  • Barriers
  • Responses
• Barents 2020 provides framework for prevention and response
  but..
  • NEED FOR HARD LAW and EXPERTISE
• Greatest challenge well control response?
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