Operational Risk Management (ORM) Update. Julia Swindle IADC James Hebert Diamond Offshore Jason Wilson Transocean

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1 Operational Risk Management (ORM) Update Julia Swindle IADC James Hebert Diamond Offshore Jason Wilson Transocean

2 IADC ORM Taskforce Established in early 2014 at the request of Executive Committee Participation by drilling contractors and operators based in US and Europe Objective establish an IADC position on Operational Risk Management Output Position Paper with a recommendation for next steps 2

3 Operational Risk Management Safety is more than managing slips, trips and falls ORM focuses on the management of major hazards Successful companies do it well It is a license to operate ORM is more than Safety 3

4 ORM What is it? The identification of major hazards, and prevention / management of their associated risks, to promote operational and asset integrity Applies to the complete range of potential major hazards in Upstream operations Proactive and dynamic management of control barriers 4

5 ORM vs. Occupational Safety Catastrophic Events Operational Risk Occupational Safety Multiple fatalities Single fatality Recordable injury First Aid Case Near Hit / Miss 5

6 ORM vs. Occupational Safety High Consequence Operational Risk Management Personal / Occupational Safety Low Low Frequency High 6

7 ORM and Process Safety Process Safety derives from chemical industry Fire, explosion and accident chemical releases Relevant to a well-defined consistent process Defined by OSHA within Process Safety Management legislation ORM is appropriate to the larger set of major hazards associated with Upstream operations Process Safety is considered an important component of ORM 7

8 Major Hazards Defined within IADC HSE Case Guidelines Multiple fatalities or permanent total disabilities Extensive damage to structure of installation Massive effect to the environment Examples: Loss of well integrity Fire Explosion Loss of vessel stability Loss of water-tight integrity Mooring / station-keeping failure Helicopter crash Terrorism & piracy Epidemic diseases 8

9 Management System Relationship Management Review ACT PLAN Policy Policy Statement Strategic objectives Goals / targets Monitoring CHECK DO Planning Operations 9

10 Management System Relationship Management Review Monitoring ACT CHECK Policy PLAN Planning DO Hazard identification Risk Assessment Safety critical positions Safety critical system Safety critical tasks Inherently safer design Training needs analysis Interface arrangements Combined Ops / SIMOPS Emergency Response planning and preparedness Operations 10

11 Management System Relationship Management Review Monitoring ACT CHECK Policy PLAN Planning DO Knowledge, skills and abilities Asset integrity Barrier management Safe operating limits Fit for Purpose Management of Change Performance Standards Safety critical tasks Performance reporting Incident reporting Emergency Response Crisis management Operations 11

12 Management System Relationship Management Review ACT PLAN Policy Competency assurance Assurance / verification of barriers / controls vs. Performance Standards Auditing Performance monitoring Monitoring CHECK DO Planning Operations 12

13 Management System Relationship Management Review Policy Performance analysis Improvement Plans Resource allocation ACT PLAN Monitoring CHECK DO Planning Operations 13

14 This is not new to IADC Surface BOP Guidelines And, we are not alone Advanced Rig Technology Comm. Drilling Manual Maintenance Committee Master Service Contract Deepwater Well Control Guidelines HSE Case Guidelines HSE Committee. Managed Pressure Drilling and Underbalanced Operations Conf. Rig Moving Committee 14

15 Close Conclusions Operational and asset integrity Management of major hazards Low frequency / high consequence events ORM is not new we have many of the tools Next steps Finalize ORM Position Paper and engage Committees and membership Form ORM Committee Develop an ORM Guideline document 15

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