SPE Subcontractor Management: A Key Safety Issue in Geophysical Operations

Transcription

1 SPE Subcontractor Management: A Key Safety Issue in Geophysical Operations Ian M Threadgold, SPE, Threadgold Safety Management

2 Slide 2 Agenda Introduction Nature of Seismic & subcontractor issues What we did A workshop Outcomes from the workshop Barriers Recommended practices Guidance document Conclusions

3 Slide 3 Introduction Historically contractor rates higher than company; Believed subcontractor higher than contractor; Industry doesn t consistently breakout subcontractors exposure; Geophysical projects typically operated under prime contractors management system; Distributed nature of seismic can increase the risk. (OGP 2011s, 2012)

4 Slide 4 Distributed nature of seismic Multiple vessels of multiple types: seismic, chase, resupply and crew change (the latter 3 types typically subcontracted) Large geographic area being covered Large footprint Marine (After OGP 448, 2011)

5 Slide 5 Distributed nature of seismic Large geographic area being covered (hundreds of sq. km.) Land Remoteness, off road situations Re-supply of fuel, water, provisions (typically subcontractor) Numerous dispersed teams kms apart at any point in time e.g. survey, line clearance, drilling, line layout, shot loading, shooters, recording, line pick up

6 Slide 6 Subcontractor issues Sometimes join a project late, not benefitting from start-up meetings; Operating remotely, not always involved in toolbox meetings; Can be operating at periphery of the operation, with minimal supervision; Sometimes working as lone workers; Often contracted to undertake non-core activities which may be higher risk (e.g. heavy transport, security, mine clearance, etc.); Will bring additional risk and exposure to an operation without proper integration into the project.

7 Slide 7 Example of a SC issue A seismic company hired a subcontractor for the drilling portion of a project. A fatality occurred midway through the drilling phase of the operation. Upon investigation, it turned out that the subcontractor had been preapproved by the seismic company as a Survey provider but NOT as a Drilling provider. It was found that procedures from the subcontracted company were all Survey related and not Drilling related. Because the subcontractor was on the Approved list, they were hired to perform the work although there had not been any audit of the new service (Drilling) they provided. Many standard procedures were overlooked because the prime contractor assumed the subcontractor had been properly vetted because they were on the Approved list.

8 Slide 8 The solution OGP & IAGC hold 2 day forum every 6 months Voted highest priority item by both memberships Workshop to address the issue Workshop Agenda What is subcontractor management (SCM)? Categories of people at the worksite UK September 2009 Approx 20 personnel from: E&P companies Geophysical contractors Consultancies What are the barriers to good SCM? What are recommended practices to improve SCM across industry?

9 Slide 9 Applicable OGP documentation Guidelines for the Development and Application of Health, Safety OGP Hirst and 2012 Environmental Management Systems (1994; currently under revision) OGP 423 HSE management guidelines for working together in a contract environment (2010, updated from 1999) Geophysical Operations OGP 432 Managing HSE in a geophysical contract (2009, updated from 2001) Drilling Projects / Construction Production Operations Marine Operations Diving Operations TBD TBD TBD TBD TBD

10 Slide 10 Some definitions Subcontractor is defined as An individual or company performing some of the work within a contract, and under contract to either the original client or contractor (OGP 423 and 432); Subcontractor Management is A process by which subcontractors, as defined here, are integrated into an operation in a manner which ensures they meet operational, financial, health, safety and environmental goals Process includes: capability assessment, selection, contractual agreements, interface processes, risk management, audits, inspections and supply chain management tools such as metrics, close-out meetings, supplier relationships

11 Slide 11 People at a geophysical worksite Visitors Vendors Casual service providers Client representatives Direct Subcontractors Indirect Subcontractors E&P Can company be direct staff or consultants, contractors, May not should are be often be governed A supplier by of prime a very regarded casual, under irregular the or subcontractors product, or performs untested visitors heading to an with a respect multi-client management service office or to integration site, within system, (e.g. a but courier sometimes the contractors called must in HSE at service). be aware Important short management notice. of A system. process it and Required to have managed a vendor needs to to be work place within to sphere selection according process. recognize of contractor s the dangers to it. MS, that even they if they might have bring. responsibility to monitor and comment on it

12 Slide 12 Direct subcontractors A company or person providing services (but sometimes products) to the prime contractor s agreed scope of work via a contractual relationship; Subcontrs must be subject to the provisions of a Management System; Management Systems must be interfaced; A contract or master services agreement must be in place which defines: HSE standards, pertinent procedures, processes, KPIs, provision of equipment, competent personnel, training, records etc, Subcontractors must be assessed in terms of risk using agreed processes

13 Slide 13 Indirect subcontractors Outside a normal tendering and selection process Client imposition, they only want one prime contractor Political will requiring national entities be used e.g. armed forces for security, logistical support Regulations requiring local contractor Local union influences Can lead to additional risks: Sub-sub contracted resources used without approval; Unplanned language differences; Personnel with different agendas/loyalties; Personnel with no HSE training. Indirect subcontractors must be managed in the same way as direct; Under a binding contract or MSA and subject to provisions of a management system.

14 Slide 14 Potential barriers to good SCM Approx 25 barriers to good subcontractor management identified during the workshop; Along with potential mitigations for each; Arranged into three categories: A. Selection / Contracting B. Management & implementation C. Local considerations A review and clear understanding of these barriers will help a company improve it s subcontractor management performance.

15 Slide 15 Implementing SCM Checklist of 15 questions developed to help ensure successful implementation of a subcontractor management process, e.g.: How long is the supply chain? What criteria were used to define pre-qualification requirements? By no means all-inclusive, but a good place to start; Will open areas to investigate in ensuring process is as comprehensive as possible.

16 Slide 16 Recommended Practices for SCM Approx thirty recommended practices developed Divided into phases: Tendering and selection Detailed planning & mobilization Operations Example: During 2011, significant civil unrest occurred in several countries, necessitating declaration of Force Majeure, and eventual evacuation of personnel (and sometimes equipment) from an area. In later review of lessons learned from these events, numerous examples were heard of seismic operations where subcontractors and other national staff provided the only reliable means of on the ground assistance in an evacuation scenario.

17 Slide 17 Guidance Document Conclusions: It is hoped that the recommended practices will improve safety performance within the subcontractor workforce in the geophysical industry and beyond; The oil and gas industry, should record subcontractor safety statistics and exposure separately from the contractor workforce.

18 Slide 18 Acknowledgements / Thank You / Questions The contributions from all the workshop participants and document reviewers are acknowledged, and to the OGP and IAGC for supporting the collaborative efforts.