Learning Lessons from Incidents - BP’s Integrity Management Standard OPERA Risk Management Seminar 27 March 2007
“We Never Have Major Accidents” !
“I have never been in any accident of any sort worth speaking about…. Nor was I ever in any predicament that threatened to end in disaster of any sort. I am not very good material for a story” Veteran Sea Captain interviewed about his many years at sea in 1907. E J Smith Captain of the Titanic
“We Never Have Major Accidents” !
“I have never been in any accident of any sort worth speaking about…. Nor was I ever in any predicament that threatened to end in disaster of any sort. I am not very good material for a story” Veteran Sea Captain interviewed about his many years at sea in 1907. E J Smith Captain of the Titanic
Titanic Titanic1912 1912
Today’s Presentation
• Integrity Management Challenge around the world • Safety of Plant and People • Integrity Management Incidents • Managing Plant Process and People • Group Operating Management System • The Integrity Management Standard • Engaging People in IM - IMagine the Difference you can Make • Some thoughts on applying lessons successfully
Integrity Management Challenge around the world BP is an oil, gas, petrochemicals and renewables company We employ around 96,000 people We have operations on 6 continents and in over 100 countries
…market capitalization $204 billion (as at Feb 2007) …annual revenues/turnover of $262 billion (in 2005) …one of the 10 largest companies in the world …with approx 28,500 service stations worldwide …serving 13 million customers every day
BP’s heritage
What we do BUSINESS SEGMENTS
RESOURCES Exploration & Production
CUSTOMER FACING Gas, Power & Renewables Integrated Supply & Trading
Refining & Marketing
(including Acetyls & Aromatics from Petrochemicals)
Our global presence
Oil Gas Chemicals Refining
Where our people are located BP Sunbury ~3500 E&P R&M GP&R
Middle East, Caspian & Russia
2,950 (100,000+ TNK-BP) Europe
North America
42,600
39,200 Asia & Australasia
11,600 Africa
3,500 Latin America & Caribbean
4,500
Safety in Operations 2006 To ensure that everyone in and around our operations is always safe To ensure that plant contains hazardous materials (hydrocarbons and toxic materials) securely and sustainable
Workforce Fatalities no n r oa d r ela te d
30
r oa d r ela te d
25 20
Oil Spills greater 1 bbl
15 10 5
1200
0
1000 1 999
2 000
200 1
2002
2003
20 04
2005
2 006
800 600
Recordable Injury Frequency 1.6 1.4 1.2 1 0.8 0.6 0.4
400 200 0 1999
2000
2001
2002
2003
2004
2005
2006
Safety of People and Plant •
BP has made significant progress in safety performance as measured by injury frequencies
Piper Alpha Disaster 1.8 1.56 1.6
•
•
•
In addition, a number of safety innovations have been introduced – e.g. Golden Rules BP also had recognised the need for, and benefit of, a consistent approach to Group risks – e.g.. the Driving Safety Standard, introduced in 2004 Key Group Mandatory Operational Standards are
1.44
Safety in Performance Contracts
1.4 1.22
1.2
1.18
1.2
1 0.84 0.8
ASA 0.6
BP Amoco Merger
0.6 0.44 0.43 0.43 0.4
− Integrity Management − Control of Work − Driving
0.2
0.39 0.27 0.25 0.19
Clear Vision Introduced
0.13
Golden Rules of safety 0
0.10 0.09 0.08
Why is Integrity Management so important?
Flixborough UK 1974 27 fatalities
Phillips Pasadena US 1989. 23 fatalities Piper Alpha UK, 1988,167 fatalities
Olympic Pipeline, Bellingham, June1999
Belgium, July 2004
Buncefield Oil Depot – Dec 2005
Thunder Horse PDQ Listed 21 degrees, now re-levelled
Alaska Spill 2006
the 3Ps- Managing Plant Processes and People Three layers of protection to reduce the potential for major incidents and losses: − plant – engineering hardware, control systems, physical layouts − processes – management systems to identify, control and mitigate risks, and drive continuous operational improvement − people – capability in terms of leadership skills, relevant knowledge and experience, and the organizational culture they create ‘Hard barriers’ are more reliable than ‘soft barriers’, but all ultimately rely on people
hazard reduction
hazard
‘hard’ barriers
‘soft’ barriers
accident or loss
The role of leadership
HSE & Ops Performance & Risk
Plant Integrity
OMS & Process for Management
Leadership
People & Culture
Evolution of BP HSE Management Systems & Management Interventions / Group Standards The Journey:
ISO management systems: 9001 (Quality),14001 (Environment), 18001 (OH&S)
• gHSEr has served us well delivering personal safety, • A series of interventions have been used to supplement gHSEr in response to incidents, audit findings and need for further detail • The BPMF and Code of Conduct provide context for a fundamental review s E m S e H t f s y o s t t n n e e m m e e v g o r a p n a m I m
BP Management Interventions MAR
PSIM
Golden Rules
Driving Safety
Specific General expectationsbased
Requirements oms (BP)
Scoring system checklist ISRS Nothing formal
(commercial )
gHSEr (BP)
OIAS (BP)
ASHEE (Amoco)
OES
Group Standards • Integrity Mgt. • COW / Driving
Green Book
OMS Framework
Operating Management System
OMS Continuous Improvement
Building Blocks of Operating
Sustainable Competitive Advantage
c Neutral i Business Value u B Destruction
Business specific Excellence Efficiency
Basics & BP Requirements Legal Compliance
Catastrophic Loss
Significant Risk Mitigation
Essentials
Principles Measurement is used to understand and sustain performance
Our leaders exhibit visible, purposeful and systematic leadership and are respected by the organizations they lead
We have fit for purpose and agile organizations staffed with competent people.
Our operations are continuously optimized to improve performance
We deliver what is promised and meet the expectations of our key stakeholders
Staff at all levels of our organization understand and manage risk
We document and rigorously follow procedures for safe and effective operating
Our plants, facilities and assets are fit for purpose throughout the
47 Sub-Elements of Operating Results
Privilege to Operate
Metrics & reporting Assessment & audit Performance review Budget management
Regulatory compliance BP requirements Community & stakeholder relationships Customer focus Ethics/Social responsibility
Leadership
Risk
Leadership and accountability Operations strategy & policy Planning & control Resources & implementation Communication & engagement Culture
Risk assessment & management Safety Process safety Health Industrial hygiene Security Environment Crisis management & emergency response
Organization
Procedures
Organization People & competence Operating discipline Organizational agility Organizational learning Working with contractors
Operating procedures Management of change Information management & document control Incident management Permit to work
Optimization
Assets
Plant optimization Energy efficiency Feedstock & Product scheduling & inventory Quality assurance Technology
Plant integrity Reliability Maintenance & turnarounds Facility design & construction Projects & Operations integration
What is the Integrity Management Standard? The Integrity Management (IM) Standard is a BP Group functional standard that outlines accountabilities, practices, procedures, and competencies meant to ensure the physical and operational integrity of BP’s facilities. The overriding objectives are to eliminate uncontrolled releases and prevent equipment or infrastructure failures so as to avoid serious harm to people, the environment and BP assets. It contains 10 Elements , each dealing with a critical aspect of facility design, operation, and maintenance. To whom does it apply ?
……all wholly owned and operated BP Business Units, projects, facilities, sites and operations…..and BP shall endeavor to ensure JVs and contractors adopt the Standard When does it become operational ?
IM Standard Programme 2003-2009 Appraise • Loss of
Select • Review of existing
Containment identified as Group Level Risk
standards and documents carried out
• Gaps identified • Management Framework identifies IM as a Group Functional Standard
ETPs EAs MAR
• New Draft IM Standard written by cross–segment team
• Continuing Integrity Incidents occurring around Group
• Series of Crosssegment workshops planned and carried out to identify costs and benefits
• Metrics proposed
2003 2004 Functional Analysis
Function/Segment Consultation
Define GROUP By Q1 2005 • • Finalise and issue Define Stage IM Standard • • Issue Group IM Guidance document • Agree Metrics • Create Communication • strategy and plan. Ongoing • Supporting material developed to plan throughout 05 • SEGMENTS By end 2005 latest • Develop implementation Guidance • • Identify gaps to meet IM Standard • Identify business Segment costs andPlanning produce with implementation plans Functional Support • Input budgets to annual business
Execute
Operate • Ongoing validation of
Issue Execute Phase IM Standard
Phased execution based on business priorities within compliance period
Segments/ BUs to close gaps versus plan
Group and Segments to monitor and report progress against plan By end 2008 all applicable locations to be
risk/benefits assessment based on actual performance
• Compliance with standard periodically reviewed via Internal Audit
• Effectiveness routinely reviewed and embedded in local and central performance mgmt
• Performance mgmt system core part of standard governance process
Dec 05 Jan06 Dec08 •Jan Review09 and update of In compliance Segment/ BU Implementation
Exemption issued, or Closed
Segment/BU Standard by Function Operations
Components of the Group IM Standard
Major Accident Risk
PSIM Standard
And ETPs
IM Accountabilities (EAs, SPAs)
Risk
y l t n o s i o t c m u – d e d r r a y d c n n a e t u s q e r M I f
MAR measures – mostly consequence reduction
Group Integrity Management Standard IM Incident : Any incident where the root cause would be addressed by the IM Standard and there is actual or potential harm to people or the environment including loss of primary containment or failure of an engineered system.
Major Accident Risk Engineering Technical Practices
PSIM Standard
IM Accountabilities (EAs, SPAs)
1. IM Accountabilities - appointment of SPAs & EAs 2. Competence – define critical IM competencies, assess staff & contractors 3. Hazard Evaluation and Risk Management - identify hazards, assess & manage
risks. Mandates MAR of Group Concern to be reported to GVP Group Technology with action plan. 4. Facilities and Process Integrity - design for Integrity throughout lifecycle & compliance with STPs & operational practices 5. Protective Systems - Installation & maintenance of protective systems & devices based on hazard evaluations/risk assessments to prevent/ mitigate loss of containment 6. Practices and Procedures - STPs to be developed consistent with Group ETPs 7. Management of Change - all operations to apply a management of change process for temporary & permanent changes 8. Emergency Response - Plans in place to respond to a serious IM related incident 9. Incident Investigation and Learning - Investigate root causes of IM related incidents & share lessons to prevent reoccurrence
IM Standard Programme • Ongoing Risk Based implementation plans in the segments • Monitoring of metrics/KPIs at Group and Segment level • Raising IM awareness through Monthly Updates, New Group and segment websites, IM Standard Awareness DVD, Workshops. • Quarterly performance management of IM to Group leadership • Audit programme starting to be implemented with focus on action closeout by segments
Integrity Management Learning 2. Integrity Management – Learning from Past Major Industrial Incidents - the Process Safety Booklet Series ( see last slide for details) 3. BP Internal Integrity Management Information Pack • DVD with key IM Issues • Understanding the effect of small undetected changes on Integrity Management • Getting workforce conversations underway on workarounds 3. Recent Release – Imagine the difference you can make •Integrity Management Standard Awareness film •Group IM Website
Process Safety Booklets BP/ I Chem. E /A I Ch E BP Process Safety Series - Great sources of lessons learned both inside and outside BP Winner of the Frank Lees Medal 2004 for the most meritorious publication on safety and loss prevention IChemE: Winner of the Frank Lees Medal 2004 for the most meritorious publication on safety and loss prevention.
Produced by BP and endorsed by IChemE's Loss Prevention Panel, these books were developed to complement safety training. They are ideal reference tools within the workplace, increasing awareness of hazards and helping operators to understand safe operating practices and procedures.
Confined Space Entry Hazardous Substances In Refineries Hazards of Air and Oxygen Hazards of Electricity and Static Electricity Hazards of Nitrogen and Catalyst Handling Hazards of Steam Hazards of Trapped Pressure and Vacuum Hazards of Water Hotel Fire Safety Liquid Hydrocarbon Tank Fires Safe Handling of Light Ends Safe Furnace and Boiler Firing Safe Tank Farms and (Un)loading Operations Safe Ups and Downs for Process Units Control of Work Integrity Management Learning from Past Major Industrial Incidents (A I Ch E)
Some thoughts on Applying lessons learned successfully BP Chemicals Plastics Fabrications Group 1995-1998 • Investigation • Lessons Shared • Lessons Learned • Gaps identified and resourced to mitigate the risks • Management leadership and commitment • Operators belief in a safe workplace and continuously improving • Culture where an unsafe act of process is corrected immediately • Safety dramatically improved by factor of 20 in 2.5 years • Success breads success
