Risk Management in the Oil and Gas Industry

1 INTRODUCTION AND READING GUIDELINES

2 FUNDAMENTALS OF RISK MANAGEMENT

2.1 UNQUANTIFIABLE RISK 2.2 SAFETY CULTURE AND RISK ACCEPTANCE 2.3 HUMAN FACTORS AND THE ERROR-INDUCING ENVIRONMENT 2.4 EFFICIENCY AND STRATEGIC RISK MANAGEMENT LINE 2.4.1 TECHNICAL AND OPERATIONAL KNOWLEDGE 2.4.2 HAZARD REDUCTION 2.4.3 AGENTS (PEOPLE) EVACUATION 2.4.4 EMERGENCY CONTROL 2.4.5 UNPREDICTABILITY REDUCTION 2.5 LESSONS LEARNED 2.6 EXERCISES 2.7 REVIEW QUESTIONS

3 TECHNICAL AND OPERATIONAL KNOWLEDGE

3.1 KNOWING UPSTREAM INSTALLATIONS 3.1.1 DRILLING SHIP AND COMPLETION 3.1.2 PRIMARY PROCESSING EQUIPMENT 3.1.3 FIXED OFFSHORE PLATFORMS 3.1.4 SEMI SUBMERSIBLE OFFSHORE PLATFORMS 3.1.5 FLOATING OFFSHORE PRODUCTION, STORAGE AND TRANSFER PLATFORMS (FPSO) 3.1.6 SPECIAL OFFSHORE PLATFORMS 3.2 KNOWING DOWNSTREAM INSTALLATIONS 3.2.1 REFINING FACILITIES AND PETROCHEMICAL PLANTS 3.2.2 TRANSPORT AND DISTRIBUTION 3.2.3 SEA TERMINALS (ONSHORE OR AT SHORE) 3.3 KNOWING PROCESS SAFETY 3.3.1 CONTAINMENT LOSS (LIQUID AND GAS LEAKS) 3.3.2 STABLE OR EXPLOSIVE BURNING COMBUSTION 3.3.3 SAFETY IN PHYSICAL AND CHEMICAL HYDROCARBON PROCESSES 3.4 KNOWING THE OPERATIONAL PRACTICE (FIELD EXPERIENCE) 3.4.1 STRATEGIES FOR ADDRESSING OPERATIONAL FAILURES 3.4.2 PERFORMANCE OF PROFESSIONALS IN OPERATIONAL AND FIELD ACTIVITIES 3.5 KNOWING THE PROJECT ROUTINE 3.5.1 PROJECT ROUTINES 3.5.2 PERFORMANCE OF PROFESSIONALS IN PROJECT ACTIVITIES 3.5.3 SAFETY SYSTEMS DESIGN DOCUMENTS 3.6 LESSONS LEARNED 3.7 EXERCISES 3.8 REVIEW QUESTIONS

4 HAZARD REDUCTION

4.1 SEGMENTATION OF HYDROCARBON INVENTORY 4.1.1 ARRANGEMENT AND LAY OUT TECHNIQUES 4.1.2 BLOCKING SEGMENTATION TECHNIQUES 4.2 EMERGENCY DISPOSAL OF HYDROCARBON INVENTORY 4.2.1 PRESSURE RELIEF AND DEPRESSURIZATION 4.2.2 DISPERSION AND CONTROLLED BURNING 4.3 EMERGENCY AUTOMATIC SHUTDOWN 4.4 LESSONS LEARNED 4.5 EXERCISES 4.6 REVIEW QUESTIONS

5 AGENTS (PEOPLE) EVACUATION

5.1 IMPORTANCE OF ESCAPE AND ABANDONMENT SYSTEMS 5.2 ACCIDENTS IN HYDROCARBON INVENTORY FACILITIES AND SURVIVAL 5.3 HUMAN X SYSTEM INTERACTION DURING ESCAPE AND ABANDONMENT 5.4 ESCAPE AND ABANDON OPERATION 5.5 TECHNICAL RECOMMENDATIONS FOR ESCAPE AND ABANDONMENT SYSTEMS 5.5.1 POSSIBLES OPERATIONAL SEQUENCES 5.5.2 DIMENSIONS AND BASIC RECOMMENDATIONS FOR ESCAPE ROUTES 5.5.3 EVACUATION, ESCAPE AND RESCUE STUDIES 5.5.4 SPACES WITH ACCESS LIMITATIONS AND MACHINE ROOMS 5.5.5 APPLICABLE MATERIALS FOR ESCAPE AND ABANDONMENT SYSTEMS 5.5.6 MUSTER STATIONS AND ABANDONMENT POINTS 5.6 SEA SURVIVAL EQUIPMENT 5.6.1 LIFEBOATS (LIFEBOATS) 5.6.2 LIFERAFTS (LIFEBOATS) 5.6.3 RESCUE BOAT 5.6.4 SALVAGE EQUIPMENT 5.7 LESSONS LEARNED 5.8 EXERCISES 5.9 REVIEW QUESTIONS

6 EMERGENCY CONTROL

6.1 ELECTRIC GENERATION SYSTEMS 6.1.1 ESSENTIAL CONSUMERS 6.1.2 SAFETY CONSUMERS 6.1.3 SPECIAL CONDITIONS FOR CABLES AND LIGHTING 6.1.4 CLASSIFICATION OF AREAS 6.2 VENTILATION, HEATING AND AIR CONDITIONING SYSTEMS 6.3 FLUSHING, PURGING AND INERTING SYSTEMS 6.4 GAS DETECTION SYSTEMS 6.4.1 FLAMMABLE GAS DETECTION 6.4.2 TOXIC GAS DETECTION (H2S - HYDROGEN SULFIDE) 6.4.3 GAS CONTAMINATION MONITORING (H2S / CH4) 6.4.4 ASPHYXIATING GAS MONITORING (CO2 - CARBON DIOXIDE) 6.4.5 GAS DETECTOR SPECIFICATION AND LOCATION 6.5 FIRE DETECTION SYSTEMS 6.5.1 FLAME DETECTION 6.5.2 HEAT DETECTION (FUSE PLUG) 6.5.3 SMOKE DETECTION 6.5.4 THERMOVELOCIMETRIC DETECTION 6.5.5 FIXED TEMPERATURE DETECTION 6.5.6 SPECIFICATION AND LOCATION OF FIRE DETECTORS 6.6 AUTOMATIC FIRE FIGHTING AND PROTECTION SYSTEMS 6.6.1 WATER SPRINKLER SYSTEMS (DELUGE) 6.6.2 FOAM GENERATION SYSTEMS 6.6.3 FIRE FIGHTING WATER PUMPS 6.6.4 FIRE FIGHTING WATER DISTRIBUTION SYSTEMS 6.6.5 CARBON DIOXIDE (CO2) SPRINKLER SYSTEMS 6.6.6 ATOMIZED WATER SYSTEMS – WATER MIST 6.7 ADDITIONAL FIRE PROTECTION SYSTEMS 6.7.1 HYDRANTS 6.7.2 MOBILE FOAM GENERATING EQUIPMENT 6.7.3 WATER MONITOR CANNONS 6.7.4 FIRE EXTINGUISHERS 6.7.5 AUXILIARY EQUIPMENT 6.8 PASSIVE FIRE PROTECTION 6.8.1 INTERFERENCE FROM CLASSIFIED BULKHEADS AND PENETRATIONS 6.8.2 INTERFERENCE FROM CLASSIFIED BULKHEADS, DOORS AND WINDOWS 6.8.3 STRUCTURAL PROTECTION 6.8.4 MATERIALS FOR PASSIVE PROTECTION 6.9 CONFINED EQUIPMENT PROTECTION SYSTEMS 6.10 CRYOGENIC PRODUCT ACCIDENTS (LIQUEFIED NATURAL GAS - LNG) 6.10.1 KNOWING THE LNG CRYOGENIC CHARACTERISTICS 6.10.2 BASIC ACCIDENTAL SCENARIOS AND LNG CRYOGENICS 6.10.3 EMERGENCY CONTROL AND LNG CRYOGENICS 6.10.4 FAST PHASE TRANSITION AND LNG CRYOGENICS 6.11 SUBSEA SAFETY EQUIPMENT 6.12 PERFORMANCE OF BRIGADISTS AND RESCUERS 6.13 CRISIS MANAGEMENT AND DECISION MAKING 6.14 IDENTIFYING AND SELECTING ACCIDENTAL SCENARIOS 6.14.1 ACCIDENTS OF EXTERNAL ORIGIN 6.14.2 BEYOND DESIGN ACCIDENT 6.15 SAFETY SPECIAL STRATEGIES APPLICABLE TO AUTOMATION 6.16 REDUNDANCY DESIGN AND SAFETY SYSTEMS STARTING 6.17 UNDERSTANDING EXPLOSION PHENOMENA 6.18 LESSONS LEARNED 6.19 EXERCISES 6.20 REVIEW QUESTIONS

7 UNPREDICTABILITY REDUCTION

7.1 RISK ANALYSIS TECHNIQUES 7.1.1 QUANTITATIVE AND QUALITATIVE RISK ANALYSIS 7.1.2 PRELIMINARY RISK ANALYSIS (PRA) 7.1.3 PRELIMINARY HAZARD ANALYSIS (PHA OR HAZID) 7.1.4 OPERATIONAL HAZARD ANALYSIS (HAZOP) 7.1.5 OTHER RISK ANALYSIS TECHNIQUES 7.2 CONSEQUENCE STUDIES AND ANALYSIS 7.2.1 FIRE PROPAGATION STUDY 7.2.2 GAS AND SMOKE DISPERSION STUDY 7.2.3 EXPLOSION STUDY 7.2.4 ESCAPE, ABANDONMENT AND RESCUE STUDY (EERA) 7.2.5 ANALYSIS OF LOSS OF LIQUID CONTAINMENT AND ENVIRONMENTAL CONTROL 7.2.6 NAVAL FAILURE STABILITY AND NAVAL DAMAGE CONDITION STUDIES 7.3 FULL SAFETY ANALYSIS STUDY (FSA) 7.3.1 FEATURES OF THE OFFSHORE PLATFORM UNDER ANALYSIS 7.3.2 IMPORTING DOCUMENTS FOR 3D MODEL BUILDING 7.3.3 3D MODEL CONSTRUCTION 7.3.4 PROCESS PLANT AREA ADAPTATION 7.3.5 ADAPTATION OF INTERNAL AREAS TO FPSO HULL 7.3.6 ADAPTATION OF SUPERSTRUCTURE INTERNAL AREAS 7.3.7 DEFINITION OF ONBOARD AGENTS AND THEIR BEHAVIORAL PARAMETERS 7.3.8 DEFINITION OF PEOPLE ON BOARD (POB) 7.3.9 OPERATIONAL EXPERIENCE OF ONBOARD AGENTS 7.3.10 GENDER OF ONBOARD AGENTS 7.3.11 AGENTS ON BOARD 7.3.12 ONBOARD AGENT TRAVEL SPEEDS 7.3.13 REACTION TIMES OF ONBOARD AGENTS 7.3.14 PHYSICAL POSITIONING OF AGENTS IN THE INSTALLATION 7.3.15 SPECIAL TASKS FOR SPECIFIC AGENTS DURING THE EMERGENCY 7.3.16 MEASURING THE EFFECTS OF EMERGENCY ON THE INTEGRITY OF PERSONS 7.3.17 CONCEPTUAL DEFINITION OF ACCIDENTAL SCENARIOS 7.3.18 STANDARD AND GAS LEAK SCENARIOS 7.3.19 FIRE SCENARIOS 7.3.20 NAVAL DAMAGE CONDITION AND NAVAL FAILURE SCENARIOS 7.3.21 THEORETICAL SCENARIOS FOR COMPARATIVE PURPOSES 7.3.22 REPRESENTATIVE SIMULATIONS FOR OFFSHORE INSTALLATIONS 7.4 LESSONS LEARNED 7.5 EXERCISES 7.6 REVIEW QUESTION

8 HUMAN X SYSTEM INTERACTION

8.1 HUMAN ERROR 8.1.1 THE IMPACT OF HUMAN ERROR ON ACCIDENTS 8.1.2 HUMAN BEHAVIOR AND SAFETY 8.1.3 CONSIDERING HUMAN BEHAVIOR IN PROJECTS 8.1.4 TECHNOLOGY ILLITERACY AS A THREAT TO SAFETY 8.2 HUMAN FACTORS 8.2.1 MAIN INFLUENCES RELATED TO HUMAN FACTORS 8.2.2 HUMAN FACTORS ANALYSIS 8.2.3 HUMAN FACTOR TREATMENT PROGRAMS 8.2.4 HUMAN FACTORS IN THE TECHNOLOGY ENTERPRISE LIFE CYCLE 8.3 LIMITATIONS OF QUANTIFICATION TECHNIQUES RELATED TO HUMAN RELIABILITY 8.4 RAPID ENTIRE BODY ASSESSMENT (REBA) 8.4.1 EXAMPLE APPLICATION OF THE REBA TECHNIQUE 8.4.2 HUMAN BODY MECHANICS DURING TASK EXECUTION 8.4.3 ANTHROPOMETRY 8.4.4 STATIC WORK 8.4.5 REPETITIVE WORK, CUMULATIVE TRAUMA AND USE OF HAND TOOLS 8.4.6 REBA EVALUATION 8.4.7 REBA RECOMMENDATIONS 8.5 LESSONS LEARNED 8.6 EXERCISES 8.7 REVIEW QUESTIONS

9 RISK MANAGEMENT SYSTEMS

9.1 RISK MANAGEMENT IN THE CORPORATE ENVIRONMENT 9.2 CENTRALIZATION AND DECENTRALIZATION OF RISK MANAGEMENT 9.3 ASSOCIATION OF DIFFERENT TECHNICAL AREAS 9.4 HISTORICAL DATA RECORDS AND INDICATOR MANAGEMENT 9.5 RISK MANAGEMENT, OCCUPATIONAL SAFETY AND SAFETY ENGINEERING 9.6 RISK-BASED DESIGN - RISK BASED DESIGN 9.7 SAFETY PEER REVIEW (SPR) 9.8 ACCIDENT INVESTIGATION 9.9 SAFETY TESTING SYSTEMS (SURVEILLANCE SYSTEMS) 9.10 CAPILLARITY OF RISK MANAGEMENT CONCEPTS AND PRINCIPLES 9.11 APPLICABLE TECHNICAL STANDARDS 9.12 LESSONS LEARNED 9.13 EXERCISES 9.14 REVIEW QUESTIONS

10 SYNTHESIS AND OVERVIEW

11 BIBLIOGRAPHIC REFERENCES