Saf fety y in t the A Aust trali ian Of ffsho ore Oil a and - - PDF document

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Saf fety y in t the A Aust trali ian Of ffsho ore Oil a and - - PDF document

CE EO prese entatio n A A302286 2 20 June 201 13 Saf fety y in t the A Aust trali ian Of ffsho ore Oil a and Gas s Ind dust try Pos st Pi iper r A A Reg gula ator Ref flect tion P Piper 2 5 Conf ferenc ce 18 2 20 June


slide-1
SLIDE 1

National

Nationa

Of

al Offshor

Saf ffsho Pos

re Petrole

fety

  • re

st‐Pi

P A

um Safety

y in t Oil a iper Ref

Piper 2 18 – 2 Aberde

y and Env

the A and r – A flect

5 Conf 20 June een, Sc

ironment

Aust Gas A Reg tion

ferenc e 2013 cotlan

CE

A

al Manag

trali s Ind gula

ce 3 d

EO prese

A302286 2

ement Au

n

ian dust ator

entatio

20 June 201

uthority

nopsema.g

try

n

13

  • v.au
slide-2
SLIDE 2

National Offsho

Ladies an Thank yo privileged and expe I am the C responsib managem report to spanning small offi I travelled reasons. have lear to explain and to sa I will also with a vie we move people an commun children a Over the Cullen wh changes i recomme  The re  The ne

  • verlap

 The im  The ne special And so w

  • re Petroleum Sa

nd Gentlem

  • u for allow

d to speak ertise. Chief Exec bility for re ment of th the Fede g the west ice also in d from my To share w rned from n how we ay thank yo

  • reflect on

ew to posi e forward t nd the env ities in wh and future last two d hich called internatio endations quiremen eed for a s pping juris mportance eed for a p list (comp we, in Aust

afety and Environ

men wing me t k at such a cutive of N egulating he offshore ral Minist and east Melbourn y home in with you h experien have imp

  • u for the

n some of ing some to define vironmen hich it ope e generati days much d for wide

  • nally. For

included: nt for “goa single regu sdiction a

  • f an inde

properly re petent) ins ralia, got

CE

nmental Manage

he opport an importa NOPSEMA the safety e oil and g er for Res coasts of ne. Perth to b how the g ces in the plemented e contribut f the lesso challenge the offsho t in additi erates – es ions to be h has been espread ch regulator : al setting” ulator to r nd potent ependent esourced spectors to work.

EO Presenta

ement Authority

tunity to s ant event A, an indep y, well inte gas indust sources an Australia, be part of

  • vernmen

North Se d key reco tions arisi

  • ns and th

s for gove

  • re petrol
  • n to one

ssentially, e part of. n spoken a hanges in t rs and gov regulatio emove co tially conf regulator inspectora

ation

A302286

speak to y alongside pendent st egrity and ry in Aust nd Energy. with our f this impo nts of Aus a and from mmendat ng from t emes from ernment, i eum indu e that brin an indust about the the UK ind vernments n

  • nfusion a

licting req r ate emplo

  • u this mo

e those wit tatutory a d environm

  • ralia. As C

. I lead a t headquar

  • rtant eve

tralia and m the Pipe tions of Lo he Piper le m a regula ndustry a stry as on gs econom try we wo 1990 rep dustry and s in Austra nd uncert quirement

  • ying a crit

Piper 25 C

  • rning; I a

th such ex authority w mental Chief Exec eam of 12 rters in Pe ent for thr its regula er Alpha d

  • rd Cullen’

egacy. ator’s pers nd regula ne that is s mic benef uld like ou

  • rt from L

d also set alia, influe tainty abo ts tical mass

Conference

20 June 2013

am xperience with the utive, I 20 people erth and a ee ators disaster, ’s report spective, tors as safe for it to the ur Lord in motion ential ut s of

e

2 of 13

slide-3
SLIDE 3

National Offsho

Australia To put th to Austra responsib territorie In 1979, b petroleum Designate state/ter petroleum sometime managem Following concept o

  • ccupatio

legislatio facilities. As a resu had been The Aust effective Australia arrangem The revie that: “…the healt comp efficie It recomm

  • re Petroleum Sa

a and the s he develop alia’s legisl bilities am es. before Pip m activitie ed Author ritory juris m acreage es major p ment regu g the Culle

  • f duty of
  • nal healt

n to provi ult, by 199 n establish ralian Gov safety cas to addres ments. ew by inde e Australia h, safety a plicated an ent regula mended a

afety and Environ

safety cas pment of t lative stru mongst the per Alpha, es was div rity, mana sdictions. e release a project fac lation. en report, care and th and safe ide a firm 96 a goal s hed. vernment se regime ss its conc ependent an legal an and enviro nd insuffic ation of th national

CE

nmental Manage

se regime these arra ucture – w e Federal G legislativ vided at a aged regul The desig and permi cilitation a legislatio clarify key ety regime legal basi setting reg recognise . In 1999, cerns over

  • ffshore s

nd admini

  • nment in

cient to en he offshore petroleum

EO Presenta

ement Authority

angements we are a Fe Governme e power a national a ation and gnated aut it allocatio as well as n in Austr y respons

  • e. Further

s for the s gime and ed that mo it commis r the adeq safety exp istrative fr n the offsh nsure appr e petroleu m safety re

ation

A302286

s in conte ederation ent and th and respon and state l administ thorities w

  • n, offsho

safety, we ralia was a ibilities fu r progress safety case the assoc

  • re might

ssioned a uacy of th perts repo ramework hore petro ropriate, e um indust egulatory xt, first a l with a div

  • se of the

nsibility fo

  • evel. A de

ration in c were respo re activity ells and en amended t ndamenta was made e for all of iated safe be neede review of he existing rted in 20 k… for reg

  • leum indu

effective a ry.” authority

Piper 25 C

little back vision of e eight sta

  • r offshor

epartment correspon

  • nsible fo

y promotio nvironme to introdu al to a mo e in 1996 ffshore pe ety case p ed to achie f offshore g regulato 001 and co ulation of ustry is and cost y.

Conference

20 June 2013

kground ates and e t, called a ding

  • r
  • n,

ntal uce the

  • dern

with etroleum process eve an safety in ry

  • ncluded

f

e

3 of 13

slide-4
SLIDE 4

National Offsho

Moving q petroleum accepted agreeing was back petroleum recovery With the Safety Au recomme  “goal s case co  A singl  An ind  A prop At this tim particula expertise procedur particula expertise The know Australia Today, th focussed responsib Consolida As you ca structure turns out became t

  • re Petroleum Sa

quickly to m industry d the revie to the for ked by new m safety. from the establish uthority (N endations setting” re

  • vering al

e regulato ependent perly resou me and in r the UK a e and expe

  • res. We m

rly the UK e. wledge, ex a is a form he authori

  • nly on o

bility for re ating the an see, wit e and impl t, this was the unfort

afety and Environ

reconfirm y, in 2002 ew recomm rmation of w laws stip Further, t industry i hment and NOPSA) in s from Lor egulation a l aspects o

  • r for Com

t regulator urced and this settin and Norwa eriences in ust also th K, where m xperience midable an ty I head

  • ffshore pe

egulating safety cas thin a sho ementatio n’t enoug tunate cat

CE

nmental Manage

m the prior Federal, S mendation f an indep pulating th he regulat t regulate d commen n 2005, Au rd Cullen’s and with i

  • f operati

mmonwea r skilled ins ng, I must ay who as n the deve hank indu many of ou e and expe d valuabl is known a etroleum

  • ffshore g

se regime

  • rt space o
  • n of offsh
  • gh. Major a

talysts for

EO Presenta

ement Authority

rity for im State and ns by endo pendent n he duty of tory autho ed. ncement o ustralia ha s report: it the need

  • ns

lth and co spectorat again tha sisted wit elopment stry and r ur speciali ertise of th e legacy o as NOPSE

  • peration

greenhou e in Austra

  • f time the

hore petro accidents further ch

ation

A302286

proving sa Northern

  • rsing the

ational of f operator

  • rity woul
  • f the Nat

ad implem d for oper

  • astal wat

e ‐ funded ank our int h our esta

  • f our pro

regulators sts develo hose now

  • f Piper A

MA and is

  • ns. More r

se gas sto alia ere was su

  • leum reg

in Austra hange. afety in Au Territory e “safety c fshore saf rs to mana ld be fund tional Offs mented fo rators to s ers d by indus ternationa ablishmen

  • cesses, p

in the No

  • ped their

w working lpha and t s a special recently w

  • rage activ

ubstantial gulation in lia and int

Piper 25 C

ustralia's o y ministers case appro fety autho age offsho ded by cos shore Pet

  • ur key

submit a s stry levies al counter nt by shari policies, an

  • rth Sea,

r knowled with us in the Cullen ist regulat we have vities. progress n Australia ternationa

Conference

20 June 2013

  • ffshore

s

  • ach” and
  • rity. This
  • re

st roleum afety rparts, in ng their nd ge and n n Inquiry. tor in the

  • a. As it

ally,

e

4 of 13

slide-5
SLIDE 5

National Offsho

On 3 June exploded pipeline h pipeline r and caus

  • hurt. In a

closure re Full prod The inqui requirem highlighte

  • meet. Th

not clear Then on 2 well in th eventuall incident i and wellb the wellh fortunate

  • nly sligh

Then Apr Gulf of M quickly tu commun control o Once aga gas indus industry. Further in

  • perator,

capacity o

  • peration
  • re Petroleum Sa

e 2008, a d on the be had been ruptured s ing severa ddition to educed W uction had iry into th ments for a ed the pot e resulting

  • r where

21 August he Timor S ly led to th in decade bore was s head platfo ely, no one htly differe ril 2010 sa Mexico, US urned to t ities and l ver the ne ain, the sp stry provid nquiries in , design a

  • f the Nor

ns in its ju

afety and Environ

high press each of Va weakened soon after al associat

  • the loss

Western Au d not bee e Varanus actively im tential for g report il regulator t 2009, fai Sea, North he Austra

  • s. The oil s

successfu

  • rm and W

e was kille ent the re w anothe

  • SA. The BP

he path o ivelihoods ext 87 day

  • tlight wa

ding an im nto the M nd regulat rthern Ter risdiction

CE

nmental Manage

sure 12 in aranus Isla d by a sec r, directing ted lines to in export ustralia’s g n restored s Island in mplementi r confusio lustrated rs do not e lure of we

  • f Austra

lian offsho spill and g lly capped West Atlas ed and the sults could r loss of w P Macondo f the oil sp s and the ys. as focused mpetus for

  • ntara we

tory failur rritory Des , and enfo

EO Presenta

ement Authority

ch export and off th tion of ex g fires tow

  • rupture

revenue, t gas supply d more th cident rei ng plans t n at the p the risks w exercise p ell integrit alia, set in

  • re petrol

gas leak la

  • d. Ultimate

s jack‐up d ere were n d have be well contro

  • disaster

pill, enviro extensive d on the h change w ell head bl res includi signated A

  • rce comp

ation

A302286

sales gas e coast of ternal cor wards the and ignite the result y by almos an a year nforced b to manage point wher where reg powers con ty barriers motion a leum indu sted 74 da ely, on 3 N drill rig. Re no injuries en catastr

  • l and maj

claimed 1

  • nmental

e efforts to igh‐hazard within the lowout hig ng questio Authority pliance wit pipeline r f Western

  • rrosion. An
  • nshore p
  • e. Fortuna

ing damag st one thir after the

  • th the te

e facility in re differen gulatory re nsistently s of the PT chain of e stry's mos ays until t November emarkably s; had circ rophic. jor blowo 11 lives. Th damage,

  • bring the

ds of the o Australian ghlighted

  • ns aroun

to adequa th importa

Piper 25 C

ruptured a Australia nother pa processing ately no o ge and pla rd for two incident. echnical ntegrity an nt jurisdict esponsibil and impa TTEP Mont events tha st significa the Monta r, a fire de y and mos cumstance

  • ut, this tim

he media impact on e well und

  • ffshore o

n petroleu a number nd the reso ately mon ant eleme

Conference

20 June 2013

and . The rallel g plant ne was ant months. nd also tions ities are artially. tara H1 at ant ara well estroyed st es been me in the attention n der

  • il and

um r of

  • urcing

nitor well ents.

e

5 of 13

slide-6
SLIDE 6

National Offsho

You may resourced were per instrume The Mon regulator integrity became N Managem With the integrity and, furth damage t At the sa a single n requirem looking o edge of t regulator Attribute  Similar believe  Funded  We are recom  We ap regulat manag We have prescript example:  Limitat  Limitat  Oil con

  • re Petroleum Sa

recall the d, compet rtinent to t ntal in spu tara Comm ry body be and envir NOPSEMA ment Auth formation

  • f a well i

hermore, to the env me time, national in

  • ments. We
  • ut to sea

he econom r. es of NOPS r legislativ e we may d through e a perfor mended b ply a cons tory respo gement. some pre ive requir : tions on e tions on e ntent of pr

afety and Environ

Cullen In tent regul the event urring furt mission of e responsi

  • nmental

A ‐ the Nat hority. n of NOPS is inextrica that many vironment however, ndependen have a wa and know mic exclus SEMA are ve require have muc h industry mance–ba by Cullen ( sistent, pe

  • nsibilities

escriptive e rements re exposure t exposure t roduced fo

CE

nmental Manage

quiry conc ator with s that led ther refor f Inquiry R ble for saf approval tional Offs SEMA, we ably linked y barriers t. Australia nt regulat ay to go b w that all p sion zone : ments as t ch to learn levies givi ased regim (1990). erformanc s for healt elements egarding m

  • certain
  • noise
  • rmation

EO Presenta

ement Authority

clusions a a critical m to these m rm. Report rec fety as a p

  • s. As a res

shore Petr took a ste d with the that prev has taken

  • r enablin

before you petroleum are regula the UK fo n from you ing flexibi me as advo ce‐based a th and saf in our reg minimum hazardou water dis

ation

A302286

bout the i mass of ex major offs commende primary ob sult on 1 J roleum Sa ep forward e safety of vent harm n a step ba ng industr u can stand activities ated by a r workforc ur step ch lity in rem

  • cated by

approach, ety, well i

  • gime. For t

standards s substanc charged t importanc xpertise ‐ shore incid ed a single bjective, in anuary 20 fety and E ds recogn f the offsh to people ackwards y to focus d on any b where yo single, pro ce involve ange prog muneration y Robens ( across all ntegrity a the contro s may be a ces

  • the envi

Piper 25 C

ce of a sin these con dents and e, indepen n addition 012, NOPS Environme ising that hore workf e also prev from the s on just o beach in A

  • u stand t
  • perly‐res
  • ement. Ho

gram. n. 1970) and elements and enviro

  • l of some

appropriat ironment

Conference

20 June 2013

gle, well‐ nclusions d ndent n to well SA ental the force vent vision of ne set of Australia

  • the

sourced

  • wever, I

d s of our

  • nmental

e risks,

  • te. For

e

6 of 13

slide-7
SLIDE 7

National Offsho

Our focus major en regardles regulatio The start ‐ the safe Our focus experienc environm resource chronic a I believe is a stron establish controls n example) If we look were inju and the e experienc managem does not,

  • peration

These are to Austra I now sha As a regu Are we e If we are  “Goal s case co

  • re Petroleum Sa

s has been vironmen ss of likelih

  • n. We mu

ing point ety case, w s on safety ce, one of mental ma allocation and often a focus on g link betw ment of N necessary ) are equa k at the m

  • ured. Whil

enduring s ce demon ment that , of course nal planni e some les alia’s offsh are with yo ulator, I as effective? effective, setting” re

  • vering al

afety and Environ

n on majo ntal conseq

  • hood. We

ust plan fo is the key well opera y has rem f the ongo nagement n between long term n preventi ween safe NOPSEMA y to ensure ally effecti media repo e their de story in th nstrates th considers e, cancel o ng that ex ssons of P hore regul

  • u some o

k myself: Have we , what asp egulation l aspects o

CE

nmental Manage

  • r accident
  • quences. T

must be v r what mi regulator tions man ained thro

  • ing challe

t role in in n often ac issues aro ion of maj ety and en as a singl e the safet ve at prot

  • rts of the

eaths were e media w he value of s the impa

  • ut the ne

xist primar iper Alpha atory regi

  • f the cha

made a d pects of th and with

  • f operati

EO Presenta

ement Authority

t events ‐ These eve vigilant an ight happe ry docume nagement

  • ugh all o

enges for t ndustry is ute and im

  • und envi

jor accide nvironmen e nationa ty of peop tecting the Macondo e reported was the en f planning act on both eed to take rily to pro a and the me, I wou allenges I s ifference? he regime it the nee

  • ns?

ation

A302286

events inv ents are co nd rigorou en should ent that de plan or e

  • f the regu

those with how to st mmediate ironment. nt events ntal outco l regulato ple (like bl e environm

  • blowout

d early on, nvironmen g, designin h lives and e seriously

  • tect the e

significan uld be gra see ahead ? How do are the m ed for oper volving m

  • nsequenc

us in our d all preven efines how nvironme ulatory evo h a health, rike the ri issues aro reduces t mes, as re

  • r. Many o
  • wout pre

ment. ‐ 11 men , the majo ntal impac ng and del d the envi y those as environme t contribu ateful for y for regula we know most crucia rators to s

Piper 25 C

ultiple fat ce‐based, elivery an ntion barr w this will nt plan.

  • lutions. F

, safety an ight balan

  • und safe

this tensio ecognised

  • f the actio

evention f died and

  • rity of the
  • ct. The Ma

ivering ris ronment. spects of ent. ution they your indul ators and w? al? Is it: submit a s

Conference

20 June 2013

talities or nd riers fail. be done From my nd ce in ety and

  • n. There

in the

  • ns and

for

  • thers

e images acondo sk This y’ve given lgence as industry. safety

e

7 of 13

slide-8
SLIDE 8

National Offsho

 A singl  An ind  A prop (comp Are these As Andre choose a consisten with a cle Whilst I b relevant f somethin edge regu job effect Inextricab regulator industry o resources  Is it wh wheth reason  Is it wh to prov doing w check undert presen  Is it wh enforc  Or is it manag rarely…  Or per week t

  • re Petroleum Sa

e regulato ependent perly resou etent) ins e characte w Hopkin spects the nt outcom ear manda believe tha for regula ng that we ulation an tively in 2 bly linked rs do that

  • f safe pla

s where it hen the re er you in i nably prac hen the re vide evide what you lists as to taken ‐ we nt and fun hen the re ement act t our stake gement, th … spendin haps… as that “the m

afety and Environ

  • r?

t regulator urced insp pectors? eristics int s and Sir H ey like, ign

  • me. Indepe

ate are all at the insi ators today e are missi nd regulato 5 years’ ti to these q contribut aces to wo t will have egulator ch industry “ ticable?” egulator fo ence that y said you w whether e e strive to ctioning a egulator in tions? eholder en he sharing g time ed

  • ne of NO

most impo

CE

nmental Manage

r? pectorate erconnect Haddon‐C nore or ma ndence, w essential ghts on re y as they w ing? What

  • rs of the

ime? quandarie es the mo

  • rk? If we

the most hallenges “Are you d

  • llows up

you are in would do? equipmen probe wh as intende nvestigate ngagemen g of lesson ucating in OPSEMA’s

  • rtant thin

EO Presenta

ement Authority

employing ted? Cave highli arginalise well resou for a perf egulation f were 25 y t more sho

  • ffshore

es is the q

  • st to the

can answ t impact. industry d doing enou during ins n fact mee ? For NOP nt is prese hether ind ed. s when th nt, such as ns learned ndustry on s very expe ng that we

ation

A302286

g a critica ghted, go

  • thers an

rced, com formance‐ from Lord years ago,

  • uld we c
  • il and ga

uestion: E reduction wer this, w during ass ugh to ma spections eting your SEMA this nt or whe dustry syst hings go w s the prom and… som n the basic erienced i e do is to l mass of s vernment nd expect t mpetent, a ‐based reg d Cullen’s r I am still t

  • nsider? W

as industry Exactly wh

  • f risk an

e can then sessment – nage risks when we

  • wn com

s is a lot m ether certa tems and p wrong and motion of s metimes… cs of risk m nspectors be there”

Piper 25 C

specialist ts cannot to deliver single reg gime to w report are troubled: What will y need to hat is it tha nd the cre n apply ou – when w s to as low ask you in mitments more than ain tests a processes carries ou safety and … ideally ve manageme s, said to m . Whilst I a

Conference

20 June 2013

pick and r a gulator work. e as Is there leading‐ do their at we ation by ur e ask w as n industry s and simple are s are ut d risk ery ent? me last agree

e

8 of 13

y

slide-9
SLIDE 9

National Offsho

with h also ab the mo take ac This bring regulator

  • itself. And

resourcin The price At NOPSE

  • rder to

recruiting diversity more abo Securing functions and cond dynamics Can the r

  • f “indep

capability examiner who has t Are we p regulator What is c

  • therwise

conseque  Loss of making further the reg

  • re Petroleum Sa

im in part bout askin

  • st pertine

ction if the gs me to o rs of the o d it takes ng and skil e of capab EMA, we b be able to g, develop and comp

  • ut the Au

a team of s involves ditions and s and dem regulator b pendent w y somewh rs are tryin the gold m prepared t r? Or wou certain is t e obtain t ences: f respect f g it harder r erosion o gulator.

afety and Environ

, I think it ng questio ent challe e answer

  • ne of the
  • ffshore in

us back to ll. bility believe th

  • effective

ping and e plexity of A ustralian o f skilled pr a sophisti d seeks to mographics be outsou well exami here else a ng to build makes the to pay the uld society that in the he expert from those r to recrui

  • f respect

CE

nmental Manage

is more t ns and act nging que is insuffici e key chall ndustry an

  • one of th

at is essen ely regulat ngaging s Australian

  • ffshore in

rofessiona icated stra navigate s. urced ‐ the nation.” In and adds t d a sustain e rules.) e costs inv y prefer to e longer te tise they n e we regu it good pe t and the u

EO Presenta

ement Authority

han ‘being tually hav estions to ient or un enges fac nd, I respe he key rec ntial for in

  • te. Our ap

ufficient c n industry ndustry sh als to deliv ategy that the comp ere has be n my view the compl nable busi volved tod

  • wait and

erm, if reg need to be ulate and g eople and ultimate d

ation

A302286

g there’ th ving the kn ask, to un satisfacto ed by NOP ctfully sug commend nspectors t proach to capable in ‐ Miranda hortly. ver NOPSE t combine plexities an een much w w this simp exity of in

  • iness. (Re

day in reso d pay the gulators ar e effective governme

  • btain res

demise/re hat makes nowledge nderstand

  • ry.

PSEMA an ggest, muc ations of L to unders regulatio spectors t a Taylor fr EMA’s core s attractiv nd confine weight giv ply shifts t ndependen member t

  • urcing a

price of fa re unable t , there wi nt and co sources, le structure/

Piper 25 C

s a differe and skills the answ nd many, i ch of indu Lord Culle stand indu

  • n relies o

to deal wi rom APPEA e regulato ve remune es of work ven to the he challen nce if the the golden competen ailure? to recruit ill be signi

  • mmunitie

eading to /replacem

Conference

20 June 2013

  • nce. It is

to know er and to f not all, ustry en – ustry in n th the A will talk

  • ry

eration kforce e concept nge of well n rule ‐ he nt expert

  • r

ficant es, a cycle of ment of

e

9 of 13

e f

slide-10
SLIDE 10

National Offsho

 Challen approa involve The value NOPSEM make dec policies a We woul factors o planned t The chall core func ‘keeping should w  Regula  Regula  The de  Coope decisio  Good c  Work w most e  Equita  Timely Having sp spotlight Alpha has lessons o Unfortun understa gas indus betray an through” their wor

  • re Petroleum Sa

nge to a p ach more es less thin e of indep A views it cisions in a and can ev d become r, in the ca to do in a enge is no ctions or d

  • ur eye o

work to pro ations base atory effor evelopmen ration wit

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communic with stake effectively ble enforc y decisions pent some

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s imbued

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nately, wh nding risk stry, I rem n approac NOPSEM rkforce an

afety and Environ

performan amenable nking and pendence ts indepen accordanc volve in re e uncomfo ase of ass particular

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divert limit n the ball

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ithin and n the requ using on t formance petroleum t 25 years

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ng steps to sy that som

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than an un vironment

EO Presenta

ement Authority

model to lists and t t on the p critical to e legislati

  • the expe

we were a , prompte

  • tance. We

lder engag rces to ‘ke ress this, r e nternation standards promote g rency rescription across jur uirements the regula and my v m organisa s ago. here has b

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ation

A302286

a more ru the check part of the regulator

  • n, which

eriences an asked to ta ed to imag look for e gement ac eeping oth egulators nal initiati good gove n and perf risdictions

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g, systema nt major o ules based box appro regulator ry decision informs N nd perform ake into ac gine what evidence. ctivities di hers happy and their ves – wor ernance an formance w followin me now to he degree h a clear a ficant pro ed by the encounter

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Piper 25 C

d, prescrip

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to which appreciatio

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rs with ind ” and “get

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vents.

Conference

20 June 2013

ptive ch We A’s industry. traneous tor from our than ents ce‐based proaches

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10 of 13

slide-11
SLIDE 11

National Offsho

Much wo continues environm We conti Accidents men lost accident injured. So, while Piper Alp examples  No com  No com exists n  Standa we wa I could go effort by

  • pinion b

extensive Technica technical  What s place a  Do you to imp Do not w your aud Managem Major ch the situat

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  • rk remain

s to exper ment and l nue to see s continue their lives in the Dut industry pha, some s: mprehens mprehens now ards devel nt?

  • on, rega

industry w based on r e discussio l controls controls steps have and actua u have em lement? wait for you its are eff ment of C ange seem tional awa

afety and Environ

ns for indu rience inci

  • ss of tru

e catastro e to occur s on the d tch sector may have things ha ive intern ive intern

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rdless, ou which are recent ins

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‐ how do are in‐pla e you take lly applied mergency p ur regulat ective and hange ‐ is ms to be m areness of

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ustry and r idents wh st by gove

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as we in A rill floor o r North Se changed ve not cha ational in ational da was disjoin r view is t in the con pection fin

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managed b f your tea

EO Presenta

ement Authority

regulators ich cause ernments res follow Australia

  • f the Sten

ea left two and some anged, or cident dat atabase fo nted then that there ntrol of in ndings, in ectors and w as mana nctioning fy that you uding oil s pect – mak up deficie ed as a co better tha ms to incr

ation

A302286

s alike. Ind loss of life and comm wing simila experienc na Clyde a

  • workers

e element not chang ta base ex

  • r safety a

and rema e are some dividual c cident and d regulator agers and s as intende ur compan spill contin ke sure yo encies and ntributing an small in remental c dustry aro e, damage munities. ar patterns ced in Aug nd only la dead and s may hav ged enoug xisted then lerts exist ains so tod e clear prio

  • mpanies

d accident ry speciali senior ma ed? For ex ny’s well b ngency pla ur own sy d defects. g factor in crementa change?

Piper 25 C

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n; none ex ted then;

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t data and ists. anagers th xample: barrier pol ans that y ystems, pa investiga al changes

Conference

20 June 2013

world ear – two a tragic

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ed since e some xists now none t what r further

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d hat licy is in

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11 of 13

d

slide-12
SLIDE 12

National Offsho

Standard particula needed f Asset Int that integ We woul manage i asset has whether In closing have had the mess date, had bought in An entren faced by aspects o clear opp

  • rganisat

had start Alpha ste

  • vercome

Essential petroleum into the o Unfortun Montara

  • entails. H

me cause Around t this alone

  • player. Sh
  • re Petroleum Sa

ds ‐ as a re rly accept

  • r environ

egrity ‐ lik grity is mo d like to s integrity f s integrity the asset g, the Pipe d a huge im ages; som d success i n. nched ind clear evid

  • f their saf

portunity t tional and ed moving eps were t e the inte to progre m operati

  • perations

nately, abs and Maco However, e for optim he globe c e as they r hould thin

afety and Environ

egulator in tance stan nmental p ke the Nor

  • nitored a

ee much g rom the d because t still has in er Alpha d

  • mpact. No

me, like Au implemen ustry and dence of th fety progr to refocus managem g toward taken tow rnal and i ess is the r

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s; it must sent major

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I believe s mism. companie realise the ngs go wro

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n a perform ndards for performan rth Sea, A and manag greater em design pha there has ntegrity. isaster an company ustralia, ha nting impr regulator he need to

  • rams. Ther

s regulator ment influ a goal‐set ard a safe ndustry re recognitio with the o be integra r accident re is little since Mac s, even th ey will be j

  • ng the en

EO Presenta

ement Authority

mance‐ba risk, espe nce. ustralia ha ged so the mphasis p

  • ase. It is si

not been d inquiry y or regula ave embra

  • vements

ry culture

  • improve

re is resist ry program ences on tting appro ety manag esistance. n that res

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al to way t ts such as appetite f condo ther he very lar judged by ntire indus

ation

A302286

sed regim ecially safe as aging fa ey are fit f laced on t mply not a problem and recom ator that I aced the r

  • s. Regretta

is very dif e the huma tance to c ms to emp

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gement reg ) sponsibility . Regulato the indust Piper Alph for improv re has bee rgest are r y the perfo stries abili me standar ety risk. Cl acilities an

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the ability acceptabl m if no one mmendati am aware ecommen ably, othe fficult to c an and org hange eve phasise th

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e 1980’s a gime, but y for safet

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Piper 25 C

rds are cri lear stand nd it is imp ended fun y to monit e to claim e has look ions by Lo e of has d ndations a ers have st change ev ganisation en when t e role of h

  • r exampl

and after could nev ty in offsh t inspect s business. more recen nd the cha change wh hat they c

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ess areas t

Conference

20 June 2013

tical ards are portant nction.

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m that an ked to see

  • rd Cullen

isputed and to till not en when nal there is a human, e, the US Piper ver hore safety ntly ange it hich gives annot do akest to

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12 of 13

slide-13
SLIDE 13

National Offsho

explore a and comm brightest The level Macondo We must differenc We must approach Whereve

  • wn or re

Commun industry. in Perth i industry. While the petroleum that thes recent ev expectati scrutiny a Without regulator I encoura to move environm profit and Thank yo

  • re Petroleum Sa

and develo munities a people w

  • f the co
  • has been

t recognise

  • es. It is a g

t minimise

  • hes. We m

er possible einventing nication, co The Inter n October We will a ere is gene m industry e risks are vents such ions of ind applied to effective r ry scrutiny age those major acc mental ma d loss.

  • u

afety and Environ

  • p, favora

and most will be seve mmunicat n unprece e that wha global ind e local nua must contin e we shoul g the whe

  • operatio

rnational R r to share lso hold o eral public y carry inh e effective h as the M dustry and

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risk mana y, Piper Al leading th cident prev nagement

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ble fiscal important erely limit tion, colla dented. at we have ustry with ances, use nue to see ld use wha el. n and sha Regulators insights, l

  • ur AGM w

c acceptan herent risk ely manag

  • ntara an

d governm stry and it gement sy pha could he offshor vention u t are treat

EO Presenta

ement Authority

regimes, o tly the ind ted. aboration e in comm h mobile e e common ek commo at works w aring appli s Forum, t learning a where we nce that a ks, there i

  • ed. Event

nd Macond ment accou ts regulati ystems by d absolute re petroleu p the list o ted with t

ation

A302286

  • ngoing su

dustry’s ab and sharin mon is mu equipmen language

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well elsew ies equally the IRF, w and best p will discu ctivities a s also the s surround do inciden untability

  • n.

y industry ly happen um indust

  • f prioritie

he same d upport fro bility to ac ng that we ch greater t and a glo e, framewo tanding of where and y to regula ill be hold ractice wi ss prioritie ssociated reasonab ding Piper nts have ra and inten supported n again. try into th es, so that degree of

Piper 25 C

  • m govern

ccess the b e have see r than our

  • bal work
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f key conc avoid gro ators as w ding a conf ith ourselv es for the with the ble expect r Alpha an aised pub nsified the d by stron e next gen t safety an seriousne

Conference

20 June 2013

nments best and en since r kforce. cepts.

  • wing our

well as ference ves and future.

  • ffshore

ation nd more lic e level of ng neration, nd ess as

e

13 of 13