Chapter One: Why Risk Analysis?

CHAPTER ONE
Introduction
WHY RISK ANALYSIS?
Exploration and development of offshore oil and gas fields involve a number of risks related to loss of human lives, pollution, and loss of material assets. AU those involved in the offshore industry are aware of the hazards. The potential for major accidents will always be present, but it is important to keep the risks within acceptable levels, and as low as reasonably practicable. A main contributor to the total risk is uncontrolled release of pressurized hydrocarbons, i.e., gas leakages and blowouts. It should, however, not be forgotten that other aspects such as vessel stability, helicopter transport, and occupational accidents are also significant contributors to the total risk. History shows that uncontrolled releases of hydrocarbons have caused several major accidents. The Bravo blowout on the Ekofisk field in 1977, the West Vanguard blowout in 1985, the Piper Alpha gas leak in 1988, and the Ocean Odyssey blowout in 1988 are all well-known accidents that occurred in the North Sea. In addition, several less severe accidents involving uncontrolled releases have occurred in the North Sea.
RISK ANALYSIS REGULATIONS
Because of the risks involved and the potential for major accidents, a variety of risk analyses of the offshore activities is now mandatory both in Norway and the United Kingdom (UK). The Norwegian Petroleum Directorate (NPD) has issued a specific regulation [3] related to implementation and use of risk analyses in the petroleum activities. The purpose of the regulation is, through risk analyses, to establish and maintain a fully satisfactory level of safety for people, the environment, and assets and financial interests in the petroleum activities. The satisfactory level of safety is described through acceptance criteria. These criteria are used to express an acceptable level of risk in the activities. The operator has to define the risk acceptance criteria before any risk analysis is carried out. It is further stated that risk analyses shall be planned, carried out, used, and updated in a controlled manner. Attempts should be made to eliminate or reduce the individual risks identified through risk analyses. Probability-reducing measures shall, to the extent possible, be given priority over consequence-reducing measures. In the UK, operators are now required to submit a so-called Safety Case [6] for each mobile and fixed installation. The Safety Case shall be submitted to the Health & Safety Executive (HSE) and is to be seen as a "living document" that is updated on a regular basis to take account of changing activities, technologies or other circumstances. The Safety Case regulations were based on the recommendations in the Lord Cullen Report [70], which were made after the Piper Alpha disaster in 1988. The regulations are similar to the Safety Case requirements, which are included in the latest revision of the so-called Seveso Directive [19]. The Safety Case regulations state that all hazards with the potential to cause a major accident shall be identified, their risks evaluated, and measures taken to reduce the risks to persons to as low as reasonably practicable (the so-called ALARP principle) [6]. Incidents causing major accidents are, among others, fire, explosion, the release of dangerous substances involving death or serious personal injury, or other events causing major damage to the installation. It is further stated in the Safety
Case regulations that the likelihood of the major hazards should be assessed. In the U.S., there are so far no regulations concerning risk analyses of the offshore activities [59]. However, prompted by the Piper Alpha disaster, the Minerals Management Service (MMS) conducted a series of reviews of offshore safety practices and of the MMS regulatory program. MMS is the U.S. Outer Continental Shelf (OCS) regulatory authority. A Marine Board study concluded that: OCS operators should improve the "human and organizational factors" in their safety programs, and MMS should refocus its regulatory and inspection programs to emphasize the critical role of human, organizational, and management influences on safety and environmental protection. This study prompted the formation of the Safety & Environmental Management Program (SEMP). The purpose of the program is to reduce the risk of accidents and pollution from U.S. OCS operations. The industry asked MMS to postpone the new regulations and instead let them try to develop a voluntary approach. In response to MMS's SEMP proposal, the American Petroleum Institute (API) developed a new recommended practice, API RP75, "Recommended Practices for Development of a Safety and Environmental Management Program for Outer Continental Shelf (OCS) Operations and Facilities" [9]. API RP75 was published in May 1993. MMS will determine whether to continue the voluntary program or to consider other alternatives in mid-1997. API also developed a companion document, API RP14J [7], which outlines the hazards and risk analyses to be carried out as part of SEMP.
IMPORTANCE OF HIGH QUALITY RISK ANALYSIS
When performing a quantified risk analysis (QRA), there are three important aspects that are required to ensure a satisfactory quality of the analysis:
A thorough understanding of the system and its operational characteristics The proper use of risk analysis methods Risk input data of high quality A risk analysis is usually compiled by using different models and risk input data. Both the models and the data will be more or less incomplete. It is important that the analysis approximately reflects the real risk picture, and, further, that it is possible to identify and rank the major risk contributors. If not, the analysis has limited or no value. Risk analyses of offshore installations are carried out on various levels. In the concept phase, the concept is analyzed. The results from the analyses have impact on the final concept layout. As the project proceeds, risk analyses are performed at different levels for various applications. A risk analysis is to be seen as a "living document" that is updated on a regular basis to take account of changing activities, technologies, or other circumstances. Risk analyses may have large effects on the system layout and may indicate whether or not companies should take protective measures. For example, there are two relatively new Tension Leg Platforms (TLPs) in the Norwegian sector. These installations are, in principle, similar. To determine whether fire insulation of the risers was required to meet the risk acceptance criteria, consultants (one for each TLP) conducted risk analyses. The results of the analyses indicated that only one of the TLPs needed riser fire insulation. For the TLP on which fire insulation was not required, the total installation investment was reduced at least (US) $120 million [49]. This TLP was installed two years after the first one was installed. New and updated SCSSV (Surface Controlled Subsurface Safety Valves) reliability data were the main reason the consultants arrived at different conclusion (i.e., the updated reliability data showed that the SCSSV reliability had improved compared to previous experience). A good question to ask is, could an acceptable risk level be achieved by other means than the costly fire insulation (i.e. reducing the blowout probability or reducing the probability that a blowout could lead to an oil spill and subsequent fire at sea)?
The previous example illustrates the importance of a proper risk analysis, and further, that good input data are important both with respect to estimating the risk itself and to assessing the effects of various riskreducing measures. This book concerns the blowout experience from the U.S. GoM OCS and the Norwegian and UK sectors of the North Sea, 1980-1994. The experience is stored in the SINTEF Offshore Blowout Database [61]. Information from the database is presented in the section SINTEF Offshore Blowout Database on page 33.

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Chapter One: Why Risk Analysis?

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CHAPTER ONE

WHY RISK ANALYSIS?

RISK ANALYSIS REGULATIONS

IMPORTANCE OF HIGH QUALITY RISK ANALYSIS

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