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SHOREBASE I
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PROJECT DRILLING ENGINEER
BASE MANAGER I
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Agenclcs
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logistics I
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Coordinator Coordinator
I Drilling Superintendent I
VESSEL
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PREMIER
Drilling
Supervisor
I Rig Superintendent I
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PREMIER
Drilling
Engineer
EXTERNAL
AGENCIES
P: \op$\bus\sms\BRlIXiE1.DOC
IPREMIER OIL I
NORTHERN
OFFSHORE
150f37
525017
PremierOil
Australasia
HEALTH, SAFETY, AND ENVIRONMENTAL POLICY
Premier Oil Australasia is committed to carrying out its petroleum exploration and production
operations in a safe, efficient and environmentally responsible manner.
Premier Oil Australasia believes that its objective of maintaining consistently high standards of
health, safety and environmental (HSE) practice are compatible with, and complementary to the goal
of maximising the value of the Company.
To this end, HSE considerations must always take precedence over immediate production and
financial concerns. Experience shows that in the long term, a safe, efficient operation will maximise
returns.
It is the responsibility of line management and all empioyees and contractors to co-operate in
striving for high standards of HSE practice.
This can be achieved only through a commitment to undertake all tasks in the safest, least
environmentally damaging and most efficient manner possible. A positive attitude to
maintaining and improving upon existing standards is expected of all Premier Oil Australasia
employees and contractors.
Training plays a central role in achieving good HSE performance. No task shouid be
undertaken unless all personnel involved fully understand the HSE and operational significance
of the task at hand. It is the responsibility of line management to ensure that all personnel
have received proper training and are issued with all necessary HSE equipment prior to
commencing any operation. It is the responsibility of all personnel to bring to the attention of
line management any task for which they are not correctly equipped to perform with due
consideration to health, safety and environmental efficiency.
The company will follow the requirements of the Petroleum (Submerged Lands) Act, Petroleum
Act and all other relevant Acts and Regulations. As a guide Premier Oil Australasia will also
follow the Health and Safety Policy and the Code of Environmental Practice, of the Australian
Petroleum Exploration Association Ltd. (APPEA).
Notwithstanding the Company's commitment to HSE and the welfare of its employees, it
remains the responsibility of each individual to conduct themselves with due respect to his or
her health and safety, the well-being of the environment and the laws of the land.
)
(Signed JUly 1997)
J.Begg
General Manager Premier Oil Australasia
525018
NORTHERN OFFSHORE ASA
OCCUPATIONAL HEALTH and SAFETY
POLICY
Northem Offshore is committed to providing a safe and healthy working environment for
all employees and contractors. As such, it is our policy to llctively prevent injury and
manage risks in accordance with leading practices and relevant regulatiolls.
To achieve this policy Northern Offshore aims to:
Continually improve health and safety performance.
Actively manage risks through the identifIcation, assessment and control of hazarus.
Comply with all applicable regulations, laws and standards. Ifthcse do not adequately
reflect the companies commitment to health and safety, apply standards that du.
Provide health and safety the same consideration as quality, cost and production.
Set health and safety perfonnance standards and measure achievement against t o ~
standards.
Inform employees, contractors and visitors and ensure thcy understand their
obligations in respect of this policy.
Provide training to enable all employees to be competent and accountable for their area
of responsibility.
Communicate openly with employees and regulatory authorities on health am] safety
Issues.
I
~ ~
President and Chief Executi...e Officer
January 1998
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.3. Risk Assessment and Risk Management
Premier Oil Australasia
PREMIER: The Vessel Safety Case has been reviewed to establish that the Y01la-2
program is within the parameters used during the Safety Case assessments.
The identification and assessment of hazards which may occur during the
drilling program is controlled through Premier HSE Management System
Description (Section3). This document provides guidance for a consistent and
pro-active risk management process. Specific well hazards are identified
during the well design stage in the Drilling Program [4). Additional hazards
identified during the well will be included in this document.
To further raise awareness of incidents and to learn from the experience of
others, relevant incidents which occur in any of the regions operations are
circulated (including the Drilling Supervisor) for discussion at safety
meetings. Premier participates in the APPEA Safety Alert System.
NORTHERN: Northern Offshore's management systems, including Safety Management,
Drilling Operations, Well Control, Marine Operations, work together to
present a complete risk management program. Specifically, hazard
identification and risk assessment is dealt with through the formal safety
assessment which is submitted as part of the vessel safety case. In addition to
this safety case the following tools are also used on a routine basis to identify
and manage hazards and risk:
Job Safety Analysis
Planned safety inspections and audits
Design review through a formal modification control procedure.
Links:
P: \ops\bass\sms\BRIDGE1,DOC
1.
2.
3.
4.
Hazards will be identified and controlled during operations to ensure
the risk to personnel is as low as reasonably practicable. Hazard
identification and control will follow procedures as outlined in the
Premier and Northern Offshore SMS.
Premier and Northern Offshore have reviewed the hazards included
in the Vessel Safety Case and those identified in the Drilling
Program [4] and agreed the systems for managing these hazards.
Premier has distributed the Drilling Program [4] to all principal sub-
contractors and no additional hazards have been identified at this
time.
Participation in the JSA system is extended to all on board
personnel, including service contractors.
18007
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.4. Personnel Involvement
525020
Premier Oil Australasia
PREMIER: Employee involvement in the safety systems and safety issues is exercised
through safety meetings, inspections and hazard identification programs.
These methods are detailed in the Premier HSE Policy and HSE Management
System Description (Section 4).
NORTHERN: Employee involvement in OH&S issues on board is facilitated through safety
meetings, JSA's and pre-tour safety meetings. All personnel onboard are
eligible and encouraged to participate in these schemes.
LINKS:
P:\ops\bais\sms\BRIOOEl.DOC
1.
2.
3.
4.
5.
Premier and Northern Offshore endorse both companies approach to
involvement of personnel in meeting the safety objectives and in the
management of safety for the program.
Weekly safety meetings will be held on board which are compulsory
for all personnel to attend. These meeting are held in accordance
with Northern Offshore SMS (Section HOLD)
All drill, deck and marine crews and relevant service contractors are
to attend pre-tour safety meetings. These meetings will be conducted
in accordance with Northern Offshore SMS (Section HOLD).
The Premier Drilling Supervisor will hold a daily meeting with all
service contractor personnel including Northern Offshore senior
representatives to discuss operational and safety issues.
The Premier Drilling Supervisor will attend a daily Northern
Offshore management meeting to discuss programmed operations
and safety issues related to these operations.
190f37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
525C21
Premier Oil Australasia
3.5. Employee Selection, Competency and Training
PREMIER: The selection, training and competency requirements for Premier personnel
are identified in the HSE Management System Description (Section 5) and
Australasia Drilling Management Manual. A training schedule is maintained
in the HSE Plan (attachment 6.6). All new personnel undertake an induction
program.
NORTHERN: The principal employee selection criteria, competency requirements,
assessments and training details are addressed in the Northern Offshore
Human Resources Manual.
All new personnel undertake the Northem Offshore onboard induction
program to understand the safety roles, responsibilities and reporting
requirements. This requirement is documented in the Safety Management
Manual (Section HOLD).
LINKS:
1. Premier and Northern Offshore have independent systems for
managing employee selection, competency and training.
P:\ops\bass\sms\BRIDGE1.DOC
2.
3.
An induction briefing is conducted for all personnel amvmg
onboard in accordance with Safety Management Manual (Section
HOLD), including a basic introduction to Premier's SMS pertinent
to Premier and service contractor personnel.
Premier will conduct an on-shore and off-shore pre-spud meeting.
The safety issues specific to the well will be discussed at these
meetings.
20of)7
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.6. Contractors and Support Services
525022
Premier Oil Australasia
PREMIER: Contractor safety management is an integral part of the Premier tender
selection process (Contractors and Support Services). Ongoing contractor
performance reviews and audits are conducted in accordance with this
procedure.
NORTHERN: All personnel onboard the vessel are required to conform with the relevant
legislation and work in accordance with the Northern Offshore SMS and this
Bridging Document.
LINKS:
P: \ops\bass\sms\BRIDGEI.OOC
1.
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3.
4.
All contractors onboard the vessel are required to conform with the
relevant legislation and work in accordance with the Northern
Offshore Safety Management Manual (Section HOLD).
All onboard contractors will attend an induction briefing.
The Premier Drilling Supervisor will hold a daily meeting with all
service contractor personnel to discuss operational and safety issues.
Supply vessel representatives are encouraged to attend weekly safety
meetings ifthey are on board the vessel.
21007
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.7. Design, Construction and Commissioning
525023
Premier Oil Australasia
PREMIER: All well casing designs are prepared in accordance with the P(SL)A (1995)
clause 503, well casing. The processes identify planning, preparation, design
and risk management requirements. Risk management measures are
documented in the HSE Management System Description (Section 7).
Specific well hazards are communicated in the Drilling Program [4].
NORTHERN: Design integrity of the vessel is primarily controlled through regulatory
authority guidance, classification rules, legislation, flag state requirements
and compliance with Northern Offshore guidance provided in Safety
Management Manual (Section HOLD mgmt of change). Notifications
management is controlled by modifications approval which ensures that a
technical, safety and quality review is performed prior to the start of any
qualified modification.
LINKS:
P:\0p5\bass\smsIBRlDGE1.DOC
1.
No modifications are required to the Northern Explorer III during
this program.
22 of 37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.8. Safe Operational Procedures
525024
Premier Oil Australasia
PREMIER: The Premier Drilling Program [4] and Drilling Emergency Response Plan [5]
are the principal documents for managing risk by Premier. Integrated
Services, helicopter and vessel operations are covered by Premier Procedure
(Contractors and Support Services).
NORTHERN: Northern Offshore have extensive safe operating procedures and safe work
practices will be utilised during the drilling ofYolla-2. These include:
Technical and operational procedures (Drilling & Marine);
Permit to Work system; and
Well control procedures;
LINKS:
P:\ops\bass\sms\BRIDGEI,OOC
I.
2.
3.
4.
5.
6.
Northern Offshore safe operating procedures and safe work practices
will be utilised during the drilling ofYolla-2.
Northern Offshore Permit to Work system will apply for the Yolla-2
well. Personnel will be instructed in the Northern Offshore
procedural content in accordance with Section 3.5 of this document.
Premier Drilling Supervisor will counter sign on all hot work
permits.
Well control procedures as outlined in the Northern Offshore Well
Control Manual will apply during the Yolla-2 well. The shut-in
procedures are to be posted on the drill floor.
A pre-spud meeting will be held with Northern Offshore, Premier
and Supply vessel owners and Raced supervisory personnel to
discuss specific details of anchoring and rig move operations.
Helicopter operations will be conducted in accordance with Lloyd's
operating procedures.
Helicopter landing operations on the Northern Explorer III are in
accordance with the Northern Offshore Marine Operations Manual
(Section HOLD).
230{37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
525025
Premier Oil Australasia
3.9. Maintenance, Inspection, Testing and Modification
PREMIER: Premier have reviewed the Northern Offshore modification procedures and
maintenance program in accordance with HSE Management System
Description (Section 9).
NORTHERN: Northern Offshore has a planned maintenance system (PMS) covering the
marine and drilling equipment onboard the vessel. A computerised system is
currently being implemented. All safety critical equipment on board is tested
on a regular schedule as defined by regulations and class certification
requirements.
LINKS:
P: \ops\bass\sms\BRIIXiE1.00c
I.
2.
3.
Northem Offshore Safety Management Manual (Section HOLD)
applies to the inspection and acceptance of service contractor
equipment for installation onboard the rig.
Weekly vessel inspections are to be conducted and completed forms
submitted to Premier.
All safety systems and devices must be fully operational or used
with a permit to work.
240(37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.10. Management of Change
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Premier Oil Australasia
PREMIER: Premier's management of change procedures (Management of Change -
Premier SMS) document the requirement for temporary or permanent
organisational, procedural or hardware changes to be controlled. The
objective is to provide a system that ensures that any proposed change which
may affect safety is thoroughly assessed prior to implementation.
NORTHERN: Hardware modifications, including change due to third party equipment
installations, are controlled by Northern Offshore Marine Operations Manual
(Section HOLD). Modification of procedures is controlled by the Safety
Management Manual (Section HOLD).
LINKS:
P:\ops\bass\sms\BRlDGEI,DOC
I.
2.
All revisions to the Drilling Program will be provided in writing to
Northern Offshore
All changes to the shorebase management structure (Premier or
Northern Offshore) will be communicated in writing to the vessel
and the other (Premier or Northern Offshore) company.
2'of37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.11. Health System
Premier Oil Australasia
PREMIER: Premier's Health System is described in the HSE procedure Health System.
Specific items which are discussed include the provision ofMSDS, protective
clothing requirements, respiratory and hearing protection, handling, storage
and transport of hazardous materials.
NORTHERN: The procedures by which Northern Offshore monitor and control the health
and welfare of their employees are discussed in the Safety management
Manual (Section HOLD).
Hazardous substances stored or handled on the Northern Explorer III are
detailed in the Vessel Safety Case.
LINKS:
P:\ops\bass\sms\BRlDGE1,roc
1. All personnel onboard Northern Explorer III will be required to
conform with the relevant legislation and the Northern Offshore
SMS.
260f37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.12. Emergency Response
525028
Premier Oil Australasia
PREMIER: Premier has a fully developed Emergency Response Plan [5] for
Yolla-2.
NORTHERN: Northern Offshore has an established Emergency Response Manual [10]
which details the emergency management arrangements both offshore and
onshore.
LINKS:
P: \ops\bass\sms\BRJDGEI.DOC
1.
2.
3.
4.
5.
6.
The Premier Emergency Response Plan For Offshore Operations [5]
will apply for shorebase response to an emergency onboard the
Northern Explorer III. A copy of this plan is provided to Northern
Offshore.
The Northern Offshore Emergency Response Manual will apply
guidance on actions to be taken on board in the event of an
emergency.
At least one scheduled emergency response drill will be conducted
each week during the program.
The prime response to an emergency situation is directed by the PIC
who has authority to take whatever measures are necessary to ensure
the safety of personnel on the unit.
The Premier Project Drilling Engineer shall ensure adequate
communications are established with the Premier Emergency
Response Team in Perth.
The Northern Offshore Well Control Manual [8] is to be applied
during the drilling operation.
270f37
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.13. Incident Investigation and Reporting
525C29
Premier Oil Australasia
PREMIER: The Premier Drilling Supervisor is responsible for ensuring incident reports
and investigations are forwarded to Premier in accordance with the Premier
Oil Incident Investigation and Reporting Procedure.
NORTHERN: The reporting of accidents, incidents and near misses is accomplished by the
Northern Offshore Incident and Investigation Reporting procedure, Safety
Management Manual (Section HOLD).
LINKS:
P:\ops\bass\sms\BRIDGEl.DOC
I.
2.
3.
4.
All incidents onboard the Northern Explorer III will be investigated
jointly by Northem Offshore and Premier.
All incidents onboard the Supply Vessels will be investigated jointly
by Vessel owners and Premier.
The results of all investigations will be presented to personnel at the
safety meetings.
A copy of Northern Offshore or supply vessel owners incident
reports will be forwarded to Premier.
28ofl7
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
3.14. Performance Audit and Review
525C30
Premier Oil Australasia
PREMIER: Premier audit guidelines are provided in the Audit and Review Procedure and
the HSE Plan. The audit schedule is included in the HSE Plan.
NORTHERN: The scope, procedures and schedule for audits is addressed in the Safety
Management Manual (Section HOLD).
LINKS:
P:\ops\bass\sms\BRIDGEl.OOC
1.
2.
3.
SMS audits conducted during the well will comply with Northern
Offshore audit procedure. The audit teams may include both
Northern Offshore and Premier personnel.
Premier will conduct audits in accordance with the audit schedule
provided in the HSE plan.
Corrective actions from any SMS audit will be communicated to
both Northern Offshore and Premier personnel onboard.
29 on?
BRIDGING DOCUMENT
Northern Explorer III - Yolla-2
4. Formal Safety Assessment
4.1. Method
525C31
Premier Oil Australasia
1. The Formal Safety Assessment for the Northern Explorer III has been reviewed.
2. The identified well hazards have been documented in the Drilling Program [4].
4.2. Assessment
A review of the Northern Explorer III Formal Safety Assessment established that the
operations associated with Yolla-2 are within the parameters defined in the Formal Safety
Assessment described in the Vessel Safety Case.
The risks associated with passing vessel collisions have not been assessed in the FSA
beyond the provision of a methodology to determine the risks (no site specific shipping
traffic data is available). As a result of this and presence of a standby vessel, the risk
associated with this event is considered to be minimal. As Northern Offshore have
established watch and vessel monitoring procedures in place and the equipment to accurately
monitor ship movements it is proposed that a record of passing vessels be maintained and
this assessment be revised after 30 days on location.
P:\ops\bass\sITlS\BRIOOEI.DOC
30of37
J
BRIDGING DOCUMENT
Northern Explorer ill
1 )
WELL HAZARD ASSESSMENT Premier Oil Australasia
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525032
Well Name: Yolla-2 PhaselHole Section: SITE PREPARATIONIRIG MOVE
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1.1 Heavy Weather 0 Rig Evacuation 0 Premier heavy weather procedures 0 Timing (March - June) 0
Follow heavy weather H (OS)
in ERP. procedures
1.2 Anchors - pennant 0 Reposition Anchors 0 Remove the chain connecting the 0
Check anchoring procedure I (OS)
wrapped around anchor pennant wire to the chain chaser and inspect equipment prior to
collar. anchor handling.
1.3 Anchor slipping during 0 Lost time due to re- o Allow anchors to "soak" prior to 0
Review anchor contingency I (OS)
pretensioing running the anchor applying tensions. equipment requirements.
0 Ensure piggy-back anchors are 0
Review site survey over
available on location. Yolla-2 location.
II
CODE: (H) = HAZARD (I) - ISSUE (OS) - DRILLING SUPERVISOR (DE) = DRILLING ENGINEER
JlolJ7
1
BRIDGING DOCUMENT
Northern Explorer ill WELL HAZARD ASSESSMENT Premier Oil Australasia
525033
J
Well Name: Yolla-2 Phase/Hole Section: 36in HOLE/30in CONDUCTOR (91m - 138m)
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2.1 Hard Seabed
Bit skidding
Conventional hole opener
Spud well with I (DE)
Ledges
(26" 136") conventional or tandem HO
Slow drilling
Use tandem HO arms
Review site survey data
.
Deviation
Use Lowest WOB
Unable to run
practical
conductor
2.2 Shallow Gas
Gas to seabed
Drill pilot hole
Not a regional problem.
Prior to moving rig off H (DSlDE)
N.O. Procedures to be
High conductorlPGB
angle
2.4 Visibility
Unable to re-Iocate
Spud Procedures
ROY deployed hole locators
TGB available I (DE)
hole
TGB contingency
to be used
2.5 Deviation
BOP, riser, drillpipe
Measure and control
No significant seafloor angle
Monitor guidebase I (DE)
aqd casing wear deviation at spud in this area. bullseyes.
Increased conductor
Re-spud ifPGB angle
Take totco survey at TO
stresses exceeds 1.5 degrees
Use tandem HO
necessary
Deviation
monitor downhole
and Supplementary Drilling
vibrations. Adjust
Programme
parameters accordingly.
Review BHA design
Maintain frequent
Use ofMWD VSS
additions of oxygen
scavenger in seawater.
Corrosion inhibitor
CODE: (H) - HAZARD (I) : ISSUE
P:\opt\bMs....\BIUDGEI.DOC
(OS) - DRILLING SUPERVISOR (DE): DRILLING ENGINEER
JJ of)7
BRIDGING DOCUMENT
Northern Explorer III
1
WELL HAZARD ASSESSMENT Premier Oil Australasia
525035
Well Name: Yolla-2 PhaselHole Section: 12.25in HOLE/9.625in CASING (700m - 3350mRT)
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4.1 Losses
Lost circulation
Use KCL I PHPA mud
Use inhibitive mud system. I (DE)
PackedBHA
motor drilling. monitor downhole slipstick
corrosion rate
Motor drill
vibration, and modify
drilling parameters to
Corrosion inhibitor
and Supplementary Drilling
Programme
4.3 Casing Setting Depth
Poor FIT
Review ROP changes of I (DE)
CODE: (H) - HAZARD (I) - ISSUE (DS) - DRILLING SUPERVISOR (DE) - DRILLING ENGINEER
.M of)7
BRIDGING DOCUMENT
Northern Explorer III
J
WELL HAZARD ASSESSMENT
J
525036
Premier Oil Australasia
Well Name: Yolla-2 Phase/Hole Section: 12.25in HOLE/9.625in CASING (700m - 3350mRT)
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4.5 Bit deterioration in
Shortened bit runs
Run tri-cone bits
Use VSS to optimise I(DE)
hard stringers I chert
More trips
RunPDC bits
drilling parameter.
More trips
Run PDCs with large
Use glycol mud
junk slot area.
Consider anti-balling
Monitoring ofpore
pressure indicators
Crew awareness