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University of Stavanger

MOM 490
“Marine Operations”

Project Report
“Qualitative risk acceptance criteria applied to underwater
Equipment installation in Nigeria”
16.12.2011
(CONFIDENTIAL INFORMATION FROM SHELL NIGERIA)

Nwokocha Chigozie Cyril
Student number: 210630

ABSTRACT

The use of risk acceptance criteria as a yardstick for operations in various oil regions of the
world has been welcomed by some experts while some have argued its continued usage.
This report evaluates the qualitative risk acceptance criteria that are applied to underwater
equipment installation in Nigeria. Evaluation of these criteria is very important because
Nigeria is an important player when it comes to oil and gas and anything that affects
operation in Nigeria will definitely affect the global oil supply and thus the price of oil in the
world market. There have been several attacks by militants on several offshore installations in
Nigeria and this has led to occasional shutdown of facilities. These attacks have affected the
risk acceptance criteria when it comes to personnel and assets in Offshore Nigeria. This
report will help in showing the risk acceptance criteria adopted by the oil and gas operators in
Nigeria but more especially the criteria that are applied to the installation of subsea
equipment.
In this report, I will identify the potential risk associated with underwater equipment
installation in Nigeria and make use of different risk parameters to show the acceptance
criteria. Some of the tools which I will consider are FAR, Risk Matrix, ALARP and so on.
I will try to use my results/findings to propose some risk reducing measures that will help to
meet the acceptance criteria set up by the authority. I will also use my result to compare what
is obtainable in other oil and gas countries.

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Table of content
Abstract ………………………………………………………………………………………………………………………………………2
Table of Content ……………………………………………………………………………………………………………………………..3

Chapter 1
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Introduction ……………………………………………………………………………………………………………………………5
Definition of terms ………………………………………………………………………………………………………………….5
Overview of Nigeria Offshore Industry…………………………………………………………………………………….6

Chapter 2
-

What is risk analysis? ……………………………………………………………………………………………………………10
Dimensions of risk…………………………………………………………………………………………………………………11
Risk Management …………………………………………………………………………………………………………………11
Methodologies for risk analysis ……………………………………………………………………………………………11
Qualitative vs Quantitative risk analysis…………………………………………………………………………………14

Chapter 3
Parameters for risk acceptance criteria……………………………………………………………………………………………16
- PLL ……………………………………………………………………………………………………………………………………..…16
- FAR and AIR……………………………………………………………………………………………………………..……………16
- F-N Curve………………………………………………………………………………………………………………………………17
- RISK Matrix……………………………………………………………………………………………………………………………18
- ALARP……………………………………………………………………………………………………………………………………19

Chapter 4
-

Underwater equipment installation in Nigeria………………………………………………………………………21
Overview of HSE issues in Nigeria offshore industry……………………………………..………………………21
Risk Acceptance Criteria for personnel………………………………………………………….………………………24
Risk Acceptance Criteria for asset……………………………………………………………….…………………………24
Risk Acceptance Criteria for the environment………………………………………….……………………………25
Additional concerns ………………………………………………………………………………..……………………………26
Conclusion and recommendation …………………………………………………………………………………………26

Reference ……………………………………………………………………………………………………………………………………….28
Appendix A -FPSO Offshore Nigeria…………………………………………………………………………………………….……30
Appendix B -Job Hazard Analysis from Shell Nigeria…………………………………………………………………………32

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FIGURES Figure 1: Oil Fields Offshore Nigeria…………………………………………………………8 Figure 2: Fault Tree Diagram for failure of braking system…………………………………13 Figure 3: Event Tree Diagram………………………………………………………….……17 Figure 5: ALARP Diagram……………………………………………………………….……14 Figure 4: F-N Curve……………………………………………………………………..…18 Table 4 : Environmental Risk Acceptance criteria ……………………………………………………………….25 4 ..…20 Tables Table 1: Main categories of risk analysis method………………………………………………………………………10 Table 2: 5 x 5 Risk Matrix……………………………………………………………………………………………………………18 Table 3: Risk categories…………………………………………………………………………………………………………….….

causes and consequences of these initiating events. health.According to international standard (ISO. Definition of terms There are some technical terms which one will come across as one reads through this project. gulf of Mexico. “Risk is a combination of the probability of an event and its consequences”. [1. the quest for more crude oil to satisfy the energy-hungry.Hazard identification studies 5 . Most of the present day oil and gas discoveries are found in these harsh environment and getting these oil and gas deposits from there location can be quite challenging. Below are the meaning of some abbreviations and the definition of some concepts. These disasters have prompted regulatory authorities and operating companies to modify their safety rules so that such disaster will never happen again or to reduce the consequence of such disaster. Present day advances in science and technology has proved that the location of the oil and gas does not actually matter. Due to the fact that most oil and gas deposits are offshore. and ever increasing world population. safety and environment (HSE) issues were not taken seriously until some fatal disasters were recorded like the Piper Alpha. Alexander kielland. The increased risk and safety concern especially offshore has made the regulatory bodies to adopt strict risk acceptance criteria for operations in offshore oil and gas installations. Risk. and express risk” [2. has driven many companies into harsh and challenging environment like the north sea. 2002). the gulf of guinea and so on. 6] Risk analysis – “systematic use of information to identify initiating events. Macondo blowout and so on. In recent years. the demand for energy and basically. This project will focus of the qualitative risk acceptance criteria for underwater equipment installation in offshore Nigeria. Because of the decrease in world oil reserves in the conventional onshore fields. the arctic . provided that the right equipments and personnel are employed. oil and its derivatives is also on the increase. [2. p15] Risk management – “Is defined as all measures and activities carried out to manage risk”. p184] HAZID. the risk in getting them has increased tremendously.CHAPTER 1 Introduction As the world population continues to increase.

Hazard operability studies QRA – Quantitative risk assessment JHA – Job hazard analysis FMEA – failure mode and effect analysis FMECA – failure mode. At this period. when Nigeria admitted more E & P companies like Gulf oil (Chevron).HAZOP. Intensive geological. The second attempt was by Shell D’Arcy (forerunner of Shell Petroleum Development Company of Nigeria) in 1937. all the operations were limited only to land and shallow offshore Nigeria. Mobil Production Nigeria. Sunray-Tenneco. Amoseas (Texaco). geophysical surveys 6 . Reconnaissance work by Shell and BP geological team. Occidental. effect and criticality analysis FAR. 1908-1966 1908-1914 1937-1940 1946-1951 Shallow drilling by Nigerian Bitumen Corporation down dip from heavy oil seeps in outcrops of the Cretaceous sands. east of the Niger Delta. but this was terminated by the First World War. Shell retained the sole right for the exploration and production of crude oil in Nigeria until 1961. This attempt was equally terminated by the Second World War in 1939. Below is a summary of the history of oil industry in Nigeria at the early stage of the industry: SUMMARY OF THE HISTORY OF OIL INDUSTRY ACTIVITY IN THE NIGER DELTA AND ITS SURROUNDINGS. The first commercial discovery of oil and gas in Nigeria was made by Shell in 1956 at the Oloibiri field.fatal accident rate AIR – average individual risk ALARP – As low as reasonably practicable OPL – Oil prospecting Licence EIA – Environmental Impact Assessment Overview of Nigeria Offshore industry “Oil exploration in Nigeria began as far back as 1908 with the enactment of the Mineral oil ordinance” [3. p2] The first attempt was by Nigerian Bitumen Company. Agip and Safrap (ELF).

Anticipating that reserves offshore west Africa would at least be similar to those across the Atlantic in Brazilian Campos and Santos basins. SAFRAP developed their discovery at Obagi. Shell-BP and Gulf. Government opened up the Nigeria deepwater area for competitive bidding for oil prospecting licences (OPL). Phillips joined Search for oil [4.000 b/d at end 1965 and carried out appraisal drilling in the Delta South field. Shell-BP drilled Cretaceous prospects along the frame of the Niger Delta with disappointing results First oil show in the Tertiary Niger Delta in Shell-BP's Akata-1 well First commercial oil discovery by ShellBP in the Tertiary (Oloibiri). detailed exploration campaign. ShellBP.1951 1952-1955 1953 1956 1956-1961 1961-1962 1962-1966 by Shell-BP prior to first deep test. Tenneco were granted licences in these areas Offshore: regional exploration phase. The first competitive bidding rounds were announced in October 1990 and this led to the award of 18 deepwater blocks” [3. AGIP. deepwater operations are indispensible to the future of Nigeria oil and gas industry and to the economy of Nigeria in general because oil 7 .884 square miles of former prospecting licences . Onshore: Shell-BP increased production from 47. dry. 1963 first oil discovery offshore by Amoseas (Kulama). SAFRAP. Tenneco and Gulf appraised various discoveries. Amoseas. AGIP. Extensive regional exploration activity in the Tertiary Niger Delta Oil Province by Shell-BP. Shell-BP’s first deep test. Other discoveries made by Mobil. Offshore: licences granted to Gulf.000 b/d by end 1965 and carried out an intensive. Because the focus of exploration and field development by the oil and gas companies in Nigeria is shifting from onshore to offshore. p6 and p7] “The potential for the Nigerian deepwater was not recognised until the 1970’s. Amoseas carried out appraisal drilling in the Pennington field. p2] The government in 1993 also gave discretionary awards apart from the first competitive bidding rounds for OPL which was between 1990 and 1991. Mobil. Onshore: Shell-BP selected Oil Mining Leases and surrendered some 23. Gulf. Gulf developed Okan field which produced 48. for instance.000 b/d in 1961 to 300.

reserves 0.5bn barrels). water depth. In spite of the numerous challenges in the Nigeria offshore oil and gas industry. and shallowwater operations. Total’s Akpo – 1 field (re-estimated to 1bn barrels of oil & 4 tcf gas) Joint Development Zone between Sao Tome & Principe and Nigeria (est. these among others include – distance from supply base. 1bn barrels).export makes up a large portion of the government’s revenue. it is highly likely that production activities in some the finds listed above will all reach full throttle within the next 5 years [5. [5.7bn) ChevronTexaco’s Agbami field (est. lack of well data etc. Some of these discoveries are listed below –      “ExxonMobil’s Erha field (est. Shell’s Bonga field (est. p2] Most of the offshore/deepwater projects in Nigeria utilize floating production storage and offloading (FPSO) with subsea wells because of the lack of infrastructure in the Nigeria 8 . swamp. many giant discoveries have progressed into major development projects requiring advanced technologies to handle them and creating thousands of jobs for Nigerians. There are a number of challenges facing the Nigerian offshore oil and gas industry. lack of 3D seismic.p2] FIGURE 1 – OIL FIELDS OFFSHORE NIGERIA [6] With the increase in social and environmental challenges facing land. reserves 0. reserves of 11bn & 3mbpd production)”.

deepwater. and of those affected by deep water opportunities. Exploration will reveal more reserves in more places. in a high-tech environment. p10] 9 . There will be success and there will be disappointment. Government. with multi-billion dollar funding requirements. The basin holds the key to the future growth aspirations of the nation’s reserve base and production (4 million bbl/d. and all stakeholders and this must be viewed by all from both local and global perspectives [3. are met equitably. 40 Billion bbl Reserves). The industry’s capabilities will evolve further and we will acquire the ability to move into deeper water. The key challenge will be to convert deepwater oil and gas resources into optimum value for all stakeholders and to ensure that the needs and aspirations of all those involved in deep water opportunities. The future looks bright in the deepwater of Nigeria for the oil and gas industry. The first deepwater discovery in Nigeria was the Bonga field and extensive feasibility studies were carried out during the development phase of the field. Geological and Commercial risks remain. a world class Oil and Gas basin has been established in the Nigeria deepwater. Government and industry recognize these risks and are working together to manage them. Safety and environmental expectations will rise and the business environment will be increasingly competitive. Within 1995 –2002.

installation. Risk matrices are often used to present the results. construction phase.g. The main purpose of conducting risk analysis should be to support decision-making in the face of uncertainties. transportation. detailed planning phase. 2008. Model-based risk analysis makes use of techniques such as event tree analysis and fault tree analysis to Calculate risk 10 . companies perform risk analysis in order to satisfy regulatory requirements but this should not be the main reason for such analysis. compare alternatives in terms of risk. The risk might be presented on a coarse scale e. p5] Risk analysis can be performed at different phases in the life cycle of a system. p4] Main category Type of analysis Description Simplified risk Analysis Qualitative Simplified risk analysis is an informal procedure that establishes the risk picture using Brainstorming sessions and group discussions. moderate or large. low. there are three main categories of risk analysis methods: simplified risk analysis. standard risk analysis and model-based risk analysis. Such as HAZOP and coarse risk analysis. In majority of the cases. Standard risk Analysis Qualitative or quantitative Model-based risk Analysis Primarily quantitative Standard risk analysis is a more formalised procedure in which recognised risk analysis methods are used. These phases include planning or early phase. identify critical factors with respect to risk and also demonstrate the effect of various measures on risk [2. T. According to Aven. These are described in the table below - Table 1 – Main categories of risk analysis methods [2.CHAPTER 2 What is Risk Analysis? This is the means through which risk can be described. to name a few. It is usually carried out in order to establish a risk picture. operation and decommissioning phases. Risk analysis helps companies in finding the right balance between safety and the cost of safety. making no use of formalised risk analysis methods.

p6]: Risk management is divided into three (3) main categories. the environment. The different dimensions and their categories are as follows: - Personnel risk Fatality Impairment risk - Environmental risk - Asset risk Material damage risk Production delay risk [1. The consequences of an accident maybe related to personnel. accidents and disasters on the other [7. (3) Operational risk relates to the normal operating situation in the company. (2) Financial risk relates to the company financial situation and it may be outside the company´s control.Dimensions of risk This refers to various aspects of a system that can be affected by an accident or exposed to risk. This analysis is usually by dividing the analysis subject into units and then performing the risk analysis for each of the 11 . Risk management deal with balancing the conflicts inherent in exploring opportunities on the one hand and avoiding losses. which are – 1) Strategic risk 2) Financial risk 3) Operational risk (1) Strategic risk comprises factors that are related to long –term strategy of the company. assets as well as production capacity. Methodologies for risk analysis There are different methods used in risk analysis and the method that is chosen for a particular situation depends on the reason why the risk analysis is being carried out. p16] Risk Management This refers to all measures that are carved out to manage risk. Risk analysis methodology/technique chosen can be qualitative or quantitative. The above aspects are regarded as the dimensions of risk because they can be affected when we have an accident. According to [2. 2007). Some of the methodologies for risk analysis are as follows: a) Coarse Risk Analysis This is also known as preliminary risk analysis.

This method analyses the risk potentials of a possible deviation from original/design specifications of a system. It is a risk analysis methodology which is used in identifying hazards that are associated with a task/job that is to be performed. e) SWIFT Structured What-if technique (SWIFT) is a risk analysis method in which there is systematic use of “what-if” in order to identify deviations from normal condition.units. This method systematically reveals the important failure of a system and so it can be used in evaluating how reliable the system is. to the overall performance of the system. It can also be used as precursor for more detailed quantitative analysis. HAZOP can be used in many industries although it was originally developed for chemical processing industries. If the critical nature of the failures is described the method is known as FMECA – Failure modes effect and critical analysis. 12 . This method makes use of a checklist like HAZOP but it is a bit more flexible and can easily be adapted to the application. This analysis is usually done by a team of 3 – 10 persons. JSA is a qualitative risk analysis method and it is check-list based. This is carried out by a team and it helps in identifying possible problems so that risk-reducing measures can be implemented accordingly. In FMEA. b) Job Safety Analysis (JSA) This is also known as Job Hazard Analysis (JHA) or Job Risk Assessment (JRA). d) HAZOP – Hazard Operability This is a qualitative risk analysis method which is used in identifying the possible hazards in a processing unit. This method is carried out by a group of personnel with a HAZOP leader. It is used in analyzing the failure of a technical system. consequences and recommendations/decisions. The main aim of the preliminary risk analysis is to establish a crude risk analysis. FMEA shows how significant the failure of a component can be. technical failures are analyzed while the human failures are overlooked and this method is not suitable for a system that has much redundancy. The method makes use of the work sheet to document deviations. c) FMEA/FMECA – Failure Mode and effect (Critical) Analysis This is a risk analysis method developed in the 1950s and it’s a simple method which shows you possible failures that can happen to a unit of a system and it predicts the failure effect on the entire system. A sample of the JHA is presented later in the project and in Appendix A. other methods can be used to assess the situation in detail. Because the Preliminary risk analysis identifies the casual picture. causes of the deviations.

The unwanted event constitutes the top event of the tree while the various component failures constitute the basic events of the tree. maintenance. p165] 13 . such as process interventions.[1. Fault tree is a logical diagram which shows the relation between system failure and failure of the individual component of the system. The fault tree comprises of graphical symbols showing the basic events of the system and the relation between them and the state of the system. crane operations. A fault tree can also be represented by a reliability block diagram if consists only “And” and “Or” gates. A simple fault tree is shown in the figure below by using the braking system of a car: FIGURE 2 – FAULT TREE DIAGRAM FOR FAILURE OF BRAKING SYSTEM [8] g) SAFOP This is a modified version of HAZOP technique and it is used to analyze work processes and procedures in order to identify and evaluate risk factors. marine activities.f) Fault Tree Analysis This is one of the most used risk analysis method and it has found application in many industries. SAFOP is a powerful tool for risk assessment of new (planned) or changed operations and is applicable for all activities where a procedure will be used. material handling.

Qualitative and Quantitative Risk Analysis There are two broad categories to which most of the risk analysis methods fall – qualitative risk analysis or quantitative risk analysis. Monte Carlo Simulation. since it borrows characteristics from both the quantitative and qualitative risk analysis methods. Of the three approaches. as well as assets and resources which are vulnerable to these risks. “Quantitative risk analysis is designed so that the security measures can be implemented. and is therefore used the most often. etc.EVENT TREE DIAGRAM [9] Other risk analysis methods are Bayesian network. ETA provides a picture of the possible scenarios but if used quantitatively. Bow-tie analysis. Not only does qualitative analysis 14 . A simple event tree is shown below: FIGURE 3. probabilities are assigned to various events and their consequences. and this will allow the cost envelope to be implemented as well. If used qualitatively.h) Event Tree Analysis (ETA) This analysis is used in studying the different scenarios which initiating events can produce. There is yet a third method for risk analysis which is used and this is referred to as being the hybrid method. the qualitative analysis is the most simple to use. Qualitative analysis is useful because it allows one to quickly identify potential risks.

and it is often not necessary to know the value of all the assets in question. At the same time. it is also capable of identifying the envelopes for which both safeguards and losses can be found. and one which will increase awareness among the necessary members of the organization. values. it will show those which could be useful if they are implemented. While quantitative analysis does many of the same things which can be found with qualitative analysis. and it uses metrics which require it to have a high level of effort put into it. as well as probabilities.”[10] 15 . Now that we've gone over the two primary tools which are used for risk analysis. it is next important to learn a little bit about the methodology which is associated with them.showcase the safety measures that have already been utilized. and which expresses percentages. The goal of qualitative risk analysis is to gain a level of risk protection which is acceptable. It is based on a process which is highly subjective. This analysis will often make use of calculations which are fairly basic. quantitative analysis is capable of presenting data in a manner which is friendly for management.

it is easy for non-experts to understand. “PLL =0. In some situations.1 does not imply that 10% of a person is dead! Such a value may be illustrated by expressing it as 10% probability of one fatality. FAR value is the number of fatalities in a group per 100 million exposed hours. 70] The PLL value will often favor the development concept that has the lowest manning level resulting from the lower number of individual exposed to risk. PLL can be used as a decision-making aid because it is not usually common to define an acceptance limit for it. Some of the risk acceptance criteria which are used in the oil and gas are as follows: a) b) c) d) e) PLL AIR and FAR F-N Curve Risk Matrix ALARP a) PLL (Potential Loss of Life) This is the number of fatalities experienced in a period. Because PLL expresses absolute level of Fatalities. for instance in a year. FAR and AIR can be expressed mathematically by the expression below: 16 . 108 AIR value is the average number of fatalities per exposed individual. This underlines the fact that one way to reduce societal risk is to limit the number of personnel exposed to risk. although this is slightly imprecise.” [1. b) FAR and AIR FAR is known as fatal accident rate while AIR is the average individual risk. because there is also a small probability of more than one fatality.CHAPTER 3 PARAMETERS FOR RISK ACCEPTANCE CRITERIA There are different risk acceptance criteria which are used in various industries. It is not easy to express PLL in physical terms. The RAC that is chosen may also depend on the provision of the laws governing the industries. because the values are usually less than 1.

FIGURE 4 . Group risk is used to express the risk on society or affected members of a society. The frequency here is thus cumulative frequency. The F-N curve expresses the frequency of accidents with N-fatalities or more and below is an example. Since the most common measure of risk is risk to individuals. The exposed hours can be hours on duty or total hours on the installations. c) F-N Curve This is used in expressing group risk. the society is interested on the effects of accidents on the society. it is sometimes necessary to express an acceptance criterion for group risk.F-N CURVE [11] 17 . Although acceptance criteria are usually expressed for individual risk.FAR and AIR values can be calculated as average values for entire personnel on an installation or personnel on specific area on the installation.

It can be used to define the ALARP region where risk reducing measures are needed before an operation can take place. It can be used to show risk level that is negligible. An example of this is shown in table 2 below with explanation of the risk levels shown in table 3. Table 2. it is advisable to make use of 5 * 5 risk matrix. manageable or intolerable.d) Risk Matrix This is a qualitative risk evaluation tool which can be used to show consequences and probability of occurrence of an accident.5*5 Risk matrix [12] Table 3.Risk categories [12] 18 . In order to capture all the risk aspects in a given situation.

[13] The figure below shows the different aspects in the ALARP principle. If the risks are still not well understood a more precautionary approach should be adopted when judging what risk reduction measures are reasonably practicable. “Intolerable Region Adverse risks are intolerable whatever benefits the activity may bring and risk reduction measures are essential whatever the cost. [13] ALARP can be used as a qualitative measure of risk and the guidance below can be used in this regard     “Use of best available technology capable of being installed. this concept of ALARP can be used for setting a value for acceptable risk. ALARP principle also stipulates that the cost. [14] 19 .e) ALARP This is a concept which stipulates that risk should be reduced to a level that is “As low as reasonably practicable”. while risks may be significant. or so small that no risk treatment measures are needed”. i. Use of the best operations and maintenance management systems relevant to safety. they are tolerable in light of the potential benefits Broadly Acceptable Region Positive or negative risks are negligible. hazards which have a high consequence should be scrutinized more carefully than those that have a low consequence”. however. The lack of evidence about the effects of a hazard is not a justification for taking no action to reduce risk.e. operated and maintained in the work environment by the people prepared to work in that environment. Exposure of employees to a low level of risk”. effort and time needed to reduce risk should not be grossly disproportionate when compared to the safety level that is being achieved. It is not easy to specify an acceptable level of risk due to the subjective nature of risk which makes it hard to do so. “When a risk is not well understood it should be analysed and assessed in detail before making the ALARP judgment. In general. ALARP or Tolerable Region Risks are "As Low As Reasonable Practicable". Maintenance of the equipment and management systems to a high standard. This concept provides the framework for finding a balance between safety and the level of investment needed for the actualization of the safety goals.

FIGURE 5 – ALARP DIAGRAM [14] 20 .

The developments that are going on presently are immense and it is an important industry for the region as well as the country as a whole. whether land. The subsea installations are tied back to the FPSO. transportation. majority of the fields make use of FPSO (Floating Production Storage and Offloading) that is shaped like a barge. Some of the vessels operating offshore Nigeria is shown in Appendix A. as well as offshore locations in the Atlantic Ocean. Other operations involved in are sea fastening. as well as. However. offshore Nigeria.CHAPTER 4 Underwater equipment installation in Offshore Nigeria Offshore Nigeria is an important aspect of the Nigerian oil and gas industry. present unique health. installation. the swap jungle location of the Niger Delta. to the Government regulators. lifting. in deep or shallow waters. Each terrain. piling and so on. During underwater equipment installation. OVERVIEW OF HSE ISSUES IN NIGERIA OIL AND GAS INDUSTRY “Since crude oil was first discovered in commercial quantities in the Country. Most of the oil fields offshore Nigeria that is in the production phase has a great deal of subsea development. both in the shallow water and deep water off the coast of Niger Delta which is the main oil and gas region in Nigeria. in 1956. Nigerian oil and gas exploration and production activities have steadily increased as petroleum assumed strategic importance in the nation's economy. but the choice of any of this should be such that it will not hit resonance with the swells. Because of the swells which are predominant in this region. 21 . crude oil and gas are found and produced in Nigeria sometimes in very hostile and unfavourable environments. Underwater equipment installation in Nigeria is usually performed with crane vessels and in some cases. safety and environmental implications and challenges to the operators. There have series of discoveries. Due to the metocean condition. just as occurs in many parts of the world. swamp or offshore. The search for oil and gas takes explorers to the hot regions of the Northern parts of the country. the equipment may be transported on a barge. Some of the fields that are either in development phase or in production are – - Erha Agbami Egina Bonga Akpo Oyo Aparo Nsiko etc. cutting of the sea fastening. the choice of vessel for any marine operation must put the swell period and height into consideration. there may be need for using professional divers and ROV (remote operated vehicle).

2000 Draft 22 . 1967 4) Oil Terminal Dues Decree. Most of these laws are amended regularly in order to meet up with the international standard in the industry. The changes or additions can also be as a result of conformance to international standards. 1969 7) Petroleum Decree (51) 1969 8) Offshore Oil Revenue Decree. 1974 12) Petroleum (Amendment) Decree. 1963 2) Oil pipelines Act 1965 3) Petroleum Regulations. 1971 9) Petroleum (Amendment) Decree. production platforms and flow stations.Amendment) Regulations 1988 17) Federal Environmental Protection Agency Decree. The department is charged with the duties of setting standards and guidelines for safe. The additional applicable to the offshore industry in Nigeria are as follows: “Procedure Guide for the Construction and Maintenance of Fixed Offshore Platform. June. 1978 and its 1984 Amendment 15) Crude Oil (Transport and Shipment) Regulations. natural gas. and any other locations where petroleum or petroleum products are either stored or sold and all pipelines carrying such substances(crude oil. storage depots. 1992 Statutory Procedure Guide for Compliance with the Technical Safety Control (TSC) Requirement of Facility Development and/or Modification Projects. 1988” [15] - Emergence of the deep water developments in Nigeria has caused some changes or additions in the existing regulatory requirements. Some of the principal laws (decree) and regulations related to the activities in the oil and gas industry in Nigeria are as follows: 1) “The Mineral oils (safety) Regulations. and petroleum products)” [15] There are laws and regulations governing operations by the companies in the oil sector of Nigerian economy.It is the responsibility of the ministry of petroleum resources through its various agencies to monitor all activities and operations regarding oil and gas in Nigeria. 1984 16) Petroleum (Drilling & Production. The discharge of these responsibilities involves monitoring of operations at drilling sites. 1977 13) Petroleum (Drilling & Production. 1973 10) Petroleum (Drilling & Production.Amendment) Regulations 1979 14) Associated Gas Re-injection Decree. of all operations. efficient and effective control. pump stations. March. petrol filling stations. 1968 5) Oil in Navigable Water Decree. process plants. 1968 6) Petroleum (Drilling and Production) Regulations.Amendment) Regulations 1973 11) Petroleum (Refining) Regulations. refineries. crude oil export terminals. from the upstream to the downstream sector of the industry.

Safety representative from the client company usually check the JHA or SJA or JRA of the contractor to see if the risk acceptance criteria is met. sea fastening. underwater equipment installation. piling and so on. however. 2001 For the environment. lifting. causes and consequences in underwater equipment installation Before operations are performed offshore. June. the principal regulations governing it are Environmental Guidelines and Standards for the Petroleum Industry in Nigeria (EGASPIN). In my research during this project. This problem is primarily caused by the high unemployment level and poverty in the oil and gas region of the country. some are also caused by the Nigerian citizens in their quest to get a share of the oil wealth.- Procedure Guide for the design and Construction of Oil and Gas Surface Production Facilities. should carry out a job hazard analysis (JHA) or safe job analysis (SJA) or job risk analysis (JRA) before the operation will be performed. risk analysis should be carried out in order to identify potential hazards or risks associated with the planned operation. 23 . The potential risks. which were initially issued in 1991” [16] and it has undergone series of Amendment since then. In Nigeria. The major HSE problem in Nigeria is pollution caused by oil spill. Identification of potential risk. Nigeria is yet to have a reliable and well-informed safety regime like what is obtainable in Norway and the UK. the risk acceptance criteria set by the operating companies are always of international standard because majority of the operating companies in Nigeria are multinationals and they tend to adopt measures which they use in other parts of the world. I discovered that it is the companies that set their own risk acceptance criteria for operations in the offshore oil and gas industry in Nigeria. the operation may be cancelled or another contractor may be brought in to do the job. installation. in this case. Identification of the risk helps in putting risk reducing measures in place to eliminate or reduce the risk. the client demands that the company (contractor) which is supposed to do the operation. While some of the oil spills are caused by faulty equipment. their causes and consequences can be related to all marine operations including transport. Although Nigeria lacks a good safety program managed by the government. If the level of risk identified is too high. Samples of JHA from Shell contractors in Nigeria can be found in appendix B at the end of the project. The hazards or potential risks are identified by using the HAZID or HAZOP technique.

or limited design references. they tend to adopt risk acceptance criteria of their company and this is usually accepted by the authorities in Nigeria. the following should be analysed. Therefore. Because some of the operators on Nigeria waters are multinationals. The normal wave conditions are characterized by bi-modal spectrum. there are different parameters used to show the risk acceptance criteria for personnel involved in the operations. mandated that the operating company should carry out their activities in such a manner. it is the duty of the operating companies to protect their asset. where STATOIL is a partner.current direction. so they have to set the acceptance criteria themselves. and the risk matrix. In Nigeria. For instance. F-N curve. Most the lift operations and installations offshore Nigeria. FAR. RISK ACCEPTANCE CRITERIA FOR ASSET In accordance with the provisions of the mineral ordinance by the ministry of petroleum resources. AIR. swell direction and the tidal range. Some of the parameters used by companies to show the risk acceptance criteria for personnel are. the risk acceptance criterion for some of the operations was FAR less than 5. that risk is reduced for the workers. in Agbami field. operations can be performed 50% of the time. the directorate for petroleum resources. the acceptance criteria for personnel working in offshore Nigeria may vary from company to company. The storm condition offshore Nigeria tends to be milder than what is obtainable in the North Sea or in the Gulf of Mexico. The currents generated by the swells in this region are more complicated than the winds and waves and this is caused by the lack of. are governed by metocean limits of wave height and the response of the lift vessel to periodic swells.METOCEAN CRITERIA The gulf of guinea in West Africa is an important region for oil and gas business in the world and it has a peculiar environment which is not so common in some other regions of the world. 24 .PLL. for lifting and installation of underwater equipment.8ft and the optimal installation window in Nigeria is between November and March. The waves in the gulf of guinea tend to have long periods and they are extremely directional. Due to lack of standardized risk acceptance criteria. RISK ACCEPTANCE CRITERIA FOR PERSONNEL In the petroleum industry. The significant wave height offshore Nigeria is approximately 9. though during January and February. which is an agency of the ministry for petroleum resources.

RISK ACCEPTANCE CRITERIA FOR ENVIRONMENT By the provisions of the Department of petroleum resources 1991 guidelines. the environmental risk acceptance criteria used for the operations are : Damage Description Probability Category Minor Recovery time 1month – 1 year 1.Due to the lack of standard risk acceptance criteria for the assets in installation operation. [1] there are two aspects considered in risk acceptance criteria for assets. the companies involved in the operations should set the risk acceptance criteria for their asset. it does not however specify the risk acceptance criteria for the environment. Before performing a full EIA. the very first step is to perform the Initial Environmental Evaluation (IEE) which is the first phase in the Nigerian environmental regulation.E. offshore Nigeria.material damage risk and production delay risk.0*10-3 Moderate Recovery time 1 – 3 years 2. an Environmental Impact assessment (EIA) must be performed. the production delay is usually of more significance than the material damage. it is mandatory that an environmental permit be obtained before certain operations can start. FEPA (Federal environmental protection agency) was established and this has helped in giving proper direction to environmental regulations in Nigeria.0*10-5 [17] Although Environmental Guidelines and Standards for the Petroleum Industry in Nigeria (EGASPIN) stipulate guidelines with respect to the environment. the environmental risk analysis is used to identify environmental effects. anywhere in Nigeria. For any operation offshore Nigeria. When these are converted to monetary terms. It is necessary to have risk acceptance criteria when assessing environmental risk because this helps in checking whether the environmental risk is acceptable or not. by decree 58. If the risk of a heavy financial loss is very high.0*10-4 Serious Recovery time above 10 years 5. In Nigeria. 25 . probability and consequences of accidental oil spill at sea or coast line. these are. With respect to the Agbami field offshore Nigeria.5*10-4 Significant Recovery time 3 – 10 years 1. the operations are usually stopped or risk reducing measures are adopted to reduce the consequence of such risk. According to Vinnem J. In 1988.

This act is performed by militants or armed gangs in order to get ransom from the oil companies. particularly in the Niger Delta with the threat from both militants and armed gangs. The Nigerian government is aware of the maritime security challenges and they have deployed the Nigeria Navy to help in protection of offshore assets and personnel. land ownership and destruction of traditional livelihood. both in upstream and downstream sector.000-$2 million. kidnapping. Kidnapping of foreign expatriates as well as locals is another serious concern in the Niger Delta region of Nigeria. bunkering. especially in the central and eastern Niger Delta and off the Bakassi Peninsula”. The Nigerian government. corruption. there are other serious concerns for the operating companies and their personnel working offshore. This important industry is faced with many problems and most of these problems are predominant in the Niger Delta region of the country where most of the oil and gas fields are located. According to Reuters news on 17th February 2011. Kidnapping of foreigners and locals continues to be a problem in Nigeria. and insurgency. pollution.p. however. corruption. lack of electricity and clean water. armed robbery. has put in place legislations and guidelines to regulate all activities in the oil and gas sector.Additional Concerns In addition to the operational risks involved in the offshore oil and gas industry in Nigeria. “Long term drivers of insecurity include legitimate political grievances and personal greed caused by: discrimination against Niger Delta indigenes by major employers. Some of these additional concerns are insecurity.000. the security situation in the Niger Delta has improved since the commencement of the amnesty negotiation in August 2009. [19] These additional risks should be considered when doing risk analysis for operations offshore Nigeria and Bergen Risk Solution is doing a good work in this regard by publishing report on Nigerian Maritime Security every quarter of the year. discovered that the legislation by the Nigerian authority is not strict and up-to-date with what is obtainable in other regions of the world where offshore activities are going on.”The average time in captivity is less than 30 days and ransoms vary from $10. From my research in this project. poverty.000. “Overall.000-$204. Attacks on shipping and offshore assets continue. Time spent in captivity is varied. with ransom payments for Nigerians generally less than $100. through the ministry of petroleum resources and its agencies. general unemployment. Lack of well-trained safety personnel is a problem as well as lack of a vibrant and reliable safety agency in Nigerian petroleum sector. 26 . According to Bergen Risk Solutions April 2011. Conclusion and Recommendation The petroleum industry is the main source of revenue for the Nigeria economy.6]. I have. with the longest period some 465 days”. Ransoms for foreign nationals range from $28. Small arms proliferation and trade in stolen oil are significant risk drivers with the latter involving numerous and powerful stakeholders” [18.

Corruption in the government is also an issue and all these problems need to be addressed if the oil and gas industry should measure up to that of other countries like Norway. and Vinnem J. according to Aven T. and a drive for risk reductions and a proper balance between burdens and benefits”. Other additional concerns which I discussed briefly above should also be addressed by the government in other to attract potential investors to the Nigeria oil market.[20. plans. p. Pre-defined criteria driving the decisions should in general be replaced by a risk management approach highlighting risk characterization and evaluation. “Care should be shown when using predetermined risk acceptance criteria in order to obtain good arrangements.24] 27 . E. Finally. and measures.

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http://af. Safety and Environment in Oil and Gas Exploration and Production Conference. New Orleans. http://www.transerve. 16. Haughie. SPE Health. Offshore Technology Conference. Confidential information from Shell Nigeria 2011 29 . April 2011 19.offshore-technology. Bergen Risk Solutions. Iain J.com. http://www. “Maritime Security. http://www.E.com/article/drcNews/idAFLDE71F20C20110217?pageNumber=2&virtualBa ndChannel=0 assessed on 15-12-2011 20.com/features/feature1975/feature1975-2.reuters. Reliability Engineering and system safety (2005) 15-24 21. No.asp?project_id=106 assessed on 15-12-2011 25.sg/news/News_List. Berger. 9-12 June 1996. Houston. Quarterly Review.com/en/media-center/photo-library assessed on 15-12-2011 23. http://www. In Nigeria”. “Application of Risk-Based Design Relative to Health. 3 May-6 May 2004. “Environmental Risk Management and Preparations for the First Deep Water Well in Nigeria”.html assessed on 15-12-2011 22. Fredrik.intecsea.com/project_experience/project/default. and Safety”. Texas 17. Louisiana 18.technip. Environment. Aven T and Vinnem J.aspx assessed on 15-12-2011 24.16.

Vessels Offshore Nigeria FPSO on Bonga field [21] FPSO on Akpo field [22] 30 .APPENDIX A.

FPSO on Erha field [23] FPSO on Agbami field [24] 31 .

APPENDIX B – JOB HAZARD ANALYSIS (From Shell Nigeria) [25] 32 .

JHA for Underwater Inspection 33 .

34 .

35 .