eWCAT (ELECTRONIC WELL CONTROL

ASSURANCE TOOL) AND PROCESS SAFETY

USEPA HF Technica l Workshop,

April 2013

Insert a

Ma rco O p De Weegh
Well Control & Design Integrity Tea m Lea d

Copyright of Shell Explora tion & Production Compa ny, 2013 April 2013 1
 DEFINITIONS AND CAUTIONARY NOTE
The compa nies in which Roya l Dutch Shell plc directly a nd indirectly owns investments a re sepa ra te entities. In this presenta tion “Shell”, “Shell group” a nd “Roya l Dutch Shell” a re
sometimes used for convenience where references a re ma de to Roya l Dutch Shell plc a nd its subsidia ries in genera l. Likewise, the words “we”, “us” a nd “our” a re a lso used to refer to
subsidia ries in genera l or to those who work for them. These expressions a re a lso used where no useful purpose is served by identifying the pa rticula r compa ny or compa nies.
‘‘Subsidia ries’’, “Shell subsidia ries” a nd “Shell compa nies” a s used in this presenta tion refer to compa nies over which Roya l Dutch Shell plc either directly or indirectly ha s control.
Compa nies over which Shell ha s joint control a re genera lly referred to “joint ventures” a nd compa nies over which Shell ha s significa nt influence but neither control nor joint control a re
referred to a s “a ssocia tes”. In this presenta tion, joint ventures a nd a ssocia tes ma y a lso be referred to a s “equity-a ccounted investments”. The term “Shell interest” is used for convenience to
indica te the direct a nd/ or indirect (for exa mple, through our 23% sha reholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, pa rtnership or compa ny, a fter
exclusion of a ll third-pa rty interest.

This presenta tion conta ins forwa rd-looking sta tements concerning the fina ncia l condition, results of opera tions a nd businesses of Roya l Dutch Shell. All sta tements other tha n sta tements of
historica l fa ct a re, or ma y be deemed to be, forwa rd-looking sta tements. Forwa rd-looking sta tements a re sta tements of future expecta tions tha t a re ba sed on ma na gement’s current
expecta tions a nd a ssumptions a nd involve known a nd unknown risks a nd uncerta inties tha t could ca use a ctua l results, performa nce or events to differ ma teria lly from those expressed or
implied in these sta tements. Forwa rd-looking sta tements include, a mong other things, sta tements concerning the potentia l exposure of Roya l Dutch Shell to ma rket risks a nd sta tements
expressing ma na gement’s expecta tions, beliefs, estima tes, foreca sts, projections a nd a ssumptions. These forwa rd-looking sta tements a re identified by their use of terms a nd phra ses such
a s ‘‘a nticipa te’’, ‘‘believe’’, ‘‘could’’, ‘‘estima te’’, ‘‘expect’’, ‘‘goa ls’’, ‘‘intend’’, ‘‘ma y’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘pla n’’, ‘‘proba bly’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’,
‘‘ta rget’’, ‘‘will’’ a nd simila r terms a nd phra ses. There a re a number of fa ctors tha t could a ffect the future opera tions of Roya l Dutch Shell a nd could ca use those results to differ ma teria lly
from those expressed in the forwa rd-looking sta tements included in this presenta tion, including (without limita tion): (a ) price fluctua tions in crude oil a nd na tura l ga s; (b) cha nges in
dema nd for Shell’s products; (c) currency fluctua tions; (d) drilling a nd production results; (e) reserves estima tes; (f) loss of ma rket sha re a nd industry competition; (g) environmenta l a nd
physica l risks; (h) risks a ssocia ted with the identifica tion of suita ble potentia l a cquisition properties a nd ta rgets, a nd successful negotia tion a nd completion of such tra nsa ctions; (i) the risk
of doing business in developing countries a nd countries subject to interna tiona l sa nctions; (j) legisla tive, fisca l a nd regula tory developments including regula tory mea sures a ddressing
clima te cha nge; (k) economic a nd fina ncia l ma rket conditions in va rious countries a nd regions; (l) politica l risks, including the risks of expropria tion a nd renegotia tion of the terms of
contra cts with governmenta l entities, dela ys or a dva ncements in the a pprova l of projects a nd dela ys in the reimbursement for sha red costs; a nd (m) cha nges in tra ding conditions. All
forwa rd-looking sta tements conta ined in this presenta tion a re expressly qua lified in their entirety by the ca utiona ry sta tements conta ined or referred to in this section. Rea ders should not
pla ce undue relia nce on forwa rd-looking sta tements. Additiona l risk fa ctors tha t ma y a ffect future results a re conta ined in Roya l Dutch Shell’s 20-F for the yea r ended December 31, 2012
(a va ila ble a t www.shell.com/ investor a nd www.sec.gov ). These risk fa ctors a lso expressly qua lify a ll forwa rd looking sta tements conta ined in this presenta tion a nd should be considered
by the rea der. Ea ch forwa rd-looking sta tement spea ks only a s of the da te of this presenta tion, 16 th & 17 th of April, 2013. Neither Roya l Dutch Shell plc nor a ny of its subsidia ries
underta ke a ny obliga tion to publicly upda te or revise a ny forwa rd-looking sta tement a s a result of new informa tion, future events or other informa tion. In light of these risks, results could
differ ma teria lly from those sta ted, implied or inferred from the forwa rd-looking sta tements conta ined in this presenta tion.

We ma y ha ve used certa in terms, such a s resources, in this presenta tion tha t United Sta tes Securities a nd Excha nge Commission (SEC) strictly prohibits us from including in our filings with
the SEC. U.S. Investors a re urged to consider closely the disclosure in our Form 20-F, File No 1-32575, a va ila ble on the SEC website www.sec.gov. You ca n a lso obta in these forms from
the SEC by ca lling 1-800-SEC-0330.

Copyright of Shell Exploration & Production Company, 2013 2

AGENDA

HSSE & SP CF, Process & Persona l Sa fety ..………………..... 1 min

Process Sa fety, Wells Sta nda rds – Dem 1 & 2 ….…………… 2 min
Well Delivery Process & Bow-tie methodology (well life cycle) 2 min
PCM – eWCAT ……………………………………………….... 2 min
P&ID’s .................................................................................1 min
Equipment, Personnel & Ba rrier Verifica tion Pla ns (BVP) ……. 2 min
CO C & CO S …………………………………………………… 3 min
Complia nce in eWCAT ………………………………………… 2 min
Q uestions …………………………………………………….... ?

Total: 15 min

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 HSSE & SP CONTROL FRAMEWORK, PROCESS SAFETY &
PERSONAL SAFETY

Addressing Wellbore Integrity in Pra ctice

Shell Control Fra mework

Copyright of Shell Exploration & Production Company, 2013 April 2013 4

 PROCESS SAFETY IN WELLS

 Prevention of potentia l ma jor industria l incidents

ca used by unintended relea se of energy or Well Process Sa fety
Process Sa fety Pyra mid
ha za rdous substa nces
 Potentia l ha za rds a ssocia ted with well control,
wellbore integrity & conta inment
 Potentia l incidents rela ting to well control & loss of
well integrity
 Loss of prima ry well control
 Design loa d ca se exceeded
 Single ba rrier fa ilures
 Unintended relea se of well effluents
 O ther releva nt incidents

 Incidents sha ll be RAM-cla ssified & followed-up

a ccordingly

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 PROCESS & PERSONAL SAFETY

Process Safety Basic Requirements (PSBR)

DEM 2 : Process safety basic
Currently 11 PSBR’s:
requirement to prevent re-occurrence
PSBR 1 Safe siting of occupied portable buildings
of incident.
PSBR 2 ESD valves on platform risers
PSBR’s (Process Safety Basic PSBR 3 Temporary refuges
Requirements) , “SHALL” sta tement PSBR 4 Permit To Work
[PS] PSBR 5 Management Of Change
DEM 1 & WS’s: Wells Sta nda rds (WS), PSBR 6 Avoid liquid release relief to atmosphere
DEP’s (Shell Design a nd Engineering PSBR 7 Avoid tank overfill followed by vapour cloud
release
Pra ctices),
PSBR 8 Avoid brittle fracture of metallic materials
- Exa mple: PCM (Pressure Control
PSBR 9 Alarm management
Ma nua l) & CTDM (Ca sing Tubing
PSBR 10 Sour Gas (H2S)
Design Ma nua l), “sha ll”, ma nda tory
PSBR 11 Deepwater Well Design and Construction

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 WELL DELIVERY PROCESS & BOW-TIE METHODOLOGY
(WELL LIFE CYCLE)

Well Delivery Process:

Bowties:

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 eWCAT (PROCESS SAFETY)

CTDM (Casing Tubing Design Manual):

Process Sa fety requirements:
 Ba rrier Policy

 Design Process

 Ma teria l, pipe body, connection (selection)

 Design loa d scena rio’s; conditions for ca sing & tubing.
 Design Check equa tions (Ca sing / tubula r limita tions vs. conditions)
 Design Fa ctors (a ddressing uncerta inty loa d vs. ca pa city) for:
 Running-Tension
 Running – Compression
 Colla pse
 Tri-a xia l Burst

 Supplementa ry & Specific well design requirements

eWCAT is Shell’s electronic Well Control

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Assura nce Tool
 eWCAT (PROCESS SAFETY)

PCM (Pressure Control Manual):

Process sa fety requirements:
 Policy, Procedures & Pra ctices for well control (well construction pha se)

 eWCAT Implementa tion:

 Uploa d templa te (s)

 Equipment (“wa lk the line”)
 Personnel (contra ctor & Shell personnel WC certifica tion)

 Ba rrier dia gra m(s) / Verifica tion pla n, (prima ry & seconda ry ba rriers)
 Well Control Model (Min. equipment, tests frequency & scope)

eWCAT is Shell’s electronic Well Control

Copyright of Shell Exploration & Production Company, 2013 April 2013 9
Assura nce Tool
 eWCAT APPLIES TO ALL RESERVOIR HYDROCARBON
WETTED PRESSURE CONTAINING SYSTEMS
PCM (Pressure Control Manual):
WCM:
 Ba rrier Dia gra ms / Verifica tion Pla ns
 Well Control Model

PCM Sta ndpipe Non-Prima ry

Equipment ma nifold
Flow Wetted
scope
(Drilling) Kelly Equipment MG
hose + S
top drive
/ kelly

Mud
pump

C&K
ma nifold

WCM
Min.
equipment
scope
Control
Unit (s)
Prima ry Flow Wetted
BO P
Equipment +
Copyright of Shell Exploration & Production Company, 2013 Note: These examples are for illustrative purposes only, and are
April 2013 10
not intended to cover all equipment, sites or situations.
 eWCAT / P&IDs
Implementation:
P&ID Dia gra ms

Note: This example is for illustrative purposes only, and is not

Copyright of Shell Exploration & Production Company, 2013 April 2013 11
intended to cover all equipment, sites or situations
 eWCAT / BARRIER VERIFICATION PLANS
Implementation:
Ba rrier dia gra m / verifica tion pla n(s), (prima ry &
seconda ry ba rriers for opera tiona l scopes, Norsok D-
010-rev.3)
Ba rrier verifica tion test(s)

Note: This example is for illustrative purposes only, and is not

Copyright of Shell Exploration & Production Company, 2013 April 20 13 12
intended to cover all equipment, sites or situations
 EWCAT / COC & COS

 Certifica te of Compa tibility

 Certifica te of Complia nce

 Certifica te of Conforma nce (CO C)

 Certifica te of Service (CO S)

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 COMPLIANCE IN EWCAT

Well Control
Equipment Inventory
+ Equipment certifica tion
complia nce
Work Unit Equipment
Configura tion
+

Well Control Test

Test reports
complia nce
+ Complia nce to
Well Control Model
Role a ssignments
Personnel certifica tion
+ complia nce
Personnel tra ining
certifica tion
+
Ba rrier verifica tion pla ns
(well design / well control)
+ Ba rrier Verifica tion
Ba rrier verifica tion tests complia nce
(cement, ca sing, lea k-off etc)
Copyright of Shell Exploration & Production Company, 2013
 Q &A

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KEY MESSAGES

 Process Sa fety

 Well life cycle

 Well bore integrity, ba rriers & verifica tion

 eWCAT (electronic Well Control Assura nce Tool)

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Back up slides
 eWCAT / COC & COS
Certificate of Compatibility: Document in which a Manufacturer, Repairer, Remanufacturer, or
recognized technical authority certifies that the part or system is compatible with the Original
Product Definition, including design changes resulting from a malfunction or failure history of
drill-through equipment manufactured, remanufactured and/ or repaired to the appropriate
International Standard/ Specification and is fully compatible a nd/ or ca n be integra ted into
other systems gua ra nteeing the opera tions envelope a s defined by the O EM.

Certificate of Compliance: Document in which the O EM or recognized technica l a uthority

certifies tha t the equipment a nd/ or system meets the required sta nda rds or rules a s depicted
in the releva nt a rea of opera tions regula tory requirement.

Certificate of Conformance (COC): Document in which the O EM or O EM-licensed fa cility

certifies tha t the a ssembly or pa rt ha s been ma nufa ctured/ rema nufa ctured in conforma nce to
the mentioned sta nda rd(s), specifica tions a nd guidelines in accordance with the O rigina l
Product Definition, including design cha nges resulting from a ma lfunction or fa ilure history of
drill-through equipment ma nufa ctured, rema nufa ctured a nd/ or repa ired to the a ppropria te
Interna tiona l Sta nda rd/ Specifica tion.

Certificate of Service (COS): Document in which the equipment O EM, O EM-licensed fa cility,
recognized technica l a uthority/ O wner or O pera tor certifies tha t the equipment ha s been
inspected, properly ma inta ined a nd tested in accordance with O rigina l Equipment
Ma nufa cturer (O EM) specifica tions.
Copy right of Shell Explora tion & Production Compa ny, 2013