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Management of Medium-Size /

Revamping Projects
Oil & Gas Downstream Projects
7. HSE, Quality and Risk Management

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Management of Medium-Size /
Revamping Projects: course content
I. Introduction
II. Preliminary Studies
III. Basic Engineering (or FEED)
IV. EPC Contracting
V. Organization and Engineering
VI. Procurement
VII. HSE, Quality and Risk Management
VIII. Project Control (cost/schedule)

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IX. Construction and Fabrication Management
X. Completion / Commissioning / Start-up / Closure

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HSE Management

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Scope and Objectives

 Scope:
• “HSE design”: impact of the permanent change created by the
Project
• “HSE construction”: risks during the field work stage of the Project
 HSE Design objectives
• Identify HSE hazards created by the change
• Evaluate their criticality and the need for mitigation measures
• Document, obtain approvals, and design the Project accordingly
• Verify before Start-Up that the HSE measures are effective
 HSE Construction objectives
• Ensure personnel Safety (incl. Owner and contractors) during

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Execution
• Ensure the absence of Environmental incident during Construction
will be discussed in more detail in the Construction chapter
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HSE Management

HSE Design

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Objectives

 Build safe facilities, through their life-time, by:


• Identifying and evaluating all HSE hazards of the Project
• Eliminating them, or making their effects acceptable for Owner
• Permitting effective control of the remaining hazards
• Complying with applicable local regulations and Owner standards

 Main areas of application:


• Safety and Health (Owner, Contractors, surrounding communities)
• Protection of Natural Environment (air, water, soil, waste)
• Preservation of Owner image in case of a major accident

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Main terms & definitions

 Hazard
• Existing potential of a product, a process, or a practice to cause
damage to people or to environment

 Risk
• Potential accident created by the existence of a hazard
• RISK value = Probability x Consequences [Severity or Gravity]

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Steps and tools

Process control
PREVENT HAZID, HAZOP Process isolation
Decrease probability of release Safe design, Frequency analysis Overpressure protection
Material selection

Layout & Zoning


Ventilation
CONTROL HAZAN (consequence) analysis, Insulation
Avoid accidental ignition of release QRA, Safety Distances Electrical isolation
ESD upon Gas detection
Dispersion
Drainage

Layout
Consequence analysis Fire detection
MITIGATE ESD & EDP
Escalation analysis
Mitigation of consequences Bunding & Drainage
Risk assessment
Blast proofing
Active Fire protection
Passive fire protection

EVACUATE Escape, Evacuation, and Rescue Layout

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study Protection of evacuation
Provide for escape, evacuation, rescue
routes & means
Alert
Emergency room

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HSE Studies during project lifecycle

PRE PROJECT PROJECT PRODUCTION

EPC STAGE COMMISSIONNING


START
STUDIES SOR BASIC or FEED
UP
HAZID HAZID
HAZAN HAZAN
S.O.R P&ID DEROGATION
CHANGE REVIEW REQUESTS

HSE SAFETY
CASE / REPORT DOSSIER

TECHNICAL SPECIFICATIONS HAZOP 1 HAZOP 2 HAZOP 3 POST START-


UP AUDIT
PTR 1 PTR 2 PTR 3 PTR 4 PTR 5

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6 months
Feedback after S/U

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HSE steps at Preliminary stage

 Environmental design Management steps:


• EBS (Environmental Baseline Survey): analysis of the initial status of
the site (reference status for further controls comparisons)
• EIA (Environmental Impact Assessment): detailed description of the
impacts of the projected activities on the site and mitigation
measures for reducing these impacts to a level as low as possible

 HSE Risk Assessment tools:


• HAZID (HAZard IDentification)
• PRA / QRA (Preliminary/Quantiative Risk Assessment)
• HAZOP (HAZard and OPerability study)
• DREAM: analysis of Operational Releases (water, air)

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• Various computerized atmospheric dispersion models
• Various 3-D Oil Spill Contingency and Response models

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HAZID (Hazard Identification)

 Method to identify hazards, mainly those outside the Project:


• Use of Guide word and prompters list
• “Helicopter” view required, zoom in as necessary
• Hazards from the project affecting the neighbouring environment
• Hazards from outside (natural, weather, other industries…)

 Done normally once, at the Preliminary stage

 Key attitude: openness, rigorousness, thoroughness

 Needs a multidisciplinary team knowing the scope


• Multiple technical expertise of the team

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• People having experience of executing projects
• A leader, but no censor, and some imagination

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HAZID (Hazard Identification)

 HAZID categories and key-word examples:


• Fire Plant, sources of heat, risky zones
• Explosion Sources of ignition, release duration
• Toxicity Vent, chemicals
• Dropped objects Crane, equipments, scaffolds
• Collision Truck, vessels, engines

 Helps FEED and selection (or elimination) of alternates

 More about HAZID: see Attachment I

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Preliminary/Quantitative Risk Assessment

 Semi-quantitative method referring to predefined scenario

 The scenario have been defined using another method


• HAZID or other type of check-list
• What-If review

 The analysis aims at selecting a limited number of major scenario


on which a more detailed risk assessment (QRA) will be made

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PRA/QRA elements

 Probability of occurrence, such as:


• 1 per year, 1 per 1 000 years, 1 per 10 000 years, 1 per 100 000 years

 Type and gravity of lethal consequences, such as:


• Risk of death for 5 hours spent to go mountaineering each week-end
• Risk of death in the industrial activities at high risks (mines)
• Risk of death by road accident
• Risk of death in an accident at work in an industrial activity at low risk
• Risk of death in a fire or an explosion due to a gas leak at home
• Risk of death by lightning

 Assessment tools:

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• PRA: matrix ranking (see next page, or Owner-specific matrix)
• QRA: quantitative evaluation, based on statistical records and models

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Risk-ranking matrix

Probability of event Owner matrix categories may be


much more precisely defined
10-1
Likely

10-2 Unacceptable
Unlikely

10-3
Very unlikely Tolerable if ALARP
10-4

Extremely
unlikely Acceptable
10-5

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Remote
10-6
Moderate Serious Major Catastrophic Disastrous

Gravity of consequences
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HAZard and OPerability Study

 Objectives:
• Identify reaction of plant during abnormal process conditions
(Malfunction or mis-operation) that could cause a hazard
• Check if design adequate to prevent hazard occurring
• Record all corrective actions, and remaining hazard (accepted)

 Multidisciplinary team with :


• A trained leader having planned the work
• Project engineers knowing in detail its content
• Operations knowledgeable people

 Needs an accurate version of all P&IDs (so a tool for FEED)

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 Lengthy (may take several weeks) but very effective

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Project Technical Reviews

 Interdisciplinary independent team (with Owner) reviews of the


main HSE documents or studies prepared by the project team:
• HAZID, Consequence Analysis
• Flare, vent radiation and dispersion
• Safety Concept, SOR
• Hazardous area classification
• Fire, Gas and low temperature detection
• Pressure Protection and Relief
• Emergency Shutdown and Emergency Depressurisation
• Active and Passive Fire Protection
• Lay out

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• Escape Evacuation and Rescue

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Safety Concept

 Main Purposes:
• State Owner requirements for the protection of assets & personnel
• Indicate safety requirements for implementation in plant design
• Identify derogations to reference standards (Owner corporate)
• Hand out to Operations a complete document on safety design of
the unit
• Keep a reference document for subsequent:
− Internal, external or even regulatory auditing
− Updates during Engineering
− Change Management

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Safety dossier

 Objectives
• Assemble all safety-related documents for permanent reference
• Give to the operator a clear and traceable view of safety design
• Safety basis for possible future modifications of the unit

 Typical contents
• Safety Concept (updates & revisions included)
• HAZOP # 1, 2, 3 reports, including approved corrective actions
• Minutes of Technical Reviews # 1, 2, 3, 4
• Waivers to Corporate standards, with supporting documents
• List of approved safety-related documents and studies
• Evidence that all HSE actions decided have been completed

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HSE Management

HSE Construction

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HSE Construction

 Identification of particular risks linked to Construction


• Planning and scheduling of Construction activities
• Risks related to SIMultaneous OPerationS (SIMOPS)

 Development of Safety Management System and HSE Plan


• Construction Key Performance Indicators (KPI), including
− Target level, monitoring process and responsibility
− Management review frequency, followup actions
• Key HSE procedures, training, field audit planning
• HSE resource planning: field supervision, budgets, safety equipment

 HSE input in Subcontractor selection process


• HSE policy, goals, organization, job task analysis

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• Past HSE performance, improvement actions underway
• Field controls, incident investigation skill

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HSE Construction

 Technology-related risks
• Flammable / toxic / explosives substances
• Complex mechanical equipment
• Process conditions (units in operation)

 People-related risks
• Application of life-critical procedures
• Simultaneous operations, congestion
• Human behavior aspects, sensitization
• Communication between teams

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Reporting

 HSE Reporting frequency, contents and responsibility should be


defined

 Main purposes:
• Inform Authorities, Owner and Contractor Management
• Maintain/develop HSE awareness within Project team /
subcontractors

 Typical contents of a monthly HSE construction report:


• KPI monitoring (month, average, year-to-date, since Project start)
• Safety Recordable accidents and potentially serious near-misses
• Field audits performed and common observations
• Significant spills and air pollution releases from the Project works

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• Waste and soil pollution concerns, if any
• Main improvement actions decided and/or actually implemented

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Field observations

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Quality Management

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Definition

Expressed Customer Implicit


needs Satisfaction needs

QUALITY

SYSTEM
Conformance Open

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to scope behavior

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Scope and objectives

 Scope: for each EPC stage:


• Quality Management System
• Controls (conformance) and communication (behavior)

 Objectives:
• Provide assurance to Owner that the technical scope will be
achieved
• Clearly define scope change process, consequences, and Owner role
• Provide adequate documentation to Owner and 3rd-parties
• Assure timely handling of non-conformances (Contractor,
Subcontractors)
• Comply with agreed certifications (ISO-9001, 10006, 14001, etc.)

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Management System

 The word “Management System” is difficult to define

 The best way to explain it is to list its main components


• Culture, policy, permanent goals
• Organization, roles and responsibilities of each position
• Processes (Work/Production and Support)
• Resources available (human, technical, financial)
• Controls
• Communication and information flow

 Owner and EPC Contractor Management Systems should be


consistent

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 Application to Suppliers and Subcontractors needs to be clarified

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Common Standards

Quality Internal Control

Safety IT & Communication

Environment Policy Social Reponsibility


Charters
Health Sustainable Development
Management and
Security Organisation Ethic & Integrity

General and
Transverse

Entity specific
Working documents

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Projects: ISO-10006

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Continuous Improvement

P.D.C.A.: the Deming wheel

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Quality Management

Project Quality Management System

Project
Objectives
Purpose

Project
Project
Organization
Management

Project
Surveillance QMS
Risk
Key topics

Philosophy Management

Document Change

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Management Interface Management
Management

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Project Quality Plan
Project
Objectives
Project Project
Organization Management

Project

 PQP reflects an established Quality Management principle QMS

• Common understanding of what Quality on project means


• A standardized implementation of the management principles
• A better assurance to get what is expected

 Project Quality Plan


• Objectives and Commitments are expressed in writing
• Project QMS is presented (organization, content and
implementation)
• Project control principles are defined
• Procedures and associated resources to be applied
• Consistency with source documents

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− Project Execution Plan
− HSE Management Plan
− Risk Management Plan
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Project Quality Plan
Project
Objectives
Project Project
Organization Management

 Typical contents: Project


QMS

1. Project characteristics
(Field description, scope of work, stakeholders)
2. Project strategy
(Quality policy, objectives, KPI, Performance reviews)
3. Project Management
(Organization, Authorities, Interfaces control, Team co-ordination, Reporting,
Communication)
4. Project Quality Management System
(Risk-based Quality, Control of documents and records, Continuous Improvement
process)
5. Project resources management
(Cost control, Schedule control, Human Resources management, Material
resources management)
6. Project operational processes
(Detail Engineering, Procurement and subcontracting, Construction,
Commissioning)

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7. Verification and acceptances
(Monitoring, equipment verification/certification, non-conformances, Internal
Quality audits)

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Quality Management
Project
Objectives
Project Project
Organization Management

Key issues
Project

 QMS

• Fulfil the initial requirements (SOR, FDP…)


• Have a defined and clear Project Team organization
• Have a complete and approved documentation process
• Coordinate the Project Risk Management activities
• Assure regulatory compliance and timely approval

 Key Controls
• Project Reviews and Audits, as planned, with Owner involvement
• Assure the correct implementation of Owner standards
• Quality Control Plans for each Supplier and Subcontractor
• Document verification by adequate specialists

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• Effective and timely implementation of corrective actions

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Interfaces
Project
Surveillance QMS
Interface
Management Management

Risk Document

 It’s important to implement a system that allows Management Change


Management
Management

• To keep track of interface issues


• To give ownership of interface issues to the relevant function
 Interfaces with Owner are critical for Revamping projects
• Ignoring Operations and/or HSE interfaces may lead to:
− HSE exposures during Construction
− Difficulties at the Completion/Acceptance stage
• Ignoring Technology interfaces may lead to:
− Late (but mandatory) scope changes
− Blockage at the Completion/Acceptance stage
• Ignoring Maintenance interfaces may lead to:
− Lost cost-reduction Construction opportunities
− Difficulties, reworks, claims at or after Startup

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Refer to Interfaces Management (section 5)
Project shall retain the control over interfaces

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Documentation
Project
Surveillance QMS
Interface
Management Management

Risk Document

Refer to Documentation Management (section 5) Management Change


Management
Management

 Consider documentary requirements throughout the unit


lifetime:
• Pre-FEED and FEED
• EPC Contract execution, til completion
• Start-up and early operations
• Routine operations, maintenance, ageing
• Dismantling of facilities

 Documentation Management System should be easy to use for:


• Interface management (mainly during execution)

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• Change Management (mainly after execution)

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Change Management
Project
Surveillance QMS
Interface
Management Management

Risk Document
 Types of changes: Management Change
Management
Management

• Changes to SOR
• Contractual changes
• Technical modification requests
 Even minor-looking changes may have a major impact
• Always open “change dossier”
• Always perform a Risk Analysis (HSE, Cost, Schedule)
 The Change Management System should allow to:
• Keep track of all changes, irrespective of type
• Assure Project Team timely information
• Review and approve (or reject) all changes
• Reflect consequences to Project Design and Construction

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Refer to Changes Management section under Project Control section
Ignoring or underestimating a change can lead to disaster
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Risk Management

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Risk Management

 In the execution of a Project:


• HSE Design & Construction risks are not the only risks
• Some other risks may have a much bigger financial impact
− Schedule delay (if Turnaround-related, or if major savings)
− Non-conformances compromising the Business objective
− Cost overrun above the allowable budget
• Projects in existing facilities have specific risks
− Safety issues due to SIMOPS
− Presence of chemicals in the work environment
− Reliability impacts on running units
PROJECT RISKS ARE NOT PROPORTIONAL TO PROJECT SIZE

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Categories at Owner level

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Process
Project Start

RISKS REVIEW WORKSHOP Yes


with P.MT Managers & LDEs.

Yes RISKS REGISTER


No
PROJECT REVIEWS Significant
is updated (initially from Concept /FEED or prepared) Project impact?
CONTRACT REVIEWS

RISKS EVALUATION
& MITIGATION PLAN
for risks that require a response
Each risk is followed by a « Risk Owner »

PCM in charge of administrating the Risks Register


Reviews on monthly basis at least, with risks Owners,
PMT & LDEs inputs

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No Yes
New risks or
Risks modification?

Project Mgt Meetings


Insp. Reports, Site reports, Project Changes, etc.
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Consequence rating

 “Severity” or “Consequence rating” generally evaluated with respects


to importance of potential impacts on:
• Health & Safety
• System / Environment
• Production / Oil-in
• Cost
• Schedule

 Impact generally rated with a 1(low side) to 5 (high side) rating


 Highest value assigned to the five areas: Risk “Severity Rating” or
“Consequence Rating”.
 Companies & Contractors establish their own Project Risks

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Management Processes to identify & control the Project risks. The next
slides describe the process principles.

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Consequence rating

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Probability rating

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Manageability: Ability of Project Management Team to Manage the Risk
For some risks, Probability rating may be assessed by calculations
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Prioritization (or Criticality rating)

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Examples of mitigation plans

 Avoid the risk: stop the project activity affected by the risk
(modify the design, change plan or practice…)

 Accept the risk: manage the risk if assessment leads to


acceptability criteria. Consider contingency planning.

 Transfer the risk: through transfer of responsibility (insurance,


other contractor being more able to manage the risk)

 Reduce the risk probability: implement a specific inspection


plan…modify an engineering, purchasing, contracting or
transportation plan

 Reduce the risk severity: sparing, contingency plan, scope split

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between more contractors…

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HSE Quality and Risk Management

Key points to keep in mind

 Risk may be related to any of the project key objectives


 Both probability of occurrence and gravity should be evaluated
 High risk score (probability x gravity) leads to preventive action
 Standard checklists (e.g. HAZID) help to identify possible risks
 HAZOP is the most common HSE Risk Analysis tool at FEED stage
 Semi-quantitative risk scoring needs expertise and modelling tools
 Mitigation can act either on probability or on consequences, or both
 Quantitative Risk Analysis helps defining the required contingencies
 Triggers help predicting that the probability of risk is increasing

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 Action plans, once approved, should be closely monitored
 When the project progresses, Risk Analysis should be updated

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Attachments

I. More about HAZID

II. More about HAZOP

III. Quality Surveillance

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Attachment I
More about HAZID
The HAZID method

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HAZID (HAZard IDentification)

 Brainstorming using a standard list of keywords and experience of


participants

 Purpose: concentrate team attention on :


− Impact of surroundings and environment on the Project
− Impact of the Project on the surroundings
− Interference between the main design elements
− General purpose dangers

 HAZID mainly considers non-process exposures

 HAZID looks at the whole project life-time from start-up to


dismantling

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 HAZID looks at combined / simultaneous operations

HAZID
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Workflow

1. Identify causes related to the various keywords

2. Evaluate potential consequences

3. Verify effectiveness of preventive and protective measures

4. Recommend actions if measures are insufficient

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Workflow

 Each keyword is discussed within a team of experienced people

 Conclusions: summary table showing the following categories


• Danger
• Causes
• Consequences
• Risk gravity level
• Risk reduction existing measures
• Proposed action plan

 Action plan formally reviewed and accepted by responsible


Manager

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Example

 Danger: seismic

 Causes: selected location in a seismic area

 Impacts: structural damage, rupture of chlorine pipe

 Risk gravity level: 1 (major)

 Risk reduction existing measures:


• Design according to latest seismic regulatory standards
• Minimization of chlorine liquid inventory

 Proposed additional action plan:

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• Double check calculation with independent third-party expert
• Isolation of liquid chlorine inventory with water curtain

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HAZID Keywords

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HAZID Keyword Categories

 Section 1: exposures external to the Project


• Impact of the Project on the Environment
• Impact of the Project on People
• Impact of Human behaviour on the Project
• Impact of the Environment on the Project
• Exposures related to infrastructure

 Section 2: exposures internal to the Project


• Impact of the Process risk on the Project
• Impact of the risk created by Utilities on the Project
• Other types of risks within the Project

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 Section 3: exposures of the Project for people

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Section 1 (external hazards)

 Natural Hazards (extreme weather, lightning, seismic events)

 Natural Environment (air releases, water releases, soil pollution,


emergency upsets, waste management)

 Human Environment (economic, adjacent industry, adjacent


population, transport corridors, land use, vibrations, visual
impacts)

 Human Constraints (security, social unrest, strikes)

 Infrastructure (emergency access, mutual assistance, evacuation)

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Section 2 (internal hazards)

 Product (flammability, toxicity, environmental, inter-compatibility)

 Process (reaction, leaks, pressure, vacuum, temperature, H/L level)

 Maintenance (philosophy, preventive, start-up, shutdown)

 Utilities (firewater, foam, drains, blanketing, air, water, power)

 Other in Facility (flooding/spill, structural, rotating equipment,


pressure vessels, site traffic, loading station, equipment supply

 Health Hazards (workplace, product exposure)

 Safety Hazards (day-to-day work)

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HAZID (Hazard Identification)

 Example of HAZID Worksheet (CARINA-ARIES OFFSHORE HAZID #1)


• Priority Categories:
1. Mandatory (Immediate action)
2. Recommended (Short Term action)
3. To be developed (Long Term action)
N⁰ SYSTEM / UNIT / GUIDE WORD CAUSE POTENTIAL DEVELOPMENT SAFEGUARDS / ACTIONS / PRIORITY
NODE LOCATION & CONSEQUENCES CONTROLS IN PLACE CONTROLS TO BE INCORPORATED

12 SUBSEA SUBSEA EXISTING Construction Potential damage or rupture of No specific protection to subsea Anchor pattern to be submitted to TA 2
ITEMS PIPELINES HIDRA activities / pipes Hidra existing pipelines. existing pipelines. marine Dept for approval.
SUBSEA laying / barge Physical & electronic surveys to be Operating procedures to be issued by
PIPELINES anchoring performed on site to locate and mark contractor and validated by project.
existing pipelines. Work permits to be used when works
are carried near live installations.
(distances to be defined by TA)
Specific HAZID to be carried out with
TA operations (Mc Dermott).

13 TOP SIDES ONSHORE PROXIMITY TO Crossing of Potential pipes damages or Survey and marking of existing pipes On site checking of pipes markings. 2
PIPELINES TRANSPORT onshore pipes rupture and gas release. carried out. Insure safe clearance between
ARRIVAL CORRIDOR existing and new pipes.
Shut down and depressurisation of
existing pipes while drilling new pipe
tunnel.
Specific HAZID to be carried out with
TA operations (Mc Dermott).

14 TOP SIDES ONSHORE PROXIMITY TO Crossing of Potential pipes damages or Safe distance required between new Landfall and pipes route to be agreed 1

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PIPELINES HOTEL onshore pipes rupture and gas release close to pipes and hotel as per onshore pre- by TA as per safety concept
ARRIVAL FACILITIES hotel facilities. project. requirement with offshore and
onshore project teams.
Specific HAZID to be carried out with
TA along with the onshore project
during basic phase prior to EPC
award.

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ATTACHMENT II
More about HAZOP
Hazard & Operability Studies

© 2013 - IFP Training


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Introduction: HAZOP Study

 HAZard & OPerability Study method was developed by ICI in the


1960s and its use and development are encouraged by Chemical
Industries Association (CIA).

 Most common use is for new facilities, however it is often applied


to existing facilities and modifications.

 Primary purpose is to identify and evaluate hazards within a


planned process or operation.

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Essential features

 HAZOP Study is a structured analysis of a system, process or


operation carried out by a multi-disciplinary team.

 Whilst being systematic and rigorous, it also aims to be open and


creative.

 This is achieved through the use of a set of guide words in


combination with system parameters to seek meaningful
deviations from the design intention.

 It is good practice to develop a clear design intent linked to the


P&IDs being used, to be referred to during the search for
deviations.

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Essential features

 A meaningful deviation means one that is physically possible,


such as No Flow / More Pressure / More Temperature ...

 Deviations such as No Temperature have no sensible meaning


and are not considered.

 The team concentrates on those deviations that could lead to


potential safety or environmental hazards, operational or quality
problems.

 Where causes of deviations are found, the team evaluates the


potential consequences using experience and judgment.

 If the existing safeguards are deemed inadequate, the team

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recommends an action for change or calls for further investigation
of the problem.

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Essential features

 The physical boundaries for the study must be clearly defined as


part of the specification / ToR for the study.

 Study nodes or stages should also be defined by the study leader


in order that the study progresses in a systematic manner, with
the plant to be studied ‘sectioned’ into meaningful nodes.

 Each node requires a design intent …

 The range of operational modes should also be defined in the ToR


– normal operations, start-up, shut-down, emergency conditions

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Data / Documents required

 As a minimum, the following should be available:


• P&IDs
• PFDs, UFDs
• Material and energy balances
• Operating conditions
• Operating and control philosophy / methods
• Equipment and instrument specifications
• Relief settings
• Alarm and trip setting

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RC - PR GES - 08173_A_A - Rev. 1 - 18/07/2013 66
Limitations

 Difficulties can be created through inadequate terms of reference


or poor definition of the study scope.

 It is not infallible … expertise and experience within the team is


crucial to the quality and completeness of the study.

 The accuracy and extent of information available to the team and


the manner of the study all influence its success.

 The study is not to become a re-design meeting. Analysis of an


identified problem may require further study outside of the
meeting.

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RC - PR GES - 08173_A_A - Rev. 1 - 18/07/2013 67
Hazard & Operability Studies

 The main operating parameters considered are:


• Pressure Human Factors
• Temperature Vibration / Cavitation
• Flow Separation
• Level Maintain / Preservation
• Control Sequence
• Loss of Utilities Wrong Materials
 The main GUIDE WORDS, together with their meanings, that are used:
• NO or NOT: none of the design intent achieved
• MORE: a quantitative increase in a parameter
• LESS: a quantitative decrease in a parameter
• AS WELL AS: additional activity occurs
• PART OF: only some of the design intention occurs
• REVERSE: the opposite of the design or operational intention
• OTHER THAN: another activity takes place

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• WHERE ELSE: can flow or transfer come from or go to
 Modes of Operation considered: Start Up / Shutdown / Normal Operation

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Hazard & Operability Studies

 The fault conditions listed below can lead to overpressure; they


shall therefore be taken in account during the HAZOP study:
• Blocked outlet / blow by / inadvertent inlet valve opening from a
high pressure source / check valve malfunction
• Loss of cooling / loss of power / loss of cooling agent / mechanical
fan failure, etc.
• Fire / excessive heat input / unsteady process
• Utility failure and or loss of control (air, instrument, power...)
• Uncontrolled repressurization
• Heat exchanger tube failure / transient pressure surges / quick
closing valves
• Slugging

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Attachment III
Quality Surveillance
Project Quality Surveillance

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RC - PR GES - 08173_A_A - Rev. 1 - 18/07/2013 70
Definitions (1/3)

 Quality Assurance
• Quality Assurance is the CONTRACTOR management process of
systematic planning, implementing and evidencing organizational
provisions, which, if properly applied, will reasonably assure
OWNER that the quality of the final product will be achieved in line
with the Contract requirements.

 Quality Control
• Quality Control is the CONTRACTOR operational process of
inspecting and testing individual components or assembled units or
packages to check the conformity to Contract requirements
(+required documentation).

 Quality Surveillance

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• Quality Surveillance is the OWNER process of monitoring at second
level that the Quality Assurance / Control is properly implemented
by CONTRACTOR.
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Definitions (2/3)

 First party: means that verifications are performed by the EPC


Contractor upon itself, or upon his Suppliers / Subcontractors

 Second party: means that verifications are conducted by Owner


(or associated stakeholders having an interest in the
organization), or by others on their behalf (like independent
auditors)

 Third party: means that verifications are conducted by external,


independent auditing organizations, such as those delivering
regulatory authorizations, registrations or ISO certifications

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RC - PR GES - 08173_A_A - Rev. 1 - 18/07/2013 72
Definitions (3/3)

 Certification: means a formal procedure by which an accredited


or authorized person or agency assesses and verifies (and attests
in writing by issuing a certificate) the attributes, characteristics,
quality, qualification, or status of individuals or organizations,
goods or services, procedures or processes, or events or
situations, in accordance with established requirements or
standards.

 Classification: means a document issued by a shipping


classification organization confirming the class under which a
vessel is registered.

© 2013 - IFP Training


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Quality Surveillance

 2 key Quality Plan surveillance principles


• Quality audits, and guidance on Quality issues
• Quality Control assessment at manufacturing sites

 Consideration with regards to Certified Contractors


• Any ISO-certified contractor has some advantages compared to the
non-ISO-certified ones (quality understanding, methodology).
• But Quality is also an attitude and it is not granted for ever
• Even ISO-certified contractors have to be controlled (but controls
can be lighter, less frequent, and more oriented towards critical
elements)

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Surveillance preparation is a precedent to accountability
 You get what you inspect

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Attachment III
Quality Surveillance
Surveillance Philosophy

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Quality Surveillance

 Quality audits
• Follow a formalized process (see ISO-19011)
 Audit questionnaire to be prepared and used
• Audit adapted (content, duration, auditors) to each Project
• Feedback from previous Projects taken into account

 No complacency when gaps are identified

Audit results showing a lot of Major deficiencies in the


contractors Quality management systems may result in their ISO certification
being challenged or suspended

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Quality Surveillance

 Why implement a Surveillance plan?

 Because Contractors and Operators have different perspectives


• Control/Surveillance cannot be improvised once things are on-going
• Allow to prepare the contracts and follow-up mechanisms
• Allow to anticipate volume and resources to cover inspection
• Allow to supplement Contractor, and to take-over in case of failure

 Surveillance plan issuance: When?


• During basic engineering phase / before EPC contract award
• Once equipment lists are available

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Quality Surveillance philosophy

 Quality Control Plan (QCP)


• QCP is the document describing the Contractor operational
processes of control: reviewing, verification, qualification (in case of
special processes), inspection, testing activities at each stage

 Surveillance plan
• By convention, surveillance is limited to the activities which allow
to get the insurance that Control activities (inspection) are
satisfactorily performed by Contractor
• Surveillance plan is based on Quality Control Plan
• Owner involvement to be contractually defined and agreed

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Quality Surveillance Plan

 Basis of definition
 Criticality rating exercise
• Criticality rating exercise perform by contractors.
• Parallel exercise performed by the project team.
• Contractor and Operator do not have the same vision.
 Surveillance plan objectives
• To allow the project team members to react quickly.
• To complement surveillance definition planned by contractor.
• To substitute to inadequate contractor surveillance.
 To exercise surveillance in all contexts.
• Design & Construction phase.

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• Yards, manufacturers, vendors, sub-contractors.

Accountability requires surveillance


RC - PR GES - 08173_A_A - Rev. 1 - 18/07/2013 79
Quality Surveillance Plan

 Inspection & Test Plan (ITP)


• Consolidated document listing all the quality assurance and quality control
activities, and of there satisfactory performance.
• Each ITP topic co-signed by entities involved, at completion of the related
activity.
• ITP is co-signed at end of the realization & satisfactory performance of all
activities.

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Attachment III
Quality Surveillance
Project Quality Surveillance

© 2013 - IFP Training


RC - PR GES - 08173_A_A - Rev. 1 - 18/07/2013 81
Quality Surveillance Plan - Definition

 Step 1: Criticality rating exercise


• Based on a formal methodology, with established criterias.
• Basically for each equipment / PO.
• Ensures traceability and is effective.

 Step 2: Identifying the resources


• Project internal (discipline specialists).
• Corporate specialists – experts.
• Frame contract with inspection Services Company.

 Step 3: Set up the execution mechanisms


• To make information available to the right people.
• To collect (and act upon) the inspection results.

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Quality Surveillance Plan - Outputs

 Quality records - Typical content


• Approved Quality Plans & Inspection & Test (Surveillance) plans
• Material certificates (mil, calibration, …)
• Qualification of processes records (WPS, NDT, heat treat, painting,
Weld repair, …)
• QC procedures and records (visual inspections, NDT, check-lists, …)
• Survey reports (vibration, alignment, weight, …)
• All Traceability records (marking, mark-up, …)
• All NCR's and waivers (accepted and rejected)
• Third party certificates & reports (design appraisals, verifications,
classifications, certifications, fire test, cranes, …)
• Contractual certificates (RFC, RFSU, transportation, hand-over,

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load-out, acceptance, …) and associated punch lists
• Overall pre-commissioning and Commissioning dossiers if not
furthermore filed.
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