P288 – Offshore Structural Eng & Operations

What is Asset Integrity and the Asset Integrity Must Win?

Goal Zero
6 May 2009
For L&D Surface Faculty Events

Human Resources

01/15/22
Copyright: Shell International Ltd
2007
Why are we focusing on Asset Integrity?

Because we want to prevent major incidents like these

What are we looking to achieve?

We want to be able to say and believe:

OUR ASSETS ARE SAFE AND WE KNOW IT

This means:
• Designing and constructing our assets to ensure sustained integrity
• Knowing which parts of our assets are safety critical and operating and maintaining
them accordingly
• Being compliant with the relevant standards, frameworks and procedures (eg
Technical Integrity Framework, Permit to Work and Management of Change)
• Being vigilant at all times, intervening when necessary, making decisions that respect
this vision
Strategy, Roadmap and Must Win Overview

More Upstream Goal

Zero
Strategy Roadmap Must Wins
Where we want to be Contractor HSE Management
Safety takes Priority
• Sustain Heartlands Land Transportation Safety
Upside
Higher

• Leverage ‘Technology Plays’

• More Integrated Gas
• Grow Unconventionals 1.
2.
Portfolio today Portfolio Management
3.
• Robust Cash Generation
Exploration & New Positions 4.
• Leader in Gas
• Around 60 bln boe of resources
Consistent Project Delivery 5.
Operational excellence, competitive costs 6.
Technology – Integration – Scale
People Make It Happen
Asset Integrity
Production
Project Delivery Worksite Hazard Management
Competitive Cost & Effectiveness CO2 Reduction
Operational Excellence Well and Reservoir Management
Reserves Replacement Top Quartile: Production, Wells, Wells Services
Grow Resource Base
Focused Project Execution
Hydrocarbon Resource Maturation
Front End Project Delivery

• Accountability • Cost Focus

Delivery Culture • Simplification • Performance Management
 This is not a new journey
Our assets
are safe and

2012 we know it

Asset Integrity Process Safety Management Standard

Bacton Effluent Water Treatment Plant
Operational Excellence Standard Explosion, March 2008
2008 HSE Case Standard
Baker Report, January 2007

Technical Integrity Asset Integrity

Buncefield, June 2006
Framework Must Win
Prudhoe Bay, March 2006
Well Integrity Manual
Texas City, March 2005
Maintenance & Technical Technical Integrity
Integrity Management
2004 Standard

Total Reliability Brent Bravo, September 2003

Technical Integrity
Minimum Standard

2000 Piper Alpha, July 1988

Shell Standards Shell EP AIPSM ProgrammesSignificant industry AIPSM events
What is Asset Integrity

(Or rather what do we mean when we talk about it)

Asset Integrity – Process Safety Management is…

We design and build so We maintain the

that risks are hardware barriers
As Low As Reasonably
Practicable (ALARP)
Design Technical
Integrity Integrity
Integrity
Leadership

Operating
Integrity
We work within the
operational barriers
 The incident at Bacton waste water plant illustrates
how each element can contribute to Asset Integrity
failures
(Alert used globally to communicate impact of AI-PS barrier ‘holes’ and cumulative
hazards)

• Equipment failure allowed heater

• Hazard not identified in to become ignition source for the
design process vapour in the tank.

• Systems assessed individually without • Perception "just the waste water treatment plant“,
considering the cumulative impact of led to no formal assessment of the hazards of
faults within entire process. condensate.
Asset Integrity – Process Safety Management
Critical Elements

Working towards zero harm to people and the environment

Leading and acting as a role model to promote the right behaviour everywhere
Providing the training and resources to ensure we have the right capabilities in the right
places at the right times
Managing change consistently and compliantly
Complying with standards and frameworks
• Asset Integrity Process Safety Management (AIPSM)
• Discipline Controls and Assurance Framework (DCAF)
• Operational Excellence Standard (OE) (only parts are within scope for the AI Must Win)
• Technical Integrity Framework (TIF)
Assuring our Asset Integrity through the PSM, OE, and HSE MS assurance processes
Measuring our effectiveness and intervening where needed
Asset Integrity and the project lifecycle

CONCEPT CONCEPT OPERATE &

EVALUATE EXECUTE
SELECT DEFINITION PRODUCE

Establish Asset Integrity

Safeguard Asset Integrity

Design Integrity

Technical Integrity

Operating
Integrity
Design Integrity is…

HEMP processes are followed so that the chosen concept / design

carries residual risk that is ALARP and tolerable
All safety critical elements (SCEs), performance standards and
maintenance routines identified and loaded into SAP before
start up
Technical and operating integrity incorporated into project
engineering
Complying with standards of process safety design and
engineering
Developing and making operational HSE Management Systems
for the design phase AND during start up and continuously
from first oil
Designers provide clear operating and integrity envelopes for the
operators to use
Designers provide critical drawings (as-builts)
Strict Management of Change using Technical Authorities
Robust assurance
Technical Integrity is…
When projects hand over to operations, the HSE case is valid and
‘operationalised’
Assessing and fixing the integrity dependent elements in our
existing assets (starting with Safety Critical Elements)
Hardware barriers are maintained and tested to ensure that they
will perform as per the Performance Standards when called
upon
Using SAP to plan and execute our planned and corrective
maintenance
Assuring our integrity through peer reviews and audits
Recording and managing assurance checks to safeguard SCEs and
barriers
Using Facilities Status Reporting (FSR) to make deviations visible
and to address them in a timely manner
Strict Management of Change using Technical Authorities
Operating Integrity is…

An engrained habit of considering potential risk from cumulative

hazards, changes and dynamic events
Operating all our facilities within up to date operating envelopes
Rationalising and knowing how to react to alarms
Using the Permit To Work systems effectively
Clear, consistent and effective daily communications and shift
handovers
Accessible and up to date procedures which are followed
consistently
Accessible and up to date critical drawings and documents
Real time visibility of over-rides and inhibits and a procedure
regarding how to respond to them
Competent people in all HSE critical roles all the time (even when
others are on leave or at training)
And the key enablers that are common to all…

Working towards zero harm to people and the environment

Up to date HSE Cases focused on our major risks in all our facilities
Providing the training and reinforcement so that we have the right
capabilities in the right places at the right times
Managing change consistently and compliantly over the full asset life
Complying with standards and frameworks
• Asset Integrity Process Safety Management (AIPSM)
• Technical Integrity Framework (TIF)
• Discipline Controls and Assurance Framework (DCAF)
• Operational Excellence Standard (OE) (only parts are within scope
for the AI Must Win)
Assuring our Asset Integrity through the PSM, OE, and HSE MS
assurance processes
Cumulative risk is under control
 What is our role in Engineering?
Leaders
• My primary value is
safety and my people
know it
• I am confident in the
capability of my staff and
contractors
• My assets are performing
• I know where my risks are
and I know how effective
the mitigations are
• We have accurate, timely
data on integrity for every
asset
• Data and drawings are
accurate and to hand
• I know the current status
of my SCEs and how
deviations are being
managed
•We use simple tools and systems to help us schedule work correctly and execute safely (SAP, FSR, PTW etc)
•Our management systems are up to date and effective
Engineers
• We design with the full
asset life in mind – long
term effort in ensuring
integrity is no longer the
consequence of short
term cost gains
• Our critical drawings are
as-built
• Our assets are compliant
with the Process Safety
Basic Requirements and
the Design and
Engineering Manuals
• We work together with
operators to ensure our
assets operate within the
correct envelope
Systems
Supervisors Technicians
• We manage, not fire
• Our work is right first
fight
time – people, materials,
• We know where we time
are not conforming
• We have the capability
and intervene at the
where we need it to do
right time
the job
• Shift handovers are
• Our time is not wasted
clear, consistent and
unnecessarily
effective
• Our work is compliant
• Every person knows
their HSE critical
with up to date Our Assets
procedures
role and deliver it
effectively • We pause and consider Are Safe And
• We know the safety
critical elements on
what the risk is here and
now We Know It
our assets, their • We know what, how and
performance when to maintain to
standards, and what deliver integrity
to do when they are
not met
What is the Asset Integrity Must Win

(What are we trying to achieve)

As a priority, the AI Must Win is focusing on
addressing the risks of significant incidents
Consequences Increasing likelihood
Severity

A B C D E

Environment

Reputation
People

Assets
Has happened in Has happened in
Has happened
the organisation the location or
Never heard of in Heard of in the more than once
or more than more than once
the industry industry per year in the
once per year in per year in the
location
the industry organisation

No injury or
0 health effect
No damage No effect No impact

Slight injury
Slight
1 or health
damage
Slight effect Slight impact
effect
Minor injury
Minor Minor
2 or health
damage
Minor effect
impact
effect
Major injury
Moderate Moderate Moderate
3 of health
damage effect impact
effect

PTD or up to Major
4 3 fatalities damage
Major effect Major impact

More than 3 Massive Massive Massive

5 fatalities damage effect impact

But Asset Integrity covers every risk that might damage people, the environment or
asset value to the point that it is tolerable.
 “Our Assets are Safe and We Know It”
What does this mean for new facilities?

Design and Construct Phase

Select design to minimize risk
High Pressure Equipment
Low Pressure Equipment

Identify Risks Design Risk Formally Document Verify &

Construct
Mitigation Barriers Operations HSE Case Handover
RISKS TOLERABILITY & ALARP Design HSE Case

Identify Assess Control Recover

DOCUMENT
“Our Assets are Safe and We Know It”
What does this mean for operating facilities?
Operate Phase
Inspect & Maintain
Schedule Inspection
Risk Barriers
Maint. Program

Plan to Operate SAP Analyze & Assure

Operations HSE Case

SAP Global

Permit Regional
Permit to to work
work
Permit to work Asset

Installation

Update
Operate within
defined envelope
Update procedures,
processes (and make
accessible)

Update
 ALARP demonstration process
MOST
EFFECTIVE Eliminate Eliminate –
Eli min ate sources of f lammable ga s rele ase

Substitute – Eliminate –

Substitute Separation –
Substitute
Eliminate
Su bstitute Compressor

-
theo hazard
Hou se for pen arra ngemen t

Se par a te c ompre
Use ssor s fro m each
processes o ther with lower risk
or methods

Isolate/Separate impact Se par a te c ompre ssor s fro m r est of p lant

Se par a te gas clou d from i gni tio n source s

IsolationSafeguards
Engineered / Separation– –
Segregate hazards and/or targets
Engineer
Isolate
PREVE NTION Desi gn f or proc ess con tain me nt inte gri ty
MITIGATION Ga s detec tion, sh utd own, blowdo wn
Engineered Safeguards –
Isolati on of igni tio n sources
PREVENTION Design
For ced to prevent
ventilatio n an unwanted event
RECOVERY Design to mitigate harmful consequences
Engineer
Organisation Organisational Controls –
Organisational
Op erator tr ai niControls – ssor upset condi tions
ng f or Co mpre
Training,Commu
Competency, Communication
ni cati on for emerg ency response
Not
Procedures
Admin Procedural
assessed in Controls
Procedural - Controls -
quantitative
Operating procedures, Work instructions,
Op erati ng procedure s Permits
Maintenance
ter ms regimes
E merg ency response proced ur es
LEAST PPE
PPE Emergency Response procedures
EFFECTIVE Personal Protective Equ ipment –
Personal Protective
N/ AEquipment
– there is no PP E effec tive against explo sion
Protect the person
What activities are part of the Must Win

(What are we doing)

EP Asset Integrity: The Journey…
Shell Internal Audit
Sustainable
Integrity
2005 = “UNSATISFACTORY”
2006 = “FAIR”
2008 = “FAIR”
Integrity

Assessments
Fix-the-kit

Time
Assess…………………….. Fix…………………. Sustain
Asset Integrity: Main areas of focus

Key Focus Areas:

• Assessing current condition of barriers
Assess/Fix
• Repairing/replacing barriers to address gaps
• Validating/updating barriers/performance standards in SAP
• Improving the planning and execution of maintenance using SAP
• Implementing new reporting (FSR) to enable real-time transparency Sustain
• Improving staff capability and competency management
• Emphasising appropriate culture / behaviours
Progress:
• Assess/fix well underway
• Standard, global “sustain” methodology/training/tools designed and agreed
• “Sustain” implementation well underway globally`
Assess and Fix – investing in the hardware
Assess Fix

Understanding the Issues… Then Restoring…

Scope
• 13,000 Wells, 50% 20 yrs+
• 20,000 Km Pipelines, 70% 20 yrs+
• 2000+ Facilities, 50% 20 yrs+
• 100,000 Manhours
Scope
• 22,000 Issues Identified
• 33 Million Manhours
• US $7 Billion Dollars
Sustain - activities have been divided into five areas

Design Technical
HSE Case
Integrity Integrity
Integrity
Leadership
Maintenance and Integrity
Operating
Execution (MIE)
Integrity

Well Integrity (WI)

Operating Integrity (OI)

Projects and Engineering

Integrity (PEI)

They are also supported by the Safety Leadership and Business Improvement enablers
HSE Case activities revolve around the HSE Case
standard and the development of HSE Bow Ties

Hazard
Threat 1 Consequence 1

Threat 2 Top Event Consequence 2

Threat 3 Barrier Barrier Consequence 3

Escalation Escalation Escalation Escalation

Escalation Escalation
factor factor factor factor
factor factor
control control control control

HSE Critical Elements

HSE Critical Tasks

• Engineering
• Maintenance
• Operations
MIE is focused on delivering effective Maintenance
Execution and Integrity Assurance across our assets

Establish Basis
HSE/Safety Key
Case &
HSE Mgt Risk &
System Reliability Maintenance Execution
Define Management
Performance
Standards (PS) Integrity Assurance
Identify & Acceptance
Safety Critical Criteria
Planned
Element (SCE) Maintenance
Optimisation Control
Structured PS
Deviations
Asset & Acceptance
Register Criteria

Deviation
Control
Set up
PM Plan

Visualise the
Status
Work the Process
Prepare
Preventive
Work
Follow-on Schedule
activity ident. Execute Close Out Analyse
Work
Identify & Prepare
Prioritise Corrective
Corrective Results Visibility
Work Assurance Task
Work Recording of
Shop Paper
(QM) Results
Auto-follow on request
Well Integrity is implementing the Well Integrity
Management System (WIMS)

Deliverable have (and will) included:

Identification of all wells for which Shell is liable for integrity
Development of Well integrity standard and WIMS
WIMS training cascaded across all regions
Integrity assessment (FAIR+ER) on all wells, gap closure plans
developed and closed
All wells actively managed using WIMS (load, operate, suspend,
abandon)
Expansion to include corrosion monitoring
Rollout to JVs and NOVs
Operating Integrity delivers the Field Operations
Blade of the Operational Excellence (OE) Standard

Field Operations Blade Elements of the OE Standard

1. Operating all our facilities within up to

date operating envelopes
2. Managing (rationalising and knowing
how to respond to) alarms
3. Effective use of Permit To Work systems
4. Clear, consistent and effective daily
communications and shift handovers
5. Having accessible and up to date
procedures which are followed consistently
6. Having accessible and up to date critical
drawings and documents
7. Have visibility of over-rides, inhibits,
temporary repairs and temporary equipment
and a process to manage them
8. Having only competent people in all HSE
critical roles all the time
Projects and Engineering focus areas / progress
Key Focus Areas:
Specify mandatory Process Safety Basic Requirements (PSBR) and any step-out
process by YE2008
Help conduct a PSBR gap analysis and develop a closure plan for completion by
YE2013
Specify/update common group-wide Design and Engineering Manuals (DEM) by end
2010 (first phase 2009)
All projects are delivering on the asset integrity promise* prior to start-up. (50% Top
70 on track by end 08, 100% by end 09 - all others to follow)
All assets are provided timely and efficient engineering support.
• Staff allocated to liquidate the regional budgets for AIPSM scope improvements (“fix”)
(eg re-validation of HAZOPs, HSE Cases, As-built drawings, envelopes etc.) by end
2011
• Staff allocated to support the subsequent “sustain” scopes Incorporate asset integrity
into OPMG by YE2008
Full compliance with the new Engineering Standard and with new DEMs
All engineering staff are aware of AIPSM. Staff that have a role in AIPSM are aware
of their obligations (eg an HSE critical role) & have the right level of
competence
Engineers working in Asset support feel as valued as engineers in Projects

*The “promise” comprises delivering HSE Cases (updated for brownfield), showing ALARP/tolerable design, as-builts, asset register with
SCEs and Performance Standards + maintenance routines, operating envelopes, skilled operator workforce, start-up plan
 AI Commitments
Group:
• AIPSM standard, manual implemented by YE 2012 (except for installation of PSBRs)
• Process Safety Basic Requirements, (PSBRs) Plans by YE 2010, complete as agreed EP Director & Shell
CEO
• Design & Engineering Manuals (DEMs) mandatory per agreed transition plan
Metric Targets
Board: 2009 2010 2011 2012
• Assess complete YE 2008 SCE PMs 95% 98% 98% 98%

• Wells Fix complete YE 2009

SCE 95% 98% 98% 98%
• Pipeline & Facility Fix complete YE 2011 CMs
Data 3/4 4/4 4/4 4/4
Maturity (75%) (100%) (100%) (100%)
Internal Commitments:
• Maintenance & Integrity Execution (MIE) work-stream scope complete YE 2010
• Operating Integrity (OI) work-stream scope complete YE 2012
• Top 70 projects AIPSM deliverables implemented by YE 2009
• Calculative on 45 Technical Integrity Framework (TIF) elements by YE 2010
2009 AI delivery
Regional/OU/Asset
OI pilots at 2 locations Q3/4
Continue Fix Programme (Wells, Facilities,
Pipelines) Q4
Begin Gap Closure Planning process for PSBR’s,
begin gap closure activities as planned
Create Plans for drawing updates and begin gap
closure at agreed pace Q2
Create Gap closure plans for TI requirements on
non Top 70 Projects Q2
Continue MIE implementation
Plan OI implementation Q4
Conduct HSE Case Gap Analysis and create
closure plans Q2
Continue implementation of plans to achieve TI
calculative by YE 2010
Central
OI delivery design complete (with Regional
staffing) Q2
HSE Case Gap Assessment Methodology
Developed Q1
Cumulative Risk evaluation methodology
developed and delivery approach agreed Q2
Risk Assessment for Projects DG2/3 developed
and agreed Q2
Update OE standard and ORP to include
AIPSM requirements Q2
Update KPI’s to include full AIPSM scope Q2
Support PSBR gap closure planning
Establish EP critical drawing requirements – Q1
Support HSE Case gap closure
GROUP AIPSM STANDARDS AND MANUALS
AI-PSM Standard / Manual Status
All Group Standards and Manuals are MANDATORY for all companies Under Operational Control
For Non Operated Ventures (NOVs), they are not mandatory but should be promoted through the Shell
'governance‘ structure.

Status:
AI-PSM Standards - in force as of 1 October 08
AI-PSM Transition Manual has been agreed by RDS CEO
• Spells out time line to achieve full compliance
AI-PSM Application Manual (issued 1 January 2009)
• Spells out e.g. what is expected of Project Managers and Asset Managers
New Design and Engineering Manuals (issued on 1 January 2009)
• DEM1 will “mandate” certain design standards (DEPs) pertinent to AIPSM on all future projects and
modifications
• DEM2 will specify certain design and operational standards that need to be applied to all our assets

The AI-PSM Standards and Manuals are owned by Group HSSE and will reside in the Group HSE
Framework.
There are three main areas of immediate focus
arising from the Standard
DEM 1 will mandate specific DEPs to be applied in future designs and operations.
• DEM1 will be mandatory in all projects that have not yet passed DG3 … and applicable to
“modifications” (see definition later)
• Derogations to be approved by Delegated Authorities (ie TA1s)
• There will be a phased approach to mandating DEPs under DEM1. Phase 1 will be in force
as of 1.1.09 and will mandate the use of ca. 75 DEPs that are considered vital for assuring
AIPS. Subsequently in Phase 2, there will be a roll out of DEPs that are key to AIPS and
that have been suitably revised to meet this purpose.
DEM 2 will identify the ‘Process Safety Basic Requirements’
• Mandatory for all locations and, where necessary to be compliant, will be retroactively
applied to existing assets and to projects.
• Gap Closure plans to achieve compliance to be developed by 31 Dec 2010 latest.
• Implementation timing to be agreed (after completion of gap closure) between ECMB & EC
CEO
A Statement of Fitness will be required from all Asset and Project Managers. These are
required:
• Before starting or commissionaing a new asset
• When restarting an asset after an incident, modification, an overhaul or otherwise when the
asset has been out of service
• Expectation that these form part of annual letter in 2009
Other elements of the Standard will be captured by the AI Must Win activities
Glossary of Terms
 Glossary of AI Terms

AI - PSM Asset Integrity OI Operating Integrity

ALARP As Low as Reasonably Practicable PDF Project Delivery Framework
CM Corrective Maintenance PEI Projects and Engineering Integrity
DCAF Discipline Controls and Assurance Framework PM Preventative Maintenance
DEM Design and Engineering Manual PS Performance Standard
DEP Design and Engineering Practice PSBR Process Safety Basic Requirement
DG (1,2 Decision Gate (1,2 etc) PSM Process Safety Management
etc)
PTW Permit To Work
FAIR Focused Asset Integrity Review 
RAM Risk Activity Matrix
FAIR+ER FAIR + Equipment Review
SC Safety Critical
FSR Facilities Status Reporting
SCE Safety Critical Element
HAZOP Hazard and Operability 
SG (1,2 etc) Stage Gate (1,2 etc)
HEMP Hazard and Effects Management Process 
TA Technical Authority
KPI Key Performance Indicator
TI Technical Integrity
MAH Major Accident Hazard
TIF Technical Integrity Framework
MIDLT Maintenance and Integrity Discipline Leadership
TR Total Reliability
Team
WI Well Integrity
MIE Maintenance Integrity and Execution
WIMS Well Integrity Management System
MT Maturity Tracker
NOV Non Operated Venture