Reliability & Maintenance Conference & Exhibition

May 22-25, 2007

George R. Brown Convention Center
Houston, TX

RMC-07-113 Operating with Integrity

Presented by:

Martin Hinchliffe Peter Elliot

Operations Excellence Head of Integrity
Advisor Management
BP BP
Sunbury on Thames, Sunbury on Thames,
Middlesex Middlesex
UK UK

National Petrochemical & Refiners Association 1899 L Street, NW 202.457.0480 voice

Suite 1000 202.429.7726 fax
Washington, DC www.npra.org
20036.3896
This paper has been reproduced for the author or authors as a courtesy by the National
Petrochemical & Refiners Association. Publication of this paper does not signify that the
contents necessarily reflect the opinions of the NPRA, its officers, directors, members, or staff.
Requests for authorization to quote or use the contents should be addressed directly to the
author(s)
Operating with Integrity
NPRA Reliability and Maintenance Conference
24th May 2007
Peter Elliot - Head of Integrity Management, BP
Martin Hinchliffe – Operations Excellence, BP
 The two people in front of you………
• Martin Hinchliffe – Operations Excellence
• Group Safety and Operations
• Central Function
• Refining background in Mobil and
BP/Group Technology, Safety and
Operations
• 25+ yrs Line Maintenance,
Operations, Projects and Turnaround
experience.
• Supported development of Integrity
Management Standard. Developed
Group Operating Management System
• Peter Elliot – Head of Integrity
Management
• Group Technology
• Central Function
• Background:
Petrochemicals/E&P/Group HSE
Director
• 22 year service in BP
• Experience HSE, Engineering,
Projects, Operations
• Last 3 years leading the development
and roll out of the Group wide
Integrity Management Standard
2
“We Never Have Major Accidents” !

“I have never been in any accident of any sort

worth speaking about….
Nor was I ever in any predicament that
threatened to end in disaster of any sort.
I am not very good material for a story”

Veteran Sea Captain interviewed about his

many years at sea in 1907.

E J Smith Captain of the Titanic

3
Titanic
Titanic1912
1912

4
Today’s Presentation

• Integrity Management Challenge around the world

• Safety of Plant and People
• Integrity Management Incidents
• Managing Plant Process and People
• Group Operating Management System
• The Integrity Management Standard
• Engaging People in IM - IMagine the Difference you can
Make

5
Integrity Management Challenge around the
world

BP is an oil, gas, petrochemicals and renewables company

We employ around 96,000 people

We have operations on 6 continents and in over 100 countries

…market capitalization $204 billion (as at Feb 2007)

…annual revenues/turnover of $262 billion (in 2005)

…one of the 10 largest companies in the world

…with approx 28,500 service stations worldwide

…serving 13 million customers every day

6
BP’s heritage

7
What we do

BUSINESS SEGMENTS

RESOURCES CUSTOMER FACING

Exploration & Gas, Power & Renewables
Refining & Marketing
Production Integrated Supply & Trading

(including Acetyls & Aromatics

from Petrochemicals)

8
Our global presence

Oil
Gas
Chemicals
Refining
Market
positions
An opportunity and a responsibility
9
 Where our people are located
BP Sunbury ~3500
E&P
R&M
GP&R Middle East,
Caspian & Russia
2,950 (100,000+ TNK-BP)

North Europe
America 42,600
39,200
Asia &
Australasia
11,600

Africa
3,500
Latin America &
Caribbean
4,500

10
 Safety in Operations 2006
To ensure that everyone in
and around our operations
is always safe
Workforce Fatalities To ensure that plant contains hazardous
30 non road related road related
materials (hydrocarbons and toxic
25 materials) securely and sustainable
20
15 Oil Spills greater 1 bbl
10
5
1200
0 1000
1999 2000 2001 2002 2003 2004 2005 2006 800
600
Recordable Injury Frequency 400
200
1.6
1.4 0
1.2 1 999 2000 2001 2002 20 03 20 04 2 005 2 006
1
0.8
0.6
0.4
0.2
0
1999 2000 2001 2002 2003 2004 2005 2006

11
 Safety of People and Plant

Piper Alpha Disaster

• BP has made significant progress
in safety performance as measured 1.8

by injury frequencies 1.56

1.6
• In addition, a number of safety 1.44

innovations have been introduced 1.4 Safety in Performance Contracts

– e.g. Golden Rules 1.22 1.2
1.18
1.2
• BP also had recognised the need
for, and benefit of, a consistent 1
approach to Group risks – e.g.. the 0.84
Driving Safety Standard, 0.8 ASA
introduced in 2004 0.6
BP Amoco Merger
• Key Group Mandatory Operational 0.6
0.44 0.43 0.43
Standards are 0.39
0.4 0.27 0.25
− Integrity Management 0.19
Clear Vision Introduced 0.13 0.10
0.2 0.09 0.08
− Control of Work Golden Rules of safety

− Driving 0
87 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 2004
− Marine Operations (2007)
Measures Days Away From Work Case Frequency (DAFWCF) per 200,000 hours

12
 Why is Integrity Management so important?

Phillips Pasadena US
1989. 23 fatalities
Flixborough UK 1974 Piper Alpha UK,
27 fatalities 1988,167 fatalities

13
Olympic Pipeline, Bellingham, June1999

14
Belgium, July 2004

15
Buncefield Oil Depot – Dec 2005

16
Texas City Refinery, March
15 fatalities, many injured
Thunder Horse PDQ
Listed 21 degrees, now re-levelled

18
Alaska Spill 2006

19
the 3Ps- Managing Plant Processes and
People
Three layers of protection to reduce the potential for major incidents and losses:
− plant – engineering hardware, control systems, physical layouts
− processes – management systems to identify, control and mitigate risks, and
drive continuous operational improvement
− people – capability in terms of leadership skills, relevant knowledge and
experience, and the organizational culture they create
‘Hard barriers’ are more reliable than ‘soft barriers’, but all ultimately rely on people

hazard ‘hard’ barriers ‘soft’ barriers

reduction

accident
hazard
or loss

physical procedures generic people’s

controls systems behaviors
20
The role of leadership

HSE & Ops

Performance & Risk

Plant OMS & Process for People

Integrity Management & Culture

Leadership

21
 Evolution of BP HSE Management Systems
& Management Interventions / Group Standards
The
TheJourney:
Journey: ISO management systems:
• • gHSEr 9001 (Quality),14001 (Environment), 18001 (OH&S)
gHSErhashasserved
servedus uswell
welldelivering
delivering
personal safety,
personal safety,
• • AAseries
seriesofofinterventions
interventionshave
havebeen
been BP Management Interventions
used to supplement gHSEr in
used to supplement gHSEr in responseresponse Golden
MAR PSIM Driving
totoincidents,
incidents,audit
auditfindings
findingsand
andneed
needfor
for Rules Safety
further detail
further detail
• • The
TheBPMF
BPMFand andCode
CodeofofConduct
Conduct
provide context for a fundamental Specific
provide context for a fundamental
review Requirements
review General expectations-
based
oms
management systems

(BP)
Improvement of HSE

Scoring
system gHSEr Group
GroupStandards
Standards
(BP) • • Integrity
checklist
OIAS IntegrityMgt.
Mgt.
• • COW / Driving
COW / Driving
(BP)
ISRS
(commercial)
Nothing ASHEE Green
formal (Amoco) Book

OES
(ARCO)

Pre-1990 1991 1994 1998 1999 2002 2006

22
OMS Framework

Business Processes

23
Operating Management System

24
OMS Continuous Improvement

25
 Building Blocks of Operating

Business
Sustainable specific
Competitive
Advantage Excellence
Business Impact

Efficiency
Neutral

Basics &
BP Requirements
Business Value
Destruction
Legal Compliance

Catastrophic
Loss Significant Risk
Mitigation Essentials

26
Principles

Measurement is used to We deliver what is promised

understand and sustain and meet the expectations of
performance our key stakeholders

Our leaders exhibit visible,

purposeful and systematic Staff at all levels of our
leadership and are organization understand and
respected by the manage risk
organizations they lead

We document and rigorously

We have fit for purpose and follow procedures for safe and
agile organizations staffed effective operating
with competent people.

Our operations are continuously Our plants, facilities and assets are
optimized to improve performance and fit for purpose throughout the
delivery from our assets lifecycle of the operation

27
47 Sub-Elements of Operating

Results Privilege to Operate

Metrics & reporting Regulatory compliance
Assessment & audit BP requirements
Performance review Community & stakeholder relationships
Budget management Customer focus
Ethics/Social responsibility

Leadership Risk
Leadership and accountability Risk assessment & management
Operations strategy & policy Safety
Planning & control Process safety
Resources & implementation Health
Communication & engagement Industrial hygiene
Culture Security
Environment
Crisis management & emergency response

Organization Procedures
Organization Operating procedures
People & competence Management of change
Operating discipline Information management & document control
Organizational agility Incident management
Organizational learning Permit to work
Working with contractors

Optimization Assets
Plant optimization Plant integrity
Energy efficiency Reliability
Feedstock & Product scheduling & inventory Maintenance & turnarounds
Quality assurance Facility design & construction
Technology Projects & Operations integration
Procurement & materials Decommissioning &remediation
Continuous improvement

28
What is the Integrity Management Standard?

The Integrity Management (IM) Standard is a BP Group functional

standard that outlines accountabilities, practices, procedures, and
competencies meant to ensure the physical and operational integrity of
BP’s facilities. The overriding objectives are to eliminate uncontrolled
releases and prevent equipment or infrastructure failures so as to avoid
serious harm to people, the environment and BP assets.

It contains 10 Elements, each dealing with a critical aspect of facility

design, operation, and maintenance.
To whom does it apply ?
……all wholly owned and operated BP Business Units, projects, facilities,
sites and operations…..and BP shall endeavor to ensure JVs and
contractors adopt the Standard
When does it become operational ?
By 31 December 2008 all BP operations must either meet the IM standard,
have been granted an exception, or cease operations.
29
 IM Standard Programme 2003-2009
Appraise Select Define Execute Operate

• Loss of • Review of existing GROUP • Ongoing validation of

Containment standards and By Q1 2005 • Issue Execute risk/benefits
identified as Group documents carried • Finalise and issue Phase IM Standard assessment based on
Level Risk out Define Stage IM actual performance
Standard
• Phased execution
• Gaps identified • Issue Group IM
based on business
• Management ETPs Guidance document • Compliance with
priorities within
Framework EAs • Agree Metrics compliance period standard periodically
identifies IM as a MAR • Create reviewed via Internal
Group Functional Communication Audit
Standard • New Draft IM strategy and plan. • Segments/ BUs to
Standard written by Ongoing close gaps versus • Effectiveness
cross–segment team • Supporting material plan routinely reviewed
• Continuing Integrity developed to plan and embedded in
Incidents occurring • Series of Cross- throughout 05 • Group and local and central
around Group segment workshops SEGMENTS Segments to performance mgmt
planned and carried By end 2005 latest monitor and report
out to identify costs • Develop progress against
plan • Performance mgmt
and benefits implementation
system core part of
Guidance • By end 2008 all
standard governance
• Metrics proposed • Identify gaps to meet applicable locations
to be process
IM Standard
• Identify business In compliance • Review and update of
costs and produce
Exemption issued, Standard by Function
implementation plans
• Input budgets to or Closed
annual business
PSIM planning cycle
2003 2004 Dec 05 Jan06 Dec08 Jan 09
Std 2001
Functional Function/Segment Segment Planning with Segment/ BU Segment/BU
Analysis Consultation Functional Support Implementation Operations
30
Components of the Group IM
Standard

Major PSIM
Accident Risk Standard
And ETPs

IM Accountabilities
(EAs, SPAs)

31
Risk
IM standard – mostly
frequency reduction

MAR measures – mostly

consequence reduction

32
 Group Integrity Management M ajor
Accident Risk
Standard Engineering
PSIM
Standard
Technical
Practices
IM Incident : Any incident where the root cause would be
addressed by the IM Standard and there is actual or
potential harm to people or the environment including
loss of primary containment or failure of an engineered IM Accountabilities
(EAs, SPAs)
system.
1. IM Accountabilities - appointment of SPAs & EAs
2. Competence – define critical IM competencies, assess staff & contractors
3. Hazard Evaluation and Risk Management - identify hazards, assess & manage
risks. Mandates MAR of Group Concern to be reported to GVP Group Technology with
action plan.
4. Facilities and Process Integrity - design for Integrity throughout lifecycle &
compliance with STPs & operational practices
5. Protective Systems - Installation & maintenance of protective systems & devices
based on hazard evaluations/risk assessments to prevent/ mitigate loss of containment
6. Practices and Procedures - STPs to be developed consistent with Group ETPs
7. Management of Change - all operations to apply a management of change process
for temporary & permanent changes
8. Emergency Response - Plans in place to respond to a serious IM related incident
9. Incident Investigation and Learning - Investigate root causes of IM related
incidents & share lessons to prevent reoccurrence
10. Performance Management and Learning - IM Performance management system
with KPIs. Annual IM Group risk report identifying top 5 risks per SPU by Engineering
Authorities for Group Engineering Director.
33
IM Standard Programme

• Ongoing Risk Based implementation plans in the segments

• Monitoring of metrics/KPIs at Group and Segment level
• Raising IM awareness through Monthly Updates, New Group
and segment websites, IM Standard Awareness DVD,
Workshops.
• Quarterly performance management of IM to Group
leadership
• Audit programme starting to be implemented with focus on
action closeout by segments

34
Integrity Management Learning

1. Integrity Management – Learning from Past Major Industrial

Incidents - the Process Safety Booklet Series ( see last slide
for details)
2. BP Internal Integrity Management Information Pack
• DVD with key IM Issues
• Understanding the effect of small undetected changes on
Integrity Management
• Getting workforce conversations underway on
workarounds
3. Recent Release – Imagine the difference you can make
•Integrity Management Standard Awareness film
•Group IM Website

35
Process Safety Booklets BP/ I Chem. E /A I Ch E
BP Process Safety Series - Great sources of lessons learned both inside and outside BP

Winner of the Frank Lees Medal 2004 for the most

meritorious publication on safety and loss prevention IChemE:
Winner of the Frank Lees Medal 2004 for the most meritorious publication on safety and loss prevention.
Produced by BP and endorsed by IChemE's Loss Prevention Panel, these books were developed to complement safety training.
They are ideal reference tools within the workplace, increasing awareness of hazards and helping operators to understand safe
operating practices and procedures.

Confined Space Entry

Hazardous Substances In Refineries
Hazards of Air and Oxygen
Hazards of Electricity and Static Electricity
Hazards of Nitrogen and Catalyst Handling
Hazards of Steam
Hazards of Trapped Pressure and Vacuum
Hazards of Water
Hotel Fire Safety
Liquid Hydrocarbon Tank Fires
Safe Handling of Light Ends
Safe Furnace and Boiler Firing
Safe Tank Farms and (Un)loading Operations
Safe Ups and Downs for Process Units
Control of Work
Integrity Management Learning from Past Major Industrial Incidents (A I Ch E)
I
10% IChemE member discount

For more information or to purchase, follow the links or contact Book Sales on tel: +44 (0)1788 578214, fax:
+44 (0)1788 560833, email: sales@icheme.org 36
37