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Design for Safety in Offshore Oil and Gas Industry: Colombia

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“Design for Safety in Offshore Oil and Gas Industry:
Colombia”

WILLIAM GOMEZ PRETEL

World Maritime University. Malmo, Sweden.

2014
Introduction.

The development of the offshore oil and gas industry started during the nineteenth
century (1898) in California, the United States, with the first offshore oil and gas
platform. Today, due to the growing demand for hydrocarbons, explorations at sea
have increased with particular challenges such as exploitation in ultra-deep waters and
frozen seas, which has led to the development of new technologies.

Offshore activities are considered high-risk, with accidents and a high fatality rate as
well as severe damage to the environment. For example, according to Worldwide
Offshore Accident Databank (Woad), "the period 1970 to 2007, 553 accidents were
resulting in a total of 2171 fatalities" (OGP, 2011). Also, some accidents have a high
impact on societies and coastal zones, such as the "Piper Alpha" and "Deepwater
Horizon” oil spill, considered the most significant marine oil spill.

This article will analyze the importance of design for safety in offshore oil and gas
platforms and the good practices from the MODU CODE. Then will concentrate on
the implication of technical standards with safety cases. In the same way, it will
examine the regional projects in the Colombian Caribbean coast, focusing on the
recent concerns in the offshore sector, potential oil spills, and how to enforce the
design for safety in the country. Finally, it will conclude with some suggestions and
recommendations to improve this industry in Colombia and protect the environment.
1. Offshore Oil and Gas Industry.

In order to give a better understanding of the offshore oil & gas industry, its origins,
and development, it is crucial to define the term offshore. Klaas (2011) defined
offshore in the oil & gas as: “industrial activities in the open sea, starting from the
search (exploration) of oil and gas to production (exploitation) and transportation to
shore."

The development of the offshore industry has its origins in California, the United
States late nineteenth century with some wooden platforms connected to the shore
by a pier, conducted the first explorations and extraction of oil and gas ( National
Commission B.P. Deepwater Horizon oil spill, 2010). However, the offshore industry
as we know it today was established from 1930 to 1950 in the United States, with a
strict design and adaptation to the regulations took place. As a result, parameters for
design and safety such as winds, ocean-atmosphere conditions, and new equipment
began. Also, during the same period, the offshore activities took place in Maracaibo,
Venezuela, the Arabian Gulf, and the southern Caspian Sea.

As a heavy industry, offshore oil and gas activities are considered high-risk due to the
hazardous activity. For example, one of the first recorded cases occurred in 1938
when one of the frequent hurricanes of the Caribbean impacted a platform on the Gulf
of Mexico with casualties and considerable economic losses (Pratt, Priest, and
Castaneda, 1997). Consequently, a new maritime industry emerged with challenges
for new designs for safety.

Offshore Platforms. The offshore platform, also known as an oil rig, is a large
structure of steel or concrete used to explore, exploit, and process oil and gas and
storage. It is made of steel, reinforced concrete, or both. These structures are designed in
a mobile way to be installed in shallow and open waters several kilometers from the
coast. These platforms are too heavy and are considered one of the most significant
design engineering manufactured. (Sadeghi, 2007). Offshore industry includes several
activities such as exploration, exploitation, transport, and continuous support. There are
several types ofoffshore structures depending on their use and in the depth of the water:

 Application: drilling unit, which is used mainly for inland and shallow waters
(Jackupplatform), and production unit, which is for oil and natural gas production.
 Mobility: fixed units in shallow water can attach to the seafloor. The 'legs' are
constructed of concrete or steel. Another type is a Mobile unit that can be moved
from one place to another.

 Supporting: Stationary units (Tower platform) are fixed platforms attached to the
seafloor, with a solid design for extreme conditions such as hurricanes. A floating
unit (Seastar Platform) is a floating rig that looks semi-submersible.

The l a s t 2 0 years are p r o b a b l y the most c r i t i c a l offshore industry, influenced


by energy prices and extensive technology development. However, there is a
relationship between oil prices and offshore technology. For instance, during the
1990s, the low oil prices did not allow some companies to invest in new technology.
However, in the last years, to keep the production, the industry has been taking
place over the world, and “90% of deep-water reserves have been discovered in
four world regions: Latin America, West Africa, northwest Europe, and North
America” (Pinder, 2001). Finally, safety is one of the most important topics related to
this industry, considering the high risk, which requires a considerable effort to
continue safety implementation and reduce and minimize accidents.

2. Safety and Health in Offshore Oil & Gas

Concept of Safety. Safety is associated with the protection of humans. It has many
definitions, but one of the most straightforward terms is "Relative protection from
adverse consequences" (SRA) and “practical certainty that adverse effects will not
result from exposure to an agent under defined circumstances” (IPCS). In other words,
safety is criteria and a culturalway to be out of the risk and hazard in order to protect the
human life infrastructure and keep the regular operation. Furthermore, safety is affected
by many factors, such as the human element (the main reason for accidents) that depends
on the entire operation and management of equipment.

In the same way, risk and hazard are essential terms related to safety which are
defined as “the chance that a given hazardous effect will occur" (CEFIC, 2014).
Hazard as "potentially damaging physical event, phenomenon or human activity that
may cause the loss of life or injury, property damage, social and economic disruption
or environmental degradation ."(U.N. Living with Risk Report, 2004).
Safety Management. Management decisions can be considered the most crucial aspect
in an organization that faces a risk, as is the case of the offshore industry, where the
organization develops policies decisions that may affect safety and security. Attah (2010)
defined safety management as "the management process deployed to achieve a state of
freedom from the unacceptable risks of personal harm or loss or damage.”In this context,
management decisions are highly regarded as decisive in operations, culminati n g in
disasters. F o r e x a m p l e , a poor safety management system with low standards
was a determining factor causing accidents such as the Piper Alpha or Deep Water
Horizon.

Safety in offshore oil and gas Offshore oil and gas facilities are highly complex,
isolated, and inhospitable places that face a high degree of uncertainty associated with
the people that work in that environment. In addition, there is a high degree of stress due
to the climate (ocean-atmosphere conditions) andtechnological and operational problems.
Those factors are influential in designating offshore platforms such as high-risk places to
work. For example, this sector has a record of more than 500 accidents involving more
than 2000 fatalities and severe damage to the environment (OGP, 2010).

According to European Commission, the main hazards in offshore oil & gas include:
 Fire, after ignition of released hydrocarbons

 Explosion, after gas release, formation, and ignition of an explosive cloud

 Oil release on the sea surface or subsea.

There are also other accidents related to this sector, such as vessel collisions with an
offshore installation and helicopter accidents. (Christou, M. Konstantinidou M, 2012)

3. Design for Safety in Offshore Oil and Gas Platforms

Offshore platforms, like any other engineering project, require several studies and
extraordinary engineering designs and the phase of installation where the most
significant difficulties are due to the remote locations. Furthermore, most platforms
usually used in places such as the Persian Gulf, Gulf of Venezuela, Nigeria, and other
essential places are made of steel and used for exploration and production. Therefore,
the design and analysis of these structures must be done taking into consideration
many factors, including the following critical parameters:

• Environmental (initial transportation and in-place 100-year storm conditions)


• Soil characteristics

• Code requirements

• Intensity level of consequences of failure (Sadeghi, 2007).

Finally, when the designs and structural analysis are ready and client permits are
approved, the fabrications (construction) phases start for loadout and transportation.
The final phase is considered one of the most complexes, the installation.

Design for safety. The safety system is a process that identifies the risk and its potential
consequences to minimize this do so unlikely; however, the difficulties of this process
are in the location and identification of the factors that involve risk. According to Attah
(2010), design for safety constitutes five phases: problem definition, risk identification,
risk estimation, risk evaluation, and design review. In the offshore industry, the design
for safety is related to accidents, especially in the last few years with a high impact on the
design, function, and operation. In addition, every platform requires a "design safety
case" to examine the risks, their possible causes, and impacts on offshore platforms
through the design process. For instance, design for safety is achieved u s i n g
appropriate technology and resources. In addition, an assessment technique involving a
study using industry data recommends safety improvements to facilitate safety issues.

3. Good practices -MODU Code

The “Code for the Construction and Equipment of Mobile Offshore Drilling Units”
MODU code was developed by the International Maritime Organization-IMO to
maintain some minimum standards for new construction of platforms that facilitate its
international movement and operation. Its purpose is to deliver a series of
recommendations and the following steps and criteria during the design and
construction to minimize the risk to the crew, staff onboard, and the environment.

The use of this code during the construction is quite vital for inspections and surveys
to obtain a certification called “Mobile Offshore Drilling Unit Safety Certificate." It
has to be for a period specified which should not exceed five years; also, some
classification societies during the phases of platform construction required the
following steps:
 Class Notations

 Design Analysis, Plan Review & Approval


 Project Management & Vendor Equipment Coordination

 Surveys During Construction or Major Modification

 Surveys After Construction

 Statutory Inspections (ABS, 2014).

Furthermore, the MODU code has some chapters related to design for safety. For
instance, chapter 2, "Construction, strength, and materials," gives some structural and
fatigue analysis tools, welding, and anti-fouling systems. Chapter 3 mentioned the
stability criteria, watertight integrity, and freeboard. Chapter 6 "Machinery and
electrical installations in hazardous areas for all types of the unit" This chapter
classifies the hazardous areas and spaces and some information about emergency
conditions due to drilling operations. Similarly, chapters 9 and 10 contain aspects
explicitly related to safety regulations, fire emergencies, and life-saving appliances and
equipment. Finally, the MODU code in chapter 14 delivers guidance about the
operating manuals for the safe operation of the platforms in routine and emergency
conditions, especially in dangerous goods, pollution prevention, the safety of
navigation, and emergency procedures and instructions.

Technical aspect and standards. The technical aspect of safety design is detailed in the
MODU-Code by the IMO. The most important information during the construction
activities and services carried out by a surveyor include:
 Verify compliance with approved drawings

 Confirm materials, fit-up, and welding

 Examine nondestructive testing

 Witness structural integrity testing

 Verify machinery testing

 Attend system commissioning

 Certify vendor-supplied equipment and material certification

 Confirm qualification of welders and welding procedures

4. Safety Cases.

Piper Alpha, the North Sea, 1988. The Piper Alpha is considered the worst accident in
terms of loss of human lives, with 167 fatalities in the offshore industry. The piper field
is located about 120 miles northeast of Aberdeen (U.K.), and the events occurred in July
of 1986 when during an operation, a series of 3 explosions caused a large fire, where part
of the platform collapsed. The fire caused most fatalities; many of the survivors had to
jump into the sea from the high deck of the platform. This accident happened by a series
of human failures such as a lack of communication, technical failures such as the
continued pumping of gas and oil, the presence of firewalls, and the lag of blast walls. As
a result, after the accident was carried out a series of recommendations on the part of the
Department of Energy in the U.K. with the publication "The Public Inquiry into the Piper
Alpha Disaster" (Hon Lord Cullen, 1990), especially concerning the prevention of
accidents caused by fire and explosion, the mitigation of accidents, evacuation, escape
and rescue.
Macondo Blowout. This accident occurred on April 20, 2010, and is considered the
worst ecological disaster. During the catastrophe that finally sank the “Deepwater
Horizon” drifting rig, over 4 million barrels of crude oil were spilled into the Gulf of
Mexico, with a high impact on the onshore activities of the coastal dwellers, fishing,
and tourism. During the explosion, many of the workers could escape, but the accident
cost the lives of 11 workers. Furthermore, the platform sank after 36 hours, followed by
87 days of oil leakage, causing severe damage to the ecosystem. It was clear that the
accident was due to human factors caused by a poor safety culture, lack of
communication, adequate hazard identification, and implementation of procedures.
Finally, the official investigation generated a series of new regulations relating to safety
management. (Christou & Konstantinidou, 2012)

5. Offshore Oil and Gas industry in Colombia

Colombia is not considered an oil-producing nation, but in the last years, according to
ECOPETROL (Petroleum Company of Colombia), the production surpassed one
million barrels per day (BPD) (Ecopetrol, 2014), but with oil reserved proved for 12
years more onshore. The country has a coastline of 1600 KM in the Caribbean and
1300 KM in the Pacific. However, Colombia's offshore oil and gas sector started just a
couple of years ago due to the future absences of hydrocarbons. For that reason, the
government started camping, offering many blocks to international companies to find
hydrocarbons at sea with the most significant projects in the Caribbean Sea using base
cities such as Barranquilla and Cartagena. Some of these projects are in the
exploratory phase.

Furthermore, Colombia has offshore gas exploitation in the Caribbean with platforms
established years ago named "Chuchupa," which produces large quantities of gas.
Several international companies have already been established as Exxon, Anadarko,
and Halliburton, among others. Unfortunately, the knowledge of the Offshore industry
in the country is deficient and is facing some problems with the local personnel.
According to the president of the offshore logistics Colombian company "Coremar," it
is imminent to bring qualified personnel who, in many cases, are working in places like
Brazil and the Middle East (Minervini, 2014).In addition, there are deficiencies in
human resources, poor technological development, and a lack of minimum standards
in HSE activities which brings high risk in the offshore sector. In general, there is an
increased need to improve the accompaniment of the State in the processes. Also, is
essential the coordination and articulation of the national agencies in case of maritime
disasters or oil spill contingency. For example, it is not clear the role of the private
companies in oil spill contingency. In other words, Colombia has high-risk scenarios
of accidents (Ryan 2013).

Potential hazard in Colombia. Colombia is facing some hazards related to safety. Even
though the country is not directly on the path of hurricanes in the Caribbean, which are
presented annually between June and November, some platforms could be affected by
strong waves associated with winds above 35 knots. In the same way, there is a risk for
sea-level rise, known locally as “Mar de Leva," from December to March, also
associated with strong north wind (CIOH, 2013). Another potential risk is a possible oil
spill. Due to the northeast's direction, currents can directly impact the country's coastline,
affecting natural life and national protected areas such as Tayrona Park. In the same way,
one of the natural coral reef park “Islas del Rosario," located a few kilometers from the
drilling area, would be severely threatened.

Design for safety in Colombia. The maritime administration of Colombia (DIMAR) is


the agency in charge of safety regulations at sea. Colombia has recent legislation in the
offshore oil and gas industry, resolution No 674 from December of 2012, which provides
a series of recommendations for offshore oil & gas exploitation. DIMAR developed this
resolution following the guidelines given by IMO in the MODU Code related to safety,
emergency, manuals, and operations. The most important safety parts of the document
are chapter III, which gives the use of mobile units, supporting ships and ships offshore
supply foreigners, also brings up the subject of the inspections to be carried out by the
administration. Chapter IV dealt with mobile unit operations, regulated the risk
assessment and risk plans and security zones to establish the platforms, and mentioned
the navigation and communications procedures. Finally, chapter V Emphasiz e s the
minimum safety training that the staff on board must receive and the recommendations
for the training, as well as the regulation on exercises and practices, as stipulated in
resolution No A.891(21) IMO. (DIMAR, 2014). Similarly, a contingency plan has been
developed in the “National Contingency Plan Against oil spills and harmful substances
in marinewaters and rivers” (No 321/99).

Discussion

The domestic legislation is not entirely clear, and many agencies are involvedin the
offshore industry. For example, the National Hydrocarbons Agency (ANH) was created
in 2003 and is in charge of the administration of hydrocarbons in the country. However,
it is not clear its role, and the process of licenses is slow. The agencies involved are the
Ministry of Environment, in charge of the environment licenses, and DIMR in the
maritime permitting (Garcia, 2014). There is no specializing office in the industry that
articulates licenses, regulations, monitoring and control, knowledge management, and
practices in health and safety due to the country's low level in offshore topics. For
instance, a risk analysis for exploitation and exploration activities uses a "Colombian
Technical Guide" (GTC) 45, which identifies risks. Unfortunately, implementing this
strategy in the offshore industry is considered general for safety standards(Ryan M,
2013). According to Ryan (2013), the regulation is not enough in the offshore oil and
gas industry, and the country requires clear legislation. In the same way, it is essential
to define the relationships between government agencies and the roles and
responsibilities in HSE issues because there is no visible agency that could lead the
emergencies.

Conclusion.

The several accidents presented in the offshore sector during the more than 100 years
of history are a benchmark of this industry. However, there is a need to improve. For
example, after the accident of the Piper Alpha, some essential safety measures were
carried out on HSE and technology. However, the industry demonstrates the need to
continue to improve safety topics; only 22 years after Piper Alpha, another high
magnitude accident occurs, as is the Deep-water Horizon, where the impact on the
environment is still unknown.

Offshore platforms are very complex, and safety is challenging due to the various
elements surrounding them. Therefore, during the design for safety phase, the MODU
Code is a great tool to help apply safety standards and implement risk assessment.
However, all the risk factors will always bepresent and will be very difficult to calculate
associated with a high level of uncertainty. For that reason, the offshore industry
always presents a high degree of risk. Therefore, despite significant advances in the
design concepts for safety, it is required to continue to ensure safety by identifying all
types of causes. In this sense, the private sector's interest is in facilitating research that
helps to improve safety in the industry.

Colombia requires new legislation in the offshore industry to deliver the appropriate
tools for good management and implement safety practices; they also must implement
or create an agency that regulates all aspects of the offshore industry. In the same way,
the country needs to prepare national staff for safety issues in the offshore sector.
Therefore, an education policy and preparation would benefit and progress in this
industry.

National Agencies working in the offshore sector, such as the National Hydrocarbons
Agency and the Ministry of Energy, have no apparent relation with other national
entities, such as the Dimar and the Ministry of Environment. The lack of coordination
delays permitting the licenses and can affect the actions in a spill case.The National and
safety regulation in Colombia is not practical due to the lack of resources, education,
and technology with a high risk of safety issues.
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