Marianne Eide, Jeroen van der Hejden og Bo Malmquist

November 2012

Knarr FPSO Storulykkerisiko

Forebyggende arbeid som gjøres i

utbyggingsfasen

Legal notice

Certain statements included in this presentation contain forward-looking information concerning BG

Group plc’s strategy, operations, financial performance or condition, outlook, growth opportunities or

circumstances in the countries, sectors or markets in which BG Group plc operates. By their nature,

forward-looking statements involve uncertainty because they depend on future circumstances, and relate

to events, not all of which are within BG Group plc’s control or can be predicted by BG Group plc.

Although BG Group plc believes that the expectations reflected in such forward-looking statements are

reasonable, no assurance can be given that such expectations will prove to have been correct. Actual

results could differ materially from the guidance given in this presentation for a number of reasons. For a

detailed analysis of the factors that may affect our business, financial performance or results of

operations, we urge you to look at the “Principal risks and uncertainties” included in the BG Group plc

Annual Report & Accounts 2011. Nothing in this presentation should be construed as a profit forecast and

no part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to

invest in BG Group plc or any other entity, and must not be relied upon in any way in connection with any

investment decision. BG Group plc undertakes no obligation to update any forward-looking statements.

No representation or warranty, express or implied, is or will be made in relation to the accuracy or

completeness of the information in this presentation and no responsibility or liability is or will be accepted

by BG Group plc or any of its respective subsidiaries, affiliates and associated companies (or by any of

their respective officers, employees or agents) in relation to it.

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“Taming the two Beasts”

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Occupational Safety – The Lion

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Hunts ? In packs

Detectable ? Often visible and audible

Results ? A born killer

Fully tame it ? Never

Leave unguarded ? Never

Watch it ? Always

Asset Integrity – The Tiger

Hunts ? Alone

Detectable ? Secretive & camouflaged

Results ? A born killer

Fully tame it ? Never

Leave unguarded ? Never

Watch it ? Always

dreamstime free stock images

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Knarr Field Development

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• Jordbær discovery July 2008 FPSO Contract June 2011

• Concept Selection April 2010 FPSO sailaway Dec. 2013

• PDO Submission Jan. 2011 First oil May 2014

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Asset Integrity Standard throughout the life-cycle

Design & Build

Integrity

Sustain

Integrity

Operate

with integrity

Asset

Integrity

Maintain BarriersIdentify &

create Barriers

Working

within the

Barriers

Design & Build

Integrity

Sustain

Integrity

Operate

with integrity

Asset

Integrity

Maintain BarriersIdentify &

create Barriers

Working

within the

Barriers

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Barriers in the Lifecycle

Technical (initial &

ongoing) Integrity

Operating

(ongoing) Integrity

Asset Integrity = Design Integrity + Technical Integrity + Operating Integrity Assess & treat risk

Documentation

Communicate

Assess & treat risk

Construct to design

Document as-built

CMMS & Maintain fit for ops

Understand changing risk

Measure performance

Communicate

Assess & treat risk

Operated by competent staff

Within parameters & controls

Manage ongoing change

Communicate

Design (Initial) Integrity

Risk Understanding Maturity & Safety Cases

Boundaries

• Limited to Knarr Central and West

• No shore based processing facilities

• No new/unproven technology

• Compliance BG and Norwegian regs

Project drivers

• Health, Safety & Environment

• Schedule

• Value

• Flexibility to reserves

• Maximise recovery of oil and gas

Knarr Concept Selection

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Subsea tie-back to an existing host

Subsea tie back with subsea processing

Compliant tower (wellhead facility)

Mini SPAR (wellhead facility)

TLP with export of oil via pipeline or FSO

SPAR with export of oil via pipeline or FSO

Semi-Sub with oil export via pipeline or FSO

FPSO development, with subsea templates

Pre-FEED Hazid & Prelim. QRA

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Early Concept & Define Activities

• Safety Layout Review – Topsides

– Early identification of possible ’Major Accident Hazards’, ’Initatiors’ and ’Escalators’ and their relative proximity

– Redistribution of ’, ’Initatiors’ and ’Escalators’ to mitigate ’Major Accident Hazards’

– To build in ’Inherent Safety’

• Concept based Working Environment Impact Assessment

– Early identification of shortcomings in design wrt

– NCS and NORSOK compliance

– “Logistics” for the LQ

– Functionality and interfaces between different functional areas

– Potential space issue related to technical installations

– Significant potential for freeing space (excessive cabin size)

– Paramount to include correct competence, especially Architectural with Offshore Design experience

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Early Concept & Define Activities

Safety Layout Review

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Free standing H-rated blast walls

Jet fire deflection

Before - SLR

After - SLR Free standing H-rated blast walls

Knarr FPSO

Requirements

• All PSA regulations including

NORSOK

– S-001 Technical Safety

– S-002 Working Environment

– Z-13 Emergency Preparedness

& Risk Assessment

• 50 BG Standards

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Number Standard

BGA LNG MAR TS 1 Offshore Marine Assurance

BGA OPS GEN OS 1 Management of Competence Assurance

BGA ENG PROC TS 2 Safe Plant and Equipment Isolation 02a

BGA ENG FPSO TS 2 Floating Production Storage & Offloading Systems

BGA ENG PROC TS 3 Relief, Blowdown and Flaring Rev 03a

BGA DEV PT OS 6 Production Data Mgt System

BGA BGA GEN OS 11 Asset Integrity Management

BGA ENG PROC TS 12 High Integrity Protection Systems HIPS Rev 02a

BGA ENG PROC TS 15 Process Safety in Design

BGA PM PM OS 23 Managing Precommissioning Commissioning in Projects

BGA BGA OPS OS 43 Offshore Marine Operations

BGA OPS GEN OS 44 Aviation Operations

BGA HSSE SAF ST 1526 Safety Case Rev 01

BGA BGA OPS OS 22 Permit to Work System Requirements

BGA BGA OPS OS 20 Entry into Vessels & Confined Spaces

BGA BGA OPS OS 30 Control of Temporary Equipment

BGA BGA OPS OS 33 Working at Heights

BGA BGA OPS OS 34 Management of Over-Rides

BGA BGA OPS OS 42 Hoisting and Lifting

BGA BGA OPS OS 52 Maintenance Management

BGA BGA OPS OS 19 Application of Process Isolations

BGA OPS ELEC TS 1 Electrical Safety Rules Rev01

BGA ENG MECH TS 1 Selection of Rotating Machinery Rev 03a

BGA ENG MECH TS 2 Design and Selection of powered actuators for ESD Rev 02a

BGA ENG MECH TS 3 Piping Design Rev 02a

BGA ENG MATL TS 4 Thermal Insulation Rev 01a

BGA ENG MATL TS 7 Fabrication of Equipment and Piping Rev 02a

BGA ENG MATL TS 8 Materials of Construction Requirements Rev 01

BGA ENG MECH TS 9 General Requirements for Lifting Equipment Rev 02a

BGA ENG PROC TS 10 System Design Temperatures Due to Solar Radiation Rev02a

BGA ENG MECH TS 12 Flange Joint Management, Cleaning & Pressure Testing Rev 03a

BGA ENG PROC TS 1 Hazard and Operability HAZOP Studies Rev 03a

BGA ENG MATL TS 1 Material Selection & Corrosion Control Rev 02a

BGA ENG INST TS 1 Control, Communication and Safety Systems Rev02a

BGA ENG ELEC TS 1 Project Dev Construction Commissioning Requirements Rev 02

BGA ENG ELEC TS 2 Electrical Equipment in Flammable Atmospheres Rev02a

BGA ENG MATL TS 5 Protective Coatings Rev 02a

BGA ENG MATL TS 6 Cathodic Protection Rev 02a

BGA ENG MECH TS 8 Selection/Design Dry Gas Seals/Systems for Centrifugal Compressors

BGA ENG PROC TS 16 Gas-Liquid Separation Rev 02a

BGA BGA OPS OS 40 Shutdown Management Planning

BGA HSSE GEN ST 401 HSSE Training and Competency

BGA HSSE SAF ST 1504 Personal Protective Equipment PPE

BGA HSSE SEC ST 1505 Security

BGA HSSE ENV ST 1508 Water Quality Rev 01

BGA HSSE SAF ST 1512 Behaviour-Based Safety

BGA HSSE ENV ST 1530 Resource Use and Waste Management Rev 01

BGA HSSE SAF ST 1532 Escape Muster Evacuation and Rescue

14 See also NORSOK Standard S-001

BG Standard – Process Safety in Design Remove – Reduce – Minimize – Inherent Safety

Specific Philosophies for areas that warrant specific focus

Design Case for Safety

• Input to the Design Safety Case

– HSSE Management System

– Safety Studies and Risk Assessments

– MAHEE – Major Accident Hazards &

Environmental Events

– SCEs & ECDs – Safety Critical

Elements & Environmental Critical

Devises

– PS’ – Performance Standards

– * NB – the above is developed in the

FEED phase prior to detailed

engineering, procurement, etc.

• Design Safety Case format

– Field and Development Description

– HSSE Management System in Design

– Design Philosophies and Processes

– Development of Concept

– Facilities Description

– Control of MAHEEs (Major Accident

Hazards & Environmental Events)

– Preliminary QRA & Safety Studies

and Risk Assessments

– Description of Barriers

– SCEs & ECDs, incl. PS’

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Register of

MAHEEs

Register of

Barriers (SCEs &

ECDs)

Performance

Standards

Documented

Assessments and

Studies

Writen

Scheme of

Verification &

Validation

Review & CommentReview & Comment

Review & Comment Review, Comment &

Develop

Execute

Verification &

ValidationComplete Verification &

Validation

Written

Report of

Verification &

Validation

Completion of

Verification & Validation

Independent Verification Process

• Development of

– WSV (Written Scheme of Verification)

– Activity plans for Detailed Design, Procurement, Fabrication / Construction, MC & Commissioning, Installation , etc.

– Work instructions

• Execution of

– Verification & Validation

– Report on Verification & Validation

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• Review of

– Design Case for Safety

– Studies & Register of MAHEEs (Major Accident Hazards & Environmental Events)

– SCEs (Safety Critical Elements)

– ECDs (Environmentally Critical Devices)

– PS’ (Performance Standards)

– *Design Case for Safety is the starting point for the development of the required Independent Verification

AoC (SUT) & Operational Case for

Safety • AoC (SUT) submission will enhanced to include the requirements as for an Operational Safety Case

– Scope will be the full field development

• AoC (SUT) will be based on

– OLF 065 – Handbook for Application for AoC

– BG-ST-HSSE-AI-001 – Safety Case Standard

– IADC – HSE Case Guidelines for MODUs

– * With precedence as shown above

• Main difference to the Combined Operational Safety Case and AoC (SUT) are:

– Demonstration of ALARP

– Incorporation of the Working Environment aspects

– Posivite identification of Regulatory Compliance

– Positive identification of Deviations to Regulations

– Formal aceptance of submission by Workers Representative

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SLIDE WITH AI BOOKLET & DVD

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