PTIL/PSA

Summing Up the HSE Management

Project 1996 – 2011

• Development of Management Systems

on Health, Safety and Environment in

the Vietnamese Petroleum Industry

• Overall objective:

• To establish a sustained process of

further development of health, safety and

environment in the Vietnamese oil and

gas industry, so that major accidents and

environmental damage are avoided.

PTIL/PSA

Goals

• Project Goal

• To establish a sustainable and efficient management of health, safety and environment in the Vietnamese oil and gas industry, so that the risk of personnel injury, major accidents and environmental damage is minimised.

•

• Project Objectives

• Implementation of Petrovietnams recently developed policy and corporate requirements for HSE-management

• Further development of Petrovietnams HSE corporate management systems, tools and practices, including its HSE objectives, strategies and plans.

• Developing targeted HSE-training activities to support Petrovietnams systems developments by means of competency and capacity building.

• Forwarding the implementation and incorporation of Petrovietnams corporate HSE-management system into the development of appropriate HSE-management systems in Petrovietnams subsidiaries.

PTIL/PSA

NORAD Norwegian Embassy Hanoi

MoPI

Steering Committee

Petrovietnam Departement of Health, Safety and

Environment

PSA Klif

Statoil DnV RDCPSE

NORCONSULT ErgoPhorma Sintef

PTIL/PSA

Project Philosophy

• Only the profound knowledge of the Vietnamese Culture, Authority Systems, Legislation and Industry can be the basis for policy making within the Oil and Gas Industry in Vietnam.

• Petrovietnam in charge of this Project - A strong Organization with many roles and functions

- PV is a tool for the Political leadership to secure development in Vietnam

- In PV we find the execution of functions normally performed by Authorities in Norway

- Operational experience

- Competence

- Ambitions

- The power to change

PTIL/PSA

Inputs

• Phase 1: 1996 - 2000 - 25 360 000,- NoK

- Accumulated NPD hrs: 3760

• Phase 2: 2001 - 2005 - 20 000 000,- NoK

• Phase 3: 2007 - 2011 - 9 325 000,- NoK

PTIL/PSA

What is done: Phase 1

• 129 different tasks were planned and performed on

schedule

• Safety Management Regulation formally issued 1999 - Guidelines on Risk Analyses and Contingency

- Guidelines on Working Environment

- Guidelines on Supervision

• The Training Program - Statoil: On the Job Training in Norway (3 x 4 weeks)

- Statoil: Study Tour Norway

- DnV: Safety Management Courses (3 x 5 days)

- DnV: Risk Analyses Training (3 x 5 days)

- DnV: Computer based Risk Analyses Training (2 x 10 days)

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Phase 1, continue

• DnV: Study Tour in Norway

• Audit Training Course (3 x 5 days)

• Technological transfer, software and hardware

• Supervision - Workshops

- Audit no 1: Petronas Carigali, The Ruby Field Project

- Audit no 2: ISRS Audit towards the Vietgas LPG Plant

• ECON evaluation1998: - The Phase 1 Project has been subject to appraisals and reviews have

verified that the project was implemented successfully, on time and within

budget.

PTIL/PSA

What is done: phase 2:

• Implementation

• Develop Safety Management Systems

• Competence building: - Increase the number of persons trained

- Training Courses

- Workshops

- Audits

- VietsoPetro December 2002

- Audit No 2 on JVPC dec 2003

- Audit on Cuu Long JOC April 2005

- Guidelines

• Environmental Regulatory Development

• Expand area for Oil Spill Contingency Plan

• Technology transfer and training

• Bridge evaluation: (Contain details on deliveries) - High relevance of the Project

- The Effectiveness is high

- The Process oriented character of the objectives makes verifications of fulfillment difficult. Impact is thus difficult to verify.

- Significant management motivation indicate high sustainability

PTIL/PSA

Activities: Phase 3: What is done?

1. Baseline Study

2. HSE planning

3. HSE Audit Function

4. Risk Based Inspection Maintenance

5. Incident and Accident Reporting

6. Development of HSE Database

7. Emergency Response Management

8. Oily Hazardous Waste Management

9. HSE Document Control

10.HSE – Auditing – Support to subsidiaries implementation

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Phase 3

• Started: 2007

• Project Place as common working ground from autumn

2009 - New way of working

- The travelling Costs reduced

- New way of documenting

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Outputs: What is produced or

delivered?

- HSE Management Systems implemented

- Competence

- Regulations

- Guidelines

- Software and Hardware

- Data Management Systems

- Audits performed

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Achievements: Outcomes

• Knowledge, competence and awareness of risks related

to Safety, Health and Environment in Petroleum Sector - This knowledge is very relevant for Petrovietnam, both regarding the

development of Petrovietnam as an Institution, Operations in Vietnam, and

also when operating abroad

- The Petroleum sector is a key sector for economic development, and

access to energy is a precondition for developing a country and fighting

poverty

- Norwegian experiences are regarded as relevant for Vietnam, especially

because Norway is a Superpower within this area, and because Norway is

regarded as world leading when it comes to HSE standards.

PTIL/PSA

Impact: Long term changes

• Vietnam has during this Period of Institutional

cooperation had a tremendous economical development

• Petrovietnam, as the provider of energy, has been very

important in this development

• A shift in paradigm within modern Safety thinking had

taken place during these years. From individual safety

records to major risk approach. Texas City and DwH

accidents contributed to this shift in awareness.

• High Reliability Organizations. Petrovietnam to develop

into a HRO.

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Impact long terms

• Competence

• Friends

• Cultural understanding

• Good discussions

• Tacit knowledge

• Process of change

• High Reliability Organizations

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Sustainability

• Top management support and involvement

• International business

• The Costs of an accident

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Effectiveness

• The Project has met all the results defined by the

indicators - Implementation of Safety Mgmt Regulations and Guidelines

- Improve Safety Mgmt Systems within PV

- Build HSE Competence

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Challanges

• Communication, language, culture

• Differences in Institutional Models

• Including MoI, MoLISA, MNR&E,

• PV Group transformation, subsidiaries to be

limited companies

• Delays between the different phases

• Delays in invoicing and pay back

PTIL/PSA

Discussions and Comments ?