Wednesday, 22 February 2017

Penspen awarded PIMS extension for Chilean mine - 22/02/2017

Penspen awarded PIMS extension for Chilean mine

Penspen, a leading global provider of engineering and project management services to the energy industry, has been awarded a nine-month contract extension to provide pipeline integrity management systems (PIMS) for Chile’s Minera Los Pelambres copper mine, the fifth largest in the world, by Antofagasta Minerals.

Penspen was first employed to work on the project - located at 3,600m above sea level in the Andes Mountains and 200km north of Santiago de Chile - in 2010, when it conducted a gap analysis.  Two years later, it developed a PIMS, corrosion management system, risk assessment and risk based inspection (RBI) and began providing specialist training for operations and maintenance staff at the mine.  In 2014, Penspen implemented its PIMS and corrosion management system.  It also introduced emergency plans, technical notes, a RBI update and provided in-line inspection support.

With this latest contract extension, Penspen will continue with the implementation of the PIMS and will provide additional technical assistance.

The work undertaken by Penspen will minimise the probability and consequences of failure to the 320km pipeline, which transports fluids from the mine.  

Penspen’s Carl Mook, ‎EVP Americas, said: “This contract extension win marks the continuation of a great partnership between Antofagasta Minerals and Penspen.

This is a really interesting project due to its mountain location and the different geological and technical challenges that may arise. I am delighted that Penspen can both continue to support the project with our PIMS, and provide staff at the mine with the requisite training to ensure the continued health and longevity of the pipelines.”

Ignacio Rivera, Penspen’s General Manager Asset Integrity, Chile, added:

“I am immensely proud of the work which Penspen’s mining team has undertaken.  It is because of their exceptional work ethic and dedication that we have secured this extension to the contract.”

The Minera Los Pelambres project was the first mining-related venture for Penspen, but the company has since undertaken a number of mining projects across Chile and Peru, as more businesses realise the potential of using pipelines to transport minerals and associated products.

Tuesday, 21 February 2017

Getting on the Same Page in Process Safety - 21/02/2017

Getting on the Same Page in Process Safety

On day one of the StocExpo Europe 2017 Conference, Ian Travers, Principal Consultant (Process Safety), will look at how to see through the complexity and technical jargon that surrounds process safety in many organisations to just focus on the most important issues in the prevention of a catastrophic incident. Here he provides a taster of his talk:
In catastrophic risk management the hazardous properties of materials, substances and energy never take any time off to allow us to figure out how to contain and manage the associated risks. We fully know how to effectively manage such risks through a system known as process safety management. So why do major catastrophic accidents keep occurring? Such events don’t usually occur because of a blatant disregard for safety precautions; especially as many who bear the full impact are the front-line workers who are so frequently blamed as the cause for not following the rules or procedures. 

Understand and Describe Risk in Plain Language  
The answer lies in the education and understanding of major hazard risks and in presenting the concepts of process safety management in plain and simple terms for all those involved. Delivering safety and environmental protection involves people at all levels within an organisation and is not just the responsibility of a small dedicated professional team. We all have to ‘Get on the Same Page’ and get involved in the same way, because the hazards are always present, no matter how inconvenient for us. Confusion, misunderstanding and misaligned priorities can all lead to catastrophic consequences. 

The term process safety does not conjure up a shared understanding. It has tended to be the preserve of safety professionals and engineers who frequently describe this aspect of risk management in complex language; using phrases such as safety barriers, bow ties, as low as reasonably practicable, ALARP, SFIRP, Safety Integrity Level, SIL, HAZOP, HAZID and more.

No wonder that ordinary workers and senior executives lose interest within the first few minutes into a discussion. A simpler, plain language approach is needed.

Simple Questions 
The way to manage catastrophic risks can be broken down into simpler solutions, agreed and communicated throughout an organisation: 
How could it go catastrophically wrong? – Hazard Identification.
Where/when will the process most likely go wrong and what will the consequences be? 
What controls or systems are there to prevent a major accident or to limit escalation? – 
Which of these are most vulnerable to failure?
What information is available to show these control systems continue to operate to the desired performance standard? 

Driven from the Top 
Implementing and maintaining a process safety management system does not occur spontaneously. It has to be driven and led by senior executives from Board level down through the organisation. Strong process safety leadership is required.

Controls need to fit the Risk like a Glove 
Unfortunately, there is no ‘one size fits all’ solution to the control and mitigation measures required to prevent the catastrophic failure of plant and its equipment. Controls have to be closely tailored to the risks, the way the plant or equipment could fail, and the profile of the organisation. If key measures are missed a major hazard challenge might not be effectively controlled. Overdoing it will lead to ‘gold plating’, incurring unnecessary expense in design and operation.

A great deal of thought and effort is required to design and implement the right system, tailored to the risk profile of the organisation. 

But then it all Goes Wrong from Day One 
Most effort and resource is applied during the design and implementation stage, and subsequently the system is expected to run without failure – like a modern high-tech automobile. 

Unfortunately, systems of control start to deteriorate immediately they are implemented. This is mainly due to modification and change, but also human ingenuity to work outside documented procedures and systems to get the job done, save time and improve performance. This endeavour is to be welcomed provided that control of major hazards is not degraded.

Regrettably, many well-meaning employees have not been involved in the system design or had the relevance of the procedure properly explained to them. Most people have no concept of the hazard, let alone of process safety risk. 

Get on the Same Page 
Use plain language – after all people ‘do’ safety not systems. My proposal for everyone involved in major hazard risks is to ‘get on the same page’. This ensures that everyone working at such risk fully understands the hazards they are exposed to, and accepts the associated control measures and procedures. A degree of differentiation and visibility is also required against a backdrop of ‘proceduralisation’ of business activities.

Cover Asset management at the Same Time and Stay in Business 
The good news is that effective asset management and good process safety management are one and the same thing. Both aimed at effective containment of hazardous substances or energy, and both rely on accurate information on the status of the plant, process conditions and of control systems. 

Knowledge and understanding of how such systems degrade and fail is essential. Get this combination of asset management and process safety right and not only will the plant be safe but it can be run efficiency, with costly activities, such as maintenance, being precisely targeted to avoid unnecessary expense. Achieving this goal of safe operation, reliable plant and reduced operational costs is now well understood, and has been increasingly the practice of high reliability organisations. They can operate with a ‘no surprises’ asset performance through effective KPIs and positive confirmation that critical safety systems, including human performance, are intact and delivering the desired safety outcomes. 

High Reliability and No Surprises 
High reliability major hazard business can be readily achieved through simplifying and demystifying process safety management; engaging everyone within a high hazard organisation by using common plain language descriptions of risks and control measures so that the importance of critical procedures and control measures are distinguished from other activities, understood and accepted. Make risks and performance of critical control measures visible and describe them using simple language. Undertake this alongside an integrated asset management programme and a highly effective, reliable and profitable business will be achieved.

Ian Travers is one of 30 world-leading experts speaking at StocExpo Europe 2017. The show also features a packed exhibition hall, with over 200 suppliers from across the globe. For more information on visiting the exhibition, booking as a delegate for the conference or becoming a media partner, please call +44 (0)20 8843 8800 or visit the event website.

Wednesday, 15 February 2017

Kvaerner ASA: 4th quarter 2016 - Solid results through predictable project execution - 15/02/2017

Kvaerner ASA: 4th quarter 2016 - Solid results through predictable project execution

Solid results through predictable project execution. Kvaerner delivered an adjusted EBITDA of NOK 219 million in the fourth quarter, and NOK 680 million for 2016. "Predictable project execution coupled with cost reductions and productivity improvements continue to be the key drivers behind our strong performance," says Kvaerner's President & CEO Jan Arve Haugan.

Kvaerner delivered solid operational performance in fourth quarter, driven by successful execution and completion of milestones in the projects. The effect of better performance and improved project-portfolio mix has resulted in a higher margin compared to last year.

In the fourth quarter 2016, total revenues, including jointly controlled entities (Field Development segment), amounted to NOK 2 378 million, compared to NOK 3 334 million in the fourth quarter last year. Adjusted EBITDA, including jointly controlled entities, ended at NOK 232 million (9.7 percent EBITDA margin), up from NOK 202 million (6.1 percent EBITDA margin) in the corresponding quarter in 2015. Net cash inflow from operating activities was NOK 244 million in fourth quarter.

"During one and the same week in December, we flawlessly executed three very well planned, major operations. Common for all three - Hebron GBS, Njord A and the Johan Sverdrup riser platform jacket - was extremely high precision and safe execution. Delivery of such important parts of the complex projects predictably is the best possible marketing for new contracts," says Jan Arve Haugan.

Order intake in the fourth quarter was NOK 768 million. Per 31 December 2016, Kvaerner's order backlog, including Kvaerner's scope of work of jointly controlled entities, was NOK 6 459 million, down from NOK 8 397 million at the end of the third quarter.

"From 2014 to 2016, we improved our cost base for new projects with about 15 to 20 percent. From 2016 and into 2017, we continue the improvements. Our ambition is that we for new topside bids in 2017 have a cost base which is 20 to 25 percent lower than what we had three years ago. We see some important upcoming prospects in the market. The reduced cost base combined with a predictable delivery model will enhance our competitive position and should be seen as a strong enabler to increase our order book," says Jan Arve Haugan.

Subsequent to the quarter, Kvaerner has been awarded a NOK 450 million contract for offshore hook-up of the Johan Sverdrup riser platform, plus a NOK 200 million decommissioning contract.

Full year 2016 results
Total operating revenues, including jointly controlled entities, were NOK 10 364 for the full year 2016, compared with NOK 14 917 in 2015. EBITDA, including jointly controlled entities, ended at NOK 741 million for the full year 2016 (EBITDA margin 7.1 percent), up from NOK 613 million for the full year 2015 (EBITDA margin: 4.1 percent). At the end of the year, Kvaerner's credit facilities were undrawn and net cash was NOK 3 billion.

The Board of Directors has proposed no dividend distribution for second half of 2016. A robust balance sheet and cash position is important to maintain resilience through the challenging cycle and it should support the ambition to come out of the period with an even stronger business. The solid financial position is a competitive lever when positioning for new contracts. It also provides flexibility to pursue selected opportunities for strategic development.

Peterson obtains ISO 50001 Energy Management Standard - 15/02/2017

Peterson obtains ISO 50001 Energy Management Standard

International energy logistics provider Peterson is proud to have obtained the Energy Management Standard ISO 50001 for the Offshore Group entities in the United Kingdom, the Netherlands, Malta and Trinidad & Tobago.

ISO 50001:2011 provides a framework of requirements for organisations to develop a policy for more efficient use of energy, fix targets and objectives to meet the policy and values, use data to better understand and make decisions about energy use, measure the results, review how well the policy works, and continually improve energy performance.  

Erwin Kooij, CEO, Peterson Offshore Group, said: “We have achieved the ISO 50001 standard which is a great addition to our company besides ISO 9001, ISO 14001 and OHSAS 18001. However, even more important to our company is that we now have an even better tool to reduce our environmental impact and energy cost. Looking after this planet for ourselves and generations to come is vital to our company as we think in generations and not quarters.”