Process Safety Management in Nexen’s Safety Approach
Traditional safety programs focus on the prevention of personal injuries, typically caused by slips, trips and falls. In light of the March 2005 explosion and fire at a refinery in Texas City, Texas, the oil and gas industry has increasingly focused on preventing incidents caused by the failure of process systems. This has led to an increased focus on an approach to safety called Process Safety Management (PSM).
PSM is a disciplined framework for managing the integrity of hazardous operating systems. Industry statistics show the majority of large-scale losses are due to process accidents. We have new challenges to deal with in today’s operating environment, including complex systems, new regulations, public acceptance of risk, reduced worker tenure and experience, and pressures from stakeholders to perform.
Nexen views PSM as a high priority and is developing relevant corporate standards. The development process involves: conducting a gap analysis against PSM requirements; creating program standards to address gaps; and developing an implementation and rollout strategy that includes training.
In the first quarter of 2007, we conducted a PSM gap analysis at all our locations, with presentation of findings to senior management and the Board of Directors in mid-year, followed by development of a project plan to address the gaps identified.
- Safety Culture Turnaround at Scott Platform
The employees and contractors at our Scott Platform (offshore UK) achieved a tremendous improvement in safety performance in 2006. The Scott Platform finished the year with zero lost-time injuries (LTIs), only two medical treatments, and one reportable environmental incident. The Scott Platform team finished the year with more than 500 consecutive LTI-free days. This is particularly significant given this was accomplished in a year of high activity and an average of 165 workers on board.
Since the platform began production in 1993, it had never completed a year without an LTI. For example, in 2005, Nexen’s first full year as operator, the platform recorded four LTIs and seven medical treatment cases. This level of safety performance did not meet our expectations. In addition, a release of natural gas occurred on the Scott offshore facilities in September 2005 while preventative maintenance work was being carried out. As part of the management of the incident, non-essential personnel were taken off the facilities. Proceedings were later taken under the UK Health and Safety at Work Act and Nexen was fined £400,000 (Cdn $937,000).
The Scott team worked hard in 2005 and 2006 to change the safety culture on the platform. This was accomplished through continuous hazard awareness and safety education, senior management visibility on the platform, performance status updates, risk assessments for every activity, the use of behavioural safety tools and risk control systems, on-site evaluations and time-outs for safety (TOFS) to discuss good safety behaviour.
- Long Lake Earns President’s HSE&SR Award
The Long Lake project (a 50/50 joint venture with OPTI Canada Inc.) is Nexen’s largest project ever, with 15.2 million construction hours worked as of year-end 2006. Long Lake’s many achievements in health, safety, environment and social responsibility earned the team the President’s Health, Safety, Environment & Social Responsibility (HSE&SR) award for 2006. In particular, Long Lake’s safety performance was exemplary.
The Long Lake on-site emergency response team participates in simulations to respond to a fire in the camp. The team also runs simulated rescues from the top of vessels and other high-angle structures on site. Long Lake’s HSE&SR Management System requires contractors and construction management team staff to complete inspections of their work areas once per shift. As well, the Safety Group prepares focus audits every second or third shift.
In April 2006, the site underwent a third-party audit performed by ModuSpec, which reviewed the site’s performance against the Long Lake HSE&SR Management System, Alberta Occupational Health & Safety regulations and industry best practices. The results of the audits were positive, requiring only minor improvements to be implemented.
To gauge workers’ attitudes toward project safety, Long Lake developed and distributed a Safety Perception Survey three times between 2005 and 2006. The survey consisted of 21 questions in four categories – Training, Communication, Supervision and Worker Safety Knowledge. Results of the survey showed a strong safety culture. For example, in response to the question, ‘Do you feel safe working here?’, respondents rated the Long Lake site as 8.7 out of a possible 10.
- Buzzard and US Operations Recognized
In June 2006, Nexen’s Buzzard project was honoured with the BG Chairman’s Contract Partner Performance Award for safety.
The US Minerals Management Service recognized Nexen’s leadership with a 2005 National Safety Award for Excellence (SAFE). The awards honour outstanding performance in safety and stewardship in offshore oil and gas operations. Nexen’s operations claimed the Lake Charles District SAFE award for 2006. The fields in the Lake Charles District include West Cameron 170, Vermilion 67, Vermilion 321 and Vermilion 340. This is the first time that Nexen USA has won the Lake Charles District Award, and is the fifth District Award that Nexen has won overall. >
- Planning for a Global Influenza Pandemic
In 2005, when health authorities officially began warning of the strong possibility of a global influenza pandemic, Nexen established a committee to develop a global preparedness plan that would enable us to minimize the impact and sustain our operations during a pandemic. The overall plan addresses four key areas – health, communications, risk reduction and business continuity. In 2006, we started to deliver workshops to each of the operating locations and provided a template to help them develop a regional preparedness plan that aligns with our overall corporate plan and guidelines of the World Health Organization. We expect all regional plans to be in place by mid-year 2007, after which we will conduct global table-top exercises to identify areas that need improvement.
- Yemen Facility Attack
Nexen operates in numerous countries, some of which present special security challenges. Nexen takes great care and precautions in protecting its employees, contractors and assets in such jurisdictions. We also believe that positive stakeholder relations and good corporate citizenship provide a measure of protection. Nevertheless, on September 15, 2006, our oil export terminal in Yemen was attacked by two individuals in two explosive-laden vehicles. Sadly, one contract security guard was killed and two others received minor injuries. Subsequent investigation of the incident demonstrated that our emergency response team responded quickly and efficiently, which minimized the physical damage. A 24-point action plan has enhanced our physical security, emergency preparedness and incident recovery procedures.
- Occupational/Industrial Health Management
Nexen has implemented a strategic health management program over the past two years to support occupational health and industrial hygiene. This involved a wide range of occupational health areas to align with Nexen’s global business operations, such as workplace health hazard assessments, worker exposure assessments, ergonomics, return to work processes, international travel health, and health promotion strategies. We take a proactive approach, with an emphasis on promoting healthy work environments to prevent occupational injuries and illnesses, and to comply with regulations.
- Alberta Certificate of Recognition
Following a third-party audit in November 2006, the Canadian Oil and Gas business earned the Alberta Certificate of Recognition (COR) from Alberta Employment, Immigration and Industry. This signifies that we observe the petroleum industry’s best practices in health and safety management systems. Nexen expects its vendors and service providers to also achieve their certificates. In addition to the formal recognition, a COR also makes us eligible for injury reduction rebates through the Alberta Workers’ Compensation Board – a benefit of more than $114,000 in 2006.
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