Conoco has topped the American Petroleum Institute (API) annual safety survey for the fifth year in a row. The company’s plant and personnel safety record comes from high leadership expectations, clear responsibilities and good tools. Conoco management recognise that being world-class in process safety is also essential for successful business.
Says Mark T. Korsmo, Manager Mechanical Integrity, Downstream Technology at Conoco Inc., It is possible to become over-confident in our work processes, after having earned the APIs top safety distinction for 17 of the past 23 years.
Being the best can be a real barrier to change. In our industry continuous improvements are a matter of business survival. Despite our good safety record, opportunities for improvement were discovered in the safety management system, which prompted us to demand even greater attention to process safety performance. This has resulted in a comprehensive assessment of mechanical integrity for all operating facilities worldwide.
The improvement process started with an assessment of the mechanical integrity programme at 60 Conoco facilities, covering upstream and downstream activities during the past year. In this context, the main objective of mechanical integrity is to ensure that facilities, equipment and pipelines are designed, constructed and operated throughout their life according to the original intent, with maintenance and inspection programmes matching both the risk and equipment criticality.
Understanding the totality
Our attention to mechanical integrity is directed towards preventing serious process-related incidents that might injure people or the environment, or damage property, says Korsmo. Previously, Conoco has focused very much on personal injury prevention. Now we are raising our focus on process safety to the same level we have on personal safety.
To address these gaps after a thorough review, we employed DNV to assess our mechanical integrity systems and processes. The scope of work was deliberately broad to include the assessment of a number of key elements, including leadership and management commitment, culture, management of change and risk assessment as well as more conventional asset management, maintenance, and inspection programmes. Our approach is not something new and different, but we are taking advantage of new and more unified ways of using better tools and expanding our risk-based approach. To be able to make the best decisions we must understand the total risk picture of our operations not only financial and personal safety matters, but also mechanical, operational and management issues.
Ian McCulloch, the Conoco Upstream Lead, also clearly recognised the advantages of a risk profiling approach to plan the most effective and efficient Mechanical Integrity programme. This was a major finding of the DNV assessment.
Learning from missed opportunities
The same concept has been used on all 60 sites assessed worldwide. According to Korsmo this has been a good opportunity to create improvements across the upstream and downstream business units. The process has proved that, although the business units have perceived themselves as being different, in reality their strengths and weaknesses are similar. The risk-profiling approach recommended by DNV has provided a single way forward that covers both our upstream and downstream business. The new drive has reinforced the synergy between our two major activities and has provided valuable learning for all involved. We have not fully capitalised on opportunities in the past by doing things separately. In this assessment process, we have tried to collaborate more effectively between upstream and downstream, which we believe will make a better working process and a better total product.
Led from the top, Conoco is now beginning to implement changes to deliver world-class mechanical integrity performance. In the downstream business, for example, this has involved working with each site to translate all findings from DNV into meaningful action plans. Regarding the assessment effort, it is now that the important work for Conoco starts, says Korsmo. Each site has established its local implementation team. The implementation plans are being developed and will be in place by the end of 2002. The whole process is expected to take 23 years to complete. These improvements will also be consistent with, and advance Conocos policy of, sustainable development by which the company conducts business to meet the needs of the present, without compromising the ability of future generations to meet their own needs.
According to DNVs upstream and downstream project managers involved, this is one of the most rewarding consultancy projects DNV has been involved with. The success of this customised process has built upon Conocos existing exceptional safety culture, says downstream project manager Robin Pitblado. By extending this culture instead of trying to change it, Conoco knows it is deploying a proven strategy and one most likely to maximise success and speed of achievement. The potential prize is enormous, both in terms of future losses avoided and in enhanced production. It will be an important competitive advantage in the future, as well as reinforcing Conocos core safety and environmental values.
30 DNV employees have been involved in the project, with staff from the U.S., the U.K., Singapore, Indonesia and Finland. It has been a cross-business operation between DNVs Consultancy, Technology, Certification and Classification Units.