Contractor Management and Bridging Arrangements Sean Brett

Contractor Management and Bridging Arrangements Sean Brett Sr. Director, Offshore Division

What is a Bridging Document? “Document that aligns and co-ordinates the requirements and responses of various parties in relation to a specific aspect of a project. NOTE Commonly used to align and co-ordinate the emergency response procedures for owner and contractors.” Source: API RP 2MOP, Marine Operations, Upstream Segment, First Edition, July 2010 2

The Importance of Bridging Arrangements The joint management of site-specific hazards is critical to the safety of an operation. A Bridging Arrangement facilitates alignment and communication between the lease operator and contractor. The failure to adequately manage operator – contractor interaction may have severe consequences. 3

API Bulletin 97 Well Construction Interface Guidelines WCID – SEMS is a bridging document between the lease operator’s safety and environmental management system (SEMS) and the drilling contractor’s safe work practices. WCID – Well Plan is intended to facilitate communication between the lease operator and the drilling contractor regarding well construction work. 4

API Bulletin 97 WCID - SEMS The elements of a WCID-SEMS document in Section 4 of API Bulletin 97 correspond with the elements of BSEE regulation 33 CFR 250, Subpart S pertaining to Safety and Environmental Management Systems (SEMS). 5

API Bulletin 97 WCID – SEMS cont’d WCID – SEMS elements are: Management Principles and Organizational Structures Safety and Environmental Information Hazards Analysis Management of Change (MOC) 6

API Bulletin 97 WCID – SEMS cont’d Safe Work Practices Training Assurance of Quality and Integrity of Critical Equipment Pre-startup Review Emergency Response 7

API Bulletin 97 WCID – SEMS cont’d Investigation of Incidents Audit of the Safety and Environmental Program Records and Documentation Stop Work Authority (SWA) 8

API Bulletin 97 WCID – Well Plan The WCID – Well Plan document described in Section 5 of API Bulletin 97 addresses technical well planning and construction information to be exchanged between the drilling contractor and an operator for the specific well or project under consideration. 9

API Bulletin 97 WCID – Well Plan cont’d WCID – Well Plan elements are: Location and Operating Environment Geological and Geophysical Well Design 10

API Bulletin 97 WCID – Well Plan cont’d Well Barriers Well Plan Well Activity Risk Management 11

IADC HSE Case Guidelines for MODUs Issue 3.6 Bridging arrangements should address site-specific and project specific requirements, such as: Potential environmental effects resulting from loss of containment. Clients oil spill response planning and assessments of effectiveness. 12

IADC HSE Case Guidelines for MODUs Cont’d Well intervention and response planning – capping stacks, relief wells, etc. Allowable persons-on-board (POB) Combined Operations 13

IADC HSE Case Guidelines for MODUs Cont’d A bridging document describing individual and collective stakeholder responsibilities during the various operational phases may ensure that there is an organizational structure with the appropriate core business functions to comply with HSE policies and management objectives, including how individual and collective responsibilities between all stakeholders are defined. The IADC HSE Case Guidelines are available at: http://www.iadc.org/iadc-hse-case-guidelines/ 14

IADC HSE Case Bridging Document Guidelines In Development The final draft of the IADC HSE Case Bridging Document Guidelines is currently under review. The Guidelines are intended to be added to the IADC HSE Case Guidelines as an Appendix. 15

IADC HSE Case Bridging Document Guidelines In Development The Guidelines are intended to facilitate alignment of the drilling contractor’s HSE Case and the Operator’s Operational Management System. While API Bulletin 97 is a good resource for companies working in the United States, the IADC HSE Case Bridging Document Guidelines are intended to cover the broader scope of topics included in a typical HSE Case developed using the IADC HSE Case Guidelines. 16

IADC HSE Case Bridging Document Guidelines An HSE Case Bridging Document should: Align safety critical well construction components and processes in the operator’s Operational Management System (OMS) with the drilling contractor’s HSE Case; Provide a mechanism to collaboratively identify risks associated with the proposed scope of work; 17

IADC HSE Case Bridging Document Guidelines Cont’d Expedite agreement on roles / responsibilities and communication protocols between operator and drilling contractor to facilitate the safe execution of proposed well work; Address areas of the safety management process that may include management of change, well control, lifting equipment, dropped objects, permitto-work, helicopter operations, and incident database guidelines, etc. 18

Questions?

International Regulatory Activities

IMO Review of the MODU Code, LSA Code and MSC.1/1206/Rev.1 Status: In progress Target Completion: 2016-2017 Added as a new unplanned output at MSC 93 (May 2014), with target completion in 2016; Proposed Amendments submitted to SSE 2 (March 2015); Correspondence group formed to prepare draft amendments based on submitted proposals, to report to SSE 3 (March 2016); 21

IMO Amendments to the Guidelines for Vessels with Dynamic Positioning (DP) Systems (MSC/Circ.645) Status: In progress Target Completion: 2016 Proposed amendments submitted to SSE 2 (March 2015); Correspondence group formed to prepare draft amendments, to report to SSE 3 (March 2016); 22

IMO Amendments to the MODU Code for Alternatives to Launching Requirements on MODUs Status: Completed Amendments were adopted at MSC 94 (November 2014); Along with MSC.1/Circ.1486 Guidelines on Alternative Methods for Lifeboat drills on MODUs. 23

IMO Amendments to the MODU Code for Atmosphere Testing Instruments in Enclosed Spaces (SOLAS XI-1/7) Status: Completed MSC 94 adopted amendments to the 1979, 1989, and 2009 MODU Codes for the carriage of atmosphere testing instruments in enclosed spaces, consistent with SOLAS regulation XI-1/7 “Atmosphere testing instrument for enclosed spaces” coming into force 1 July 2016. 24

IMO Offshore Vessels Status: In progress Target Completion: 2016-2017 Guidelines Addressing the Carriage of More than 12 Industrial Personnel on Board Vessels Engaged in International Voyages Classification of Offshore Industry Vessels and a Review of the Need for a Non-Mandatory Code for Offshore Construction Support Vessels Guidelines for Offshore Service Craft Used in 25 Windfarm Service

IMO Offshore Vessels Cont’d SDC 2 (February 2015) considered correspondence group report and formed drafting group to develop a draft definition of “industrial personnel” for use in the ongoing work on these agenda items; Correspondence group was formed to finalize Guidelines for Offshore Service Craft (OSC) Used in Windfarm Service to report to SDC 3 (January 2016). 26

IMO Measures for Lifting Appliances and Winches Status: In progress Target completion: 2015 (to be extended) MSC 95 (June 2015) will consider whether these measures will be guidance or a mandatory amendment to SOLAS; Based on the decision made at MSC 95, a correspondence group may continue to develop the measures, reporting to SSE 3 (March 2016) No consensus on scope and solution causing delay 27

IMO International Code for Ships Operating in Polar Waters Safety portion adopted by MSC 94 (November 2014) Pollution text to be Adopted at MEPC 68 (May 2015) Code expected to enter into force on 1 January 2017 Crew training STCW requirements expected to enter into force on 1 January 2018 28

IMO Revisions to the LHNS Code (IMO Res A.673) Status: In progress Target Completion: 2015 (to be extended) 2010 BLG15 initiated review of A.673 Goals widen cargo authority (to all IBC Code Cargos), more like IBC Code requirements, backhaul of spent products, ease process of reflagging, reduce waivers, increase quantity of product carried (from 800 m3) BLG is now PPR, PPR1 passed portions to other subcommittees for review/input on stability and fire 29 fighting.

IMO Revisions to the LHNS Code (IMO Res A.673) Cont’d SSE2 just reviewed and returned firefighting portion May need to send draft portions to SDC for construction items once PPR work is complete in 2016 30