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Archive for the ‘accidents’ Category

From Bloomberg.com:

A force majeure notice was delivered to the government of Ghana and Ghana National Petroleum Corp. after an anchor- handling accident damaged the rig, Dallas-based Kosmos said today in a statement. The Marianas was scheduled to arrive July 10 for drilling, Kosmos said.

Kosmos said it anticipates that either the Marianas or a substitute rig will be “available soon” to drill the Cedrela-1 well in the West Cape Three Points Block. Transocean, based in Vernier, Switzerland, reported yesterday it evacuated 108 of 121 workers on the rig after it took on water while preparing to leave an Eni SpA drilling site off Ghana.

The market for deep-water rigs in that part of the world is so tight that Kosmos will likely have to wait at least a month for a comparable drilling vessel, said Brian Uhlmer, an analyst at Global Hunter Securities in Houston. Moving an unused rig from the Gulf of Mexico could take about 45 days.

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  1. Will Transocean be releasing any details on yesterday’s “water ingress?” Will the results of their internal investigation ever be made public? (We are still waiting for their report on the fatal crane incident last August offshore Nigeria.)
  2. Will an independent investigation be conducted? Will the authorities in Ghana participate?
  3. Did the damage that the Marianas incurred during Hurricane Ike (2008) or Tropical Storm Ida (2009) in any way contribute to yesterday’s apparent structural failure?
  4. When will we have an international system that ensures (a) prompt, independent, and complete investigations of all significant accidents, and (b) the timely release of findings?

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Per Platts:

Deepwater driller Transocean confirmed that its semisubmersible rig Transocean Marianas operating off the coast of West Africa had taken on water early Wednesday, forcing the evacuation of some crew members.  “A water ingress was noticed onboard the Transocean Marianas during operations offshore Ghana” for Italian major Eni, Transocean spokesman Guy Cantwell said. “The rig is stable at this time. There are no injuries, and all non-essential personnel are being evacuated.” 

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Per information provided by one of our readers (see comment on the original Marianas post), the rig was in transit offshore Ghana, west of Takoradi. This report indicates that “they have got control over the list at the moment.”

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I thought this Platts Oilgram News report was interesting given PTT’s objection to Indonesia’s claim for damages from PTT’s Montara blowout:

Thai energy authorities are pointing fingers at South Korea’s Hyundai Heavy Industries for causing damage to one of its offshore pipelines that slashed natural gas supplies to the kingdom by 14%. State-controlled oil and gas company PTT is also planning to seek hefty compensation claims from Hyundai Heavy as well as from Diphaya Insurance, the Thai state-owned insurance firm, which provides coverage for the company’s works, a senior PTT executive said June 30.

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I don’t buy the argument that industry and regulators have paid too much attention to personal safety at the expense of process safety. Casualties from falls, falling objects, helicopter crashes, and other workplace activities have been persistent, and safety management programs must emphasize practices and procedures that will reduce occurrence rates.

Also, process safety has hardly been ignored. API RP 14 C has proven to be an effective safety analysis procedure for addressing undesirable events associated with each process component of a production facility.  For more complex facilities, Deepwater Operating Plans and API RP 14J, “Recommended Practice for Design and Hazard Analysis for Offshore Production Facilities, ” are good risk management supplements to RP 14C.

That said, we need better programs for sustaining the focus needed to further reduce the probability of low frequency, high consequence events.  When memories about the most recent disaster start to fade, what do we do to keep workers on edge and prevent complacency? What more can be done to prevent events with enormous consequence potential?  Some thoughts:

  1. Establish programs to remind employees about past disasters – how they happened and how they could have been prevented. How many offshore workers know the chain of events that led to the Santa Barbara blowout, Ocean Ranger sinking, Alexander Kielland capsizing, Piper Alpha fire and explosion, Ixtoc blowout, and other historic incidents? When discussing international incidents, we need to explain how our facilities or region might have been vulnerable under similar circumstances.
  2. Present information on minor incidents that could have escalated into disasters, emphasizing what could have gone wrong and why.
  3. Don’t just focus on the last disaster.  While addressing the operational and organizational issues that surfaced at Montara and Macondo, we also must assess incident data and identify activities and practices that could lead to the next disaster.
  4. Operators should not rely on the regulator to manage their operations. Reading about Montara and Macondo, one senses that the regulators were called on to referee internal company disputes and protect the operators and contractors from themselves.
  5. Regulators should not be making day-to-day operating decisions. Regulators should make sure that the regulations are clear and that operators have effective management procedures for adjusting programs as new information is obtained. Regimes that provide for regulator approval of each activity or adjustment promote operator complacency and are not in the best interest of safety over the long term.
  6. Service companies and contractors must challenge operators and regulators.  Operators should expect contractors to think and question, not to simply execute orders. There are impressive examples of contractors insisting on safety improvements, and being willing to forego business rather than compromise on safety.
  7. All sectors of the offshore industry should participate in standards development. Effective standards are dependent on diverse input.
  8. Industry and government leaders should promote innovation. Obvious weaknesses should be identified and industry should be challenged to propose solutions. For example, why do concerns about “false alarms” preclude automatic alarm activation (see Transocean’s Macondo report)? Data from redundant sensors can be analyzed by predictive software that is capable of quickly identifying real events. Similarly, why have advances in BOPE, including monitoring systems, been so slow? Why are BOP capabilities still poorly understood? Why are well integrity and casing pressure issues (producing wells) so common?

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Links

Animation of Transocean’s BOP analysis

Transocean’s BOP Defense:

Forensic evidence from independent post-incident testing by Det Norske Veritas (DNV) and evaluation by the Transocean investigation team confirm that the Deepwater Horizon BOP was properly maintained and did operate as designed. However, it was overcome by conditions created by the extreme dynamic flow, the force of which pushed the drill pipe upward, washed or eroded the drill pipe and other rubber and metal elements, and forced the drill pipe to bow within the BOP. This prevented the BOP from completely shearing the drill pipe and sealing the well.

In other words, Transocean contends that properly maintained BOPE was not up to the task of shutting-in and securing a high-rate well. If true, this finding has significant implications for the offshore industry.  I’m looking forward to reading the government’s findings on the BOP failure when the Joint Investigation Team report is issued next month.

 

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BP settled Macondo litigation with Weatherford, manufacturer of the float equipment equipment used in the Macondo well. The failure of this equipment was a key contributing factor in the Macondo blowout. Under the agreement, Weatherford will pay BP $75 million.  This money will be applied to the $20 billion Macondo trust fund.

Weatherford is the first of BP’s contractors to formally agree with BP that the entire industry can and should learn from the Deepwater Horizon incident. Accordingly, Weatherford has committed to working with BP to take actions to improve processes and procedures, managerial systems, and safety and best practices in offshore drilling operations. BP and Weatherford will encourage other companies in the drilling industry to join them in this improvement and reform effort.

Comments:

  1. $75 million seems like a rather modest payment by Weatherford given the magnitude of Macondo damage costs. BP will “indemnify Weatherford for compensatory claims resulting from the accident.”  Presumably, Weatherford’s sales agreements provide good legal protection.
  2. One of the root causes of the Montara blowout was also a float collar failure. That float collar was also supplied by Weatherford.  I’m surprised that this common cause and supplier have received almost no attention. Of course, no one has paid much attention to Montara, either before or after Macondo. Had more attention been paid to the Montara inquiry, Macondo might have been avoided.  (Note that most of the post-Macondo commentary still implies that deep water is the threat even though Montara was in 80 m of water and the root causes of Macondo were not water depth related).
  3. When do we learn more about the “improvement and reform effort” described in the quote above?

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Resources Minister Martin Ferguson is determined to establish a single national regulator after the Montara oil spill in the Timor Sea leaked oil and gas condensate for more than two months in 2009.

The WA government is at odds with Mr Ferguson over plans for a national regulator and wants to maintain responsibility for oversight of the industry in the state.

Senator Eggleston and Senator David Bushby said the federal government had introduced the legislation to parliament before concluding ongoing negotiations with the WA government. Herald Sun

Meanwhile, still no news regarding any penalties for Montara operator PTTEP.  Will there be none?

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High-ranking congressmen made a concerted effort to financially distance themselves from BP in the aftermath of the Deepwater Horizon oil spill, either by reducing or altogether dumping their stock holdings, according to a Center for Responsive Politics analysis of lawmakers’personal financial disclosure documents released Tuesday. 

House Speaker John Boehner (R-Ohio) and Sen. John Kerry (D-Mass.) gave up all or a significant amount of their holdings in BP after the 2010 spill, which leaked an estimated 205 million gallons of oil in the Gulf of Mexico and killed 11 oil platform crew members in the initial explosion. Open Secrets Blog

Financial decision? Moral leadership? Fear of guilt by association? Washington front-running? Political weakness? I wonder where they reinvested their money.

More on lawmakers’ finances.

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