Cost effective risk management on aging offshore installations
In 1992 all operators on the Norwegian continental shelf were ordered by the Norwegian Petroleum Directorate (NPD) to document all non-conformances to the regulations for their platforms, evaluate the safety impact of the non-conformances and commit to corrective actions. None of Phillips Petroleum Company Norway`s (PPCoN) 26 platforms of varying ages were designed to the 1992 NPD Regulations and the cost of simply correcting all the non-conformances was deemed prohibitive. PPCoN used an innovative approach to comply with the order at an acceptable cost while significantly reducing offshore risk levels. The methodology used combines the merits of qualitative and quantitative risk analysis to identify significant risk contributors and associated non-conformances. Risk analysis results were then used with safety acceptance criteria and cost-benefit analysis to identify risk reducing measures for implementation. In many cases it was found that regulatory non-conformances were not the major risk contributors and it was seen that the risk analysis approach including cost benefit analysis resulted in a focus on true risk contributors that facilitated significant safety improvement in a cost effective manner.
- OSTI ID:
- 414764
- Report Number(s):
- CONF-960623--
- Country of Publication:
- United States
- Language:
- English
Similar Records
Norway threatens shutdown of giant Ekofisk field
Acceptance criteria for risk in offshore construction projects