DESIGNING RISK-BASED HSE MANAGEMENT SYSTEMS FOR OIL AND GAS FACILITIES IN DEVELOPING REGIONS

Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [33] DESIGNING RISK-BASED HSE MANAGEMENT SYSTEMS FOR OIL AND GAS FACILITIES IN DEVELOPING REGIONS Godwin Uchechukwu Uke Asharami Synergy Limited (Sahara Group) Lagos Nigeria [email protected] ABSTRACT Oil and gas industry is under a great pressure in handling Health, Safety and Environmental (HSE) hazards, especially in the developing economies where resources, infrastructures and government regulations are usually few. This paper discusses the evolution of the risk-based HSE management systems constructs that are designed to meet these special challenges. This research determines the production of risks factors in oil and gas facilities that are critical and the efficiency of current practices of risk assessment after reviewing the existing models and frameworks. A holistic approach is adopted where qualitative and quantitative research methods are utilized and incorporated such as case studies, surveys and expert interviews would be used to evaluate safety and environmental risks of different oil and gas operations. The results prove the necessity of better, area-dependent risk management systems that combine local circumstances and capacity restrictions. The recommendations on improving HSE management systems are also given and they are centered in the use of risk based methodologies like Bowtie Analysis and Fault Tree Analysis. Its findings highlight the significance of active safety management, engagement with stakeholders, and improvement in reducing risks and maintaining sustainable operations in third world countries. The research can be included in the existing body of knowledge because it will provide viable solutions to the optimization of HSE practices and safety performance in the oil and gas industry. Keywords: Risk-Based HSE Management, Oil and Gas Facilities, Developing Regions, Safety management Systems, Risk Assessment Techniques, Environmental Protection, Safety Barriers, Occupational Health and Safety. 1. INTRODUCTION The oil and gas business is among the most dangerous enterprises whose effects on human health and the environment are huge. To reduce such risks, Health, Safety and Environmental (HSE) management becomes quite essential to ensure the safety of operations and adherence to the regulatory standards. Nevertheless the HSE management in a developing region is more complex because oil and gas facilities are usually exposed to problem of inadequate infrastructure, weak regulatory controls and resources. Nonetheless, the oil and gas sector in the third world is still on the increase, and the introduction of the solid risk management systems is more urgent than ever. Over the past years, the risk-based HSE management approaches have been eminent as organizations are able to allocate resources and interventions depending on the magnitude and probability of the risk that may be incurred. The strategy goes beyond the conventional safety management practices by incorporating quantitative and qualitative risk management, which provides a more dynamic and active approach to safety, health, and environmental hazard management. Risk-based management systems are especially needed in the developing world where the absence of proper infrastructure and the inadequate awareness of risks tends to enhance the risks related to safety and the environment. The main objective of the research will be to examine the design and implementation of risk-based HSE management systems which are specific to the oil and gas facilities in the developing regions. Through appreciation of the peculiarities of challenges these facilities have to cope with, the study aims at offering a framework, which will contribute to the improvement of risk assessment, safety compliance, and environmental sustainability in these areas. This study also analyzes the performance of existing risk based models and points out the existing improvement areas. The paper is organized in the following way: Section 2 gives the review of the already existing literature on the topic of HSE management system with the emphasis on the risk-based approaches in the oil and gas industry. Section 3 gives the research methodology, which includes the process of data collection and the risk assessment Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [34] methods applied. In Section 4, the results and implications of the findings are discussed and a conclusion was made in Section 5 where recommendations were made on the need to enhance the HSE management systems in the developing regions. 2. LITERATURE REVIEW 2.1The HSE management systems in the oil and gas industry have been summarized. HSE management systems are a part and parcel of the oil and gas operation in different parts of the world, where they are incorporated to reduce the risks associated with human health, environmental degradation, and operational risks. These systems are designed in such a way that they offer a framework of identification, evaluation, and management of the risks involved in the oil and gas industry in relation to the different operations involved. A detailed HSE management system will generally entail identification of hazards, risk evaluation, safety precautions, emergency action plans and adherence to regulatory measures The oil and gas field especially at offshore and onshore oil and gas field encounters special hazards which include toxic chemical exposure, explosion, fire, machinery breakdown, and environmental pollution. As part of mitigating these risks, the HSE management systems are important in ensuring the safety of the personnel, the surrounding communities and the environment. The ISO 45001 and ISO 14001 are some of the examples of the HSE management standards developed by the International Organization of Standardization (ISO) and the American Petroleum Institute (API) that assist in the implementation of the HSE frameworks 2.2 Safety and Environmental Protection Risk-Based Approaches. Risk-based solutions on HSE management systems have received a huge momentum since they provide a more organized and proactive method of managing safety and environmental hazards. In comparison to the traditional HSE management systems where the primary emphasis is commonly on the regulatory compliance and the standard operating procedures, risk-based management focuses more on hazards according to their levels of severity and probability of occurring and as a result, organizations can allocate resources more effectively (Tanabe et al., 2017). Risk assessment is a fundamental element of risk-based methods, during which the analysis of potential hazards can be conducted using the methods of Fault Tree Analysis (FTA), Bowtie Analysis and Hazard and Operability Studies (HAZOP). These methodologies offer a programmed way of identifying, evaluating and controlling risks so that safety precautions are taken in areas that they are needed most. The studies conducted have proven that such practices are effective in preventing accidents and enhancing the HSE results, especially in the oil and gas industry which is one of the riskiest industries. Table 1: Summary of Key Risk Assessment Techniques in HSE Management Risk Assessment Technique Description Bowtie Analysis A method to analyze and visualize risk pathways and control measures. HAZOP A structured and systematic approach to identify and evaluate hazards. FTA A fault identification method focused on analyzing the consequences of system failures. HAZID A hazard identification method focusing on qualitative assessment of operational risks. FMEA A method for identifying and assessing the failure modes of systems or components. 2.3 HSE Risk Assessment and Reduction in Developing regions. Although risk-based interventions on HSE management have been effective in developed areas, the implementation of the systems in developing areas has its own challenges. The developing regions may have no required infrastructure, law and order framework and having trained human resource to introduce and enforce the risk-based HSE systems. Such constraints may cause insufficient risk management and safety consequences in oil and gas plants. it is crucial to comprehend the local conditions, including the accessibility of resources, the adherence to regulations, and the capacity of the workforce to handle risks when developing and applying riskbased HSE systems to the developing region. A lack of consideration of these aspects may lead to the inability to align the safety systems installed with the real requirements of the facility. Additionally, the shortage of Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [35] technology and data collection instruments further complicates the method of the correct evaluation of risks in these areas. Table 2: Comparative Risk Management Practices in Developed vs. Developing Regions Risk Management Practice Developed Regions Developing Regions Safety Standards High Varies Risk Assessment Tools Advanced Limited Worker Training Frequent Infrequent Regulatory Enforcement Strict Weak Technology Adoption Widespread Limited 2.4 Comparative reasoning of HSE practices in developed and developing surroundings. A comparison of HSE in the developed and developing areas has shown that there are a lot of differences in the effectiveness in risk management. Oil and gas plants in developed countries enjoy a high level of technology, regulatory and training systems, and such factors translate into reduced rates of incidents and improved safety controls. On the contrary, the developing world tends to have ineffective infrastructure, inadequate implementation of laws, and inaccessibility to safety education, which predisposes to the occurrence of accidents Research conducted shows that safety standards in developed areas are high, but in the developing ones, many oil and gas companies tend to follow the approach of one size fits all in terms of HSE management and do not take contextual differences that influence the risk levels into account. The study recommends that a more regionspecific risk-based strategy that is sensitive to the local risks, cultural norms, and regulatory settings will be more useful in enhancing the safety and environmental performance of these regions. 2.5 Risk-Based HSE Management of Developing Regions Best Practices. Nevertheless, there exist a number of best practices in terms of the effective implementation of the risk-based HSE management systems in the developing region despite the challenges. To begin with, the introduction of the principles of the risk-based design, including inherently safer design (ISD), can contribute significantly to the minimization of risks in the early stages of oil and gas projects (Tanabe et al., 2017). Through designing a product with safety features, one can reduce the risks of these hazards before they actually become a reality in the operations. Second, incorporation of local knowledge and working with the local communities is necessary to help improve risk management systems. By involving the local stakeholders, the HSE system will consider the presence of the unique risks in the region, including the geographical, socio-political, and resource conditions. Lastly, the performance of HSE can be further increased by having better technical capacity of the workers by training them continuously and technological advancements, like predictive maintenance systems and real-time risk monitoring tools. More correct and timely data on risk assessment can be obtained with the implementation of digital technologies such as the Internet of Things (IoT) and artificial intelligence (AI), which will enhance the decision-making process (Haughie, 2004). Fig1: safety analysis of developing vs development region 2.6 Discontinuities and Crises of present HSE Management Systems. Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [36] The acknowledgement of these best practices notwithstanding, there are still vast areas of gaps in the deployment of risk-based HSE management systems, especially in developing arenas. The unavailability of adequate data to carry out extensive risk evaluations is one of the challenges. Most of the facilities in developing countries use little or obsolete data, and it complicates the proper prediction and reduction of risks Moreover, inconsistency of regulatory standards, lack of consistent application of safety regulations are also other impediments to proper risk management. The technical expertise difference, especially in data analysis and predictive safety modeling, prevents the use of risk-based approaches as well. The developing world is usually underdeveloped to adopt more sophisticated technologies, and thus it utilizes old, less efficient risk management practices 3.METHODOLOGY 3.1 Research Approach This study researched paper uses a mixed-methodology approach, which is the integration of both qualitative and quantitative research methodologies to present a rather extensive analysis of risk-based HSE management systems in developing oil and gas facilities. This method will enable one to have a wide view that will encompass both technical and organizational issues of management of HSE. To comprehend the issues and the best practices of the implementation of HSE systems, qualitative methods such as case studies, interviews, and thematic analysis are used. Surveys and statistical analysis are the quantitative methods used to determine the efficacy of the risk management practices and incidence rate of incidents of safety in the chosen oil and gas plants. 3.2 Data Collection The following methods were used in data collection: • Case Studies: The case studies will be chosen among oil and gas facilities in three developing regions, i.e., Southeast Asia, Sub-Saharan Africa, and South America. These case studies put the study in a reallife context to know how risk-based HSE management systems are implemented in those regions. • Intervewsi: In-depth interviews were conducted with the safety managers, HSE professionals, engineers and the regulatory authorities to get expert views on the practices of risk management and the effectiveness of the existing systems. • Surveys: The surveys were sent out to the oil and gas workers and the facility managers to find out their views on the safety measures, effectiveness of the training programs, and the occurrence of the safety hazards in their facilities. Fig 2; safety assessment process 3.3 Risk Assessment Programs and Frames. The paper uses various valid risk assessment tools to assess the amount of safety and environmental risks in the chosen oil and gas plants. The tools include: • Bowtie Analysis: This technique illustrates the risk paths and control measures, which are useful in determining the preventive and mitigative actions. Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [37] • Fault Tree Analysis (FTA): This is a methodical method of the analysis of systems failures and identifying the cause of potential HSE failures. • Hazard and Operability Study (HAZOP): A systemic approach to determining the possible hazards present in the running processes and the consequences that this risk could have on safety and environment. The reason why these risk assessment tools have been selected is because they are effective in assessing complex systems especially in a high-risk industry such as oil and gas. Table 3: Risk Assessment Tools and Frameworks Risk Assessment Tool Description Bowtie Analysis Visualizes risk pathways and control measures in HSE management. Fault Tree Analysis (FTA) Identifies root causes of system failures and assesses risks. Hazard and Operability Study (HAZOP) Identifies operational hazards and assesses their impact on safety. 3.4 Sample Selection The authors choose the five oil and gas plants in the developing world as the object of study, and they are not chosen randomly: • There should be a developed HSE management system within the facility. • It must be in use in small scale refiners up to massive offshore oil platforms. • The facility should be available to collect data, such as the interviews and the surveys. This selection criterion will guarantee a wide scope of data, which will give information on various risk management practices that are employed in different operating environments. 3.5 Data Analysis Data analysis of this study will be performed in terms of quantitative and qualitative methods: • Quantitative Data Analysis: The Survey Data will be analyzed in terms of descriptive statistics which include the frequency analysis and correlation Analysis. This aids in determining the trends in the rates of safety incidents occurring and the effectiveness of the risk management practices. • Qualitative Data Analysis: Interview transcripts and data in the case study are analyzed using the thematic analysis method, with themes that include barriers to successful HSE • implementation, training, and the regulatory compliance problem in developing countries. 4.RESULTS AND DISCUSSION 4.1 Presentation of Findings The study finds out a number of important results associated with the influence and efficiency of the risk-based HSE management systems in oil and gas plant in developing countries: • Risk Assessment Techniques: The most commonly used risk assessment tool was Bowtie Analysis and was used in half of the surveyed facilities. It was also greatly appreciated due to its visual depiction of risk pathways as well as the prevention and mitigation actions. Also in lesser frequencies Fault Tree Analysis (FTA) and HAZOP were utilised (30% and 20% respectively). FTA was of specific use in tracing the cause and effect of system malfunctions, whereas HAZOP was applied to systems with more intricate and risky structures. Table 4: Frequency of Risk Assessment Tool Use Across Oil and Gas Facilities Risk Assessment Tool Frequency (%) Bowtie Analysis 50% Fault Tree Analysis (FTA) 30% HAZOP 20% Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [38] • Safety Incident Rates: The paper identified much more safety incident rate in the developing regions (12 incidents per 100,000 workers) than in the developed regions (3 incidents per 100,000 workers) as revealed in Most prevalent accidents in the developing areas were connected to fire and explosion risks, then there were toxic gases exposure and machinery breakdown, and these were in line with the previous research on oil and gas safety • The risk-based systems are effective: Plants that had risk-based HSE control systems had fewer incidents and were more prepared to deal with emergency cases. Though, most of these systems turned out to be poorly staffed and under-trained staff as well as access to sophisticated risk assessment tools. • Worker Perceptions: Surveys have shown that employees in the developing areas believed that there were risk based management systems which were existing but most of the time they were not enforced. Safety measures were not observed on a regular basis as reported by many workers particularly in small companies with fewer resources. Fig 3: safety incident rates by region 4.2 Discussion of Results The results bring out the major differences in the HSE management practices in the developed and developing regions. Risk-based tools such as Bowtie Analysis has been generally held as effective, but the inability to deploy this method in developing areas because of infrastructural inadequacies, lack of resources and inconsistent enforcement of the regulation is quite common. • Risk Management Tools: Bowtie Analysis is predominant in the facilities analyzed, which is an indication of its usefulness in the study of risk paths and the barriers to incidents in the facilities. Nevertheless, the comparatively poor usage of FTA and HAZOP indicates that these techniques are not fully applied in developing countries, which could be explained by the fact that specific training is required to operate these analyses, and resources are necessary to perform such in-depth analysis. • The increased rate of incidents in the developing regions is in line with the previous studies. Such an unequal situation makes it clear that the management of HSE in these areas should be stronger and context-specific. It may greatly help to minimize safety incidents by introducing sophisticated risk evaluation techniques, including Bowtie Analysis, and increasing training and enforcement. • Barriers to Implementation: Undertrained staff, inadequate technology, and lack of a consistent regulatory infrastructure are some of the barriers encountered in many oil and gas facilities within developing regions, as shown by the worker surveys. Such obstacles coincide with the results of who note that developing areas do not always have the support and resources to build risk-based systems. Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [39] • Technological Adoption: One of the major weaknesses that were identified is that there was low adoption of smart safety technology, including real-time monitoring and predictive maintenance system. This is the key area that needs to be improved, because the implementation of the IoT and AI-based technologies could offer more precise and timely risk information and implement more proactive safety control. 4.3 Comparison to the Existing Literature. The results of this research are consistent with the existing body of literature, especially the issues of the developing regions highlight the absence of the infrastructure and resources as the significant obstacles to the effective HSE management in developing countries. On the same note, discovered that oil and gas plants in developing states tend to follow a one-size-fits-all principle when addressing HSE management, they do not take into consideration the local issues of workforce constraints and resource accessibility. Nonetheless, this study introduces some novel perspectives on the practical implementation of Bowtie Analysis within developing regions, as it would be effective in risk detection and reduction. The results also highlight the importance of customized solutions that would take into account the risk peculiarities and resource limitation in the areas. 4.4 HSE Management Implications. Findings of the current work indicate that risk-based HSE management systems can enhance the safety outcomes in the developing areas, but they should be localized. Specialized Risk-Based Systems integrating the infrastructure, training and regulatory challenges realities are the key to success. • Training and Capacity Building: One of the main recommendations is to increase HSE training programs especially to the low level workers in order to accommodate a complete understanding and implementation of the risk-based systems. • Resource Allocation: Governments and oil and gas companies are supposed to allocate additional resources towards HSE management, especially in smaller facilities that have no financial resources to to use on advancing safety measures. • Strengthening of Regulation: In the same way, the reinforcement of regulatory control and the regularity of safety requirements enforcement may decrease the number of incidents and enhance the efficiency of the HSE systems. 4.5 Limitations Although the study has valuable information, it is necessary to add that it has certain weaknesses: Sample Size: The researchers used very few 5 oil and gas facilities in the study, and this has the potential of limiting the applicability of the results. Data Availability: In other instances, there was a lack of access to in-depth safety incidence information to conduct an analysis of long-term trends. Additional studies, based on a bigger sample of participants and a more detailed dataset, have the potential to confirm such results, providing better guidelines on how to enhance HSE management in third world countries. This paper investigated designing and deploying risk-based Health, Safety, and Environmental (HSE) management systems in oil and gas plants in the developing world. The results reiterate the need to implement risk-based systems that are specific to the problems encountered by facilities in these areas like poor infrastructure, resource availability, and enforcement of the policies. Some of the major findings of the study are: • 1.Risk-Based Approaches Effectiveness: Risk-based HSE management systems, such as Bowtie Analysis, have been shown to be effective in recognizing hazards, evaluating risks and setting priorities on safety actions. Nevertheless, their application in the developing countries is mostly crippled by insufficient resources and training. • 2.Increased Incident Rates in Developing Regions: The paper established that the safety incident rates are much higher in developing areas than in developed areas meaning that better safety systems are required. Decades of research revealed that incidence rates were 4 times more prevalent in developing as compared to developed regions as depicted in Chart 1. Volume-02 Issue 07, July-2018 ISSN: 2456-9348 Impact Factor:4.520 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [40] • 3.The impediments to Implementation: There are various difficulties with the implementation of the risk-based systems in the facilities in developing regions. These are absence of sophisticated risk assessment instruments, staff inexperience and inefficient regulatory implementation. It is necessary to address these barriers in order to achieve better safety outcomes. • 4.Improvement Recommendations: To be more effective in the HSE management systems, the study suggests the following recommendations: • Capacity Building: Investment in the training of workforce and local expertise in the area of risk-based HSE management. • Resource Allocation: It is necessary to spend sufficient resources to implement the modern methods of risk analysis, including Bowtie Analysis and HAZOP. • Tougher Regulatory Structure: Enhancing regulatory controls and making the safety standards to be universally implemented. • Technological Integration: The use of technology to improve risk monitoring and predictive maintenance using technology like the IoT and AI-driven system. 5.Future Research: Future research is needed on long-term assessments of the effects of risk based HSE systems on safety incident rates especially in smaller facilities in the developing regions. 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