Annual Offshore Safety Conference, Esbjerg

10 April 2014
Stig Stellberg, Statoil
Date: 2006-09-18 Page: 1

Statoil is the largest

offshore operator in the
world
Statoil operates 80% of
the fields on the
Norwegian Continental
Shelf

Our job is to manage risk

How can we manage

risk everyday in
everything we do?

Why do we take risk?

Where there is no risk, there is no gain.
The purpose of risk management is not to eliminate the risk itself,
but to understand the risk so you may increase the possibility to obtain a gain,
and simultaneously minimise the possibility for a potential loss.

Potential loss
Potential gain

The industry we operate in is associated with high risk.

However, we perceive the possibility for a gain as bigger than the possibility of losses.

Managing an operational business is about.

Culture

Structure

Compliance is about our ability as organisation to deliver according to requirements and

expectations in order to sustain control over the businesss

It is important to acknowledge that..

Structure has no intrinsic value in itself - structure has
only value when it is culture

Systems that do not work as intended, could be

counterproductive and may defeat its own end.

From structure to culture?

Compliance in practice?

Culture
Structure

The second dimension

Leadership and interaction

Leadership has no intrinsic value in itself - leadership has value when it is exercised in such a way that structure becomes culture

It is people
that do the job

8Classification: Internal

2013-10-06

Incidents with potential for major accidents in Statoil

Visund

Snorre A

Mongstad

Kollsnes

Statfjord A

Gas leak

Blowout

Process incident

Condensate leak

Oil leak in shaft

I do not think we should hide the fact that we've been very close to a major accident in the past 10 years

We do not make new mistakes

Premises - performance level.

Classification: Internal

2013-10-06

Coorporate investigation report

Criticise the way the operations were risk-assessed, planned and executed

10 barrier violations in average per Event

70 - 80% of the barrier violations is onshore

Organizational barrier fails- do not manage to stop on red lights

10

Classification: Internal

2013-10-06

4/14/2014
11

Where do we have to go

4/14/2014
12

PSA-N

Important experience from major accidents

There may be a significant gap between what the

Management believes is under control
and the facts.

How the organisation

is supposed to act

How the organisation

actually act

What kind of information the Management relies on to

obtain a picture of the company's "health" is important.

14

Classification: Internal

2013-10-06

PSA-N

Important experience from major accidents

There was clear information that showed

that something was wrong
The problem was:
Information that got the most attention
was limited relevant - this was overrated
Relevant information was
underestimated or not
perceived as relevant
No one challenged the relevance of
information / range

15

Classification: Internal

2013-10-06

Powerpoint driven exercises

rather than a people, process
and cultural matter

Statistics

16

Complacency

Not a single lost-time incident in seven years of drilling.

The best performing rig that we had in our fleet and in the Gulf of Mexico.
Everyone involved with the job . . . was completely satisfied. . .

17

Classification: Internal

2012-01-19

The challenge can we not longer believe in the Iceberg theory

XXX

Did they misunderstand the iceberg theory

and believed that they had control of major accident
when they had control of personal safety?

Is the number of personal injuries a bad

indicator of major accidents because the
mechanisms behind minor accidents are
significantly different of them leading to a major
accident?

Iceberg theory (Heinrich 1931).

18

Classification: Internal

2013-10-06

Do we have to challenge ourselves,

asking:
1. What is it we think we know
2. What is it we think we can

It is about closing the gap

How the organisation

is supposed to act

How the organisation

actually act

We need to have more true information

How do we get it?

19

Classification: Internal

2013-10-06

Closing the gap

Reactive indicators say something
on historical performance

We must know where we are

constantly - and tomorrow

Proactive indicators say something

about the ability of future performance

20

Classification: Internal

2013-10-06

It is people that do the job - enable them to comply

Expressed
behaviour
(requirements)

Understand
what to do

Skills
Observation
Indicators

4/14/2014
21

How do we go to it closing the gap - skills and observation

Define a generic, risk based pattern of behavior

On the job training

Leader to train own teams

4/14/2014
22

The Statoil management system

We have a management system which defines how we work and describes
how we lead and perform our activities.
Bedside?
Objectives:
1. Handle risk
2. Ensure quality in planning,
execution and learning

3. Develop leadership and

culture

Operationalise our management system to ensure compliance in practice

23

Classification: Internal

2013-10-06

The A standard generic action pattern

Plan

Understand
task and risk

Identify and
understand
requirements

Manage
risk

Execute

Evaluate

Execute task

Evaluate
result
Extract
learning
Desired
result

Task

... a step by step work process, focusing systematically

on managing risks and learning
not only perform by compliance of
requirements alone ...
barriers are measures that are planned to break a
specified undesired event

24

Classification: Internal

2013-11-11

Ensuring structure to become culture

Culture
Structure

25

Classification: Internal

2013-10-06

Will it work?

Relationship operational safety and operational readiness

Reduce probability

Reduce consequence

Incident

A- standard action pattern

Proaktiv emergency action

pattern

Understand task and risk

A-standard:
How we
execute tasks

Understand
task and risk

Identify and
understand
requirements

Manage
risk

Execute task

Desired
result

Task
Communicate how we work when execute task
Be a role model in your interaction with others
Leadership

Train, observe, follow up and guide your group when using model
to ensure effective interaction

Common understanding of the task

Identify and understand the risk
Risk owner

28

Classification: Internal

Evaluate
result
Extract
learning

2013-11-11

Identify and understand requirements

A-standard:
How we
execute tasks

Understand
task and risk

Identify and
understand
requirements

Manage
risk

Execute task

Desired
result

Task
Communicate how we work when execute task
Be a role model in your interaction with others
Leadership

Train, observe, follow up and guide your group when using model
to ensure effective interaction

Requirements: Statoils knowledge

Metod: How / Best practice

29

Classification: Internal

Evaluate
result
Extract
learning

2013-11-11

Manage risk
A-standard:
How we
execute tasks

Understand
task and risk

Identify and
understand
requirements

Manage
risk

Execute task

Evaluate
result
Extract
learning
Desired
result

Task
Communicate how we work when execute task
Be a role model in your interaction with others
Leadership

Train, observe, follow up and guide your group when using model
to ensure effective interaction

Team assessment
Add team knowledge in order to manage the total risk

30

Classification: Internal

2013-11-11

Execute task
A-standard:
How we
execute tasks

Understand
task and risk

Identify and
understand
requirements

Manage
risk

Execute task

Evaluate
result
Extract
learning
Desired
result

Task
Communicate how we work when execute task
Be a role model in your interaction with others
Leadership

Train, observe, follow up and guide your group when using model
to ensure effective interaction

Continuously risk evaluation

Proactive time out - to stop as a part of woorking
Compensate for changes
Right first time
Learning

31

Classification: Internal

2013-11-11

Steer Stop - Check

32

Classification: Internal

2012-01-19
2013-10-06

Evaluate result - Extract learning

A-standard:
How we
execute tasks

Understand
task and risk

Identify and
understand
requirements

Manage
risk

Execute task

Desired
result

Task
Communicate how we work when execute task
Be a role model in your interaction with others
Leadership

Train, observe, follow up and guide your group when using model
to ensure effective interaction

Learn
Evaluate gaps
Suggest improvements

33

Classification: Internal

Evaluate
result
Extract
learning

2013-11-11

Stable high
performance
with less variation
Observation
Learning

34

Classification: Internal

2013-10-06

Leadership is the key

35 - Classification:
4/14/2014
Internal
35

2011-08-26Classification: Internal
2011-08-16

2011-08-16

Training is the key to closing the gap

because training involves observing gap which can be closed before they become incidents
36 -

Training in management teams onshore

It is people
that do the job

Delivery model
DPN MC

Level 2
Level 3
Level 4

Level 5
Level 6

350 leaders train their own teams 3 times supported by a facilitator

1200 training sessions + pre meetings and evaluating meetings
38

Modular training with guidelines

Module
1
Understand,

Module
2
Risk

Module
3 risk
Plan

Module
4
Manage
risk

Module
5 and
Learn

present and
test out the
Model

indentifcation
and
understanding

managament

during
execution

improve

Leaderss continous follow up

Develop leaders through reflection, dicussion and learning.

What C&L training is about Culture building

Pattern of
behaviour

Activity

Groups and leader`s focus

Initially
After some training

Leaders role
Facilitator`s focus

DPN MC

Level 2
Level 3
Level 4

Level 5
Level 6

Create a common Statoil Culture

41

Training offshore DPN

2013-05-28

Basic training leaders

2 days onshore training

Basic training in
understanding and use of
the Compliance and
leadership model
First line leaders, OIMs,
Main safety delegates,
Production manager

43

2013-05-28

Training senior maintenace personell

1 day training for
off/onshore senior
maintenance personnel (in
charge of maintenace
planning)
How to use the
Compliance and
leadership model in all
tasks
How to identify and
manage risks in all task

44

2013-05-28

Training offshore: Pre-work dialogue as a

barrier
Firstline leaders train their team-members
in how to make the pre-work dialogue
between the responsible area tehcnician and
the workers (executor) a real barrier.
Take part in planning the dialogue
Observe and guide through the
dialogue
Evaluate the dialogue after the training
have been conducted

Pre-work dialogue
Main effect: The dialogue becomes a barrier
Side effects: First line leaders are helped to
observe and train/guide their teams
Insufficient planning are observed by
leaders

45
Classification: Internal

2013-10-06

Guideline
Pre-work dialogue
as a barrier

Link to manual
46

2013-05-28

Production
manager

Train

OIM

First line
leader

Train

First line
leader

Train the area

responsible in A
standard and the
pre job dialogue

Area
responsible

Train the executor

in planning
according to A
standard and the
pre job dialogue

Pre job dialogue

The dialogue ensure:
Managing risk in the
sharp end.
A standard quality in
execution

Executor

Process to close gaps

Me as a Platform Manager
(Close gaps)

My job:
Ensure control over the business
When:
When all individuals have control over their individual
activities every time without exceptions
How:
A method everyone can understand and apply to all individual
activities risk based and proactive
Measure the robustness and behavior continuously:

behavior can not be measured but must be observed

Training observe identify gaps - close gaps before they become

events true information - being proactive
Define highest potential risk every day no compromise

48

Classification: Internal

2013-10-06

Continuous improvement
4

2
2,9
2,3

1,9

1,9

1,9

1,7
1,2

0,9

0,9

2011

2012
YTD

0
2004

2005

2006

2007

2008

2009

2010

2013

2014

SERIOUS INCIDENT FREQUENCY (SIF)

Number of serious incidents in Statoil per million hours worked

Classification: Internal

2013-10-06

2015

The Compliance & Leadership model is the most important strategic tool for improved safety performance

50

Classification: Internal

2013-10-06

The Norwegian Oil and Gas Association guideline industry standard

Forbedre

Forst
oppgave og
risiko

Utfrende

Oppgave

Leder

Identifisere
krav

Utfrendes
kunnskap

Utfre
oppgave

Samhandling

Lederskap i hverdagen
(Kommunikator rollemodell trene/veilede)

4/14/2014

Make common cause close the rutine job gap - contractors

51

Evaluere
resultat

Leveranse

Ulykke
STOP

52 - 4/14/2014
Classification: Internal
52

2011-09-16

Thank you for listening

4/14/2014