10 HSE, a cultural step change ENI - Grace EMEA...Eni overviewand assetstructuralcomplexity HSE...

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GRACE conference April, 2015

Transcript of 10 HSE, a cultural step change ENI - Grace EMEA...Eni overviewand assetstructuralcomplexity HSE...

GRACE conference

April, 2015

� Eni overview and asset structural complexity

� HSE role in an oil&gas company

� Risks in oil&gas sector

� Emerging risks: climate change

� HSE management vs stakeholders expectations

� HSE issues at first place

� Our main guidelines

Agenda

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� Our main guidelines

� Technologies at the service of environment and safety

� The role of organization and procedures

� The challenge of cultural change

� Our HSE performances

� Our vision: the next steps

Eni overview (1/2)

Our mission

“We are a major integrated

energy company, committed to

growth in the activities of finding,

producing, transporting,

transforming and marketing oil

and gas. Eni men and women

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and gas. Eni men and women

have a passion for challenges,

continuous improvement,

excellence and particularly value

people, the environment and

integrity”

Eni overview (2/2)

Activities in 85 countries:- 27 in Europe;- 19 in Africa;- 26 in Asia and Oceania;- 13 in Americas.

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2013 performances

Structural complexity

Downstream oil:- 5 wholly-owned refineries, EST plant, FCC, HDC, LCF;- 787 kbbl/d balanced capacity and 62% of conversion index;- 27.4 Mt/year of refinery throughputs- about 1,600 km of pipelines and 19 depots.

Upstream:- 1.6 Mboe/day of oil and natural gas produced and 6.5 bboe of proved reserves of hydrocarbons;

- more than 180 platforms and oil centers in 32 countries;- FPSO.

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Downstream chemistry:- 13 plants;- 4 research centers;- network of 23 sales branches;- 3.46 Mt of intermediates production;- 2.36 polymers production.

Engineering & construction:- 46 construction vessels;- 16 drilling vessels;- FPSO vessels.

Downstream power:- 7 power generation plants;- 23 TWh/year produced;- 5.3 GW installed operational capacity.

- about 1,600 km of pipelines and 19 depots. - FPSO.

HSE role in an oil&gas companyRisks in oil&gas sector

� HSE issue is of primary importance in our company, because eni manages a business with high risk.

� The incidents in the oil&gas companies have negative consequences on the whole sector.

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Macondo, 2010

Buncefield, 2005Paraguaná, 2012

Texas city, 2005

HSE role in an oil&gas companyEmerging risks: climate change

"No challenge  poses a greater

threat to future generations than climate change“

Barack Obama, 2015

� Climate change, mainly attributed to fossil fuels, makes it necessary to act on the part of oil companies to mitigate it and to contribute to its management

� In general, the process of growth and improvement in HSE can, indeed must,

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� In general, the process of growth and improvement in HSE can, indeed must, be the result of cooperation and exchange of experiences, strategies and technologies among the major oil companies

� O&G sector owns skills, competencies and technologies which can contribute to the mitigation of climate change

� Eni participates in the main international networks aimed to improve and support HSE performance: OGP, IPIECA, CONCAWE

HSE management vs stakeholders expectations

Request for continuous improvement:

water, waste, energy consumption… (compliance with Regulation and international standards)

New frontiers for the oil&gas:

Best practices and technology solutions to assure safety operations in sensitive areas and minimize the risks for the environment.

To continue to invest in technology

Increase in stakeholdersIncrease in stakeholders

and shareholders HSE expectationsand shareholders HSE expectations ActionsActions

The future of an oil company depends on its ability to manage HSE issues, anticipating the changes required by communities and environment

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New frontiers for the oil&gas:

artic, unconventional, sensitive ecosystems...

Climate emergency:

Climate change produces effects on natural resources availability, modifies ecosystems and influences the industrial activities as well as the community lives.

No more tolerance for injuries and accidents

To continue to invest in technology innovation and in a widespread environmental and safety culture

Opportunity to take part in the climate solutions: mitigation and adaptation measures in place.

To boost up the HSE culture and behaviors

HSE issues at first place

«The pursue of integrity in operations, meaning by this the safeguard, in eni’s activities, of

HSE contribution to the company results

Overall performance

Sustainable future

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by this the safeguard, in eni’s activities, of people, partners, of company’s assets and environment, is a top priority and a shared

value, among eni’s people»

HSE issues must be in the first place, also before economic results or project

schedules

Our main guidelines

� Strong commitment (HSE embedded in the managers’ evaluation process, safety as “first item” in every meeting and event)

� HSE Management System and “in field” control activities (Strength, widespread and homogeneous approach to HSE)

� Investments in HSE culture & training (eni in safety, safety road show, safety day, energy day, waste day)

� Massive environmental expenditure (flaring down, GHG management, water injection, waste management, remediation)

� HSE standards for the whole operational process (procurement, project development, construction, production, decommissioning and remediation)

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development, construction, production, decommissioning and remediation)

� Management of the contractors (HSE requirements in qualification, in field control and feedback)

Technology Organization & procedures

Behaviours & culture

Technologies at the service of environment and safety: Evolution of environmental performance in a 40000 BPSD FCC

< 1960:Baseline

’60s:CO boiler

~2005:Wet

scrubber

Saving: 35-40 ktoe/y

90-120 ktCO2/y

20 mg/Nm3 dustSaving:

12-15 ktoe/y35-45 ktCO2/y

500 mg/Nm3 SO2

1500 mg/Nm3 SO2

300 mg/Nm3 dust

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’90s:ESP

~2000TEX + 3rd/4th

cyclone

500 mg/Nm3 SO2

10 mg/Nm3 dust

50 mg/Nm3 dust

Savings vs. baseline

Energy CO2 SO2 Dust

25-30 kgOE/t feed 75-90 kgCO2/t feed 1000 mg/Nm3 290 mg/Nm3

47-55 ktoe/y 130-160 ktCO2/y ~1100 t/y ~300 t/a

Technologies at the service of environment and safety (1/2)

� FCC plant revamping in the

1. Deep review of all detailed engineering activities� The hot works were reduced from the original

3,000 to about 1,800 (7 per day in average)

2. Development of a best practice to

An innovative solution was developed to reduce and manage the risk

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� FCC plant revamping in the refinery of Milazzo duringoperation

� about 3,000 planned hot works, several at the same time

� high noise from the plant and very limited space available to carry out jobs

� The application of the standard precautions has been consideredinsufficient to mitigate the risk

2. Development of a best practice to minimize the residual risks� In order to eliminate the human factor and to

heavily reduce the response time, other than increasing the LEL detection points , the agreed best practice uses the existing network system of fixed detectors, enhanced by additional mobile detectors placed in proximity of the welding points.

� This network is connected to a DCS that, in case of detection of explosive atmosphere, will immediately switch-off the power supply to all the welding machines.

FIELD

TECHNICAL ROOM

EXISTING

DETECTORS IN THE

DCS

Technologies at the service of environment and safety (2/2)

EXTRA MOBILE

DETECTORS CLOSE TO

THE WELDING POINTS ELECTRICAL SUBSTATION

LOCAL WELDING MACHINES

DETECTORS IN THE

UNIT IN OPERATION

FEEDER SWITCH

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The role of organization and proceduresCertified management systems and audits

113ISO 14001

3 levels of HSE control:

(100% eni company with a significant HSE risk)

392 certifications across eni group:

120OHSAS

10EMAS

61ISO 9001

10ISO 50001

25ISM (shipping)

25Other

6,400 HSE audits in 2014 (technical audits, conformity inspections, system audits, process safetyaudits, etc.) and a system for contractors qualification and feedback management, with their comparative evaluation.

More than 4,000 people dedicated to HSE (5% of eni workforce) and 2 million hours of HSE training per year

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2nd level

1st level

eni

Business area chief position

EmployersManaging director

eni HSE function

HSE functions for business

areas

HSE functionsPrevention

and Protection Services

Perform HSE steering, coordination and control activities over business area.Establish strategic guidelines.

Perform HSE steering, coordination and control activities over employers.

HSE responsibilitiesExecutor of said activities

Guarantee and verify that the activities conform to the law in force, as well as to eni internal policies and regulations.Assess impacts and devise appropriate measures of protection to prevent HSE risks.

Procedures

ManagementSystem

Guideline(HSE MSG)

Operating Instructions

Policy

3 levels of HSE control:

3rd level

The role of organization and proceduresContractors management

� HSE topics had been included throughout the entireentire procurementprocurement processprocessandand contractorcontractor managementmanagement

� HSE advisors together with the Contract Holder, to evaluate contractor HSEperformances and consequent impact on contractor’s rating and ranking

� Clear HSE rules set as required by the contract generalconditions to be monitored also verifying an effective:

� HSE commitment by Top Contractor Management

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� HSE commitment by Top Contractor Management

� HSE competencies of Contractor’s line and field Mng

� Instruments application: Gruvis, Safety observation, ESTmodel, etc.

� 2011-1st2014 half: 1,773 penalties on 1,243 contractors

� The “KeyKey wordswords” are always the same:

� Operating control (presence in-field), Team work, Zero tolerance,Training and communication, Continuous improvement

The challenge of cultural change

� Long term vision

� Risks identification and prevention capacity

� Promotion of innovation

…but the biggest challenge is…

� capability to promote and sustain a cultural step change, a vision thatconsiders HSE not as a lot of different constraints and limits for the business

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considers HSE not as a lot of different constraints and limits for the businessbut as a business opportunity

A company that pays attention to safety and environment is a company

that produces value for itself and the community.

HSE “culture” and not “contingency”

Cultural change: overview of safety initiatives/activities

Safety road show (more than 3,000 people involved (employers and contractors) and 25 sites in two years

Safety projects to Safety projects to remove the most important causes of accident

eni in safety (more than 20,000 peopleinvolved in two years in WS and activities)

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Our HSE performances (1/2)

eni top performer in 2013 among oil&gas majors

TRIR: -61% in 2014 vs. 2009

TRIR 2009-2014

2,49

2,13

2,272,23

1,79

1,96

1,75

1,37

1,511,45

1,01

1,17

1,35

0,86

1,041,13

0,72

0,89

0,00

0,60

1,20

1,80

2,40

3,00

Employees Contractors Workforce

(Tota

l Reco

rdable

Inju

ries/

Work

ed H

ours

) x 1

.000.0

00

2009 2010 2011 2012 2013 2014

-16%

-15%

-16%

� In 2014 eni workforce TRIR has improved by14.7% compared with 2013.

� Also employees and contractors indexes haveimproved, respectively by 16% and 16.1%.

LTIF 2009-2014

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LTIF: -80% in 2014 vs. 2006

Total Recordable Injuries: Lost Time Injuries + Restricted Workday Cases +Medical Treatment Cases

2009 2010 2011 2012 2013 2014

� In 2014 eni workforce LTIF continued theimproving trend (-13.1% compared with 2013).

� Also employees and contractors LTIF haveimproved compared with 2013 (-7% and -19.9%respectively).

Lost Time Injuries: Fatalities + Lost Workday Cases

LTIF 2009-2014

0,84

0,970,92

0,80

0,710,75

0,65

0,570,60

0,57

0,450,49

0,40

0,320,35

0,38

0,250,30

0,00

0,30

0,60

0,90

1,20

1,50

Employees Contractors Workforce

(Lost

Tim

e I

nju

ries/

Work

ed H

ours

) x 1

.000.0

00

2009 2010 2011 2012 2013 2014

-7%-20%

-13%

Our HSE performances (2/2)

Gas flaring

17,42 17,06

12,15 12,31

8,79

4,84

21,09

25,11

54,10

47,02

40,2037,53

31,0128,55

22,12

12,42

0

8

16

24

32

2007 2008 2009 2010 2011 2012 2013 2014

MSm

3/d

ay

0

12

24

36

48

60

Gas fla

red v

s HC p

roductio

n (to

e/k

toe)

Nigeria Congo Libya Algeria Egypt Other Countries Flar./Prod. [toe/ktoe]

CO2 eq. from gas flaring: -72% in 2014 vs. 2007

� In 2014 volumes of flared hydrocarbons down vs2013 (-45%).

Produced water reinjected: 56% in 2014 vs. 33% in 2006

� In 2014 total produced water reinjectedincreased by 5% vs 2013.

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Yearly fuel savings

30,0

16,9 15,9

44,5

83,6

34,0

15,7

4,8

30,8

26,4

16,8

23,5

4,3

44,2

30,0

21,7

46,7

70,9

100,4

57,5

64,2

0

22

44

66

88

110

2008 2009 2010 2011 2012 2013 2014

kte

p/y

ear

downstream oil versalis upstream

Produced water reinjected

63,9

74,569,0

82,7

91,596,1

39,1%

44,4% 43,3%

48,7%

54,7%56,5%

0

24

48

72

96

120

2009 2010 2011 2012 2013 2014

km

3/d

ay

0%

12%

24%

36%

48%

60%

% o

f rein

jecte

d p

roduced w

ate

r

Ecuador Egypt Libya Indonesia Congo Other Countries % reinjected produced water

Our vision: the next steps

Environment: strong engagement in o&g efforts for climate

� Oil&Gas Climate Initiativevoluntary initiative for standardize the development and thereporting of GHG mitigation activities, such as: flaring down,methane emissions, carbon capture & storage etc.

� Climate and Clean Air Coalition O&G Methane Partnershipprivate-public initiative for the implementation of monitoring plansand reduce methane emissions in the upstream.

� World Bank Global Gas Flaring ReductionPrivate-public initiative zero gas flaring in 2030.

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Safety: our target is zero fatality and zero injury

� Ongoing “eni in safety” and “safety road show”.

� Launch of the “HAWOSA” project on October 9th 2014.

� Launch of the project against collision/crushing.

� Full implementation of the qualification process and thecollection and analysis of feedback.

� Start up of the “Safety Competence Center” on January 12th

2015.

Private-public initiative zero gas flaring in 2030.