20151208 Hydrocarbon training Cyprus - Stakeholders session
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Transcript of 20151208 Hydrocarbon training Cyprus - Stakeholders session
1
Dutch hydrocarbon sector and
role of regulation and standardization
Jarno Dakhorst & Willem van der Wal
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Outline
• Dutch hydrocarbon sector
• Regulations related to offshore gas operations
• Introduction into standardization and certification
• Overview of oil and gas standardization and standards
• Golden triangle
• Next steps for Cypriote hydrocarbon sector
2 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
3
DUTCH GAS & OIL SECTOR
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
History of natural gas in The Netherlands
4
• 1948: first gas field drilled in Coevorden
• 1959: discovery of Groningen field => about 900 km2
and first estimate of 2 700 billion m3 producible gas
(one of the biggest gas fields of the world)
• 1961: first offshore drilling in North Sea
• 1973: decision of scaling back Groningen production
and focussing on small fields => dozens of new fields
have been developed
• Now: increased reduction of Groningen production
due to earthquakes and continued small fields policy
SOURCE: NOGEPA
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Gas and oil production in The Netherlands
5
Key
Green gas field or pipeline
Red oil field or pipeline
Natural gas production:
• 70,0 billion m3
― 42,3 billion m3 Groningen
field (onshore)
― 27,7 billion m3 ‘small
fields’ (mainly offshore)
Oil production:
• 1,81 million m3
SOURCE: Annual review 2014: Natural resources and geothermal energy in the Netherlands
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Dutch stakeholders (1)
6
SOURCE:
ALPS Alerian MLP
Organizations making part of energy value chain
Regulators
Policy makers
Suppliers
Inspection bodies
Researchers
BINGOs
PINGOs
Trainers
Consultants
Investors
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Main operator: NAM (50 % Shell &
50 % ExxonMobil)
Other operators like: Centrica, Dana,
Engie, Hansa, ONE, Petrogas,
TAQA, Total, Tulip Oil, Tullow, Wintershall
Main
infrastructure:
Gasunie
Transport
Services (100 % state owned)
Dutch stakeholders (2)
7
Regulators
Policy makers
Suppliers
Inspection bodies
Researchers
BINGOs
PINGOs
Trainers
Consultants
Investors
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
E.g.:
• Dredging like Boskalis, Van Oord
• Ships and FPSOs like Blue
Water, Damen, IHC
• Marine operations like Allseas, Dockwise , Heerema, Jumbo
• Equipment like Ampelmann,
Huisman, Mokveld, NOV
Governmental
bodies (next
slides)
E.g. Bureau Veritas,
DNV GL, LR, Peterson E.g. Deltares, Fugro,
Marin, TNO
NOGEPA – Netherlands Oil and Gas
Exploration and Production Association
IRO – The Association of Dutch Suppliers
in the Oil and Gas Industry
Governmental bodies for Dutch natural gas
exploration & production
8
• Various governmental bodies involved:
― Ministry of Economic Affairs (EZ) [policy-maker]
― Ministry of Infrastructure and the Environment (I&M) [policy
maker]
― Ministry of Finance [revenues]
― State Supervision of Mines (SSM/SodM) [supervisory body]
― Human Environment and Transport Inspectorate (ILT)
[supervisory body]
― Consumers and Market Authority (ACM) [regulator]
― Energie Beheer Nederland (EBN)
• Main offshore governmental bodies are EZ and SSM
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
About EBN
9
• EBN …
― … is 100 % state participation of Ministry of Economic Affaires
― … is responsible for great deal of income obtained by Dutch
State from gas and oil extraction from Dutch subsurface
― … cooperates closely with operators for natural gas and oil
production
― … has extensive knowledge of deep subsurface and insight
into innovative exploration and extraction techniques
― … plays important role in successful production of natural gas
and oil – both on land and at sea
― .. participates in the E&P activities the oil and gas producers
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
About SSM/SodM (1)
10
• State Supervision of Mines (SSM/SodM) …
― … is only supervisory authority for offshore oil & gas activities
― … is mandated by three ministers for supervisory activities;
Minister of Economic Affairs (EZ)
Minister of Social Affairs and Employment (SZW)
Minister of Infrastructure and the Environment (I&M)
― … makes Strategy and Programme (S&P) every 5 years,
describing supervision policy, choices in subjects, objects and
distribution of capacity, which should be approved by ministers
― … makes annual working plans (derived from S&P) and
annual reports (latter are also sent to parliament)
― …. always uses intervention policy that belongs to relevant
legal regime
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
About SSM/SodM (2)
11 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
safety and health
legislation
EZ
DG Energy (policy + permits)
DG (policy)
DG (policy)
SZW I&M
SSM
environmental
legislation
E&P legislation
Monitoring arrangement of SSM/SodM (1)
12 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Monitoring arrangement of SSM/SodM (2)
13 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Withdraw permit
Criminal penalties
Administrative penalties
Public disclosure
Warning
Recommendation
Communication
Sparrow intervention tools
Suspend permit
INTERVENTION PYRAMID
Legal framework for natural gas
exploration & production (1)
14
• Main legislation (also available in English):
― Mining Act
― Mining Decree
― Mining Regulation
• More legislation apply in the field of:
― the environment incl. noise, surface water
― occupational health and safety
― working hours
― transport and supply of gas
― management and use of water systems
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Note: hyperlinks to
legislation are subject to
changes
Legal framework for natural gas
exploration & production (2)
15
• Mining Act lays down “rules concerning the
exploration for and production of minerals and
concerning activities connected with mining”:
1. definitions and general provisions
2. licences for exploration and production of minerals and
terrestrial heat
3. licences for the storage of substances and for the exploration
for CO2 storage complexes
3a. reduction of an area
4. ensuring that the activities are executed properly
5. financial conditions
6. advisors
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Legal framework for natural gas
exploration & production (3)
16
• Mining Act (continued):
7. reporting
8. supervision and enforcement
9. guarantee fund mining damage
9a. coordination of the construction or extension of mining works
and pipelines for the production of hydrocarbons and the
storage of hydrocarbons
10. legal protection
11. transitional provisions
12. withdrawal and amendment of certain acts
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Procedure according the Mining Act for
exploration and production activities (1)
17
• Exploration license is applied for from EZ
• Operator indicates place and size of area of investigation in this
application
• Application is published by EZ
• During this period other parties are also allowed to submit an
application
• All applications are looked at simultaneously
• EZ consults:
― TNO (subsurface and production plan)
― SSM (safety procedures)
― EBN (economic feasibility)
• Applicant with best production plan got license
• Exploration drilling activities are carried under supervision of SSM
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Procedure according the Mining Act for
exploration and production activities (2)
18
• Oil or gas production license can be applied for when an
economically recoverable amount is found
• Producer must enter into agreement with EBN
• Environment impact assessment must be carried out before
drilling can start
• SSM monitors mining, environmental and labour regulations
during production
• Installations and pipelines must be removed after depletion .
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
NL Oil & Gas portal
19
Portal provides information about oil, gas and geothermal energy
exploration and production in the Netherlands and the Dutch sector
of the North Sea continental shelf. It aims to help users access
information furnished by the Dutch government in an easy,
comprehensible fashion.
Visit www.nlog.nl/en/home/NLOGPortal.html
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Outlook
20
• Annual natural gas production of Groningen field
much lower than in the past [in response to earthquakes]
• Changing from a natural gas exporter to an importer [already the case since this year]
• Stimulation of life-time extension and enhanced
recovery of small fields (mainly offshore), also to
maintain existing infrastructure (e.g. pipeline systems)
• Continuation of being a key player in gas sector in
North-western Europe, also through LNG, biogas and
underground gas storage
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
21
REGULATIONS RELATED TO
OFFSHORE GAS OPERATIONS
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Driver for EU regulations
22 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Underlying drivers for EU regulations (1)
23
• EU offshore industry:
― Ageing production infrastructure
― Structural shifts of main players
― Challenges of the new frontiers
― Inconsistency in company
practices with respect to major
hazards
― Continuing failure in
compliance
― Inadequate safety culture
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Underlying drivers for EU regulations (2)
24
• Regulation:
― Uneven technical expertise
amongst regulators
― Inconsistency and lack of
transparency in incident data
and learnings from
investigations
― Fragmented global
requirements and approaches
― Fragmented EU legal
frameworks – goal setting
versus prescription
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Underlying drivers for EU regulations (3)
25
• Emergency preparedness and response
― Unreliable financial capacity of industry
― Inconsistency in emergency planning
― Incompatible response assets
• Liability for recovery and
damages
― Financial mechanisms inadequate
― Lack of clarity for environmental
liability
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Conclusions
26
• Industry highly capable, but:
― strong safety culture insufficiently embedded throughout industry
― lack of transparency/sharing of information
• Some EU regulators best-in-class, but:
― fragmentation of regulatory systems
― cooperation is inconsistent
― safety and environment not universally coordinated
• Need for co-ordination and co-operation amongst
regulators, and with non-EU countries
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Directive 2013/30/EU
27
• Safety of offshore oil and gas operations
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Directive 2013/30/EU – Nature
28 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Problem part General objectives Specific objectives
1. Risks can be lowered (i.e. too high to accept)
1. To prevent a major incident from occurring
1. Attain best industry practices in the EU based on primary duty of control of major accident risks; leverage global standards
2. Implement best regulatory practices for major accident prevention and mitigation by independent expert regulators in each Member State
2. Response measures need improvement
2. To deal with a major emergency should preventive measures fail
3. Implement fully joined-up emergency preparedness and response in all EU offshore regions
3. Liability provisions incomplete
4. Improve and clarify existing EU liability and compensation provisions
Directive 2013/30/EU – What is needed for
proper implementation? (1)
29
• Member States:
― Scrutiny of technical and financial liability at licensing
― Ensure public participation before any new areas are drilled
― Appoint independent and robust competent authority (CA) for
major hazard regulation – safety & environment
― CA must publish plans and procedures for handling risk
assessment documents, inspections, investigations and
enforcement
― CA must report offshore performance annually to EC
― 'Inactive' coastal MS to cooperate with neighbouring MS
― Companies registered in EU to furnish reports on overseas
major accidents to the MS
― CA to cooperate with EU Offshore Authorities Group
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Directive 2013/30/EU – What is needed for
proper implementation? (2)
30
• Industry:
― Technical and financial capacity assessed at licensing stage
― ‘Safety case' to include major environmental consequences
and be 'accepted' by regulator
― Installation emergency response plans prepared for
preventing escalation
― Every well to be notified => regulator / weekly well reports
― Must have scheme for independent verification of safety
critical elements, and well plans
― Corporate major accident prevention policy => regulator
― EU-based operators to report on overseas major accidents
― Workforce to be consulted / whistle blowers protected
― incidents and near-misses reported in EU standard format
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Directive 2013/30/EU – Where is the
resources capacity?
31
• Industry needs capacity
for:
― formal safety assessments
― localised emergency
response planning
― scheme of independent
verification
― standardised reporting
― integrating response assets
and capability with national
arrangements
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
• Regulators needs capacity
for:
― technical expertise
― stakeholder management
― quality systems
― recovering costs from
operator/owner
• Both needs capacity for:
― Cooperating with EU
offshore authorities group
(EUOAG) on priorities for
guidance and standards
Directive 2013/30/EU – Time table
32
• Directive into force 18 July 2013
• Member States to transpose in 2 years
• Fully operational in 3 years
• All existing installations to comply into 5 years
Link to European Commission’s “offshore” website:
http://ec.europa.eu/energy/oil/offshore/standards_en.htm
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
33
INTRODUCTION INTO
STANDARDIZATION AND
CERTIFICATION
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into standardization –
What are standards?
Standards…
• … are documents with agreements on products,
services and systems
• ... are designed for voluntary use
• ... contribute to:
― (inter)national strength of competition
― innovation
― health, safety and environment
― image
• ... are in accordance with WTO
34 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into standardization –
Why standardization?
35
Overcoming trade barriers
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Vision ISO/TC 67
(oil & gas):
Introduction into standardization –
What is standardization?
Standardization …
• … is an open process => all parties concerned invited
to participate for broad support
• … is developing agreements based on consensus =>
no sustained opposition
• … is transparent => agreements are publicly
available for comments and use
• … takes place on three levels:
― national (e.g. NEN, CYS)
― regional (e.g. CEN, GSO)
― international (e.g. ISO, IEC)
36 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into standardization –
How is participation organized? (1)
37
All stakeholders + consensus creates broad support for
established agreements
Everyone
who has an
interest
can
participate
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into standardization –
How is participation organized? (2)
38
Stakeholder
Standardization process
Mirror committee NC 310008
ISO/TC 67 CEN/TC 12
Documents (e.g. draft
standards)
Input/influence (e.g. expert in
working group)
Stakeholder
Stakeholder
Stakeholder
Stakeholder
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into standardization –
How will an ISO standard be developed?
39
3 months by
default 2 months possible
2 months by
default optional; 3 or 4
months possible
2 month
translation (all ISO)
3 month ballot
2 month ballot
NP
CD
DIS Publication
Opt out
Opt in
WD
optional FDIS
• 3 tracks:
― Accelerated: 12 months to DIS and 24 months to publication
― Default: 24 months to DIS and 36 months to publication
― Enlarged: 36 months to DIS and 48 months to publication
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into certification –
Conformity assessment
40
Conformity assessment …
• … is demonstration that specified requirements
relating to a product, process, system, person or body
are fulfilled
• … can be performed by a:
― first party being the person or organization that provides the
object
― second party being a person or organization that has a user
interest in the object (e.g. customer)
― third party being a person or body that is independent of the
person or organization that provides the object, and of user
interests in that object (e.g. certification body)
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into certification – General
requirements conformity assessment process
41 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
CAB = conformity
assessment body ISO/IEC 17011
CAB
Product
certification
CAB
management
systems
CAB
Certification of
persons
CAB
inspectionslaboratory
producer / service provider
customer
ISO/IEC 17021 Guide 65 ISO/IEC 17020 ISO/IEC 17024 ISO/IEC 17025
Accreditation body
ISO/IEC 17065
Introduction into certification – Specific
requirements conformity assessment process
42 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Requirements concerning
content:
• product / services
• system
• person
Requirements concerning:
• method to conduct
determination activities
• review and attestation
• need for surveillance
Separated according to ISO 17007
Standard
xxx
Certification
scheme yyy
Introduction into certification –
Practice of certification (1)
43
Accreditation body - RvA
Conformity
assessment
body (CAB
Market
Standard
Scheme Scheme Scheme Scheme
Conformity
assessment
body (CAB
Conformity
assessment
body (CAB
Conformity
assessment
body (CAB
Option 1: each CAB individually
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Introduction into certification –
Practice of certification (2)
44
Option 2: central certification scheme to be used by CABs
Scheme
owner
Market
Standard
Scheme
Accreditation body - RvA
Conformity
assessment
body (CAB
Conformity
assessment
body (CAB
Conformity
assessment
body (CAB
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
45
OVERVIEW OF OIL AND GAS
STANDARDIZATION AND STANDARDS
© Lot Bakker | LOT of Illustrations
http://lotofillustrations.com/
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Overview of oil and gas standardization
46
Materials, equipment and
offshore structures
CEN/TC 12
CEN/TC 234
National mirror committees
ECISS
CEN/TC 282
Simplified representation
ISO/TC 67
ISO/TC 118/
SC1
IEC/TC 18
CLC/TC 18X
Electrical installations of
ships and of mobile and
fixed offshore units
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
ISO/TC 67 – Title and scope
47
• Title:
― Materials, equipment and offshore structures for the
petroleum, petrochemical and natural gas industries
• Scope:
― Standardization of the materials, equipment and offshore
structures used in the drilling, production, transport by
pipelines and processing of liquid and gaseous hydrocarbons
within the petroleum, petrochemical and natural gas
industries.
Excluded: aspects of offshore structures subject to IMO
requirements (ISO/TC 8).
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
ISO/TC 67 – Goals
48
• Prepare standards required by the industry
• Prepare standards that are adopted worldwide by
bodies such as ABNT (Brazil), API (USA), CEN
(Europe), GOST R (Russian Federation), GSO (Gulf
Region) and SAC (China)
• Prepare standards that are recognized by regulators
• Publish standards that enable companies to minimize
their specifications
• Deliver standards to the target dates on the agreed
work programme
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
ISO/TC 67 – Structure
49 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
ISO/TC 67 – Deliverables
50
SOURCE: IOGP | Poster can be downloaded from www.iogp.org/international-standards
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
CEN/TC 12 – Title and scope
51
• Title:
― Materials, equipment and offshore structures for the petroleum,
petrochemical and natural gas industries
• Scope:
― Similar to ISO/TC 67, excluding gas infrastructure from the input
of gas into the on‐shore transmission network up to the inlet
connection of gas appliances (covered by CEN/TC 234) and
installations and equipment for LNG (covered by CEN/TC 282).
• Secretariat provided by NEN and CYS
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
CEN/TC 12 – Mode of operation
52
• Standards are usually developed under Vienna
Agreement in ISO/TC 67 working groups, with active
participation of experts from at least 3 European
countries.
• One of European experts is 'European Project Leader'
(EPL) and checks that both environmental and
regulatory issues are taken into account.
• After publication by ISO, standards are adopted in
Europe as EN ISO (and with that as national standard).
• This development process is coherent with CEN/TC
12’s motto “Global standards used locally worldwide”
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
IEC/TC 18 – Title and scope
53
• Title:
― Electrical installations of ships and of mobile and fixed
offshore units
• Scope:
― Standardization for electrical installations and equipment of
ships and of mobile and fixed offshore units, incorporating
good practice and aligning as far as possible existing
regulations and IEC publications
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
IEC/TC 18 – Goals
54
• Standards will:
― chiefly concern factors promoting safety of ships and of mobile
and fixed offshore units; factors promoting safety of life.
― form a code of practical interpretation and amplification of
requirements of International Convention on Safety of Life at Sea,
a guide for future regulations may be prepared by
Administrations, and a statement of practice for use by builders
and appropriate organizations.
― foster interchangeability of parts and ease the selection and
procurement of equipment, including cables for transport of energy,
signals and data, by indicating, as appropriate, IEC standards of
ratings, types, dimensions, materials, quality, test methods, etc.,
whether or not these are influenced by regulations, and will thus
facilitate interchanges between purchaser and supplier.
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
CLC/TC 18X – Title and scope
55
• Title:
― Electrical installations of ships and of mobile and fixed
offshore units
• Scope:
― Standardization for electrical installations and equipment of
ships and of mobile and fixed offshore units used in the
offshore petroleum industry, including interconnected subsea
equipment, incorporating good practice and aligning as far as
possible existing regulations and IEC/CENELEC publications
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
CLC/TC 18X – Background
56
• CLC/TC 18X established in October 2011 after
initiative of Norway (also secretary to IEC/TC 18)
• Reason relates to documents where it seems clear
that EU intended to introduce EU standards for the
offshore industry, including mobile units, like
― EU COM(2010) 560 "Facing the challenge of the safety of
offshore oil and gas activities"
― SEC(2010) 1193 "Facing the challenge of the safety of
offshore oil and gas"
― "2010 – 2013 Action Plan for European Standardization"
• Intention is to take the work of IEC/TC 18 as basis for
the work in CLC/TC 18X as far as possible
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
57
GOLDEN TRIANGLE
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Relationship between regulation,
standardization and certification
58 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
One way to
demonstrate
is applying
standards
Regulator has
confidence in
value of certificate
to demonstrate
compliance with
law
Third party
conformity
assessment
increases
credibility
Operator has to
comply with legal
requirements
Case 1 – Directive 2013/30/EU (1)
59
Directive 2013/30/EU on safety of offshore oil and gas
operations and amending Directive 2004/35/EC:
“To ensure safety in design and continuous safe operations, the industry is required to follow the best practices defined in authoritative standards and guidance. […] Having due regard to the established priorities the preparation of new or improved standards and guidance should be commissioned without delay.”
“At Union level, it is important that technical standards are complemented by a corresponding legal framework of product safety legislation and that such standards apply to all offshore installations in offshore waters of Member States, and not just non-mobile production installations. The Commission should therefore undertake further analysis of the product safety standards applicable to offshore oil and gas operations.”
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Case 1 – Directive 2013/30/EU (2)
60
• European Commission is aiming at harmonised
standards for machinery used in drilling and well
intervention operations in offshore oil and gas industry.
• For this purpose, the European Commission intends to
submit a revised standardization request (formerly
known as mandate), after rejecting of a previous
standardization request by CEN/BT, also based on
recommendations by CEN/TC 12.
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Oil and gas standardization and regulation
61
European
Commission
Dutch
government NEN
Mandates
Standards
Standards
Laws
Regulation
Laws
Directives
Legislation Standardization
NC 310008
Standards
WTO ISO
CEN
Vienna
agreement
TC 12
TC 67
E.g. 2013/30/EU
No barriers to trade
E.g.
Mining
Act
Draft mandate
offshore oil &
gas industry
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Case 2 – NTA 8120 (1)
62
• SSM/SodM:
― inspector safety of gas networks and integrity and safety of
installations under Mining Act
― grid operators must have an operating safety management
system (SMS) from 2011
― voluntary agreement with requirements to SMS
• Grid operators:
― mostly integrated network companies (electricity and gas)
― also need for quality management system
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Case 2 – NTA 8120 (2)
63
• Result:
― voluntary agreement on asset management (with focus on
safety, quality and capacity)
― willingness of participation of (currently named) ACM as
supervisor for Electricity and Gas Act
First edition of NTA 8120 was published in 2009; the second edition in 2014 (also
in English) to align with ISO 55001,
integrate security and better distinct
requirements from recommendations
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Case 2 – NTA 8120 (3)
64
• All parties involved developed certification scheme
linked to NTA 8120
• Certification scheme operational since 2011
• Nearly all grid operators are certified for NTA 8120
• Next step to bring NTA 8120 certification under
accreditation (together with ISO 55001 certification)
• With this certificate grid operators demonstrate to
comply with NTA 8120 requirements and in this way
with parts of legislation => inspector can change way of
supervising to system surveillance
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Diamond
65 Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Working with accredited
conformity assessment
bodies further increases
confident in value
certificate
66
NEXT STEPS FOR CYPRIOTE
HYDROCARBON SECTOR
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Some observations
67
• Hydrocarbons are new market and potentially huge
business opportunities (both direct and indirect)
• Development of market needs cooperation with all
parties concerned (like standardization )
• Consider establishing a collective program with joint
objectives endorsed by all parties concerned to
accelerate business
• Meeting objectives can be achieved by dividing work
in ‘task forces’ for each identified aspect
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
What would be the next steps?
68
• Are all (inter)national stakeholders already engaged?
• What are the gaps to be filled? For example:
― Regulatory framework including role standards and certification
― Training / education of several bodies involved in licensing,
permitting, supervising, operating, maintaining, …
― Infrastructure including facilities for workers
― Own use of natural gas (e.g. fuel [CNG/LNG], power
generation, households, industry)
― Cooperation with neighbouring countries and other parties
― Awareness of society
― …
• What resources are needed? Do we have to prioritize?
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
Interactive session
69
• Please share your views
Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015
70
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Stakeholders session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015