Security Challenges for Oil IndustryImproving your business performance, safety, reliability, efficiency

2

Industrial Security IncidentsNigerian Pipeline ExplosionLagos, May 12 2006 At least 150 people were killed in an explosion at a petroleum pipeline in the Nigerian city of Lagos.

Militant Group Claims Responsibility for Oil Tank Explosion in IndiaSaturday, March 08, 2003 A banned militant group Saturdayclaimed responsibility for the explosions in an oil reserve depot and a gas pipeline in Assam, east India, according to the Press Trust of India (PTI).

Shell Platform Bombing -- NigeriaJune 27, 1999In Port Harcourt, Nigeria, armed youths stormed a Shell oil platform, kidnapping one U.S. citizen, one Nigerian national, and one Australian citizen, and causing undetermined damage. A group calling itself "Enough is Enough in the Niger River" claimed responsibility. Further seizures of oil facilities followed.

Mobil Oil - Indonesia27 May 2000According to press reporting, armed militants, who claimed to be members of the Free Aceh Movement, occupied a Mobil Oil production plant. The rebels ordered the workers and all Indonesian nationals to shut down production and held six hostages for several hours before releasing them unharmed and allowing production to resume. The militants

demanded $500,000 ransom to restore operations

Kenya Pipeline Company suspends security officers over vandalism24-08-06 The Kenya Pipeline Company lost over 4 mm shillings in lost opportunity to pump fuel for eight hours when its main

pipeline linking Mombassa and Nairobi was vandalized.

3

Industrial Accidents

Union Carbide Gas Leak BhopalOn 3rd December 1984, poison gas leaked from a Union Carbide factory, killing around 15000 people.

EXXON Valdez Oil SpillOn March 24, 1989, the Exxon Valdez grounded on Bligh Reef, The tanker was carrying approximately 53 million gallons of crude oil and spilled nearly 11 million gallons of oil into the biologically rich waters of Prince William Sound.

ONGC – BHN FireJuly 2005

The ONGC oil-drilling platform 160 km from the Mumbai coast had been completely destroyed by fire . There were 385 people on the platform when the incident took place, apparently due to collision of a vessel docked nearby, in high tide, and is expected to take nearly four months to repair, at a cost of more than $1 Billion

CNPC Petrochemical Blast, Jilin, PRCNov 2005A blast took place at a workshop in the No. 101 Chemical Plant. The fire was caused by mismanagement of a problem in a plant that processed benzene, a highly flammable liquid.The Songhua River in northeast China suffered a major water pollution incident due to the explosion, pollutants containing benzene, a substance harmful to human health, had entered the river after the explosion.

4

Consequences

Process Control Failure

Flow

Temperature

Pressure

Reaction

SIS

ESD

Natural / Accidents

Earthquake, Flood, Leakage of Toxic Material/Corrosive Material/Accumulation of

Hazardous Gas/High Pressure build up in close vessel/Failure of Rotating

Machine/Fire/Electrical Hazards

Deliberate

Terrorism,

Sabotage

Theft

Intrusion

Robbery

Workplace Productivity

Events

Hazards, Accidents, Mishaps like Fire, Explosion, etc

Safety SystemHazard Analysis,

Best practices, Policies & Procedures, Process control, Safety

automation, Safety Audits

Security SystemRisk Management, Policies &

Procedures, Security infrastructure, Electronic Security,

Security Audits

Disaster – Cause & Effect

5

Unfinished oils & Blending Components imports

Pumping

Station

Refineries

Imports Exports

Control Centers

Refinery Products Supplied

Meter/ Valve

Pipeline Barge Rail

Crude oil Export

Crude Oil Imports

Domestic Crude Oil

Motor Gasoline

Jet Fuel

Others

Residual Fuel Oil

Liquefied Petroleum

A

A

A

High Priority

Medium Priority

Low Priority

•Prevent asset loss or damage•A safe & secure workplace•Protect from liability•Threat deterrent – risk avoidance•Business continuity•Corporate Governance – Responsible Care•Regulatory•Productivity improvements

•Security preparedness, audit and training•Security Operations & Management•Employee, Contractor, Visitor Movement Control•Vessel movement link with personnel movements•Mustering and Evacuation•Crisis Management•Alarm Management•Remote Surveillance•Custom reports•Safety and HR applications

Oil Security Needs

6

June 29, 1979 Mobil Oil Refinery in Paulsboro, NJ

DOW Chemicals -- security PolicyChemical Plant Security is and has always been a central priority for Dow.Even predating the 9/11 attacks, Dow maintained and complied

with a self-imposed comprehensive security program designed to protectour plants, employees and communities world-wide. Since the attacks, we permanently heightened the level of security at all Dow facilities for

the long-term by investing millions of dollars in security upgrades. We have also driven the creation and adoption of rigorous industry-wide security standards that we adhere to uncompromisingly and proudly state publicly. \Nothing is more important to us than safeguarding our communities and our people.

Plant Security Policies/Objectives

SHELL -- Security Policy

The objectives of this standard are to contribute to:

     Creating a secure business environment. 

·     Minimising economic losses and business disruption.

Safeguarding the Group's integrity and reputation.  

Security policy -Australia: The United Kingdom is a major partner for Australia on foreign policy and security issues.Australia adopted a new counter terrorism alert code on June 11, 2003, with the introduction of four alert levels to replace the existing three-level system. An Aviation Transport Security Bill introduced in to Parliament in 2003 provides a foundation for an overhaul of the aviation security policy framework.

Security Policy -- Korea:

 Specific regulations and enforcement measures were also established under supplementary laws.

 There are no major market barriers to import foreign safety and security systems into Korea. 

However, some systems for security/safety equipment must pass applicable tests mandated

by the relevant Korean agencies. 

Exxon Mobil -- Security Policy:Steps were taken to enhance the effectiveness of Corporate Global Security

Department to further clarify the roles and responsibilities of business-unit

management and to integrate systematic approach to security into OIMS.

In addition, security managers actively participate on the American Petroleum

Institute and American Chemistry Council security committees, which work in

concert with the U.S. Department of Homeland Security to develop risk-

management methodologies, threat-assessment capabilities, and

technical security applications.Improvements such as additional access-control systems, sensors,

cameras, and video are being installed at many sites. launched a campaign

to increase the security awareness of all company personnel, to

promote the message that “Security Is Everybody’s Business.”

7

Security Cycle

Incident

An

aly

se

Ris

k

Imp

lem

en

t D

ete

rre

nts

Re

du

ce Im

pac

t

Re

sp

on

d

Effe

ctive

ly

Re

co

ve

r Qu

ickly

Fin

d P

erpe

trato

rs

Pro

sec

ute

Su

cce

ssfu

lly

Prevention Incident Response

Protection vs. Response

An

aly

se

Ass

ets

, A

ss

ess

Th

rea

ts,

Iden

tify

Vu

lner

ab

iliti

es

8

Security partners to leading corporations– Indian Oil– ONGC– Hindustan Petroleum– Reliance Industries– Exxon-Mobil– Dow Chemical– Saudi Aramco– Qatar Petroleum– BHP-Billiton– Johnson & Johnson– US Petroleum Reserve– Dubai Int. Airport

– Woodside– US DoD– Indian MoD– Perth Rail– Sydney Airport– Hyderabad Airport– Shell– Alcoa– Caspian Pipeline– Port of San Juan– US Naval Ports– Spanish Nuclear– China Nuclear

9

Honeywell Value

Honeywell provides security automation solutions and services to mitigate risks in customers business. Our expertise has been built by our work in mission critical sectors like industrial, nuclear, casino, airports etc. around the world. We understand customer’s business and security environment.

Honeywell offers

Design, assistance in security planning and risk assessments

Global project management, execution, & service

Design, Engineering and Program management services

Lifecycle services, operation support, training

Automation Solutions covering major security applications like Surveillance, Access, Tracking, Mustering, Guarding, Visitor Response, Crisis Management etc.

Leading edge technologies for Radar, CCTV, Access Control, Perimeter, Biometric, Marine and Land Barriers etc.

10

Platforms - ExampleONGC, India

ONGC Oil & Natural Gas Corporation – A

hydrocarbon exploration corporation

Activities in western India offshore area in The Arabian Sea, around 20000 onshore & offshore employees

Critical, High Risk Installations like Offshore Platforms – 10 Rigs, 12 Main Process platforms, 130 unmanned platforms

Requirement Personnel Verification, Time Logging & Movement

Tracking with Biometrics to eliminate any unauthorised entry to the platform

The Solution A complete Smart Card and Biometric System

reporting to Customized Software. The Readers located at 5 Onshore locations, 12 Offshore Platforms, 10 Offshore Rigs

The Highlights of Solution The Access Control System Integrates multiple

functions including Access Control, Finger Print (Biometric) Reading, Smart Card Reading, Combination Reading, video imaging and ID badging and operations of Turnstiles, Flap Barriers, Boom Barriers.

Future modifications compatibility

Communication to Database over LAN & WAN

Data Redundancy

11

Caspian Pipeline ConsortiumCPC • Caspian Pipeline Consortium(CPC) is

comprised of the Governments of the Russian Federation,the Republic of Kazakhstan,the Sultanate of Oman, along with a consortium of oil producers.CPC has built a 1500 km unitary pipeline exporting crude oil from the Tengiz oil field in Kazakhstan,across Russia to a deep water terminal on the Black sea

Requirement To protect 1500 km pipeline and providing improved

productivity,facilitating total day to day security while providing CPC management with detailed insight as to the physical security of their sites.

The Solution Access Control, intruder detection,CCTV Surveillance and audio

communication subsystems all of which work in tandem through EBI

The Highlights of Solution 2 Redundant EBI systems connected via DSA

Video surveillance and remote intercom at each valve station. Allows central control room operators to supervise technicians visiting remote stations

Utilization of the fibre optic network which runs the length of the pipeline-pumping stations and the marine terminal included. This networking capability eliminates the need for costly coaxial cabling and maximises the flexibility of installation.Cameras can be installed anywhere meeting for tighter security.

The solution supports productivity improvement.

EBI’s three stage alarm handling helps guide them through emergency situations and in-built reporting tools document compliance,devise testing,inspections and maintenance activities

Better protection and management of a particular aspect of pipeline operations,linked together they provide a complete picture of enterprise security.

Oil Pipeline - Example

12

Oil downstream - ExampleIndian Oil, India

IOCL Indian Oil Corporation Limited, India’s

Largest Commercial Enterprise, A fortune 500 Company, and the world’s 17TH largest petroleum Company

Requirements Reduce Vulnerability of the security

infrastructure in view of heightened threats from Terrorists.

Prevent misuse of passes by the visitors & contractors and reduce pilferage/threats

Post Event Analysis

The Solution Design, Supply, Installation,

Commissioning, integration, Guaranteeing and maintenance of integrated access control system.

The Highlights of Solution 5 refineries, 52 Pipeline Locations Covering 7,400 Kms of

Pipeline, 405 Marketing Terminals, Oil Depots, LNG Bottling plants etc.

The Access Control System is a Smart Card & Fingerprint Biometric System and integrates multiple functions including Access Control, Biometric Reading, Alarm Management, Video Imaging, Operation of Turnstiles, Flap Barriers, Vehicle Barriers

13

In Summary

• Safety and security deliver bottomline

• Security starts from a robust plan

• Technology can reduce the risk when implemented as part of a bigger “Security Picture”

• Honeywell understands security needs of India’s Oil sector

• Honeywell can partner with you to reduce risk to your business