PREPARATION AND IMPLEMENTATION OF A SAFETY MANAGEMENT SYSTEM IN BHPP

Abstract

BHP is a leading global resources company which comprises four main business groups: BHP Copper, BHP Minerals, BHP Steel and BHP Petroleum. BHP Petroleum (BHPP) global operations are divided into four Regions and Australia/Asia Region is responsible for exploration, production, field development and joint ventures in the Asia-Pacific region. In Australia, the Company's largest producing assets are its shares of the Gippsland oil and gas fields in Bass Strait and the North West Shelf project in Western Australia.

BHPP operates three Floating Production, Storage and Offloading (FPSO) vessels-Jabiru Venture, Challis Venture and Skua Venture-in the Timor Sea and one FPSO, the Griffin Venture, in the Southern Carnarvon Basin. Stabilised oil is offloaded from all four FPSOs by means of a floating hose to a shuttle tanker. Gas from the Griffin Venture is compressed and transferred through a submarine pipeline to an onshore gas treatment plant.

BHPP's Asian production comes from the Dai Hung oil field offshore Vietnam where BHPP is the operator and from Kutubu in Papua New Guinea.

In Melbourne, BHPP operates a Methanol Research Plant and produced Australia's first commercial quantities of methanol in October 1994.

BHPP is an extremely active offshore oil and gas explorer and has interests in a number of permits and blocks in the Australian-Indonesian Zone of Co-operation.

This paper discusses BHPP's approach to safety management, both for its worldwide operations and specifically in Australia/Asia Region. It explains how BHPP's worldwide safety management model takes regional regulatory variations into account. It shows, specifically, how this has been done in Australia/Asia Region using what BHPP considers to be a best practice approach.

The paper describes how BHPP Australia/Asia Region benchmarked its performance against other operators in Australia and the North Sea. It explains how the findings of the benchmarking study were used to plan the preparation of a safety management system (SMS). The structure of the SMS is described along with the legal requirements in Australia.

The paper concludes that implementation of the SMS is progressing according to plan and points out that safety cases for the FPSOs have been submitted to the Regulators. Implementation of the SMS and the drive for world class safety standards is having a substantial effect and safety performance is improving. One measure of safety performance, the Lost Time Injury Frequency Rate (LTIFR) is down from around 15 at the end of 1994 to under 3 in December 1996.