Petrotechnics Sakhalin Case Study

WORLD’S LARGEST Vertically Integrated Oil and Gas Project Implements Petrotechnics ‘INTEGRATED SAFE SYSTEM OF WORK’

SEIC Client Profile

Client Needs

R es ults

Sakhalin Energy Investment Company Ltd (SEIC) is the Shell-led operating company for the Sakhalin II project.

The objective of this project was to construct a world class oil and gas infrastructure to manage upstream, midstream and downstream operations from reservoirs in the Sea of Okhotsk, off the east coast of Sakhalin Island, Russia. This project is the world’s largest vertically integrated oil and gas project comprising 3 offshore platforms, onshore and offshore pipelines, an onshore processing facility, a Liquefied Natural Gas (LNG) plant and an oil export terminal, in addition to the necessary infrastructure and utilities to support the operations.

In order to successfully complete the Sakhalin II project and due to the level of complexity involved, SEIC recognized the need to implement a single, standardised business process from the outset.

This process had to promote best practice across the diverse assets, whilst ensuring work would be carried out in a uniform manner.

- Integ rat ed Asset So lut ion

The opportunity to work with SEIC arose through exposure to Petrotechnics Integrated Safe System of Work (ISSOW) solution, Sentinel PRO ®, within Shell in another region. Sentinel PRO ® was recognized by SEIC as having the necessary capabilities to deliver best practice and meet a demanding set of objectives for their work execution requirements.

The key requirement was a solution to focus on safety performance, along with operational effectiveness to provide clear communications from senior management to the frontline.

The solution needed to be capable of transcending cultural and language differences. It was also necessary to provide a transparent audit of work execution that would satisfy both HSE and the main stakeholders.

- Retu rn on invest me nt va lue wa s recog niz ed ba sed on proce ss effect ive ne ss an d un de rlying co mpete nce - Se nti ne l PR O® wa s a cata lyst for ch an ge in Ru ssi an reg ulatio n for pe rm it an d ris k assessm ent proce sse s - Proce ss conforma nce an d reg ulatory co mp lia nce as a by-p rod uct , an d not a drivi ng force, for effect ive wo rk ex ecution bu sin ess proce ss - ISSO W pro vid es a powe rfu l group an d sit e HS E au dit an d co mp lia nce vehicle - Integ rat ed up strea m/LN G

Additionally, the Sakhalin II project needed an enterprise level application built on leading technologies with low cost of deployment and low total cost of ownership.

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te ch nics are a global de m on strat ed th at Petro with wo rld cl ass im plem entatio n pa rtn er l as pe ct s of so lut ion brea dt h an d de pt h in al m an ag em ent int rod uctio n an d ch an ge

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NOTES

Mo likpaq

Bu sin ess Proce ss

Challenges

What We Delivered

Value Delivered

The SEIC facilities are based in the harsh subartic environment in the Russian far east where personnel have to deal with the possibility of seismic activity, 10ft snow drifts and extreme temperatures.

Working alongside the Sakhalin II Operations Readiness Team, the purpose was to define and roll out optimal business processes in order to develop an effective way of managing and operating the diverse assets.

This involved an initial implementation of a paper-based system followed by a phased roll out of the electronic system across all Sakhalin II assets.

Petrotechnics implemented a single business process which promotes regional harmonization and best practice across all assets from the platforms offshore, onshore pipeline and processing facilities through to the world-scale LNG producing facility onshore.

Logistical challenges were apparent throughout the training phase.

On occasions, personnel were required to travel distances of over 800km in excess of 14 hours from the producing platforms in the North, to the export terminals in the South in sub-zero temperatures. Delegate availability was subject to weather conditions (on and offshore) resulting in a fluctuation in attendee numbers.

The Sakhalin II project incorporates operational staff from around the globe.

Therefore, a sympathetic approach to individual attitudes had to be adopted.

This ensured diverse cultures and languages such as Russian, Korean and Turkish were successfully introduced to the system. Both Brown and Greenfield sites were included within the scope of work, adding extra complexity to the already challenging work scope.

As a result of the complexity of the Russian regulatory environment, particular time and care had to be taken to ensure that Sentinel PRO ® complied with legislative standards.

This two-step phasing ensured all assets were using the same business process from the outset, whilst a rapid transition to the electronic system was undertaken in a highly controlled manner.

A readiness study was conducted to understand the challenges and gaps which had to be bridged during deployment. This ensured a successful implementation and guaranteed the project followed best practice change management principles. Findings of the study showed a willingness to adopt this new way of working.

In the pre-operational phase, Petrotechnics ensured personnel could create a permit, risk assessments and isolations control process, all of which complied with both local legislation and Shell’s Group Corporate Guidelines.

Petrotechnics’ solution provides governance and assurance at all levels within the organization on how work is carried out at the frontline.

The Sakhalin II project resulted in a strong client relationship with commitment and ongoing support from SEIC leadership. Sentinel PRO ® catered for the cultural and linguistic differences faced by senior management and stakeholders through to the frontline workforce.

Training on Sentinel PRO ® was delivered to over 1500 delegates, across 3 levels of authority in both Russian and English.

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Sakhalin II was the first multi-stream integrated Shell operation to adopt a common business process and method of working supported by Sentinel PRO®.

The complexity of the project led to the system being introduced to all phases of the project life cycle, from the construction and commissioning phase through the hand over and into operations and maintenance.

Sa kh alin

O ve rcom in g th e m a ny u ni qu e ch a lle ng es su rrou n din g th e Proj ect ha s born e te Sa kh a lin st im on y to th e prof ession a lis m a n d cl worki ng re lation ship os e s esta blis hed bet w ee n S EIC a n d Pet rote ch nics

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* About Petrotechnics

Petrotechnics is transforming the efficiency and effectiveness of frontline operations across the oil and gas industry.

Sentinel PRO® is the leading global solution which fundamentally shifts the approach to planning and integration of all aspects of frontline work; giving real control and assurance of work activities. Petrotechnics has become the Control of Work best practice in many of the top energy companies. Globally, Petrotechnics award winning Sentinel PRO ® solution is improving productivity and enhancing workforce safety at 276 sites, across 19 countries spanning 5 continents, safeguarding over 50,000 personnel.

Petrotechnics Ltd Petrotechnics USA Inc

For more information please contact Aimee Tennant + 44 (0) 1224 337258 or aimee.tennant@petrotechnics.com

P + 44 (0) 1224 337200 P + 1 713 856 3300 E bd@petrotechnics.com W www.petrotechnics.com