Effective Sep-13
Petroleum Development Oman L.L.C.
Operation of Surface Product Flow Assets – Code of Practice
Document ID / CP-115Document Type / Code of Practice
Security / Unrestricted
Discipline / Surface Production
Owner / Engineering and Operations Director - UEOD
Issue Date / 16th September 2013
Revision / 8.0
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i Document Authorisation
Authorised For Issue – 16th September 2013
ii Revision History
The following is a brief summary of the 4 most recent revisions to this document. Details of all revisions prior to these are held on file by the issuing department.
Revision No. / Date / Author / Scope / Remarks8.0 / Aug-13 / Robin Norman UOP61 / 3 yearly review (Review period to be increased to 5 years).
DCAF and Critical Documentation requirements added
7.0 / Mar-10 / Robin Norman UOP6 / Full review / revision and reformat.
6.0 / Dec 06 / Mafiana, Ikechukwu (UOP/2) / Issue for use after comments update.
6.0 / Jun 06 / Abdullah
Al-Abri (UOP/1) / Update to align with:
· New Operating Model,
· Global Processes
· Minimum Standards
· EPBM 4.0
5.0 / Dec 03 / A. Al-Abri (UOX/2) / Concurrent Operations reference included. Deferment Minimum Standard
iii Related Business Processes
Code / Business Process (EPBM 4.0)EP.64 / Design, Construct, Modify and Decommission Facilities
EP.65 / Execute Operations Readiness & Assurance Activities
EP.72 / Maintain & Assure Facilities Integrity
EP.80 / Manage Abandonment
iv Related Corporate Management Frame Work (CMF) Documents
The related CMF Documents can be retrieved from the CMF Business Control Portal and are listed in Appendix 4
Table of Contents
1 Introduction 7
1.1 Scope 7
1.2 Objectives 7
1.3 Applicability 7
1.4 Document Implementation and Deviation 8
1.5 Review and Improvement 8
2 Operations Management of Surface Product Flow Assets 9
2.1 PL-11 Asset Integrity and Disposal Policy 9
2.2 Corporate Asset Integrity Vision 9
2.3 The Operations Vision 9
2.4 The Operations Strategy 9
2.5 Operations Management Objectives 10
2.6 Operations Management Requirements 10
2.7 Aligned Operations Management Processes 10
3 Operations Lifecycle Management 11
3.1 Scope 11
3.2 Projects 11
3.3 Field Operations 12
3.3.1 Asset Reference Plan 12
3.3.2 Statement of Fitness (SoF) 12
3.3.3 Discipline Control and Assurance Framework (DCAF) 12
3.3.4 Procedures and Manuals 13
3.3.5 Critical Documentation 13
3.3.6 Operator Routines and Handover 14
3.3.7 Permit to Work System 15
3.3.8 Process Equipment Isolation 15
3.3.9 Working on Systems or Equipment with Hydrocarbon or Toxic Risks 15
3.3.10 Scaffolding and Lifting 16
3.3.11 Temporary Registers and Controls 16
3.3.12 Management of Alarms 17
3.3.13 Crude Oil Export Operations 17
3.4 Integrated Activity Planning and Shutdown Management 18
3.5 Programming and Hydrocarbon Allocation 19
3.6 Management of Change 20
3.7 Abandonment and Restoration 21
3.7.1 Fixed Assets 21
3.7.2 Abandonment and Restoration 21
3.8 Simultaneous and Concurrent Operations 21
3.9 Operations Emergency Response 21
3.10 Skillpool Management 22
3.10.1 Competence Assessment and Assurance 22
3.10.2 Engineers Monitored Professional Development Scheme (EMPDS) 22
3.10.3 Competency Based Development and Progression 22
4 Accountabilities and Responsibilities 23
5 Audit and Review 27
5.1 Corporate Level Audits and Reviews 27
5.2 Functional / Discipline Audits and Reviews 27
5.3 Asset Director (Line) Audits and Reviews 27
5.4 AI PS Assurance Audit 27
Appendix 1 – Glossary of Terms, Definitions and Abbreviations 28
Appendix 2 – Critical Documentation List 29
Appendix 3 – EPBMS Process Flow Charts 34
Appendix 4 – Documents Referenced in CoP 36
1 Introduction
1.1 Scope
This Code of Practice defines the Strategies and Controls that need to be implemented in PDO to ensure safe and effective Operation of Surface Product Flow Assets.
Effective Operations hinges on three main themes: Process, People and Documentation. The integrity of the plant is captured in CP-114 - Maintenance & Integrity Management Code of Practice.
The process is the operation of the integrated product flow assets and associated safeguarding systems within defined operating envelopes. Supporting the process is the need for the correct organisational structure with competent people who are capable of performing their job roles effectively and who are fully aware of their accountabilities, authorities and responsibilities. In addition, these people need effective and current documentation to assist them to carry out operational activities in a controlled, consistent and structured manner.
This Code of Practice makes reference to the Operations Excellence in Production Standard and is aligned to the process. The documentation required to operate the Surface Production Facilities in line with the above standard will be sourced from PDO and LiveLink or the Shell web.
Each discipline will have a standard which will list decisions and deliverables that it will contribute to the Operations Phase and the authority level required to sign that off. This will be in accordance with the Discipline Controls and Assurance Framework (DCAF) application.
1.2 Objectives
The purpose of this Code of Practice is to specify the processes and controls necessary to ensure effective Operation Management of all installed assets over their Lifecycle. Effective Operation management shall demonstrate compliance with relevant statutory requirements, PDO Standards and Procedures, and verification requirements.
1.3 Applicability
This Code of Practice is principally applicable to:
- Area Operations Teams;
Operations Managers.
Delivery Team Leaders.
Production Coordinators.
Production Supervisors.
- Production Strategy & Support.
- Programming.
- Integrated Activity Planning.
- Corporate Discipline Functional Heads (CDFH) and Corporate Discipline Focal Points (CDFP)
The secondary target audience are certain members of the Production Support teams and Service Providers, the Petroleum Engineering and Field Engineering teams.
1.4 Document Implementation and Deviation
Section 4 identifies the Accountabilities and Responsibilities for implementation of the requirements of the Code of Practice.
Deviation from this Code of Practice must be approved by the Functional Production Manager (UOP) and authorised by Engineering and Operations Director (UEOD).
1.5 Review and Improvement
This Code of Practice is owned (document authority) by the Engineering and Operations Director (UEOD) and shall be reviewed and updated on a regular basis (minimum every 5 years).
The Functional Production Manager (UOP) shall be the Custodian and is responsible for the content and upkeep of the Code of Practice. Feedback and change requests shall be addressed to the Functional Production Manager or his delegate. Approved changes shall be incorporated immediately or at the next scheduled update depending on criticality.
2 Operations Management of Surface Product Flow Assets
2.1 PL-11 Asset Integrity and Disposal Policy
It is PDO policy that:
· Facilities and wells shall be designed, operated and maintained in a manner that safeguards their integrity and ensures their planned availability throughout their life-cycle;
· Redundant assets shall be written off and removed where appropriate and the environment restored to, or as reasonably practicable to, it’s original state within an agreed time-frame;
The impact of this policy is that our assets will be operated as intended, within their design envelope, and will be disposed of with due regard to environmental and economic considerations.
The objective of this policy is to:
· Ensure that physical assets have design integrity that is based on fit for purpose performance standards;
· The designed technical integrity is maintained throughout the Lifecycle up to and including abandonment;
· Redundant assets are approved for write-off, disposed of as appropriate and financial records updated accordingly;
This CoP has been developed to provide a framework to ensure adherence to the above policy.
2.2 Corporate Asset Integrity Vision
The PDO Asset Integrity Vision is:-
“Our assets are safe and we know it”
For Operations this means that through correct operation and with competent trained personnel, and by following clear rules and procedures we will ensure that our assets are operated safely and produce at design capacities to meet Production Targets.
2.3 The Operations Vision
: “Our vision is that by 2020 PDO will be Oman’s most competitive full-life operator of choice, delivering our production safely, at the highest technical capacity and lowest unit cost.”
2.4 The Operations Strategy
The Operations Strategy (delivering the Vision), contains six high-level themes and objectives:
1. People: We will invest in building a fully capable workforce with a strong talent pipeline.
2. Production: We will produce at the highest possible technical capacity.
3. Efficiency: We will achieve best in class process and cost efficiency.
4. Safety: We will strive to achieve Goal Zero in Operations, including no major process safety incidents.
5. Learning organisation: We will routinely measure ourselves against the best and learn from them.
6. Partners: We will be supported by highly effective and efficient delivery from the wider PDO organization.
The proposed program is extensive, covering all aspects of the Operations value stream, from capability building to performance management; from embedding Lean to Supply Chain Management improvements.
2.5 Operations Management Objectives
The objectives of Operations Management in PDO are to:
· Safeguard and demonstrate operating and technical integrity of the assets;
· Optimise resources and costs involved with operating activities;
· Support the Field Operations;
PDO is aligned with the Shell Exploration and Production Operational Excellence Standard and Production Engineering Global Skillpool Strategy.
The following processes will be applicable to this Code of Practice.
- Unscheduled Deferment, ORIP and RCA;
- Hydrocarbon Production Information Management;
- Programming;
- Field Operations;
- Real Time Operations;
- Forecasting;
2.6 Operations Management Requirements
Each Asset shall assure that;
· Asset Reference Plan is in place;
· Program Build is in place;
· Production Operation strategies are linked to the Program Build;
· Production Operation activities are adequately budgeted and covered by Operational Expenditure (OPEX);
· Production Operations standards, procedures and controls are owned by the appropriate Technical Authority (TA) as specified in DCAF / Asset Control and Assurance Lists (ACAL) and are available to all site personnel;
· A review and improvement process is in place which will deliver optimised production operations goals;
· The IPP and the IAP are aligned at all times;
2.7 Aligned Operations Management Processes
PDO is aligned to the following Shell EP Business Model (EPBM) Processes relevant to Production Operations:
· EP.71 Produce Hydrocarbons;
· EP.65 Execute Operations Readiness & Assurance Activities;
· EP.80 Manage Abandonment;
3 Operations Lifecycle Management
3.1 Scope
This Code of Practice (CoP) covers the requirements to assure effective Operations throughout the Lifecycle of Surface Product Flow Assets within the Oil and Gas Directorates.
Health, Safety and Environmental requirements shall be fully integrated in the way Operations Management is executed and are a prerequisite before any process or activity can be undertaken.
The CoP shall cover the processes required for “surface flow assets”, sub-surface and wells being covered by CP-125 - Petroleum Engineering Management – CoP and CP-118 - Well Lifecycle Integrity CoP.
Operations Management will be required throughout the lifecycle of the Asset. Documentation and Processes will require to be implemented to ensure safe and effective operations can be maintained and delivery targets met.
3.2 Projects
Projects shall be executed in accordance with CP-117 – Project Engineering Code of Practice and are contracted to provide key documentation and processes as part of the “Project Deliverables”.
Operations personnel will be an integral part of the Project Team and implement the Operations Readiness and Assurance processes to ensure the asset is delivered in accordance with all operational requirements.
The key requirements for this CoP are Operations Philosophy, Field Development Plan, Program Build, the Operations Management System and Critical Documentation (refer to Operational Excellence in Production Vol. 2 - The Production Standard and PR-1666 – Engineering and Operations Document, Drawing and Data Control Procedure.). Critical documentation and systems shall be developed or updated during the project and form part of the Critical Deliverables.
Critical Deliverables shall be included in the Project’s Control and Assurance Plan (PCAP) and managed through PDO DCAF system.
Variance to Design and Standards during the Project Phases shall be managed in accordance with the Project Management of Change Procedure.
The following links will provide assistance to understanding and meeting the requirements for the above:
· Operations Philosophy;
· CP-117 – Project engineering CoP;
· CP-206 – Management of Change CoP;
· SP-2061 - Technical Authority System;
· PR-1247 - Project Management of Change Procedure;
· PR-1612 – Operations Readiness;
· PR-1666 – Engineering and Operations Document, Drawing and Data Control Procedure;
· Operations Management System (OMS):
· OMS Guidelines;
· OMS Outline (Presentation);
· Operations Support Documentation;
3.3 Field Operations
Processes and procedures shall be put in place or adopted that shall ensure safe and effective operation of the Asset.
Surface Production Operations are responsible for the overall coordination of the safe execution of daily operations, major maintenance, minor projects or well interventions. Ensuring work sites are safely managed in terms of HSSE and operating integrity is key to the success of field operations.
Operating Integrity is the “paying attention process” without which efficient safe field operations will never be achieved. Operators must understand and know their operating limits and stay within them at all times. The assignment of a system owner for each segment of the integrated production system, with responsibility for operating integrity in their segment, is essential.
Production operations shall be aligned with Blade 24 of the Operational Excellence Standard – Field Operations.
3.3.1 Asset Reference Plan
The Asset Reference Plan (ARP) is the principal management tool by which Assets are effectively and efficiently managed throughout their life. The ARP shall be routinely updated, with awareness of the key business drivers that will optimise output, and maximising the best use and value of limited resources locally and globally in order to maximise the value of the Asset.