QHSE application in Iran’s Oil & Gas

Mehdi Babaei Rostami

HSE Manager

Introduction

Iran is a country possessing one of the greatest oil and gas reserves in the world. Oil & gas is the major industry in Iran and many individuals are involved in this field. Underestimation of QHSE principles in this sector, might come up with intolerable risks and negative consequences against people, assets, environment and reputation of companies.Aiming to reserve preservation; exploration till optimized drilling and production; safe transportation and final refinement, require up-to-date technology as well as reliable management system which ensures practical commitment to apply the highest level of safety & quality.Repetitive incidents with similar root causes during the past years, represent the significant demand to find effective solutions to minimize risks of events.Since the political negotiations between Iran and six world powers reached to an agreement, there is extensive opportunities to establish long term cooperation with interested international parties. To extend mutual relations in oil and gas field, all context, including QHSE subject, must be considered fully.Indeed, a clear strategic policy along with a comprehensive road map, is highly demanded, focusing on improvement of QHSE principles from the conceptual design phase up to end of projects’ life cycle. This policy must formulate an integrated top down approach which can better govern, monitor and support all active organizations within the market. 

QHSE vs Global challenges

Investment in the Country described as “the last gold mine on earth” is favorable for many big players. Although, coming back into this market, will lead to direct effect on extension of HSE principles in a harmonized global manner to face with global challenges;The world has been in challenge with some critical environmental crises such as climate change & global warming which are threatening earth & people’s health. Fossil fuels are playing significant role through this destructive trend. Crude oil components and gas emission result in adverse condition against human life.On the other hand, oil & gas industry is harshly influenced by the huge drop in prices.Unfortunately, corporates’ cost cutting during these low oil price events have contributed to safety programs. Containing overhead and operating costs have led some to take shortcuts which have avoided proper investment in QHSE.To face global & domestic challenges in terms of QHSE issues, planning at national level, should be carry out in a way to overcome the current industry risks as well as the new ones will be appeared through the entrance of new players. In addition, serious steps to be taken toward global citizenship responsibilities in protecting the environment.

QHSE vs Domestic challenges

Oil & gas projects have always been associated with uncertainties & various risks affecting quality, safety, cost & time of each single project in. During the past years, upstream industry in Iran was suffering from the sanctions which had been avoiding new technologies to come into the ground.Lack of access to reliable technologies and absence of known certified bodies, imposed additional problems in terms of safe inherent processes from design till installation phases, then at operation and asset integrity levels.Due to force majeure situation caused by the sanctions, the concentration of local policies aimed to the operation, thus the safety of projects affected in some aspects.Short and long term remedial strategies must be established as a driver to get HSE back to the first priority in the CAPEX and also in the OPEX stage.

How to overcome challenges?

As a directive plan, the oil ministry needs to implement an agile but efficient system to embed safety & quality through the whole active companies.QHSE is believed as a mutual responsibility among involved parties. All organizations must allocate sufficient resources for improving QHSE principles and have to make sure their management systems are capable to maintain the whole operation within acceptable boundaries.It is crucial to strengthen the QHSE atmosphere in the post sanction plans as this will fortify protection of people, country capitals & environment etc. With the help of integration, the operation and value chain can be optimized. Establishment of an efficient & effective integrated mechanism enables the Country to empower its own workforce technically and to develop a strong atmosphere to amplify contractors. Notably, applying this mechanism requires introduction of a National Integrated Management System (NIMS) which covers all companies & organizations within upstream sector;NIMS would be included with Integrated documentation; Integrated operation management system which interacts to support functions; integrated training system; and integrated risk management and auditing system. Furthermore, the new system has to comply international models such as IOGP’s operating management system (OMS). As the result of implementing this dynamic ground, all operations & support functions will feed each other permanently and continuous improvement goals will be traced on a more reliable pace.This mechanism would be a supportive umbrella which to be defined by the highest executive body in Iran’s oil & gas sector.Once all soft features and elements described above, are prepared or revised based upon fit to purpose materials, the leading part of the plan, which is a smart tool to make the whole system, executed, could be applied;Enterprise Resource planning platform, is a tool ensures all elements of the management system are linked together and are being followed properly. Online data gathering & processing, will provide a powerful utility for knowledge management and is a way to merge quality, safety & environmental considerations in all technical & operational affairs. Hence, the quality of services and safety of operations will increase significantly and this will save sufficient time and cost for the national projects.

Way forward

Many of National Oil Companies (NOCs) tend to outsource their services to a range of competent operators and contractors. Hesitating to deal with large amount of unnecessary bureaucratic processes, NOCs are attempting to outsource many of services to their subcontractors but this delegation, requires precise supervision in return.That is where contractor and supplier management would be a critical consideration for all NOCs because of its direct effect on the quality and safety of each single project.So how is this plan could be applied in Iran?As stated earlier, the summary of necessary measures must be included with:1- Generation of new integrated management system based upon up-to-date international models including below fundamentals;o   National governing policieso   Integrated macro H&S and environmental studies; standards, procedures & approved codes for upstream, mid & downstreamo   Integrated training system; competency & career path requirements; incentive planso   Contractor management elements; Contractual responsibilities; Insurance conditionso   Uniform risk management featureo   National petroleum data bank of HSE and operational failures & accidents for the knowledge management purposes; anomaly reporting, formal investigation & communication systemo   Establishment of approved inspection & official audit system 2-  transmission of above steps into an electronics platform which is accessible selectively by all concerned organizations from the ministry down to the subcontractors and even service companies. Conclusively, the national petroleum network will be fed up by all contributors and this real time system will assist the decision makers towards anticipating and reacting to the radical changes on the local and global events.Truly, for oil and gas industry to make headways defined in IPC model, information technology should be used as a strong backbone to the industry.Moreover, this comprehensive normative and regulatory framework, will foster leadership and results in obtaining higher level of safety; sustainable development; and commitment to social responsibilities in oil industry.Finally, this solution will result in organizational maturity in Iran oil & gas sector & will lead the industry towards continuous improvement mainly regarding QHSE principles, in post sanction epoch.