Look before you leap: are your oil patch liability clauses enforceable?: (An analysis under civil law jurisdictions with emphasis on Brazil)

2021 ◽  
Author(s):  
Norman Nadorff ◽  
Maria Beatriz Gomes
Keyword(s):  
Human Error ◽  
Oil And Gas ◽  
Common Law ◽  
Civil Law ◽  
Normal Fault ◽  
Oil And Gas Industry ◽  
Mitigation Strategies ◽  
Policy Implications ◽  
Gas Industry ◽  
Environmental Integrity

Abstract The oil and gas industry requires huge investments involving extraordinary financial, environmental and safety risks. Dramatic images of the Deepwater Horizon (Gulf of Mexico, 2010), Alpha Piper (Scotland, 1988), P-51 (Brazil, 2001) and Campeche (Mexico, 1979) disasters offer chilling reminders of the monumental loss of life, property and environmental integrity that can quickly result from human error. With this backdrop, industry participants and their insurers learned early on that the normal fault-based approach to wellsite liability did not fit the nature and needs of the petroleum business. This article analyzes the risks inherent in applying the laws of a civil law jurisdiction to an oil and gas wellsite contract based on common law principles, with special emphasis on Brazil. It first briefly describes the traditional common law approach to liability allocation in wellsite contracts, including “knock-for-knock” principles (“K4K”). Next, it outlines the traditional civil law approach to liability (responsbilité) through French and Brazilian prisms. The authors do not deeply discuss the pros and cons of K4K clauses nor the policy implications of anti-indemnity statutes. Rather, they assume the reader is contemplating the negotiation of a wellsite services contract subject to the laws of a civil law jurisdiction, and describe the relevant risks and possible mitigation strategies.

Revisiting the FPSO São Mateus Accident From a Human Reliability Perspective Using Phoenix HRA Methodology

2020 ◽  
Author(s):  
Marilia A. Ramos ◽  
Alex Almeida ◽  
Marcelo R. Martins
Keyword(s):  
Human Error ◽  
Oil And Gas ◽  
Risk Estimation ◽  
Petroleum Industry ◽  
Oil And Gas Industry ◽  
Qualitative Assessment ◽  
Human Reliability ◽  
Human Reliability Analysis ◽  
Human Errors ◽  
Gas Industry

Abstract Several incidents in the offshore oil and gas industry have human errors among core events in incident sequence. Nonetheless, human error probabilities are frequently neglected by offshore risk estimation. Human Reliability Analysis (HRA) allows human failures to be assessed both qualitatively and quantitatively. In the petroleum industry, HRA is usually applied using generic methods developed for other types of operation. Yet, those may not sufficiently represent the particularities of the oil and gas industry. Phoenix is a model-based HRA method, designed to address limitations of other HRA methods. Its qualitative framework consists of three layers of analysis composed by a Crew Response Tree, a human response model, and a causal model. This paper applies a version of Phoenix, the Phoenix for Petroleum Refining Operations (Phoenix-PRO), to perform a qualitative assessment of human errors in the CDSM explosion. The CDSM was a FPSO designed to produce natural gas and oil to Petrobras in Brazil. On 2015 an explosion occurred leading to nine fatalities. Analyses of this accident have indicated a strong contribution of human errors. In addition to the application of the method, this paper discusses its suitability for offshore operations HRA analyses.

scholarly journals Modernizing the Property Laws That Bind Us: Challenging Traditional Property Law Concepts Unsuited to the Realities of the Oil and Gas Industry

2003 ◽  
Vol 41 (1) ◽  
pp. 159
Author(s):  
Alicia K. Quesnel
Keyword(s):  
Oil And Gas ◽  
Common Law ◽  
Oil And Gas Industry ◽  
Property Law ◽  
Gas Industry ◽  
Strict Interpretation ◽  
The Common

Practitioners deal primarily with two different methods of interpretation in oil and gas cases: the strict method of interpretation and the liberal method of interpretation. However, in recent decisions such as Bank of Montreal v. Dynex Petroleum and Taylor v. Scurry-Rainbow Oil, the courts refused to apply the common law, instead upholding long-standing industry practices that could not be easily classified into proper legal categories. Following a review of the strict interpretation and liberal interpretation methodologies currently used in interpreting oil and gas cases, this article looks more closely at the method of interpretation used by the courts in Dynex and Taylor. This method of interpretation will be referred to as the challenging method of interpretation. The article discusses the key analytical aspects of the challenging method interpretation, and examines its possible impact on the existing methods of interpretation used in oil and gas cases. Finally, this article concludes with some thoughts about the implications of these cases on oil and gas law.

Smashing the stigma in mental health – a strategic blueprint for change

2020 ◽  
Vol 60 (1) ◽  
pp. 10
Author(s):  
Anna Feringa ◽  
Nada Wentzel
Keyword(s):  
Mental Health ◽  
Human Error ◽  
Oil And Gas ◽  
Working Hours ◽  
Oil And Gas Industry ◽  
Integrated Approach ◽  
Mental Health Issue ◽  
Gas Industry ◽  
Strategic Approach ◽  
Safety Cultures

The oil and gas industry is known for its strong commitment to safety which often focuses on process safety, physical safety and behaviour, with little attention to mental health. Mental health is a growing issue. It impacts decision making, increases the likelihood of human error which can result in the loss of lives and environmental destruction. If not addressed properly, it can cause excessive stress, anxiety, depression, trauma or even suicide. Mental health is one of the biggest risks to the oil and gas industry today. Research shows that one in five workers suffer from a mental health issue at some point in time during their lives. Experts believe these statistics are higher for workers in the oil and gas industry due to the nature of the work – long working hours, isolation, being away from friends and family, feeling under high pressure to avoid mistakes due to the potentially devastating consequences and being a male dominated industry. Investment in mental health is currently often limited to Employee Assist Programs, RUOK days or wellbeing initiatives. What is needed is a total strategic and integrated approach which organisations can customise to their specific needs, distinct from a series of individual initiatives. By learning from leading practices, other industries and extending experience from building effective safety cultures within the oil and gas industry to mental health, a total strategic approach is presented which will enable organisations build their own customised blueprint and smash the stigma surrounding mental health.

Catastrophic Events and Human Error: A Few Rotten Apples or Organizational Dysfunction?

2021 ◽  
Author(s):  
Peter Vincent Bridle
Keyword(s):  
Human Error ◽  
Oil And Gas ◽  
Wide Spectrum ◽  
Oil And Gas Industry ◽  
Operating Conditions ◽  
Oil Field ◽  
Gas Industry ◽  
Oil And Gas Producers ◽  
The North ◽  
The Uk

Abstract In July 2021, commemorations will be held to mark the 33 years since the 1988 Piper Alpha tragedy in the UK sector of the North Sea where 167 oil field workers lost their lives. Without question, the incident was a watershed event for the international oil and gas industry not simply because of the immediate toll in human lives lost, but also in terms of the devasting aftermath endured by countless friends, families and loved ones whose lives were forever changed. The tragedy also served to illustrate just how poorly the oil and gas industry really understood and managed those operating risks that possessed the potential for catastrophic loss, both in terms of business cost and overall reputational impact. In the wake of the public enquiry that followed and chaired by Lord Cullen of Whitekirk, one of the principal recommendations required that the international oil and gas industry do a much better job in determining both its major hazards (i.e. major operating risks) and also in creating the necessary operating conditions to demonstrate that such things were being well managed. The objective being to provide tangible assurance that the likelihood of the industry ever incurring such a calamitous event again in the future had been reduced to as low as reasonably practicable (ALARP). In taking its responsibilities very seriously, the international oil and gas industry responded by raising the profile of the management of Health, Safety and the Environment (HSE) across the wide spectrum of its global operations. By the mid-nineties, the industry had implemented comprehensive and structured systems of work within the framework of purposely built HSE Management Systems using templates designed and developed for the industry via the International Oil and Gas Producers (IOGP)*.

Situation Awareness Offshore: Relevant Influencing Factors and Risks

2017 ◽  
Vol 61 (1) ◽  
pp. 1700-1701
Author(s):  
W. Sloane Hoyle ◽  
S. Camille Peres
Keyword(s):  
Risk Perception ◽  
Human Factors ◽  
Influencing Factors ◽  
Situation Awareness ◽  
Human Error ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Human Machine Interaction ◽  
Gas Industry ◽  
Offshore Operations

Offshore operations are an inherently hazardous activities that can result in catastrophic outcomes. The amalgamation of different hazards, constraints, and demands on offshore platforms can presents a substantial threat to the performance, productivity, and safety of workers. For most industrial accidents, there is a causal chain between human errors and organizational conditions. An investigation into the Macondo incident identified failures of situation awareness (SA) and risk perception as root causes of the disaster. Improving worker SA has become an important objective for the Oil and Gas industry. SA is a distinct, safety critical component for workers operating in complex, high-risk, and interactive work environments. Possession and maintenance of good quality SA is important for personnel whose work can be hazardous, complex, and pressured by time constraints. The drilling environment can change suddenly and for a drill crew, with an improper decision or inattention, the end result can be loss of life, severe injury, and cost millions of dollars in production loss. Offshore workers need to acquire and integrate information under operational conditions while contending with competing sources of information for their attention. SA can serve as a predictor of performance and has been particularly important where technical and situational complexity impacts the decision making efforts of the driller. A scoping literature review was conducted in order to identify how the influencing factors of elements of human factors on personnel and environmental safety, operational costs, and loss of time. Numerous databases were searched (e.g., EBSCOhost, Medline, PsychInfo, Science Direct) in combination other databases search using key terms: human factors or ergonomics and offshore with all of the following: drilling, production, fatigue, situation awareness, cognitive, oil and gas, as well as a search for human factors offshore and ergonomics offshore and human error offshore. Finally, our primary studies search was supplemented with a search of papers and abstracts within conferences. The fields of interest included stress, fatigue, interface design, human machine interaction, automation, safety culture and safety climate, risk perception and awareness. The purpose of this research was to present a summary of the current literature on the status of the oil and gas industry with regard to the adoption and integration of Human Factors methods, principles, and processes. Specific objectives were to summarize the state of the science regarding situation awareness for offshore operations, understand the importance of situation awareness for this environment, and determine key influencing factors that could affect drillers’ performance.

Preventing Human Error in Crane Operations: A Case Study of Organizational and Design Elements

2017 ◽  
Vol 61 (1) ◽  
pp. 1695-1699
Author(s):  
Jiun-Yin Jian ◽  
Gerry E. Miller ◽  
Sahil Shah
Keyword(s):  
Human Factors ◽  
Human Error ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
3D Models ◽  
American Petroleum Institute ◽  
Gas Industry ◽  
Design Elements ◽  
Offshore Crane ◽  
Blind Spots

Between 2009 and 2016, 57 offshore crane-related incidents in the process industry resulted in numerous injuries and fatalities in the Gulf of Mexico region (Bureau of Safety and Environmental Enforcement, 2017) with estimated cost over 3.5 million US dollars. For this reason, crane incidents continue to be a major focus and of oil and gas industry concern. Despite the large progress made with crane technology and regulation (American Petroleum Institute, 2013, 2014), operators and workers remain exposed to risks due to inadequate consideration of human factors in design. This desk-based evaluation was conducted to address the human factors related to crane operations with a detailed focus on cabin display and control arrangements, identification of blind spots, safe lifting practices, and compliance with regulatory requirements. It was found that the one configuration of the two-lever controls recommended by API 2C was conducive to causing human error, and that a rearrangement of the labeling and color-coding could increase readability and legibility to the operator. A modification to this arrangement is recommended in order to further prevent exposures to crane hazards stemming from human error. In addition, the operator’s field of view (FOV) or line of sight (LOS) was simulated using schematics, 3D models, and anthropometric data in order to identify blind spots during lifting and lowering activities. This strategy can be implemented in the preparation of lift plans which will subsequently facilitate adequate communication between the operator and flagman during blind lifts.

scholarly journals Legal Liability in the Canadian Arctic Relating to Oil Spills and Blowouts

1972 ◽  
Vol 10 (3) ◽  
pp. 440
Author(s):  
D. E. Lewis, Q.C.
Keyword(s):  
Oil And Gas ◽  
Oil Spills ◽  
Common Law ◽  
Canadian Arctic ◽  
Oil And Gas Industry ◽  
Legal Liability ◽  
The Arctic ◽  
Property Damage ◽  
Gas Industry

There is an ever-increasing concern in today's society about problems arising from pollution, but issues of liability for and prevention of pollution in the Arctic are particularly acute. This article discusses the pollution problems of the oil and gas industry in the Arctic with respect to liability for oil spills and blowouts. The article considers possible common law and statutory liability for personal injuries and property damage caused by blowouts and oil spills that may occur both on and off shore. The article concludes with) discussion of the special problems of foreseeability of damage in the Arctic.

scholarly journals Delay Impact of COVID-19 Pandemic on Malaysia's Oil and Gas Projects

2021 ◽  
Vol 9 (4) ◽  
Author(s):  
Hissein Djibrine Abdelrassoul ◽  
Zulhasni Bin Abdul Rahim
Keyword(s):  
Oil And Gas ◽  
Movement Control ◽  
Oil And Gas Industry ◽  
Mitigation Strategies ◽  
Mitigation Measures ◽  
Gas Industry ◽  
Importance Index ◽  
Essential Services ◽  
Information Delay ◽  
Control Order

COVID-19 pandemic has extremely affected people and businesses around the world. Oil and gas industry are not exempted, and negatively impacted by the unprecedent crisis of COVID-19. This pandemic has also caused delays in the oil and gas projects. In an attempt to control the spread of COVID-19, Malaysian government has introduced Movement Control Order (MCO) in the whole country to be closed and lockdown all premises except essential services to operate. This has resulted major delays in the project execution. Researchers have conducted studies to identify factors that causing project delays. Approximately 75 delay factors were found from previous studies and it revealed that most delay factors were not caused by COVID-19. In the current research, the delay factors due to COVID-19 were identified and some delay factors were found to have similarity with literature. Additionally, interview sessions were organized with oil and gas professionals involving in the oil and gas industry. Delay factors due to COVID-19 and mitigation strategies were identified from the interview sessions. Moreover, this result has used in the designing of survey questionnaire and distributed to project practitioners working in the oil and gas industry in Malaysia. 110 Oil and gas professionals include 52 Clients, 25 consultants, 23 contractors, 5 subcontractors and 5 vendors/suppliers have participated in the survey. Data collected from survey was analyzed and interpreted by means of median and Relative Importance Index (RII). Based on this information, delay factors and mitigation strategies were ranked according to their importance and impact to project. It is observed that the higher value of the RII the more critical cause or impact factor. Top seven (7) delay factors were identified and top seven (7) mitigation measures were proposed as recommendations for future implementation in the oil and gas project.

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