MILLER DECOMMISSIONING PROJECTSt Andrews

NOVEMBER 2018

JIM BLACKLAWSDecommissioning project manager - BP

Project scope and deliverySix months removal preparation15 heavy lifts in totalThree extended lifts over 150 nautical miles each

TOPSIDES• 28,200 tonnes of topside modules removed• 12 topside lifts (including two extended lifts)• Six weeks to complete removal

JACKET• 11,500-tonne jacket removed• Extended jacket lift from field to shore• Three inshore lifts• Two weeks offshore and three weeks onshore for removal

Working safelyAs a project we:

• Aligned worked to the Safety Case• Agreed detailed job cards based on a detailed photographic survey• Created robust Control of Work processes, including active site monitoring• Encouraged safety reps, participation in Safety Observation System and feedback• Implemented active self-verification and oversight plans• “Made Safe” every time we returned to the installation

All in service of achieving the safe execution of a complex project

The results speak volumes:

• Circa 400,000 work hours• No high potential events• No days away from work cases

Delivering on timeAgreeing the schedule and sticking to it

• August 2016: Duty holder contract awarded and transition to duty holder model• November 2016: Engineer, prepare, remove, disposal (EPRD) contract awarded• February 2017 – August 2017: Offshore preparation activity• August 2017: Miller moved to normally unmanned installation (NUI) status• July 2018: Offshore heavy lift campaigns complete• Ongoing (to 2020): Onshore demolition and recycling activities

Achieved by:

• Finding the right solution at every step of the way• Deploying world-class engineering techniques and technologies• Early intervention and resolution of issues to maintain fast-pace of project• One team focused on a single mission

A competitive projectAn innovative project with many industry-firstsDelivering a cost-effective solutionResetting the bar for future North Sea decommissioning activity

How was this achieved?

• Early market engagement to realise best cost• Collaboration to reach common goal and deliver results on time and on budget• Innovation to push the boundaries and reduce costs, including:

- Outsourced duty holder model- Extended lift of larger modules - Extended lift of the jacket- No barges- ‘Turnkey’ solution

The result: Circa $2,500 per tonne for removal – significantly better than previous benchmarks

STEPHEN DIPLOCKOperations manager - Petrofac

Duty holder model – why outsource?

Moves the asset from an operational work site to a projectEnsures operational ‘discipline’ is maintainedAllows a clear shift in mindset where BP could focus on task at hand

Adding value

• Creation of fit-for-purpose systems and processes• All tailored to meet the needs of highly complex project• A dedicated, flexible and nimble team able to respond rapidly• Freeing up BP/Saipem to focus on challenges of project

Finding a footing as duty holder

Rapid transition from BP to Petrofac - completed in three monthsSafety Case developed and accepted by regulatorNo contract between Saipem and Petrofac – example of true collaboration

Recipe for success:

• Early realisation that failure by one part of project team was failure for whole project• Petrofac team selected from diverse backgrounds and disciplines with varying experience• This helped drive many of the innovative approaches adopted during the project

In the end we:

• Built a high-performing team which delivered results safely and efficiently• Integrated seamlessly into the wider project team • Created an environment where individuals were empowered to self-manage• Had fun!

What did we deliver?

Through our collaboration with the project team, we:

• Completed Safety Case submissions for each phase of the project phase – these were all accepted by the regulator and worked well at each stage of project execution

• Ensured there were no showstoppers later on in the project• Avoided activity that would add complexity during key project phases

Raising the bar by:

• Optimising the Control of Work process• Risk-based Breaking of Containment for topside pipework• Cold tap approach before pipeline riser severance• ‘Just in Time’ approach to electrical power shutdown• Systematic shutdown of minimum manned installation (MMI) and switch to normally unmanned

installation (NUI) systems

Optimising duty holder operations

Completed all preparation from the Miller accommodationRapid transition to low cost NUI operations‘Just in Time’ shutdown of the electrical systemRobust ‘Make Safe’ activities ahead of each campaignSupported lifting operations from the S7000

Upsides:

• During winter, offshore team now onshore-based to review job cards and permit generation• Close working with Saipem to establish re-entry sequence• Technical authorities deployed offshore to work with BP and Saipem on Management of Change

CHRISTINA KRACHTOUDITopsides Removal Lead Engineer - Saipem

EPRD – turnkey solution

An integrated engineering, preparation, removal and disposal solution

Disposal ongoing with 97% target recycling rate by 2020

• Reduced interfaces compared to conventional removal project• Preparation engineering optimised to removal method• Saipem operations team prepared and removed the modules• Waste management linked continually to the disposal yard• Lowest cost and risk solution

Topsides extended lift

Removal of the flare tower

• Tallest flare structure in the North Sea• Conventional solution was reverse installation or ‘piece small’ demolition• Key decisions were to limit working at height and eliminate cargo barge spreads• Resulting method was topside extended lift with flare still in place: An industry first

Engineering critical

• Extended detailed analyses• Scale model testing• Motion monitoring systems• Sophisticated weather forecasting• Alignment across the project on decision-making process

Jacket extended lift

Largest jacket extended lift in the North Sea

• 50% operations conducted in sheltered water • Reduced offshore subsea cuts• Existing lift points and internal lifting tools (ILTs) used to minimise personnel exposure

Working as One Team

Contractual structure required rethink to understand roles/responsibilities and gain alignment on delivery expectations

Dedicated Working Together workshops to develop tools and approaches to ensure successful execution

Creation of Commitment Statements defining our combined priorities and ambitions for making Miller a success

Using aspects of SCRUM approach:

• Regular surveys of all team members to gauge levels of satisfaction

• Open forum to generate honest, anonymous feedback – What is working, where can we improve?

• Follow-up feedback sessions to communicate responses

1. We will make Miller the exemplar for the decommissioning industry2. We are One Team, knowing, respecting and helping each other succeed with Miller and beyond3. We speak up, listen and take action4. We align to managing risk to ensure no one is hurt5. We are each clear on our value and contribution to the project

Results:• Increased overall satisfaction across team as

measured by survey responses• Noticeably improved working environments, both

onshore and offshore, compared to previous year• Successful, safe delivery of final decommissioning

scope

MILLER DECOMMISSIONING PROJECTPANEL DISCUSSION AND Q&A