SAFETY AUDIT IN OIL AND GAS EXPLORATION PROJECTS

In the past three decades, the energy demand has increased rapidly in Vietnam due to its stronger economic development. The energy resources are considered as the blood of the Vietnam economy. PetroVietnam has developed rapidly since it was established in 1975. Its activities, through its various companies and wholly owned subsidiaries are now covering all the operations from oil and gas exploration and production to storage, processing, transportation, distribution and services. Oil and Gas exploration in Viet Nam have been developed so fast but until now, no refinery yet. Vietnam’s expanding offshore exploration and production has created a steadily growing market for offshore oil and gas equipment and services.

However, Oil and gas industry in offshore consist of many stages such as search, exploration and construction to explore crude oil. It is one of the most dangerous industries, especially the exploration of the crude oil. It always encounters many different dangers and serious accidents. Oil and gas causes fire and explosion easily. When workers do not comply with safety rules nor has low skill safety and outdated equipment, accidents may happen. When these accidents happened, it has effects on the project cost, schedule, qualities and profit. Thus safety audit must be used as an integral part on Oil and Gas project to mitigate accidents. It plays one of the most important roles for the safety of the exploration project.

The safety audits when properly observe and practice can save lives and minimize the accidents in a work place. The companies are advised to implement the following:
· Persuade workers by explain the results of their safety efforts.
· Improve safety understanding.
· Make sure that in the past recommended corrective action was addressed, initiated or completed. .
· Assess the helpfulness of, or need for, safety instruction.
· Expose weak points in the safety plan.
· Keep up principles by ensuring that staffs pursue established guidelines, methods and procedures.
· Identify where methods or procedures are not enough

Mr. Nguyen Quang Hung made a case study on “Safety Audit in Oil and Gas exploration Projects” in Vietnam which primary objective is to identify an effective safety audit framework to minimize the accidents happening in the oil and gas industries.

He found out that many Oil and Gas companies in Viet Nam such as CuuLong JOC, Vietsopetro, JVPC and PTSC have been successfully implementing the safety audit rules. Since no accidents occur in these companies, they gain more profit due to the reduction in the cost and time of the project.

He also found out that Cuu Long JOC strength is that, it is conducting its own safety audit. The Leaders in Cuu Long JOC have the right policies and the objectives of HSE management are very clear. Besides, this Joint Venture Company gives priority on the working condition and safety of Oil and Gas exploration.

However Cuu Long JOC has also weaknesses. Although the company implemented the safety audit following the procedure, still the implementation has many constraints. Almost Safety Audit procedures come from developed countries and when it is applied in developing countries like Viet Nam, it is very difficult because the workers have low safety awareness, careless and do not comply with safety manual. In some case, they do not follow audit report, no commitment to implement the result audit, no independent auditor and unavailability of Audit tool.

Mr. Hung’s thesis abstract is copied and posted.

ABSTRACT

This thesis deals with a Safety Audit in construction industry. However, to understands regarding Safety Audit is difficult and still limited. It’s a very importance key role for the safety management system, especially exploration crude oil, construction of platform to explore crude oil. Safety Audit in the construction industry has always been a major issue. Wherever reliable records are available, exploration and construction platform is found to be one of the most dangerous on safety and health criteria, particularly in developing countries. Though much improvement in construction safety has been achieved, the industry still continues to lag behind most other industries with regard to safety.

Safety was not only a worry of many companies, but also an unavoidable problem of many projects in oil and gas industry exploration which presently was the largest, strongest industry in Vietnamese manufacture and business. Hence, Safety Management System was step by step improved by many new management practices which one of them was the Safety Auditing in Oil and Gas Exploration.