1. How is safety connected to safety? What is safety and why is it important. Heidi Fuglum ABB - Chemical, Oil and Gas Market Development & Technology Deployment Manager Moscow, Russia | 16-19 June, 2014

2. Introducing Heidi Fuglum Working with ABB since 1996 Heidi has been with ABB for more than 15 years and is currently Technology Coordinator for Chemical, Oil and Gas. She lives in Oslo (Norway) but she spends most of her time in the Arab Gulf region. Her responsibilities are development of the automation market, both for new installations and installed base. Heidi is also responsible for safety systems in installed base. Heidi has worked on an oil platform for one year in Norway, and she has resided in Jakarta (Indonesia) and in Singapore. She is certified functional safety engineer from TUV

3. Moscow, Russia | 16-19 June, 2014 Why is safety so important?

4. Moscow, Russia | 16-19 June, 2014 The energy we love to hate Equivalent 136.000 TWh ~ 1000 times Norwegian electricity production ~ 6000 nuclear power plant blocks, open one each week for 115 years. Source: International Energy Agency (IEA)

5. Moscow, Russia | 16-19 June, 2014 Carbon emissions from different sources Coal continues to account for the largest share of energy-related carbon dioxide emissions throughout the projection Source: Energy Information Administration (EIA) World energy-related carbon dioxide emissions by fuel type – 1990-2040 (billion metric ton)

6. Moscow, Russia | 16-19 June, 2014 The energy we love to hate Largest windfarm planned is 200 mills at 2 MW with annual production 1,2 TWh To replace oil and gas consumption, 113.000 such farms, with a total of 23 million mills is needed. At 100 meters distance, this will go 60 times around equator Source: International Energy Agency (IEA)

7. Moscow, Russia | 16-19 June, 2014 Longer, deeper, colder… and older Ensuring safe, efficient and sustainable operations

8. Moscow, Russia | 16-19 June, 2014 Key concepts to managing safety Process (Technical) Safety Functional Safety Personal or Occupational Safety Managing Major Accident Hazards, with particular focus on managing the containment of hydrocarbons and chemicals Slips, trips & falls Personel Protection Equipment Lockout-tagout Confined space working Hot working Instrumented Functional Safety Product Safety Overall Safety Management & Culture Interlocks, Alarms & Trips Safe for Intended Use Human Factors Alarm management Human failure modes Designing out problems Behavioral safety Competency management

9. Moscow, Russia | 16-19 June, 2014 Safety fundamentals Hazard and Risk Hazard has the potential to cause harm through Injury Illness Damage Risk is a combination of The probability of occurrence of harm The severity of the harm Want to reduce risk to protect: People Environment Business

10. Moscow, Russia | 16-19 June, 2014 Risk matrix Severity High Risk Low Risk Likelihood

11. Moscow, Russia | 16-19 June, 2014 Risk matrix Likelihood Process Safety High Low Severity Personal Safety

12. Major Incident Triangle Personal Incident Triangle Consequence Major incident Consequence High Potential Incident Indicator Detail breaches Consequence Unsafe actsv Indicator Near misses Consequence Minor injury Consequence Major incident Personal vs Major incidents, indicators Source: Woodgroup

13. Moscow, Russia | 16-19 June, 2014 Protection is multiple protection layers Risk Reduction using LOPA Emergency response layer Passive protection layer Active protection layer Safety layer Emergency shutdown Process shutdown Process value Trip level alarm Process control layer Process alarm Process control layer Normal behaviour Plant and Emergency Response Dike Relief valve, Rupture disk Safety Instrumented System Operator Intervention Basic Process Control System

14. Moscow, Russia | 16-19 June, 2014 Key concepts to managing safety Process (Technical) Safety Functional Safety Personal or Occupational Safety Managing Major Accident Hazards, with particular focus on managing the containment of hydrocarbons and chemicals Slips, trips & falls Personel Protection Equipment Lockout-tagout Confined space working Hot working Instrumented Functional Safety Product Safety Overall Safety Management & Culture Interlocks, Alarms & Trips Safe for Intended Use Human Factors Alarm management Human failure modes Designing out problems Behavioral safety Competency management

15. Moscow, Russia | 16-19 June, 2014 Different types of safety Health, Safety and Environment

16. Moscow, Russia | 16-19 June, 2014 The Subsea Factory – environmental challenges

17. Moscow, Russia | 16-19 June, 2014 Different types of safety Process Safety

18. Moscow, Russia | 16-19 June, 2014 Different types of safety Functional Safety (“Automation Safety”) Controller Level Switch Solenoid Pump SIF A SIF B SIF C SIF D Safety Instrumented System with multiple SIF’s

19. Moscow, Russia | 16-19 June, 2014 Different types of safety Functional Safety IEC 61511 Defines 61508 application in Process Sector Defines the Application of Safety Instrumented Systems for the Process Industry

20. Moscow, Russia | 16-19 June, 2014 Different types of safety Product Safety

21. Moscow, Russia | 16-19 June, 2014 Why focus on operators? Operator effectiveness generates substantial savings  Global process industry looses $20 billion (5% percent of annual production) due to unscheduled downtime and poor quality  80% of these losses are preventable, 42% result primarily from operator error  Huge increase in amount of information dramatically increases risk for stress in critical situations Distribution of unscheduled shutdowns and slowdowns in %

22. Moscow, Russia | 16-19 June, 2014 The evolution of operator control Significant increase in complexity and span of control

23. Moscow, Russia | 16-19 June, 2014 Different types of safety Human Factors Who’s hurt, who just needs a cuddle, who should I pick up first? What should I do? When Mathias starts crying, why does Peter always start crying as well?

24. Moscow, Russia | 16-19 June, 2014 Different types of safety Human Factors Hundreds of screaming babies….and we expect the operator to register and respond to all babies that are hurt? Alarm Management essentials - make sure the operator picks up the right baby every time.

25. Moscow, Russia | 16-19 June, 2014 Different types of safety Safety Culture Safety Communication SAFETY CULTURE Management commitment Supervisory commitment Teamwork Safety rules & procedures Workforce involvement Training Organizational Learning Reporting System Work pressure

26. Moscow, Russia | 16-19 June, 2014 Source: Energy Information Administration (EIA)

27. Moscow, Russia | 16-19 June, 2014 How can we get the energy supply we need in a safe and sustainable way? Oil and Gas Electrification Subsea Power GridSmart Community Shore to Ship Industry automation Data Centers