Surface Operations Integrity

Management

Bucharest
March 13th 2012
OMV Petrom Group, the largest oil and gas
producer in SEE
Exploration and
Refining and Gas and
Production
Romania and Kazakhstan Marketing Power
Upstream integrated refining 5.05 bcm Group gas sales
67.77 mn boe total
hydrocarbon production capacity Strong position on the Romanian
5.32 bcm Group gas ~800 filling stations at Petrom gas market, covering all gas market
production Group level segments
812 mn boe Group proved 4.07 mn t Petrom Group marketing 860 MW Brazi power plant to start
reserves sales commercial operations in H2/2012

All figures as of December 2011; figures refer to Petrom Group

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Exploration and Production
Facts and figures
Romania
Proved reserves at end of 2011 in Romania: 786 mn
boe
Reserves replacement rate in 2011: 70%
Crude oil and NGL production in 2011: 33.08 mn bbl

Kazakhstan
Proved reserves at end of 2011: 26 mn boe
Crude oil and gas production: 4.36 mn boe

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Definition of ASSET INTEGRITY from OGP

Asset integrity is related to the prevention of major incidents. It is an outcome

of good design, construction and operating practices. It is achieved when
facilities are structurally and mechanically sound and perform the processes
and produce the products for which they were designed.

The emphasis is on preventing unplanned hydrocarbon releases that may,

either directly or via escalation, results in a major incident.

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Emphasis on Process Safety
Process Safety is a disciplined
framework for managing the
integrity of hazardous operating
systems and processes by
applying good design principles,
engineering and operating
practices.
It deals with the prevention and
control of incidents that have the
potential to release hazardous
materials or energy.
Such incidents can cause toxic
effects, fire or explosion and
could ultimately result in loss of
life, serious injuries, property
damage, environmental impact
and lost production
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Relationship Asset Integrity & Process Safety

Owned &
Assured by
HSSE

AIM PSM System

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Integrity Program

Integrity Program to bring facilities up

to compliance with regulatory
requirements in terms of
Legal requirements
Environmental requirements
Technical condition
Safety

Prioritization done based on risk

assessment and existing condition
assessments

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Integrity Program

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Integrity Management Program

Pipelines ESD&Fire&Gas Detection

Replace Boldesti De Gasolinization facility

with LTS MIRD Program-Fix Derricks

H2S and CO2 (detection, escape eqpt. &

training of operators) Gas conditioning

Process Safety (PSVs, Pipework and Integrity Management

Venting) Program includes Boilers & Heaters
14 work streams
Tanks / Habas Inlet Manifolds, Piping's, Valves

Electrical network power system Wellhead X-mas Trees - New

Roads Integrity Technical Documentation

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 Asset Integrity Management Pillars
Surface Facilities and Pipelines
Risk Based Approach to 2012 High risk
facilities (14 work streams, 25 M Euro)
- Mgt of high risk facilities against Earthquake
and Flood
- Critical Infrastructure program
RBI (Static Equipment) and PIMS
- Pilot Study Asset 2 High Risk Gas asset
- Roll out to all Assets 2012
- Pipeline Prioritization Project for repair and
replacement
- Risk Rank High Risk Facilities
Engineering and Design
- Process Safety standard incorporated in design
phase
Inspection and Maintenance
- Maintenance Strategy Review
Corrosion management
- Corrosion Inhibition Program 5000+ wells
Facility Abandonment
- Pipeline Abandonment Program new PI
department
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Asset Integrity
Information and Processes
Technical Documentation
- Document Mapping: Identify & develop all
Operational Doc. in HQ, Assets and Projects
MOC
- Eng Change Proced. developed and process in
function
Permit To Work
- Pilot e Permit System Asset X
Operational Readiness Assurance
- Dedicated resource to all new projects
Process Safety
- Safety Critical Elements identified
- Perform Stand Brown & Greenfield sites
- SAP align, custom FL and WO screens
- PS MWA & KPIs
IT System & Data Management
- ePermit
- SCE Database
- RBI and PIMS Software
- SAP Data Integrity gap analysis
Audit
- PS and SCE Audit
Organization
Organization
- Dedicated PIM Team set up in HQ
- Pipeline & Static Equipment RBI teams in
Assets
- Dedicated PS Resource per asset
Accountabilities
- New JDs and R&R for new teams in HQ and
Assets
- Redefine Operator R&R and first line
maintenance
Training and Competency
- JD redefined for new organization
- Training and Competency Matrix to be
developed
- Gap Analysis and program establish
- RBI Training (Methodology and Software)
- Bowtie Risk assessment training complete
 Safety Critical Elements

Safety Critical Element (SCE) - Any part of the facilities (including

software) the failure of which could cause or contribute substantially
to a major accident, or the purpose of which is to prevent or limit the
effects of a major accident.
Guideline for Identifying Safety Critical Elements - EP-HQ-03-GL-008-OO

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Process Safety Management Plan Greenfield (Hurezani &
Midia)

Safety critical elements are normally identified as a result of a safety case and hazard
register development during the design stage

Safety Case Major Accident Hazard focused risk

Risk Assessment assessment report identifies MAH
Act on outcomes and update

Hazard Register describes barriers and

Barriers SCE are defined.

Performance Standards developed and

Performance Standards Safety Critical Equipment are identified in
maintenance system.

Written Scheme of Verification created and

Inspections & maintenance conducted
Verify Performance

Issues register is generated

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BOW Tie: Hydrocarbon Containment

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 Process Safety Management Plan Brownfield

Where a formal risk assessment is not available to identify safety critical elements an
alternative approach is required

OMV SCE Guideline EP-HQ-03-GL-008-00 for

OMV SCE Guidelines Facilities where no HSE Case exists
Act on outcomes and update

SCE are defined using flowchart for

Generic Barriers & Analysis identifying safety critical elements

Generic Performance Standards developed

Generic Performance Standards and Safety Critical Equipment are identified in
maintenance system.

Written Scheme of Verification created and

Inspections & maintenance conducted
Verify Performance

Issues register is generated

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 Flowchart for Identifying Brownfield SCEs

Guideline for Identifying Safety Critical Elements EP-HQ-03-GL-008-00

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SAP record for Functional Location

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Start up and Year 1 management is crucial for a
successful program lifecycle

Current situation / challenges

SOI department in 2012 is responsible for management, control and execution of a high number of
integrity projects with significant impact on Petrom E&P, Operations, HSSE and process safety.
Different scopes of work with need for alignment & interdependency management between
subprojects & work streams
Need for interaction and coordination with other departments
High visibility and delivery to Senior Management (significant budget allocation )
Need for audit proof management processes (incl. documentation)
Expansion of SOI department scope and project landscape
Pipeline Integrity Team
Petrom Risk Management (Floods & Earthquakes)
Critical infrastructure
Inclusion of all Pipeline and Roads Projects 2013
Significant risks to be considered and mitigated
Review and propose Integrity Program for 2013 (budgets, risk workshops, action plan)

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Thank You