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Audit of Teekay - Petrojarl Varg

During the period 23 October - 6 December 2007, the Petroleum Safety Authority Norway (PSA) conducted an audit of the HSE management system in Teekay Petrojarl Production AS (Teekay), as well as an audit of working environment factors, production, technical safety, electrical, crane and lifting operations on the Petrojarl Varg facility.

The audit was conducted by means of document reviews, conversations and verifications at the company's office in Trondheim and verifications on board the facility.

Petrojarl Varg

Petrojarl Varg (Source: NPD)

Background for the audit
Teekay owns and operates two mobile production facilities (FPSOs), Petrojarl 1 and Petrojarl Varg which are active on the Norwegian shelf. The Petrojarl 1 carries out activities for Statoil on the Glitne field and the Petrojarl Varg carries out activities for Talisman on the Varg field.

Both of the facilities are registered in a national ship's register and Teekay has applied for Acknowledgements of Compliance (AoCs) for the facilities. The audit activity is part of the PSA's processing in connection with these applications.

Purpose of the audit
The purpose of the audit was to verify that factors related to the company's management system for HSE and technical and operational factors on the Petrojarl Varg within the technical fields covered by this activity, meet regulatory requirements.

Result of the audit
Parts of the company's HSE management system were reviewed during presentations at the company's office in Trondheim. Some factors were followed up with verifications on board the Petrojarl Varg. The company's system for handling nonconformities does not function in accordance with regulatory requirements.

An improvement item was also found as regards competence and training, knowledge of the shelf regulations and the AoC regime.

Teekay has not carried out a complete conformity assessment in the areas of electrical, process and safety systems. This means that there may be additional nonconformities in relation to the regulations, in spite of the fact that the technical condition of the facility is good.

The conformity assessment implemented for the working environment area is deficient. Few surveys have been performed. The conformity assessment has primarily been measured against the company's management system and does not adequately cover the status in relation to compliance with technical working environment requirements and exposure requirements.

Contact person in the Petroleum Safety Authority Norway:
Mike Theiss