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Order to Statoil – Gullfaks C

The Petroleum Safety Authority Norway (PSA) carried out an audit of Statoil’s planning of well 34/10-C-06A in October. We have now issued an order to the company, in line with the previous notification.


The audit, which was conducted during the period 8-15 October 2010, identified several nonconformities in relation to regulatory requirements.

The PSA’s conclusion after the audit was that the planning of the drilling and completion operation in well C-06A was carried out with serious and pervasive inadequacies linked to key factors such as management of risk and change control, experience transfer and use of competence, knowledge of and compliance with governing documents and documentation of decisions.

Deficiencies
Viewed overall, the PSA has concluded that serious deficiencies have been identified in Statoil’s planning of this Gullfaks well and in management checks that the work was being done in an acceptable manner.

Based on this, the PSA issued a notification of order.

Read more: Notification of order to Statoil - Gullfaks C

In accordance with the notification, we have issued the following order:
On the basis of the authority conferred by sections 8 on the basis and criteria for decision, 10 on work processes, 21 on follow-up and 22 on improvement in the regulations relating to management in the petroleum activities (the management regulations), confer section 58 of the regulations relating to health, environment and safety in the petroleum activities (the framework regulations), the following order is issued to Statoil Petroleum AS:

1. To review and assess compliance with the work processes established to safeguard the quality and robustness of the well construction process on Gullfaks. This must include an investigation of why important deficiencies were not picked up during the work. Necessary improvement measures related to the work processes and their use must be identified and implemented.

2. To conduct an independent assessment of why measures adopted after earlier incidents, including the gas blowout on Snorre A in 2004 with similar causes, have not had the desired effect on Gullfaks. Based on the results of this work, the company must assess the need for and implement new and tailored improvement measures on Gullfaks.

3. To assess the results of the work done under items 1 and 2 and – on that basis – implement measures in the rest of the company.

4. To prepare a binding plan for the way this work is to be executed and followed up. This plan must be submitted to the PSA.

The deadline to comply with the order is set at:
- Item 1 1 January 2011
- Items 2 and 3 1 July 2011
- Item 4 10 December 2010

We must be notified when the order has been carried out.


Order and notification of order
An order is a administrative decision made pursuant to the regulations.

Before the PSA makes an order, it usually issues a notification of order to the companies concerned.

A notification of order is neither a measure nor a warning of sanctions, but part of the PSA’s administrative process as specified in its established procedural rules.

The notification is merely a first step before an administrative decision is made.