Lloyd’s Register services to the energy industry

Compliance assurance services

Danny Walker
Vice President, Compliance Services
Lloyd’s Register Energy Americas
20 April 2011
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The emergence of new regulations in the Gulf of

Mexico
• The impact of the Macondo well (Deepwater Horizon) incident has been
widely felt within the U.S. offshore industry
• Currently, operators and contractors can be experiencing….

The heat of Increased Increased

the media insurance operating costs
spotlight liabilities

• The pressure on regulators to counter the sting of lost reputation and

community trust has given rise to stringent new measures.
• All contractors forming the supply chain are subject to the impact of regulatory
change
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What do the new regulations mean?

• It is vital to know what these regulations are and the extent of their
significance for companies and the industry as a whole

Management
Minimum Best
standards + practice
cultural
change

• It is not enough to simply comply with a set of minimum standards

• The responsibility and accountability for Safety lies with the operators
• Operators are required to develop their own safety solutions

Is your company doing enough to ensure safety?

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Regulations in more detail

• Safe operation of a facility is the responsibility of the facility operator
• The primary responsibility for ensuring health and safety lies with those who
create risks and those who work with them
• All lessees must develop and implement their own Safety & Environmental
Management System (SEMS), based on the API RP 75 (SEMP), and make it
available upon request

Establish

Maintain Verify

SEMS
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To what aspects of the offshore industry do the

regulations apply?

Drilling
Floating

Workover Production

Operations
Structures

DOI Fixed MODU

regulated Completions
pipelines
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Lloyd’s Register: providing companies with

compliance assurance services
• More than ever before, companies require specialist guidance in assurance
compliance to help them navigate the complex new operating framework and
indeed help them survive
• For most companies, responding to the new regime will require long-term
cultural change beginning with management structure, as they are forced to
focus on the 3Ps of HSE management

PEOPLE

PROPERTY

PROCESS
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Lloyd’s Register’s experience and expertise

Determine,
plan and
implement Effective
best course compliance
of action assurance

Help
clients
respond to
legislative
mandates
Help companies
understand what
is at stake and to
adapt to the
necessary long
term cultural
changes
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Lloyd’s Register’s recommended approach:

Total Asset Performance (TAP)
• A holistic approach
• Planning and implementing long-
term operations to achieve Achieve and
maintain
superior performance compliance within
the new GoM
regulatory regime

Provide safe,
secure
Reduce unit environment
downtime for both
equipment and
personnel
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Auditing obligations within the new regulations

• SEMS programs are to be audited to ensure that they comply with all
requirements
• Comprehensive audits examining 13 program elements
• Must be scheduled two years from initial implementation
• Re-audits at least once every three years thereafter
• Audit plans (API RP 75, sec. 12.1-12.4) to be submitted to BOEMRE 30
days before audit
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Lloyd's Register

• Lloyd's Register is a world leader in providing compliance assurance

certification and consultancy services to companies operating in the most
challenging and hostile environments under the most rigorous regulatory
systems
• Our experience and expertise means we are well equipped to help
companies navigate the new GoM regulations
• With over 240 offices in 80 countries, we truly provide a global perspective on
local human factors and safety issues
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Engaging with Lloyd’s Register

To contact Danny Walker directly, please visit his LinkedIn page:
www.linkedin.com/in/dannywalker

For more information about how Lloyd’s Register can help you, contact us:

Lloyd’s Register
1505 Highway 6 South, Suite 100,
Houston, Texas 77077, USA

T +1 (1) 281 675 3100

E energyamericas@lr.org
W http://www.lrenergy.org