Effective Risk Management Through Data-Driven HSE Assurance Program for Safe Execution Project Delivery
Authors: Sia W. C. , Ahmad Z. A. , Muhamad S. , Ali A. R. , Hamdan H. M. 
Published: November 2024

Execution of development projects in the oil and gas industry operates within a dynamic landscape associated with high-risk activities, which frequently could result in undesired mishaps. The conservative approach in managing Health, Safety, and Environmental (HSE) risks through lagging indicators are easy to measure but hard to change. The high volatility and complexity nature of these projects necessitates a transformative approach in managing HSE risks. Since 2019, PETRONAS's project delivery arm has invested in establishing PETRONAS Artificial Intelligence Incident & Risk Analysis (AIIRA), an artificial intelligence (AI) predictive model to predict future HSE risks and incidents based on historical HSE incident big data, coupled with prescription of control measures (Go et al., 2023). Assurance is identified as one of the essential elements in prescription of control measures of the enhanced module of AIIRA. This paper, therefore, advocates for "HSE Assurance Prescription Tool" which acts as one of the actionable insights to complement the predictive analytics by evaluating the Top HSE Risks and subsequently recommending the risk-based assurance intervention wherever appropriate and relevant. As a result, PETRONAS adoption of a data-driven decision-making framework, while leveraging digital technologies, and employing both predictive and prescriptive analytics has enhanced the timeliness and effectiveness of risk-based assurance interventions in ensuring safe execution of project delivery. The implementation across PETRONAS project delivery has resulted in an increment in assurance accuracy above 80%, which directly enhanced efficiency in HSE risk management; 17% cancellation of irrelevant planned assurance activities compensated with 43% of unplanned assurance activities as per HSE Assurance Prescription Tool recommendations for a robust risk based HSE assurance approach. By adopting prediction-based targeted interventions via HSE Assurance Prescription Tool, PETRONAS project delivery has achieved 92% incident avoidance rate; with 2 recorded incidents out of 24 predicted at the hotspot project as of YTD Q2 2024.

The AIIRA and HSE Assurance Prescription Tool create substantial value for PETRONAS business operation by fostering a proactive safety culture and driving business excellence. By inculcating proactive risk management among personnel, the tool ensures that frontliners are equipped to identify and addressing HSE risks, which leads to a safer work environment. It offers an effective and innovative approach to manage HSE risks, serving as a leading business performance indicator utilising digital platform. Through precise planning and the use of prescriptive analytics, the tool is able to optimize resources while maintaining risk conscious operation. Additionally, it leverages real-time analytics for intervention and informed decision-making through predictive insights. This combination of methodologies and technological integration ensures a robust system for risk prevention and management, significantly enhancing operational excellence and safety in the oil and gas industry.