SAFETY IN THE OFFSHORE PETROLEUM INDUSTRY: THE NEW REGIME
Authors: Jordan Glenn 
Published: August 2017

Following the recommendations of the UK Cullen and COSOP reports, a new regulatory and operational safety regime is being introduced across Australian territorial waters for the offshore petroleum industry. This paper details the concepts behind the new regime including the development and implementation strategies employed to introduce it and the implications to industry and government instrumentalities. The recognition that safety in the work place is an outcome of managerial commitment and a function of work system control is resulting in legislative reforms that will reduce the focus on physical compliance, in favour of a goal-setting legislative approach that places emphasis on systems of managing safety at the work place. By focussing upon ends rather than means, objective based regulation requires organisations to manage the design, construction and operation of facilities to reduce risk to a 'reasonably practicable level*. The details of the management arrangements and risk assessment studies once submitted in a 'safety case' and acknowledged by the regulator, form a co-regulatory guidance document that sets both the standards to be achieved and the mechanism for achieving them. Auditing of the operator against an accepted safety case will occur on a regular basis. Driven by measurement of an operator's safety performance, selected systems will be targeted and audited against the safety case by a team of auditors composed of both government inspectors and operator personnel. Performance measures will be both proactive and reactive in nature and include among other measures, results obtained through the newly created national data base for incidents and accidents. Preparation and assessment of safety cases provides regulators and operators alike with difficulties. Consistency of assessment and objective determination that acceptable minimum standards have been met provide a challenge to government agencies and to the petroleum industry. Recognition of the nature of this challenge has led to the adoption of Quality Management principles among government utilities. A key feature of the Quality Management System will be the introduction of systems that drive change through cyclic updates of the safety case assessment procedures.The safety case concept institutionalises a dialogue between regulator and operator that will facilitate the preparation, submission and assessment of the safety case. This initiative provides for a staged submission process to correspond to the development phase of the facility. It is considered that this methodology will ensure minimal delays in assessment and provide certainty in the business planning process. The new safety case regime provides for a greater level of employee participation both in the preparation of safety cases and the maintenance of safety at the work place. Transparency of approach by both operators and regulators will be needed if public and workforce confidence are to be maintained. Co-operation and continual improvement will hopefully be the hall mark of the Australian safety case regime.