Offshore O&G Companies Need to Update Risk Reporting

Safety and Environmental Management Systems (SEMS), viewed by many as a landmark regulation from the U.S. Bureau of Safety and Environmental Enforcement (BSEE), requires oil and gas operators on the Outer Continental Shelf (OCS) to comply with 13 different program elements to ensure the safety of their employees and the environment. According to BSEE, SEMS will help companies meet four principal objectives:

1. Focus attention on how human error and poor organization affect incidents. 
2. Drive continuous improvement in the offshore industry's safety and environmental records. 
3. Encourage use of performance-based operating practices. 
4. Collaborate on efforts that promote the public interests of offshore worker safety and environmental protection. 

Are operators prepared and ready to comply? Many likely will need help, says Scott Lockhart, vice president-EHS & Sustainability Solutions, for IHS. “This is the most significant change to safety regulations impacting offshore operations in a decade. While many companies with operations on the OCS maintain strong risk management programs, SEMS requires them to establish an even higher standard for documenting their critical safety indicators.”

According to Lockhart, SEMS is modeled after voluntary guidelines developed by American Petroleum Institute in Recommended Practice #75, which addresses safety work practices, hazard analysis, change management, auditing, incident investigations, training and operational procedures.

“To control unwanted events, offshore operators need to develop the necessary expertise, experiences, judgment and proactive initiative within their workforce to properly implement and maintain an effective operational risk management program,” continued Lockhart. “BSEE has pushed accountability for controlling risk higher up the chain of command.”

Learn more about SEMS here.