HIGH COSTS SEEN IN RECOMMENDATIONS OF CULLEN REPORT

Dec. 3, 1990
Some older, less profitable fields in the U.K. North Sea could be shut down prematurely when recommendations of the Cullen report into the Piper Alpha accident are implemented. A study of implications of the Cullen report by the safety and reliability department of W.S. Atkins, Epsom, England, said it is not clear whether older fields will be abandoned because of increased costs, but it seems likely. The same situation could prevent development of marginal fields.

Some older, less profitable fields in the U.K. North Sea could be shut down prematurely when recommendations of the Cullen report into the Piper Alpha accident are implemented.

A study of implications of the Cullen report by the safety and reliability department of W.S. Atkins, Epsom, England, said it is not clear whether older fields will be abandoned because of increased costs, but it seems likely. The same situation could prevent development of marginal fields.

The cost of implementing the Cullen recommendations in modifications to installations, possible lost production, and additional manning will be considerable.

The Atkins study said introduction of formal safety assessments (FSAs) on all installations in the U.K. North Sea is unlikely to be a painful exercise and will bring significant benefits to operators.

It added that the recommendations will allow offshore safety to catch up and surpass requirements onshore.

ONSHORE EXPERIENCE

The experience of the equivalent of FSAs on hazardous process plants onshore showed that it is not as painful as operators had feared.

With the emphasis of onshore rules on self-analysis, most companies found their operations improved, Atkins said. The inward looking process enables companies to discover much about their operations and highlights areas in which improvements can be made readily.

The experience of offshore operations in the post-Cullen era is likely to be much the same, Atkins said.

The Atkins report said that Cullen's preference, with few exceptions, for goal setting rather than prescriptive rules will allow producers flexibility in solving problems.

This aspect of the report clearly recognizes the variety, types, and ages of installations as well as the variety of size and resources of operating companies, Atkins said.

It also said Cullen had taken care that the proposed regime should not be viewed as so harsh that some operators will pull out of the North Sea.

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