Core Driven HAZOP © Case Study for a Confidential Client
The application of the Process Safety Matters Core Driven HAZOP © methodology succeeded in reducing the cost of an FPSO re-HAZOP by an estimated 72%
Core Driven HAZOP ©
With the price of oil still hovering around $50 a barrel, projects are being delayed and cancelled at record rates. Those that remain are being subject to ever tighter financial scrutiny. Nothing is exempt from analysis - except safety. One of the key means of underpinning project safety is HAZOP, which is rightly applied at various stages of design and often as a means of protecting the operating plant. Since its inception over 50 years ago, its judicious application has been responsible for saving thousands of lives and billions of dollars.
However, conventional HAZOPs can be very expensive in terms of cost and resources. How can we retain the core benefits of this valuable technique while at the same time drive the cost down significantly? The answer is to execute them using Core Driven HAZOP ©.
Core Driven HAZOP © can reduce the cost (by 70+%) of conventional HAZOP whilst retaining all its essential impact.
Key Elements of Core Driven HAZOP ©
There are 6 key elements to Core Driven HAZOP ©, all of which contribute to generating a lower cost base for the technique.
The idea for Core Driven HAZOP © was born when I was chairing an FPSO re-HAZOP in the UK.
The key tenets of this review were.
- Scope - Whole FPSO (Topsides and Marine)
- 200 P&IDs
- 100 Nodes Designated and Reviewed
- Full HAZOP Team (Chair, Scribe, Process, IPE, Ops, Instrument, 0.5 Expert)
- All HAZOP Consequences considered
- No use of Video Conferencing
- 500 Actions Generated @£1000 per response
This led to the following financial numbers:
Execution of HAZOP = £1,000,000
Follow Up (Action Response and Close out) = £500,000
Total = £1,500,000
Core Driven HAZOP ©
Let’s see what the impact of applying the principles of Core Driven HAZOP © to this review would have been.
Execution of HAZOP £1m x 0.315 = £315,000
Follow Up of HAZOP £0.5m x 0.2 = £100,000
Total Cost of Core Driven HAZOP © = £415,000 (a saving of over 72%)