PSA critical of Equinor’s drilling contracts model performance

Jan. 20, 2023
The Norwegian Petroleum Safety Authority (PSA) has issued orders to Equinor concerning its drilling contracts procedures and implementation of the associated IO model on the company’s fixed facilities offshore Norway.

Offshore staff

OSLO, Norway  The Norwegian Petroleum Safety Authority (PSA) has issued orders to Equinor concerning its drilling contracts procedures and implementation of the associated IO model on the company’s fixed facilities offshore Norway.

During 2019 the PSA initiated meetings with the company, its drilling contractors, and drilling and well service companies that had been awarded “fully integrated” contracts under this model.

Subsequently, the PSA conducted audits concerning implementation and execution of the IO model on Gullfaks A in 2019, Oseberg South in 2020 and Heidrun in 2022.

The model involves closer interaction between operator, drilling contractor, and the main supplier of drilling and well services, with a reduction in manning for the offshore roles involved.

However, the PSA identified a gap between Equinor’s own description of how the IO model functions and information received through "whistleblowing" reports, experience and audit findings

In addition, the audits found an absence of, or inadequate, facility-specific risk assessments related to the IO model and its implementation, and a failure by Equinor to act on weaknesses/challenges already identified on the facilities in terms of incorporating these in developing and improving the IO model.

Pursuant to section 69 of the framework regulations on administrative decisions, Equinor must now chart and assess whether the IO model functions as intended and identify technical, operational or organizational weaknesses, faults and deficiencies in the model on the individual facility where the IO model has been implemented.

The charting must include facility and field-specific conditions, interaction between sea and shore, relevant operational knowledge gained from experience, and audit findings from the various facilities where the IO model is implemented.

Deadline for compliance is June 1, 2024.

01.20.2023