A Case Study of Asset Integrity and Process Safety Management of Major Oil and Gas Companies in Malaysia

Abstract

Asset integrity is closely intertwined with process safety where the latter is often perceived to be equivalent or a subset of the former. In Malaysia, the requirements for offshore process safety are set by Petronas assuming exclusive rights to petroleum in the nation. It imposes and enforces these requirements on oil and gas companies entering into its production sharing contracts via the common law. Process safety management in Malaysia is strongly influenced by the US OSHA 3132 with elements comprising process safety information, process hazard analysis, operating procedures, employee participation, training, contractors, pre-startup safety review, mechanical integrity, hot work permit, management of change, incident investigation, emergency planning and response as well as compliance audits. These elements are largely included in the Mandatory Control Framework of Petronas and the trio of design, technical and operating integrity adopted in the process safety management of other oil and gas companies. These management practices align with the reiterative plan-do-check-act model. Process safety performance is also gauged with indicators suggested by international institutions such as the American Petroleum Institute. On top of the Control of Industrial Major Accident Hazards Regulations 1996 for onshore processes, this study deems that establishing statutory law for offshore installations will be beneficial to propel offshore safety in Malaysia to a greater height.