Evolution of HSE and Future Challenges in the E&P Sector of Pakistan

Abstract

Abstract Objectives/Scope: Evolution of HSE in the E&P Sector of Pakistan during past few decades has touched maturity stage after passing various phases. Time has reached where HSE is being overlooked due to complacency. Low oil prices in past few years, reduced profit margins and low foreign investment has put lot of stress on management to cut costs. Compromises are being made on HSE & quality in terms of contractor selection, hiring of contracted services, procurement of materials and hiring/retention of competent staff. There is likelihood of major accidents if due importance is not given to HSE. Methods, Procedures, Process: Evolution of HSE started with entrance of multinational companies in Pakistan in early 80's. Fire safety gradually transformed into health & safety. Environment was focused and then eventually HSE management system were opted in past thirty years. Companies in current era are not reactive to existing regulatory compliance, rather they are thinking beyond. Applicable regulations in Pakistan pertaining to health and Safety are quite old and never revised since 1974. Environmental law enacted in 1997 is updated and regulations are fully being enforced. Management commitment and defined responsibilities in HSE however are evident that ensures compliance. HSE Management System Certifications have further improved compliance level. Higher HSE standards adopted by the multinational E & P companies in Pakistan to meet their corporate needs has set example for national companies. Sustainability has gained importance in recent years where E & P companies are taking proactive measures to protect people & property on projects, maintain productivity in concession areas and strive to fulfill social, economic and other requirements of present and future generations. Effective HSE programs including training, audits, investigation, alerts, knowledge sharing, emergency response, HSE Observation Program, management site visits and recognition of staff for their contribution make the difference and essential in developing positive HSE culture. Contractor's management is essentially important for the success of program. These programs are effectively implemented in multinational companies but there is lot of room for improvement in National companies. Results, Observations, Conclusions: Paper will encompass facts as to how E & P companies in Pakistan need to perform in order to meet not only the HSE regulatory requirements, rather they focus future challenges faced by the industry due to economic recession. Developing good HSE culture takes time to mature and require strong commitment. Productivity and profitability certainly improves through safe systems and safe working atmosphere. Investment on HSE has no fixed rate of return and payback period may be long but it eventually pays off. Research reveals that rate of return on investment in HSE ranges from two to six folds. Novel/Additive Information: E & P companies in Pakistan are considered role models for HSE compliance. Multinational oil companies (MNCs) and non-Governmental Organizations have greatly contributed in this area which has set higher standards for the national companies (NCs) to follow.