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Prelude FLNG Loads Out First Cargo Since Fire

by Bojan Lepic| Rigzone Staff| Wednesday, January 18, 2023

Even though Shell has not confirmed any restart on its massive Prelude FLNG, Reuters reported that the Methane Becki Anne LNG tanker has begun loading.

The Methane Becki Anne was the first LNG tanker to berth at Shell’s Prelude floating LNG site off Western Australia since it was shut down after a fire.

According to Reuters, the LNG carrier vessel berthed at the Prelude plant on January 17, Refinitiv ship-tracking data showed. Refinitiv’s data also showed that LNG has already begun loading. read more

Peter Milne: The West Australian: Saturday, 9 February 2019 1:13AM

Shell has struggled through a series of safety missteps as it readies its cutting-edge Prelude floating LNG vessel for production.

Shell reported 17 incidents to the offshore safety regulator NOPSEMA between May and October 2018 that the regulator classified as dangerous occurrences.

The reports, obtained by WestBusiness through a freedom of information request, show the challenges facing hundreds of WA workers that have helicoptered about 500km back and forth between Broome and the 488m-long giant since it arrived from South Korea in July 2017.

One difficulty with floating LNG vessels is that an LNG carrier must berth alongside as the two vessels bob about in the sea, unlike floating oil production facilities that offload oil to a tanker a safe distance away through long flexible hoses.

In early May 2018 Shell tried to bring the LNG carrier Gallina alongside.

A tow rope to a tug failed when the 290m-long carrier was just 50m from Prelude and the operation had to be aborted.

That problem was caused by a tow rope that was incorrectly assembled.

Nine days later something as trivial as wrongly shaped plastic thwarted another attempt to load LNG on to Prelude.

It was thought the Gallina was safely secured to the Prelude by 16 mooring lines that ran through guides on the Prelude called fairleads. As the crew prepared to connect the LNG loading arms a mooring line failed and the Gallina was released and pulled away.

Afterwards it was found that all 16 lines had been significantly damaged by rubbing against sharp edges of nylon liners in the fairleads.

This seemingly trifling detail could have caused a “complete mooring failure” with “potential for serious consequences” if it had occurred later while LNG was being transferred.

Two weeks later the Gallina successfully offloaded its LNG and Prelude had gas to power itself and test its processing plant.

However, having gas on board the Prelude increased the risks Shell had to manage.

A flange leaked near the LNG loading arms as super-cold -162C LNG sitting at the bottom of a pipe caused it to contract and bend.

Another type of gas, hydrogen sulphide, was released when construction debris from the Korean shipyard was being removed from a tank and the area was evacuated.

In July a fire damper intended to keep gas from entering the air-conditioning system for the accommodation quarters failed to close when tested but was repaired quickly.

In August, Prelude lost all its power supply when a pump sending water to a gas-fired boiler tripped.

All workers on the Prelude and the attached 750-bed Posh Arcadia floating hotel went to their muster stations as the diesel emergency generators powered up to supply essential services.

But a transformer failed and the system to cover the deck with firefighting foam was left without power and unable to operate.

Other problems included a test of a system to cover the top of LNG tanks with a deluge of water in an emergency that found it delivered only half the planned amount of water as the system used undersized valves.

There was a small fire when dust in an oxygen cylinder valve ignited, leading to a muster of all personnel.

Newly installed insulation on a hot high-pressure steam line was seen smouldering and when the insulation was pulled away it caught fire. The insulation had been secured by combustible tape.

A Shell spokeswoman said the company had a rigorous program on Prelude to identify and manage risk in a controlled way.

“It is not unexpected for issues to arise during this phase of a project and it is standard practice to notify NOPSEMA,” she said. “We are proud of our safety and reporting culture.”

She said Shell encouraged workers to raise safety concerns.

TEETHING PROBLEMS

2017

July: Prelude arrives from Korea

2018

May: Tow line to tug fails, mooring lines fail

June: LNG loaded onto Prelude, gas leak, flood detection not working

July: Hydrogen sulfide leak, flooded machinery room, fire dampers did not close

August: No power to fire-fighting foam

September: Smouldering insulation

October: Small fire

December: 750-bed accommodation vessel for additional workers leaves, wells opened and gas flows to Prelude.

2019

February: Preparing for first export of condensate

SOURCE

RELATED

The links below are to a series of articles, many triggered by a well-placed whistleblower directly involved in the pioneering Royal Dutch Shell Prelude project. Includes articles by Mr Bill Campbell, the retired distinguished HSE Group Auditor of Shell International and another retired Shell guru with a track record of spotting potential pitfalls in major Shell projects. read more

By Ry Crozier : Apr 24, 2017

Implementing a subsea fibre optic link to underpin automation and remote monitoring aboard Shell Australia’s forthcoming Prelude floating liquefied natural gas (FLNG) platform means it will only need to fly people out to the plant “by exception”.

The Prelude project is being closely watched by the LNG sector as a potential model for future gas extraction from increasingly remote offshore fields.

Prelude’s operations will be monitored remotely from Shell Australia’s collaborative work environment (CWE) in Perth, which acts as the company’s main operations centre. read more

 “Shell attacked over plan to ‘litter the sea’ by leaving behind oil rig bases”

By Bill Campbell

Littering the North Sea appears a rather emotive statement by the Professor, quite appalling, completely unacceptable etc. He also links the plans for the concrete structures to an outsourcing of jobs from Glasgow which is unrelated to the structures.

Professor Russell previously wrote about the storage cells containing radioactive material also in an exaggerated way, the sludge contains naturally occurring low-level radioactive material which many studies declare does not pose a risk to persons or the environment. read more

Comment from Bill Campbell on the Energy Voice Article: Shell stresses importance of stable regulatory environment post-Trump victory

Under Trump, with the senate and congress to support him, we can look forward soon to significant deregulation in the US effecting positively onshore fracking, tar sands development, offshore Deepwater in the Gulf and a boost perhaps to Alaska drilling. One assumes the Keystone pipeline will go ahead and perhaps pipelines running from central US to East Coast for new LNG Plants to supply a Europe hedging its bets over Russian gas availability with Europe’s ongoing problems with Putin, sanctions etc. A significant increase in US output, leading to increase in global supply over demand could dampen oil price. Shell seems to have divested assets recently in the US in some of these areas to offset BG takeover costs so uncertain whether Trumpworld will be good or bad for Shell. read more

By John Donovan (updated 18 November 2016)

Energy Voice has announced that it has teamed up with Shell to “celebrate 40 years of Brent”.

A series of related “promoted” articles are being published. I take that as meaning Shell is paying for the articles. If this assumption is correct, the only history included will be of the whitewashed variety.

I doubt there will be any reference to the consequences of Shell’s appalling safety record on the Brent platforms, with falsified safety records, a “Touch F*** All” regime in regard to critical equipment maintenance, followed by the cover-up and the deaths on Brent Bravo, leading to a record-breaking fine. Will the unseaworthy lifeboats get a mention? Of course not. Shell continued to put production and profits before safety. Just read this index of related articles. read more

By Bill Campbell (Retired HSE Group Auditor, Shell International)

Comment on: Shell Australia’s giant Prelude floating LNG project likely to come on stream in 2017

(refer to 295-page Report by Economics and Industry Steering Committee issued 7 May 2015)

Much has been written on this website about FLNG, the Prelude specifically raising doubts about the validity of claims by Shell that FLNG risks are as safe as if not more so than conventional offshore installations. The Government report raised considerable concerns in relation to the safety of FLNG facilities. In particular, concerns were raised about the compact nature of the working environment offshore relative to the space afforded to an onshore LNG processing plant and that the facilities will remain manned during cyclonic storms. read more

Comment By Bill Campbell (Retired HSE Group Auditor Royal Dutch Shell International) on the article published in The Australian: “Shell chief Ben van Beurden backs FLNG program“

Interesting use of terminology by BvB, real material cash, what other type is there rather than funny money.

Prelude dumped from super star gamechanger status to important tool, an aspirin rather than a panacea for all ills, has certainly generated, and it appears will continue to generate, something of a debt mountain for RDS. $15 billion and counting has been allocated to finance the venture outflowing since at least 2007/8 at commencement of conceptual and then detailed design. I may be wrong, but I thought the production start date was given at the time when the first metal was cut in the yards in 2010, as 2016 – now it will be a least 10 years till 2018 before the project will start generating revenue. Our esteemed contributor London Lad, who knows a thing or three about project economics, will confirm, if he feels so inclined, that the breakeven point in any project is determined by how quickly capital spending is halted and operational revenue creation is started. The viability of the project per se, as to whether it will ever add value or be a financial millstone, is determined when production eventually starts by the rate of return of the capital invested, and here BvB hopes for real material cash, and lots of it, and hopefully by 2018 the cash will start to flow. Anybody guess how long it will take for this Project to breakeven? read more

I would have thought that Simon Henry’s position as CFO should now be untenable, in view of the apparent lack of effective financial governance in Nigeria while he was CFO. 

By John Donovan

A large number of press articles have appeared recently mentioning Ben van Beurden. 

Since these articles are presumably fed to the press by Shell’s PR team, and Shell is not a one-man company, I checked to see whether other Shell directors have appeared recently in press releases.

The results are somewhat curious. For example, searching for Matthias Bichsel on Google News shows that articles were published about him at least weekly until October last year, but the articles then stopped abruptly. References to Simon Henry seem to have dried up a few weeks ago – until mid-March there were articles on Henry on an almost daily basis, but recently there has been nothing. Harry Brekelmans seems to have had a low profile since his appointment, so it is harder to see whether any change has occurred. Andy Brown has almost as many press articles as Ben van Beurden.  read more

Stuart McKinnon – The West Australian on March 24, 2016

The Malaga factory of Swiss multinational engineering giant ABB will be the focal point for a five-year contract to provide services and equipment to Shell’s Prelude floating LNG facility off the Kimberley coast.

The Shell order includes the delivery of motors, generators, variable speed drives and low-voltage switchgear and guarantees service and lifecycle management of the electrical equipment as well as service and support for motors from third-party vendors. read more

From a Regular Contributor

Cancellation of both the Browse and Masela FLNG developments on the same day suggests that the issues about which Bill Campbell has warned may finally have won the day. 

If so, this is a huge climbdown for Shell, with several billion dollars in probable write-offs. 

It’s perhaps not surprising, given the plethora of warnings from technical sources that there were serious risks involved. 

Could Prelude be next to be axed? Parking a multi-billion dollar vessel in cyclone alley for 20 years never seemed like the most appropriate use of the pension funds invested in Shell… read more

Angela Macdonald-Smith: November 4, 2015

Royal Dutch Shell remains unequivocally bullish on prospects for liquefied natural gas despite the current market glut, pointing to several options for new supply projects after its planned $US70 billion ($97 billion) takeover of BG Group and plenty of new markets opening up around the world.

“The fundamentals of this market look as robust now as in the past to us,” chief financial officer Simon Henry told investors overnight Australian time, spelling out Shell’s expectation that global LNG demand will expand at 5 per cent a year to 2030, only modestly lower than the 8 per cent annual growth seen since 2000. read more

The Anglo-Dutch giant has never disclosed Prelude’s capital cost or start-up date

Peter Klinger: October 13, 2015

Just a year out from market expectations of first gas, Royal Dutch Shell is giving nothing away about the pace of progress at its revolutionary Prelude floating LNG operation.

Shell has sent out its regular update of the mega-project, which comprises construction of the industry-changing floating processing plant in Samsung’s Geoje shipyard in South Korea and a gas-condensate well and subsea pipeline network in the Browse Basin off the Kimberley.

Shell’s update said the second-last module had been installed on the Prelude floater, while in the Browse Basin the focus was on installing flow lines and pipeline end terminations. read more

By Wendy Laursen 2015-07-05 

Drydocks World has marked a major milestone by completing the world’s largest turret mooring system.

At almost 100 meters high, weighing over 11,000 tons and with a diameter of 26 meters, the turret will ensure Shell’s Prelude floating liquefied natural gas (FLNG) facility can operate safely in the most extreme weather conditions. 

The FLNG will be stationed in the Prelude gas field off the northwest coast of Australia. It will be Shell’s first FLNG deployment. The technology allows for the production, liquefaction, storage and transfer of LNG at sea, as well as the ability to process and export liquefied petroleum gas (LPG) and condensate. read more

Article by Angela Macdonald-Smith published by The Sydney Morning Herald: 8 May 2015

WA inquiry shines spotlight on floating LNG safety fears

Royal Dutch Shell and Woodside Petroleum have insisted that workers to be stationed on vast floating liquefied natural gas plants far off the Western Australian coast will be safe despite serious concerns having been raised in a parliamentary inquiry that they won’t be evacuated even for severe tropical cyclones.

A WA parliamentary committee examining the safety of floating LNG highlighted fears that workers would be thrown around within their accommodation modules during cyclones and could experience psychological stress at being unable to leave the vessel. read more

Email Dated 4 March 2015 from Mr Bill Campbell, Retired HSE Group Auditor, Shell International, to Mr Billy Gordon, a senior officer of Police Scotland

The Case against Malcolm Brinded CBE: 

Dear Mr Gordon

Firstly, I would like to thank you for your continual support especially over the period when the Fiscal Anne Currie was carrying out her investigation into the conduct of Shell and HSE officials (2009 – 2011), Appendix C of the attached refers. If you check your files you will bring to mind that early in 2012, I sent a joint communication copied to you and the Royal Dutch Chairman (RDS) Jorma Ollila and his Legal Counsel Michiel Brandjes. We discussed in some detail the contents of a conversation that took place shortly after Shell had issued a press release (Appendix A) with a complete denial of the claims made both on BBC Scotland TV and the oil and gas industry trade Magazine Upstream. As a result of this communication, and by April 2012 ,Malcolm Brinded was released from the employ of RDS, his release initiated by his employer. For the record, as you are aware I was not allowed to come to Aberdeen to make a statement or to convey the many pages of evidence in what is a complex business. Acting to the instruction of the Fiscal Anne Currie the evidence was passed by Grampian police to her. read more

From a BBC News article published 11 February 2015

Oil firm Shell has been criticised after an offshore worker was seriously injured when a compressed gas cylinder flew through the air and hit him.

The incident happened on the Brent Delta platform in the North Sea on 10 November.

The Health and Safety Executive (HSE) said Shell did not have a safe system of work, and issued the company with a prohibition notice.

Shell said action had been taken to address the issues raised by the HSE.

RELATED BBC NEWS ARTICLE PUBLISHED 14 June 2006

Shell ‘ignored accident warning’

Oil giant Shell has been accused of operating platforms in the North Sea at dangerously high risk levels.

Former senior manager Bill Campbell, who led a safety review, claimed the company ignored his warning in 1999 that an accident was bound to happen. read more

By John Donovan

Shell employees can potentially end up financially destitute or in jail for acts of negligence, for lying or falsifying records on behalf of Shell, or when giving misleading evidence on behalf of Shell in a court case.

The news story below – Oil Worker Faces Stiff Penalties After Airport Spill – comes after years of claims from Shell senior management about the top priority it gives to safety issues.

Shell appointed a safety Czar in July 2007. 

In 2008, it was discovered that even the life boats on a Shell North Sea Oil rig were unseaworthy. read more

(THE ABOVE SCREENSHOT IS FROM AN ARTICLE IN THE INDEPENDENT PUBLISHED SUNDAY 28 DEC 2014)

ARTICLE BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

Could you really trust ex Shell executives to run a railway network?

In the usual manner *TFA Malcolm the Tank Engine arranged for his apprentice Marc Carne to take over as CEO of Network Rail, but like his disciples Bjorn Berget, Chris Finlayson, Gregory P Hill, dear Marc is a follower, not a leader, how otherwise would TFA Brinded have recruited them as his obedient servants in the first place.

Outside the protected arena of Shell, and in the public domain, we sense their true worth. read more

By John Donovan

PRELUDE DESIGNED BY SHELL LAWYERS? MORE IMPORTANT ROLE THAN ENGINEERS? 

What will Bill Campbell make of the boasts from Shell’s chief lawyer Donny Ching, about the pivotal role of Shell in-house lawyers in the world’s first floating liquefied natural gas (LNG) facility, Prelude FLNG?

Extracts from an article about Donny Ching published by The Law Society Gazette on 5 December 2014:

Ching also believes that external law firms would have been no substitute for in-house lawyers in the work they did to build the world’s first floating liquefied natural gas (LNG) facility, Prelude FLNG. read more

By John Donovan

I am not sure that directly comparing the explosive potential arising from the Hindenburg and the Shell Prelude is strictly appropriate. However, what is beyond doubt is that these pioneering ventures both captured the attention of the worlds media and a loss of containment on the Prelude could potentially create another catastrophic event.

The Shell Prelude, by far and away the biggest vessel the world has ever see, is nearing completion in South Korea. A well placed whistleblower says that Shell management has ignored his warnings over shoddy work in the construction and outfitting that puts safety at risk. read more

These claims do not appear to be founded on fact but appear to be simply propaganda; …the Shell claims are fiction, wishful thinking. Royal Dutch Shell, bound by its general business principles of honesty and integrity, casts these principles aside by simply fabricating stories re the health and safety risks of FLNG, as a means to an end. 

An article by Mr Bill Campbell, retired HSE Group Auditor, Shell International.

By Bill Campbell

Is Shell prepared to stand by the public statements they make about FLNG risks? Not likely it appears 

In recent articles I challenged the unsubstantiated claims, with respect to the health and safety risks associated with FLNG, made by Shell on its websites. These claims do not appear to be founded on fact but appear to be simply propaganda. Shell would dearly wish that the risks of Prelude FLNG for example were quote on par with the risk levels of modern offshore installations, but this is a statement drawn from the ether, with no credible analysis to support it. 

The industry itself does not support the Shell euphoria with their more down to earth and sober assessment of the risks as we venture into the unknown by locating a hazardous substances plant on a vessel on the high sea for the first time.  read more

The New York Times magazine has published an informative article by Robert Sullivan about Prelude, under the appropriate headline:

“The Biggest Ship in the World (Though It Isn’t Exactly a Ship)”

The dangers associated with innovative  technology, with potentially disastrous consequences, are heightened following the Virgin Galactic SpaceShipTwo rocket ship explosion in the US.

To obtain an overall assessment on risks relating to Prelude, the article by Robert Sullivan is best read in conjunction with a series of articles by experts triggered by a well-placed whistleblower directly involved in the equally pioneering Shell Prelude project. Includes articles by Bill Campbell, the retired distinguished HSE Group Auditor of Shell International and Hans Bouman, another retired Shell guru with a track record of spotting potential pitfalls in major Shell projects. read more

By John Donovan 

After all the Royal Dutch Shell senior management promises to improve safety on Shell North Sea platforms, serious incidents continue to occur. 

EnergyVoice.com is reporting that Shell workers have today been evacuated from the Brent Alpha and Bravo platforms after a crane dropped a large container into the North Sea. 

Extracts

The container, which was in the process of being winched onto a support vessel when the incident unfolded, initially rested dangerously close to a mass of subsea pipelines which connect into the Far North Liquids & Associated Gas System (Flags) pipeline. read more

By John Donovan

I have received a comment about the most recent Bill Campbell Prelude article from another expert, a former Shell executive. 

I refer to Hans Bouman, the retired Groningen Gas Field Asset Manager for NAM, a joint Royal Dutch Shell/ExxonMobil operation.

Mr Bouman is the expert who in 2002 warned Shell/Sakhalin Energy internally of his concerns over the Sakhalin2 project, including an unforgiving schedule, a theme he returned to a number of times. 

Extract from a May 2002 internal email from Hans Bouman to Engel van Spronsen, Technical Director, Sakhalin Energy: read more

Final article in a series of five articles by Bill Campbell, retired HSE Group Auditor, Shell International, about risks relating to the Shell Prelude FLNG project.

Prelude FLNG risks are on par with modern offshore oil and gas facilities say Shell – but are they? Let’s discuss 

With the implementation of the recommendations post Piper A, turned quickly into legislation, the potential consequences of hydrocarbon releases have been markedly reduced, but Floating FLNG facilities cannot comply, other than that front end gas feed from the reservoir will be shut in and the process gas flared, huge amounts of volatile hydrocarbon liquids remain stored in the hull, which is also the primary structure supporting the process, utilities and the living quarters.

Prelude for example has in its hull, tanks with a capacity to hold 220,000 m³ of LNG, when the cryogenic liquid is returned to gas this equates to 132 million m³ of methane. It also has capacity for 90,000 m³ of LPG and 126,000 m³ of Condensate, with an overall capacity Shell states equivalent to 175 Olympic swimming pools. read more

A safety audit on the Brent Bravo platform in 1999 led by Bill Campbell exposed a “Touch F*** All” culture with safety records routinely falsified. The damning audit report was passed to then Shell EP director Malcolm Brinded, who made promises to remedy the situation that were not kept. Instead Brinded decided to put profits before safety. Hence the subsequent deadly explosion followed by a cover-up at the highest level of Royal Dutch Shell. It seems from recently published articles that despite all the pledges and the appointment of a so-called safety Czar, nothing has changed.

By John Donovan

In 2005, Shell received a record breaking fine of £900,000 at Stonehaven Sheriff Court, for a series of safety failings on the Brent Bravo platform, which led to a gas leak inside the giant platform’s utility leg and the tragic avoidable deaths of offshore workers.

A safety audit on the Brent Bravo platform in 1999 led by Bill Campbell exposed a “Touch F*** All” culture with safety records routinely falsified.

The damning audit report was passed to then Shell EP director Malcolm Brinded, who made promises to remedy the situation that were not kept. Instead Brinded decided to put profits before safety. Hence the subsequent deadly explosion followed by a cover-up at the highest level of Royal Dutch Shell. read more

Fourth in a series of articles by Bill Campbell, retired HSE Group Auditor, Shell International, about safety issues relating to the Shell Prelude FLNG project.

Why Floating LNG is such a risky business venture

It’s an old saying but it is one that is clearly understood, drop the basket and all may be lost. FLNG as a concept is not cheap, on the contrary, but what makes it economically attractive is that you have a reusable functional asset, a very large vessel, which being portable, can disconnect from its seabed anchor system when the field is depleted and relocate to begin all over again in another offshore gas field along with the redeployment of its seabed anchor system. No ongoing costs related to recovering pipelines, abandoning a fixed offshore installation, or removing plant and returning many acres onshore to the condition it was in prior to the construction of the onshore plant. read more

By John Donovan

It seems that the alarming articles we have published about the Royal Dutch Shell Prelude FLNG project, highlighting risks based on insider information and expert opinion, may have had an unintended impact. 

According to a Dow Jones news report published today, GDF Suez SA and Santos Ltd have both withdrawn from their plans to develop their own floating liquefied natural gas project off the northern coast of Western Australia – the Bonaparte venture.

The Capital.gr article points out that budget overruns at a number of LNG developments in Australia “have underscored the risks for international energy companies weighing new projects.” read more

Shell Germany had offered a free Kindle e-reader for 999 points to be earned when filling up. But also when buying a chocolate bar of € 1.29, this gave 100 points…. Buying 10 bars of chocolate and you had an e-reader. They ran out of Kindles after 3 hours!!!  Their website collapsed due to 40-fold traffic increase. Big disaster. Many people pissed off.

FROM AN OLD EP HAND

Shell Germany had offered a free Kindle e-reader for 999 points to be earned when filling up. But also when buying a chocolate bar of € 1.29, this gave 100 points…. Buying 10 bars of chocolate and you had an e-reader. There were ‘only’ 10.000 e-readers so they soon ran out, Germans are not crazy and can calculate. Now many disgusted customers.  Shell offered excuses to customers.

Good idea, not thought through and blind to an error of giving many points for a chocolate bar.

From their website:
 
http://www.shell.de/products-services/on-the-road/card-services/clubsmart/informationen-zum-neuen-shell-clubsmart-praemienprogramm.html
 
They ran out of kindles after 3 hours!!! 
 
Their website collapsed due to 40-fold traffic increase.
 
Big disaster. Many people pissed off. If only Shell would admit they screwed up people would understand. Now lot of wishy washy language. read more

“With hindsight you should revisit his CV printed out by the BG Group at the time of his appointment, a work of fiction that Hans Christian Andersen would have been proud of. You are right, your web site warned the World about his previous track record but such foresight is often ignored.”

Comment received from Bill Campbell, Retired HSE Group Auditor, Shell International

John

There was many years ago a principle put forward by LJ Peter in his 1969 book as to why things always go wrong in organisations.  Peter espoused that managers were oft promoted into positions that they were incompetent to handle. So it was with Chris Finlayson who was tracked up through the ranks holding on to the coat tails of his mentor TFA Brinded.  I used to call it the parasitical approach to development and promotion through attachment to a big powerful animal who was on an accelerated promotion curve the employee could avoid the normal HR assessment process safeguarded by his powerful mentor.  In return Brinded had a set of disciples who would be loyal and unquestioning and whom he could micromanage as he saw fit.  read more

So a 5 minute look inside the reported numbers paints a different picture, certainly a clearer picture and a picture that despite the hot air,  from a risk analysis viewpoint clarifies that there has been no significant reduction in risk despite the credit being taken by the industry and the Regulator.

ARTICLE BY BILL CAMPBELL (RIGHT), RETIRED SHELL INTERNATIONAL HSE GROUP AUDITOR

Fooling about with numbers.

As a shareholder I received a letter from Shell UK Country Chairman recently.  Under Health and Safety he takes credit for an important milestone achieved in April 2013 when he states our upstream business in the North Sea achieved an important milestone in a 50 per cent reduction in the number of hydrocarbon releases over the last three years in line with the industry commitment made in 2009.  In 2008 there were 83 major and significant releases and this reduced to 72 in 2009.  The Energy Minister and the HSE pronounced this at the time as a significant reduction but actually it only reduced mean time between releases from circa every 4 days to circa every 5 days, hardly a significant reduction. From formal risk analysis a significant risk reduction could only be claimed by an order of magnitude reduction that is from 83 to 8.  However, the politics of any reduction is to blow your trumpet whether the reduction is actually reducing risk or not. read more

Entirely the wrong man to entrust with an oversight function in relation to the safety of rail passengers. He was shunted out of Shell under a cloud. If that is a model of the Shell Prelude in the background of the photograph, it is not an encouraging omen.

Mining giant BHP Billiton has appointed former Royal Dutch Shell executive Malcolm Brinded to its board as a Non-executive Director.  He is also a Non-executive Director of the Network Rail Board in the UK, where he chairs the Safety, Health and Environment Committee. (Information published today)

Ironic bearing in mind the evidence assembled by Bill Campbell, the highly respected former HSE Group Auditor of Shell International confirming that Brinded already has the blood of Shell offshore employees on his hands. The evidence relating to Shell’s notorious “Touch F*** All” safety culture on the Brent Bravo North Sea Platforms while Brinded was in charge, includes tape recorded conversations with senior Shell officials. read more

Despite all promises to the contrary, Shell is still putting monetary considerations before safety. Just read some of the recent articles about Shell’s reckless conduct in offshore Alaska. It put the lives of offshore workers and the environment at risk to avoid a potential multimillion dollar tax bill. Personally, I do not believe enough attention has been drawn to the ethical issue of Shell deliberately putting peoples lives at risk in a calculated gamble.

Royal Dutch Shell Safety Last, not First

By John Donovan

Despite all promises to the contrary, Shell is still putting monetary considerations before safety.

Just read some of the recent articles about Shell’s reckless conduct in offshore Alaska.

It put the lives of offshore workers and the environment at risk to avoid a potential multimillion dollar tax bill.

This extract from a US News & World Report article published yesterday is typical of the many comments published elsewhere:

Notably, in September 2012, a Royal Dutch Shell drilling rig ran aground in Alaska as workers attempted to tow it beyond the state’s waters. A Coast Guard report released Friday found that the Anglo-Dutch oil company decided to move the rig – and insisted on doing so through dangerous stormy weather – to avoid paying new Alaskan taxes. The report also detailed myriad safety issues. read more

Now we have further confirmation that Shell was trying to dodge a multimillion tax bill. This time confirmation comes from the findings of an investigation by the Coast Guard division of US Homeland Security. There are going to be more Royal Dutch Shell executives looking for alternative employment… And Marvin Odum, Shell’s boss in the USA, should be top of the list.

By John Donovan

After Shell’s Arctic ambitions hit the rocks at the end of December 2012, Shell initially conceded that the ill-fated Kulluk drilling rig had left port under tow to avoid taxes.

Shell then backtracked. Shell’s chief executive Peter Voser rejected accusations that tax issues were a factor in the move.

We subsequently had confirmation from one of the honest people at Shell, Sean Churchfield, its operations manager in Alaska, that the first admission was correct. The Kulluk had indeed left port in order to avoid “millions” in annual state taxes. read more

Tales of the Unexpected – When the party ended with a bang!: 3rd in a series of articles by Bill Campbell (right), retired HSE Group Auditor, Shell International, about safety issues relating to the Shell Prelude FLNG project

Thus methane-air explosions are unpredictable, and by definition unpredictable events take you by surprise and can occur when you least expect them, and often when you are least prepared.  And unfortunately, from time to time, these unpredictable events can have catastrophic consequences as history tells us.

By Bill Campbell

LNG is natural gas (methane) refrigerated, the chilling process eventually turning the gas into a liquid shrinking its volume by 600  times. As we are aware from elementary physics, energy cannot be created or destroyed, so the whole economic model of the use and transportation of LNG worldwide, which really started in the 50’s and is due to exponentially expand in the next decade, is that the heat energy contained in one metre cubed of the liquid equates to six hundred metres cubed of methane.  So the physical characteristics of liquified natural gas is what makes it economically viable in its transportation over in some cases many thousands of miles from its source to where it will be used when converted again into its natural state.  But it’s this conversion that can make it so dangerous should it spill or leak into the atmosphere accidentally. read more

Tales of the Unexpected – 2^nd in a series of articles by Bill Campbell, retired HSE Group Auditor, Shell International, about safety issues relating to the Shell Prelude FLNG project

A Prelude to disaster?

Introduction by John Donovan

On 28 December I broke the news that a whistleblower had supplied me with photographic evidence to support their concerns over the safety of the construction of Shell’s Prelude FLNG flagship vessel.  The Prelude insider source alleges that packages are being installed on the vessel by totally unqualified personnel and accuses management of a failure to understand standards and regulations and claims the construction work would never pass UK standards. The source has been intimately involved in the project and is genuinely concerned that warnings issued to Shell management (and other parties) have been ignored and financial considerations are taking priority over safety issues. His warnings prompted a regular contributor, Bill Campbell, the retired HSE Group Auditor of Shell International to author articles on the subject that take into account his decades long experience and expertise. This is the second in an intended series. read more

By John Donovan

Any Shell shareholders diligent enough to wade through all the small print in the recently released Shell Strategic Report have grounds to shudder at the confirmation buried on page 8 that Royal Dutch Shell PLC mainly self insures its risk exposures. This information should be prominently displayed in large red text, flashing if that was possible.

The relevant section even cites the BP Deepwater disaster for which BP had no external insurance. As a consequence, one of the worlds biggest companies was brought to the edge of bankruptcy by just one calamitous event. read more

The revolutionary concept of offshore LNG installations (FLNG) is said to have economic and environmental advantages. A distinct disadvantage however is that the risks to health and safety of persons employed offshore on the LNG FPSO’s, such as Prelude, will be higher, when compared to onshore LNG plants of similar capacity, specifically the potential for loss of life; …loss of containment of hydrocarbons is likely to occur on Prelude during its operational life, either through flaws in the design, human error or failure to inspect and maintain. It’s almost inevitable.  It’s only to be hoped that the consequences of these losses never reach their full potential. 

By Bill Campbell, Retired HSE Group Auditor, Shell International

Prelude FLNG turns conventional wisdom on its head

The revolutionary concept of offshore LNG installations (FLNG) is said to have economic and environmental advantages.  A distinct disadvantage however is that the risks to health and safety of persons employed offshore on the LNG FPSO’s, such as  Prelude, will be higher, when compared to onshore LNG plants of similar capacity, specifically the potential for loss of life. 

This article concentrates on the perfect contradiction that exists between managing risks on an onshore LNG plant when compared with floating LNG. Whereas onshore plants, handling hazardous substances reduce risk by physical separation, such separation, although attempted on Prelude would not be accepted onshore because the separation distances are inadequate.  Prelude will store high quantities of cryogenic hydrocarbon liquids on the installation.  The heat energy of the liquids is enormous.  This contradicts the £6 billion or so expenditure in the North Sea, post Piper Alpha, to do as much as reasonably practicable, to reduce the heat energy available so that escalation of hydrocarbon events are limited such that the Temporary refuge (TR), normally the Living quarters, and including escape routes to the TR and evacuation from it, will not be impaired within one hour to allow safe evacuation of the facility.  The frequency of TR impairment should be demonstrated to be no more than once in 1000 yrs.  It’s a high standard to achieve.  read more

OFFSHORE EXPERT: “Having read this Prelude document a few times to take it all in, it seems to me that the main issue is how do you design for a 10,000 year event?” COMMENT: “I am not an expert and would only say that so-called 10,000 year weather events seem to be occurring annually at the moment. If Noah was still around, and residing in Southern England, he might well be looking for his carpentry tools.”

COMMENT FROM A RETIRED SHELL OFFSHORE MANAGER

John,

Regarding recent discussions on this website about Shell Prelude FLNG project, information available via this link provides useful input.

The 28 page section of a 75 page Shell document gives a description of the development and goes into great detail, providing answers to most of the issues raised by a fellow Shell Retiree.

Having read this Prelude document a few times to take it all in, it seems to me that the main issue is how do you design for a 10,000 year event?

The many issues raised with respect to cyclonic activity, waves, wind and the ability to weather vane are answered.  There are two thrusters located near the stern with a total power of 6 megawatts or 8,000 HP.  More than ample to ensure the heading of the facility is optimum at all times. Other issues with respect to Green house gas emissions during operations and other environmental are dealt with in detail. read more

Extract from an article published today: The incident was stood down later that morning, but inspectors have accused Shell of failing to have systems in place that would see equipment which is exposed to the elements checked regularly for rust. The notice – which was made public yesterday – stated: “You (Shell) failed to have effective arrangements to ensure work equipment exposed to conditions causing deterioration which is liable to result in dangerous situations is inspected at suitable intervals, and an adequate record of that inspection kept, to ensure that health and safety conditions are maintained and that any deterioration can be detected and remedied in good time.”

By John Donovan

In 2005, Shell received a record breaking fine of £900,000 at Stonehaven Sheriff Court, for a series of safety failings on the Brent Bravo platform, which led to a gas leak inside the giant platform’s utility leg and the tragic avoidable deaths of offshore workers. 

A safety audit on the Brent Bravo platform in 1999 led by Bill Campbell exposed a “Touch F*** All” culture with safety records routinely falsified. 

His report was passed to Shell EP director Malcolm Brinded, who made promises to remedy the situation that were not kept. Instead Brinded decided to put profits before safety. Hence the subsequent deadly explosion followed by a cover-up at the highest level of Royal Dutch Shell. read more

There is a striking similarity between Rolf’s case and the whistleblower activities of Bill Campbell, the retired Health & Safety Group Auditor of Shell International who warned Shell about evidence of false and misleading information in Shell Brent Bravo maintenance records, prior to the tragic, but avoidable explosion in which offshore workers were killed. Safety records had been routinely falsified and Shell had operated a notorious “Touch Fuck All” maintenance policy that put production (and profits) before safety.

By John Donovan

The plight of Rolf Wilborg Ex  Norwegian Petroleum Directorate regulator for the Norwegian sector offshore has been brought my attention.

There is a striking similarity between Rolf’s case and the whistleblower activities of Bill Campbell, the retired Health & Safety Group Auditor of Shell International who warned Shell about evidence of false and misleading information in Shell Brent Bravo maintenance records, prior to the tragic, but avoidable explosion in which offshore workers were killed. Safety records had been routinely falsified and Shell had operated a notorious “Touch Fuck All” maintenance policy that put production (and profits) before safety.  read more

In summary, and there was evidence in 1999 to support this to a degree, Finlayson saw himself as a victim of a brutal regime run out of Seafield House where the TFA mode was born and his MD Malcolm Brinded who was frantically doing everything in his power to suppress all this because he was seen by the Audit to be the principal architect of the demise in standards throughout the oilfield.  Finlayson in my book was weak, and ineffective, promoted in my opinion into a position he wasn’t competent or willing to handle.

EMAIL SENT 21 OCT 2013 TO A THIRD PARTY BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

Subject: Chris Finlayson

My dealings with Chris were a long time ago during an Audit in 1999.  This Audit uncovered remarkably bad behaviour in the then Shell Expro organisation stemming from the business drivers and messages coming from the top of the organisation.

I spent some hours in the presence of Aberdeen auditors trying to get Finlayson to retract his statements made to journalists and the BBC North reporter Colin Wight that the Touch F All concerns raised by workforce representatives were unwarranted whilst in fact the situation was worse, much worse than anyone outside the organisation could have envisaged.  Last December on his appointment as the BG Chief the Independent newspaper (Mark Leftly) run a article on Finlayson titled if I can remember BG Chief breached safety rules when he was at Shell.  Subsequently I wrote a couple of articles putting the meat on the bones of this which John Donovan published.  BG given the right to reply made no comment and to date have not requested the evidence to support although this was offered to them.
 
In summary, and there was evidence in 1999 to support this to a degree, Finlayson saw himself as a victim of a brutal regime run out of Seafield House where the TFA mode was born and his MD Malcolm Brinded who was frantically doing everything in his power to suppress all this because he was seen by the Audit to be the principal architect of the demise in standards throughout the oilfield.  Finlayson in my book was weak, and ineffective, promoted in my opinion into a position he wasn’t competent or willing to handle. read more

WHISTLEBLOWER INFORMATION SUPPLIED TO CHIEF SUPT. BILLY GORDON OF THE SCOTTISH POLICE BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL. INCLUDES SHELL INTERNAL DOCUMENTATION MARKED “STRICTLY CONFIDENTIAL”.

EXTRACT FROM ONE STRICTLY CONFIDENTIAL SHELL INTERNAL DOCUMENT – circulated to Chris Finlayson and Tom Botts

There was evidence of false and misleading information in maintenance records for safety critical equipment, for example the Brent Bravo ESDV which failed its leak-off test in April 1998 was recorded as ‘NO FAULT FOUND’.

EMAIL FROM BILL CAMPBELL TO SUPT. BILLLY GORDON, SENT 27 SEPT 2013. COPIED TO MICHIEL BRANDJES, COMPANY SECRETARY & GENERAL COUNSEL CORPORATE, ROYAL DUTCH SHELL PLC

From: [email protected]
Subject: Bundle C and D
Date: 27 September 2013 11:29:54 GMT+01:00
To: [email protected]
Cc: [email protected], [email protected]

This covers Emergency Shutdown Valves (ESDV), fire and gas detection systems designed to operate on ESDV in an emergency and unapproved temporary repairs.  This data is not disputed by Shell as being their data. This data supports the articles sent to you a few days ago. read more

ROYAL DUTCH SHELL PLC (COMPANY SEC MICHIEL BRANDJES) AND THE SCOTTISH POLICE (CHIEF SUPT. BILLY GORDON) HAVE HAD ADVANCE SIGHT OF THIS EMAIL AND ATTACHED INFORMATION FROM BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

From: Cambell
Subject: Articles
Date: 25 September 2013 12:33:02 GMT+01:00
To: [email protected]
Cc: [email protected], [email protected]

John
 
I want to keep up the pressure on Shell by the publication of these two additional articles that cover the hardware faults taken from Shell’s own data.
 
The Chairman wrote to me some time ago saying he agreed with the 2006 press releases, I understand his defence now is that he was misled at the time by Malcolm Brinded and his legal counsel Keith Ruddock.
 
I want to use the fact that the Chairman has not raised, and will not raise, any legal objection to these articles in this correspondence copied to the police, and the previous article re behaviours, in future correspondence with the HSE and the judiciary.
 
I will pass to all the bundles of evidence supporting these articles in due course
 
Bill read more

The first article is attached which I would ask John Donovan if he could kindly print this on his website on 11th September.  In separate correspondence I will pass you the Shell evidence from 1999/2003 which is then cross compared with the prosecution findings and the public inquiry.  In all, 4 or 5 articles will be published which will support the case that Director’s of Shell were culpable in relation to the deaths, and that HSE officials were, by the examination of their own evidence, involved with Misconduct in Public Office. Perhaps the most damaging will be… Shell accepts retention of mentally unstable Manager contributed to offshore deaths…

RECEIVED TODAY FROM MR BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL. MR CAMPBELL HAS ALSO SENT THE SAME INFORMATION TO ROYAL DUTCH SHELL AND GRAMPIAN POLICE. MR CAMPBELL IS A NORTH SEA EP PLATFORM SAFETY EXPERT, OFTEN CITED IN THE PRESS AND ON TV

By Bill Campbell

We approach the 10 year anniversary of the deaths of Sean McCue and Keith Moncrieff on Brent Bravo on 11 September 2003.  Evidence led at the public Inquiry insinuated they were in part responsible for their own deaths since they carried out work without a permit. During the recent anniversary of Piper Alpha I was approached by a number of journalists to make comment in general re the effectiveness of the safety case regime and I plan to publish a number of articles and provide them with the evidence that they were misled in 2006, a number of journalists lost their jobs, or left their current employer, for daring to go up against the mighty Shell, so I can assure you there is no love lost.  After the investigation by the Procurator Fiscal – read more

As for Commander Odum, he of the theatre of Operations, only a marine incident etc school he was doomed not by the grounding of the good ship Kulluk, but in the lie telling that followed.  It was not I fear just poor Lawrence of Alaska who suffered from this misadventure. 

COMMENT RECEIVED FROM BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL:

Dear John

It was not a surprise to me that Simon Henry was not in the running, the Head Shed watchers of this website would have realised that he carried heavy baggage from the reserves affair, also Shell does not appreciate the washing of its dirty linen in public, the stories for example from the lips of Simon that Pastor Phil (did he have an out of spacesuit experience when he passed through the heavenly layer on his way back to ground at Maastricht and was thus converted) was carrying a huge chip on his shoulder because he was not an Oxbridge man, who knows.  Henry, as the Bedouin are fond of saying say, was outside the tent pissing in, an unforgivable sin. read more

At that point, when you send a letter in your name knowing that it is designed to deceive, you have lost your integrity and join previous Shell senior executives, such as Jeroen van der Veer, who also gave in to the dark side of Shell. Bill Campbell, the retired HSE Group Auditor of Shell International has confirmed that the same internal investigation smokescreen was used in respect of the Brent Bravo deaths scandal.

From: John Donovan <[email protected]>
Subject: OSSL DEBACLE
Date: 10 June 2013 09:32:04 GMT+01:00
To: [email protected]
Cc: [email protected], [email protected], “[email protected] COMPANY” <[email protected]>

Dear Mr Crothers

I am writing to you in connection with your response letter dated 28 May 2013 to Deputy Clare Daly TD, a member of the Dail, the Irish Parliament.

As you will recall, the subject of the correspondence was OSSL, the company formally employed as a “Mr Fixit” by Shell E&P Ireland Limited. read more

The crisis in my book, and we are far from the endpoint in this, is that RDS officials lied in that the decision to move Kulluk was not related to tax avoidance when it was.  Perhaps that is why the RDS CEO has taken a closer interest in his family and the sustainability of his future.

ARTICLE BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

In the new Shell, that which developed in the days of post transformation, group dancing in that nice hotel near the Het Loo Palace, with the dear leader Watts arriving from space etc around the same time, who can forget those heady days.  Is that when to lie and deceive became the norm in the head sheds of The Hague. Is that when the growth of VP’s started, not the Joe Biden variety, the Shell model, we currently appear to have more VP’s than indian meals sold in Bradford on a Friday night. read more

“…why spoil a good story by the introduction of facts including the facts about Shell’s great Alaskan misadventure for example…”

COMMENT RECEIVED FROM MR BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL RE OUR ARTICLE ABOUT SHELL EXPLORATION MANAGER ROLAND SPUIJ (PERSON ON RIGHT)

Re your article: Shell exploration manager Roland Spuij – deluded or ignorant?

Deluded and or ignorant, no, Mr Spuij is just reading from the script, repeating the standard Shell propaganda that Safety is our No 1 priority and will never be compromised, despite any facts to the contrary.

Although as he says Shell were not involved in the Transocean Deepwater Horizon disaster – according to Peter R Voser a disaster that Shell in any case would have avoided due to its superior standards – he fails to mention the Transocean SEDCO 711 incident when this mobile drilling unit had a near blowout whilst operating in the North Sea on behalf of Shell – you covered all this in detail at the time on your web pages. read more