AB Oil & Gas Engineering Company Case Study - Engineering Assignment Help

Assignment Task

Question 

Briefing to the Board of Directors on Risk, HSE Management, Legislation and Responsibilities.

You have seen how there can be a range of pressures on senior management in the energy sector that can conspire to make them focus on money at the expense of safety. This is not new. Indeed after the London Underground King’s Cross Fire in 1987 the Inquiry discovered that across the whole organisation there wasn’t anybody in a senior position responsible for health and safety. In those days corporate manslaughter legislation had no teeth and the difficulty of identifying an individual who could be held responsible as “the controlling mind” was not easy. The Corporate Manslaughter and Corporate Homicide Act (2007) went some way to redressing the balance, and the potential sentences for both organisations and senior managers/directors were substantially increased in the 2016 Sentencing Guidelines for Health & Safety & Corporate Manslaughter, and the 2018 Sentencing Guidelines for Manslaughter. See for example Breakell and Miles (2018). A very large firm can face fines of £10 million or above, and individual directors 2 years imprisonment or even longer if convicted of gross negligence manslaughter. All Boards of Directors should therefore be aware of their responsibilities under the law, and since individuals can be prosecuted they should take this seriously. But as Haynes (2018) has shown it isn’t just Health and Safety risks that they need to consider, there are a great variety of things that can go wrong and in an unfamiliar setting these need to be understood. This exercise is deliberately open-ended and allows you to demonstrate your own understanding for what has been taught, supported by good research. It would be well worth checking the reputable search engines and directories that are available to you as UEA students on the Study Guide page at Henderson (2018), (particularly Knovel). The scenario suggests that you are preparing resources for somebody else to use. This should force you to provide enough information in addition to the resources that allows this person to understand what they are presenting. In terms of a target audience we are quite happy to role play being the HSE Manager when assessing your submission.

The Scenario
ABCEng is a European-based integrated energy company. Until recently, their operations in UK comprised 3 gas-powered electricity generators. However, they are seriously considering acquiring some gas production assets; which naturally they will use to supply gas to their own facilities. The specific assets comprise a gas field which has been producing for 20 years from one manned compression platform called the Swordfish platform, and three Normally Unattended Installations. There are also two smaller fields in the area, which could be developed using subsea development or minimum facilities monopods tied back to the compression platform. A 24” main gas pipeline runs from the compression platform 35km to an onshore gas processing facility operated by a different company. The pipeline operates in a dry state; i.e. dehydration of the gas stream takes place offshore. It was subject to an intelligent pigging operation last year, and found to be in a satisfactory condition for at least another ten years of operation. The HSE manager for ABCEng (UK) PLC is concerned that her fellow directors on the UK subsidiary board of directors do not fully appreciate their responsibilities and accountability under UK law, particularly in relation to the management of Major Accident Hazards. She has commissioned you to prepare a high-impact, informative and persuasive presentation and briefing paper, which she can use at a forthcoming Board Meeting. Her overall objective is to persuade the directors that they will need to undergo a specific two-day training programme, covering both their legal HSE duties under UK law and their key role in the successful management of HSE; and in particular process safety and the management of Major Accident Hazards. She sees this as essential before they make a final decision about acquiring the assets but anticipates resistance from the Board. She also hopes that this will help them be better prepared for the “data room” exercise. 3 Please prepare draft materials for her review / comment.

To help prepare for work on the deliverables you might complete the following:
a) Study the session materials on Business Risk on Blackboard and study this brief.
b) Research the relevant legislation.
c) Consider the risks associated with the new areas of expertise they are moving in to.
d) Identify a number of major areas of concern. Think creatively about good ways of emphasising to the Board some of the consequences of being poorly informed.
e) Decide on your approach and the resources you will provide. Although she has booked a 60-minute slot she anticipates a no more than 15-minute presentation allowing time for discussion. 

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