Features
Piper Alpha and Titanic – Safety lessons for Oil & Gas Industry
By Captain Chandra Godakanda Arachchi
Master Mariner, Gladstone LNG Australia
S. S. Titanic was said to be unsinkable. Similarly the oil platform, Piper Alpha, owned by Occidental Petroleum, 110 miles from the Port of Aberdeen, operated in extreme weather conditions for most part of the year and, therefore, was considered indestructible. The sheer size of the structure also contributed to this view. The sinking of Titanic has been the maritime disaster of all time and the Piper Alpha disaster where 70 percent of the 226-member crew on board, in the North Sea, is said to be the worst off-shore oil platform tragedy of all time. A series of explosions caused some sections of 300-foot tall structure to collapse within three hours. It became a flaming ball of twisted metal.
Piper Alpha was producing 30,000 tonnes of oil per day, 10 percent of the British North Sea oil production. The shipping industry witnessed an unprecedented regulatory regime post the grounding of Exxon Valdez, in Alaska, in 1989, causing a massive crude oil spill; similarly Piper Alpha disaster led to the introduction of significant regulatory changes in the oil and gas industry in terms of safety improvement and managing “Permit to work” system.
Piper Alpha, which operated 12 years from 1976, was first built for oil production but modified for gas production as well. Piper Alpha was connected to a network of oil platforms (Claymore and Tartan).
Almost all survivors from Piper Alpha were those who jumped into the burning sea from a height about three hundred feet which required a lot of courage.
What really happed on 06th July 1988. Here is the story in brief!
It was just another summer night in North Sea, 06 July, 1988. Some 226 crew on board Piper Alpha were having another night shift with usual problems the control room had to deal with.
Piper Alpha had two gas pumps (centrifugal compressors), A & B, to boost gas pressure for delivering gas to Flotta, an island terminal off Scotland. There had been two work permits issued during the day shift, one for pressure safety valve (PSV) servicing and the other for overhauling compressor A; the work would have taken two weeks. The crew had removed the PSV for servicing and taken compressor A out of service only by isolating power, which is illegal. The industry now requires full isolation, key common lockout by workers, permit holder and permit authority so that everyone involved in work has to unlock before being able to start the compressor. Crew could not complete servicing PSV as expected by 1800 hrs and the engineers decided to postpone reinstating the PSV until morning and fitted a blind flange (metal plate) where the PSV had been removed. (It was probably not a pressure rated flange). The overhauling of the compressor A had not begun during the day shift, and this was noted in the work permit form. When the engineer concerned arrived in the control room to hand over the permits, the supervisor was busy and therefore he failed to inform the latter that the PSV was out of service. He, however, made notes on the permit form, returned two permits and knocked off for the day. Unfortunately, two permits got separated in the control room. There could have been many permits on that day due to a new gas line being installed during weeks. Piper Alpha was not shut down for gas line installation as the installation could be managed with control measures as stipulated. A critical aspect to note here is that nobody in the control room had an update of incomplete PSV work. In the mean time, the diesel fire-fighting pumps had been switched to ‘manual from ‘auto’ as a control measure to prevent divers who were at work being sucked in case the fire pumps started in ‘auto’ mode.
At 2145 hrs, the compressor B tripped and failed to restart despite repeated attempts by the control room. Now, there was another risk looming due to tripping the compressor. In case of failure to get the compressor started within a certain period of time, the platform runs the risk of losing gas pressure, which is required to run the gas generator. The consequence of shutting down the gas generator is huge with platform shutting down including drilling. There is also the likelihood of the drill head getting stuck. Getting everything back online is a time consuming and that involves a huge cost. Therefore with this scenario in mind, the shift engineer traced the permit for compressor A and noticed that overhaul work had not begun but failed to realise PSV was out of service due to the unfortunate separation of permits. At 2155 hrs, the supervisor assumed it was safe to start the compressor A and ordered reinstating power and got it online. As the PSV was located about five metres above the compressor, the crew failed to notice the missing PSV. As the compressor started at 2157 hrs due to the sudden rise in pressure, gas started to leak from the temporary blind flange. A huge amount of gas leaked and alarms were going off in the control room continuously; this was followed by an explosion. The supervisor immediately activated the emergency shutdown (ESD), which shut off safety valves (XVs) of the huge oil and gas production risers of Piper Alpha from sea bed, isolating Piper Alpha, but it appears that it did not shut down the connections to other network oil platforms. The explosion did rupture the fire walls in oil separator area, which caused an oil fire to erupt.
It was believed that at 2204 hrs only two crew members had been killed due to the blast. There had been similar fires in certain other rigs but they had been doused. When the fire started, fire fighting pumps should have started, but unfortunately pumps had been switched to ‘manual’ as was said previously. Two brave members tried to and start the pumps manually, but they failed and were never seen again. At this stage, emergency procedures simply collapsed and the Rig Manager who was supposed to coordinate the emergency from radio room sent a distress message, which was heard by the two nearby rigs, Claymore and Tartan. No attempt was made to announce the distress message over the public address system. No one told the crew what to do. Workers were supposed to gather at life boat deck and wait for instructions in case of emergency, but the fire prevented them from reaching the muster point and, therefore over 100 crew members waited in fireproof accommodation block beneath the helicopter pad and waited for helicopter rescue. However, the wind was blowing the heavy smoke over the helicopter pad and it was impossible for the helicopter to land. Accommodation block too gradually started to fill with smoke and even at this there was no attempt whatsoever to evacuate the crew to safety.
ESD had shut down oil and gas production, but oil in the separator continued to burn, and it eventually burnt itself out with the fire extinguishing itself, but Claymore continued to pump oil even though Claymore heard the May Day, and witnessed the flames of Piper Alpha from a distance. It was waiting instruction from on shore Occidental control room to shut down. Claymore repeatedly attempted to contact the shore control room for a long time but without success. Therefore the discharge pressure of Claymore and Tartan oil pumping fed oil through a damaged pipework to fire on Piper Alpha, adding more and more fuel to fire. Both Claymore and Tartan knew it was costly to restart the production from platform post ESD, and that perhaps led them to wait for instructions to shut down rather than taking decisions on their own.
There was another huge problem looming at 2218 hrs with oil fire heating the high pressure gas risers (on Piper Alpha) from Titan. Heat eventually damaged the pipe work of high pressure gas riser from Tartan, adding three tonnes of gas per second to already burning Piper Alpha. Most crew members were still alive. Some of them decided to jump into the burning sea from a ten-storey-high Piper Alpha prior to the second explosion. Those are the people who survived and 167 crew members were killed. More than 75% of the Piper Alpha facility was destroyed although it had been considered indestructible. Emergency response vessel Faros by luck happened to be there anchored closer to Piper Alpha. It attempted to start the fire pumps in a hurry, causing them to trip and this led to a 10-minute delay in operating them. The extendable gangway was unusually extremely slow and it took more than an hour to reach the deck with crew. It was too late. After the second explosion, Faros could not get closer to Piper Alpha due to intense heat and it manoeuvred away from Piper Alpha for its own safety.
Occidental Petroleum later destroyed the remains of Piper Alpha within a year, closed down the operation never to operate in the North Sea ever again. Investigators found that the safety culture on Piper Alpha had been superficial. CEO of Occidental Petroleum at a post-disaster press conference said that 06 July 06 was the first incident in twelve years since the commencement of operations, but the fact remains that a crew member had been killed in an accident four year prior to the Piper Alpha tragedy. That could have been an ideal opportunity for the company to review safety procedures on Piper Alpha. Had Occidental Petroleum been seriously committed to safety, the incident probably would not have occurred and 167 crew would not have been killed.
It is extremely important to comply with safety standards in oil and gas industry.
(The writer has nearly 25 years of experience in oil and gas industry in Australia)
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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