Process safety management

Process safety management is the proactive identification, analysis, and evaluation of risks related to accidental releases of hazardous substances or process accidents that could occur as a result of failures in process technology, procedures, or equipment, and it includes prevention of such releases or accidents. It is applicable to the management of hazards associated with the chemical and physical properties of the substances we handle in our oil, gas, and energy activities.

Tier 1 and Tier 2 key performance indicators provide baseline performance information and are measured each year for a consistent overview of Company process safety performance. In addition, we monitor and report Tier 3 events for a better assessment of the critical barriers at facility level.

The monitoring and reporting of Tier 3 events provides an overview of the weaknesses in critical barriers at facility level. In 2019, the number of Tier 3 Process Safety Events (PSEs) reported was 4,379 (2018: 5,329).

The number of Tier 1 events in 2019 was the same as in the last two years: 4 events.

The number of Tier 2 events in 2019 decreased in comparison with 2018 data (2019: 7 events; 2018: 12 events).1A Tier 1 Process Safety Event (PSE) is a Loss of Primary Containment (LOPC) with the greatest consequence. A Tier 2 PSE is an LOPC with lesser consequence. A Tier 3 PSE is a so-called “near miss” not leading to actual consequences, or is not classified as Tier 1 or Tier 2. For a more detailed definition of Tier 1, Tier 2, and Tier 3 PSEs, see Definitions. We continued to perform detailed investigations of process safety incidents and used the outcomes in our learning process.

In Upstream, we focused our process safety efforts on monitoring the maintenance of safety-critical elements and completing regulatory inspections. Our operations achieved significant improvements in 2019: We completed almost 100% of work orders and all regulatory inspections.

Process Safety Events, Tier 1 and Tier 2

In number of events

Process Safety Events (bar chart)

In Downstream, we continue to develop our process safety management activities in the operating units based primarily on process safety information and awareness, employee qualifications, and constant monitoring of process safety performance using a comprehensive set of leading and lagging process safety performance indicators. This year, we completed our series of internal process safety management assessments with an assessment at the Petrobrazi refinery performed by a cross-site and cross-disciplinary team. We also focused our activities on process safety leadership and communication and on the ongoing assessment of the effectiveness of process-safety-relevant regulations in the field.

We began to implement process safety projects in Austria Upstream, adhering to the principle “operate according to needs, not what you are used to.” The goal of these projects is to create long-term value by mitigating safety risks and environmental impact. They aim is to reduce pressure, stored inventory, and operating equipment. In addition, these projects will allow us to save fuel, reduce emissions, and increase production wherever possible.

Sustainability Strategy 2025 target

Keep leading position in Process Safety Event Rate

Status 2019

  • 0.152The scope of the Process Safety Event Rate performance is limited to events and working hours from entities in the Upstream segment: Austria, Kazakhstan, Malaysia, New Zealand, Norway, Romania, Tunisia, and Yemen; in the Downstream segment: Refining and Petrochemicals, Gas Connect Austria.

Action plan to achieve the target

SDG 3 – Good Health and well-being (icon) SDG 6 – clean water and sanitation (icon) SDG 9 – industry, innovation and infrastructure (icon)
  • Continue consolidating Major Accident Event (MAE) scenarios for Seveso and offshore facilities as well as for other onshore facilities which meet the criteria of the Seveso III Directive in the Active Risk Management System (ARMS)
  • Perform process safety assessments in Downstream and operation integrity assessments in Upstream for verifying key risk control barrier status
  • Harmonize process safety KPI reporting across the Group in order to improve the measuring and monitoring process related to process safety, which in turn can be used to improve preventative actions, such as management system revision, training, and facilities engineering improvements

1 A Tier 1 Process Safety Event (PSE) is a Loss of Primary Containment (LOPC) with the greatest consequence. A Tier 2 PSE is an LOPC with lesser consequence. A Tier 3 PSE is a so-called “near miss” not leading to actual consequences, or is not classified as Tier 1 or Tier 2. For a more detailed definition of Tier 1, Tier 2, and Tier 3 PSEs, see Definitions.

2 The scope of the Process Safety Event Rate performance is limited to events and working hours from entities in the Upstream Business Segment: Austria, Kazakhstan, Malaysia, New Zealand, Norway, Romania, Tunisia, and Yemen; in the Downstream Business Segment: Refining and Petrochemicals, Gas Connect Austria.

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