Case Study: Safety and Environmental Management System (SEMS) Audit

Helping operators identify and mitigate risks while meeting their legal obligations

Client: Fairways Offshore Exploration, Inc.
Asset type: Shut In Production Platform
Location: Gulf of Mexico

Client background

Fairways Offshore Exploration, Inc. participates in onshore and offshore exploration and development of oil and natural gas reserves in the lower 48 states.

Business challenge

Like all owners, lessees and operators in the Gulf of Mexico, Fairways Offshore Exploration, Inc. was required to conduct their three yearly SEMS audit, in accordance with 30 CFR 250 Subpart S. The audit is required to be conducted by a third party that has been accredited by the Centre for Offshore Safety (COS). Failure to conduct such an audit results in non-compliance with a regulatory requirement and potentially heavy fines for the owner/lessee/operator.

How Lloyd's Register helped

We responded rapidly to the request for the SEMS audit which was required within a tight timeframe.

First project deliverable was the Written Audit Plan, which had to be submitted for approval to the Bureau for Safety and Environmental Enforcement (BSEE).

The audit included the headquarters of Fairways, plus that of their operating contractors. The requirement for SEMS audit site visits is that 15% of the total facilities are visited to review implementation of the management system. The High Island 154JA was selected – a shut-in production platform off the Texas coast. The operations base of the operating contractor was also audited. After the field audit was completed, the headquarters of Fairways was visited for follow-ups, with a closing meeting held to discuss audit findings.

The audit report was completed and issued to the client before the 30-day deadline.

Results

  • SEMS audit was conducted within the required timeframe as specified by regulations.
  • Identified issues with the management system which will enable the client to strengthen their business and demonstrate continual improvement – e.g. identifying risk and improving performance.

Benefits

  • Client was able to work on addressing the key issues identified within the audit report
  • Raised awareness amongst clients top management of the workings of the SEMS
  • Client able to demonstrate compliance with the 30 CFR 250 Subpart S requirements.

Customer testimonial

"Lloyd's Register performed our recent SEMS audit professionally and comprehensively. The audit report was written very objectively and all findings were substantiated with beneficial evidence. The report will help us develop an effective corrective action plan. We are very appreciative for Lloyd's Register making what can be an undesirable experience a value added one." Pat Lee, P&A and Platform Abandonment Consultant/Coordinator Fairways Offshore Exploration, Inc..