Value without compromise.

A Framework for Business Continuity to Provide High Availability in Floating LNG Operations

Pete Winn and Alex Lal

Velrada

How does business continuity planning help

achieve a resilient operation?

What changes with FLNG?

Why should we care?

What should we do?

Today’s agenda

Established in 2009, Velrada is an award winning, Australian-owned,

business and technology consulting firm with strong experience in

resources around the Asia-Pacific region.

Pete and Alex have delivered Business Continuity Planning

engagements for a range of clients in the Oil & Gas, Mining,

Engineering and Construction industries, and the Public Sector.

Our consulting in this area draws on strong capabilities in:

Operational Efficiency

Integrated and Intelligent Operations

Risk Management

Organisational Change Management

Analytics and Optimisation of Processes

Supply chain and logistics optimisation

Online Collaboration and Information Management

Pete Winn

Intelligent Operations SME

Alex Lal

Business Continuity &

Disaster Recovery SME

By way of introduction

RISK MANAGEMENT

Emergency

Management

(EM)

Business

Continuity

Management

(BCM)

Health & Safety

(HSEC)

Disaster Recovery

(DR)

A heavy focus and highly

mature function engrained in

the culture of the organisation

A mature practice

throughout Oil and Gas

backed up by solid

historical evidence

Well developed and

delivered supported by

legislation and license

to operate

Often overlooked and draws

together a number of functions

throughout the businessProvision of highly available

systems and technology

mature in O&G

The role of business continuity in supporting resilient operation

63%of a business

functions have a recovery time of less than 24hrs.

(Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)

47%of organisations do

not know the cost of business disruptions in the last 12 months.(KPMG: global Business Continuity Management Program Benchmark Study)

Organisations do not have an up-to-date business continuity or disaster recovery plan (Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)

1 3in

2weeksMore than half of organisations believe their ‘worst case scenario’ outage to be 2 weeks or more.(Gartner: Ten Best Practices for Creating & Maintaining Effective Business Continuity Management Plans)

Expectations vs. Reality

This is a new technology with a high degree of variability

and a limited knowledge base to support efficient operations.

With this in mind, can you still rely on identifying all the risks up front?

FLNG changes the game

Challenging cost

Environment Leading

to requirement for

constant offloading

in all conditions

New technologies that

aren’t understood in

new environments

Multiple concepts will

be realised leading

to a high variance in

operating vessels

Lack of support from

nearby onshore

facilities & supply base

ScenariosMitigation PlansRisks

Scenarios

Scenarios

Scenarios

Scenarios

Scenarios

What does this mean?

ScenariosMitigation PlansRisks

ScenariosMitigation PlansRisks

Recovery Strategies Planning

Framework

Level of

Preparedness

‘MITIGATE’

Possible

Recovery

Points

Effectiveness of Planning ‘REMEDIATE’

TIME

IMP

AC

T

Improvement

Normal

Deterioration

Getting it right

INCIDENT

A business continuity planning

framework shifts the focus from

reacting to specific known scenarios,

to planning based on what’s

important to the operation:

reducing recovery time.

Assess”Understand the scope of the operation and prioritise based on value chain analysis and maximum

acceptable outage”

Emergency

ResponseMedical

Business and Facilities Functions

OffloadStorageProcessingExtraction

Reliability &

Inspection

Control &

Operations

Supply &

Logistics

Marine

Operations

Production

PlanningSurveillance

Health and

SafetyContracting

Reservoir

Optimisation

Remote

AssistanceMaintenance Planning

Govern“Embed the framework define responsibilities, assign ownerships and embed in

your continuous improvement process”

Assess”Understand the scope of the

operation and prioritise based

on value chain analysis and

maximum acceptable outage”

Test”Check that the appropriate

strategies are in place and

understood throughout

the organisation”

Analyse”For each function map out the

critical human, information, physical,

system and process assets and their

interdependencies”

Plan”Identify and record recovery

strategies for a failure in each

asset competent of the

business function

CMS Outage

Another operator has suffered a

helicopter incident causing the

grounding of a significant

proportion of your fleet for safety

concerns, this has lead to a lack of

coverage for medical evacuation

and a shut down of operations. Helicopter

Vendor

Helicopter

Contract

Medical

Evacuation

Contract

Manager

Helicopter

Fleet

Fleet Share

Agreement

Contract

Analyst

No backup

process!

CMSPaper Copies

Detailed

Process

Instructions

Shared

Medivac

Manager ill!

No backup

fleet!

Single Vendor!

Fleet

grounded!

Little evidence of major incident planning. Processes are unclear or poorly

documented. Little or no understanding of which business processes or systems to

prioritise in the event of a major incident.Very Immature

Processes are defined and documented with some gaps, but are largely manual.

Information used to prioritise business processes or systems in the event of a major

incident is incomplete or not usedImmature

Processes are well defined but inconsistently applied. Monitoring tools in place but

not used proactively. Core business processes and systems can generally be

recovered within an acceptable timeframe.Somewhat Mature

Mostly resilient with some degree of process automation. System and infrastructure

monitoring tools in place and proactively used to anticipate/respond to BCDR

incidents.Mature

Highly resilient with a degree of process automation. Monitoring tools in

place and proactively used for future planning. Near-line BCDR capability

that is well-aligned to business operationsAdvanced

Realistic. Achievable. Build confidence early. Iterate. Buy in.

FLNG poses unique BC challenges.

The risks are substantial and have changed and

so should the planning in response to this.

Planning and preparation is key to reducing the

time to return to operations.

Framework approach leads to a quicker return to

normal operations.

Key takeaways

© 2014 Velrada Capital Pty Ltd.

All rights reserved.

The information contained herein is for

informational purposes only and

represents the current view of Velrada

Capital as at the date of the presentation.

Velrada Capital cannot guarantee the

accuracy of any information provided

after the date of this presentation.

Velrada Capital makes no warranties,

express, implied or statutory as to the

information in this presentation.

Thank you.

www.velrada.com

1300 835 723

info@velrada.com

@velrada

linkedin.com/company/velrada

Australia. New Zealand. Singapore.