November 22, 2008

India establishes offshore safety regime in oil & gas sector

Union ministry of petroleum & natural gas has decided to notify Petroleum & Natural Gas (Safety in Offshore Operations) Rules 2008 for regulation of safety in offshore oil & gas exploration, exploitation, production, drilling and matters connected therewith, in exercise of powers conferred by Section 5, 6 & 7 of the Oilfields (Regulation and Development) Act 1948.

These rules will be applicable to all public sector undertakings, private and JV companies operating in territorial waters, contiguous zone, continental shelf and exclusive economic zone of India in offshore upstream oil & gas sector.

These rules would benefit the industry to enhance safety levels, bring uniformity in safety standards across all companies, minimize production loss or accidents and optimize use of precious oil & gas resources of India.

Oil Industry Safety Directorate, a premier technical arm of ministry of petroleum & natural gas, has been designated as competent authority to exercise the powers under the rules. It will develop HSE standards, conduct safety audits and carry out investigations to meet the requirements of these rules.

Since its inception in 1986, Oil Industry Safety Directorate has been doing pioneering work in improving safety in oil & gas sector both in onshore upstream operations and entire downstream sector namely refining, gas processing, storage and distribution, transportation through rail, road and cross country pipelines. It has developed 110 technical and HSE standards, conducted more than 2000 safety audits, trained more than 7000 personnel and carried out more than 200 accident investigations. With entrustment of responsibility of offshore safety, it will become the sole agency looking after the safety in all activities across the entire hydrocarbon chain.