Alarm Management in Offshore Oil & Gas: A Case Study
Return on Investment.
The operator achieved an average 10.46% increase in production efficiency across the assets that this was applied to, representing a production increase valued at £59.2 Million per year.
Overview.
Industrial alarm management is the process of designing, maintaining, and continuously improving alarm systems in process facilities so that control room operators receive only meaningful, actionable alerts. In offshore oil and gas operations, poor alarm management is a significant operational and safety risk - EEMUA 191, the industry's primary alarm management guideline, sets a maximum acceptable rate of one alarm per ten minutes per operator. The consequences of exceeding this threshold can be severe. The 1994 Milford Haven Refinery explosion, one of the most significant industrial incidents in UK history, found that operators had been dealing with alarms arriving every 2-3 seconds in the five hours leading up to the incident - a rate so overwhelming that critical warnings were lost in the noise.
Photograph showing the aftermath of the incident (HSE)
This case study examines how a structured alarm management programme, supported by Intelligent Plant's Alarm Analysis software, delivered a 10.46% increase in production efficiency across multiple North Sea assets - a production gain valued at £59.2 million per year in today's market. The findings build upon an earlier example where the same software helped an operator resolve an HSE enforcement action related to poor alarm performance.
Challenges.
The Problem: What Happens When Alarm Management Fails?
Missed alarms in this environment can result in plant trips, leading to:
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Loss of production
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Increased wear and tear on equipment during start-up and shutdown cycles
The criticality of this issue was highlighted when an operator received an enforcement action from the Health and Safety Executive (HSE) due to poor alarm performance. Addressing these challenges was not only vital for compliance but also for ensuring safer and more efficient operations.
Solution.
Implementing Alarm Analysis
Alarm Analysis tools were introduced to an oil and gas operator’s offshore platforms. The goal was to reduce the frequency of non-critical alarms and enhance the control room’s operational effectiveness. The success of this initiative depended not just on the tools but on skilled engineers implementing effective alarm management strategies. Note that Alarm Analysis was designed to help not just identify bad actors but to help in the process of resolving them.
Key Steps Taken:
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Alarm reports – reports were created which identified problem alarms and possible resolutions.
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Implementation of Alarm Rationalization: Unnecessary alarms were removed or reclassified, ensuring only actionable alarms were presented to operators.
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Operator Training: Control room operators were trained to respond effectively to the optimized alarm system.
Alarm Analysis is a powerhouse tool for monitoring Alarm KPIs on your asset
Conclusion.
Effective alarm management requires both the right tools and the engineering expertise to act on what the data reveals.
This case study highlights the remarkable benefits of integrating alarm analysis tools with skilled engineering and strategic implementation. By addressing alarm overload and enhancing response to critical events, the operator achieved a 10.46% increase in production efficiency, even in the context of declining fields.
For the example client, this translated into a production increase valued at £59.2 Million in today's (Jan/2025) market. This substantial gain underscores the effectiveness of pairing advanced tools with operational expertise, converting potential improvements into significant and measurable outcomes.
Potential for Other Operators Operator’s facing similar challenges can leverage these findings to:
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Improve operational stability
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Reduce production losses due to trips
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Extend equipment life by minimizing unnecessary start-stop cycles
Results and Impact.
The operator’s production data for 12 months before and after the implementation of alarm analysis was then analysed. Using figures from the North Sea Transition Authority (NSTA), the team compared total production volumes, expecting a decline due to the natural depletion of fields.
To their surprise, production in the first-year post-implementation was 10.46% higher than the previous year (averaged over all operator-owned sites’ individual first years) This unexpected result led to a deeper examination of production trends.
The operator not only satisfied the HSE’s requirements but also achieved substantial operational improvements. For this example client, this translated into a production increase across their assets which would be valued at £59.2 million in today's (Jan/2025) market.
Next Steps.
To replicate these results, operators should:
1. Conduct an alarm system audit.
2. Rationalize alarms based on operational priorities.
3. Invest in training for control room staff.
4. Monitor and adjust the system periodically to maintain efficiency.
Intelligent Plant’s Alarm Analysis app can help streamline this process, giving real metrics that can be tracked and used to drive improvements with actionable items in the reports.
Blog: What is Alarm Management in Industrial Settings and Why Does it Matter?