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A JOURNAL FROM THE NORWEGIAN OCEAN INDUSTRY AUTHORITY

Keeping track of trends

Offshore worker Photo: Anne Lise Norheim
With changes in Norway’s petroleum sector both far-reaching and rapid, the PSA is looking at how operating parameters are altering and the potential impact on the working environment and safety.
  • Working environment

"We need to know more about how these frameworks are being transfigured and the effect that could have,” says Irene B Dahle in the PSA’s occupational health and safety discipline team.

The authority has followed up operating parameters in the petroleum industry over many years, including its earlier prioritisation of groups exposed to risk as well as various projects and supervisory activities.

This topic has also occupied a key place in the PSA’s main issues for 2021 and 2022: side by side with the suppliers and capacity and competence – the key safety respectively.

Through the annual RNNP process, the PSA also has a fairly good basis for saying something about the exposure picture for various groups and segments in the industry, both on land and offshore.

Structural

In recent years, the Norwegian petroleum industry has experienced a number of structural adaptations and efficiency processes.

The most important of these relate to new compensation formats and operating models, greater demands for flexibility and the introduction of new technology.

Observed consequences include lower manning levels offshore, looser forms of workplace affiliation and pressure on expertise, education and training.

The allocation of roles and responsibilities between operator and contractor, the organisation of work, and the individual’s employment terms are also in flux.

Interpretation

The PSA is constantly being confronted with new issues related to operating parameters, including interpretations of the regulations and whistleblower reports on availability and working-time arrangements as well as illegal temporary hires.

Following up how the companies manage HSE across a number of employers is also challenging, with forms of affiliation changing and complexity increasing.

Photo for Irene Dahle, PSA
"We need to know more about how these frameworks are being transfigured and the effect that could have,” says Irene B Dahle in the PSA’s occupational health and safety discipline team. Photo: Anne Lise Norheim

Rapid

“Big changes are happening, and at a relatively rapid pace,” says Dahle. “A high level of activity has speeded up this process even further, giving added relevance to many of the key issues.

“The sector is experiencing increased pressure on efficiency and production. It’s important to ensure that this doesn’t happen at the expense of HSE.

“These changes are creating unrest and concern. We’re receiving reports from employees in the industry, and see this when we conduct audits or meet the companies.”

Complicated

He says that the picture is complicated and that the PSA needs to know more about what changes to operating parameters involve and their significance for the working environment and safety.

To learn more about these aspects, it has launched an extensive programme of research and studies. Being implemented by Safetec in collaboration with NTNU Samfunnsforskning, Sintef and Oslo Economics, this work also covers possible consequences for employee participation and collaboration.

Particular emphasis is being given to changes in forms of affiliation, including temporary hires, and in contracts and collaboration – including compensation formats.

Due in early 2023, findings from the project will be used by the PSA in professional contexts and supervisory activities, and will be shared with the industry.

Examples of changes 

  • Forms of collaboration, contract models and compensation formats/incentives:
    • fully integrated drilling contracts, and alliance deals
    • increased use of activity-driven manning, such as campaign-based maintenance
    • greater use of performance-based compensation formats, with more of the risk transferred from operator to contractor
    • more competitive tendering for individual maintenance and modification assignments.
  • Manning reductions offshore through digitalisation and transferring functions to land, multiskilling/cross-training (often across players) and new forms of collaboration between operator and supplier.
  • Increased adoption of advanced technologies to complement and replace jobs previously done by people. In that context, the PSA sees ever-growing use of technologies which utilise machine learning. These can process large quantities of real-time and historical data rapidly and with greater resolution and precision – for drilling and well work, for example.
  • Looser forms of affiliation – increased use of temporary hires and flexible availability arrangements.