1 Introduction

The collective term “HSE”, as it is used in the petroleum activities, encompasses factors and considerations related to people, the environment and tangible assets. This report addresses topics linked to safety and working environment, but not pollution issues. A high level of safety and a good working environment naturally contribute to prevent emissions and discharges, and consequences for the environment. Therefore, the HSE work described in this report also contributes to protection of the external environment.

Chapters 2 and 3 of the report are descriptive chapters which provide an overview of the current HSE regime and the development that has taken place in the petroleum activities in recent years. Chapters 4 and 5 contain a review and discussion of development, challenges and follow-up of the risk scenario and the HSE regime in the Norwegian petroleum activities. Based on the review and assessments provided in Chapters 1–5, Chapter 6 presents an account of the Government’s main conclusions as regards ambitions and expectations for the further development and follow-up of health, safety and the environment in Norwegian petroleum activities.

1.1 The Government’s foundation

Petroleum activity is Norway’s largest industry, measured in value creation and revenue to the State. The industry has also maintained high performance and positive development over time when it comes to health, safety and the environment, although challenges remain. The major accident indicator was low in 2017, but development in the areas of psychosocial working environment and safety culture was negative, and there was an increase in serious personal injuries. Working conditions and how the work is organised have an impact on safety, working environment and health. The petroleum industry has the potential for major accidents, and several serious accidents and incidents have occurred in recent years. There were fatal accidents on Cosl Innovator in 2015 and Maersk Interceptor in 2017, and a very serious situation occurred in October 2016 with loss of well control on the Songa Endurance drilling rig. This was a gas blowout that could have led to ignition and deaths under slightly altered circumstances. Incidents such as these remind us that safety vigilance can never be relaxed. Therefore, the HSE situation in the petroleum activity must constantly remain at the top of the agenda.

The HSE regime in the Norwegian petroleum activities is founded on cooperation and involvement, and also on accountability, respect and dialogue between the three parties; the authorities, the employees and the employers. This is a system that has proven to be both effective and constructive, and it has certainly contributed to the prevailing high level of safety. The three parties have different roles in following up HSE work. The safety authorities supervise the industry’s follow-up of safety and working environment. This follow-up is based on accountability and a climate of openness, trust and respect between the parties.

The petroleum activity is characterised by change over time, both in terms of activity level, profitability and the player landscape. The Petroleum Safety Authority is tasked with following up the industry, to ensure that the industry continues the further development of high safety levels along with implementing efficiency measures. Many have expressed concern that this development in the industry may have put pressure on the cooperation among the parties, and that more decisive supervision from the authorities is needed. This applies in all phases of the petroleum activity, from licence awards and production to cessation and disposal.

The perception of status and challenges on the part of the authorities and parties is an important starting point for the discussion of the HSE situation and HSE development. Therefore, in 2016, as a key part of the work on this report to the Storting, the Minister of Labour and Social Affairs invited the affected parties and authorities to participate in a work group to discuss status, challenges and development as regards health, working environment and safety in the petroleum activities. The assessments made by this work group formed part of the basis for this report, as well as an important foundation for the industry’s further, continuous improvement work.

1.2 The Government’s assessments and conclusions

The Government’s assessments and conclusions in Chapter 6 are based on the reviews and discussions in Chapters 1–5.

The Government’s ambition is that the Norwegian petroleum activities shall be world leaders when it comes to HSE. This ambition is a clear signal that the petroleum industry cannot take a high safety level for granted, but must work to ensure continuous improvement. To ensure a sustainable future for the Norwegian petroleum activity, the industry must reduce costs and streamline operations, while simultaneously maintaining and further developing a high HSE level. The activities must have a long-term perspective, with parallel focus on good HSE results, resource management and value creation.

The various enterprises are responsible for the HSE level in the petroleum activities. The authorities’ follow-up comes in addition to, and is not a replacement of, the enterprise’s own follow-up. The transition that the petroleum industry has undergone in recent years also shows that the industry itself has the decisive influence on the cost level in the petroleum activities. Both the responsibility for and the key to achieving continuous improvement of HSE results and efficient operations therefore lies with the industry itself. This responsibility also entails following up the duty of care, both the operator’s follow-up of suppliers down through the chain, and the licensees’ follow-up of the operator.

A basic assumption for the current HSE regime is that the parties in the industry facilitate cooperation and participation in the two and three-party arenas, and the Government expects the industry to assign high priority to participation and cooperation among the parties. The significance of the tripartite cooperation depends on this having an effect on the two-party cooperation and on the HSE work in the companies. Therefore, the organisations in the tripartite cooperation must take responsibility for following up to ensure that discussions, exchange of experience and lessons learned are communicated and followed up among their members.

There is broad-based agreement that the current HSE regime has been very significant in the positive development and the high level of safety in the Norwegian petroleum activities. The Government takes its basis in the established HSE regime, which will continue to be important, given the high risk potential and the rapid technological development in the industry. Good utilisation of the latitude in the regime presumes that the three parties have mutual trust and respect for each other’s roles and responsibilities. The industry must emphasise the added value in the cooperation between the parties. The two-party and three-party cooperation is an important pillar in the regime, and must be reinforced and further developed. The Petroleum Safety Authority must be a strong and decisive supervisory body which must actively assess and highlight its use of policy instruments, and adapt this to the development in the industry. The development could indicate a need for the Petroleum Safety Authority to be more clear in how it uses its reactions and responses, and it must also verify that orders are followed up, as necessary.

Through their follow-up of the licensing system, the authorities jointly contribute to ensuring professional and competent players and a high safety level on the Norwegian shelf. Decisions regarding the HSE regulations can have an impact on efficient operations, and decisions concerning awards and transfers can also have significance for the safety level on the Norwegian shelf. The authorities must therefore ensure that we have professional and competent players on the Norwegian shelf. For this reason, the manner in which the Petroleum Safety Authority and the Ministry of Labour and Social Affairs utilise the criteria for award of production licences as regards HSE considerations should therefore be subject to regular review, to ensure that these factors are properly addressed. Important objectives behind the award criteria and how they are put into practice are to promote good resource management and a high level of safety.

Good expertise and capacity are preconditions for safe and prudent operations. During times of change, downsizing and cost cuts, the industry must ensure the availability of relevant and sufficient expertise, both through recruitment and through development of skills and competence.

Knowledge and new technology are developing rapidly in the petroleum activity. Technology development leads to increased safety and efficiency, but can also entail new challenges that the industry must handle. New technology that contributes to increased efficiency and safety must be put to use. The industry must make sure that the companies prioritise this effort, and that continuous HSE improvement takes place, also during times of major change and efficiency demands.

Continuous knowledge development and good documentation regarding health, safety and the environment in the petroleum activities is necessary, not least as a consequence of the technological development. Further development and follow-up of RNNP is an important measure in this context.

A continued commitment to research and innovation within HSE in the petroleum sector is still needed. There is a need for basic and applied research that contributes to new expertise, technology and innovation so as to prevent major accidents and improve health, safety and the environment in the petroleum activities. Development of knowledge and technology must remain a high priority for the future in the industry, in the organisations and in the companies.