2 Cairn workers in hardhats at sea

Operational and project performance

Our Project Delivery Process (PDP) is the well–established method by which we can ensure we understand and can control risks at key stages in our projects. During the oil and gas life cycle the PDP helps us maintain focus on what is important to the Company and apply good practice through the application of local and international standards.

During 2015, our PDP was applied to a number of complicated projects including our exploration and drilling programme in Senegal. This was especially important given our relationship with partners, one of which was acting as the well activities delegate.

In terms of Corporate Responsibility (CR) compliance we use Standard Operating Procedures based on international good practice as part of our CR Management System. We use the Cairn PDP to manage CR issues and apply these standards for all operated projects under our control. Specific project types (e.g. seismic, drilling) must meet defined criteria at designated ‘stage gates’. Each stage gate has defined actions and deliverables, which must be available and signed off by a ‘gatekeeper’ who is independent of the project. In this way, project integrity and performance are reviewed throughout the process and, where they deviate from standards, corrective actions are identified and implemented.

Typically, there are five gates for each project: Identify; Assess; Define; Execute; and Evaluate, with CR elements included in each gate. The elements take into account risks likely to be encountered in the project, with measures to avoid or mitigate them. These range from country-permitting submissions through to addressing more complex requirements, such as stakeholder identification and engagement during the planning processes, and compliance and performance monitoring during the operations themselves. We always aim for continual improvement, and in all projects we seek to understand any lessons learned so that we can use them in the next project.

Project delivery process chart

In projects that involve defined field operations we ensure that CR plans are in place. These include responsibilities during the project, Key Performance Indicators, and the key mechanisms we employ for CR management on the project.

Contractors continue to play a major role in delivery of our operational integrity and project performance. Seismic and drilling activities rely heavily on international specialist contractors to operate the rigs, vessels and aviation, and also for support services. These contractors can influence a wide range of CR performance areas, ranging from traditional operational safety through to our reputation in the environments in which we operate.

As part of our tendering process, we assess the capabilities of our contractors, including those managing activities on our behalf, in order to meet technical and health, safety and environment (HSE) specifications for our activities. For our most significant contractors we will also include pre-contract inspections of equipment, management systems and behaviours. This usually includes marine and aviation contractors, shore base logistics contractors and drilling contractors. In some instances we require independent acceptance audits before operations begin. We also maintain a senior management engagement programme with our most significant contractors, which aims to ensure that our values and the importance of CR are clearly understood.

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