Selection of Failure Frequency and its Impact on Risk Assessment – A Case Study from Plot Plan Optimisation

Abstract

Facility Siting is an important phase of project development. A critical stage is plot plan optimisation, where significant potential hazards are eliminated due to equipment spacing. In addition to ensuring appropriate compliance with minimum spacing requirements, occupied building studies to achieve compliance with the requirements of API 752 and API 753 could also be undertaken to optimise safety outcomes. The studies are done in three stages, where the first stage is hazard identification, second stage is consequence assessment and the third stage is risk assessment. Third stage assessments are only carried, if the consequence based siting recommendations are not practical to implement. This paper presents the challenges in estimating risk due to process hazards with a focus on selecting right event likelihood data. A comparison is presented on the variation in predicted risk levels based on equipment failure rates and leak frequencies. Case study of a plot plan optimisation study is undertaken with DNVGL Phast Risk and the variation in risk levels up to two orders of magnitude are recorded. Challenges such as adaption of data for local conditions, consistent definitions of failure, sample size of data, applicability of data play a significant role in identifying and correctly quantifying the risk levels. Such challenges and its impact on risk quantification are presented in this paper as well as its impact on facility siting.