Risk-Based Cost Benefit Analysis of Offshore Resource Centre to Support Remote Offshore Operations in Harsh Environment

Md Samsur Rahman, Bruce Colbourne and Faisal Khan

Reliability Engineering and System Safety, 2021, vol. 207, issue C

Abstract: Marine Logistics support during regular and emergency operations in remote North Atlantic regions is risky due to longer helicopter flying distances and extreme environmental conditions. In this paper, the safety and economic aspects of the previously introduced concept of an intermediate offshore resource centre (ORC) are evaluated. The ORC goals are to provide an intermediate helicopter landing station and a forward staging area for emergency response. Among many advantages, an ORC mitigates the logistical risk associated with the extended distance from shore support by reducing the response time in the case of accidents. This paper presents a risk-based cost-benefit analysis of the ORC. A probabilistic loss function model is developed based on the costs of historical offshore blowout incidents and their corresponding response times. The cost and benefit model is simulated in a probabilistic framework using a Monte Carlo simulation. The developed methodology and model help to assess the financial viability of an ORC in order to assist in informed decision-making regarding risk reduction measures.

Keywords: Risk Analysis; Offshore Logistic Support; Loss Modelling; Offshore Support Centre; Risk-based decision; Offshore Safety (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reensy:v:207:y:2021:i:c:s0951832020308322

DOI: 10.1016/j.ress.2020.107340

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