Case Study

Safety Audit for Petroleum Terminal, India

Last updated: June 3, 2025

Overview

iFluids Engineering completed a Safety Audit for various terminals across India. All evaluations aligned with OISD guidelines, PNGRB regulations, Petroleum Rules, and relevant IS/IEC and NBC codes. The study also reviewed safety procedures, equipment integrity, and emergency preparedness. Recommendations were made to enhance safety, reliability, and risk mitigation strategies across all facilities.

Methodology

The evaluation process is structured, using an exhaustive Audit Checklist (as per IS 14489). During the audit, the safety management system’s existing compliance and effectiveness were evaluated. Click here to refer to the detailed Audit methodology

Outcome

The outcome of the safety audit and technical assessment reports highlights key gaps, risks, and improvement opportunities across process, utility, and storage facilities. Critical safety non-conformities were identified, including deficiencies in fire protection systems, emergency preparedness, and equipment maintenance. Recommendations focused on enhancing compliance with applicable standards, improving documentation, and upgrading engineering controls. The reports also proposed actionable design and operational improvements to strengthen overall plant safety and efficiency.

1. Safety Audit for Ennore Tank Terminals Private Limited

Safety Audit for M/S ETTPL, newly laid 24” and 16” pipelines from Marine Liquid Terminal to the storage tank terminal was conducted by a three-member Audit team. The audit team carried out field visits at the MLT jetty area, the Pipeline Corridor area at all critical locations, and a few other areas chosen randomly in the terminal. The documents and records were audited to check the compliance with the statutory, OISD, and BIS standards. The brief of every day’s findings was communicated to the client,t and their feedback was obtained at the end of each day. The team of auditees presented the overall observations to the client, i.e, ETTPL team, in the closing meeting, and the background of those observations and recommendations was explained.

Project Insights

  • These pipelines were inspected from the Jetty to the terminal along with the ETTPL team. Various documents, records, and available data were collected and reviewed
  • The following aspects were covered during this audit: Safety policy, Safety Organization, Education & Training, Safety Integrity of the pipeline
  • The pipelines involved the transfer of flammable materials, and the site activities were classified as hazardous. The report presented the results of these assessments, focusing on the risks associated with the introduction of the new pipelines.  
  • The Safety Report was prepared based on the guidelines provided in the Manufacture, Storage and Import of Hazardous Chemicals (MSIHC) Rules 1989 (Amended 2000). The report describes the Health, Safety, and Environment (HSE) hazards and effects arising from the receipt and transfer operation involving these new pipelines and proposed a proactive system for controlling these hazards, along with recommendations for improvement.
  • As part of the audit, for the safe operations of the newly installed pipelines, the existing facilities were audited
  •  Reports of previous Near Misses, Incidents, Investigations, and actions taken, along with reviews on the effectiveness of closed-out points, were maintained and made available.
  • Statutory compliance with both state and national regulations, such as PESO Licenses and Consent to Operate from the Pollution Control Board, was ensured for all ongoing operations.
  • First aid facilities were audited for their availability at designated locations.
  • Housekeeping standards were found to be satisfactory.
  • Inspections and checks of Personal Protective Equipment (PPE), safety harnesses, fire extinguishers, and other critical safety tools were carried out as planned.
  • Illumination levels across the facility were checked, and found that the records of these assessments were maintained.
  • Safe Operating and Maintenance Procedures, along with detailed Work Instructions, were documented and ensured to be implemented.
  • A robust Work Permit System was followed, covering hot work, cold work, excavation, confined space entry, electrical clearance, work at height, process isolations, and road safety-related activities.
  • A comprehensive Emergency Preparedness Plan and manual were developed, documented, and made readily accessible.
  • A structured Management of Change (MOC) system for process and plant modifications was found operational during the audit.

2. Safety Audit for Indian Strategic Petroleum Reserve Limited (ISPRL)

India, the world’s third-largest crude oil importer, has decided to set up 5 million metric tons (MMT) of strategic crude oil storage at three locations, namely, Visakhapatnam, Mangalore, and Padur, to ensure energy security. The safety audit process was carried out by the audit team members, accompanied by an ISPRL-nominated staff member. They conducted site visits to all areas of ISPRL to record observations. All queries and discussion points that were raised by the staff and higher management were appropriately addressed during the audit meeting

Project Insights

  • Housekeeping across the entire site was found to be good.
  • The Fire Clock, located at the entry of every process site,
  • Safety Committee Meetings were found to be held regularly, and close-out activities of previous Safety Committee Meetings were found to be completed.
  • Work Permit audits were found to be carried out by the fire inspector as per emergency protocol.
  • Handrails for the top platform were found to be missing, posing a fall hazard (opposite the Nitrogen system area), and this was brought to the notice of the client.
  • Loose materials on the platform were identified and removed due to fall hazard concerns.
  • The monkey/cage ladder extension found above the platform was found to be insufficient. It was recommended to provide at least five rungs above the platform.
  • Confined space gas testing procedures were explored for the use of motorized gas testing techniques. Training was recommended, and a recommendation suggesting that only authorized personnel were to be permitted alone to perform gas testing and certification for hot work and confined space entry was emphasized in the Audit
  • It was found that Permit to Work training was carried out, and personnel were certified. Permit handling personnel were authorized by the management.
  • A rescue plan for confined space operations was added to the Confined Space Permit as a prerequisite.
  • The adequacy of gas detectors was checked at the LPG mounded bullet, Shaft A, and Shaft B. Detection effectiveness was evaluated considering leak direction and wind conditions. A scenario-based analysis was conducted to ensure a minimum detection capacity of 80%.
  • Do’s and Don’ts for the LPG unloading area were provided in the local language.
  • It was found that verification of crude pipeline variable load spring supports was carried out annually.
  • Electrical light fittings above the HSD (fuel oil) tank were removed, and recommendation suggesting lighting arrangements were provided from outside the dyke area.
  • The possibility of hydrocarbon (HC) ingress into the stormwater drain system was identified. This was considered a potential cause for water body contamination in case of an HC leak and was brought to the immediate notice of the client.
  • It was found that the Health and Safety Policy was updated every three years.
  • It was found that the Illumination (lighting) surveys were conducted once a month.
  • Electrical installations near LPG, fuel oil, Shafts A & B, crude pumps, and metering areas were checked for compliance with hazardous area classification requirements. It was an added advantage of safety precautions, as it helped in locating the place of fire occurrence for immediate response.
  • The Entry Control/Head Count procedure that was implemented, with both computerized and manual token systems, was noted as a good practice for ensuring an accurate head count.
  • The Security/Camera Surveillance System was noted to be good in its Surveillance operation.
  • On interacting with the employees, it was found that all activities and operations were carried out by a team of well-experienced and knowledgeable personnel.
  • The Control Room Bypass Overrides Register and Work Permit Systems were found to be strictly followed.
  • Monthly mock drills and weekly fire drill training activities were found to be conducted and documented properly.