Case Study

Safety Audit for Refineries, India

Last updated: May 5, 2025

Overview

iFluids Engineering successfully executed Safety Audits across multiple refineries, including Nayara, IOCL Haldia Refinery, and Numaligarh Refinery Limited. These critical assessments were conducted in full compliance with OISD-GDN-145, IS-14489: 1998, ISO 19011 standards under section 41 of the Factory Act 1948

Methodology

Step-by-step external safety audit process infographic for refineries, including scheme planning with audit checklist and plan, on-site procedures with opening conference and audit steps, and final report and follow-up with corrective actions and summary report ideal for industrial safety audit workflows

Objectives

Infographic showing ten key objectives of an external safety audit, including importance of safety audits, major safety challenges, PSM effectiveness, emergency preparedness, regulatory compliance, asset integrity, contractor safety, leadership and safety culture, audit insights, and continuous improvement, arranged in a circular layout
Key Objectives of Safety Audit
  • Importance of Safety Audits – They help to identify risks, process improvements, safety upgrades, operational improvements, and more.
  • Major Safety Challenges – Addressing process hazards, emergency preparedness gaps, and regulatory compliance issues.
  • PSM Effectiveness – Monitoring Prevention of Incident, Equipment Reliability, and Risk Minimization
  • Emergency Preparedness –  Improving fire safety, disaster response, and staff readiness.
  • Regulatory Compliance – Organizations need to comply with OISD guidelines, PNGRB regulations, Factory Act, etc., both nationally and internationally, to remain in compliance and avoid legal repercussions.
  • Asset Integrity – Keeping key infrastructure working, preventing failures, and improving safety.
  • Contractor Safety – Creating strong policies and training to protect the third-party workforce.
  • Leadership & Safety Culture – Building commitment, awareness, and active reporting of issues.
  • Audit Insights – Identifying gaps, root causes, and their impact on operations.
  • A commitment to continuous improvement – Recommendations relative to the regulatory landscape and safety systems can engender ongoing improvements in regulatory compliance and risk management.

Advantages of External Safety Assessment

  • Impartial Assessment of Safety Mechanisms – An external audit offers an unbiased and objective evaluation, identifying safety gaps that internal teams might miss due to familiarity or bias.
  • Benchmarking against Industry Standards – As an external auditor, they have experience from other industrial sites, enabling the organization to compare its safety practices with best practice on a national and international basis.
  • Validation of adherence to laws and regulations – It helps regulatory compliance with all statutory requirements (such as OISD, PNGRB, Factory Act, etc.) and lowers penalties or natural consequences.
  • Detection of Concealed Dangers – As Auditors systematically review operations, facilities, and documentation, they help uncover potential risk areas that may be hidden during regular inspections.
  • Enhanced Risk Management – Insights from the audit empower the organization to preemptively remediate weaknesses and enhance risk mitigation plans.
  • Enhanced Process Safety and Reliability – Audits assist in strengthening the integrity and reliability of plant operations by identifying weaknesses in systems, including interlocks, alarm management, and maintenance practices.
  • Promotes a Culture of Safety – The process also promotes engagement and awareness at all levels of the organization, with a need for a strong safety culture.
  • Enhancing Our Preparedness to Respond to Emergencies – Auditors examine emergency response systems, drills, and the availability of resources, looking to ensure that the organization is adequately prepared for emergency situations.
  • Management Decision Support -The audit report provides data-driven insights and prioritized recommendations to help leadership make informed decisions on where to invest in safety.

Outcomes

The project successfully demonstrated a strong commitment to safety, with well-established systems aligned to industry standards. The audits identified improvement areas through clear, prioritized recommendations

  • Positive Safety Culture: The site showcased a robust safety culture, including documentation, work permit systems, and leadership engagement in safety programs.
  • Regulatory Conformance: Most systems & facilities were compliant with the statutory guidelines of OISD, Factory Act & Environment Protection Rules.
  • Process Safety Maturity: Robust implementation of safety protocols, including systematic housekeeping, incident investigation processes, and periodic medical checkups for employees and contractors, was noted across multiple units.
  • Identified Gaps: Although the strengths were diverse, a few areas requiring improvement were identified.
  • Recommendations Issued: Deviations were identified, cited as statutory non-compliance (Category A), standard non-conformance (Category B), and acceptable engineering practice (Category C).

Safety Audit for Nayara Energy Ltd

A comprehensive safety audit project was previously conducted in 2016 under the name Essar Oil Limited at the Vadinar Refinery. This project was executed by OISD-GDN-145, IS 14489:1998, ISO 19011, and Gujarat Factory Rules (GFR) 68-J under Section 41 of the Factories Act by a multidisciplinary team of auditors. Nayara Energy Ltd, operates a 20 Million Tons Per Annum Refinery in Vadinar, 40 km from Jamnagar City. The Refinery is completely integrated with its committed Power plant, Port, and Terminal facilities. Crude oil is imported by sea in VLCCs (Very Large Crude Carriers) and is pumped through a Single Buoy Mooring (SBM) facility to storage tanks located in the Crude Oil Terminal (COT) situated about 9 km from the seashore. From here, Crude oil is pumped to the Refinery, which is located about 10 km from COT.

Scope of the Project

  • Verification and certification of Environment compliance reports, which have been periodically submitted to GPCB, CPCB,and MoEF
  • The scope of the audit should extend to the facilities within the jurisdiction of Nayara Energy Limited, including Jetty and associated facilities at Vadina,r including Power plant & CHS, PRU , Poly propylene plant
  • Pre-audit checklist to be communicated & prefilled in consultation with the auditee
  • The scope covers management policy, leadership, training, design aspects (Process, Mechanical, Electrical), plant layout, procedures, asset integrity, emergency response, PPE standards, incident records, MOC, PTW, HAZMAT management, industrial hygiene, environmental management, contractor safety, and related systems.
  • The audit team should comprise 6 auditors (Chemical, Mechanical, Process safety, Electrical and Occupational safety, and Environment discipline each), carried out for 5 days, and Auditors must be physically fit for effective site inspections during deputation

Safety Audit for Numaligarh Refinery Limited (NRL)

Numaligarh Refinery Limited (NRL), a Government of India enterprise located in Assam, operates an extensive facility encompassing Crude Distillation Units, Vacuum Distillation Units, Delayed Coker Units, Hydrocracker Units, Motor Spirit Plants, Hydrogen Units, Captive Power Plants, Utility Plants, Boiler Houses, Electrical Systems and Substations, Sulphur Recovery Units, Effluent Treatment Plants, Oil Movements & Storage, and the Numaligarh Refinery Marketing Terminal. Key installations also include the Coke Calcinations Unit, Wax Solvent De-oiling and Hydrofinishing Units, Automatic Wax Slabbing & Packing Unit, Dehydrotreating Units, LPG Mounded Bullets, LPG Bottling Plant, Road Loading Gantry, comprehensive Fire & Safety systems, Laboratories, Warehouses, Maintenance Shops, Occupational Health Centers, and Pipe Racks. All operations are rigorously audited to comply with the MSIHC Rules 1989 , IS-14489, and MAH Rules 1997, ensuring world-class safety, environmental stewardship, and operational excellence at NRL.

Scope of Work

  • The Safety Audit was conducted across all process units in accordance with MSIHC Rules 1989, IS-14489, and MAH Rules 1997, evaluating the Safety Management System and recommending improvements based on national standards, international codes, and best global safety practices.
  • Safety reports were submitted as per the Schedule
  • The Audit team had experts from Mechanical, Chemical, Electrical, Instrumentation, and Safety disciplines and completed the site inspection in 3 working days
  • The Audit team prepared & submitted the Safety Report as per Schedule 8 under MSIHC

Safety Audit for IOCL Haldia Refinery

Haldia Refinery, a key facility under Indian Oil Corporation Limited (IOCL) located in Purba Medinipur, West Bengal, is undertaking a comprehensive Safety Audit as per the MSIHC (Manufacture, Storage and Import of Hazardous Chemicals) Rules for the years 2019–20 and 2020–21. This extensive 24-month audit focuses on ensuring full compliance with IS:14489 standards, encompassing hazard identification, risk assessment, emergency preparedness, and safe handling of hazardous chemicals across the refinery’s operations. Conducted by qualified experts, including DGFASLI-accredited auditors, the initiative underscores IOCL’s ongoing commitment to industrial safety, regulatory compliance, and proactive risk management across its high-risk process units.

Scope of Work

  • The safety audit was completed across all process units, utilities, and hazardous chemical storage areas at IOCL Haldia Refinery.
  • The audit was meticulously performed by the MSIHC Rules, 1989, IS:14489 – Code of Practice for Occupational Safety and Health Audit, MAH Rules, 1997
  • The effectiveness of the existing Safety Management System (SMS) was evaluated, and areas for improvement were identified to enhance operational safety and regulatory compliance.
  • The findings had been assessed against national regulations, international standards, and globally recognized best safety practices.
  • The Audit team had experts from Mechanical Engineering, Chemical Engineering, Electrical Engineering, Instrumentation, Occupational Safety & Health
  • The team included DGFASLI-accredited auditors, meeting the technical requirements
  • Key documents, including emergency response plans, operating procedures, training records, maintenance schedules, incident reports, and past audit findings ,were thoroughly reviewed by experts
  • iFluids Engineering achieved full compliance with Schedule 8 of the MSIHC Rules by preparing and submitting the Safety Report

The final Safety Audit Report submitted by iFluids Engineering included an executive summary, detailed risk observations, actionable recommendations, an implementation timeline, and supporting documentation like photos, checklists, and summary tables.