Oil and Gas Industry

“Oil and gas organisations must address the cyber challenges of sprawling global infrastructure, major safety hazards, the threat of nation-state cyber attacks and growing regulatory compliance and scrutiny.”

Oil and Gas Cyber Security Challenges

SafetyIntegrity and Availability, are clear priority risk considerations associated with the Oil and Gas sector.

 

As such, the safety of people, the environment and Oil and Gas operational assets is typically ensured by a combination of mechanical and computerised (i.e., operational technology/industrial control systems) based controls. Combined they are expected to provide process control, safeguarding, dependable real-time data integrity and near-continuous availability to support business operations. With the continued prevalence of digitalisation, convergence and connectivity with popular mainstream technologies, these priority risk considerations are being exposed to a wider range of cyber threats.

 

With the above in mind and also adding increasing regulatory compliance scrutiny into the mix, it is now more apparent than ever that a structured OT cyber security risk management strategy/programme is in place to effectively manage risk.

Situational Awareness

Perception (What is happening?):

  • Complex and high-impact cyber attacks which target operational industries, such as Oil and Gas, are increasing. Many types of OT cyber attacks are being seen, from malware attacks targeting control and safety systems, to ransomware locking companies out of their core IT systems resulting in operational process shutdowns.
  • On top of dealing with increasing cyber attacks, other factors like systems obsolescence, increased enterprise connectivity and a general lack of OT cyber awareness amongst the workforce are compounding matters.

Comprehension (Why do I care?):

  • The Oil and Gas industries unique physical-cyber convergence makes organisations vulnerable to exploitation, including the commandeering of OT systems to, for example, disrupt operations and even cause physical destruction of assets.
  • Increasing regulatory cyber risk management and auditing requirements such as the IMO Guidelines on Maritime Cyber Risk Management, and the IACS Unified requirements on Cyber safety, E26 and E27. Organisations are required to demonstrate risk management strategies are implemented and effective. The consequences of non-conformance can result in penalties that range from financial to revocation of operating license.

Oil and Gas Risk Management

In the context of an organisation with no or limited OT cyber security risk management, CNB Tel recommends a holistic approach when defining an effective OT cyber security risk management strategy/programme.

The first step in this journey is to understand risk and consequences to the organisation. At a basic level, this means identifying the most critical OT functions essential to fulfilling the organisation’s business operations, and the potential consequences of a cyber attack against them. The knowledge of an organisation’s system custodians and engineers should be leveraged to identify methods an adversary could use to compromise critical OT functions. This valuable knowledge includes technical system architecture details, procedural and ways of working insights, like logical user access, third-party service provider scope, supply chain considerations, physical security etc. Real-world cyber scenarios seen across industries should be considered, of course, not all will be applicable, but to ensure completeness and due diligence they should be considered.

The ultimate aim of this initial analysis is to identify and prioritise risks that result in high-consequence events for the organisation. It also provides a high-level snapshot of current risk exposure and whether this exposure is within or out of organisational risk appetite/tolerance. Any subsequent OT cyber security strategy/programme and risk mitigations should be aligned accordingly with this analysis to ensure tangible risk reduction that is outcome focused. This approach helps organisations justify OT cyber security improvements and the associated costs by being armed with better information and understanding of “What, Why and How?”

The second stage in the journey sees the definition and establishment of an overarching OT Cyber Security Framework (OT-CSF) that delivers formalised policies, procedures, datasets, work instructions and best practice guidance designed for OT cyber security risk management. The OT-CSF should be aligned accordingly with guidance provided within industry frameworks such as:

The scope and depth of the OT-CSF must be realistic and defined based on factors such as plausible operational business risk and regulatory compliance requirements. An overburdensome OT-CSF may deliver perfect cyber security on paper, but in reality, will likely be ignored or worked around rendering it ineffective. At a minimum, an OT-CSF should include:

  • Formal governance model (assignment of accountable, responsible, supporting, consulted roles/parties)
  • Formal end-to-end operating model (visualisation of operations through to OT asset/system support)
  • Regulatory compliance requirements (locale/country dependant, e.g. UK/EU NISCISA etc)
  • Asset inventorisation/management (listing of OT assets that require run and maintain support)
  • Network architecture documentation (logical and physical diagrams representing as-is architecture and includes all north-south and east-west connectivity)
  • Incident response plan (based on real-world industry scenarios that pose the most risk)
  • Workforce development (minimum training curriculum and awareness for all OT users)
  • Applicable supporting OT cyber security procedural controls (e.g., access control, management of change, portable media management, backup and recovery etc)
  • Basic performance monitoring and reporting (e.g., management reviews and continuous improvement processes)

The above represents a foundational level of controls that can be supplemented as organisational OT cyber maturity increases. Supplementary controls can be procedural or technology-based and include:

  • Internal assurance and compliance (self-assessment of OT cyber security risk management maturity)
  • External audit (independent assessment of OT cyber security risk management maturity)
  • Third-party/supplier assurance (OT cyber security requirements embedded within contracts)
  • Network monitoring and threat detection solutions (active monitoring and alerting of cyber events of interest)
  • Asset monitoring and vulnerability detection solutions (helps foresee potential security and reliability issues before they impact operations)
  • PAM – Privileges access management solutions (safeguards identities with special access or capabilities beyond regular users)

Knowing which business risks, regulatory drivers, and real-time operational insights to focus on is only the start of the OT cyber security journey. Organisations must also be realistic about their ability to execute and sustain a strategy/programme, therefore they should ask:

  • Are budgets adequate?
  • Do the right skills exist in-house?
  • Can our suppliers and service vendors support the requirements?
  • Do governance mechanisms exist to enable business leaders to make decisions and support the cyber security strategy/programme?

The ultimate aim is to reduce an organisation’s exposure to weaknesses and vulnerabilities that could be exploited by malicious threat actors. Additionally, greater awareness of cyber risk and formalised ways of working reduce the likelihood of cyber incidents caused by workforce error or misuse of OT assets.

Of course, one size does not fit all, therefore a focused process of discovery and risk assessment is paramount to identify an effective but sustainable blend of controls that meet business needs and address the cyber risks being faced.

Call to Action

Operating an Oil and Gas asset without an appropriate OT cyber security strategy/programme and relevant controls is high risk. To help you discover your level of risk exposure and to illustrate how we can support effective OT cyber security return on investment, get in touch for a free 30-min consultation.