Business Excellence Through Enhanced Safety Culture In KPC & Subsidiaries 01.12.2015

Contents Background Milestones achieved Challenges ahead Gaps Observed 2 Background Milestones achieved Challenges ahead Gaps Observed Need of Improving Safety Culture to excel further Key Success Factors

Background! Journey of HSSE Business in KPC 3 ??? HSE Policy/ Vision/Mission/ Strategic Objectives HSSE Organization HSSE Management System Procedures/ Standards HSSE Management Committees/ HSSE Implementation Committees HSSE Performance Measures HSSE as part of SOPs/ SMAIP/MAIP/KPIs Challenging Targets ??? Journey of HSSE Business in KPC

Milestones Achieved 4 ISO 14001 & OHSAS 18001 Certifications “Gas Flaring Reduction Excellence Award 2015” CEO HSSE Awards Kuwait Environmental Remediation Program First prize from the Council of Arab Environmental Affairs Ministers for ACMP Project Accomplished 0% in Effluent water disposal to pits ISO 14001 & OHSAS 18001 Certifications

Challenges ahead! 5 Production Demand New Facilities Trend of Incidents Higher Expectations from KOC Challenging Targets Increasing Drilling Rigs

Challenges to bring Cultural Changes! 6 Ownership and Value for Safety is primarily with Senior Management within the Company. However, transferring that Ownership down below to the level of field staff is always a big challenge. This is possible only through the cultural changes in the company which is “ HSE Behavioral Change”

Behavior of Company Employees Gaps Observed! 7 Increasing No of MVAs occurring outside the work premises are the indicators for bad behavior It appears that “HSE is HSE people’s business” concept is still going on.. Implementation of HSEMS Procedures Quality of Contractor workforce Supervision of Contractual Activities It appears that most of the employees are focusing only on numbers, not on qualitative HSE Contribution Quality of Leading Indicators being reported Behavior of Company Employees Huge no of Leading indicators being reported are not supporting the company's to reduce incidents- These are the indicators for poor quality of reports

THE WAY WE DO THINGS AROUND HERE What is Safety Culture? 8 Safety Culture Consists of shared values and beliefs that Interact with an organisation’s structure and control systems to produce behavioural norms. Consists of shared values and beliefs that Interact with an organisation’s structure and control systems to produce behavioural norms WHAT IS IMPORTANT THE WAY WE DO THINGS AROUND HERE HOW THINGS WORK

To have a Good Safety Culture, Focus on Behaviours, Values and Beliefs 9 Culture Pyramid Beliefs Values Behaviours Procedures Processes Structures Organisation / People/ Teams When there are incidents, we used to focus in these areas HSE MC/ LC/ HSEMS IC/ Sub Committees HSEMS Procedures We now need to focus in these areas

Strategy for HSE Excellence 10 Broad Employee Participation Line Organization Implementation Reliance on Management Systems Visible Leadership Commitment

Focus on People 11

Importance of Safety Culture in HSE Management System! 12 Physical Measures GUARDING Management Systems Accidents P.T.W PROCEDURES SAFE SYSTEMS COMPETENCIES Behaviour Safety Culture Time

Building HSE Excellence into our Operations 13 The structure must be built from the bottom up. It takes time and serious energy to build the structure. The overall structure will suffer if any brick is missing.

Where should We Focus! 14 Our Focus should be To protect People, Company Property and Environment And not to fill the reports to get full points in the name of SMAIP/MAIP/KPIs/SOP. Our Focus should be To add value to the company By reducing the incidents and creating incident free atmosphere. Our Focus should be To make use of the Leading Indicators such as “SVVs-SOCs-etc. as opportunities to enhance HSE Performance! By doing SVVs-SOCs in the right perspective and add value to the company

Human Behavior Can Be Managed ! 15 Human Behavior is Observable and Measurable And Hence! Human Behavior Can Be Managed !

Caution! Will all people change their attitude? 16 Change behavior & attitude FAST. Change behavior FAST, but attitude more SLOWLY. Will change behavior & attitude. Will change behavior, but attitude LATE. Will change behavior late, attitude NEVER. Will NOT change attitude and NOT change Behavior.

Some of the HSE Management System Tools Recommended Executive Leadership Workshop’ (ELW) Safety for Operations Managers (OMGR) Action To Be Taken By Employees (AECT) Improving Safety through Incident Investigation (ISII) Safety Pro Seminar (SPRO) Safety for First-Line Supervisors (LSUP) Contractor Safety Workshops Process Hazard Analysis (PHA) Process Safety and Risk Management Training (PSRM) Safety Management Audit Training (SMAT) Training Materials (STOP, 24/7 Safety for Employees) 17

KOC Systems/Processes to deal with “Safety Culture” 18 Focus on Behavioral Based Safety (BBS) Programs. Shift the focus from ‘Filling the HSE Forms for KPIs” to “Protect People, Property & Environment” Consider Leading Indicators such as SOCs & SVVs etc. as Opportunities to stop the unsafe acts & unsafe practices & protect people and incidents occurring in Company. Consider HSE as part of our culture/life. Carry out specific HSE Campaigns/Programs that will reduce the incidents of your directorate/group/team Investigate all incidents however small they all and address the root causes of all incidents and near misses. Promote & Implement Safe Driving Policy of the company Encourage Employees for fixing of Speed Monitoring Devices in Company vehicles. Verify and make sure that your actions are addressing the root causes Review the Performance on monthly/quarterly basis. Share Lessons Learnt and learn from the past mistakes

Thank You!