SOGAT 2012 The Shah Gas Development Project CONFIDENTIAL Saturday, 01 April 2017 SOGAT 2012 The Shah Gas Development Project A Lifecycle Approach to the HSEIA Process Abu Dhabi Gas Development Co.

HSE Impact Assessment What is an HSEIA & Its Importance CONFIDENTIAL HSE Impact Assessment What is an HSEIA & Its Importance Saturday, 01 April 2017 An HSEIA is systematic approach to evaluating the potential effect of a project on health, safety and the environment A living document that considers the full lifecycle of the project (FEED, EPC, Operations, Decommissioning & Abandonment) ADNOC Requires HSEIAs to be undertaken for all project phases Key function is to identify, assess, mitigate to ALARP and monitor on a continuous basis all material risk that can adversely impact health, safety, and environment Residual impacts and hazards managed by the operator’s HSE Management System (HSEMS) HSEIA and an Operators HSEMS are mutually exclusive…. Abu Dhabi Gas Development Co.

A Lifecycle Approach to the HSEIA Process Introduction to the Approach CONFIDENTIAL A Lifecycle Approach to the HSEIA Process Introduction to the Approach Saturday, 01 April 2017 A streamlined, risk-based and quality-focused methodology based on current industry best practice for HSE Case development A systematic and gated verification and review process that provides for the management of major accident hazards through the lifecycle of the Shah Gas Development (SGD) Programme Greater emphasis is placed on HSE Critical Equipment and Systems (HSECES) integrity that provides significant safety and efficiency benefits to the end user Developed in close cooperation with the ADNOC EHS Division Demonstrates the safe systems of work and organisation required to effectively identify, manage and maintain risks to a tolerable and As Low As Reasonably Practicable (ALARP) level Based on the detailed assessment of the proposed SGD activities and the outputs from HSEIA studies, management plans and procedures Abu Dhabi Gas Development Co.

CONFIDENTIAL A Lifecycle Approach to the HSEIA Process How it is Different from Traditional HSEIA Approaches Saturday, 01 April 2017 The Al Hosn Gas HSEIA approach is a departure from traditional HSEIAs process in the following ways: Process based method compared to the traditional prescriptive methodology of HSEIA report development Is overarching and not limited to providing a ‘snap-shot’ in time of HSE risk i.e. lifecycle philosophy Systematic and gated verification and review process provide tangible barriers from allowing the development to proceed to the next stage until a strategy to manage HSE risks to ALARP can be put in place Reduces unnecessary duplication of HSE studies/reviews; and Reduces the turnaround time for obtaining approvals from ADNOC EHS Division. Inter-linkages between quality management and procurement thus effectively integrating supply chain logistics in the lifecycle and improving operational efficiency Abu Dhabi Gas Development Co.

CONFIDENTIAL A Lifecycle Approach to the HSEIA Process How it is Different from Traditional HSEIA Approaches Saturday, 01 April 2017 The following slides contain diagrams and process flows for the following: ADNOC HSEIA report process (slide 6) Overview of the Al Hosn Gas lifecycle HSEIA approach developed for the Phase II SGD Programme – well operations and well testing (slide 7) The 8 step elements of the Al Hosn Gas lifecycle HSEIA approach developed for the Phase II SGD Programme – well operations and well testing (slides 8 – 15) Abu Dhabi Gas Development Co.

CONFIDENTIAL A Lifecycle Approach to the HSEIA Process Traditional ADNOC HSEIA Report Components Saturday, 01 April 2017 ADNOC HSE Impact Assessment Report ADNOC and SPC as regulator require HSEIA for O&G Projects Hazard & Effects Register For Risk categories: People, Environment, Assets & Reputation Identify and assess material Risk Mitigate risk to ALARP Provide control measures and monitoring Environmental Impact Statement COMAH Report OHRA Report Manage medium/low risk through Operator’s HSE Management System Abu Dhabi Gas Development Co.

CONFIDENTIAL Al Hosn Gas Lifecycle HSEIA Approach SGD Phase II – Drilling, Well Testing & Cleanup Phase Saturday, 01 April 2017 8 1 Gates Review Well Testing & Handover Project Initiation & Control 2 7 MAH & HSECES Identification Evergreen Process Quality Management Gates Review 3 6 HSE Critical Positions & Tasks Drilling Operations Gates Review 4 5 Detailed Well & Well Test Design & Engineering Procurement, Inspection & Testing Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Project Initiation & Control 1 1.1 Baseline Documentation Design Codes, Standards and Guidelines established by Drilling Development Division for the Drilling Contractors. 1.2 Change Control in Design Robust Change Control procedures in place for review, approval & documentation of design changes. Change Management supported by an integrated (Company/Contractor) multi-discipline technical authority community (approved terms of reference) 1.1 The first step of the project is inception, and in this stage we make sure that we establish and adhere to all ADNOC Standards and Guidelines. Identify all the design codes for equipment and systems. 1.2 During this stage we must also ensure that we have management of change system in place such that a change in design requirements goes through the proper review, approval and documentation process. Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element MAH & HSECES Identification 2 2.1 HEMP Studies HAZID/ENVID/OHRA etc., to identify Major Accident Hazards (MAHs) & Initial identification of HSECES. ISO17776 Standard for Hazard Reference Codes with additional hazards identified for Al Hosn Gas 2.2 Risk Registers Standard Hazards, Effects & Aspects Register format used by Company and Contractors 2.3 Developed via multi-discipline technical authority community workshops using BowTieXP. Company Bowtie Analysis Standard establishes unique hazard and barrier referencing system that will carry through from design to operations bowties Bowtie Analysis 2.1 Identify the HSE risk associated with the project “drilling, well testing, stimulation & clean-up” 2.2 Evaluate and assess the Hazards using risk assessment to highlight HSE Critical Equipment and Systems (methods such as BOWTies, EIA Studies, & OHRAs) 2.3 Putting in place barriers to mitigate Major Hazards 2.4 Assigning Responsible people to manage HSE Critical Equipment and Systems 2.4 HSECES Identification HSECES are identified and confirmed by discipline technical authorities during bowtie analysis workshops. Controlled HSECES Register Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element HSE Critical Positions & Tasks 3 HSE Critical Positions & Tasks identified for all HSECES for the Drilling & Well Testing Phase. Unique barrier referencing system facilitates efficient assurance activities i.e., barrier verification audits. Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Detailed Well & Well Test Design & Engineering 4 4.1 Well & Well Test Design Execution plans and assignment of competent resources 4.2 Design Inputs & Outputs Quality plans, codes/specs/standards and HSE criteria Design programs and calculation sheets 4.3 Well Design & Development Review Integrated multi-discipline design reviews conducted 4.4 HSE Embedded into Process Specific safety studies and reviews in line with the HSE plans This is the stage where detail design of well operations are undertaken. In this step it is critical to assess and document the quality plans, design codes and standards, ADNOC HSE Guidelines against for which the detail design has been conducted. This is done by conducting value engineering, design reviews as well as independent verification processes for identified HSECES (Christmas Trees, BOP, Certification of H2S equipment) It is important to realize during this stage of the detail design any additional hazards that may arise will have to thru steps 2-4. Its is an iterative process. 4.5 Design & Development Validation Independent Verification Process for HSECES Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Procurement, Inspection & Testing 5 5.1 Purchase Information HSECES Design Performance Standards Operating Envelope Criteria 5.2 Verification of Purchased Products HSECES inspection and test plans Independent Verification Process for HSECES 5.3 Inspection & Testing Inspection and testing plans prior to operation This is also a critical stage of the HSECES integrity lifecycle. Through the detail design once equipment and systems have been identified the next step is their procurement. Every Critical equipment & system must have design performance standards that are aligned with design details undertaken by Drilling & Sub-surface technical teams during detail design phase. Equipment must be verified and inspected at site and by third party verification process. In addition, once the equipment arrives at the rig site and before it can be in colloquial parlance “turned on” it has to be testing from a function point of view. It is also important in this stage to have change control procedures. A good example, is changing the dimensions, or locations of storage warehouse to better fit equipment or chemicals, an appropriate risk must be undertaken as part of the change control procedures. The main point to make here is to capture all the risk associated with the procurement, inspection and testing of HSECES. 5.4 Inspection & Disposition Reports Verification of inspection reports Third Party Inspection monitoring Change Control procedures Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Drilling Operations 6 6.1 Testing Well Integrity Drilling logs. Cement quality and casing integrity testing. 6.2 Validation Processes Pre-mobilization audits of HSECES. Technical audits to check critical equipment. 6.3 Identification & Traceability Quality plans Identification procedures Non-conformance procedures This part of the integrity lifecycle deals with the drilling operations. Ensures integrity of drilling and well testing is maintained. All audits for HSECES are in place prior to mobilization – this would include technical audits to check the functionality of critical equipment. Its important in the step to have HSE Plan mobilized which includes non-compliance procedures Abu Dhabi Gas Development Co.

SGD Phase II – Drilling, Well Testing & Cleanup Phase Element CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Quality Management 7 7.1 Measurement Inspection, testing and examination against design performance standards 7.2 Non-conformance Non-conformance control procedure Non-conformance reports & follow up 7.3 Analysis Regular inspection, testing and examination of HSECES again the detailed design Monthly quality reports Independent Verification Body (IVB) compliance reports Abu Dhabi Gas Development Co.

Stimulation & Cleanout & Testing CONFIDENTIAL Saturday, 01 April 2017 SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Well Testing & Handover 8 8.1 Stimulation & Cleanout & Testing Defined Test Objectives – optimised well test programme Well integrity assurance – standards verification Wellsite HSE management plan (BAT & ALARP principles) Management of change 8.2 Air Quality Flaring Management Dispersion Modeling Real time data monitoring – model verification 8.3 Operation Validation Validation of testing contractors QA/QC via ADNOC standards & audit Competence assurance 8.4 Nitrogen purging of service lines Permit to work compliance Well start up procedure Endorsed well handover document Handover Abu Dhabi Gas Development Co.

A Lifecycle Approach to the HSEIA Process The Benefits CONFIDENTIAL A Lifecycle Approach to the HSEIA Process The Benefits Saturday, 01 April 2017 The HSEIA approach provides tangible performance enhancement benefits in the following ways: A greater focus on MAHs and HSECES integrity thus significantly reducing the overall risk picture; Greater flexibility for managing HSEIA process associated with multi-package/multi-rig operations thus providing optimum efficiency Minimizing overall lifecycle costs through procurement of HSECES against approved performance standards i.e., QA/QC of HSECES from day one Reduction of turnaround in ADNOC/SPC approval process i.e., SGD Program HSEIA Phase II approvals have been achieved approximately 14 days from submittal The approach is fully integrated with ADNOC & COMPANY HSEMS The iterative and evergreen nature of the approach provides the opportunity for continuous improvement Abu Dhabi Gas Development Co.