Australian Oil and Gas Safety Background  Significant improvement in last decade  Continued serious incidents and losses of containment  We have rapid growth and emerging new sectors  Potential significant erosion of skills and experience looming

Lost Time Injury Frequency Rate Source: APPEA Safety Data Reporting

Source: NOPSEMA Data and International Benchmarks

Diagram 1: History of Safety Management Programs Experience shows that safety improvement requires sustained, resourced & passionate leadership along all program curves

The Case for Change  We are not so good at understanding the way organisations and humans interact, or how this affects decision making  And we have a serious challenge to build our peoples’ capability and competence at all levels  The hardest programs may be those that address human and organisational factors

What Success Looks Like  Industry/workforce/regulator aligned on safety priorities and vision  Companies working together to share and improve  Competent workforce with a strong focus on safety at all levels  No barriers for discussion/sharing to achieve practical solutions  Common safety language across companies in the industry  Industry that leverages best practice from around the world  Australia oil and gas industry safety performance operating at global top quartile

How do we take the next step in improving safety performance in Australia?  Broader participation across industry, our workforce, and our regulators in our safety leadership initiatives  Build a common approach and language where possible  Focus on safety initiatives that target next level of performance and prevention of Major Accident Events (MAE’s)  Be SMART and look to what is already out there as global best practice

Step Change UK incorporates many of these ideas and could assist us:  Address the hardest third curve – the human and organisational factors  Improve workforce participation and develop mature workforce dialogue, as well as broader industry and regulator participation  Be SMART and leverage of work already undertaken in a similar regime

CEO Safety Leadership Objectives  Improve safety performance across Australia’s oil and gas industry, including contractors (both personal and process)  Achieve consistent reporting of safety performance and trends and sharing of learnings from incidents (including high potential incidents) through APPEA  Identify global good practice & apply that good practice consistently across the industry (as relevant to the Australian context)  Increase awareness, understanding and develop common safety language (e.g. for process safety) at all levels right across the industry  Develop common approaches and tools e.g. supervisor safety competency, process safety capability  Achieve improved participation of the workforce in safety.

CEO Safety Projects and Broader Engagement - Proposed Actions 1. CEO Safety Projects for 2013/14 continue to be progressed through APPEA HSO Committee 2. Quarterly Status Reports on Project Implementation sent to CEO Forum attendees via APPEA 3. Lead CEO and APPEA to identify new lead CEO for 2013/14 (by end of September 2013) 4. HSO Committee to develop a proposal to capture and implement the appropriate parts of Step Change UK (Example wider industry steering committee) (by end of December 2013) 5. HSO Committee to work with the 2013/14 Lead CEO to set up and pilot the new approach (by end of March 2014)