Petroleum Development Oman 6th ASSE-ME Conference Bahrain Achieving World-Class Safety Performance in a Multi-Cultural Environment Presented by: ’Dapo Oguntoyinbo Corporate HSE Manager Petroleum Development Oman 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Contents Safety (HSE) Challenges in PDO Generic Causes of Incidents Four Pillars of World-Class Safety Performance HSE Leadership HSE Management System Workforce Engagement Accountability for HSE Challenges ahead 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain HSE Challenges in PDO 4,000 PDO Staff & 16,000 Contractor workforce (60mln mhrs) 90% of PDO/Contractor workforce live/work in the interior Multi-Cultural/Language workforce, varying literacy levels PDO has over 100 oil/gas fields, 2,500+ wells drilled to date PDO & Contractors drive 120 Million Km per year on business Approximately 12,750 drivers, 7,000 vehicles Maintain over 6,000Km graded roads, 500Km black-top/asphalt In 1999, PDO achieved its best Safety performance to date: 70 days &10 million hours worked without an LTI No Fatality LTIF of 0.37 per million hours worked 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain PDO & Contractors drive 120 Million Km per year average; i.e. travel round the world 3,000 times a year (8 times round the world every day !!!) 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain PDO & Contractors HSE Performance 1986 - 2002 6th ASSE-ME Conference Bahrain

Historical Trend in Safety 6th ASSE-ME Conference Bahrain Injuries Engineering Systems: Hardware issues to engineer out hazards Management Systems: develop procedures, etc. to control hazards Focus on People: empowerment and conviction to work SAFELY Time 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain The Causes of Injuries Fatalities Lost Time Injuries Medical Treatment First-aid Cases Unsafe acts & Unsafe conditions 96% / 4 % 6th ASSE-ME Conference Bahrain

Generic Underlying Causes of Incidents 6th ASSE-ME Conference Bahrain Lack of Effective Supervision (competence) Inadequate Hazard Awareness (competence) Not Following Basic Rules (compliance) This has led to: Compliance, Competence, Supervision and Road Safety being key themes for annual HSE Plans 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain The Incident Triangle One fatality---------------------- 100 Lost Time Incidents--- 1000 Non LTI’s----------- 10,000 Near Misses--- 100,000 Unsafe Acts- Over 96% of Incidents are caused by People 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain What is PDO doing to achieve world-class HSE Performance? 6th ASSE-ME Conference Bahrain

World Class Safety Performance Achieving world-class Safety Performance via Focus on People World Class Safety Performance HSE Management System Development and Implementation of Leadership and Commitment Workforce Engagement - Winning Hearts and Minds Accountability for Safety - Consequence Management

6th ASSE-ME Conference Bahrain Leadership & Commitment Safety (HSE) is Priority Number One Visibility: participation in Joint Management HSE Inspections Involvement: HSE on meeting agenda, ELT sessions Target setting: T&T, staff appraisal to include HSE aspects Improving HSE Culture: “walking the talk”, empowerment Participation in Incident Investigation & Review MD Incident Review, with Contractor CEO, for High Potential Incidents & Poor Performing Contractors Annual CEO HSE Conference Site Management support for HSE Initiatives/Circles Use HSE Positions to develop high calibre staff 6th ASSE-ME Conference Bahrain

Joint Management HSE Inspections Demonstrating HSE Leadership Highlights of 2002 Performance Participation by 22 CEO’s and 10 PDO Directors 27 Joint Mgt HSE Inspections: Actual vs Planned 90% Inspections were well received by PDO and Contractor staff Presented opportunity for cross learning across organisations. Focus for 2003 and beyond Continue Joint Management HSE Inspections Forum to share feedback from Inspections 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Feedback to CEOs 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain HSE Management System: what is its Objective ? 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain HSE Management System Objectives: Manage hazards & effects to H,S & E in a structured way Set performance standards for managing HSE Continuous improvement via monitoring, reviews and audits Improving workforce understanding of HSE-MS: Link Hazard Management to Activity Understanding “What it means to Me” Define Requirements for 3 levels of workforce (i.e. Manager, Supervisor and Staff) Develop Module for Self-Assessment 6th ASSE-ME Conference Bahrain

PDO HSE Management System Leadership and Commitment Policy and Strategic Objectives Organisation, Responsibilities Standards, Procedures and Document Control Hazards and Effects Management Process Corrective Action Planning Implementation Monitoring Audit Management Review 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Challenges of Workforce Engagement in a Multi-Cultural Environment 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain “Safety Propulsion” Projects in PDO since 2001 Road Safety: Drive-to-Survive Competency of HSE Advisors Enhanced Site Supervision (ESS) 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Workforce Engagement ESS workshops to improve hazard awareness & supervision Working Safely for the workforce at shop-floor level Use of Pictorial Prompt Cards (effective communication) Safety Circles/Fora (e.g. No-LTI Clubs, ESS Champions, etc) Performance Review & Dissemination of Lessons Enhanced use of STOP HSE Advisers Competency Programme Contract Holdership Certification Scheme HSE Skills Portfolio for HSE and Key Line Staff (PDO) 6th ASSE-ME Conference Bahrain

ESS Workshops & Coaching 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Q1 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Q2 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain 2003 6th ASSE-ME Conference Bahrain

PDO & Contractors: Road Safety Performance Road Traffic Accidents per Million Km driven Reduction: DDC 6th ASSE-ME Conference Bahrain

PDO & Contractors: Road Safety Performance Rollovers per Million Km driven: Reduction Speed-limiters DDC 6th ASSE-ME Conference Bahrain

Target-Zero: No Injuries 6th ASSE-ME Conference Bahrain HSE Management Triangle The Incident Triangle A No Injury Improved HSE Culture (Proactive): No LTI Club B Site Management HSE Leadership, e.g. via Support for ESS, HSE Advisers Networking, etc. Positive HSE Climate created by top Management (HSE is Priority No. 1) Strong Site HSE Awareness and Supervision via ESS, WS, STOP, etc. 100 LTIs 1,000 Non-LTIs 10,000 Near Misses 100,000 Unsafe Acts One Fatality LEGEND: A = Levels covered by HSE Leadership, e.g. Joint Mgt HSE Insp., Site Management Support B = Levels covered by ESS, Working Safely Workshops, Safety Circles/Forum 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Target Zero in PDO LTIF versus Fatality frequency over the years LTI frequency (LTI/million hrs) 2003-Target Zero Fatality frequency (Fatalities per million hrs) 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Accountability for HSE … the next step 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain HSE Management System Hazard/ Risk Accident WORK Barriers or Controls HSE Management is about Good understanding of the world in which you operate and the work Identifying what can go wrong and lead to undesirable outcomes with consequences to health, safety environment or reputation Putting barriers in place to prevent escalation from left to right; these barriers can be of a variety of natures: design procedures hardware: PRVs, gas detection, fire fighting capability seatbelts, PPE etc. etc as nothing in this world is perfect there are holes in the barriers indicating a possibility of failure (looks like Swiss Cheese) to keep holes as small as possible and make sure that they do not align: Assign tasks to people to create barriers and keep them in place Ensure people are competent for their tasks Provide people with instructions and standards Communication essential information to each other about malfunctioning barriers, so that others can make sure that their barrier remains effective A large percentage of the holes in the barriers/controls are due to Human Error. Estimates vary from 80 to 96% Therefore, understanding Human Error is important. The next slide explains the various types of human error Violation Error + = DISASTER 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Accountability for HSE Main Thrusts Aim to protect health and safety of workers. Staff are to be held accountable for actions that can lead to high potential incident or fatality based on past experience. Deliberately breaking rules is worse than breaking rules out of ignorance Same Framework for PDO and Contractors, via Industry Forum (OPAL) and Govt. In certain cases management discretion will be exercised following incident investigation. A full investigation must be completed, and proven case of deliberate misconduct made before application of rules 6th ASSE-ME Conference Bahrain

Accountability for HSE: Risk Matrix 6th ASSE-ME Conference Bahrain 7 1 9 6 11 5 2 8 10 HIGH RISK 4 3 List of HSE issues addressed and their risk rating 1- Competence - Failure to attend Mandatory HSE Courses; 3D 2- Compliance - Failure to follow mandatory HSE Procedures;4E 3- Interfering with the Integrity of Safety Devices; 4C 4- Driving under the influence of Alcohol; 5C 5- Not using seat belts; 4D 6- Driving without PDO license; 4C 7- Using GSM whilst driving; 2E 8- Not obeying applicable speed limits; 4E 9- Driving a vehicle without a valid RAS sticker; 4C 10- Failure to apply safe journey management plans; 4E 11- Failure to follow night driving policy; 4D 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Accountability for HSE Framework 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Q3 6th ASSE-ME Conference Bahrain

6th ASSE-ME Conference Bahrain Challenges Ahead In a multi-cultural environment, “Accountability for HSE” may be perceived negatively (blame culture) Framework presented and accepted by Industry Forum, OPAL. Industry Forum engagement ongoing with Government to obtain support for “Accountability for HSE” Framework Implementation ONLY after effective “Workforce Engagement” Roll out to concentrate on positive aspects of the scheme Workforce HSE Culture can be significant consideration Goal: Convince and Empower the workforce to work SAFELY 6th ASSE-ME Conference Bahrain

If you were in this boat, what would you do ? 6th ASSE-ME Conference Bahrain