1. Managing Safety in the Workplace Dubai 08/09DEC03 Corporate Responsibility & HSE Management System: PDO Case Study Presented by: ’Dapo Oguntoyinbo Corporate HSE Manager Petroleum Development Oman

2. Managing Safety in the Workplace Dubai 08/09DEC03 Contents n n Overview of Corporate Responsibility n n The Case for Change n n The Incident Triangle/Iceberg n n Historical Trend in HSE n n Using HSE to improve Corporate Responsibility n n HSE Management System n n PDO HSE Performance n n Target Zero: Myth or Reality ? n n Key Steps for improvement

3. Managing Safety in the Workplace Dubai 08/09DEC03 Corporate Responsibility n n Become a good Corporate Citizen n n Protect Health and Safety of people, and the Environment n n Reduce risks to ALARP n n Accountability: risks and benefits of what we do n n Respect for all people n n Legislation and standards: meeting or exceeding n n Obtain public confidence: operate by public consent n n External Reporting, with third-party verification n n Enhance Corporate Reputation n n Continuous improvement

4. Managing Safety in the Workplace Dubai 08/09DEC03 Geco Seismic Vessel

5. Managing Safety in the Workplace Dubai 08/09DEC03 Bhopal Union Carbide Plant Accident 1984 Over 2,500 deaths, 350,000 injured, premature deaths, etc. loss in stock market value exceeding $900 million, Union Carbide Inc. paid over $425 million to settle litigations, etc.

6. Piper Alpha 1988: Over 167 people dead, estimated loss over $3 Billion

7. Managing Safety in the Workplace Dubai 08/09DEC03 Petrobras P-36 Sinking 2001 Brazil, March 16, 2001 - The world's biggest offshore oil rig, owned by Brazil's state oil giant, Petrobras, sank into the ocean spilling crude oil, a day after an explosion that killed 10 people. happens only to others?

8. Managing Safety in the Workplace Dubai 08/09DEC03 Zauliyah-16 Blow Out (August 2001) Blow-out, leading to loss of Well Pulling Hoist, Well, Facilities, Environmental damage, but luckily no fatality

9. Managing Safety in the Workplace Dubai 08/09DEC03 1979 - THREE MILE ISLAND NUCLEAR PLANT -US $ 1.3 billion 1984 – BHOPAL UNION CARBIDE PLANT - US $ 1.4 billion 1986 - CHERNOBYL NUCLEAR PLANT -US $ 5.5 billion 1988 - PIPER ALPHA OIL PLATFORM -US $ 3.0 billion 1989 - EXXON VALDEZ (clean-up costs only) - US $ 2.5 billion 1998 - Esso Longford gas plant explosion -US $ 4.8 billion Some Major Accidents Cost of Accidents at Work Good HSE is Good Business

10. Historical Trend of Public Trust High Low Trust Time 19401960 19802000 Trust Me Tell Me Involve Me Show Me TUT 1.5

11. Managing Safety in the Workplace Dubai 08/09DEC03 One fatality---------------------- 100 Lost Time Incidents--- 1000 Non LTI’s----------- 10,000 Near Misses--- 100,000 Unsafe Acts- The Incident Triangle Over 96% of Incidents are caused by People

12. Managing Safety in the Workplace Dubai 08/09DEC03 Unsafe acts & Unsafe conditions 96% / 4 % Fatalities Lost Time Injuries Medical Treatment First-aid Cases The Causes of Injuries

13. Managing Safety in the Workplace Dubai 08/09DEC03 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 Historical Trend in HSE

14. Managing Safety in the Workplace Dubai 08/09DEC03 PDO & Contractors HSE Performance 1986 – 2002 LTIF: incident per million hours worked

15. Managing Safety in the Workplace Dubai 08/09DEC03 Using HSE to enhance Corporate Responsibility

16. Managing Safety in the Workplace Dubai 08/09DEC03 Improving Corporate Responsibility via HSE n n Justification for managing HSE effectively in the workplace: – –Humanitarian – –Legal – –Financial n n The cost of poor HSE performance: – –Human life – –Loss of loved ones, family suffering – –Personal injury & suffering, disabilities – partial or permanent – –Loss of stable income for families – –Equipment damage, deferred production avoidable loss – –Significant financial loss (e.g. Time, Facility, productivity, etc.) – –Reputation n n An organisation with a good HSE Management System is usually a well run organisation

17. Managing Safety in the Workplace Dubai 08/09DEC03 HSE Management System

18. Managing Safety in the Workplace Dubai 08/09DEC03

19. HSE Management System Objectives: n n Manage hazards & effects to H,S & E in a structured way n n Set performance standards for managing HSE n n Continuous improvement via monitoring, reviews and audits Impact of HSE-MS on Corporate Responsibility: n n Prevent injury to people, safeguard health and environment n n Reputation Implementing HSE-MS: n n Improve workforce understanding of HSE-MS n n Link Hazard Management to Activity n n Understand “What it means to Me”

20. Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE Management System Leadership and Commitment Policy and Strategic Objectives Management Review Audit Organisation, Responsibilities Standards, Procedures and Document Control Monitoring Planning Hazards and Effects Management Process Implementation Corrective Action Plan Do Check Act

21. Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE Management System Leadership and Commitment Policy and Strategic Objectives Management Review Audit Organisation, Responsibilities Standards, Procedures and Document Control Monitoring Planning Hazards and Effects Management Process Implementation Corrective Action Informed Involvement Review Set Targets Benchmark Assign Responsibilities DocumentResources Train people Execute Measure performance Audit Obtain feedback Evaluate employees perf. Communicate performance Follow-up Audit Findings Reward/correct employees Repeat PLAN Plan Do Check Act

22. Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE-MS

23. Managing Safety in the Workplace Dubai 08/09DEC03 HSE-MS is about People Hazard/ Risk Accident WORK Barriers or Controls DISASTER Violation Error + =

24. Managing Safety in the Workplace Dubai 08/09DEC03 What happened?: Electric shock whilst repairing Microwave Oven Result: One deadOne deadLearning: Non-compliance (warning signs)Non-compliance (warning signs) Competency/StandardsCompetency/Standards Fatal Electrocution

25. Managing Safety in the Workplace Dubai 08/09DEC03 Challenges of Compliance (Hearts & Minds)

26. Managing Safety in the Workplace Dubai 08/09DEC03 People: Focus on Hearts & Minds

27. Managing Safety in the Workplace Dubai 08/09DEC03 HSE CULTURE LADDER

28. Managing Safety in the Workplace Dubai 08/09DEC03 Hearts & Minds Tools 1. Understanding your culture 2. Implementing HSE MS 3. Managing Rule Breaking 4. Risk Assessment Matrix 5. Improving Supervision 6. Making Change Last 7. Seeing – as others see you 8. Safety Climate / Workforce involvement 9. Behaving Safely 10. Achieving situation awareness Set of high quality tools available:

29. Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE Performance

30. Managing Safety in the Workplace Dubai 08/09DEC03 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 !!!)

31. Managing Safety in the Workplace Dubai 08/09DEC03 PDO &ContractorsRoad Safety Performance PDO & Contractors: Road Safety Performance Road Traffic Accidents per Million Km driven DDC Reduction:

32. Managing Safety in the Workplace Dubai 08/09DEC03 PDO & Contractors: Road Safety Performance Speed-limiters DDC

33. Managing Safety in the Workplace Dubai 08/09DEC03 Million kms driven 118 121 132 92 RTAs 158 159 111 70 RTAF 1.3 1.3 0.8 0.7 Rollovers 43 33 22 13 Rollover Freq..0.36 0.27 0.16 0.13 RTA LTIs 21 15 5 3 2000 2001 2002 2003 YTD Key Road Safety Performance Figures Road Safety Challenges in PDO

34. Managing Safety in the Workplace Dubai 08/09DEC03 Fatality frequency (Fatalities per million hrs) LTI frequency (LTI/million hrs) LTIF versus Fatality frequency over the years Zero Target Zero in PDO 2003-Target

35. Managing Safety in the Workplace Dubai 08/09DEC03 Target Zero: Myth or Reality ?

36. Managing Safety in the Workplace Dubai 08/09DEC03 disaster / fatality minor accident (towed away) near misses unsafe act major accident - injuries involved Let’s look at the STATISTICS for Concord before the recent crash that KILLED more than 100 People 84 tyres had burst on runways 4 of those had punctured the fuel tank ??? don’t know how many near misses or unsafe acts had happened 1 fuel tank ignited and plane crashed 1 The ICEBERG...

37. Managing Safety in the Workplace Dubai 08/09DEC03 100 LTIs 1,000 Non-LTIs 10,000 Near Misses 100,000 Unsafe Acts OneFatalityOneFatality LEGEND: A = Levels covered by HSE Leadership, e.g. Joint Mgt HSE Insp., Site Management Support B = Levels covered by Workforce Engagement (ESS, Working Safely Workshops, Safety Circles/Forum) HSE Management Triangle The Incident Triangle Target-Zero: No Injuries 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.

38. Managing Safety in the Workplace Dubai 08/09DEC03 Feedback to CEOs

39. Managing Safety in the Workplace Dubai 08/09DEC03 Feedback to CEOs

40. Managing Safety in the Workplace Dubai 08/09DEC03

42. How can we become Catalysts for Improvement of HSE Performance ? HSE Performance ? How can we contribute towards achieving Target Z E R O ?

43. Managing Safety in the Workplace Dubai 08/09DEC03 Key Steps for improving Corporate Responsibility n n Develop and Implement HSE Management System n n Demonstrate Leadership & Commitment n n Effective Workforce Engagement n n Evaluate HSE Culture of the organisation n n Convince and Empower the workforce to work SAFELY n n Recognise good performance

44. Managing Safety in the Workplace Dubai 08/09DEC03 He who does not learn from the mistake of others is bound to repeat them !!! A SAFE Business is a Good Business