1. 1 Borouge reference line 2006 © 2006 Borouge HSE MANAGEMENT OF CONTRACTORS By: Venkatesh Murthy Abu Dhabi Polymers Company LLC (Borouge), Abu Dhabi

2. 2 Borouge reference line 2006 © 2006 Borouge Introduction As the safety culture evolves in the Petrochemical industry, it is becoming evident that long-term business success, as well as the HSE performance of an organization, depends on the performance of its contractors and suppliers. In this presentation we discuss the key elements of the contractor management process as applied within the HSE Management System on Borouge sites. I will be presenting a step-by-step process flow and the various management tools that are used for the management of contractor HSE.

3. 3 Borouge reference line 2006 © 2006 Borouge Who we are? Leading provider of innovative, value creating polyethylene and polypropylene plastics solutions; Based on proprietary Borstar® technology; Focus on infrastructure, automotive and advanced packaging markets of the Middle East, Asia-Pacific, Indian sub- continent and Africa; Customers in more than 50 countries, over USD 3 billion in annual sales (2012); More than 3,000 employees.

4. 4 Borouge reference line 2006 © 2006 Borouge Borouge milestones and achievements

5. 5 Borouge reference line 2006 © 2006 Borouge Borouge and Borealis emerging as global players Top 12 PO Global Competitor Capacity [MT per year] Average annual available capacity based on ownership share; * Figures include announced projects. Intended restructurings and speculative capacities not reflected Source: CMAI, Strategy & Group Development

6. 6 Borouge reference line 2006 © 2006 Borouge Borouge 3: A major milestone in our journey of growth

7. 7 Borouge reference line 2006 © 2006 Borouge Why Contractor Management? 2014 (4.5 Million Tonnes per annum) 2010 (2 Million Tonnes per annum) 2001 (0.6 Million Tonnes per annum) “Be recognized as a leader in HSE Performance across the Petrochemical Industry” We cannot achieve this without the support of our contractor community Video - Click here

8. 8 Borouge reference line 2006 © 2006 Borouge Leadership & Commitment Policy & Strategic Objectives Organisation, Resources & Competence Risk Evaluation & Management Planning, Standards & Procedures Implementation & Monitoring Audit Management Review Where it emanates from? Borouge HSE-MS

9. 9 Borouge reference line 2006 © 2006 Borouge Contractor Management – An integral process Contractor Management is an integral part of Borouge HSE-MS; Sub Element 3.5 under Organisation, Resources & Competence deals in greater detail on the subject of Contractor HSE management. 7 Stages of Contractor management Cycle Stages of Contractor Management

10. 10 Borouge reference line 2006 © 2006 Borouge Contractor Management Process – Stage 1 It is important that at the planning stage for any contract / Project, Contract specific HSE requirements & procedures are identified. Establishing of Contract Risk Category The risk category will influence the HSE requirements specified for the contract and how it is managed Contract Request Form HSE Pre-Qualification Questionnaire HSE Plan Tender evaluation criteria Stage 1 - Planning & Invitation to tender Planning & Invitation to tender

11. 11 Borouge reference line 2006 © 2006 Borouge Contractor Management Process – Stage 1

12. 12 Borouge reference line 2006 © 2006 Borouge Stage 2 – Tender period As part of bidding process, the contractor performs HSE risk assessment, HSE MS self assessment and prepares a preliminary Project HSE Plan to demonstrate understanding of the HSE specifications and how compliance shall be achieved. Where required, Tender Clarification Meetings and site visit are organised to answer tenderer’s questions and allow full familiarization with the work scope. Contractor Management Process – Stage 2 Tender Phase

13. 13 Borouge reference line 2006 © 2006 Borouge Bid evaluations & contract award Contractor Management Process – Stage 3 Stage 3 – Bid evaluation and contract award User department representative & HSE representative shall evaluate the submissions & Preliminary Contract HSE Plans against the HSE Specification. 50% score must be achieved in HSE evaluation only then further technical evaluation is carried out for the bidder.

14. 14 Borouge reference line 2006 © 2006 Borouge Contractor Management Process – Stage 4 Stage 4 – Mobilization Mobilization This is the most important phase of the project, which will see the earlier planning coming to life.

15. 15 Borouge reference line 2006 © 2006 Borouge Contractor Management Process – Stage 5 Project Execution Stage 5 – Project execution Under the contract, the responsibility for proper supervision of the contractor's personnel on HSE matters rests with the contractor himself. However, Borouge representative ensures that contractor's supervision complies with the requirements defined in the contractor's HSE Plan. The contractor's line management commitment to the HSE issues; Reinforcement of the HSE targets as defined in the contractor's HSE Plan; The provision of training as needed for specific contractor employees; The regular checking and review of the contractor's performance; The contractor's monitoring of the condition and integrity of his plant, equipment and tools; The contractor's holding of daily toolbox meetings and regular HSE meetings; The contractor's implementation of Inspections, audits, exercises and drills of contingency plans; Any deviations from the HSE Plan formally assessed and approved.

16. 16 Borouge reference line 2006 © 2006 Borouge Contractor Management Process – Stage 5 Contractor annual HSE awards are organised to encourage competition amongst contractors. Project Execution Contractor representatives are part of the incident investigation teams. HSE workshops are carried out annually to cover subjects for alignment with Borouge HSE MS..

17. 17 Borouge reference line 2006 © 2006 Borouge Contractor Management Process – Stage 6 Stage 6 – Demobilization The contractor's HSE Plan continues to be the vehicle for monitoring HSE activities in this phase. Two new areas figure prominently: Site restoration; Waste management and disposal. It is important to maintain vigilance on HSE matters to the very end of the contract. Demobilization

18. 18 Borouge reference line 2006 © 2006 Borouge Project closeout The close-out report provides the formal method of providing feedback to the management and for recording a concise history of the contract for future use. Contractor Management Process – Stage 7 Stage 7 – Project closeout

19. 19 Borouge reference line 2006 © 2006 Borouge Challenges ahead Continuing the HSE performance against set HSE targets in a sustainable manner. Ensuring contractor(s) understanding of the HSE requirements on projects right from the conception stages of the project on all our locations. Simplification of the Contractor HSE management process to ensure line management commitment deliverables become easy to comply with. Raising overall HSE awareness of contractors workforce to ensure that we have “ZERO” injuries on site.

20. 20 Borouge reference line 2006 © 2006 Borouge Any Questions?

21. 21 Borouge reference line 2006 © 2006 Borouge VENKATESH MURTHY HSE Specialist (Projects & Turnarounds) 02-6074773, 050-8124837 Venkatesh.murthy@borouge.com

22. 22 Borouge reference line 2006 © 2006 Borouge THANK YOU FOR YOUR TIME