1. Level 1 HSE MS Audit Insert date here Opening Presentation Insert Title here

2. Emergency Actions

3. Agenda Introductions Terms of Reference (ToR) Audit Methodology Programme Summary Questions

4. Introductions Name Position titleRef. Ind Audit Team:

5. Objective 2011 Level 1 HSE MS Assurance Plan approved by the Internal Audit committee and the Board Audit committee includes this Audit: To appraise the completeness of the HSE MS for xxx in PDO This audit will: Assess the adequacy & effectiveness of the implementation of the HSE- MS for xxx in PDO & Where weaknesses are identified, provide recommendations and guidance on what is expected and needed to demonstrate adherence to the PDO’s HSE Policy and Standards and international best practices

6. Key Risk Areas Key Risk Areas include, but not limited to:  Insert risk areas to be audited here

7. HSE Management System 1. Leadership and Commitment 2. Policy and Objectives 3. Organisation, Responsibilities, Resources Competence Organisation, Responsibilities and Resources 4. Risk Management Managing Risk Risk Assessment Matrix (RAM) HSE Management System 5. Planning and Procedures Emergency Response Management of Change Permit to Work Planning and Procedures 6. Implementation Monitoring and Reporting Incident Investigation and Learning Performance Monitoring and Reporting 7. Assurance 8. Management Review

8. ToR - Scope The scope shall cover all operations and activities including those of contractors (and sub-contractors), within the PDO Concession Area; The Audit will include, but not limited to Occupational Health, Safety and Environmental Risks in accordance with the HSE Management System; Audit evidence is based upon a sampling of the system (i.e., not every part of the business will be audited).

9. ToR - Standards The HSE Audit shall be carried out using the Audit methodology described in the ToR assessed against the PDO HSE Management System, with appropriate reference to the requirements of the following: Laws and regulations of the Sultanate of Oman PDO HSE MS, standards and procedures Relevant contractor standards and procedures

10. Audit methodology Plan audit Execute audit Audit Wrap-Up - Terms of Reference - Audit Schedule - Interview list - Pre-reading - Execute testing (interviews, field visits) - Develop Audit Findings and recommendations - Independent Review - Agree audit findings and close-out - Agree actions and action parties with Auditee - Issue draft Audit Report - Issue final Audit Report - Obtain feedback on audit REGULAR COMMUNICATION

11. Audit Methodology Deficiencies Problems Non- Conformances Competence Procedures Planning Leadership Supervision Policy & Objectives Standards Risk Assessment Assurance Corrective Action Evidence Cause Findings & Recommendations

12. Audit Deliverables All Audit Observations will be evaluated against the Risk Control expectations of the HSE MS. Findings will be developed based on the cause of the deficiency or non-conformity While evaluating observations, “Work-In-Progress” will be given due consideration

13. Work in Progress Gaps in risk control areas, already identified by the auditee, will be considered ‘work-in-progress’ (WIP) when the following criteria have been met: –Relevant issues and actions are identified and documented prior to the start of the audit. –For these issues and actions an implementation plan was already in place prior to the start of the audit with milestones set and resources allocated together with evidence of implementation having begun. –During the audit, the follow-up process was found to be satisfactory, taking into account the track record of the business in closing out action items. – Interim mitigations to control the risk area are in place, and deemed effective by the audit team.

14. Work in Progress Where testing by the audit team proves that the above criteria can be met, reliance can be placed on the existing process. No specific findings shall be raised for these issues in the audit report, however, due reference will be made in the executive summary of the audit report as to the degree of reliance that was placed on the process and highlighted in the control acceptability matrix (CAM, table 2).Such issues will also not have major impacts on the opinion. Where one of the above criteria has not been met, reliance cannot be placed on the process. Another finding will therefore be raised to ensure that relevant actions are taken. The audit opinion will take such audit findings into account.

15. Audit Deliverables The key deliverable of an HSE audit is an Audit Report, written on an exception basis to include: –Audit Findings& their classification based on the RAM or if necessary on the Rating Level table. –The overall Control Acceptability Assessment for each risk control area, which will be reflected in the Control Acceptability Matrix (CAM). –Agreed actions with due dates aimed at remediation of the control weakness identified in the Audit Findings.

16. Classification of findings - Risk Assessment matrix

17. ToR - Finding Classification Finding RatingDefinition Serious (S)The Audit Finding is likely to cause a significant undesirable effect on the achievement of the entity ’ s objectives and is likely to have a notable impact on the HSSE Objectives of the Company, therefore warranting immediate reporting to senior management, e.g. BU or Business level. High (H)The Audit Finding is likely to cause a significant undesirable effect on the achievement of the entity ’ s objectives and has the potential to have a notable impact on the HSSE objectives of the Business, therefore warranting reporting to the entity ’ s management. Medium (M)The Audit Finding is likely to cause an undesirable effect on the achievement of the entity ’ s objectives. Low (L)The weakness is likely to have an insignificant undesirable effect on the achievement of one of the entity ’ s objectives, but its correction would enhance the risk-based control framework. Non-Compliance (C)A non-compliance to a specific external legal or other regulations applicable to the entity. Note:

18. Overall Assessment of HSE Risk Controls and Audit Rating Controls Acceptable None, or a few Low and/or Medium rated findings are reported which indicate that a “ once-off ” rather than process or system structural weaknesses is present or that general enhancement of the controls, process or system framework is not needed. Controls Need Improvement Some Medium and / or one or more High rated findings are reported which indicate a weakness in key controls / barriers or in a part of the process or system structural framework. Controls Need Major Improvement Three or more High and/or one or more Serious rated findings are reported indicating failures in key controls / barriers or across a significant part of the process or system structural framework.

19. Control Assessment Matrix (CAM) – overall assessment Summarising the findings and assessment The primary use of an overall assessment is to convey an understanding of the extent of the control (= risk response) framework weaknesses and, thereby, to indicate which level of management needs to be alerted to the concerns over the overall control framework Controls Assessment Red => Risk responses need major improvement Yellow => Risk responses need improvement Green => Risk responses acceptable

20. Audit Conclusion and Follow-up Follow up Coordinator shall load the report into Fountain Assurance –Auto emails will be sent to the Auditee & Action Parties to confirm loading and assignment of actions –Progress/Status will be monitored by IAC/BAC –Draft report with findings, CAM and recommendations available at Closing Presentation. Only formatting and minor editorial changes will take place before the report is published. –Auditee with follow-up co-ordinator will review the recommendations and propose actions, action parties and target dates. –Lead auditor will finalise report after the auditee identifies and agrees actions, action parties and target dates.

21. Programme Introducti on & Opening MAF Interviews Day 1 Travel to Site Site Induction &Opening Site Visits Interviews Day 2 Site Visits Interviews Day 3 Site Visits Interviews Day 4 Site Visits Interviews Day 5 Site Feedback Return to Muscat Day 6 Friday Day 7 Test Obs with PDO / Contractor s Day 8 Test Observatio ns Prepare AWP Day 9 Test Observatio ns Challenge and formalize findings Day 10 Control Acceptabil ity Matrix. Peer Review Day 11 No Surprise meeting Day 12 Sites: MAF, Lekhwair, Yibal, QA, SR, SN, Kauther, Nimr, Marmul Closing Presentati on Day 15

22. This audit supports PDO’s efforts and actions to fully and effectively implement the HSE Management System in the management of xxx. No surprises. Draft report available at close-out meeting; Auditee to propose actions, action party and target date before audit report is finalized. Summary

23. Questions??

24. Back-up slides