The Life-Saving Rules This is one of the most important topics to be discussed this year. PDO cares about the safety of its employees and contractors, and it is determined to stop people getting killed while at work. As such, the Life-Saving Rules are the next step in our journey towards Goal Zero: no work-related injuries. This presentation will cover: Why we have 12 Life-Saving Rules What they mean for you Each of the Life-Saving Rules individually The consequences of rule-breaking and how this will be handled Discussion and questions

What Are They? Follow the prescribed Safe Journey Management Plan. Verify isolation before work begins and use the specified life-protecting equipment. Obtain authorization or a valid Permit to Work before overriding or disabling safety-critical equipment. While driving, do not use a mobile phone and do not exceed speed limits. Obtain a valid Permit to Work whenever required for the task at hand. Do not walk under a suspended load. 1 3 5 7 9 11 2 4 6 8 10 12 All equally important, no implied ranking    Compliance is mandatory for everyone working for PDO. That includes both PDO staff and contractor staff.   Failure to comply with any Life-Saving Rule, or even tolerating rule-breaking, will result in disciplinary action. We must still comply with all other Company rules. The Life-Saving Rules support our Golden Rules: Comply with the law, standards and procedures Intervene when you see unsafe or non-compliant actions Respect those on whose behalf you are intervening   Conduct gas tests whenever required. Obtain authorization or a valid Permit to Work before entering a confined space. Use specified fall-prevention equipment when working at height. Do not light up cigarettes, cigars or pipes in no-smoking areas. Wear seat belts when in a moving vehicle. Do not drive or work under the effect of drugs or alcohol.

So why treat them differently? No Surprises … They are not new rules They are already covered by existing standards and procedures So why treat them differently? Violations of the Life-Saving Rules contributed to a very large proportion fatalities in the industry (e.g. >50% of all Shell fatalities) They thus cover the activities that we know have the highest potential for fatal injury. PDO refuses to accept death or serious injury as an occupational risk of working in the oil and gas industry. For examples of rule-breaking at PDO that resulted in injuries and fatalities or could have resulted in injuries and fatalities, see the “LSR-breaking examples.ppt” slide pack.

Obtain a valid Permit to Work whenever required for the task at hand PtW Applicant must visit the worksite when planning the task. The PtW Approver must also visit the worksite, when required by the PtW procedure. An effective, documented toolbox talk is needed to ensure that all PtW conditions are well understood by the work team. Proper controls and procedures must be followed. Through site visits, supervisors and department heads shall verify PtW is adhered to and Job Safety Plans are being followed. The Permit to Work describes what you must do to stay safe.   You should: Understand the Permit to Work and follow it Confirm that the Permit to Work is valid Confirm with the Supervisor or the Person in Charge of the work that it is safe to start work If you are the Supervisor or the Person in Charge of the work you should: Confirm if a Permit to Work is required for this work Confirm that the workplace has been inspected before work starts Explain how the Permit to Work is signed Confirm the that the Permit to Work is signed Confirm that it is safe to start work Get a new Permit to Work when the work or the situation changes Confirm that the work is completed   4

Conduct gas tests whenever required When gas testing is required by the PtW, the Area Authority shall ensure that the appropriate test (for oxygen, hydrocarbons or toxics) is carried out by an Authorised Gas Tester at the frequency specified on the PtW. The test results must be accepted by Permit Holder before work commences. Air is tested to see if it is flammable or poisonous   You should: Confirm with the Area Authority that the air has been tested Confirm with the Area Authority that it is safe to start work Stop work if you smell gas If you are an Authorized Gas Tester you should: Understand which tests the Permit to Work requires and how often Use certified equipment for the tests If you are the Area Authority you should: Confirm that gas testing is carried out as per the Permit to Work Request more gas tests if necessary to keep the workers safe Confirm that it is safe to start work 5

Verify isolation before work begins and use the specified life-protecting equipment Area Authority shall verify that all locks, disabling devices and isolation tags are in place, as specified on the PtW and Isolation Certificate (Mechanical/Electrical). Area Authority shall update the isolation/override registers. Marked-up drawings and sketches showing the isolation arrangement must be available at the work site with the PtW. The Area Authority will verify the reinstatement of systems and update the isolation/override registers on completion of all works. Isolation prevents you from being exposed to electricity, pressurised gas, toxic chemicals, hot liquids or electromagnetic radiation.   Specified life-protecting equipment includes breathing apparatuses, electrical-arc flash protection and chemical resistant suits. You should: Understand the isolations that protect you from danger. Confirm with the Area Authority that isolations are in place. Confirm with the Area Authority that it is safe to start work. If you are the Area Authority you should: Confirm isolation is in place, for example, lock switches, separate pipes with spades, or lock access doors. Confirm no stored energy or other dangers remain. Confirm that it is safe to start work. 6

Obtain authorization or a valid Permit to Work before entering a confined space No one shall enter a confined space without a valid PtW and a Confined Space Entry Certificate. When gas testing is required by the PtW, the Area Authority shall ensure that the appropriate test (for oxygen, hydrocarbons or toxics) is carried out by an Authorised Gas Tester and that the results are accepted by the Permit Holder before and during the confined-space work. Supervisors will ensure a ‘Standby Watch’ or ‘Standby Person’ is posted and monitors the confined-space work. A confined space, such as a vessel, tank or pipe, can contain explosive gas, poisonous air or a lack of oxygen. Authorised access keeps you safe.   You should: Confirm with the Area Authority that it is safe to start work. Confirm with the Standby Watch or Person that you can enter a confined space. Follow the requirements of the Permit to Work. If you are the Standby Watch or Person you should: Approve and control access to a confined space. Have means of communication with people in the confined space. If you are the Area Authority, you should: Confirm that the requirements of the Permit to Work are in place. Confirm that a qualified Standby Watch or Person is always present when people are in a confined space Confirm that gas testing is carried out as per the Permit to Work. Confirm that it is safe to start work. 7

Obtain authorization or a valid Permit to Work before overriding or disabling safety-critical equipment. Instrument Technician or Area Authority shall ensure the Overriding Request Form is completed and authorised before any overrides are put in place. Safety System Overrides must be clearly labelled, communicated and registered. Instrument Technician shall verify the removal of overrides, normalisation of the systems and close out the Overriding Request Form on completion of all works. The Area Authority shall close out the PtW and verify all isolations and overrides are removed. Safety-critical equipment must work correctly if injuries are to be prevented.   Examples of safety-critical equipment include: isolation devices, emergency shut-down valves, lock out/tag out devices, trip systems, relief valves, fire and gas alarms, certain level controls, crane computers, In-Vehicle Monitoring Systems and speed limiters. You should: Obtain authorisation from the Area Authority before overriding or disabling safety-critical equipment If you are the Area Authority you should: Be familiar with the safety-critical equipment in your work place. Confirm that any authorisation for an override or disabling of the equipment comes from the right level. 8

Use specified fall-prevention equipment when working at height Supervisors shall ensure work at height is safe. All persons working above 2 metres will use a safety harness, unless working on a flatbed trailer. Supervisors are responsible for 100% tie-off compliance. Supervisors shall ensure fixed barriers are placed around openings where a potential fall is more than 2 meters. Supervisor shall ensure that scaffolding is certified prior to any worker working on it. Use fall-protection equipment, such as harnesses, when working at heights over 2 metres (6.5 feet) outside a protective environment. A protective environment includes approved scaffolds, stairs with handrails and man lifts.   You should: Have authorisation to work at height outside a protective environment. Be aware of what fall-protection equipment to use and how to use it. Check equipment before using it. Always tie off when at height outside of a protective environment. If you are the Supervisor or the Person in Charge of the work you should: Confirm that it is safe to start work at height. 9

Do not walk under a suspended load Every “routine” lift must have a generic lifting plan. Every “non-routine” lift must have specific lifting plan. Person In Charge shall ensure lift area is cordoned off during the lifting operations. No one should ever be under any working crane or suspended load. Working or walking immediately under a suspended load is unsafe as the load can fall on you. A suspended load is an object that is temporarily lifted and hangs above the ground. (Rig floors are excluded from this rule).   You should: Never cross a barrier controlling an area with a suspended load without authorisation Follow the instructions of the Flagman or the Person in Charge of the lift If you are the Person in Charge of the lift you should: Mark the unsafe area and put barriers in place Ensure that nobody walks under a suspended load 10

Do not light up cigarettes, cigars or pipes in no-smoking areas Zero tolerance for smoking outside designated area. Smoking or use of matches or cigarette lighters could ignite flammable gases or materials. Designated smoking areas, such as a smoking hut or a smoking room, will keep such ignition sources away from where they might cause a fire and explosion. Flammable gas can also be ignited by internal-combustion engines, so motor vehicle access to process areas should be covered by a Permit to Work.   You should: Know where the designated smoking areas are. Intervene if you see someone smoking outside a designated area. If you are the Supervisor or Person in Charge you should: Inform people about designated smoking areas. Ensure that designated smoking areas are clearly marked. If necessary, restrict access of motor vehicles in Permit to Work. 11

Follow the prescribed safe Journey Management Plan Drivers will not commence a journey without a Journey Management Plan (JMP) where required and will follow the approved JMP. Journey Manager will ensure drivers are aware of the JMP requirements and verify compliance before authorizing the journey. Vehicles must meet the JMP requirements, and drivers must inspect the vehicles prior to departure. A Journey Management Plan is a plan that will help a driver to travel and arrive safely.   If you are a driver you should: Confirm if a Journey Management Plan is required before starting the journey. Discuss the Journey Management Plan with the authorised person. Understand the Journey Management Plan before starting the journey. Comply with the duty, driving and rest hours specified in the Journey Management Plan. Follow the route specified in the Journey Management Plan. If you must deviate from the plan, then immediately inform the authorised person. If you are the Supervisor or Person in Charge you should routinely: Check that the Journey Management Plan is in place and being followed. Check that the driver understands and complies with the Journey Management Plan. 12

Wear seat belts when in a moving vehicle Vehicle occupants shall never be in a moving vehicle without wearing a seatbelt. Drivers will never drive without first ensuring that all vehicle occupants are wearing seat belts. A seatbelt protects you from injury in the event of a road accident. For that reason it should be worn in (rental) cars, taxis, (mini) buses, trucks, cranes, or forklift trucks. Exceptions include vehicles where only lap seatbelts are available or in public transport where seat belts are not available.   You (both as driver and passenger) should: Always use a 3-point seatbelt (please note exceptions above). Check that your seatbelt works properly. Keep your seatbelt properly fastened while in a moving vehicle. Check that everyone in the vehicle is wearing a seatbelt properly before starting to drive. Intervene when your fellow passengers are not wearing seatbelts properly. 13

While driving, do not use a mobile phone and do not exceed speed limits While driving, no one shall use mobile phones, including hands-free/bluetooth GSM or two-way radio. Drivers shall never exceed posted speed limits. Drivers shall never overtake in a dust cloud nor tamper with a vehicle’s safety devices. Speeding or using a mobile phone (even a hands-free model) or two-way radio while driving increases the risk of losing control of your vehicle.   If you are a driver you should: Not use a mobile phone or pager, send or read a text message, or use a hands-free mobile phone device. Stay at or below the maximum allowable speed for the road your are driving on as indicated by road signs or Journey Management Plan instructions. Stay at or below the maximum allowable speed limit for the vehicle you are driving. Adjust your driving according to the prevailing conditions. So if you are caught in a dust cloud, do not attempt to overtake. If you are a passenger you should: Intervene if a driver is using a phone in a moving vehicle. Intervene if a driver is exceeding the maximum allowable speed. 14

Do not drive or work under the effect of drugs or alcohol No person will report for work or be at work under the influence of alcohol or drugs. Ingesting alcohol, illegal drugs or even certain legal drugs will reduce your ability to do your job safely.   You should: Always inform the Supervisor or the Person in Charge if you are taking medicine that may affect your performance. (If in doubt as to the effect of medication, seek a doctor’s advice.) Not use, keep, sell or distribute illegal drugs. Intervene if you see a case of alcohol or drug abuse. If you are the Supervisor or Person in Charge you should: Only assign work to people who are fit to work. 15

What are the Consequences of Rule-Breaking for PDO Staff? Most people who work for PDO comply with the Life-Saving Rules every day. But some don’t. Eradication of fatalities in our operations is so important a milestone to reach in our Goal Zero journey that we cannot tolerate those few people who persistently put their own lives or the lives of others in danger by disregarding standards and rules. This consequence matrix has been developed to address the dangerous actions of those few. All reported breaches will be investigated thoroughly, fairly and on an individual basis.   If it is shown that the offender broke a Life-Saving Rule even though he was aware of the Rule and the consequences of breaking it, he will face the disciplinary action as specified in the consequence matrix.      If a supervisor is shown to have imposed the conditions for rule-breaking, then he will face maximum appropriate disciplinary action. The Life-Saving Rules will be fully enforced from July 1, 2009.

The Fine Print The Company reserves the right to take circumstances of the rule breaking into account to modify the disciplinary measures. The Breaking of a Life-Saving Rule is considered a Major Misconduct, and the HR disciplinary process as defined in the Employee Policy Manual will be used to administer this consequence matrix. ROP speed and alcohol thresholds will be used. Other existing rules and procedures remain valid.

The PDO Consequence Management Process Ownership: Life-Saving Rules (LSR) Scheme is owned by MSEM Consequence management process owned by HR through Employee Policy Manual The breaking of a rule is considered a major misconduct, as defined in the HR policy. Issuing a warning letter follows standard HR procedures as outlined in the Policy. If the investigation show that a dismissal is possible, a formal Disciplinary Panel, following standard HR procedures is convened. As part of the LSR roll-out, HRO will update the section 1.5 (Discipline) of the Employee Policy Manual

What are the Consequences of Rule-Breaking for Contractor Staff? We expect the contractor to investigate why a rule was broken and to feed back the investigations conclusions to the CH Contractor staff who are caught breaking the rules can be removed from the site and will not be allowed to work on any PDO activities. Standard contractual clauses allows for such suspensions. Contractors are responsible for dealing with their rule-breakers. Contractors will need to demonstrate to PDO that they indeed have an effective and verifiable process for dealing with rule-breakers.

Roll-out Plans 19 April Briefing of Extended Leadership Forum (JG2+) 25 April “Town Hall” meeting for Contract Holders 9 May – 14 June Stop-work sessions for PDO staff Contract Holder engagement with contractors 14 June – 1 July Computerised confirmation of understanding & commitment of all staff Computerised confirmation of understanding from contractors 20

Contract-Holder Actions Meet with contractor managers to inform them about the Life-Saving Rules and our expectations of their implementing these Rules by 1 July. Specify in computerised system (yet to come) which contractors you have met with and verify that each contractor has plans in place to communicate the Life-Saving Rules to their employees and subcontractors. Request the contractor to submit monitoring data. Verify the data submitted by the contractor. 21

Advice & Support Contact your HSE focal point to discuss the way forward, the planning and the preparation for the roll-out amongst contractors.

Live the Life-Saving Rules Your Actions Live the Life-Saving Rules Set an example from now on: show how you fully comply with them and intervene with respect wherever you see potential for them being broken Intervening will help us prevent accidents.   If you see a fellow colleague breaking a Life-Saving Rule, then we expect you to intervene if it is safe to do so. If you know of a supervisor breaking a Life-Saving Rule—or even tolerating the breaking of Life-Saving Rules—we expect you to report it to your line manager.

Our Goal By 1 July all PDO staff know about the Life-Saving Rules and the consequences of breaking them By end of the year all 35,000 contract staff know about the Life-Saving Rules and the consequences of breaking them By briefing everyone who works for PDO, the aim is to ensure 100% compliance.   This helps protect all of us, so that we can go home safely form work every day. Good Luck