Role of Emergency Preparedness to support Sabah energy developments Dominic Webb APAC Regional Director, Altor Risk Group

Agenda Introductions Malaysia and Sabah Oil & Gas Major event losses Holistic Risk Management & Priorities Managing Risk Integrated Emergency Management Systems

Major Events in the Last 25 Years Piper Alpha 1988 Exxon Valdez 1989 Petrobras P Pipeline explosion Nigeria 1998 Texas City refinery explosion 2005 Mumbai High North platform fire 2005 Buncefield fire UK 2005 S. Korea tanker spill 2007 Deep Water Horizon 2010 Kolskaya oil rig sunk 2011 Helicopter crash North Sea 2009 Rayong Oil Spill 2013

Financial Loss due to Major Incidents Losses (US $M) Source: MARSH (Global Energy Practice 2011)

Response Priorities Environment Air, water, land 2 Reputation & Image Production, customers, reputation & business continuity 4 Assets Plant & Property, Contractor’s, communities and 3rd party facilities etc. 3 People Employees, Contractors, suppliers, customers and communities 1

Holistic Risk Management Operational Risk v Enterprise Risk

Crisis of Management Source: Adapted from James Reason 1990 Impacts Threats

Managing Residual Risk PlanningTrainingExercisingRespondingResourcing

Integrated Emergency Response QRA Exercise Response HAZOP HAZID MAHS COMAH Plans Procedure Training

Hazard Contour Map Refrigerant Storage Hydrocarbon Fire / Release Maximum Fatality Range due to a Fireball from a Ruptured Ethane Bullet Example - Hazard Contour Map

Gateway Approach to Training InductionRole SpecificCompetence Assessment to International Standards ICS

Types of exercise Workshop Table-top Simulated Live

Altor Exercise Methodology

Summary and Conclusion Working across the “bow tie” Holistic approach to risk management Industry standards adapted to country specific requirements Alignment to local regulations

Questions