PDO xxxxxxxxx PRE-START-UP AUDIT

Agenda the audit team audit objectives schedule recommendations reporting

Team members xxxxx PDO (Leader)

HSE Performance “There must always be a gap between … aspirations and performance … But a gap between policy and performance is unacceptable” Phil Watts - Shell EP HSE Conference 22 September 1997

Terms of Reference Objective To assess the readiness of all resources, controls, procedures and services to support the operation of the new facility.

Standards Applicable Oman laws and regulations Group HSE policies and commitments PDO and contractor policies, standards and procedures Group and SIEP HSE guidelines such as EP95 000

Audit Process Familiarisation Review & Testing Reporting Terms of reference Audit programme EP95-0130 Review & Testing Study Documentation Site visit Test findings Interviews Reporting Agree findings Present Findings Drafting Editing Report Finalisation

Terms of Reference Scope Exclusions: The scope is limited to those facilities, resources and controls necessary to operate the xxxxxxxxxx Expansion Facilities. Exclusions: Corporate HSE issues not directly related to the Facilities.

Specific issues 1 Demonstration that HSE risks are ALARP Design, installation, commissioning Future operation HSE Case Close out of audits and reviews HAZOP close out Fitness for purpose hardware Constructed to design Effectiveness of change control

Specific issues 2 Commissioning Procedures Plans & Procedures Personnel Concurrent operations risks Procedures Operating, Maintenance Availability and adequacy Emergency Understood and exercised

Specific issues 3 Operations plans for start-up Resources & services Organisation Responsibilities Contractor / PDO Interfaces Communications Resources & services Personnel Spares, consumables Environmental compliance

Audit Programme Sat 31/5 Opening Presentations Doc. Review Sun 1/6 Coastal Interviews Mon 2/6 Visit Site - Compile notes Tue 3/6 Return from Site Wed 4/6 Compile Report Sat 7/6 Draft Report/Final Presentation Wed 11/6 Issue Final Report

Audit opinions The IAC defines 4 possible audit opinions: Good Fair Poor (equivalent to IAG Unsatisfactory) Unacceptable The definitions are in terms of: the level of concern the inference for senior management

Audit opinion derivation Based principally upon an assessment of severity and number of Findings Definition of Few and Many: Few  20 Many  40 each Finding to contain only one weakness

AUDIT OPINION Few  20 Findings Many  40 Findings

Audit Recommendations For a Pre Start-Up audit, an indication is given, in the classification of Findings of: those that should be closed out prior to the introduction of hydro-carbons - classified (I) those that should be closed out prior to close out of this project - classified (C) those that are not directly related to project close out - classified (F)

Weakness Classification Matrix B C D E Severity People Assets Environ- ment Repu- tation Never heard of in EP industry Has occurred in EP industry Has occurred in the audited OU Happens several times a year in the audited OU Happens several times a year in the audited facility No injury No damage No effect No impact 123 Low Slight injury Slight damage Slight effect Slight impact 1 2 Minor injury Minor damage Minor effect Minor impact Medium Consider- able impact 3 Major injury Local damage Localised effect High 4 Single fatality Major damage Major effect National impact Inter- national impact Serious Multiple fatalities Extensive damage 5 Massive effect A B C D _____ total High: Though not serious, essential to be brought to Management attention. Includes medium weaknesses as repeat from previous reports. Low: No major HSE impact at process level, correction will assure greater effectiveness/efficiency in process concerned. Serious: Exposes OU to a major extent in terms of achievement of corporate HSE objectives or results. Medium: Could result in perceptible and undesirable effect on achievement of HSE objectives.

Report Principles Report is collective view of team no reference to sources whole team review whole report facts reported are as agreed by all the team judgements are by consensus as far as practicable wording agreed to as to intended meaning audit leader has casting vote in case of disagreement where possible, root causes identified Final draft report before team disbands no later changes, only minor (punctuation, grammar) editing in CO final report within two weeks

THE END

Structure of Questionnaires Generic Questionnaire (common to all HSE Audits) Leadership & Commitment Policy & Strategic Objectives Organisation, Responsibilities, Resources, Contractor Management. Communications, HSE-MS Documentation, Standards & Change Control Hazards and Effects Management Planning & Procedures Implementation & Monitoring Audit Management Review Subsidiary Questionnaire Facilities Subsidiary Questionnaire Facilities Subsidiary Questionnaire Start-Up Subsidiary Questionnaire Seismic Subsidiary Questionnaire Drilling Subsidiary Questionnaire Environment Subsidiary Questionnaire Health

EP-HSE Audit Method Audit of HSE MS, fully covering H, S and Focus on Risk OU Staff involved Based on OU / Contractor standards Bottom up Approach Significance & breadth of findings Assessment of the 33 HSE MS sub elements of the HSE MS Self Assessment Questionnaire (levels 1-4) Follow up: OU responsibility Audit of HSE MS, fully covering H, S and Sampling Process Questionnaire based x

HSE Audit Overview Auditors will: operate in pairs (sometimes three) make an appointment to see you no surprise visits try to make it as easy as possible be only interested in facts, not speculation (interested in your view in how to improve) possibly use a questionnaire in the interview ask open ended questions like “How ..”, “In what way…” interview a “vertical slice” of the organization look for the good as well as the less than adequate

Report Index 1 Introduction 2 Executive Summary Audit opinion and justification HSE MS element summary 3 Audit Findings and Recommendations HSE Management System (Tables) Subsection for each of HSE-MS sub elements Appendices Definitions of Audit opinion and classification Classified recommended actions Terms of Reference Abbreviations HSE MS sub element assessment

Report Principles Report is collective view of team no reference to sources whole team review whole report facts reported are as agreed by all the team judgements are by consensus as far as practicable wording agreed to as to intended meaning Audit leader has casting vote in case of disagreement where possible, root causes identified Final draft report before team disbands no later changes, only minor (punctuation, grammar) editing in CO final report within one week