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xxxxxxxxxxxxx Expansion

Project (Additional Compressor System)

PRE-START UP AUDIT

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AgendaAgenda

the audit team audit objectives schedule recommendations reporting

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Team membersTeam members

xxxxxxxxx xxxxxxxxx

FacilitatorFacilitator xxxxxxx PDO xxxxxxxxxxxx PDO xxxxx

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HSE PerformanceHSE 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

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StandardsStandards

Applicable Oman laws and regulations Group HSE policies and commitmentsPDO and contractor policies, standards

and proceduresGroup and SIEP HSE guidelines such as

EP95 000

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Terms of ReferenceTerms of Reference

Scope The scope is limited to those The scope is limited to those

facilities, resources and controls facilities, resources and controls necessary to operate the new necessary to operate the new xxxxxxxxx Expansion Facilities.xxxxxxxxx Expansion Facilities.

Exclusions:Exclusions: Corporate HSE issues not directly Corporate HSE issues not directly

related to the new Facilities.related to the new Facilities.

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Principal Positive Findings Principal Positive Findings

Journey managementThe STOP initiativeHSE Plan updated during construction phase

and signed.Commissioning Plan in Place WINPCS plus test ‘packs’ for construction

and commissioning managementHEMP process for the engineering phase.

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High FindingsHigh FindingsNo HSE Advisor is planned to be on site

during commissioning.No emergency preparedness plan in place for

commissioning. No evidence that the commissioning

engineers have been assessed and meet the corporate competency standards.

There is no single change control register for the project including changes that have occurred in the field. The overview on changes is thus lacking.

Substantial completion milestone and introduction of hydrocarbons is scheduled for 9th June. This date is seen as unrealistic by many persons interviewed.

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Policy and Strategic ObjectivesPolicy and Strategic Objectives

No significant Findings

SAQ : 2.7SAQ : 2.7

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Organisation,Organisation, ResponsibilitiesResponsibilitiesResources, Standards & Docs.Resources, Standards & Docs.

Fragmented responsibility for construction activities on site. There is a lack of clarity in the roles and responsibilities from construction through to commissioning e.g.- There is no overall construction manager

with responsibility to hand over completed construction activities to commissioning.

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Organisation, ResponsibilitiesOrganisation, ResponsibilitiesResourcesResources, , StandardsStandards & Docs. & Docs.

No HSE Advisor is planned to be on site during commissioning. No evidence that the commissioning engineers have been

assessed and meet the corporate competency standards.

Operations were not witnessing instrument loop checks during commissioning.

There is no company site document controller to manage key documentation such as As-builts, vendor drawings, close-out of technical queries etc.

Operators have not been trained on the operations of the new compressor.

Only one instrument commissioning supervisor was on site as against two required in the commissioning plan.

Project execution plan calls for TA-2 for discipline engineers. This is in progress but not yet completed. SAQ : 2.4SAQ : 2.4

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HEMPHEMP

No structured assessment of potential hazards for some site activities e.g. - Safe distance for personnel during hydro

testing. - Construction contractor supervisor had no

knowledge of the safe working load of personnel basket.

The HSE Case has not been updated to reflect the project scope in line with the requirements of CP-117.

SAQ: 2.0SAQ: 2.0

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Planning & ProceduresPlanning & Procedures

The overview on changes is lacking. - There is no single change control register for the

project including changes that have occurred in the field.

- Discipline Engineers each operate their own change control system.

- Construction contractor does not have a change control register.

- vendor maintaining own register of field changes.- Some changes proposed in field trouble reports

have not been closed out. No emergency preparedness plan in place for

commissioning (introduction of hydrocarbons) SAQ : 2.0SAQ : 2.0

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Implementation & MonitoringImplementation & Monitoring

No incident was recorded throughout the project despite STOP cards highlighting some unsafe acts. No proactive targets were set for the project.

SAQ: 2.2SAQ: 2.2

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AuditAudit

Audit plan in place but not fully followed.

SAQ: 2.3SAQ: 2.3

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Management ReviewManagement Review

No Findings

4.04.0

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Leadership & Commitment Leadership & Commitment

Some opportunity to motivate staff in a more visible way (given the excellent HSE performance) may have been missed.

2.32.3

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Specific issues Specific issues 11

Demonstration that HSE risks are ALARP Demonstration that HSE risks are ALARP - Design, installation, commissioning Design, installation, commissioning

- Future operationFuture operation HSE CaseHSE Case

Close out of audits and reviewsClose out of audits and reviews- HAZOP close outHAZOP close out

Fitness for purpose hardwareFitness for purpose hardware- Constructed to designConstructed to design

Effectiveness of change controlEffectiveness of change control

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Specific issues 2Specific issues 2

CommissioningCommissioning Plans & ProceduresPlans & Procedures Personnel Personnel Concurrent operations risksConcurrent operations risks

ProceduresProcedures Operating, MaintenanceOperating, Maintenance

Availability and adequacy Availability and adequacy

Emergency Preparedness PlansEmergency Preparedness Plans Understood and exercisedUnderstood and exercised

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Specific issues 3Specific issues 3

Operations - plans for start-upOperations - plans for start-upOrganisationOrganisationResponsibilitiesResponsibilities

PDO PDO

InterfacesInterfacesCommunicationsCommunications

Resources & servicesResources & servicesPersonnelPersonnelSpares, consumablesSpares, consumables

Environmental complianceEnvironmental compliance

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AUDIT OPINIONAUDIT OPINION

Serious High MediumHigh +

Medium

Nil Nil Many -Nil Few Nil or Few -

Nil Few Few or Many Many1 or 2 Nil or Any Nil or Any -

Nil Many Nil or Any ->2 Any Any -

Fair

Poor

Unacceptable

Good

Classification of FindingsMost Favourable

Audit Opinion

Nil Nil Nil or Few -

Few Few 20 Findings Many 20 Findings Many 40 40 FindingsFindings

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Audit OpinionAudit Opinion

The overall audit opinion is

xxxxxx

Based upon there being:

x High Findings

x Medium Findings

x Low Findings

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‘‘High’ and ‘Medium’ ActionsHigh’ and ‘Medium’ Actions

High: People x Asset x

Environment x

Reputation xMedium: People x

Asset x Environment x Reputation x

Totals: High: xx Medium: xx

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Action Items Rated ‘Low’Action Items Rated ‘Low’

People: x

Assets: x

Environment: x

Reputation: x

Total xx

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HSE MS AssessmentHSE MS Assessment

OVERALL ASSESSMENTOVERALL ASSESSMENT ATTAINMENT LEVEL 2.5 ATTAINMENT LEVEL 2.5

Leadership and CommitmentLeadership and Commitment

Policy & Strategic Objectives Policy & Strategic Objectives

Organisation, Responsibilities, etc. Organisation, Responsibilities, etc.

HEMPHEMP

Planning & ProceduresPlanning & Procedures

Implementation and MonitoringImplementation and Monitoring

AuditAudit

Management ReviewManagement Review

11 22 33 44

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Audit Recommendations Audit Recommendations

PDO HSE Audits do not prescribe a schedule for the close-out of 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)

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Report PrinciplesReport Principles

Report is collective view of teamReport is collective view of team- no reference to sourcesno reference to sources- whole team review whole reportwhole team review whole report- facts reported are as agreed by all the teamfacts reported are as agreed by all the team- judgements are by consensus as far as practicablejudgements are by consensus as far as practicable- wording agreed to as to intended meaningwording agreed to as to intended meaning- audit leader has casting vote in case of disagreementaudit leader has casting vote in case of disagreement- where possible, root causes identifiedwhere possible, root causes identified

Final draft report before team disbandsFinal draft report before team disbands- no later changes, only minor (punctuation, grammar) editing in COno later changes, only minor (punctuation, grammar) editing in CO- final report within two weeks final report within two weeks

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Report IndexReport Index

11 Introduction Introduction

22 Executive Summary Executive Summary

IncludingIncluding Audit opinion and justificationAudit opinion and justification

33 Findings and Recommendations Findings and RecommendationsTabulated as:Tabulated as:

Finding, Significance, RecommendationFinding, Significance, Recommendation

AppendicesAppendices

ChaptersChapters

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THE END THE END

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Audit ProgrammeAudit 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

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Audit opinionsAudit 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

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HSE Management SystemHSE Management SystemLeadership and Commitment

Policy and StrategicObjectives

Management Review

Corrective Action &Improvement

Audit

Organisation, ResponsibilitiesResources, Standards & Doc.

Corrective Action &Improvement

Monitoring

Planning & Procedures

Hazard and EffectsManagement

Implementation

Corrective Action

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123

Weakness Classification Matrix Weakness Classification Matrix

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.

People Assets Environ-ment

Repu-tation

Severity

0

1

2

3

4

5

Noinjury

Slightinjury

Minorinjury

Majorinjury

Singlefatality

Multiplefatalities

Nodamage

Slightdamage

Minordamage

Localdamage

Majordamage

Extensivedamage

Noeffect

Noimpact

Slighteffect

Slightimpact

Minoreffect

Minorimpact

Localisedeffect

Consider-able

impact

Majoreffect

Nationalimpact

Inter-nationalimpact

Massiveeffect

Never heard of in

EP industry

A

LowLow

MediumMedium

HighHigh

Has occurred in EP industry

B

Has occurred inthe audited OU

C DHappens

several times a year in the audited OU

EHappens

several times a year in the

audited facility

SeriousSerious

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THE END THE END