MSE/4- PRE START UP

PDO xxxxxxxxx

PRE-START-UP AUDIT

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AgendaAgenda

the audit team audit objectives schedule recommendations reporting

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Team membersTeam members

xxxxxxxxxx PDO PDO (Leader)(Leader)

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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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Terms of ReferenceTerms of Reference

Objective To assess the readiness of all To assess the readiness of all

resources, controls, procedures and resources, controls, procedures and services to support the operation of services to support the operation of the new facility.the new facility.

MSE/4- PRE START UPM-15 07/03/98

Generic Objective & StrategyGeneric Objective & Strategy

Objective:Objective: To provide independent assurance that HSETo provide independent assurance that HSE

management system is effectivemanagement system is effective

StrategyStrategy Look for previously unidentified problemsLook for previously unidentified problems

Focus on gaps between areas of responsibilityFocus on gaps between areas of responsibility

Investigate identified deficiencies in depthInvestigate identified deficiencies in depth

assess any residual risksassess any residual risks

find underlying causesfind underlying causes

Record all areas investigated, noting anyRecord all areas investigated, noting anyomissionsomissions

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StandardsStandards

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

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Audit ProcessAudit Process

• Terms of referenceTerms of reference• Audit programmeAudit programme• EP95-0130 EP95-0130

FamiliarisationFamiliarisation

Review & TestingReview & Testing

ReportingReporting

Site visit Interviews Test findings

Drafting EditingReport

Finalisation Agree findingsPresentFindings

StudyDocumentation

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Terms of ReferenceTerms of Reference

ScopeThe scope is limited to those The scope is limited to those

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

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

related to the Facilities.related to the Facilities.

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Specific issues Specific issues 11Demonstration 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 reviewsHAZOP close outHAZOP close out

Fitness for purpose hardwareFitness for purpose hardwareConstructed to designConstructed to design

Effectiveness of change controlEffectiveness of change control

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Specific issues 2Specific issues 2

CommissioningCommissioningPlans & ProceduresPlans & ProceduresPersonnelPersonnelConcurrent operations risksConcurrent operations risks

ProceduresProceduresOperating, MaintenanceOperating, Maintenance

Availability and adequacy Availability and adequacy

Emergency Emergency Understood and exercisedUnderstood and exercised

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Specific issues 3Specific issues 3

Operations plans for start-upOperations plans for start-upOrganisationOrganisationResponsibilitiesResponsibilities

Contractor / PDO Contractor / PDO

InterfacesInterfaces CommunicationsCommunications

Resources & servicesResources & servicesPersonnelPersonnelSpares, consumablesSpares, consumables

Environmental compliance Environmental compliance

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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:GoodFairPoor (equivalent to IAG Unsatisfactory)Unacceptable

The definitions are in terms of:the level of concernthe inference for senior management

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Audit opinion derivationAudit 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

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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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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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Audit Recommendations 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)

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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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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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THE END THE END

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Structure of QuestionnairesStructure of Questionnaires

Subsidiary Subsidiary QuestionnaireQuestionnaire

FacilitiesFacilities

Subsidiary Subsidiary QuestionnaireQuestionnaire

Start-UpStart-Up

Subsidiary Subsidiary QuestionnaireQuestionnaire

DrillingDrilling

Subsidiary Subsidiary QuestionnaireQuestionnaire

EnvironmentEnvironment

Subsidiary Subsidiary QuestionnaireQuestionnaire

HealthHealth

Subsidiary Subsidiary QuestionnaireQuestionnaire

FacilitiesFacilities

Subsidiary Subsidiary QuestionnaireQuestionnaire

SeismicSeismic

Generic Questionnaire (Generic Questionnaire (common to all HSE Audits)common to all HSE Audits)

Leadership & CommitmentLeadership & Commitment Policy & Strategic ObjectivesPolicy & Strategic Objectives Organisation, Responsibilities, Resources, Contractor Management.Organisation, Responsibilities, Resources, Contractor Management. Communications, HSE-MS Documentation, Standards & Change ControlCommunications, HSE-MS Documentation, Standards & Change Control Hazards and Effects ManagementHazards and Effects Management Planning & ProceduresPlanning & Procedures Implementation & MonitoringImplementation & Monitoring Audit Audit Management ReviewManagement Review

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EP-HSE Audit Method EP-HSE Audit Method

Focus on RiskFocus on Risk OU Staff involvedOU Staff involved Based on OU / Contractor standardsBased on OU / Contractor standards Bottom up ApproachBottom up Approach Significance & breadth of findings Significance & breadth of findings Assessment of the 33 HSE MS sub elements of Assessment of the 33 HSE MS sub elements of

the HSE MS Self Assessment Questionnaire the HSE MS Self Assessment Questionnaire (levels 1-4)(levels 1-4)

Follow up: OU responsibilityFollow up: OU responsibility

Audit of HSE MS, fully covering H, S and Audit of HSE MS, fully covering H, S and Sampling ProcessSampling Process Questionnaire basedQuestionnaire based

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Auditors will:Auditors will: operate in pairs operate in pairs (sometimes three)(sometimes three) make an appointment to see youmake an appointment to see you

no surprise visitsno surprise visits

try to make it as easy as possibletry to make it as easy as possible be only interested in facts, not speculationbe only interested in facts, not speculation

(interested in your view in how to improve)(interested in your view in how to improve) possibly use a questionnaire in the interviewpossibly use a questionnaire in the interview ask open ended questions ask open ended questions

like “How ..”, “In what way…”like “How ..”, “In what way…”

interview a “vertical slice” of the organizationinterview a “vertical slice” of the organization look for the good as well as the less than adequatelook for the good as well as the less than adequate

HSE Audit OverviewHSE Audit Overview