Achieving World-Class Safety Performance in a Multi-Cultural Environment

1. Achieving World-Class Safety Performance in a Multi-Cultural Environment Presented by: ’Dapo Oguntoyinbo Corporate HSE Manager Petroleum Development Oman 6th ASSE-ME Conference Bahrain

2. Contents • Safety (HSE) Challenges in PDO • Generic Causes of Incidents • Four Pillars of World-Class Safety Performance • HSE Leadership • HSE Management System • Workforce Engagement • Accountability for HSE • Challenges ahead 6th ASSE-ME Conference Bahrain

3. HSE Challenges in PDO • 4,000 PDO Staff & 16,000 Contractor workforce (60mln mhrs) • 90% of PDO/Contractor workforce live/work in the interior • Multi-Cultural/Language workforce, varying literacy levels • PDO has over 100 oil/gas fields, 2,500+ wells drilled to date • PDO & Contractors drive 120 Million Km per year on business • Approximately 12,750 drivers, 7,000 vehicles • Maintain over 6,000Km graded roads, 500Km black-top/asphalt • In 1999, PDO achieved its best Safety performance to date: • 70 days &10 million hours worked without an LTI • No Fatality • LTIF of 0.37 per million hours worked 6th ASSE-ME Conference Bahrain

4. PDO & Contractors drive 120 Million Km per year average; i.e. travel round the world 3,000 times a year (8 times round the world every day !!!) 6th ASSE-ME Conference Bahrain

5. PDO & Contractors HSE Performance 1986 - 2002 6th ASSE-ME Conference Bahrain

6. Historical Trend in Safety Injuries Engineering Systems: Hardware issues to engineer out hazards Management Systems: develop procedures, etc. to control hazards Focus on People: empowerment and conviction to work SAFELY Time 6th ASSE-ME Conference Bahrain

7. The Causes of Injuries Fatalities Lost Time Injuries Medical Treatment First-aid Cases • Unsafe acts & Unsafe conditions • 96% / 4 % 6th ASSE-ME Conference Bahrain

8. Generic Underlying Causes of Incidents • Lack of Effective Supervision (competence) • Inadequate Hazard Awareness (competence) • Not Following Basic Rules (compliance) This has led to: Compliance, Competence, Supervision and Road Safety being key themes for annual HSE Plans 6th ASSE-ME Conference Bahrain

9. The Incident Triangle One fatality---------------------- 100 Lost Time Incidents--- 1000 Non LTI’s----------- 10,000 Near Misses--- 100,000 Unsafe Acts- Over 96% of Incidents are caused by People 6th ASSE-ME Conference Bahrain

10. What is PDO doing to achieve world-class HSE Performance? 6th ASSE-ME Conference Bahrain

11. Achieving world-class Safety Performance via Focus on People World Class Safety Performance Development and Implementation of HSE Management System Workforce Engagement - Winning Hearts and Minds Leadership and Commitment Accountability for Safety - Consequence Management

12. Leadership & Commitment • Safety (HSE) is Priority Number One • Visibility: participation in Joint Management HSE Inspections • Involvement: HSE on meeting agenda, ELT sessions • Target setting: T&T, staff appraisal to include HSE aspects • Improving HSE Culture: “walking the talk”, empowerment • Participation in Incident Investigation & Review • MD Incident Review, with Contractor CEO, for High Potential Incidents & Poor Performing Contractors • Annual CEO HSE Conference • Site Management support for HSE Initiatives/Circles • Use HSE Positions to develop high calibre staff 6th ASSE-ME Conference Bahrain

13. Joint Management HSE InspectionsDemonstrating HSE Leadership Highlights of 2002 Performance • Participation by 22 CEO’s and 10 PDO Directors • 27 Joint Mgt HSE Inspections: Actual vs Planned 90% • Inspections were well received by PDO and Contractor staff • Presented opportunity for cross learning across organisations. Focus for 2003 and beyond • Continue Joint Management HSE Inspections • Forum to share feedback from Inspections 6th ASSE-ME Conference Bahrain

14. Feedback to CEOs 6th ASSE-ME Conference Bahrain

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16. HSE Management System: what is its Objective ? 6th ASSE-ME Conference Bahrain

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18. HSE Management System Objectives: • Manage hazards & effects to H,S & E in a structured way • Set performance standards for managing HSE • Continuous improvement via monitoring, reviews and audits Improving workforce understanding of HSE-MS: • Link Hazard Management to Activity • Understanding “What it means to Me” • Define Requirements for 3 levels of workforce (i.e. Manager, Supervisor and Staff) • Develop Module for Self-Assessment 6th ASSE-ME Conference Bahrain

19. PDO HSE Management System Leadership and Commitment Policy and Strategic Objectives Organisation, Responsibilities Standards, Procedures and Document Control Hazards and Effects Management Process Corrective Action Planning Monitoring Implementation Audit Management Review 6th ASSE-ME Conference Bahrain

20. Challenges of Workforce Engagement in a Multi-Cultural Environment 6th ASSE-ME Conference Bahrain

21. “Safety Propulsion” Projects in PDO since 2001 • Road Safety: Drive-to-Survive • Competency of HSE Advisors • Enhanced Site Supervision (ESS) 6th ASSE-ME Conference Bahrain

22. Workforce Engagement • ESS workshops to improve hazard awareness & supervision • Working Safely for the workforce at shop-floor level • Use of Pictorial Prompt Cards (effective communication) • Safety Circles/Fora (e.g. No-LTI Clubs, ESS Champions, etc) • Performance Review & Dissemination of Lessons • Enhanced use of STOP • HSE Advisers Competency Programme • Contract Holdership Certification Scheme • HSE Skills Portfolio for HSE and Key Line Staff (PDO) 6th ASSE-ME Conference Bahrain

23. ESS Workshops & Coaching 6th ASSE-ME Conference Bahrain

24. Q1 6th ASSE-ME Conference Bahrain

25. Q2 6th ASSE-ME Conference Bahrain

26. 2003 6th ASSE-ME Conference Bahrain

27. PDO &Contractors: Road Safety Performance Road Traffic Accidents per Million Km driven Reduction: DDC 6th ASSE-ME Conference Bahrain

28. PDO & Contractors: Road Safety Performance Rollovers per Million Km driven: Reduction Speed-limiters DDC 6th ASSE-ME Conference Bahrain

29. No Injury One Fatality Improved HSE Culture (Proactive): No LTI Club B Strong Site HSE Awareness and Supervision via ESS, WS, STOP, etc. 100 LTIs Site Management HSE Leadership, e.g. via Support for ESS, HSE Advisers Networking, etc. 1,000 Non-LTIs A 10,000 Near Misses Positive HSE Climate created by top Management (HSE is Priority No. 1) 100,000 Unsafe Acts Target-Zero: No Injuries The Incident Triangle HSE Management Triangle LEGEND: A = Levels covered by HSE Leadership, e.g. Joint Mgt HSE Insp., Site Management Support B = Levels covered by ESS, Working Safely Workshops, Safety Circles/Forum 6th ASSE-ME Conference Bahrain

30. Target Zero in PDO LTIF versus Fatality frequency over the years LTI frequency (LTI/million hrs) 2003-Target Zero Fatality frequency (Fatalities per million hrs) 6th ASSE-ME Conference Bahrain

31. Accountability for HSE … the next step 6th ASSE-ME Conference Bahrain

32. Barriers or Controls Hazard/ Risk WORK Accident Violation + Error = HSE Management System DISASTER 6th ASSE-ME Conference Bahrain

33. Accountability for HSE • Main Thrusts • Aim to protect health and safety of workers. • Staff are to be held accountable for actions that can lead to high potential incident or fatality based on past experience. • Deliberately breaking rules is worse than breaking rules out of ignorance • Same Framework for PDO and Contractors, via Industry Forum (OPAL) and Govt. • In certain cases management discretion will be exercised following incident investigation. A full investigation must be completed, and proven case of deliberate misconduct made before application of rules 6th ASSE-ME Conference Bahrain

34. Accountability for HSE: Risk Matrix 7 1 9 6 11 5 2 8 10 HIGH RISK 4 3 List of HSE issues addressed and their risk rating 1- Competence - Failure to attend Mandatory HSE Courses; 3D 2- Compliance - Failure to follow mandatory HSE Procedures;4E 3- Interfering with the Integrity of Safety Devices; 4C 4- Driving under the influence of Alcohol; 5C 5- Not using seat belts; 4D 6- Driving without PDO license; 4C 7- Using GSM whilst driving; 2E 8- Not obeying applicable speed limits; 4E 9- Driving a vehicle without a valid RAS sticker; 4C 10- Failure to apply safe journey management plans; 4E 11- Failure to follow night driving policy; 4D 6th ASSE-ME Conference Bahrain

35. Accountability for HSE Framework 6th ASSE-ME Conference Bahrain

36. Q3 6th ASSE-ME Conference Bahrain

37. Challenges Ahead • In a multi-cultural environment, “Accountability for HSE” may be perceived negatively (blame culture) • Framework presented and accepted by Industry Forum, OPAL. • Industry Forum engagement ongoing with Government to obtain support for “Accountability for HSE” Framework • Implementation ONLY after effective “Workforce Engagement” • Roll out to concentrate on positive aspects of the scheme • Workforce HSE Culture can be significant consideration • Goal: Convince and Empower the workforce to work SAFELY 6th ASSE-ME Conference Bahrain

38. If you were in this boat, what would you do ? 6th ASSE-ME Conference Bahrain