Safety, Health and Environment Management

How to Implement for Success?

Implementing SH&E Mgmt for Success

Describe what is necessary by examining Noble Corporation R.W. Campbell Award Background - Off-shore drilling How to Implement for Success
Executive Leadership Core Business Value Identifying and understanding SH&E risks Comprehensive SH&E management system Behaviour focused leading indicators External audits Senior Executive Management System Review

Implementing SH&E Mgmt for Success

Background - Off-shore drilling

Extremely challenging business
Unforgiving natural environment Capital intensive Continually evolving technology Significant operational risks
Piper Alpha Campos Basin P-36

Implementing SH&E Mgmt for Success

Piper Alpha - North Sea

Value $2 billion Produced from 24 wells 229 crew Explosion 1988
167 crew dead Loss of the unit Total loss > $11 billion

Implementing SH&E Mgmt for Success

Campos Basin P-36

Value $500 Million 180,000 barrels/day 175 crew Explosion 2001
11 crew dead Total loss of the unit

Implementing SH&E Mgmt for Success

Noble Corporation
84 years in operation 60 units world wide
including Hibernia (NFLD)

5300 employees 12 years of improving safety performance R.W. Campbell award for SH&E mgmt. excellence Selected for the Dow Jones Sustainability Index Highest ever operating revenues in 2004

Implementing SH&E Mgmt for Success

Noble Corporation
How does this company achieve success?

Implementing SH&E Mgmt for Success

Noble Corporation
Corporate Values & Expectations Executive & Senior Mgr. Leadership & Commitment SH&E Management System
SH&E Policy, Goals and Objectives Effective Communication Hazard (Risk) identification, planning & control Design and Engineering SH&E Programmes Employee Competency & Empowerment SH&E Performance measures & monitoring Continuous SH&E performance improvement

Implementing SH&E Mgmt for Success

Noble Corporation
Corporate values & expectations
Health, Safety & Environment are corporate values identified in Policy & Code of Conduct Board oversight of Nobles HSE Committee ensures a high level of scrutiny of this critical area and reinforces the importance of HSE performance to Nobles management and employees. SH&E performance is considered critical to business success.

Implementing SH&E Mgmt for Success

Noble Corporation
Executive Leadership & Commitment
Policy a signed quotation of the CEO Executive Team reviews and approves the HSE Plan for the year CEO chairs Monday morning operations meeting
Opening topic is HSE performance.

CEO chairs the HSE Committee

Assess Nobles HSE improvement efforts, performance data and leading indicators Review and approve initiatives, policies and practices Assess and monitor HSE risks

Implementing SH&E Mgmt for Success

Noble Corporation
SH&E Management System
SH&E Policy, Goals and Objectives Effective Communication Hazard (Risk) identification, planning & control Design and Engineering SH&E Programmes Employee Competency & Empowerment SH&E Performance measures & monitoring Continuous SH&E performance improvement

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

SH&E Policy, Goals and Objectives
Policy Statement
The Noble Way Doing the Right Thing

Clear long term goals

SH&E performance excellence

Clear yearly objectives and targets

Continually challenging Benchmarked against the industry Consistently better than IADC

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

Effective Communication
Noble Daily Operating Report (NDOR) First topic at Monday morning operations meeting Extensive orientation training and indoctrination Green hat (rooky) and individual mentor Safety leadership training Job Safety Analysis work planning STOP safe behaviours re-enforcement

Relentless reiteration of Nobles expectations

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

Hazard (risk) Identification & Control
SH&E considered & integrated into platform design & operations

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

Design and Engineering
Yellow non-skid drill mats to draw attention and prevent slips and falls Developed and tested an aluminium alloy drilling riser that has numerous cost, safety and operational advantages. Continuing develop of lightweight materials in offshore equipment to reduce safety hazards and improve operational efficiency

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

SH&E Programmes
Safety Leadership Workshops Completed the sixth cycle training 1500 supervisors worldwide Job Safety Analysis Systematic process to prompt employees to consider potential safety, health and environmental risks prior to the execution of work STOP safety observations and feedback Severe Weather Preparations

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

Severe Weather Preparations
Extensive planning enables Noble to minimize damage to platforms struck by hurricanes

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

SH&E Programmes
Recognition & reward for excellence
Internal recognition CEO award for SH&E performance excellence External Certifications ISO14001 certification for all facilities worldwide ISO 9001 International Safety Mgmt. ISM Code Certificate External Awards for SH&E performance IADC North Sea Chapter 2003 Safety Marathon Oil 2004 HES Excellence Award International Regulators Form 2005 Award R.W. Campbell Award for SH&E Mgmt. Excellence

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

SH&E Programme: STOP Observation & feedback

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

Employee Competency and Empowerment
Employee selection and orientation
Highly selective to have the right combination of communication, problem solving and team skills Extensive orientation training & individual mentoring Green hat identification of new employees

Competency Assurance Program

Assesses and verifies an employees capability to perform all job requirements Ensures employees know requirements, have needed skills and can accomplish tasks prior to promotion Establishes clear criteria for advancement

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

SH&E Performance measures
Safety measures
Adherence to international standard Lost time (workday) incident rate, fatal accidents

Environment measures
Adherence to international standard Recycling, Halon reduction Emissions CO2 Energy use

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

SH&E Performance monitoring & reporting
Daily operating reports (NDOR) Weekly Monday morning reporting Quarterly SH&E Committee meetings
Review progress towards objectives

Regular SH&E management system audits Risk management audits

Procedural controls Equipment integrity

Annual Sustainability Report

Implementing SH&E Mgmt for Success

Noble Corporation SH&E Mgmt System

Continuous performance improvement

Implementing SH&E Mgmt for Success

Noble Corporation Benefits

Continuous performance improvement
Safety, Health & Environment Operations Investor returns
38 consecutive quarters of positive earnings

Minimal losses Maximized return on equipment Low insurance costs Recognized industry leader!

Implementing SH&E Mgmt for Success

Noble Corporation Benefits

Continuous performance improvement

Noble Benefits: Safe and Profitable

$ Millions
Mid East jackups 4 Units Mid East Semi upgrades jackups

3,600

3.0

3,000
2,400 1,800 1,200
GE/Bawden
Neddrill/ Other Intl Chiles Transworld Western EVAs

Joint Ventures

2.5
2.0 1.5 1.0 0.5 0.0

600 0
Land/Barge Rigs Sale Mat Rigs Sale

(600) '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03
Note: Replacement value of fleet was $6.3 billion per Jefferies November/December 2003 report

(0.5)

Implementing SH&E Mgmt for Success

Noble Corporation Benefits

Recognized Leader

Implementing SH&E Mgmt for Success

Your Challenge Your Corporation Benefits

Become a Recognized Leader