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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 Noble¶s HSE Committee
ensures a high level of scrutiny of this critical
area and reinforces the importance of HSE
performance to Noble¶s 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 Noble¶s 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
± ³The Noble Way ± j
   
´
‡ 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 Noble¶s 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
± ³Green hat´ identification of new employees
‡ Competency Assurance Program
± Assesses and verifies an employee¶s 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
± 

 
Implementing SH&E Mgmt for Success

‡ Noble Corporation Benefits

± Continuous performance improvement
Noble Benefits: Safe and Profitable

 
 
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647 64/ 648 644 649 690 692 693 695 69, 697 69/ 698 694 699 600 602 603 605
Note: Replacement value of fleet was $6.3 billion per Jefferies¶ November/December 2003 report
Implementing SH&E Mgmt for Success
‡ Noble Corporation Benefits

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Implementing SH&E Mgmt for Success

‡ Your Challenge
‡ Your Corporation Benefits

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