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Wells Integrated Gas:

Red and No-Go Zone Management Policy

Josephine Song
Integrated Gas Drops Focal Point

Shell Integrated Gas RESTRICTED February 10, 2014 1


DROPS Forum Brunei Nov 2013
DEFINITIONS AND CAUTIONARY NOTE
 Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the
United States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C
definitions.

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and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by
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has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as
"jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell
interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest
held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

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There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed
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developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks,
including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays
in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in
their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional
factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2011 (available at www.shell.com/investor and www.sec.gov ).
These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement. Neither Shell nor any of its
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 Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S.
RESTRICTED
investors are urged to consider closely the disclosure in Shell's Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these
forms from the SEC by calling 1-800-SEC-0330.
OVERVIEW

 DROPS statistics to date

 Observations on Red Zones on different units

 Implementing the policy

 Responses from contractors on Red and No-Go Zone Management policy

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DROPPED OBJECTS – TIMELINE

16
55 YTD*
No. of Dropped Objects (RAM Potential 4+5)

14

12

10

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009 2010 2011 2012 2013 YTD

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WELLS IG DROPS INCIDENTS STATISTICS (YTD 31ST OCT)

54 Incidents reported
12 Hi-Potentials
− 83 % in Red/ No-Go Zones

Source: Shell Fountain Incident Management


System

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VARIATIONS ON A THEME - RED ZONES IN BSP RIGS
Access ladder to R/F DRILL FLOOR RED ZONE

A/C HPU

Access Draworks
ladder
to R/F
MCC
room

Dog UP
I/R
House RC I/R Access ladder to R/F

Swaco
Updated :- 5th December 2011 NOTENOTE
Gate REDWHEN
RED ZONE ZONE WHEN CATWALK
CATWALK
MACHINE OPERATING

V-Door

Staircase to Staircase to
Rig floor Rig floor

PB Draw work
Degasser

footprint

footprint
Derrick

Derrick
Dog
House Green Zone
Warning
sign
Warning

Manifold
Rotary sign

Choke
table

Red Zone Standpipe

footprint

footprint
Derrick

Derrick
Manifold

Hi Line Winch
V-door
Winch West Pelaut Rig
Floor

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OBSERVATIONS

Large variance of understanding and interpretation of Red Zones, Safe Zones and the objective of Rig Floor
Management. A big link to DROPS!

Not all units have a detail Policy or Procedure about Red zones
– The most detail was from one rig contractor refers to Entire Rig
– Some are basic – not part of the Management System and not embedded in HSE Cases

No Hard wired message on “limiting activty” in High Risk Zones and the implicit use of “Safe Zones”

Some Service Companies do not have “Red Zone Management” Polices in their work instruction / procedures for staff.
– Huge reliance on Drilling Contractor HSEMS

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RESTRICTED
RED/ NO-GO ZONE MANAGEMENT POLICY

Policy statement for Integrated Gas:


High Risk Work Areas (NO-GO Zones), and controlled hazards areas (Red Zones) should be managed with
the objective of limiting the presence of personnel in the vicinity of hazardous equipment & unconstrained
sources of energy.

Implementation:
— All Wells operations work locations shall have a process of identifying and policing DROPS ‘NO-GO’ and
‘Red Zones’.

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RED/ NO-GO ZONE MANAGEMENT POLICY (2)
NO-GO ZONES:
— Restricted areas, strictly controlled by a Permit to Work.
— Shall have physical barriers.

RED ZONES:
— To be entered only when authorised.
— Entry must be controlled by a designated person in charge.
— Shall have a practice of active Red zone monitoring, including but not limited to the appointment of dedicated ‘Red Zone
wardens’ for routine operations.
— Shall be physically visible, with active barriers or delineation.

— A DROPS Risk Assessment shall be conducted for ALL ‘Work at Height’ activities to reduce DROPS risks
and verify ‘NO-GO’ and ‘Red Zones’ effectiveness.
— ‘NO-GO’ and ‘Red Zones’ management shall be included in work location inductions and training.

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BEST PRACTICES
Focus No. 1:
Risk Assessment to verify Zone effectiveness (IDENTIFYING)

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BEST PRACTICES (2)
Focus No. 2:
Zone Control (POLICING)

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CASE FOR CONTINUED ACTION

“I can’t shake the feeling that we all have been desensitized to our horrendous DROP’s frequency and
that eventually our luck is going to run out. I don’t want to look back in 6 months time and say if
only we had done more.”
- Peter Sharpe
18 July 2013

Who?

?
June 2008 April 2009 August 2010 When?

10 months 16 months 35 months ?

Pinedale USA South Texas USA Egypt Where?

Fatal incident caused by Fatal incident, floor man Fatal incident, during What are we doing
falling drill pipe struck by forklift lifting rig move operation differently to prevent the
device next fatality?

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Integrated Gas BIP 2013

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DROPS timeline

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Prevention of Dropped Objects Manual
EP 2009-9039

SCOPE- all operations and activities associated with drilling, completion


and well intervention including mobilisation/transportation of personnel
and equipment to/from operation related location

There are four principles, with a number of Mandatory Requirements as set out in the Prevention of Dropped Objects Manual.

Principle 1 Contractors providing equipment and personnel on Shell well sites shall have a Dropped Object
Prevention Scheme in place
Principle 2 A systematic dropped object inspection programme shall be in place
Principle 3 Worksite Hazard management for dropped objects shall be in place
Principle 4 Audits to check for compliance with Dropped Object Prevention Scheme shall be in place

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What are we doing to STOP dropped objects ?

Prevention of Dropped Objects Manual


Gap analysis Template
EP 2009-9039

The gap analysis is a tool to assess the compliance with the mandatory
requirements of our Prevention of Dropped Objects Manual (EP 2009-9039)

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What are we doing to STOP dropped objects ?

Volume 1 includes: Volume 2 includes: Lifting and Hoisting:


Mandatory requirements Expands on mandatory reqs Planning and execution of lifting ops
Role of focal points DROPS inspection programme Personnel lifting
DROPS calculator Audits to check for compliance Design and certification of equipment
Tubular handling No-Go Zones and Red Zones Crane operations
Derrick temp equipment Slinging of tubulars
No Go and Red Zones Pre-job inspections
Reliable securing practices

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Dropped Object Campaign – Training Packs

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IG DROPS PREVENTION PLAN 2013

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Drops Focal Points in Integrated Gas
 Regional Focal Point – Josephine Song (Josephine.Song@shell.com)
 SMEP - Mel Bryant Dulam (Well Eng), Adrian Maidi (CWI Eng)
 Deepwater – Michael Bark (HSE)
 BSP – Ismail Hamzat (SWE) / Imran Amir (HSE)
 SDA – Wout Keultjes (SWE) / Lance Costello (Contractor HSE) / Michael Chapman (HSE)
 Arrow – Ben Prain (HSE), Les Friske (Well Eng), Ray Watt (SWMS HSE)
 STOS – Bernard Poon (Well Eng), Ryan Ashworth (CWI Eng)
 Qatar - Dorcas Odeinde (HSE)
 SCEPCO – Chen Bo (HSE)

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