My SK311 10 RG Tor 0001 00

REGULATORY
2023 Tier 1 OSR MS Audit for Offshore Assets -
SK311
Terms of Reference (TOR)
Consultant:
Vysus Malaysia Sdn Bhd
(formerly known as Lloyd’s Register Technical Services Sdn Bhd)
REVISION HISTORY
Rev. Date Description Author Checked Approved

0 12-Jan-2023 Approved for Implementation Danial
al Khan
Kh
haan Shah Reza / Jailanee Othman
Habib Sanusi
A 11-Jan-2023 Issued for Review Danial Khan Shah Reza / Jailanee Othman
Habib Sanusi
Document COUNTRY FIELD/ASSET FACILITY DISCIPLINE DOCUMENT SEQUENCE SHEET REV.

CODE CODE CODE CODE TYPE NO. NO.
Number
MY SK311 10 RG TOR 0001 00 0

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

Assets – SK311 Rev.: 0
Terms of Reference (TOR) Page 2 of 49
REVISION STATUS / SUMMARY OF CHANGES
Revision
Rev. Revised Paragraphs Reason for Revision
Description
A First issuance Issued for Review
Final Issue Approved for

0
implementation
DISCLAIMER STATEMENT
The information provided by PTTEP is confidential and shall only be used by the party to whom it is disclosed to (“the Receiving
Party”). The Receiving Party shall not disclose, publish, reproduce or reveal the information received to any other third party
whatsoever except with the specific prior written authorization of PTTEP. The Receiving Party shall within five (5) days from
notice from PTTEP return or destroy (upon instruction of PTTEP) all confidential Information furnished by PTTEP.
The Receiving Party shall also take such precautions as are reasonably necessary to protect the confidential information,
including taking measures to prevent loss, theft and misuse.
The Receiving Party shall fully indemnify and keep PTTEP at all time fully indemnified from and against any loss or disclosure of
confidential information and from all actions, proceedings, claims, demands, costs, awards and damages arising directly or
indirectly as a result of such unauthorized disclosure.


TABLE OF CONTENTS
1.0 PURPOSE ................................................................................................................. 4

2.0 BACKGROUND ........................................................................................................ 4
3.0 REFERENCE DOCUMENT ....................................................................................... 6
4.0 DEFINITION .............................................................................................................. 7
4.1 Acronym ..................................................................................................................... 7
4.2 Language ................................................................................................................... 8
5.0 AUDIT SCOPE .......................................................................................................... 9
5.1 Detailed Audit Scope .............................................................................................. 10
6.0 AUDIT METHODOLOGY ........................................................................................ 19
6.2 Notification to Auditee .............................................................................................. 20
6.3 Kick Off Meeting ...................................................................................................... 20
6.4 Data Gathering ........................................................................................................ 20
6.5 Data Analysis and Interviews ................................................................................... 20
6.6 Site Assessment ...................................................................................................... 21
6.7 Finding Verification .................................................................................................. 21
6.8 Presentation & Issuance of Report .......................................................................... 21
6.9 Criteria for Audit Finding Severity Classification ...................................................... 22
7.0 AUDIT TEAM ........................................................................................................... 23
8.0 AUDIT SCHEDULE ................................................................................................. 25
9.0 APPENDIX .............................................................................................................. 26


1.0 PURPOSE
This document describes the overall scope and understanding of OSR MS assurance/audit*;
detailing high-level objectives, scope, roles and responsibilities, methodology and references.
The objectives of the OSR MS assurance are:
i. To verify compliance to OSR MS requirements to achieve AIR and HSE excellence
thorough PTTEP Malaysia facilities
ii. To determine compliance to regulatory, corporate and Petronas requirements
iii. To highlight issues and concerns, and provide recommendations for continuous
improvement
This document is applicable to all PTTEP Malaysia Offshore assets only.
Note: The term “audit” and “assurance” are interchangeable in this Terms of Reference
document
2.0 BACKGROUND
A Joint Task Force between PETRONAS and DOSH was established to introduce a new
framework for upstream operations that allows for partial industry self-regulation for managing
and sustaining safe operation to the upstream facilities by integrating AIR management
system and HSEMS. The OSR MS effectively gave PETRONAS the mandate to regulate and
oversee the management, safe operation and integrity of all upstream assets and facilities in
Malaysian waters on behalf of DOSH.
For equipment associated with offshore operations in Malaysia, specific provisions have been
given several conditional exemptions by DOSH to the FMA 1967 (Section 19 and 36) and the
whole of the Factory & Machinery (Notification, CF & Inspection) Regulations. In giving
approval to these exemptions, DOSH requires all offshore operations to abide with selected
requirements stipulated in the FMA 1967 via a “self-regulation” approach.
OSR MS regulates PSC/RSC to meet the Malaysia Statutory and PETRONAS requirements
in a systematic and standardized manner to ensure integrity and reliability of Malaysian
upstream facilities whilst safeguarding the health and safety of the personnel. Figure 1 shows
how the OSR MS relates to the Statutory and Regulatory requirements and PETRONAS
guidelines. For the purposes of and in relation to the implementation of the OSR, PSC/RSC
shall comply with the OSHA 1994, the FMA 1967 (and Orders of Exemptions) together with
the other regulations such as PSMA 1984 and PDA 1974, in combination with other contract
obligations as outlined in the latest PETRONAS Procedures and Guidelines for Upstream
Activities (PPGUA).
The Integrated Operational Asset Integrity Assurance (IOAIA) is introduced to fulfil the needs
of OSR MS matters in relation to the audit, as this will ensure the provision of a structured
system for effective management of facilities, as well as the operationalization of the OSR MS
elements.


The IOAIA is a platform that aims to achieve asset governance excellence by providing
comprehensive assessment for system effectiveness, gap analysis for continuous
improvement and system sustenance. Asset integrity inputs from IOAIA will provide added
value to process enhancement and will be set as best practice for benchmarking and
knowledge-sharing to promote effective management of facilities.
Figure 1: OSR MS Relations to Statutory & Regulatory Context


3.0 REFERENCE DOCUMENT
Document Title (latest revisions) Document Number
Offshore Self-Regulation Management System (OSR MS) WW ALL X X P 04 013 I
Petronas Procedures & Guidelines for Upstream Activities (PPGUA) PPGUA 4.1
Integrated Operational Asset Integrity Assurance (IOAIA) Manual MY MPM POM X P 08 001 O
IOAIA Audit checklist MY MPM POM X O 05 002 O
Occupational Safety and Health Act (OSHA), 1994 -
Factory & Machinery Act, 1967 -
Petroleum (Safety Measures) Act, 1984 -
Self-Declaration & Self-Assessment Requirements As Part of Tier 1 2020/POM/0004/PAC

Assurance Enhancement


4.0 DEFINITION
4.1 Acronym
For ease of reference, a table of Acronym is provided below:
Term Definition Term Definition
AIR Asset Integrity & Reliability OSR Offshore Self-Regulation
Control of Industrial Major Offshore Self-Regulation
CIMAH OSR MS
Accidents Hazards Management System
CM Corrective Maintenance PDA 1974 Petroleum Development Act 1974
Computerized Maintenance PETRONAS PETRONAS Malaysia Petroleum
CMMS
Management System MPM Management
CP Cathodic Protection PHA Process Hazard Analysis
PETRONAS Procedures and
DCS Distributed Control System PPGUA
Guidelines for Upstream Activities
Department of Safety and Petroleum Safety Measures Act
DOSH PSMA 1984
Health 1984
Escape, Evacuation
EERA PSC Production Sharing Contract
Rescue Analysis
Equipment Integrity
EIAC PSV Pressure Safety Valve
Assessment Certificate
Emergency Systems
ESSA P&ID Piping and Instrumentation Diagram
Survivability Assessment
Fire and Explosion Risk
FERA QRA Quantitative Risk Assessment
Analysis
FMA 1967 Factories Machinery Act RBI Risk Based Inspection
HER Hazard & Effect Register RCFA Root Cause Failure Analysis
Hazard & Effect
HEMP RSC Risk Service Contract
Management Process
Responsibility, Accountability,
HMI Human Machine Interface RACI Chart
Consult and Inform Chart
Health, Safety and
HSE SCE Safety Critical Element
Environment
Health, Safety and
Surface Controlled Subsurface
HSEMS Environment Management SCSSV
Safety Valve
System


Term Definition Term Definition

Smoke and Ingress Impairment
IAP Integrated Asset Planning SGIA
Assessment
Integrated Operational Structural Integrity Compliance
IOAIA SICS
Asset Integrity Assurance System
Installation Operation
IOM SIM Structural Integrity Management
Maintenance
IOW Integrity Operating Window SOE Scheme of Examination
Instrumented Protection
IPF SSS Side Scan Sonar
Functions
IP Intelligent Pigging SOW Statement of Work
KPI Key Performance Indicator SSHE Safety Security Health Environment
Loss of Primary
LOPC TECO Technically Completed
Containment
Well annulus Maximum
MAASP Allowable Annulus Surface TR Temporary Refuge
Pressure
Maximum Allowable
Temporary Refuge Impairment
MAWOP Wellhead Operating TRIA
Assessment
Pressure
MOC Management of Change TSM Topsides Structural Maintenance
NDT Non-Destructive Testing UT Ultrasonic Thickness
OSHA Occupational Safety and
WCR Weight Control Report
1994 Health Act 1994
4.2 Language
In this document, the words may, should, and shall have the following meanings:
May Indicates a possible course of action
Should Indicates a preferred course of action
Shall Indicates a course of action with a mandatory status


5.0 AUDIT SCOPE

The OSR MS Tier 1 audit scope shall cover aspects from the Self-Declaration & Self-
Assessment Requirements as Part of Tier 1 Assurance Enhancement, (2020/POM/0004/PAC)
letter by Petronas MPM dated 6 April 2020.
Tier-1 Self-Assessments shall be in the annual work planning, conducted and reported
annually. The first annual assessment report to be submitted together with the next submission
of annual Self-Declaration. Contractors with large number of assets may schedule programs
continuously, covering a minimum of 20% of assets annually to complete them over a 5-year
period.
It should be noted that this audit will run concurrently with SSHE HSEMS and ISO 45001 –
Occupational Health and Safety internal audits. A separate audit TOR will be issued by SSHE
for the mentioned audits.
2022 audit plan will cover the following facilities in Table 2.

Table 1 2022 Assets to be Audited
No Asset Type Location Remarks
Integrated Oil and Gas Offshore -

1 SAPA South Acis
Production Platform Bintulu
Offshore -
2 SAAA Accommodation Platform South Acis
Bintulu
Offshore -
3 SASA Satellite Oil Platform South Acis
Bintulu
Wellhead Oil Production Offshore -
4 PRPA Permas
Platform Bintulu
The following aspects will be covered in the Tier 1 self-assessment:
Offshore Self-Regulation Management System (OSRMS)
x All certificated machinery is fit and provided with Equipment Integrity Assessment
Certificate (EIAC).
x Tier 1 Assurance on compliance to OSR management system has been conducted.
x Sufficient OSR Inspector available to support OSR activities.
Asset Integrity and Reliability Management System (AIRMS)
x Asset integrity Management System are available.
x SCE are identified and Performance Standards has been approved.


x SCE and PS are populated in CMMS.
x Inspection, Testing and Preventive Maintenance (ITPM) tasks and intervals for SCE and
non-SCE equipment are populated in CMMS and executed accordingly.
x SCE Critical Roles and Responsibilities are clearly identified.
Health Safety and Environment Management System (HSEMS)
x HSE Management System is available.
x Full compliance to applicable Legal and PETRONAS requirements.
x Comprehensive Management Review on organization’s HSEMS to ensure its

continuing suitability, adequacy, and effectiveness.
Process Safety Management (PSM)
x Proactively and systematically, implements process safety elements in safeguarding

asset integrity in accordance with PETRONAS E&P PSM minimum requirements.
x Identify all Major Accident Hazards and implement effective risk control measures in all
process related activities to eliminate, prevent or reduce risk to a level As Low As
Reasonably Practicable (ALARP).
x All remedial actions are recorded, monitored and track to closure.
5.1 Detailed Audit Scope

The Integrated Operational Asset Integrity Assurance (IOAIA) was introduced to fulfil the
needs of OSR MS matters in relation to the audit, as this will ensure the provision of a
structured system for effective management of facilities, as well as the operationalization of
the OSR MS elements.
The Tier-1 Audit will follow the IOAIA audit methodology focusing on the Management
Assurance element and the eight (8) Safety Critical Elements (SCE).
Management Assurance is derived from OSR MS and Process Safety elements. The aims to
ensure the establishment of Asset Integrity and Reliability and Process Safety management
governance of a said facility and in line with OSR MS and Process Safety Management
requirements. The management assurance should cover the entirety but not limited to the
following areas of OSR MS:
• Policy and Strategic Objectives
• Organizational Structure and Responsibilities
• Planning and Implementation
• Measure System Performance
• System Performance and Management Review
• Audits.


It also will cover the Process Safety elements:

• Design Integrity (DI)
• Management of Change (MOC)
• Mechanical Integrity (MI)
• Process Safety Information (PSI)
• Operating Procedures (OP)
• Pre-Activity Safety Review (PASR)
• Process Hazard Analysis (PHA)
• Proprietary Licensed Technology Assessment (PLTA).
SCE are the key safety plant, systems and equipment required to manage Major Accident
Hazards. The definition given in The Offshore Installations (Safety Case) Regulations 2005
(United Kingdom) of a Safety Critical Element is:
“Such parts of an installation and such of its plant (including computer programs), or any part
there:
• The failure of which could cause or contribute substantially to

• A purpose of which is to prevent or limit the effect of - a major accident”.
The eight (8) IOAIA elements derived from SCE are as follow:
1) Structural Integrity
2) Process Containment
3) Ignition Control
4) Detection Systems
5) Protection Systems
6) Shutdown Systems
7) Emergency Response
8) Lifesaving
All the elements above will be audited against its Performance Standards (PS).
List of the assets’ applicable IOAIA Elements/ SCEs that will be covered under this audit are
listed in Table 3 based on Operation Safety Critical Element (SCE) and Performance Standard
(PS):
• South Acis (SA) – Latest excel version Rev 0
• Permas (PRPA) - Latest excel version Rev 0
List of IOAIA Elements/ SCEs distributed by discipline is listed in Table 4.


Table 2 Matrix of IOAIA Elements/ SCEs
Executing
Auditor
Discipline SCE
No Discipline SME Person in charge SCE Group SCE Sub Group PRPA SASA SAPA SAAA
(1) (*if Code
applicable)
Substructure &
Structural/ Facilities Engineering Structural
1 Structural SI001 Foundation, Including Y Y Y Y
Marine (Structural) Integrity
Hull Structure
Asset Integrity (Structural
Integrity) Structural
2 Structural Structural SI002 Topside Structure Y Y Y Y
Asset Integrity (Integrity Integrity
Inspection)
Maintenance (Mechanical)
Maintenance / Facilities
Structural Heavy Lift Cranes and
3 Static Static Asset Integrity (inspection SI003 Y Y Y Y
Integrity Mechanical Handling
Integrity) for NDT
Warehouse / Logistic
Asset Integrity (Integrity
Inspection) Process
4 Static Static PC001 Pressure Vessels Y Y Y N
Asset Integrity (Anomaly Containment
Management)
Asset Integrity (Integrity
Inspection)
Asset Integrity (Pressure
Process
5 Static Static Equipment) PC002 Heat Exchangers Y Y Y N
Containment
Production
Asset Integrity (Anomaly
Management)


Executing
Auditor
Discipline SCE
(1) (*if Code
applicable)
Operations Process
6 Rotating Rotating PC003 Rotating Equipment Y Y Y N
Maintenance Containment
Asset Integrity (Pressure
Integrity) Process
7 Static Static PC005 Piping Systems Y Y Y Y
Asset Integrity (Anomaly Containment
Management)
Operation
Production Operation
Facilities Engineering
Maintenance Process
8 Pipeline Pipeline PC006 Pipelines and Risers Y Y Y N
Production Containment
Inspection
SSHE
Asset Integirty
Relief System (PRV,
Process
9 Static Static Maintenance PC007 PSV, PVV and Burst Y Y Y Y
Containment
Disc)
Process Wells’ Hydrocarbon
10 Wells Wells Production (Operations) PC008 Y Y Y N
Containment Containment
Asset Integrity (Integrity Process Gas Tight Floors and
11 HSE Structural PC010 Y N N N
Inspection) Containment Walls
Hazardous Area
12 HSE HSE Maintenance Ignition Control IC001 Y N Y N
Ventilation
Non- Hazardous Area
13 HSE HSE Maintenance Ignition Control IC002 Y Y Y Y
Ventilation


Executing
Auditor
Discipline SCE
(1) (*if Code
applicable)
Certified (Ex Rated)
14 Electrical Electrical Asset Integrity Ignition Control IC003 Y Y Y N
Electrical Equipment
Maintenance Electrical Earthing
15 Electrical Electrical Ignition Control IC005 Y Y Y Y
(Electrical) / Asset Integrity Continuity
Fuel Gas Purge
16 Process Instrument Asset Integrity (E&I) Ignition Control IC006 Y Y Y N
System
Miscellaneous
17 Static Static Maintenance Ignition Control IC008 Ignition Control Y Y Y Y
Components
Flare Tip Ignition
18 Instrument Instrument Operation / Maintenance Ignition Control IC009 Y Y Y N
System
Offshore Production /
Detection Fire and Gas
19 Instrument Instrument Maintenance DS001 Y Y Y Y
Systems Detection
Asset Integrity
Facility Engineering - Detection
20 Instrument Instrument DS002 Security Systems Y Y Y Y
Telecommunication Systems
Protection
21 HSE HSE Operation / Maintenance PS001 Deluge Systems N N Y N
Systems
Fire Water Pumps
Protection
22 HSE Rotating Operation / Maintenance PS004 (Incl. Caissons, Tank N N N Y
Systems
and Supports)
Operation / Maintenance Protection Fire Main and other
23 HSE Static PS005 N N Y Y
SSHE Systems Distribution System
Asset Integrity (Structural Protection Passive Fire
24 HSE Structural PS006 Y Y Y Y
Integrity) Systems Protection (Incl.


Executing
Auditor
Discipline SCE
(1) (*if Code
applicable)
Doors, Wallsand
Penetrations)
Operation / Maintenance Protection Gaseous Fire
25 HSE Rotating PS007 Y N Y Y
3rd party Systems Protection Systems
Protection Fine Water Spray
26 HSE Rotating Operation / Maintenance PS008 Y Y Y Y
Systems Systems
Protection Chemical Injection
27 Process Pipeline Production Operations PS013 Y Y Y N
Systems Systems
Protection Navigation Aids
28 Electrical Electrical Maintenance (Electrical) PS014 Y Y Y Y
Systems (Aircraft)
Shutdown Emergency Shutdown
29 Instrument Instrument Maintenance SD001 Y Y Y Y
Systems (ESD) Control System
Emergency
Offshore Production / Shutdown
30 Instrument Instrument SD002 Depressurisation Y Y Y N
Maintenance Systems
(Blowdown)
Shutdown
31 Wells Wells Operations SD004 Well Isolation Y Y Y N
Systems
Shutdown Pipeline Isolation
32 Instrument Pipeline Production / Maintenance SD005 Y Y Y N
Systems Valve (Riser)
Shutdown Emergency Shutdown
33 Instrument Instrument Production / Maintenance SD006 Y Y Y N
Systems Valves (ESDV)
Shutdown
34 Process Instrument Operation / Maintenance SD009 Instrument Air Y N N N
Systems


Executing
Auditor
Discipline SCE
(1) (*if Code
applicable)
Temporary Refuge
Emergency
35 HSE HSE SSHE / Operations ER001 (TR) / Primary Muster Y Y Y Y
Response
Areas
Production Emergency
36 HSE HSE ER002 Escape Routes Y Y Y Y
SSHE Response
Emergency Emergency / Escape
37 Electrical Electrical Maintenance Electrical ER003 Y Y Y Y
Response Lighting
Operations / Maintenance Internal, External and
Emergency
38 Instrument Instrument Facility Engineering - ER004 Emergency Y Y Y Y
Response
Telecommunication Communication
Emergency Uninterruptable
39 Electrical Electrical Maintenance (Electrical) ER005 Y Y Y Y
Response Power Supply (UPS)
Emergency Power
Emergency
40 Electrical Electrical Production / Maintenance ER007 (Incl. Generation and Y N N Y
Response
Distribution)
Emergency Manual Fire Fighting
41 HSE HSE Operations / SSHE ER008 Y N N N
Response Equipment
Emergency Process Control and
42 Instrument Instrument Asset Integrity (E&I) ER009 Y Y Y N
Response Alarms
Bunding and Drains
Emergency
43 Process Static Operations ER010 (Hazardous and Non- Y Y Y Y
Response
Hazardous)
Oil Spill Contigency
Emergency
44 HSE HSE Operations / SSHE ER011 (Oil Boomsand N Y Y Y
Response
Dispersants)


Executing
Auditor
Discipline SCE
(1) (*if Code
applicable)
Personal Survival
45 HSE HSE SSHE Lifesaving LS001 Y Y Y Y
Equipment (PSE)
Rescue Facilities (incl.
46 HSE HSE SSHE Lifesaving LS002 Standby Vessel / Y Y Y Y
MOB Boat / FRC)
47 HSE HSE SSHE / Maintenance Lifesaving LS003 TEMPSC/ Lifeboats N N N Y
Alternate Means of
SSHE
Escape (Liferafts,
48 HSE HSE Maintenance/Appointed Lifesaving LS004 Y Y Y Y
Scramble Nets and
Vendor
Ladders to Sea)
Management Process Safety
49 PSM PSM PSM MA007 Y Y Y Y
Assurance Management
50 Wells Wells Wells Wells Integrity WI001 Wells Integrity Y Y Y Y
Note:1. Disciplines highlighted in this column are default auditors of the SCEs.
2. Management Assurance elements (MA001,02,03,04,05, and 06) are captured as part of 2021/22 audit campaign for general PTTEP management systems.


Table 3 List of IOAIA/SCE Elements by Discipline
Discipline Auditors SCE List
Static & Lifting Equipment Specialist SI003, PC001, PC002, PC005, PC007, IC008, PS005, ER010
Rotating Equipment Specialist PC003, PS004, PS007, PS008
Electrical Specialist IC003, IC005, PS014, ER003, ER005, ER007
Instrumentation Specialist IC006, IC009, DS001, DS002, SD001, SD002, SD006, SD009 (PRPA only), ER004, ER009
Wells Integrity Specialist PC008, SD004, WI001
Process Safety Specialist MA007
Pipeline Specialist PC006, PS013, SD005
ER001, ER002, ER008 (PRPA only), ER011, PS001, IC001, IC002, LS001, LS002, LS003 (SAAA
HSE Specialist
only), LS004
Structural Specialist SI001, SI002, PS006, PC010 (PRPA only)


6.0 AUDIT METHODOLOGY

The OSR MS Tier 1 methodology is described in detail in the sub sections below. Figure 2
illustrates the assessment process while Table 5 summarizes the key audit activities.
Figure 2 OSR MS Tier 1 Assessment Process
Table 4 Audit Activities Summary and Typical Duration
Section
Work Activity Key Task Remarks / Duration
Details
Pre-Audit
Sufficient notification
Communication between PTTEP
Notification to period will be
Regulatory and Asset Team. Outline of 6.2
Auditee provided to Asset
audit schedule and facility.
Team.
Engagement between Assessor and
Kick Off Auditee where Terms of Reference 1 day 6.3
(TOR) is explained.
Preparation Data Gathering 1 week 6.4
Audit
Review documents as listed in
checklist and any additional
Data Analysis & documents as required. Interview with
1-2 weeks 6.5
Interviews key personnel to establish overall
understanding and status of
implementation.
Site visit to verify consistency of
information /understanding and
Site Verification 1-2 days offshore 6.6
physical evidence to demonstrate
effectiveness of program.


Section
Work Activity Key Task Remarks / Duration
Details
Findings Verification
Clarification
Validation on findings and its
Session with 1-2 days 6.7
severity rating.
SME/Asset team
Presentation and reporting
Closing Meeting with PTTEP
management where all
Exit Meeting stakeholders agree and 1 day 6.8
endorse audit findings and proposed
recommendations
Agreed timeline
Final Report Final report issuance 6.8
by all parties
6.2 Notification to Auditee

A formal notification via internal memo will be send to Auditee in advanced for audit
preparation. The location, date and method of the audit shall be listed in the notification.
6.3 Kick Off Meeting

The kick-off meeting is the engagement between the Audit Team and Auditee. During this
session, the Terms of Reference (TOR) will be explained, in which the introduction of the
technical personnel in the disciplines from both sides will take place.
6.4 Data Gathering

Checklist & list of documents (or equivalent) as per Appendices shall be made available for
the auditors to review during the OSR MS Tier 1 audit at office. The documents and data
provided by the SMEs shall be made available, accessible, and downloadable (in form of
softcopy) for the assessors during document review to ensure smooth flow and completion of
the audit process in a timely manner. Where applicable, reference will be made to documents
provided in the previous audit exercise.
6.5 Data Analysis and Interviews

Data Analysis will be conducted remotely via a desktop review, computerized management
system review, and other means deemed necessary by the auditors using the checklists in
Appendix 2. The SCE element checklist will be used as reference and the audit will focus on
the applicable verification tasks defined in respective Performance Standards (PS).
During the OSR MS Tier 1 Audit, interview sessions will be conducted with key
personnel/SMEs relevant to the scope online via Microsoft Teams. Interviews may also be
conducted with personnel from other areas if deemed necessary by the auditors.
Findings from the interview, supported by data analysis and evidence for each discipline/area
will be compiled and internally challenged within the assessment team. A separate offshore
site verification checklist will be developed based on the data analysis on specific items to be


verified at each asset.

Activities stated in 6.4 and 6.5 can be carried out in form of a desktop/office assessment or
equivalent assessment and shall be notified in advanced as per Activity 6.2.
6.6 Site Assessment

Site visits at identified PTTEP platforms shall be conducted to validate the actual situation at
site. An assurance plan shall be provided to the Production Superintendent of the platform
with sufficient time given for arrangement of necessary logistics and work planning.
Site assessment can be replaced by a desktop review if situation disallow an on-site
assessment to be conducted (e.g.: pandemic, adverse weather, process safety issues, etc).
During site verification, attention is given in verifying physical evidence to demonstrate the AIR
activities have been properly and adequately done within the specified time frame through
visual inspection on fabric degradation, verification on equipment tag numbers, check on
availability of critical equipment, and validate the emergency system adequacy.
In addition, the assessors also conduct verification on the document available at site that may
not be available during document review i.e. PM checklist, PM test record, and CM work order
etc.
The Site Verification audit team will present the high and medium findings to asset team prior
to demobilisation for immediate corrective action as necessary.
6.7 Finding Verification / Challenge Session

To finalize findings of the audit, the auditors will share the findings as well as the proposed
recommendation for the Audited parties for validation and verification purposes. Severity of
each finding are discussed in detailed to achieve mutual agreement. Any request to
challenge/review the findings after the verification session will not be entertained.
6.8 Presentation & Issuance of Report

The results shall be presented to PTTEP Top Management and later a final report shall be
issued. Findings shall be categorized into High, Medium, and Low in accordance with Petronas
MPM IOAIA assurance rating stipulated in the IOAIA manual.


6.9 Criteria for Audit Finding Severity Classification

Definition of finding categories is shown below:
Finding Rating Definition
High (H) x High priority issue which requires immediate attention for the
Management. There is a serious breakdown on internal control,
governance, and risk management that if not mitigated may lead
to:
o Substantial losses, possibly in conjunction with other
weaknesses in the control framework or the organizational
entity or process being audited
o Serious HSE or reputation damage
o Significant adverse regulatory impact, such as loss of
operating licenses or material fines.
x Breakdown in primary and secondary controls.
x Gaps are pervasive and systemic.
Medium (M) x Medium priority issue which requires timely attention from the
Management. There is breakdown on internal control,
governance, and risk management that if not mitigated may lead
to:
o Financial losses (stipulated levels)
o Adverse regulatory impact, such as fines
o Reputation damage
x Breakdown in primary control but secondary control exists and
functioning.
x Gaps are isolated and not pervasive.
Low (L) x Low priority issue, routine administration attention is warranted.

An internal control, governance and risk management issue, the
solution to which may lead to improvement in the quality and / or
efficiency of the organizational entity or process being audited.
Risks are limited.


7.0 AUDIT TEAM

The audit team for this campaign are listed in the Table 6 below:
Table 5 Audit Team
No Auditor Audit Disciplines Roles Organization
Consultant -
1 Danial Khan Lead Auditor Lead Auditor
Vysus
Static + Lifting Equipment Consultant -

2 Lokman Noh Member
Specialist Vysus
Hasbullah Consultant -
3 Rotating Equipment Specialist Member
Yaakub Vysus
Consultant -
4 Hyffny Athraz Electrical Specialist Member
Vysus
Consultant -
5 Mohammad Faris Instrumentation Specialist Member
Vysus
Christie Usun Consultant -

6 Wells Integrity Specialist Member
Ngau Vysus
Sabreena M Consultant -
7 Process Safety Specialist Member
Aslam Vysus
Consultant -
8 Saiful Rizal Pipeline Specialist Member
Vysus
Consultant -
9 Nazarul Kahar HSE Specialist Member
Vysus
Consultant -
10 Rashid Kadir Structural Specialist Member
Vysus
Member/
11 Habib Sanusi Regulatory - OSRMS PTTEP
Observer
Shah Reza Mohd Member/ PTTEP

12 Regulatory - OSRMS
Sarif Observer
Member/ PTTEP
13 Jailanee Othman Regulatory - OSRMS
Observer


No Auditor Audit Disciplines Roles Organization
Mohamad Saufi Member/ PTTEP

14 Regulatory - OSRMS
Supar Observer
Member/ PTTEP
15 Jascelina Bujang Regulatory - OSRMS
Observer

2022 Tier 1 OSR MS Audit for Offshore Assets – MY-SK311-90-RG-TOR-0001-00

SK311 Rev.: A
8.0 AUDIT SCHEDULE

The audit will be conducted from 16th Jan to 28th Feb 2022
Date Time Audit Element Personnel Involved Lead
16-Jan-23 TBC Kick-off Meeting Auditor and Auditee Lead Auditor

17 Jan-2 Feb 9.00 am - 5.00 pm Data Gathering, Analysis and Auditor and Auditee Respective Discipline Auditor
23 Interview and SME
3-5 Feb-23 6.00 am - 6.00 pm Site Verification (SAPA, SAAA, Auditor and Auditee Site Visit Team Lead
SASA, PRPA)
7-17 Feb-23 9.00 am - 5.00 pm Finding consolidation/ Auditor and Auditee Respective Discipline Auditor
verification
TBC TBC Challenge Session Auditor and Auditee Lead Auditor
TBC TBC Presentation to management Auditor and Mgmt. Team Lead Auditor
Note:
1. Challenge session and presentation to management date and time is subject to availability (TBC).


9.0 APPENDIX
• Appendix 1: OSR Document List
• Appendix 2: Audit Checklist
• Appendix 3: Findings Template


APPENDIX 1: OSR Document List

Applicable for: Offshore Sarawak
1. Governance Documentation
2. Discipline Specific Documentation
2.1 Lifting Equipment
2.2 Electrical Discipline
2.3 Instrument Discipline
2.4 Mechanical Rotating
2.5 Structural
2.6 Pipeline
2.7 Mechanical Static
2.8 Emergency Response and Safety/Life Saving
2.9 Wells (Offshore)


1. Governance Documentation
Not
Yes No
No. Description Available Remarks
(Y) (N)
(NA)
1 Operations HSE Case
2 SCE Identification & Assessment
3 SCE's Performance Standards
4 Internal Audit Report
5 External Audit Report
6 MoC (Management of Change) Philosophy/Manual
7 MoC or e-MOC Register
8 MoC Internal Audit Record
Asset Integrity Management System (Policy

9 and Strategic Objectives)
10 Asset Integrity Organization Structure
11 Asset Register
12 Equipment Integrity and Maintenance Guideline
13 CMMS Strategy Manual
Critical Equipment Allocation Guide/Criticality

14 Identification Procedure
SCE Performance Standard Job Plan /Assurance

15 Task/Assurance Value Equipment Strategy
16 Annual Integrity Review Report


Not
Yes No
(Y) (N)
(NA)
17 Incident Investigation/RCFA Report
18 RCM Manual/analysis/study
Asset/Equipment Reliability Report & KPIs for
19 each facilities
Bad Actor Management/Defect Elimination/RCA

20 Manual/report/KPIs
21 PM/CM Reporting/KPIs
Critical Equipment PM/CM Deviation Management

22 (Manual, work process map, deviation register/list)
23 Spare Part Management Philosophy and Plan
24 Anomaly Procedures / System,
25 Operations & Maintenance Philosophy/Strategy

Organization Chart: Operation and Maintenance
26
27 Override/Inhibit/Isolation Management Procedure
Override/Inhibit/ Isolation Log/record for each

28 facilities
29 Latest Daily Operations Report for each facilities
Integrity Operating Window/Operational Envelop

30 List
31 Maintenance Log
32 IOW Governance Procedure (including RACI) Refer item 30
33 Technical Authority Framework
34 List of Technical Authorities for PCSB
Procedure / Guidelines for Organisational MOC

35 (OMOC)
36 Procedure for SCE Bypass


Not
Yes No
(Y) (N)
(NA)
37 Register of SCE Bypass

Manual / Procedure for Facility Status Monitorig
38 (FSM)
Facility Status Monitorig (FSM) reports (previous 3

39 reports)


2. Discipline Specific Documentation
2.1. Lifting Equipment
Not
Yes No
(Y) (N)
(NA)
1 Lifting Equipment Management System (LEMS)
2 Certificate for Lifting equipment
Certificate of Fitness / Equipment Integrity

3
Assessment Certificate (EIAC) by OSR Inspector
4 Crane Datasheet
5 Crane Load Test Reports
General Assembly (GA) Drawings, Name Plate

6
Drawings
7 Rigging Loft Register
8 Lifting Operations Manual
9 Crane Operating Procedures
10 Crane Design Calculations / Design Basis
11 MOC Records
CMMS (PM, CM) work order and closure - Crane

12
and Lifting Equipment
14 Certificate for Lifting equipment


2.2. Electrical Discipline
Not
Yes No
(Y) (N)
(NA)
Repair/Overhaul Report for Major Electrical
1
Equipment
2 Electrical Equipment Reliability Report
PM & CM List (summary), Technically Completed Refer CMMS

3
(TECO) History database
Ex Equipment Register
–Normal generator
–Emergency generator
–Protection Relays
–Motors (Criticality-1 Motor)
4 –Certified Electrical Equipment (SCE Element

IC003 related)
–HVAC (SCE Element IC001 and IC002 related)
–Fire dampers (SCE Element IC001 and IC002
related)
- Helideck lighting
- NDB
Inspection & Test Report and Work Order for the
5
following (last 3 cycles):


2.3. Instrument Discipline
Not
Yes No
(Y) (N)
(NA)
Fire & Gas shutdown functional test per Fire &

1 Gas Alarm and Shutdown Cause & Effect Matrix.
2 ESD Test Record (Valve closing time,

depressurization curve)
3 *SDV/BDV functional test per Process Alarm and

Shutdown Cause & Effect Matrix.
4 F&G Panel Layout.
5 PM & CM List (summary), TECO History Refer CMMS


2.4. Mechanical Rotating
Yes No Not Remarks

No. Description (Y) (N) Available
(NA)
Shaft centerline and orbit plot (lissajous patent)

analysis report after every breakdown and
1 periodical for rotating equipment with
hydrodynamic bearings - Gas turbine, gas
compressor, pumps, etc.
FFT (vibration) analysis report after every
breakdown and periodical for rotating equipment
2 with anti friction bearings - Gas turbine, gas
compressor, pumps, etc.(CBMI)
3 Lube Oil analysis report for 2years
Relevant maintenance procedure for every

4 rotating equipment ( Performance Standard),
(Maintenance procedure)
Maintenance checklist for all rotating equipment

5 and their ancillaries
Unplanned Major break down reports for rotating

6 equipment
7 IOM Manual for all rotating equipment
Post maintenance acceptance criteria major

8 rotating equipment
Export Pumps and Compressor Reliability and

9 Availability Trending
10 Fire water protection system demand analysis
Fire pumps (jockey, electric, diesel), initial and

11 periodic testing report (performance test, pump
curve and initiation, manual and auto).
12 Deluge valve periodic test report/record
Foam deluge periodic test/report (yearly foam

13 producing/proportioning capability test report with
photos and yearly lab test report)


Yes No Not Remarks

(NA)
14 Gas turbine 4k and 8k report
MOC on any bypass (machinery protection

system), modification, improvement project and
15 improvement project on any rotating equipment
and its ancillaries
16 RCFA/Failure Analysis Report
Equipment List for all Rotating Equipment, Fire

Water Pump, Foam system, Water Mist,
17 FM200/NOVEC 1230, Air blast coolers (lube oil,
gas and others)
*Fixed (Foam,water mist, sprinkler,firewater
18 monitor) Firefighting Equipment


2.5. Structural
Yes No Not Remarks

(NA)
Structural Integrity Management System

1
(SIMS)
SIM Data Management System (in excel
2
format)
Structural Integrity Compliance System
3
(SICS) Data / RBI Assessment Reports
4 WCR Procedure on Brownfield modification
5 SIM Procedure
6 Dropped Object Study
7 Operational Performance Standard
8 Anomaly Management Procedures / System
Underwater Inspection Plan, Program and

9
SOW
10 Topsides Inspection Plan, Program and SOW
Topsides Structural Maintenance(TSM)

11
Reports
As-built drawing and brownfield modification
12
drawing
13 MOC Register for Structural Modification
14 Structural Anomalies Register
15 Abnormal and Accident Event Register
16 Pushover Analysis
17 Fatigue Analysis
Historic and latest Topside Structure Survey

18
Report


Yes No Not Remarks

(NA)
19 Helideck Strength Analysis Report
20 Helideck Inspection Reports
21 Helideck Certificates
22 Weight Control & COG Report
23 Latest Metocean
Substructure Static Inplace Analysis Report

24
(with Topside Inplace Analysis)
25 Seismic Analysis
Vessel Collision Analysis for Substructure,

26
RG & BL


2.6. Pipeline
Not
Yes No
(Y) (N)
(NA)
1 Corrosion Management Plan
2 Pipeline Pigging Procedure
3 Pipeline As Built Drawings
Pipeline inspection report covering wall thickness,

4 CP, span, coating, marine growth etc.
Corrosion Inhibitor Injection Report - covering
5 frequency, type, quantity of chemical etc.
Pipeline Database with below info
*From where to where
*Service
*Diameter, WT.
6 *Whether it is Pig-able, IP-able.
*Date of last SSS with report references.
*Date of last IP with report references.
*Date of last VI with report references.
The latest IP, SSS and VI reports for all the
7 pipelines (soft copy).
The Latest UT Report for Riser, Launcher and
8 Receiver.
9 Procedure for dealing with findings (e.g. freespan)
Last IP report and VI report for most critical (risk)

10 pipelines.
11 Pipeline Integrity Management System (PIMS)
12 Risk Based Inspection (RBI) procedure
13 Risk Based Inspection (RBI) report for all pipelines
14 Fitness for service (FFS) assessment
15 Annual pipeline integrity report
16 Anomaly master register


Not
Yes No
(Y) (N)
(NA)
17 Pipeline MOC record
18 Pipeline life extension report
19 Inspection reference plan (IRP)


2.7. Mechanical Static
Not
Yes No
(Y) (N)
(NA)
Certificate of Fitness / Equipment Integrity

2 Assessment Certificate (EIAC) by OSR Inspector
3 Rigging Loft Register
4 Lifting Operations Manual
5 Crane Operating Procedures
6 MOC Records
Pressure Equipment Integrity Management

7 System
8 RBI Procedure and Methodology
9 RBI Assessment Report (last 2 cycles)
10 Corrosion Management Plan
Inspection Reference Plan ( in excel format) for

Piping, Pressure equipment, Tank extracted from
software/ manual containing info on inspection
11 type, frequency, last inpection date, next
inspection date, remaining life, degradation
mechanism, material of construction)
Refer Anomaly
12 Anomaly Master list
register
13 Anomaly Management Procedure


Not
Yes No
(Y) (N)
(NA)
14 Temporary Repair List
15 Temporary Repair Management Procedure
PSV integrity, inspection and maintenance

16 management procedure
17 PSV Master List and Inspection Plan
Fabric Maintenance Inspection and Maintenance

18 Governance Document
Topside Painting / Corrosion Survey Report

19 (Piping and Pressure Equipment)
Integrity Assessment Certificate for each Pressure

20 Equipment issued by OSR
Tier 1 audit related to Pressure Equipment,

21 Piping, Crane
22 LOPC register last 10 years
Valid Certificate of Approved Piping Inspector, PV

23 Inspector, NDT Inspector


2.8. Emergency Response and Safety/Life Saving
Not
Yes No
(Y) (N)
(NA)
Monthly safety equipment checklist/report (last 3

1 months)
2 Area Safety Inspection Report (last 3 months)
3 Firefighting Equipment Maintenance Record
*Totally Enclosed Marine Propelled Survival Craft

4 (TEMPSC) Inspection and Maintenance Record
Lifesaving Appliances Maintenance Record (life
5 raft, rope ladder, lifebuoy, EEBD, ELSA, Survival
kit)
Emergency Response Inspection and
6 Maintenance
Emergency Communication Inspection and

7 Maintenance Record
Drain System Maintenance Report (drain vessel,

8 drain sump, drain pump)


2.9. Wells (Offshore)
Not
Yes No
(Y) (N)
(NA)
1 Well Integrity Management System (WIMS)
2 Well Completion Schematic Diagram
SCSSV, Wellhead and Xmas Tree valves testing

3 and Repair Reports (PM/CM reports) - 4cycles
4 Well Intervention / Well Services Report
5 Well Integrity Status Monthly Report
Well annulus MAASP and MAWOP calculation

6 data
7 Well MOC and Risk Assessment Report
SSV and SCSSV Opening and Closing time

8 testing report
9 Monthly well test report for 3 months
10 Wellhead and Xmas Tree Schematic Diagram


Not
Yes No
(Y) (N)
(NA)
Tubing Head and all annulus pressure monitoring

11 data and plots
12 Annulus pressure bleed-off test report/data
13 End of well report or Well Handover report
Well corrosion management strategy and

14 corrosion test/measurement
15 Well Operating Manual and Procedure
Casing and Cement scheme data (casing size and

16 type/grade, cement top and logs, etc.)
17 Well abandonment data/report and schematics
18 Active, Idle & P&A well lists.
19 Idle wells plans & P&A wells report
20 Latest MIT & MPLT reports
21 Approved Performance Standard


Not
Yes No
(Y) (N)
(NA)
22 PMMS asset register, work order list & Task List
23 SWAP 1, SWAP 2 certificates & proposal
24 Wells Completion Report
Ref Doc : Integrated Operational Asset Integrity Assurance (IOAIA) Manual 2019


APPENDIX 2: Audit Checklist

Please refer the attached Tier 1 OSRMS Checklist in Excel which includes the Operation
Safety Critical Element (SCE) and Performance Standard (PS):
• South Acis (SA) – Latest SCE PS (excel)
• Permas (PRPA) – Latest SCE PS (excel)


APPENDIX 3: Findings Template

1. Audit Findings
2. Audit Observations


SK311 Rev.: A
1. Audit Findings


SK311 Rev.: A
2. Audit Observations

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Terms of Reference (TOR)

Rev. Date Description Author Checked Approved

Document COUNTRY FIELD/ASSET FACILITY DISCIPLINE DOCUMENT SEQUENCE SHEET REV.

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

REVISION STATUS / SUMMARY OF CHANGES

A First issuance Issued for Review

Final Issue Approved for

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

1.0 PURPOSE ................................................................................................................. 4

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

Figure 1: OSR MS Relations to Statutory & Regulatory Context

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

3.0 REFERENCE DOCUMENT

Document Title (latest revisions) Document Number

Offshore Self-Regulation Management System (OSR MS) WW ALL X X P 04 013 I

IOAIA Audit checklist MY MPM POM X O 05 002 O

Occupational Safety and Health Act (OSHA), 1994 -

Factory & Machinery Act, 1967 -

Petroleum (Safety Measures) Act, 1984 -

Self-Declaration & Self-Assessment Requirements As Part of Tier 1 2020/POM/0004/PAC

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

Term Definition Term Definition

May Indicates a possible course of action

Should Indicates a preferred course of action

Shall Indicates a course of action with a mandatory status

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

5.0 AUDIT SCOPE

2022 audit plan will cover the following facilities in Table 2.

No Asset Type Location Remarks

Integrated Oil and Gas Offshore -

The following aspects will be covered in the Tier 1 self-assessment:

Offshore Self-Regulation Management System (OSRMS)

x Tier 1 Assurance on compliance to OSR management system has been conducted.

x Sufficient OSR Inspector available to support OSR activities.

Asset Integrity and Reliability Management System (AIRMS)

x Asset integrity Management System are available.

x SCE are identified and Performance Standards has been approved.

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

x SCE and PS are populated in CMMS.

x SCE Critical Roles and Responsibilities are clearly identified.

Health Safety and Environment Management System (HSEMS)

x HSE Management System is available.

x Full compliance to applicable Legal and PETRONAS requirements.

x Comprehensive Management Review on organization’s HSEMS to ensure its

Process Safety Management (PSM)

x Proactively and systematically, implements process safety elements in safeguarding

x All remedial actions are recorded, monitored and track to closure.

5.1 Detailed Audit Scope

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

It also will cover the Process Safety elements:

• The failure of which could cause or contribute substantially to

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

Table 2 Matrix of IOAIA Elements/ SCEs

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00

2022 Tier 1 OSR MS Audit for Offshore MY-SK311-10-RG-TOR-0001-00