& TRAVERSE ENERGY SERVICES LIMITED 4.0. HSE MANAGEMENT SYSTEM 4.1 Introduction ‘TESL is a Nigerian indigenous servicing company providing range of services to the Oil and Gas sector. Our commitm is to achieve the highest standards of Quality, Environment, Safety, Security and Health practices inthe oil and gas industry We are cognizant ofthe fact that accidents do not just happen but are caused, so we develop a Health, Safety & Environment Management Systems (HSE-MS) to lead us to work efficiently and effectively without incurring losses to People, Assets; Environment and Reputation. Security is equally of importance to us Foro or open, EEE aM aca RE nlc ec le to low reson rach (ALARE) TH arama is ont four HSE MS a _ pees OBJECTIVES, POLICIES, PROCEDURES AND PRACTICES for HEALTH, SAFETY ted ERVTRONSCED cule, Hil We oc MRED ecw rice ee a ae ee wich we cbt ato bans hy HSE a wich inch © Noharm to people ' + Nolen ate + Nesp «No quarel with any betta by # Zero Lost time injuries (LT1’s) 13 [Page 1831 Alcon Road Woji Port Harcourt Rivers State |RC1237685} TRAVERSE ENERGY SERVICES LIMITED In pursuit of our business objectives, we shall always take into foremost cognizance our Community Alfuirs, Safety, Health, Environment and Security (CASHES) responsibilities to our stakeholders and {hind parties in accepting and implementing the policies and procedures of our client. We believe that our CASHES policy commitmebt is to achieve quality, ellcieney and profitability in cour business. The company relics on our employees ta fmplement and improve upon our CASHES policies. Thos it will emphasis individual responsbites|in HSE related matters through HSE trainings, meetings, pep talks and semindrs/ workshops. We cal sey caer el polit ll on plan AEE the hers wh proved strategies. We shall enforce the Employee's compensation policy on the event of any occupational related illness, injury or accident or fatality, We shall ensure that competent skill personnel are employed according to the company employment policy. We shall also apply consequence management againat the erring staf based, the management discretion. [Page 1831 Alcon Road Woji Port Harcourt Rivers State |RC1237685TRAVERSE ENERGY SERVICES LIMITED 5.0 MANAGEMENT RESPONSIBILITY 5. Management Commitment ‘The Managing Director and Management of TESL endorse and are committed to the QAS as prescote in this mana, This commitment indies: Communicating and maintaining awaresss ofthe importance of mestng cient, lege and other requirements; Fstablhing and period revengthelqulity policy, Ensuring that quality objective are stable; Conducting management reviews and acting on ndings and Ensuring the availability 6fnecesiry regourecs. 5.2. Client Focus “Thie QAS has been designed to provide specific direction toward ensuring that client needs and ‘expectations are determined, converted into requirements, and fulfilled with the aim of achieving client satisfaction, os 5.3. Quality Policy ne ‘A Quality Policy has been establched by the Managing Director to communicate TESL's commitment to client satiation with continuous improvement of this policy, and to comply with client and other specified requirements, The Quality Poliey is further defined through the cxtablishment of quality objectives within the organization, ‘The Quality Policy is a controlled document. Copies ofthis policy are posted for prominent display for both employees and client alike, During the annual Management Review, the Quality Policy is reviewed for continuing suitability 15 [Pace 1831 Alcon Road Woii Port Harcourt Rivers State |RC1237685,TRAVERSE ENERGY SERVICES LIMITED 54° Planning SAA Qui ty objectives Quality objectives are established and reviewed on an annual basis. These objectives are measurable and consistent with the quality policy. These objectives are then used asthe basis for QAS planning, 5.4.2 QAS Planning “This Quality Plan and all the supporting processes provide the framework for QMS planning, reflecting the methous for maintenance of Oil and Gas facilities. This planing i further detail by (Quality Plans Management Reviews are performed annually to evaluate and revise these plans, and to reasure the company's progress towards meeting the quality objectives upon which these plans are based. 5.5 Responsibility, Authority, and Commilinication’ 5.5.1. Responsibility and Authority Functions and interrelations within TESL including responsibilies and authorities, are defined in job Enwre at QAS reirement are catia, plement, ad Representative |” mantuned by eh doparmen iin the onion, ‘+ Report on the performance ofthe QAS to Management for review and as 3 [a for continuously improving the efficiency ofthe quality system + Act ae lisison sith external boies and clients on matters relating to the TTESL's quality system; and ‘+ Ensure the promotion’ of awareness of client requirements throughout the organization, Bl Pace 11 Alcon Road Wo Port Harcourt Rivers State |RC1237685TRAVERSE ENERGY SERVICES LIMITED aly Decent and aan dh QAS al the development of Quay eee! Procedures and their subsequent revisions; + Perform sheled suis othe QAS a mplented within the Organon and report resus tothe Management Representative ane result in sobut robler + nate srt actin hich result in shtions ogualty problems and verifying results; a + Revcw the implementation ofthis QAS and report the status othe Management Reprsetive, + Conduct QAS Traning of Qualty personnel; * Perform evaluate ofeupler vTESL; and * Determine ad Kouebtop work dreclon with concurence af the Managemest Repeeertve Line Managers |» Implement the QAS as defined by this planned related procedures; & Supervisors | * Obtain and communicate client requirements to the appropriate fever Rinna organ + EEtate that gualiled personnel and other resources are svaable tolmplaent te QA: + Bef oe pets ely cen refuel safety, cnt, sched ja pertormanon sod ¢ Emre tat) penoutel comply with applicable sandards quality, Allipersonnel”“] + Ensure the quality oftheir work; + Operate in conformance with the requirements of this QAS; and + Stop work in progress to make appropriate notifications when nel cons stor raglrements te not beng mck a|Page 131 Alcon Road Wo)l Port Harcourt Rivers State |RC1237685TRAVERSE ENERGY SERVICES LIMITED 6.0, RESOURCE MANAGEMENT 6.1. Provision of Resources ‘TESL management of resources i controlled within the annual budgeting cyele. Each department manager has the opportunity to request requied resources that are necessary to implement and improve the processes ofthe QAS and to address client satisfction. If special needs arise mid-year, every effort is made to determine and obtain the necessary resources 6.2 Human Resources The responsibility for obtaining competent, qualified personnel is a joint responsibility of the requesting manager and Human Resources. 62.4. General Personnel who are assigned responsibilities defined in the QAS are competent on the basis of celucation, training, ail and experience, ‘Training and qualification requirements for personnel whose work directly affects quality are determined and documented by the department manager, where not otherwise specified. 62.2 Competence, Awareness, and Training TES’ employee traning program is designed to claly demonstrate the competence of personnel performing work tat fects quality. Training i provided to sais these needs within 30 days of hire hal training needs and for ensuring that training neds are met in ately and comectve manner, All ‘or when the need is determined, Department Managers are responsible for identifying fulltime employees and contract personnel responsible for performing activities affecting quality shall receive QAS indoctrination and training. ‘The Waiting program is designed to ensure that staff and. contractors are aware of the purpose ofthis QAS, the Quality Policy, the relevance and importance oftheir activities, and how they contribute to the achievement of the quality objectives DIPage 131 Alcon Read Wojl Port Harcourt Rivers State [RCI237685,rin TRAVERSE ENERGY SERVICES LIMITED Training records, including eduestion, skills and experience are maintained on all permanent employees, as well as contract employees who are hired for long term or significant assignments. ‘Training effectiveness is evaluated, as applicable, through the student's end-of-course scores and periodic evaluation of employee performance. 63 Infrastructure TTESL idenules, provides, and miafntains the infrastructure it needs to achieve the conformity oft services including: + Buildings, workspace and associated utiles; + Equipment & Facility, + Provide cliente appropriate Engineering standard) 64 Work Environment i ‘TESL determines and manages the human and physical factors of the work environment needed to achieve product conformance, In maintaining an acceptable work environment, TESIis committed to operating ina safe and healthy ‘manner that isin compliance with all applicable laws and regulations, afPace 131 Aleon Road Wo Port Harcourt Rivers State [RCI23768STRAVERSE ENERGY SERVICES LIMITED 7.0 PRODUCT AND SERVICE REALIZATION 7.1. Planning for Project and Service Realization, Work Instructions, break-down sheets, Inspection & Test Plans (ITP) and other documents specifying the processes of the QAS and the resources to be applied to a specific proj order are referred to under this program as Quality Plans. Quality planning elements specifically determine: + Quality objectives and requireménts fr naintenance ofl and gs fies + The need for process, facilities, documentation, and ether resources required for realization of projectsand services; Process verification and validation, inenitorng, inspection and tet actites specific to the delivery of projects and the rtria for acceptance ad + The records to demonstrate project delivery and proces conformance. The form of the ctput ofthis plang all be std om procedural requirements, organizations) needs and/or client requirements 7.2 Client-related Processes 7.2.1. Determination of Client Requirements “TESL ensures that client requirements are defined, including: + Requirements specifi by the client, including requirements for availablity, delivery and support; + Requirements not specified by the llet but necessary for intended or specified use, where known; + Statutory and regulatory requirements s applicable, related tothe projet; and + Any ational requirements determined by TESL. [Page #831 Alcon Road Woji Port Harcourt Rivers State |RCA237685TRAVERSE ENERGY SERVICES LIMITED 7.2.2 Review of Client Requirements ‘TESL ensures tha, prior to any commitment of service to a client (¢.g. Submission of a tender, acceptance of a contract or order) client requirements are reviewed, together with any addtional ‘requirements determined by TESL to ensure that + Clint requirement are defined; ‘Where the client provides no documented fatement of requirement, the client requirements are confirmed before acceptance; ‘+ TESL asthe ability to mect defined requirements and “The appropriate application is elected and capable of mecting the client's requirements Records of reviews, including any significant changes or actions resulting from the review, are ‘maintained, Records are also maintained of pertinent discussions with a client relating tothe client requirement, and of the quality of service. 723 Client Communication | — ‘TESL maintains communication with client before, during, and after the delivery of projects. Tis ‘communication includes, bu isnot limited to: *+ Service information and specifications, which are controlled; + Inquiries, contacts or order hanaling including amendments; and + Client feedback, including client complaints Information is available to clients through multiple channels, and clients are able to provide Feedback. directly to management. All complaints are recorded, analyzed, and appropriate action is taken to ‘remedy the complaint in a defined timely manner. 23[Page #831 Alcon Road Woji Port Harcourt Rivers State [RC32376TRAVERSE ENERGY SERVICES LIMITED 7.3 Purchasing 731. Purchasing Process ESL has established the following purchasing process to ensure that purchased product conforms to specified purchase requirements, The specific type and extent of control applied to the supplier and the purchased product shall be dependent upon the effet of the purchase product on subsequent product realization or the inal product. Suppliers willbe evaluated and selected on the basis of ther ability to meet TESL’s requirements and any quality requirements or standard that applies. Ax a minimum, suppliers are evaluated and selected based on three considerations: + Their ability to delve to specified requirements; + Their ability to achive consistent delivery, and + Cost-competitve pricing. “The results of evaluations and subsequent follow-up ations are recorded, A list of approved suppliers shall be maintained by TESL, with any purchasing limitations noted that may apply. This list of pproved supplier shall be maintained by the Quality Manager an shall be reviewed and approved at east samy 7.32 Purchasing Information Purchase Orders (POs)/ Work Orders generated by TESL shall pecially describe the product to be purchased and job tak to be done. POs shall ensure the adequacy of the specifications prior to communicating it the supplier, and should include, a appropriate, the following information: + The type, dass, grade, or other precise information including any approval requirements. + A reference to the applicable or accompanying drawings, specifications, or other Mirage #131 Alcon Road Woji Port Harcourt Rivers State [RC1237685’ TRAVERSE ENERGY SERVICES LIMITED relevant documents + QAS requirements including the quality system standard to be applied er specific acceptance “teria to include any roguirements for personnel or equipment qualiicabon. 2.3 Verification of Purchased Products Pachased tems all undergo receipt ington to verify conformance to pce requirements Receipt inspection shall uke into account the results of previous supplier evaluations and receipt seperti wel be demas pfrmaie of he eer. oo A hy aoe, provkact pending delivery, shipment or use, Product in storage shall be checked periodically to asexs their condition, Appropriate methods for authorising receipt to and shipping from soch areas are supalited, + Prococts and Materials are delivered to projects using TESL designated alPage 31 Alcon Rood court Rivers State [RCI2S76SSTRAVERSE ENERGY SERVICES LIMITED 75. Control of Measuring and Monitoring Devices ‘TESL determines the monitoring and measurement to be undertaken and the monitoring and ‘measuring devices needed to provide evidence of conformity of equipment & materials to determined requirements “These processes are defined in documented Standard Work Procedures to ensure that monitoring and measurement is carried out ina manner that is consistent with applicable monitoring and measurement requirements ‘Where necessary to ensure valid results, measuring equipment is: Calibrated or verified at specified intervals, oF prior to use, against measurement standards traceable to intemational or national measurement standards; + Where no such standards exist, the basis used for ealbration or verification is recorded; + Adjusted or re-ajusted as necessary + ented to enable the elbration status to be determined + Safeguard from adjustments that would invalidate the measurement results and + Protected from damage and deterioration during handling, maintenance and_ storage. “TESL astesses and records the validity ofthe previous measuring results when the equipment is found not to conform to requirements. TESL take appropriate action on the equipment and any materials affected. Records ofthe results ofeibration and verification are maintained When used in the monitoring and measurement of specified requirements, the ability of computer software to satisfy the intended application is confirmed. This is undertaken prior to initial use and reconfirmed as necessary 26 Pace 1131 Alcon Road WojiPort Harcourt Rivers State |RC1237685.& TRAVERSE ENERGY SERVICES LIMITED 8.0. MEASUREMENT, ANALYSIS, AND IMPROVEMENT 8.1 General ‘TESL defines, plans, and implements the measuring, monitoring, and improvement activities needed js is described to assure conformity and achieve improvement. Further information on these ati in the sections that follow and in their related procedures. 8.2 Monitoring and Measurement 8.2.1. Client Satisfaction Client satisfaction is used as one of the measurements to evaluat the performance of the QAS. Client satisfaction is determined by monthly review of Client Satisfaction Surveys by client complaints, by direct communication with the client, and through periodic tntermal suits to ensure that client requirements have been met, Periodic review of ths lem ssicton data tigers analy of the relat information, mangement reporting, and ilates aton() at are necomary to cher remedy cleat diate o fare improve cl fiction 8.2.2 Internal Audit : Internal quality audits are planned and performed on a regular basis throughout TESL by an auditor cor audit tcam in accordance with documented procedures. Audits are performed by trained personnel on areas for which they ve no direct responsiblity. The audits objectively evaluate the effectiveness ofall aspects ofthe QAS. Internal audits are scheduled on the basis of status and importance of the activities involved. The audit scope, frequency and methodologies ae defined a7 [Pave 131 Alcon Road Woji Port Harcourt Rivers State |RC1237685} TRAVERSE ENERGY SERVICES LIMITED and where applicable, measurement of QMS procestes to ensure that client requirements ‘These methods confirm the contisuing abilty of cach process to achieve planned result ts, When Planned results are not achieved, corrects and preventative actions ae taken, as appropriate to ‘ure conformity of Horizontal DiretionglDiling & Onshore/Oftare Pipe lying Proceses ‘Table 3 Process Measurements and Monitoring (Example) Subject | Measurement Pa Client Feedback Overall Stisfiction Training “Training Completed Supplier Performance Inspection Results NCRs issued NCRs by type CARs issued CARS by ype “NCR —Non conformity report, CAR Corretve Aston report 8.24 Measurement and Monitoring of Equipment and Materials Travers Energy Services Limited monitor and measure the characteristic ofits equpment and materials to verify int and other requrinem hayé Been met. Thi i cried nt at appropiate stages ofthe product realition proces per dosinented procedwes. Evidence of conformity wih the aceptnce criteria smite’, Records indicate the person) auboraing rele of equipment and materials zl Pace 1131 Alcon Road Woji Port Harcourt Rivers State |RC1237685TRAVERSE ENERGY SERVICES LIMITED Equipment and materiale release and, as applicable, delivery, do not proceed until the planned arrangements have been satisfactorily completed, unless otherwise approved by a relevant authority, and where applicable, by the client. 8.3. Control of Nonconformance "TESL has developed documented procedures to prevent the inadvertent use of personnel, equipment and/or materials which do not conform {o requirements, and to provide for proper nonconformance notification to the client, as applicable, ‘The control and related responsibilities and authorities for dealing with non-conformance's are defined in Conte of Non conformancs Records of the nature of nonconformance and/aiy BibieGuenit actions taken, including concessions obtained, are maintained, ss 84. AnalysisofData ‘TESL collects and ansyzes dns tofdeermine the silty and effcctivenes of te! QAS and to ey provements that ean be ae, This include sta generated by measuring and montoring civic, lent mryeys other ER) source. EL anaes thi st provide information + Clem safction and/or dstiston, «Conformance ct reg o> Characins of procemcs, cqupesttyg rials fisted ad ‘+ Supplier performance. 29 |Page #131 Alcon Road Woj Port Harcourt Rivers State |RC1237685TRAVERSE ENERGY SERVICES LIMITED 85. Improvement 85.1. Planning for Continual Improvement ‘TESL plane and manages the processes necessary forthe continual improvement of the QAS through periodic reviews of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive action, and management review, 852 Corrective Action ‘TESL maintains documented procedures for the analysis of nonconforming conditions, and for the Inston, implementation, and yeication Of corrective actions, Any corrective action taken to eliminate the causes of actual of potential onconformites sill be to degree appropriate to the ragnitude of problems and commensurate with the risks encountered. ESL implements and record any changes to doce proce veruking frm feito. “This defines reuiremnt for ; + denijingnonconformiies (including cent comple; + Determining the comes or noncofy: ‘= Evaluating the need for actions to ensure that nonconformities do not recur; + Determining and implementing the corrective action needed; + Recording results of action taken}, + Revewng cores esto, ‘Applying controls to ensure that corrective action is taken and that itis effective, 85.3. Preventative Action “Traverse Energy Services Limited maintains documented procedures for implementing preventative action to deal with potential non-conformances. Any preventative action taken to eliminate the causes of potential non-conformities shall be to a degree appropriate to the magnitude of problems 30] Pace #131 Alcon Read Wo Port Harcourt Rivers State |RC1237685& TRAVERSE ENERGY SERVICES LIMITED and commensurate with the risks encountered. TESL implements and records any changes to documented procedures resulting from preventative action, “This defines requirements for: enifying potential nonconformities and potential causes; Evaluating the ned for actions to ensure that hon-conformities do not occur; Determining and implementing the preventive action needed: Recording results of ation taken; and coal Bil Pace 431 Alcon Road Woll Port Harcourt Rivers State [RC1237685,