Achieving World-Class Safety Performance in a Multi-Cultural Environment

Presented by: Dapo Oguntoyinbo Corporate HSE Manager Petroleum Development Oman
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Contents

Safety (HSE) Challenges in PDO Generic Causes of Incidents Four Pillars of World-Class Safety Performance
HSE Leadership HSE Management System Workforce Engagement Accountability for HSE

Challenges ahead

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HSE Challenges in PDO

4,000 PDO Staff & 16,000 Contractor workforce (60mln mhrs) 90% of PDO/Contractor workforce live/work in the interior Multi-Cultural/Language workforce, varying literacy levels PDO has over 100 oil/gas fields, 2,500+ wells drilled to date PDO & Contractors drive 120 Million Km per year on business Approximately 12,750 drivers, 7,000 vehicles Maintain over 6,000Km graded roads, 500Km black-top/asphalt In 1999, PDO achieved its best Safety performance to date:
70 days &10 million hours worked without an LTI No Fatality LTIF of 0.37 per million hours worked
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PDO & Contractors drive 120 Million Km per year average; i.e. travel round the world 3,000 times a year (8 times round the world every day !!!)

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PDO & Contractors HSE Performance 1986 - 2002

5

Lost Time Injuries Frequency

4 3.61 3

2.14 1.63 1.62

1.74 1.19

1.42

0.73 1.21 0.94 0.70 95 0.60 96 0.75 97 0.79 0.37 98 99 2000 2001 2002

0 86 87 88 89 90 91 92 93 94

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Historical Trend in Safety

Injuries

Engineering Systems: Hardware issues to engineer out hazards

Management Systems: Focus on People: develop procedures, empowerment and etc. to control hazards conviction to work SAFELY

Time

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The Causes of Injuries

Fatalities Lost Time Injuries Medical Treatment First-aid Cases

Unsafe acts & Unsafe conditions 96% / 4 %

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Generic Underlying Causes of Incidents

Lack of Effective Supervision (competence) Inadequate Hazard Awareness (competence) Not Following Basic Rules (compliance)

This has led to: Compliance, Competence, Supervision and Road Safety being key themes for annual HSE Plans
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The Incident Triangle

One fatality---------------------100 Lost Time Incidents---

1000 Non LTIs----------10,000 Near Misses--100,000 Unsafe Acts-

Over 96% of Incidents are caused by People

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What is PDO doing to achieve world-class HSE Performance?

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Leadership and Commitment

Development and Implementation of HSE Management System

World Class Safety Performance

Workforce Engagement Winning Hearts and Minds

Achieving world-class Safety Performance via Focus on People

Accountability for Safety Consequence Management

Leadership & Commitment

Safety (HSE) is Priority Number One Visibility: participation in Joint Management HSE Inspections Involvement: HSE on meeting agenda, ELT sessions Target setting: T&T, staff appraisal to include HSE aspects Improving HSE Culture: walking the talk, empowerment Participation in Incident Investigation & Review MD Incident Review, with Contractor CEO, for High Potential Incidents & Poor Performing Contractors Annual CEO HSE Conference Site Management support for HSE Initiatives/Circles Use HSE Positions to develop high calibre staff
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Joint Management HSE Inspections

Demonstrating HSE Leadership Highlights of 2002 Performance

Participation by 22 CEOs and 10 PDO Directors

27 Joint Mgt HSE Inspections: Actual vs Planned 90% Inspections were well received by PDO and Contractor staff Presented opportunity for cross learning across organisations.

Focus for 2003 and beyond Continue Joint Management HSE Inspections Forum to share feedback from Inspections
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Feedback to CEOs

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HSE Management System: what is its Objective ?

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HSE Management System

Objectives: Manage hazards & effects to H,S & E in a structured way Set performance standards for managing HSE Continuous improvement via monitoring, reviews and audits Improving workforce understanding of HSE-MS: Link Hazard Management to Activity Understanding What it means to Me Define Requirements for 3 levels of workforce (i.e. Manager, Supervisor and Staff) Develop Module for Self-Assessment
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PDO HSE Management System

Leadership and Commitment
Policy and Strategic Objectives Organisation, Responsibilities Standards, Procedures and Document Control

Hazards and Effects

Management Process Corrective Planning Action

Implementation

Monitoring

Audit

Management Review

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Challenges of Workforce Engagement in a MultiCultural Environment

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Safety Propulsion Projects

in PDO since 2001

Road Safety: Drive-to-Survive

Competency of HSE Advisors

Enhanced Site Supervision (ESS)

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Workforce Engagement

ESS workshops to improve hazard awareness & supervision Working Safely for the workforce at shop-floor level Use of Pictorial Prompt Cards (effective communication) Safety Circles/Fora (e.g. No-LTI Clubs, ESS Champions, etc) Performance Review & Dissemination of Lessons Enhanced use of STOP HSE Advisers Competency Programme Contract Holdership Certification Scheme HSE Skills Portfolio for HSE and Key Line Staff (PDO)

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ESS Workshops & Coaching

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Q1

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Q2

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2003

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PDO & Contractors: Road Safety Performance

RTAs/million kms RTAs/million kmsMillion Road Traffic Accidents per Km driven

Reduction:
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

DDC

19 87

19 89

19 91

19 93

19 95

19 97

19 99

20 01

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20 03

PDO & Contractors: Road Safety Performance

Rollover/million kms Rollovers per Million Kmkms driven: Rollover/million Reduction 0.8 0.6 0.4 0.2 0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Speed-limiters

DDC

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Target-Zero: No Injuries
HSE Management Triangle
No Injury

The Incident Triangle

One Fatality 100 LTIs

Improved HSE Culture (Proactive): No LTI Club Strong Site HSE Awareness and Supervision via ESS, WS, STOP, etc. Site Management HSE Leadership, e.g. via Support for ESS, HSE Advisers Networking, etc.

1,000 Non-LTIs

10,000 Near Misses

Positive HSE Climate created by top Management (HSE is Priority No. 1)

LEGEND:

100,000 Unsafe Acts

A = Levels covered by HSE Leadership, e.g. Joint Mgt HSE Insp., Site Management Support B = Levels covered by ESS, Working Safely Workshops, Safety Circles/Forum

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Target Zero in PDO

LTIF versus Fatality frequency over the years
1.6

LTI frequency (LTI/million hrs)

92 1.4 93 1.2 1.0 0.8 02 0.6 0.4 0.2 94 00 97 95 96 01 03 (YTD) 98

2003-Target
99

Zero 0.00.00

0.05

0.10

0.15

0.20

Fatality frequency (Fatalities per million hrs)

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Accountability for HSE the next step

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HSE Management System

Hazard/ Risk
Barriers or Controls

WORK

Accident

Violation

Error

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DISASTER

Accountability for HSE Main Thrusts

Aim to protect health and safety of workers. Staff are to be held accountable for actions that can lead to high potential incident or fatality based on past experience. Deliberately breaking rules is worse than breaking rules out of ignorance Same Framework for PDO and Contractors, via Industry Forum (OPAL) and Govt. In certain cases management discretion will be exercised following incident investigation.

A full investigation must be completed, and proven case of deliberate misconduct made before application of rules
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Accountability for HSE: Risk Matrix

Probability of it happening again
Consequence of worst known case - PDO
P
People
Severity Rating (Injury)

(If Nothing is done to prevent it)

Very Low Low Medium High Very High

A R
Never Heard of in (EP) Industry

B
Heard of in (EP) Industry

C
Incident has occured in PDO

D
Happens >5 times per year in PDO

E
Happens >5 times per year in Area/Asset

A
Assets
(Damage/Loss)

E
Environment
(Total Effect)

Reputation
(Impact)

0 1 2 3 4 5

No Injury Slight (eg. FAC) Minor (RWC, MTC) Major (LTI, PPD)

No Damage Slight (<US$1k) Minor (US$ 1-10k) Considerable (US$ 10-100k)

No Effect

No Impact

NEAR MISS LOW MEDIUM

1 9 6 11 5 2 8 10 7

Slight Effect

Slight Impact

Minor Effect Localised Effect Major Effect

Limited Impact Considerable Impact National Impact International Impact

1-3 Major (Fatality, PTD) (US$ 100k-1M) Multiple (Fatality, PTD) Extensive (>US$ 1M)

Massive Effect

List of HSE issues addressed and their risk rating

1234567891011Competence - Failure to attend Mandatory HSE Courses; 3D Compliance - Failure to follow mandatory HSE Procedures;4E Interfering with the Integrity of Safety Devices; 4C Driving under the influence of Alcohol; 5C Not using seat belts; 4D Driving without PDO license; 4C Using GSM whilst driving; 2E Not obeying applicable speed limits; 4E Driving a vehicle without a valid RAS sticker; 4C Failure to apply safe journey management plans; 4E Failure to follow night driving policy; 4D 6th ASSE-ME Conference

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Accountability for HSE Framework

Accountable party
PDO RISK AREAS COMPETENCE 1 Failure to attend mandatory HSE courses COMPLIANCE 2 Failure to follow mandatory HSE procedures as proven after incident investigation. ROAD SAFETY (while on company business) Interfering with the integrity of safety devices e.g. tampering with speed limitors and safety belts Driving under influence of alcohol as proven by investigation. Not using seat belts Driving without a valid licence Using GSM (including Hands free) while driving Not obeying applicable speed limits Driving a vehicle that is not road-worthy e.g. no RAS certificate Failure to apply Safe Journey Management Plans Failure to follow "Night Driving" Policy
Line Manager CEO Verbal Warning Re-assign Dismiss staff Line Manager Contract Manager Verbal Warning Counsel Staff and Supervisor Management Discretion

Recommended Actions
Level 1
First Offence (Recorded)

CONTR.

Level 2
Second Offence (Apply Sanctions)

Level 3
Third Offence (Grave Violation)

3 4 5 6 7 8 9 10 11

MDC

CEO

Management Discretion Management Discretion Verbal Warning

Dismiss staff Dismiss staff Suspend from Driving on Company Business Suspend from Driving on Company Business Suspend from Driving on Company Business Suspend from Driving on Company Business Suspend from Company Business Withdraw PDO driving permit Withdraw PDO driving permit Dismiss Staff

MDC

CEO

MDC

CEO

MDC

CEO

Verbal Warning

Dismiss Staff Management Discretion Management Discretion

Line Manager Line Manager Line Manager Line Manager Line Manager

CEO

Verbal Warning

CEO

Verbal Warning

CEO

Verbal Warning

Management Discretion Dismiss Staff Dismiss staff

CEO

Verbal Warning

CEO

Verbal Warning

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Q3

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Challenges Ahead

In a multi-cultural environment, Accountability for HSE may be perceived negatively (blame culture) Framework presented and accepted by Industry Forum, OPAL. Industry Forum engagement ongoing with Government to obtain support for Accountability for HSE Framework Implementation ONLY after effective Workforce Engagement Roll out to concentrate on positive aspects of the scheme Workforce HSE Culture can be significant consideration Goal: Convince and Empower the workforce to work SAFELY

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If you were in this boat, what would you do ?

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