HSE MS Audit 2001 M1 10282020 SIEP EPHSE

? ? HSE MS Audit ? ? ? 2001 M-1 10/28/2020 SIEP EP-HSE

Agenda l l l M-2 10/28/2020 Team introduction Background Terms of Reference for the Audit methodology Reporting Schedule

Team Members ? ? M-3 10/28/2020 SIEP EP-HSE (Audit Leader)

Group HSE Policy Every Shell company: l has a systematic approach to HSE management, designed to ensure compliance with the law and to achieve continuous performance improvement; l sets targets for improvement and measures, appraises and reports on performance; l requires contractors to manage HSE in line with this policy; l requires joint ventures under its operational control to apply this policy, and uses its influence to promote it in its other ventures; l includes HSE performance in the appraisal of all staff and rewards accordingly. M-4 10/28/2020

HSE Performance “There must always be a gap between … aspirations and performance … But a gap between policy and performance is unacceptable” Phil Watts - Shell EP HSE Conference 22 September 1997 M-5 10/28/2020

· · Terms of Reference Objective To appraise the quality and completeness of the HSE MS in ? ? and the adequacy and effectiveness of its implementation Scope HSE MS implementation activities for all ? ? Bus, and their contractors. Special attention will be given to: • Adherence to Group and Company HSE policies • Adherence to Group Minimum Environmental Expectations • Processes for the identification of HSE-related legislative requirements, their dissemination, and for confirming adherence to them M-6 10/28/2020

Scope continued • • Audit scope Identification of roles, responsibilities and competency requirements for HSE critical activities Implementation of HSE training programmes to close competency gaps for those carrying out of HSE critical activities Effectiveness in HSE data and document management and HSE performance monitoring Availability and effectiveness procedures for the identification, assessment and control of all significant hazards and effects including the demonstration of ALARP Adequacy of emergency response and contingency plans Confirmation that findings from audits, inspections and incident investigations have been satisfactorily addressed Adequacy of the process for preparation and validation of the HSE Annual Letter submitted to the Ex. Com M-7 10/28/2020

Standards The Audit will be conducted against the following standards: · Laws and regulations of ? ? · ? ? policies and procedures · EP 95 -0000 The Audit may also include comments on any shortfall in the above in relation to generally accepted Shell and industry standards Audit will be conducted in accordance with methodology in EP 95 0130 (December 1999) M-8 10/28/2020

HEMP Leadership and Commitment Policy and Strategic Objectives Organisation, Responsibilities Resources, Standards & Doc. Hazard and Effects Management Planning & Procedures Implementation ASSESS IDENTIFY HEMP CONTROL RECOVER Hazard and Effects Management Process M-9 10/28/2020 Audit Management Review Corrective Action Monitoring Corrective Action & Improvement HSE Management System

SIEP-led Audit Focus Harm to people and damage to assets or environment Events and Circumstances BARRIERS H A Z A R D Undesirable event with potential for harm or damage C O N S E Q U E N C ES Engineering activities 13 2 verification sample whether Sample whether that structured these risks controls risk have assessment are been adequately appropriately has been Maintenance activities Operations activities applied assessed implemented to the andand key the (HSE) complied correct risk controls with elements have ofbeen the facility or activity identified

Classification of Findings Each Finding is categorised as follows: 1. Category: Ÿ People (P); Assets (A); Environment (E); or Reputation (R) 2. Severity level (from Weakness Classification Matrix): Ÿ Serious (S); High (H); Medium (M); or Low (L) 3. Each Finding is assigned to one HSE MS element 4. A Finding is accompanied by the Significance and one or more recommendations to address the gap M-12 10/28/2020

Weakness Classification Matrix People Assets Environment Reputation No injury No damage No effect No impact 1 Slight injury Slight damage Slight effect Slight impact 2 Minor injury Minor damage Minor effect Minor impact 3 Major injury Local damage Localised effect Considerable impact 4 Single fatality Major damage Major effect National impact 5 Multiple fatalities Extensive damage Massive effect International impact Severity 0 123 A B Never heard of in EP industry Has occurred in EP industry C D Happens Has occurred in several times a the audited OU year in the audited OU E Happens several times a year in the audited facility Low Medium High Serious: Exposes OU to a major extent in terms of achievement of corporate HSE objectives or results. High: Though not serious, essential to be brought to Management attention. Includes medium weaknesses as repeat from previous reports. Medium: Could result in perceptible and undesirable effect on achievement of HSE objectives. Low: No major HSE impact at process level, correction will assure greater effectiveness/efficiency in process concerned. M-13 10/28/2020

Audit Assessment Good Level of concern: Specific No follow-up required by auditee’s function head (IAC member) Fair M-14 10/28/2020 Level of concern: Overall scope for enhancement In addition to following up correction of any High or Medium weaknesses the function head should encourage general improvement in controls awareness

Audit Assessment Level of concern: Overall cause for concern In addition to following up correction of any Serious, High or Medium weaknesses the function head should take affirmative action to ensure that control standards in this area are raised Level of concern: Unacceptable Overall cause for grave concern In addition to following up correction of any Serious, High or Medium weaknesses the function head should satisfy the senior management team concerning affirmative action to raise control standards in this area Unsatisfactory Poor M-15 10/28/2020

Revised Audit Opinion S Key: F = few <20 My = many >40 Findings Most Favourable Opinion H M H+M Unacc. Unsat. Fair Good / Poor 0 0 1 -2 0 >2 M-16 10/28/2020 0 0 F F My - 0/F My F F/My My -

HSE MS Self Assessment Questionnaire M-17 10/28/2020

HSE-MS Sub Element Assessment 4 System sustained and supported by an ongoing improvement process and essentially all elements satisfied. 3 System functioning and being verified, results being measured, key system procedures documented. 2 System is documented, approved, resourced and being implemented with priority objectives satisfied and the majority of objectives being met. 1 System is under development and partially implemented. M-18 10/28/2020

EP-HSE Audit Method Audit of HSE MS, fully covering H, S and E l Sampling Process l Questionnaire based l M-19 10/28/2020

Structure of Questionnaires Generic Questionnaire (common to all HSE Audits) Leadership & Commitment Policy & Strategic Objectives Organisation, Responsibilities, Resources, Contractor Management. Communications, HSE-MS Documentation, Standards & Change Control Hazards and Effects Management Planning & Procedures Implementation & Monitoring Audit Management Review Subsidiary Questionnaire Facilities Start-Up Seismic Drilling Subsidiary Questionnaire Environment Health M-20 10/28/2020

EP-HSE Audit Method Audit of HSE MS, fully covering H, S and l Sampling Process l Questionnaire based l Focus on Risk l OU Staff involved l Based on OU / Contractor standards l Bottom up Approach l Significance & breadth of findings l Assessment of the 33 HSE MS sub elements of the HSE MS Self Assessment Questionnaire (levels 1 -4) l Follow up: OU responsibility l M-21 10/28/2020

Audit Process Familiarisation • Terms of reference • Audit programme • EP 95 -0130 Review & Testing Study Documentation Site visit Interviews Test findings Reporting Drafting M-22 10/28/2020 Editing Report Finalisation Agree findings Present Findings

HSE Audit Overview l Auditors will: Ÿoperate in pairs (sometimes three) Ÿmake an appointment to see you § no surprise visits Ÿtry to make it as easy as possible Ÿbe only interested in facts, not speculation (interested in your view in how to improve) Ÿpossibly use a questionnaire in the interview Ÿask open ended questions § like “How. . ”, “In what way…” Ÿinterview a “vertical slice” of the organization Ÿlook for the good as well as the less than adequate M-23 10/28/2020

Audit Schedule M-26 10/28/2020

End Opening Briefing M-27 10/28/2020