Petroleum Development Oman Xxxxxx Audit Title HSE MS

Petroleum Development Oman Xxxxxx (Audit Title) HSE MS Audit Xxxxxx (Period) 1 20/10/2004

Agenda Audit team l Terms of reference l Methodology l Schedule l Audit opinion l Classification of findings l Positives – Negatives l Review of 8 HSE MS elements l Audit follow-up l 2 20/10/2004

Team Members Ÿ xxxxxxxxxxxxxx 3 20/10/2004

Terms of Reference 1 Objective: The objective of the audit is to assess the effectiveness of the HSE Management System and Operational Controls in the xxxxxxxxx. 4 20/10/2004

Terms of Reference 2 (SCOPE) Special attention will be given to: • • Adherence to PDO HSE policies The process used for preparation and validation of the HSE Assurance Statements as part of the Annual Assurance Process Adherence to PDO Minimum Environmental Standards Processes for the identification of HSE-related legislative requirements, their dissemination, and for confirming adherence to them Completeness of the identification of HSE critical activities, roles, responsibilities and competency requirements associated with HSE critical activities Implementation of HSE training program’s to close competency gaps for those carrying out of HSE critical activities Availability and effectiveness of required procedures for the identification and control of all significant hazards and effects including the demonstration of ALARP Responsibilities, accountabilities and effectiveness of individual HSE tasks and targets and their contribution to continuous performance improvement 5 20/10/2004

Terms of Reference 3 (SCOPE CONT’D) • Effectiveness in HSE data management and HSE performance monitoring • Effectiveness of HSE documentation and the processes for its dissemination • Effectiveness of controls with respect to safeguarding of asset integrity • Effectiveness of change control procedures • Requirements for contractors to have an implemented HSE policy and MS • Completeness of HSE Cases • Adequacy of emergency response procedures and contingency plans • Confirmation that findings from audits, inspections and incident investigations have been satisfactorily addressed, and closed out in an auditable process • Identification of significant gaps in the implementation of the HSE MS which have not been recognised, or for which no prioritised and resourced remediation plan is in place. • Adequacy and monitoring of the Electrical Infrastructure HSE Plan 6 20/10/2004

Standards The Audit was conducted against the following standards (in order of priority): · · · Oman laws and regulations PDO HSE policy PDO HSE-MS as documented in the HSE Code of Practice Manual CP-122 PDO standards and procedures Group and SIEP HSE policies, commitments & guidelines such as EP 95 000 The audit was conducted in accordance with methodology in EP 95 0130 (December 1999) 7 20/10/2004

Areas Visited Facilities Maintenance, Operations and Construction activity taking place in xxxxx In particular: l xxxxxxxxx 8 20/10/2004

Audit Process Familiarisation • Terms of reference • Audit programme • EP 95 -0130 Review & Testing Study Documentation Site visit Interviews Test findings Reporting Drafting 9 20/10/2004 Editing Report Finalisation TODAY! Agree findings Present Findings

Objectivity l Balanced Team (Yes? Contractor!) xxxx, l Independence Yes, one team member involved from audited operation l Defined Process EP 95 000 l Standard Approach 8 HSE-MS elements Base questionnaires Standard evaluation sheets 10 20/10/2004

Audit Assessment Good Level of concern: Specific Fair Level of concern: Overall scope for enhancement Poor Level of concern: Overall cause for concern Unacceptable Level of concern: Overall cause for grave concern 11 20/10/2004

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: 12 20/10/2004 No major HSE impact at process level, correction will assure greater effectiveness/efficiency in process concerned.

Audit Opinion l Serious: 0 l High: 2 (Reporting) 16 l Medium: l Low: Total: 9 27 Overall Audit Opinion: XXXX 13 20/10/2004

Audit Opinion Key: F = few <20 Findings S H 0 0 1 -2 0 >2 0 0 F F My - 14 20/10/2004 M H+M 0/F My F F/My My - My = many >40 Most Favourable Opinion Unacc. Poor Fair Good

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. 15 20/10/2004

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. 16 20/10/2004

Findings Classification 17 20/10/2004

Positive Findings l System Integrity is being maintained at high level. l Additional power requirements are being met in a timely manner l Role of CFDH is being discharged well. (Authorisation of Staff, Issue of Standards and Proceedures, Technical Support to Assets 18 20/10/2004

Areas of Concern l XXXXXXX 19 20/10/2004

1: Leadership and Commitment Positive l XXXXXX Area’s for improvement l XXXXXX 20 20/10/2004

2: Policy & Strategic Objectives Positive l XXXXXX Area’s for improvement l XXXXXX 21 20/10/2004

3: Organisation, Responsibilities, Resources, Standards and Documents Positive l l XXXXXXX Area’s for improvement l l l XXXXXXX XXXXXXX 22 20/10/2004

4: HEMP Positive l XXXXXXX l Area’s for improvement l l l XXXXXXX XXXXXXX 23 20/10/2004

5: Planning and Procedures Positive l l XXXXXXX Area’s for improvement l XXXXXXX 24 20/10/2004

6: Implementation & Monitoring Positive l l XXXXXXX Area’s for improvement l l XXXXXXX 25 20/10/2004

7: Audit Positive l XXXXXXX l Area’s for improvement l l XXXXXXX 26 20/10/2004

8: Management Review Positive l XXXXXXX Area’s for improvement l XXXXXXX 27 20/10/2004

Audit Follow-Up l Review findings and recommendations l Identify action parties l Agree and prioritise actions, set XXX l Resource actions l Develop implementation schedule l Set-up reporting and review programme l Monitor follow-up progress to close out XXX responsibility ! 28 20/10/2004

The End of the Close Out Presentation 29 20/10/2004