SYRIA Contract HSE Risk Assessment April 2008 SYRIA

SYRIA Contract HSE Risk Assessment April 2008 -

SYRIA Objectives of this workshop • To understand the risk assessment process and risk assessment matrix • To practice application of the risk assessment process • To categorize the HSE risk of • selected key contracts -

SYRIA Why do a contract risk assessment? Implementation of Contractor HSE Management standard • AFPC management decision to implement new standard by end 2008 • Structured process covering pre and post award • Step 1 – assess the risk of each contract Goal Zero – 5 must win improvement areas • Leadership • Land transport • Process safety • Worksite hazards • Contractor HSE management Prioritization of activities and resources • Management team focus • Contract holder capability • Contractor HSE plans and supervision -

SYRIA Application of the risk assessment Contract Holder competency • HSE competence requirements depend on contract HSE risk • Competence gap analysis, plan to close gaps Contract HSE clauses • Appropriate clauses depend on contract HSE risk • Contract Holder will select relevant clauses from matrix Selection of contractors • More capable contractors required to manage higher risks • Impact on bid lists, prequalification and evaluation criteria HSE plans • More controls required to manage higher risks • Contract Holder will apply relevant HSE plan template from procedure -

Typical Examples of Jobs By Risks SYRIA High Risk Road Transport Working At Heights Confined Space Work Catering in Camps -

Typical Examples of Jobs By Risks SYRIA Medium Risks Office Maintenance Vehicle Maintenance Security Car Rentals Electrical Maintenance -

Typical Examples of Jobs By Risks SYRIA Office Cleaning Low Risks General IT Services Admin Support Pantry Activities -

SYRIA Risk assessment process 1) Identify the hazards associated with activities in the contract work scope 2) Assess the HSE risk of each hazard using the Risk Assessment Matrix • Estimate the severity of potential consequences • Estimate the likelihood of these same consequences • Assess the risk rating 3) Categorize the contract HSE risk corresponding to the highest risk inherent in the contract scope -

SYRIA Risk Assessment Matrix -

SYRIA What is the Contract Mode? MODE 1 CONTRACT • Contractor provides people and tools for the execution of work under the supervision, instructions and HSE MS of Company. • The contractor has a MS to provide assurance that its personnel are qualified and healthy and that its tools and machinery are properly maintained and suitable for the job. Small maintenance company working on project owned equipment at a Company location. - MODE 2 CONTRACT MODE 3 CONTRACT • Not “Work Related Activities”. • The contractor executes all aspects of the job under its own • Contractor operates within its HSE MS that interfaces with the own HSE MS that has no Company HSE MS and provides interfaces with Company the necessary instructions and supervision and verifies the • HSE performance data is not proper functioning of its HSE MS. reported to Company. • Company is responsible for verifying the overall effectiveness of the HSE management controls put in place by the contractor. Drilling rig, well services, completion or sub sea intervention contract, EPC contract. Off site manufacture or fabrication of major standard components, design office work.

Assessing the Contractor Capability SYRIA Contract Clauses High HSE Risk Contract HSE Risk Mode 1 Mode 2 Mode 3 Hazard & Environment Register HSE Capability Questionnaire Contractor Capability Assessment To mange HSE Risks On site Audit (if required) Mode 1 Medium HSE Risk Mode 2 Mode 3 Other HSE Risk Assessments Mode 1 Low HSE Risks Shell Yellow Guide - Mode 2 Historical Performance Shall be Evaluated & Deemed Acceptable Mode 3 • Activity • HSE Risks • Contract mode Past HSE Performance No Assessment Required

SYRIA Recording the results -