12 Contractor HSE Management

2011 Chevron U.S.A. Inc. All rights reserved .

Overview and Introduction to the Chevron CHESM Process

Philip Gallaway Chevron Energy Technology Company Seismic Acquisition Services Team IAGC / OGP HSE & Security Forum CGGVeritas Offices, Massy, France 27-28 September, 2011


What is CHESM?

CHESM Contractor Health, Environment and Safety Management It is a standardized Chevron Operational Excellence process which

Establishes expectation that contractors working across all SBUs are evaluated and managed by the same process.

Applies to all contractors regardless of work location, scope of work, project duration, total cost or contractor experience.

The process is used to qualify contractors by establishing minimum HES requirements each contractor should meet to work at Chevron.

Process to ensure that Contract Companies have safety processes in place before work begins for Chevron.

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CHESM Implementation Objectives

Promote Injury & Incident Free expectation / culture among contractor workforce.

Clarify Chevron HES expectations. Build teamwork between Chevron and contractors. Support HES capacity building (local content development). Ensure contractor HES capability and performance is properly

documented.

Ensure alignment with Chevron OE processes being implemented Worldwide.


Scope of CHESM

This process will be applied before any new contracts are issued or existing contracts renewed.

This process will be used to develop Bid List and/or award Projects.

Applies for the term of the contract.

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CHESM Process Key Elements

World class contractor safety begins with: Leadership Roles & Accountability

Active Contractor Engagement

By establishing a 5-stage process that include: 1. Business Planning

2. Contractor Qualification and Selection

3. Pre-Job Reviews (Site visits, pre-mob planning, mitigation plans, kick off meetings, site audits, training, etc.)

4. Work in Progress (Interim reviews and field inspections)

5. End of Contract Evaluation


CHESM Process Key Requirements

A set of key performance indicator targets shall be established for each contract.

Chevron shall identify potential HES risks associated with contracting needs.

All selected contractors shall be pre-qualified using the standard procedure.

Pre-job activities shall be held for each contract before start of work.

Interim contractor performance reviews shall be conducted at least once a year.

End of contract performance evaluations shall be completed for every contract at the end of the contract period.

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CHESM 5-Step Process

Business Planning Qualification Selection Pre-Job Review Work In Progress End-Of-Contract Evaluation

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Business Planning

Purpose: Provide early detection of HES risks. Ensure that a mitigation plan is in place to address the

risks.

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Qualification and Selection

Contractor HES Qualification Key Elements are: Initial Communication of HES expectations Collect and Update data Evaluate Contractors Qualification Questionnaire Assign HES Rating to a Contractor Data Management and Feedback

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Qualification and Selection CHESM Contractor Rating and Selection Requirements

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Rating Selection Requirements

A Unrestricted use.

B Unrestricted use. Check a higher-rated supplier.

C Pre-job meeting; mitigation plan required

D Pre-job meeting; mitigation plan documented in database; management approval from BU General Manager of Operations (or designee) in writing; trained HES personnel on-site during work.

F Cannot be used without BU General Director (or designee) approval. All requirements for a D rated contractor apply.

ND * Contractor has not completed the annual Contractor HES Evaluation Questionnaire update. Do not hire until this deficiency is rectified.


Pre-Job Review

The HES Management Pre-Job Review procedure ensures that contractors have the necessary procedures, risk identification and mitigation plans in place before work starts, in order to do the work safely.

The pre-job review consists of the following elements: Pre-job meeting

Project/Job safety plan

Pre-mobilization review

New contractor orientation program

Site-specific orientation

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CHESM Work-In-Progress Procedure

Work-In-Progress Procedure Includes: Interim Performance Review Field Inspection Management Field Visits Joint Safety Meetings Tailgate/Toolbox Meeting Contractor Forum Contractor Improvement Teams Related OE Processes

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End-Of-Contract Evaluation

The purpose of the end-of-contract evaluation is to: Formally review the health, environment and

safety (HES) performance of a contractor at the completion of the contract

Capture lessons learned and best practices for improving HES performance of future work and future contractor selection

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Application to Chevron Seismic Acquisition Programs

All seismic operations are considered high-risk and the CHESM process applies

How are we implementing this on seismic crews: Pre-job field visits to review ongoing operations

In-depth review of HES plans, work processes, programs

Pre-mob planning phase to insure that all HES requirements are in line with Chevron standards

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Application to Chevron Seismic Acquisition Programs (cont)

Challenges with the CHESM process: Applied in various ways across Chevron BUs

Currently does not contain seismic HSE or operational reviews

Adapted by the seismic acquisition team

Non-standard contractor management processes are not easily identified

Joint ventures

Subcontractor relationships

Crew to crew variations

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Questions?

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Overview and Introduction to the Chevron CHESM ProcessWhat is CHESM?CHESM Implementation ObjectivesScope of CHESMCHESM Process Key ElementsCHESM Process Key RequirementsCHESM 5-Step ProcessBusiness PlanningQualification and SelectionQualification and SelectionCHESM Contractor Rating and Selection RequirementsPre-Job ReviewCHESM Work-In-Progress ProcedureEnd-Of-Contract EvaluationApplication to Chevron Seismic Acquisition ProgramsApplication to Chevron Seismic Acquisition Programs (cont)Questions?

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12 Contractor HSE Management