M a k i n g t h e U K t h e s a f e s t p l a c e t o w o r k i n t h e w o r l d w i d e o i l a n d g a s i n d u s t r y.

Leadership Team

6th June 2012

1. Fire alarm tested every Friday morning at 11 a.m.

2. Alarm is a continuous siren

3. In the event of an alarm:

• Leave the building by the nearest Exit. There are two protected exit staircases, one through the front entry door, opposite the lifts and an alternative staircase at the far end of the open plan office area. (Visitors will be escorted by their host).

• Both staircases lead down to exit doors at street level.

• Turn left out of the exit door and walk around the building to the left, into Guild Street. The Muster Point is located at the front of St. Magnus House, a few yards along Guild Street.

Always use the stairs – never the lift

Leave Personal belongings behind

Stay calm

Remain outside the building until instructed otherwise

Oil & Gas UK

St Magnus House

FIRE ACTION - THE EXCHANGE 2

2

FACILITIES - THE EXCHANGE 2

• Kitchen is located across the corridor from the meeting rooms

• Toilets are located in the lobby area, adjacent to the lifts

• There is a strict no-smoking policy in the building

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4

Step Change in Safety launched

Safety Culture expectations

Look this Way – safety observations system guidelines

Leading Performance Indicators guidelines

Support team established

The UK is the safest place to work in the worldwide oil and gas industry by 2010

www.stepchangeinsafety.net

SADIE launched

Changing Minds guidelines

Best Practice guide to Handling Tubulars

Safety Leadership training syllabus

Understanding SI971 Safety Reps guidance

ESR Network

OIM Network

Fatality Report

Focal Point Network

Vantage POB piloted

Temple Model created

Deliver a 50% improvement in industry safety performance over the next 3 years

ECI launched

Asset Integrity Toolkit

Original target of 50% improvement in industry safety performance was achieved

Design and Handling of Chemical Tanks guidance

Design and Handling of Cargo Baskets guidance

Green Hat policy

Making the UK is the safest place to work in the worldwide oil and gas industry

Step Change fully funded via membership

Hydrocarbon Release Reduction Toolkit

Strategic Plan 2010 – 2015 established

Support team directly employed

Minimum Industry Safety Training launched

SPAN Network

Workplace Health workbook

Human Factors, First Steps guidance

Green Hat policy revised

Leadership Expectations guidance

Coaching for Safety guidelines

Safety for Wireline Operations guidance

Health and Safety Management Systems Interfacing guidance

Health and Safety Management Systems Interfacing guidance revised

Understanding SI971 Safety Reps guidance updated

“Skeleton Sid”

“Silence is Consent”

“Consequences” & “Martins Story”

Leading Performance Indicators updated

Loading Lifeboats during Drills guidance

Green Armband policy

Lifting and Mechanical Handling guidance

Mechanical Joint Integrity guidance

Control of Work, Performing Authority standard

Lifting standards updated

Assurance & Verification Suite

Step Change in Safety, what you need to Know

Boots on for Safety launched

Personal Responsibility for Safety launched

Task Risk Assessment guidance updated

Best Practice guide to Manriding “Its Your Choice”

Team Leader directly employed

OIM Guidance For Offshore Rota and Rest Periods

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Hydrocarbon Release Reduction

PROCESS SAFETY UPDATE Ken Robertson / Allan Johnstone

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ASSET INTEGRITY Geoff Holmes / Steve Bullock

6

Network event, 2nd May

• Excellent effort; the format of the entire event worked really well - presentations were not very long, and the breakout sessions were useful. Venue was excellent.

• It's great to hear that the output from the discussion groups will be distributed, and that it will be used to inform specific scopes of work such as the OIR12 database review.

• The speakers were concise and informative, and the clear and relevant questions for focussed discussions worked well. The event was very well organised.

• The reduction in waffle and controlled specific items is the way forward. The issuing of the information booklet is a first class improvement.

• There were a significant lack of Operators and SCLT members at the event, which implies they are not engaged or not truly prioritising the safety of their personnel and those they are responsible for.

• Poor representation vs past track record

• I felt that the break of one hour in the morning for the exhibits was too long.

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• HCR Prevention workgroup • Good practice HCR Plan guidance, draft complete, wells and specific FPSO elements to be included

• Joined up thinking, developing engagement brand with Art Department focused on embedding, quality and value adding

• Secondee, HCR database work with HSE, root cause and OIR 12

• FPSO workgroup • Completed additional analysis, FPSOs do still contribute more when compared to manned fixed installations.

• Potential addition to HCR or AI toolkit focused on analysis assumptions

• Inclusions in good practise HCR plans

• Assurance and Verification workgroup • Tier 1 - workforce leaflet complete, in print 2000 copies, share fair and heliport drop

• Tier 2 - final editing complete, design to start immediately, target availability June 20th electronically

• Tier 3 - technical authoring complete, design 60% completed, target availability June 20th electronic only

• Technical Authorities • Stalled, needs re-energised

• Technology • Potential new workgroup looking at emerging technologies in area

Asset Integrity

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Engagement Packs

• The committee proposal is to produce 6 HCR reduction theme packs in the year – a proposed roll out pack every 2 months.

• Packs will focus on one theme and be rolled out at offshore TOFs / Safety meetings – roll out by line supervision (OIMs, PTLs / MTLs)

• Packs will include attendance & feedback sheets that can be mailed back to Step Change

• Strap line will be – Joined Up Thinking

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Engagement Packs

• Proposed Pack Sequence

1. Impact of HCR release – a min of 2 case studies (eg Buncefield, Macondo, Piper A)

2. Safe Isolation & Plant Reinstatement (incl GOC)

3. Small bore tubing & flexible hoses

4. Bolted Joint / Flange and Valve Management

5. Pipework (corrosion management, fabric maintenance, temporary repairs)

6. Reporting, Investigation & lessons learned

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WORKFORCE ENGAGEMENT Ian Sharp

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Workforce Engagement

• Practical guide • Revised document nearing completion, going to design and print June.

• Reworked to included feedback, support tools and focus on continuous improvement.

• Subsea Pilot • 4 out of 5 vessels completed in survey period, with good response rates.

• Results feedback workshop planned for June 13th.

• Original pilot group • Follow-up workshop arranged or June 12th

• Survey portal • With Atlas Knowledge, delivery expected July 2012

• Launch Event • Network event, Sept 5th

• Key note speakers confirmed... Steve Walker, Jake Malloy, Ian Sharp

• Consideration being given to Nita Clarke co-author Maclead report on workforce engagement.

• Present 4 case studies

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HUMAN FACTORS Bob Fennell / Robin Watson

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Human Factors

• New direction • Focused on second level, Human Factors – Vital Signs

• A pulse check of how effective we are managing human factors in our businesses.

• 3 sub-groups • New energy to progress in specific tool box areas – Process, Plant & Equipment, People

• Implementation • Infomercials...!

• Posters

• Presentation Packs

• Facilitated sessions

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New direction

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Tool Box

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Implementation

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HELICOPTER SAFETY Alan Chesterman / Tim Glasspool

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Agenda

• G-REDW Ditching

• Communications Issues

• Project Updates

22

G-REDW Ditching 10-5-12

• Eurocopter EC225 helicopter (reg. G-REDW) operated by Bond outbound from ABZ to Ensco102 Maersk Resilient made controlled descent 24 miles off-shore.

• Captain/Co-pilot made controlled ditching per std. operating procedures after suffering loss of gearbox oil pressure.

• Successful recovery in daylight and favourable weather conditions. 14 POB (2 crew 12 passengers) recovered safely.

• Bond temporarily suspended EC225 flights pending further investigation.

• Bristows & CHC continued to operate.

• AAIB investigation launched (in progress).

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Initial Findings / Cause of Failure & Ditching

• Low LO pressure alarm illuminated indicating failure of MGB LO system.

• Emergency lubrication (EMLUB) system activated by crew.

• EMLUB failure alarm illuminated indicating failure of EMLUB system.

• Crew followed std. ops procedure initiated emergency landing.

• Offshore required ditching; favourable weather conditions for ditching.

Initial Investigation

• Driveshaft to main gearbox (MGB) lube oil pumps failed; lost drive to pumps & MGB lube (LO) oil supply failure

• Prior to flight, Vibration Health Monitoring system (VHM) had identified a rising trend in monitoring parameters associated with MGB oil pump drive system.

• MGB contained oil and glycol; had not suffered total oil loss; EMLUB system had activated; some oil loss – blown out of MGB vents

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Actions • Actions apply to EC225: older model AS332 unaffected. • EC identified serial numbers (S/N) of MGB shafts manufactured in the same

batch of 10 as the failed shaft. None in this batch was in use.

• Population of potentially affected shafts widened: all EC225s equipped with shafts of S/N of M0370 or higher where shaft had accumulated less than 500 Flight Hours since new to increased monitoring:-

• Close monitor and reduce action thresholds for relevant VHM parameters (named MOD-45 and MOD-70)

• Before next flight over water and thereafter at intervals not exceeding 3 flight hours, download VHM data to review the relevant indicators

• AAIB report in progress

• Special HSSG meeting held 30-May to communicate incident & status

• Additional HSSG briefing notes and info on SC website

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EC225/AS332 MGB

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EC225/AS332 MGB Design Architecture

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Oil pump drive shaft

Oil pump Oil pump

Main Gearbox

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Shaft Failure point

Additional Safety Features of EC225 vs. AS332 LO Systems AS332L/L1/L2

• MGB driven Main and Standby oil pumps.

• MGB driven oil cooler

EC225

• MGB driven Main and Standby oil pumps.

• MGB driven oil cooler

• Ram air standby oil cooler system

• Emergency Glycol lubrication spraying system

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EC225LP MGB Lube Oil System

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Main and Standby Lubrication Pumps.

Standby LO cooling system using ram air to cool oil via radiators

Main LO cooling system

EC225 Emergency Lubrication System (EMLUB)

In the event of loss of MGB oil the EC225 is equipped with an emergency glycol spraying system.

Engine air pressurises a glycol container and delivers atomised glycol directly onto the gears for cooling and lubrication.

Up to 30 min capability to effect safe landing

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Communications

• Apparent increase in frequency of helicopter issues raising level of workforce concern.

• Greatly exacerbated by ditching.

• Inconsistent communication and feedback on helicopter issues / actions

• Intend to introduce communication guidelines

• Being worked by helicopter operators and industry representatives

• Target date end-June

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Other projects

• Weather data network (WDN): – Work to embed use of the WDN continues to good effect.

• Helideck lighting: – issues with fixing of lighting units being addressed to install upgraded

systems on Centrica CPC-1 and BP Miller mid 2012.

• Advanced anomaly detection (AAD): – Eurocopter: focus so far on EC225 and EC175 models. External

controlled service introduction of HUMS AAD to commence Q4 2012

– Sikorsky, believes the system already in place on S92 models already achieves AAD standards

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Other projects (contd.)

• Aviation seminar: – The annual offshore Aviation Seminar will be held on 13 June at the

AECC.

• Helicopter Safety Awareness Courses: – 3 of the day-long courses were held on 22 -24 May. More expected to

be run again in August.

• Normally Unattended Installations (NUIs) Helideck fire fighting: – project to review automatic fire fighting equipment for NUIs

completed by DNV. The findings have been communicated with operator companies, helicopter operators, HSE, HCA and CAA. Oil & Gas UK is in discussions with CAA to determine a way forward tp provide the greatest safety benefit to the workforce.

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BREAK

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MAITLAND FOLLOW-UP Theo Tucker / Robert Paterson

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WLCPF Well Life Cycle Practices Forum

June 2012

WLCPF

BOP Issues Integrity

Guidelines

Relief Well Planning

Requirements

Competency, Behaviours, & Human Factors

Well Examination

Verification

Steering Committee

Well Suspension & Abandonment

Capping devices

Main deliverables: guidelines response to government Future deliverables: keep up to date workshops Mostly aimed at engineers, non-prescriptive

WLCPF

BOP Issues Integrity

Guidelines

Relief Well Planning

Requirements

Competency, Behaviours, & Human Factors

Well Examination

Verification

Steering Committee

Well Suspension & Abandonment

Capping devices

BOP Issues Integrity

Guidelines

Relief Well Planning

Requirements

Competency, Behaviours, & Human Factors

Well Examination

Verification

Well Suspension & Abandonment

Capping devices

• Competency (pub Jan 2012)

– Guidelines on competency for wells personnel

– Example competency profiles for wells personnel

– Competencies critical to avoid well incident

– Technical, leadership, supervisory skills

• Now working on human factors case studies focussed on well life cycle

Human factors…

• Well-related case studies

• Pick out the human factors

• Other industry – what can we learn?

• Use same layout and language as SCiS booklet

• OGP to align too?

ICOE International Centre for Oil and the Environment

Les Linklater

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Recent HSE Proposals

From a Group comprising company and university associates, and

consultants

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The Proposing Group

The Group involved in these proposals comprises :-

• Bill Cairns CairnsICL Ltd

• Prof Brian Smart Heriot-Watt University and Consultant

• Greg Coleman Consultant

• Graham Scotton Consultant

• Duncan Anderson Consultant

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The Group Objectives

The Group shares the following objectives:-

• To record oil industry EHS best practice and facilitate its application and continued development, managing risks nationally and internationally

• Hence two inter-related Projects:- (see also the diagram)

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EHS/Risk Management Project Relationships

Project 1:- The EHS Best Practice Book (see supporting literature) This is what Industry is being asked to fund. • Step 1:- Hard copy version Edition 1 – this is a significant piece of

work in its own right, ongoing now.

• Step 2 :- The E-Book version – After publication, Edition 1 will be updated periodically via a feedback loop for authors provided by the portal PetroMall, from Project 2. The development of PetroMall is being funded from other sources.

• All of the Group except Graham Scotton are involved in launching this Project

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EHS/Risk Management Project Relationships

Project 2:- The HWU Petroleum Risk Management Academy with the Portal PetroMall • Step 1:- PetroMall, a networking site capable of facilitating

structured “discussions” will be launched in 2012

• Step 2:- We are also working with Heriot-Watt University and others to launch the Petroleum Risk Management Academy in September 2012

• All of the Group except Bill Cairns are involved in launching this Project

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Project Relationships

The ICOE Book “EHS Best Practice” E-Book

Hard Copy

Industry Industry Associations Governments NGO’s Academe

The PetroMall Portal

The Heriot-Watt Petroleum Risk Management

Academy (Providing Consultancy,

Research and Knowledge Transfer thro PetroMall)

PetroMall-enabled feedback loop up-

dating the EHS E-Book

Project 1, Step 1

Project 1, Step 2

Project 2, Step 2

Project 2, Step 1

Industry Funding sought for this

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Decision Point

• Does Step Change in Safety support initiative

• If supportive of initiative at what level

i. acknowledgement of work

ii. involvement with SCiS – data sharing, case studies, lateral learning etc.

iii. as (ii) but with minimal financial support

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MEMBERSHIP All

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Step Change Leadership Team Name Organisation Name Organisation

Ken Robertson Shell Crawford Anderson Baker Hughes

Martin Ellins KCA Deutag Philippe Guys Total

Geoff Holmes Talisman Pat Sibile Franks International

Steve Bullock Petrofac Rod Buchan Cosalt

Neil McCulloch BG Group Steph McNeill Subsea UK

Ian Sharp Fairfield Energy Steve Walker HSE

Bob Fennell Nexen Adrian Rose Transocean

Robin Watson WoodGroup PSN Jon Richards IADC

Alan Chesterman Apache John Taylor Unite

Eric Sirgo Chevron Jake Molloy RMT

Dave Goodwill BP David Forsyth IMCA

Martin R Pedersen Maersk Oil Eddie Perkins MSF

Alan Johnstone AMEC Ian Russell COTA

Richard Tocher ConocoPhillips Robert Paterson Oil & Gas UK

Ian Jack Schlumberger Les Linklater Step Change in Safety

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& a group of SI971 Elected Safety Representatives

Leadership

• SCLT

– Require Operator replacement for Neil McCulloch, BG Group

– Suggest TAQA

• Competence

– Propose Rod Buchan takes over as Contractor Rep from Peter Murphy

– Need Operator from current SCLT

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SUPPORT TEAM Les Linklater

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New member of Safety Reps

• Process

– 4 interested individuals came forward

– All asked to respond to 4 questions

– Questions reviewed by LL & and ESRs

– Open discussion and selection of best candidate

• New member of SCLT ESR team – Willie Watt

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Key Activities

• Manriding Guidance – Ongoing activity,

commenced in 2011. IADC SHE group working on update to guidance (10 years old)

– +ve engagement – Committed resource – Expected delivery Q3,

much of the work done, now facilitation of consensus, design and re-publication

• OIM Guidance for Offshore Rota and Rest periods – Post WTR update – Review completed by Alix

Thom OGUK and 6 x OIMs. – Decision taken to keep

under SCiS umbrella.

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Key Activities

• YouTube Channel

• Twitter, social media

– @StepChangeInfo

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Lookahead

• Planning Day

– Sept 26th

– Need to reschedule

• ESR Development Day

– Aug 21st

– Opportunity to get all 12 together, subject to getting released from their companies

– Team alignment, development focused

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Lookahead

• Network Event

– Sept 5th

– Workforce Engagement

• ESR Network Day

– Nov 28th

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SHARE FAIR Les Linklater

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Share Fair - Update

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Share Fair - Branding

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Share Fair – Room Layout

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Booth Layout

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Distribution (as of 10am 5th June)

25

68

12 11

95

ESRs

Safety Professionals

Focal Points

Site Leaders

Others

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85%

15%

Members

Non Members

SCLT Representation (as of 10am 5th June)

66

0 0 0 0 0 1 1 1 1 1 1 1 1

2 2 3 3 3

4

6 7 7

10

13

26

0

5

10

15

20

25

30

A B C D E F G H I J K L M N O P Q R S T U V W X Y

Jan Feb March April May June July August Sep Oct Nov Dec

Leadership Team

Planning Day

Workforce Engagement

Human Factors

Competence

Helicopter Safety

Asset Integrity

Network Meeting

HCR Seminar

Industry Leaderhsip Safety Day

Safety Awards

Network Event (Hydrocarbon

Releases)

Share Fair

Network Event (Workforce

Engagement)

Network Event (ESRs)

2012 Calendar

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25 7 25 6 22 31 12

18 2 20 5 28

26

28 22 28 30

19

26

16 19 13 30 16

1 30 5

16

28 10 23 11 22 05 6

22 24 26 29 27

20

11 29 13 29 10 30 10

28

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M a k i n g t h e U K t h e s a f e s t p l a c e t o w o r k i n t h e w o r l d w i d e o i l a n d g a s i n d u s t r y. 68