getting HSE right

Challenge Induction

S. Veerasingam HSSE Advisor

Space to deliver performanceEthicsFinance & ControlEmployeesRelationshipsHealth, Safety &EnvironmentWhat we stand forour business policies.

BPs commitment to health, safety and environmental performance (HSE)

John Browne Chief Executive OfficerHSE Policy January 1999

What is the getting HSE right Management System?A framework, a broad-based set of 91 HSE expectations integrated into 13 elements of accountability A management system are the people and integrated processes that meet expectations to deliver business performance

getting HSE rightHSE Management System Framework

Identifying and managing operational risks

Leadership &AccountabilityRisk Assessment & ManagementPeople, Training& BehaviorsWorking withContractorsand OthersFacilities Design & ConstructionOperations &MaintenanceCustomers & ProductsManagementof ChangeCommunity &StakeholderAwarenessCrisis &Emergency ManagementIncident Analysis &PreventionAssessment,Assurance &ImprovementInformation &DocumentationThe Framework is the overarching structure of GHSER

THIRTEEN ELEMENTS OF BPS HSE MANAGEMENT SYSTEM FRAMEWORK1. Leadership & Accountability2. Risk Assessment & Management3. People, Training & Behaviours4. Working with Contractors & Others5. Facilities Design & Construction6. Operations & Maintenance7. Management of Change8. Information & Documentation9. Customers & Products10. Community & Stakeholder Awareness11. Crisis & Emergency Management12. Incidents, Analysis & Prevention13. Assessment, Assurance & Improvement

Getting HSE RightWhat the Framework Provides The 13 elements are depicted under the Getting HSE Right Framework which acts as the overarching structure. The individual elements and expectations collectively combine to form the Getting HSE Right Framework.

Why is GHSER Important? Business Unit Leaders annually report to EXCO assuring the Business Units commitment to HSE Performance, HSE Expectations & Legal Compliance.

Identifies the major HSE risks to the business unit and the programs in place to minimize those risks.

Communicates strengths and weaknesses for complying with the 13 Elements and 91 Expectations setforth in GHSER, as well as key performance indicators and audit findings.

Outlines the HSE forecast and direction for following years.

Element 1 - Leadership and Accountability

Positive HSE behaviors reinforced and rewardedTwo-way communication between leaders and employees, contractors and othersIntegrated expectations into business planning with clear goals and objectivesEstablished roles and responsibilities with performance measurementsDocumented HSE management systems implemented and supportedPromotion of sharing of Lessons Learned

Element 2 - Risk Assessment and Management

Processes to identify and control hazards and manage risksHazards and risks assessed for existing and future operations and developmentsHazards and risks assessed for closures, divestments and decommissioningsRisks addressed by management with decisions documentedRisk assessments referenced in project approval documentation and are kept updated

Element 3 - People, Trainingand Behaviors

HSE sound behaviors by employees and contractorsHSE roles and responsibilities with individual performance targetsQualified, competent and physically/mentally fit personnel, a skilled and trained workforceHealth hazards identified and risks managedWellness, Alcohol and Drug programsOrientation and induction training for new or transferred employees and contractorsTrainingRecord

Competent

Element 4 - Working withContractors and Others

Evaluation, selection and retention criteria for contractors, suppliers and othersHazards and risks of contractor and procurement activities and interfaces identified and managedPerformance and deliverables defined and monitored with assurance of HSE and technical compliancePurchased products and services verified as compliant with national and international HSE standardsJoint venture and alliance partners HSE systems meet compliance, are aligned with BP and satisfy expectations and targets

Element 5 - Facilities Designand Construction

Baseline technical/environmental data collectedTechnology that balances commercial risks and financial benefits to manage impactsOperational, maintenance and HSE expertise integrated in design stageHazards and HSE risks assessed at specific project stagesDeviations from standards managed and documentedLocal regulatory requirements metQuality assurance and inspection systems assure facilities meet design and procurement specificationsDocumented pre-startup reviews

Element 6 - Operations andMaintenance

Post startup reviews conductedRegulatory requirements met or exceededIntegrity maintained by documented systems and quality assurance programsKey operating parameters established and monitored with roles and responsibilities understoodClearly defined operating proceduresDocumented inspection and testing when commissioning equipmentTesting and maintenance programs for protective systemsSimultaneous operations risks assessed and managedHSE impacts are monitored and minimizedComprehensive waste management programs in placeEstablished decommissioning, remediation and restoration plans

Element 7 - Management ofChange

HSE and other impacts formally assessed and managed, documented and approvedLegal and regulatory, codes and HSE effects tracked and appropriate changes implementedOrganizational changes assessed and managedImpacts on product quality of changes to manufacturing processes assessedScope and duration of temporary changes not exceeded without review and approval

Element 8 - Information andDocumentation

System for maintaining drawings, design data and other documentation with defined responsibilitiesRegulations, codes, standards and practices identified, documented and communicatedRecords maintained, available and retained as necessaryTechnical documentation part of design input for new facilities and modificationsEmployee health, medical and exposure records are maintained and retained

Element 9 - Customers andProducts

HSE assessments conducted for new products prior to marketing or distributionPeriodic reassessments for manufactured and re-branded products and intermediate streamsNew uses or markets for existing products evaluatedRecords maintained and retained as appropriateMaterial Safety Data Sheets (MSDS) issued and updatedSystem to collect and review reports of adverse effectsEffective recall system for defective productsSystem for 24 hour emergency response for product HSE information

Element 10 - Community andStakeholder Awareness

Open and pro-active communications with employees, contractors, regulators and publicResponse to government and community HSE expectationsHSE impacts of new business development assessed, communicated and integrated into business caseHSE impacts of any divestment or decommissioning reviewed, communicated and managedPeriodically issued externally verified statement relating to HSE performance and programs for major operations

Element 11 - Crisis and Emergency Management

Risk based emergency management plans that are documented, accessible, communicated and align with the group emergency management systemEquipment, facilities and personnel identified, tested and availableTrained personnel who understand emergency plans and their roles and responsibilitiesDrills and exercises conducted to assess and improve, including liaison with and involvement of external organizationsPeriodic updates of plans and training to incorporate lessons learned

Element 12 - Incidents Analysisand Prevention

All HSE incidents and near misses openly reported, investigated, analyzed and documentedSerious incidents are investigated immediately with participation and leadership from outsideRoot causes and preventive actions documented and closed outInformation analyzed to identify and monitor trendsLessons learned and best practices shared across company and industry

Element 13 - Assessment,Assurance and Improvement

HSE performance indicators established, communicated and understoodWorkforce involved in periodic self-assessmentsReviews of performance indicators determine management system changes neededSystem for improving HSE behaviors thru observationsDocumented risk-based audit program with documented objective and systematic auditsFindings prioritized, tracked and used for improvementsReview of management system by Business Unit leadershipPerformance data and assurance provided to CEO

HealthSafetyEnvironment Health & Safety programs are an integral part of getting HSE rightHealth & SafetyGHSER

HealthSafetyEnvironment Our EMS addresses the Epart of getting HSE right Our EMS is an integral part of getting HSE rightEMSGHSER

GHSERHSEEMSISOgetting HSE rightHealth, Safety, EnvironmentalEnvironmental Management SystemInternational Organization for Standardization

Examples of BPs Health & Safety Management Systems

Safe Work Procedures Emergency Response Plans Contractor Safety Processes Training Programs Incident Investigation & Accident Tracking Systems ASA - Advanced Safety Auditing STOP - Safety Training Observation Program CLC - Comprehensive List of Causes (Root Cause)

EMSAspects: element of BPs activities, products or services that can interact with the environmentImpacts: any change to the environment resulting from BPAmocos activities, products, or services

waste managementreleases to waterland contaminationlocal & community issuesemissions to airuse of raw materials &natural resources

EMSSome examples of aspects & impacts

Piper Alpha.Designed, built (under supervision) and operatedby Occidental Petroleum.

Revenue approx. 3.5m / day, at peak rate, 10% of UKs North Sea production.

6th July 1988 catastrophic fire and explosion.

Of 225 men on board 167 died.

Public Enquiry chaired by Lord Cullen.

Enquiry Findings.Management directly responsible for a series ofpreventable failings and errors.

Safety policies and procedures in place but thepractice was deficient.

Superficial attitude to safety.

Recommended far reaching changes in industrypractice and regulatory arrangements.

Regulatory Regime : The Safety Case.The Safety Case MUST show that :-

* the management system adequately covers all statutory requirements;

* there are proper arrangements for independent audit of the system;

* the risks of major accidents have been identified and assessed;

* measures to reduce risks to people to the lowest level reasonably practicable have been taken, and

* proper systems for emergency arrangements on evacuation, escape and rescue are in place.

All possible accidents must be considered, fires andexplosions, structural damage, loss of stability,helicopter or diving accidents etc.

The Safety Case should describe the approach topreventing accidents, mitigating the effects of anywhich do occur and providing for emergencyresponse including evacuation, escape and rescuewhere necessary.

Would getting HSE right have preventedthe Piper Alpha incident?

Other Incidents.There have been other incidents with similarroot / basic causes to those on Piper Alpha.

* Texaco : fire and explosion at Milford Haven* BP : hydrocracker incident at Grangemouth* Flixborough* Paddington?

Challenge ?No AccidentsNo Harm to PeopleNo Damage to the Environment

Everyone who works for BP, anywhere, isresponsible for getting HSE right. Good HSEperformance is critical to the success of our business.

Challenge / Issues.Location of reserves / downstream infrastructure.Access to reserves / markets.Design and technology.Operations Integrity.Management of Change.Training and Competence.Changing role and perception of hydrocarbons as fuels.

Continuous improvement in HSE performance anddelivery of our Commitments.

Designing & constructing new facilities from an HSEperspective

Establishing change methods & processesto ensure integrityis achieved

Conducting safety checks before or during workDemonstrating to &setting high standards for thosewho report to us Using contractors and theirexpertise to fulladvantageOperatingand maintaining ourfacilities & equipmentproperly

Learning and implementing lessonsfrom incidents and accidentsPreparingfor an emergency &ensuring plans are known

Using the skills & knowledge of the people weemploy

SettingTargets, Goals, & measures, to improveperformanceEstablishing Procedures, Practices,& Standards

How canwe improve?Reducingwaste, emissionsand discharge

The Role of the Management Leadership

Accountable for getting HSE right Demonstrate and lead by example Explain to team why getting HSE right is important Assist individuals to develop roles and responsibilities Ensure consistency within the business unit Share best practice and lessons learned with team Establish HSE Performance Agenda

What is your role in getting HSE right ?

Your role & responsibilities in support of:

Keep the workplace in a safe and environmentally fit condition Carry out health, safety and environmental checks before, during and after work activities Follow established standards, practices & procedures Use your skills & knowledge to help others Help us to improve BPs & Industry Peer standards Tell us where we can make HSE improvements

Whats in it for you ?

Reduce your risk of illness and injury Preserve the environment for the future Improve working conditions High and consistent standards Enhance BU performance Protect the Group Reputation Improve our liability profile Continue leadership position - Industry & World Being a part of a winning organization PROTECTEDENVIRONMENT

NO INJURIES

Injury Pyramid1101001,00010,000Injury Pyramid100,000

1111111666666222003/03/97 Refer to your booklet for a listing of the 13 Elements.

The 91 Expectations are outlined in your booklet as well.

Walk through an element and the expectations to giv ethem a flavor of what to expect. I would not do Element # 3 or # 4 as they are addressed later in the program.7777772422

The framework will help line managers focus on the critical HSE needs. What the Framework provides is outlined in the GHSER Managers Guide booklet on p 2.494949474747235555558

EXCO is the Executive Committee of the Upstream Organization.

Major HSE Risks - By addressing the Expectations you must identify, assess, evaluate your major HSE risk and then implement corrective action plans to reduce/control those risks.

The performance agenda serves as a spring board to address future needs based upon your recent HSE issues. If spills are a problem a program to specifically address spills would be implemented.

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Show all three circles how they intergrate the H, S and the E

Now cover the Environment circle to show focus on Health & Safety. 181818161616302750505048484826191010101010102518

What do we mean when we say Health & Safety Management System? Its the people, and work processes that help us meet our expecatations. Lets review two critical Health & Safety elements that help us achieve superior HSE performance.

Lets review Element 3: People, Training, Behavior and Element 4: Working with Contractors and Others2121211919193330232323212121353203/03/97282828262626403731313129292927233232323030302825333333313131292639393937373711