Safety Leadership & Collaboration

in the Queensland Natural Gas E&P Industry

Stephen Pearson, GLNG Manager Health,

Safety and Security, Santos

The CSG Industry

To Date • 4 x CSG-LNG Operators • 3 x LNG facilities – 6 trains • 3 x 400+km transmission pipelines • ~4,000 CSG wells drilled • ~ 5,000 staff • 100s common contractors • 1000s landholder agreements • >300 MMhrs to date • >250 million km driven

30 Year Field Development • >20,000 wells (~10% to date) • 1000s km distribution lines (gas &

water) • 10+ main compression hubs • 10+ water treatment plants • 100s water collection ponds • 100s km roads construction

Together we are developing a new industry

50

0km

Why should we collaborate?

Common: • Geography • Communities • Regulators • Media • Contractors • Councils • Hazards

We work together already

Why should it be leader led?

Our leaders know we can do better

Why should it be leader led?

0.7

3.6

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14

ILG HPIFR

ILG TRIFR

Exposure hours

Exposure hours (pcm) TRIFR/HPIFR

OGP 2013 Top Quartile <1.0

Our Safety Performance is Plateauing

Operator collaboration

• Majority of exposure hours and incidents from Contractors • Contractors want to be part of the solution • Safety Practitioners tend to focus on technical aspects • Industry Leaders must develop and own solutions

How will we collaborate?

Current state to the new state

‘SaferTogether’

Building the Safer Together Forum

• Operators and Contractor - common safety vision

• Community of senior in-country leaders - acceptance of safety responsibility

• Not-for-profit, member led organisation

• Fee based to provide sustainable budget & resources

• Formal Working Groups - focus on key areas

• Long term focus on the industry development

• To date – over 70 companies have signed up

Current Membership

Member Companies

1. AMEC Foster Wheeler 2. ALS Global 3. APLNG 4. APPEA 5. Arrow Energy 6. Aurecon 7. AWT International 8. Bardrill 9. Bechtel 10. CD Power 11. Clein Excavations 12. Clough 13. CMC 14. Cohavern 15. Comet Ridge 16. ConocoPhillips 17. Decmil 18. Drillsearch 19. Easternwell 20. Enerflex 21. Enermech 22. Energy Drilling Australia 23. Ensign International 24. FK Gardner 25. Fulton Hogan

26. Galilee Energy 27. GD Group 28. Georgiou 29. GHD 30. Grizzly Energy 31. Halliburton 32. High Country Fusion 33. ISCO Australia 34. Jacobs SKM 35. JJ Richards 36. Kleinfelder 37. Laing O’Rourke 38. Lean Field Developments 39. Leighton Contractors 40. Lloyds Register Energy 41. MJ Smith 42. McConnell Dowell 43. Monadelphous 44. Murphy Pipe & Civil 45. Nacap Austrlaia 46. Origin 47. Ostwald Bros 48. QGC 49. Roma Transport

50. Santos GLNG 51. Savanna Energy 52. Saxon Energy 53. Schlumberger 54. Select Energy 55. Senex Energy 56. Shamrock Civil 57. Sirius Well Manufacturing 58. Spotless 59. Toll Energy 60. Tom Darlington Transport 61. Toxfree Australia 62. Transfield Services 63. UGL 64. URS 65. Veolia ANZ 66. Wagners 67. Walz Group 68. WDS 69. WellDog 70. Wild Desert 71. Weatherford 72. Wood Group 73. WorleyParsons

Bold = Safety Leaders Group Member

Safety Leaders Group (SLG)

• Subset of the main membership to oversee and steer ‘Safer Together’

• Membership involves 20 business leaders • 6 Operators, 13 Contractors and APPEA

• Co-chaired by Operator and Contractor

• Meets bi-monthly

• SLG champions the Working Groups

Safety Leaders Group - Steering Safer Together

What we will do?

We will be ‘Safer Together’

Vision

Together,

develop a safer

Natural Gas Exploration

& Production Industry in Queensland

Mission

1. Work collaboratively to build a pervasive culture of safety and promote

learning through the sharing of information and good practices.

2. Drive consistency and continuous improvement of industry standards, and

develop practical, effective solutions that have industry-wide application.

Targets 2. High Potential Incident Rate of less than 0.5 by 2018

1. Total Recordable Injury Frequency Rate of less than 1 by 2018 (equivalent to OGP top quartile performance)

13 6

What we will do?

Arrow Energy

CEO

URS

MD Australia

AMEC

Regional Director

Jacobs

VP Ops Australia

Toll Energy

Mgr QLD / NSW

Origin

CEO Integrated Gas

QGC

Tech Director

ConocoPhillips

President ABU East

Saxon Energy

Region Director

Santos GLNG

VP Queensland

Identify – Develop - Deliver

Working Groups • Delivery focussed

• not ‘Operator instructions’

• ‘the way we do things’

• Membership – applications to

Champions.

– SMEs and implementers

– No alternates - trust the group.

• Small number of projects

• SLG endorses work plans and manages overlaps

What are the first projects being progressed?

13 6

• Sharing platform (alerts, leadership info) • Safety culture survey • Reward & Recognition, consequence

management • Front-line leadership training.

• Common induction • Updated light vehicle standard • Heavy vehicle standard, • Improved driver competency standards • Common road speeds and IVMS.

• Process safety Guidance information • Mobile MAH Training.

• Low severity incidents (hands free) • Common controls for DROPS: • Common lifesaving behaviours. • Cross-industry Incident Review Panel. • Short Service Employees Mgt • Interaction tables

Working Group Output

Safety Performance to date

0.7 0.8

3.6 3.1

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15

ILG HPIFR

ILG TRIFR

Exposure hours

Exposure hours (pcm) TRIFR/HPIFR

OGP 2013 Top Quartile <1.0

Our Safety Performance is Plateauing

Operator collaboration

• Majority of exposure hours and incidents from Contractors • Contractors want to be part of the solution • Safety Practitioners tend to focus on technical aspects • Industry Leaders must develop and own solutions

Safer Together - Summary

• Industry maturing rapidly and safety performance is going in the right direction

• Collaborative leadership model in place

• Decisions makers sanction and challenge the delivery of the Working Groups

• Over 70 members to date – expect this to grow to support the long term development of the industry

• Aim to become OGP top quartile safety performers and become Safer Together

www.safertogether.com.au

Thank You.

Stephen Pearson, GLNG Manager Health,

Safety and Security, Santos