Corporate Responsibility & HSE Management System: PDO Case Study

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GENERATIVE ‘safety is how we do business round here WEE COLTORE LOODER ۱ PROACTIVE we work on the problems that we still find Saas CALCULATIVE we have systems in place to pais all ۳ REACTIVE Safety is important, we every time we it PATHOLOGICAL ‘who cares as long as we are not caught 

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۱ ‏رت‎ ‎Ste ‎= 2 nN Set of high quality tools available: QOuderstacdery your vulture 7 Ieoplewentery VOC OC ¥ Darcey Rule Oreck 7 Rk Ossesewedt Ourtx ¥ crkwiey GPey وه ماه پپبرص لو( + و و و و و و و هع 

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PDO & Contractors drive 120 Million Km per year average; i.e. travel round the world 3,000 times a year (8 times round the world every day !!!) OMAN vs UK 1 2594 

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Target Zero in PDO ee LTIF versus Fatality frequency over the years 5 06 8 eo =| an = 2 72 3 ‏هه‎ ‎۳ ‎ne 0. oe = i ig @ 8 ‏ص‎ ۳ = = 3 ‏بت وم‎ 5 0 bryos aa a Target EE w 526 2 ao. | ‏سبي‎ ‎9 ‏مه سم مور‎ ado ae aay Fatality frequency (Fatalities per milli 

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ION AS] 7 A at the GPOMGMOG Por Coucord bePore the revect prask that (ILLEO wore thos (OO Pevple The ICEBERG ... ‎fuel tank ignited and‏ مسج ‎isaster‏ ‎est plane crashed ‎of those had punctured the fuel ‎۱ ‏وه‎ had burst on runways ‎major accident - injuries involved ‎minor accident (towed away ‎ ‎near miss¢ ‎ 

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ای ‎a‏ WSEManagomentTriangle TheIncident Triangle 1 ۰ 6١ ١ ‏ورين‎ Ov ۹ WSs 0 Ca GEND: A = Levels covered by HSE Leadership, e.g. Joint Mgt HSE Insp., Site Management Support B = Levels covered by Workforce Engagement (ESS, Working Safely Workshops, Safety Circles/Fo! 13 te Ds ‏سب‎ 0۵۵۵۵۵۵ 

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e HEALTH, SAFETY “> & ENVIRONMENT 

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Feedback to 

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[6] ارشادات صحية و 25 eh post es 4 مارس التمارین الرياضية: مر ‎=a‏ ‎ach‏ سيد كاف ل ‏النوم بومیاً ( ۸-۵ ساعات )سج ‎ ‏اتجنب الإجهاد وخذ ‏ ( ‎ving‏ من الراحة /99 ‏واستمتع بحهاتك 0 ‏لايد ‏تيع التعليمات اللازمة عند ‎Post lpr a‏ ‏صحتك هی آهمن ما ‎WLS‏ ‎ ‎ ‎& Health check [HJ ‎Complete 2-yearly ai ‘medical examination 385 > A ‎Eat healthy ‎os ۹ Exercise regularly 1 (Dally - if possible} LT ‎Get adequate sleep ‏هواس‎ ‎daily (5-6 nours) ‎cosas ۳ ‎fluid intake 5 Avoid stress, ‏يج‎ ‎relax, enjoy life’ ‎Follow ergonomic principles ‎ ‎ ‎ ‎: _—: ww: ov) ‎ ‎ ‎ ‎Your best is you greatest eel PEE NER Deh ‎ ‎ ‎ ‎ ‎ 

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۱ achieviccy Parget 

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Corporate Responsibility & HSE Management System: PDO Case Study Presented by: ’Dapo Oguntoyinbo Corporate HSE Manager Petroleum Development Oman Managing Safety in the Workplace Dubai 08/09DEC03 Contents          Overview of Corporate Responsibility The Case for Change The Incident Triangle/Iceberg Historical Trend in HSE Using HSE to improve Corporate Responsibility HSE Management System PDO HSE Performance Target Zero: Myth or Reality ? Key Steps for improvement Managing Safety in the Workplace Dubai 08/09DEC03 Corporate Responsibility           Become a good Corporate Citizen Protect Health and Safety of people, and the Environment Reduce risks to ALARP Accountability: risks and benefits of what we do Respect for all people Legislation and standards: meeting or exceeding Obtain public confidence: operate by public consent External Reporting, with third-party verification Enhance Corporate Reputation Continuous improvement Managing Safety in the Workplace Dubai 08/09DEC03 Geco Seismic Vessel Managing Safety in the Workplace Dubai 08/09DEC03 Bhopal Union Carbide Plant Accident 1984 Over 2,500 deaths, 350,000 injured, premature deaths, etc. loss in stock market value exceeding $900 million, Union Carbide Inc. paid over $425 million to settle litigations, etc. Managing Safety in the Workplace Dubai 08/09DEC03 Piper Alpha 1988: Over 167 people dead, estimated loss over $3 Billion Petrobras P-36 Sinking 2001 •Brazil, March 16, 2001 - The world's biggest offshore oil rig, owned by Brazil's state oil giant, Petrobras, sank into the ocean spilling crude oil, a day after an explosion that killed 10 people. happens only to others? Managing Safety in the Workplace Dubai 08/09DEC03 Zauliyah-16 Blow Out (August 2001) Blow-out, leading to loss of Well Pulling Hoist, Well, Facilities, Environmental damage, but luckily no fatality Managing Safety in the Workplace Dubai 08/09DEC03 Cost of Accidents at Work Some Major Accidents 1979 - THREE MILE ISLAND NUCLEAR PLANT billion 1984 – BHOPAL UNION CARBIDE PLANT billion - US $ 1.3 US $ 1.4 1986 - CHERNOBYL NUCLEAR PLANT - US $ 5.5 billion 1988 - PIPER ALPHA OIL PLATFORM - US $ 3.0 billion 1989 - EXXON VALDEZ (clean-up costs only) 1998 - Esso Longford gas plant explosion - US $ 2.5 billion - US $ 4.8 billion Good HSE is Good Business Managing Safety in the Workplace Dubai 08/09DEC03 Historical Trend of Public Trust High Trust Me Trust Tell Me Show Me Involve Me Low 1940 TUT 1.5 1980 1960 Time 2000 The Incident Triangle One fatality---------------------100 Lost Time Incidents--1000 Non LTI’s----------10,000 Near Misses--100,000 Unsafe ActsOver 96% of Incidents are caused by People Managing Safety in the Workplace Dubai 08/09DEC03 The Causes of Injuries Fatalities Lost Time Injuries Medical Treatment First-aid Cases Unsafe acts & Unsafe conditions 96% / 4 % Managing Safety in the Workplace Dubai 08/09DEC03 Historical Trend in HSE Injuries Engineering Systems: Management Systems: Hardware issues to engineer out develop procedures, etc. to hazards control hazards Focus on People: empowerment and conviction to work SAFELY Time Managing Safety in the Workplace Dubai 08/09DEC03 5 4 Lost Time Inj uri es Frequency 3.61 PDO & Contractors HSE Performance 1986 – 2002 LTIF: incident per million hours worked 3 2 1 0 86 2.14 1.63 87 88 1.62 1.74 89 90 1.42 1.21 1.19 91 92 93 0.73 0.94 94 0.70 0.60 0.75 0.79 95 96 97 98 0.37 99 2000 2001 2002 Managing Safety in the Workplace Dubai 08/09DEC03 Using HSE to enhance Corporate Responsibility Managing Safety in the Workplace Dubai 08/09DEC03 Improving Corporate Responsibility via HSE  Justification for managing HSE effectively in the workplace: – Humanitarian – Legal – Financial  The cost of poor HSE performance: – – – – – – –  Human life Loss of loved ones, family suffering Personal injury & suffering, disabilities – partial or permanent Loss of stable income for families Equipment damage, deferred production avoidable loss Significant financial loss (e.g. Time, Facility, productivity, etc.) Reputation An organisation with a good HSE Management System is usually a well run organisation Managing Safety in the Workplace Dubai 08/09DEC03 HSE Management System Managing Safety in the Workplace Dubai 08/09DEC03 HSE Man ag emen t Hazard/ Risk Barriers or Controls WORK Un d e si rab l e o u t co me Managing Safety in the Workplace Dubai 08/09DEC03 18/1 1/2003 2 SIEP EP-HSE HSE Management System Objectives:  Manage hazards & effects to H,S & E in a structured way  Set performance standards for managing HSE  Continuous improvement via monitoring, reviews and audits Impact of HSE-MS on Corporate Responsibility:  Prevent injury to people, safeguard health and environment  Reputation Implementing HSE-MS:  Improve workforce understanding of HSE-MS  Link Hazard Management to Activity  Understand “What it means to Me” Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE Management System Leadership and Commitment Plan Policy and Strategic Objectives Organisation, Responsibilities Standards, Procedures and Document Control Do Hazards and Effects Management Process Corrective Action Planning Check Implementation Monitoring Audit Act Management Review Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE Management System Leadership and Commitment Policy and Strategic Objectives Organisation, Responsibilities Standards, Procedures and Document Control Hazards and Effects Management Process Corrective Action Planning Implementation Audit Management Review Monitoring Informed Involvement Review Set Targets Benchmark Assign Responsibilities Plan Document Resources Train people Execute Do Measure performance Audit Obtain feedback Evaluate employees perf. Check Communicate performance Follow-up Audit Findings Reward/correct employees Repeat PLAN Act Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSEMS Managing Safety in the Workplace Dubai 08/09DEC03 HSE-MS is about People Barriers or Controls Hazard/ Risk WORK Accident Violation + Error = DISASTE R Managing Safety in the Workplace Dubai 08/09DEC03 Fatal Electrocution What happened?: Electric shock whilst repairing Microwave Oven Result: • One dead Learning: • Non-compliance (warning signs) • Competency/Standards Managing Safety in the Workplace Dubai 08/09DEC03 Challenges of Compliance (Hearts & Minds) Managing Safety in the Workplace Dubai 08/09DEC03 People: Focus on Hearts & Minds Managing Safety in the Workplace Dubai 08/09DEC03 HSE CULTURE LADDER Managing Safety in the Workplace Dubai 08/09DEC03 Hearts & Minds Tools Set of high quality tools available: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Understanding your culture  Implementing HSE MS  Managing Rule Breaking  Risk Assessment Matrix  Improving Supervision Making Change Last Seeing – as others see you Safety Climate / Workforce involvement Behaving Safely Achieving situation awareness Managing Safety in the Workplace Dubai 08/09DEC03 PDO HSE Performance Managing Safety in the Workplace Dubai 08/09DEC03 PDO & Contractors drive 120 Million Km per year average; i.e. travel round the world 3,000 times a year (8 times round the world every day !!!) Managing Safety in the Workplace Dubai 08/09DEC03 PDO & Contractors: Contractors Road Safety Performance RTAs/million kms RTAs/millionper kms Million Km Road Traffic Accidents driven 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Reduction: DDC Managing Safety in the Workplace Dubai 08/09DEC03 Road Safety Challenges in PDO Key Road Safety Performance Figures YTD Million kms driven 2000 2001 2002 200 118 121 132 92 RTAs 158 159 111 70 RTAF 1.3 1.3 0.8 0.7 Rollovers 13 43 Rollover Freq.. 0.13 RTA LTIs 0.36 21 33 22 0.27 0.16 15 5 Managing Safety in the Workplace Dubai 08/09DEC03 3 Target Zero in PDO LTI frequency (LTI/million hrs) LTIF versus Fatality frequency over the years 1.6 92 1.4 93 1.2 94 1.0 00 0.8 0.6 0.4 02 2003Target 95 03(YTD) 98 97 96 01 99 0.2 Zero 0.0 0.00 0.05 0.10 0.15 Fatality frequency (Fatalities per million hrs) Managing Safety in the Workplace Dubai 08/09DEC03 0.20 Target Zero: Myth or Reality ? Managing Safety in the Workplace Dubai 08/09DEC03 Let’s look at the STATISTICS for Concord before the recent crash that KILLED more than 100 People The ICEBERG ... disaster / 1 1 fatality major accident injuries involved 4 minor accident (towed away) 84 near misses ??? unsafe act ??? fuel tank ignited and plane crashed of those had punctured the fuel tank tyres had burst on runways don’t know how many near misses or unsafe acts had happened Managing Safety in the Workplace Dubai 08/09DEC03 Target-Zero: No Injuries HSE HSEManagement ManagementTriangle Triangle B A GEND: The TheIncident IncidentTriangle Triangle No Injur y One One Fatality Fatality Improved HSE Culture (Proactive ): NoSite LTIHSE Strong Club Awareness and Supervision via ESS, WS, STOP, etc. Site Management HSE Leadership, e.g. via Support for ESS, HSE Advisers Networking, etc. 100 100LTIs LTIs Positive HSE Climate created by top Management (HSE is Priority No. 1) 1,000 1,000Non-LTIs Non-LTIs 10,000 10,000Near NearMisses Misses 100,000 100,000Unsafe UnsafeActs Acts A = Levels covered by HSE Leadership, e.g. Joint Mgt HSE Insp., Site Management Support B = Levels covered by Workforce Engagement (ESS, Working Safely Workshops, Safety Circles/For Managing Safety in the Workplace Dubai 08/09DEC03 Feedback to CEOs Managing Safety in the Workplace Dubai 08/09DEC03 Feedback to CEOs Managing Safety in the Workplace Dubai 08/09DEC03 Managing Safety in the Workplace Dubai 08/09DEC03 Managing Safety in the Workplace Dubai 08/09DEC03 How can we become Catalysts for Improvement of HSE Performance ? How can we contribute towards achieving Target ZE R ? O Managing Safety in the Workplace Dubai 08/09DEC03 Key Steps for improving Corporate Responsibility  Develop and Implement HSE Management System Demonstrate Leadership & Commitment Effective Workforce Engagement Evaluate HSE Culture of the organisation Convince and Empower the workforce to work SAFELY  Recognise good performance     Managing Safety in the Workplace Dubai 08/09DEC03 He who does not learn from the mistake of others is bound to repeat them !!! A SAFE Business is a Good Business Managing Safety in the Workplace Dubai 08/09DEC03