Shell Exploration & Production Contractor HSE Management - PDO

Shell Exploration & ProductionContractor HSEManagementEP2005-0110EP BUSINESS HSECONTROL FRAMEWORKVolume 1HSE Management SystemECCN: Not subject to EAR -No US contentRestrictedPrinted copies are uncontrolled

SummaryThis HSE document is prepared by Shell International Exploration and Production B.V. (SIEP), The Hague as a serviceunder arrangements in existence with companies of the Royal Dutch/Shell Group. It refers to Group standards andprovides guidance for the management of Health, Safety and Environmental issues in Shell operations.The EP Business HSE Control Framework replaces the previous EP HSE Manual EP95-0000. The Frameworkcomprises three volumes, each including a number of separate sections. The replacement of the separate sections isbeing phased during the period 2004-2005, during this time those EP95000 sections that have not be replaced by theirEP2005-0000 equivalent will remain valid.The Framework describes the elements necessary to develop, implement and maintain an HSE management System forExploration and Production activities and describes the tools and techniques available to do this. In line with the Shellstrategy to adopt Industry or International Standards wherever possible, the HSE Management System in thisFramework has been based on the guidelines prepared by the International Association of Oil & Gas Producers (OGP).CopyrightThe copyright of the EP Business HSE Control Framework is vested in Shell International Exploration and ProductionB.V. (SIEP), The Hague, the Netherlands.This document is classified as Restricted to Shell Personnel Only. 'Shell Personnel' includes all staff with a personalcontract with a Shell Group Company, designated Associate Companies and Contractors working on Shell projects whohave signed a confidentiality agreement with a Shell Group Company. Issuance of this document is restricted to staffemployed by a Shell Group Company. Neither the whole nor any part of this document may be disclosed to Non-ShellPersonnel without the prior written consent of the copyright owners.Copyright 2004 SIEP B.V.DisclaimerSIEP is not aware of any inaccuracy or omission from this document but no responsibility is accepted by SIEP or by anyperson or company concerned with furnishing information or data used herein, for the accuracy of any information oradvice given in or any omission from this document, nor for any consequences whatsoever resulting directly or indirectlyfrom reliance on or adoption of this document, even if there was a failure to exercise reasonable care on the part of SIEPor any person or company as aforesaid.OGPThe International Association of Oil & Gas producers (OGP) encompasses most of the world’s leading publicly traded,private and state-owned oil & gas companies, oil & gas associations and major upstream service companies.The association was formed in 1974 to develop effective communications between the upstream industry and anincreasingly complex network of international regulators. Originally called the E&P Forum, in 1999 the name InternationalAssociation of Oil & Gas Producers (OGP) was adopted. Shell participated in a task force set up by the E&P forum todevelop guidelines for the development and application of Health, Safety and Environment Management Systems.These were published in July 1994.

EP2005 Volume 1HSE Management inthe BusinessEP2005-0110 Contractor HSE ManagementRestrictedEP2005 Document Approval Sheet 5EP2005-0110-ST: Contractor HSE Management 90. Revision Information………………………………………………………………………… 91. Introduction…………………………………………………………………………………… 92. Scope and Application……………………………………………………………………... .93. EP Policy………………………………………………………………………………………94. EP Standard……….………………………………………………………………………….94.1 Key Roles and Responsibilities……………………………………………………………..94.2 Planning: Assess HSE Risks and Contractor Capability………………………………. 104.3 Execution: Manage Contract………………………………………………………………114.4 Analyse/Improve…………………………………………………………………………….125. Key Performance Indicators……………………………………………………………….126. Related EP Controlling Documents……………………………………………………… 135. Other References…………………………………………………………………………...13App. 1: Activity Responsibility Matrix……………………………………………………….………14App. 2: HSE Responsibilities………………………………………………………………………..15EP2005-0110-PR-10: Contractor HSE Management (including stoplight) 171. Revision Information………………………………………………………………………..172. Objective……………………………………………………………………………………..173. Scope….…………………………………………………………………………………….. 174. Risk Domain and Risk……………………………………………………………………... 175. Input to Activity……………………………………………………………………….….…. 176. Output to Activity..………………………………………………………………………….. 187. Activity Responsibility Matrix……………………………………………………………… 198. Task Explanation – Planning………………………………………………….………….. 209. Task Explanation – Execution……………………………………………………………..2310. Task Explanation – Analyse and Improve………………………………………………. 2711. Records…..…………………………………………………………………………………. 2813. Related Controlling Documents………………………………………………………….. 2914. Other References…………………………………………………………………………...29EP2005-0110-SP-01: Contract Holder and Company Site Representative HSSECompetences 310. Revision Information……………………………………………………………………….. 311. Scope…………………………………………………………………….………………….. 312. External Requirements……………………………………………………………………..313. External References……………………………………………………………………….. 314. EP Specification……………………………………………………………………………. 314.1 Definitions…………………………………………………………………………………… 314.2 Roles………………………………………………………………………………………… 314.3 Competence Requirements………………………………………………………………. 324.4 Safe Systems of Work/Personal Safety Competences………………………………… 335. Related EP Controlling Documents……………………………………………………….336. Other References…………………………………………………………………………...33EP2005-0110-SP-02: Contractor HSE Capability Points System 350. Revision Information……………………………………………………………………….. 355. Scope…………………………………………………………………….………………….. 356. External Requirements……………………………………………………………………..357. External References……………………………………………………………………….. 358. EP Specification……………………………………………………………………………. 364.1 Contractor’s Evaluation……………………………………………………………………. 365. EP and External References……………………………………………………………... 41

EP2005 Volume 1HSE Management inthe BusinessEP2005-0110 Contractor HSE ManagementRestrictedEP2005-0151-T0-80: Contractor HSE Capability Questionnaire 431. General guidelines for preparation of questionnaire External References………….. 432. Questionnaire for Contractor HSE Capability Assessment …………………………… 43EP2005-0151-T0-81: HSE Plan Checklist for Major Contracts 531. HSE Plan Definition Guideline……………………………………………………………. 532. HSE Management System ………………………………………………………………..543. Detailed checklists for HSE Plan………………………………………………………….55EP2005-0151-T0-82: HSE Plan Checklist for Small Contracts 711. HSE Plan Definition Guideline……………………………………………………………. 712. Checklist for HSE Plan………….………………………………………………………….713. Small Contract Typical HSE Plan Performa…………………………………………….73

EP2005 Volume 1HSE ToolEP2005 Document ApprovalSheetRestrictedEP2005-0140-TO-84C. Optional acknowledgement and reviewNameRegion/ Nature of involvement Date SignatureFunctionKrishna Bala EPA Principal AuthorNumpang Suntai EPA ReviewerSuzanne Russel EPE ReviewerLarissa Schapkova EPR ReviewerBilly Stidham EPW ReviewerDoc. No.:EP200412282462Version:2Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content2 of 2Printed copies are uncontrolledEP200406291204/Tool EP2005-0140-TO-84, version 1

EP2005 Volume 1HSE StandardContractor HSEManagementRestrictedEP2005-0110-STSTANDARD: CONTRACTOR HSE MANAGEMENTThis HSE document may set requirements supplemental to applicable law. However,nothing herein is intended to replace, amend, supersede or otherwise depart from anyapplicable law relating to the subject matter of this HSE document. In the event of anyconflict or contradiction between the provisions of this HSE document and applicablelaw as to the implementation and governance of this HSE document, the provisions ofapplicable law shall prevail.This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSEControl Documentation Management’ [9].0. Revision Information• Amended EP Procedure ‘Contractor HSE Management (including stoplight)’;• Introduced new EP Specification ‘Contract Holder and CSR HSSE Competences’;• Removed EP Specification ‘HSE Contract Modes’* 1 .1. IntroductionContracted work accounts for 70-75% of EP’s total exposure hours and much of it involves HighHSE Risk hence working with contractors and early planning are essential to improve HSE at theworkplace.This Standard is aligned with EP.13 ‘Manage Supply Chain – Global Category Management’ [25]of the EP Business Model (EPBM) and draws heavily on the Oil and Gas Producers Association(OGP) document ‘HSE Management – Guideline for working together in a contract environment’[22].2. Scope and ApplicationThis Standard and the associated controlling documents set the HSE requirements forcontracting in the EP Business and apply to Global and Regional framework arrangements andindividual contracts.Italicised terms within this Standard are defined EP Specification ‘EP2005 HSE Glossary ofDefinitions’ [7].3. EP Policy• Requires contractors to manage HSE in line with the EP HSE Policy [21].• Management controls shall be appropriate for the level of risk, the organisational relationshipwith the contractor and the capabilities of the contractor.4. EP StandardCompliance with this Standard shall be achieved by implementing EP Procedure ‘ContractorHSE Management (including stoplight)’ [3]. The activity responsibility matrix of this Procedure isshown in [App. 1].4.1 Key Roles and ResponsibilitiesThe following Supply Chain Management (SCM) roles, defined in [25], have HSE-specificresponsibilities see [App. 2] under this Standard and associated controlling documents:1The content of the Specification has been integrated into Task 2 of EP Procedure ’Contractor HSEManagement (inc. Stoplight) [3].Doc. No.: Version:EP200406372785 2Org. Doc No.: EP2005-0110-STDate:30 August 2006Custodian:EPS-HSEECCN: Not subject to EARPage:No US content1 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE StandardContractor HSEManagementRestrictedEP2005-0110-ST• Contract Owner (CO);• Contract Holder (CH);• Company Site Representative (CSR) and Contract Users;• Tender Boards or equivalent (TB);• Global Category Manager (GCM);• Category Focal Point (CFP);• Regional Focal Point (RFP);• Contracting and Procurement staff (C&P);• HSE Adviser.4.2 Planning: Assess HSE Risks and Contractor CapabilityContract HSE RiskEach contract shall be categorised as Low HSE Risk, Medium HSE Risk or High HSE Riskdepending on the highest risk inherent in the contract scope determined using the Group (YG)‘Risk Assessment Matrix’ (RAM) [24, §2.1]. To minimise effort and to ensure consistencyreference shall be made to the relevant hazard & environmental aspects registers of the EPCompany and other HSE risk assessments maintained at the SCM category level or by industry(e.g. OGP).Contract ModeAccountability for HSE management shall be clearly defined between the EP Company and thecontractor and between the contractor and their subcontractors for the duration of the contract orindividual phases of the contract.On the basis of these accountabilities contracts and subcontracts shall be categorised as Mode1, Mode 2 or Mode 3:Mode 1 contracts:‘The contractor provides people and tools for the execution of the work under the supervision,instructions and HSE Management System of the company. The contractor has a ManagementSystem to provide assurance that the personnel for whom he is responsible are qualified andhealthy for the job and that the tools and machinery he is providing are properly maintained andsuitable for the job’ 2 .Mode 2 contracts:‘The contractor executes all aspects of the job under its own HSE Management System,provides the necessary instructions and supervision and verifies the proper functioning of itsHSE Management System. The company is responsible for verifying the overall effectiveness ofthe HSE management controls put in place by the contractor, and assuring that both thecompany’s and the contractor’s HSE-MS are appropriately compatible’ 2 .Mode 3 contracts:Contractor operates within its own HSE MS that has no interfaces with the EP Company HSEMS and is not required to report HSE performance data including incidents to EP. However, thisdoes not exclude the possibility that the EP Company may wish to guide and influence HSEperformance under the contract.Appointment of Contract HoldersThe task of being a CH of Mode 1 and Mode 2 Medium HSE Risk and High HSE Risk contractsis deemed to be an HSE critical task and hence subject to the requirements of EP Specification‘Contract Holder and CSR HSSE Competences’ [1].Contract HSE ClausesHSE clauses for each contract shall be selected, with advice from SCM and the relevant HSEAdviser, to suit the:• Type of activity;2 Definition from OGP HSE Management – ‘Guideline for working together in a contract environment [22]’Doc. No.: Version:EP200406372785 2Org. Doc No.: EP2005-0110-STDate:30 August 2006Custodian:EPS-HSEECCN: Not subject to EARPage:No US content2 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE StandardContractor HSEManagementRestrictedEP2005-0110-ST• Contract-specific HSE risks;• Contract mode.Contractor Capability AssessmentAn HSE capability assessment shall be made of all contractors considered for Mode 1 or Mode 2Medium HSE Risk or High HSE Risk contracts to assess their ability to manage the HSE risksassociated with the contract work scope. The HSE capability assessment shall be based on:• A standardised HSE capability questionnaire;• Past HSE performance (completeness and effectiveness of their HSE MS implementationusing previous performance closeout reports and historical HSE incident statistics);• On-site audits (if deemed required).On the basis of this HSE capability assessment contractors shall be categorised into three‘stoplight’ bands (green, amber and red, reflecting reducing HSE management capabilities) foruse in selection of eligible contractors to bid and during bid evaluation.The HSE Capability Assessment is not required for:• Mode 1 or Mode 2 Low HSE Risk contracts. However, contractors’ ability to manage theHSE risks associated with the contract work scope and their historical HSE performanceshall be evaluated and deemed acceptable;• Mode 3 (Low/Medium/High HSE Risk).Tendering/Bidding or Negotiating and Award of ContractThe banding of a contractor in the red ‘stoplight’ band implies an HSE management capabilitybelow EP Company requirements and hence a red-banded contractor shall not be invited totender/bid or enter into negotiations or be awarded a contract if an amber or green-bandedcontractor is available on the short list. Any deviations to this rule shall be authorised by therelevant Tender Board.4.3 Execution: Manage ContractContract HSE PlansFor all Mode 1 and Mode 2 contracts a Contract HSE Plan shall be approved by the EPCompany before contracted work is started. The plan shall indicate those pre-start-up activities,which must be completed before contracted work may start. These activities shall includecommunicating the requirements of the Contract HSE Plan to the relevant responsible parties.Contract HSE Plans shall document the level of HSE risk inherent in the contract scope:• For Mode 2 Medium HSE Risk and Mode 2 High HSE Risk contracts the Contract HSE Plan,using the check list in [5], shall:o Provide a demonstration that the HSE risks of the contract hazards and effects areidentified and reduced to as low as reasonably practicable (ALARP) in accordance withEP Standard ‘ Hazards and Effects Management System (HEMP)’[10]; ando Include the contract specific HSE objectives in line with the phasing of the contract;• For Mode 1 (Low, Medium or High HSE Risk) and Mode 2 Low HSE Risk contracts theContract HSE Plan shall document how the HSE risks of the contract scope will be managedin accordance with [6].Pre-mobilisation and Mobilisation ActivitiesFor all Mode 1 and Mode 2 contracts completion of pre-start-up activities in the Contract HSEPlan shall be verified prior to commencement of work and a kick-off meeting shall be held.Pre-job inspections shall be held for all Mode 1 and Mode 2 contracts, which are Medium HSERisk or High HSE Risk. Start-up HSE audits may be required depending on the contract size andcomplexity.Doc. No.: Version:EP200406372785 2Org. Doc No.: EP2005-0110-STDate:30 August 2006Custodian:EPS-HSEECCN: Not subject to EARPage:No US content3 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE StandardContractor HSEManagementRestrictedEP2005-0110-ST6. Related EP Controlling DocumentsNo. Title Reference[1] EP Specification ‘Contract Holder and CSR HSSEEP2005-0110-SP-01Competences’[2] EP Specification ‘Contractor HSE Capability Points System’ EP2005-0110-SP-02[3] EP Procedure ’Contractor HSE Management (inc. Stoplight)’ EP2005-0110-PR-10[4] EP Tool ‘Contractor HSE Capability Questionnaire’ EP2005-0110-TO-80[5] EP Tool ‘HSE Plan Checklist for Major Contracts’ EP2005-0110-TO-81[6] EP Tool ‘HSE Plan Checklist for Small Contracts’ EP2005-0110-TO-82[7] EP Specification ‘EP2005 HSE Glossary of Definitions’ EP2005-0100-SP-01[8] EP Standard ‘EP2005 HSE Roles and Responsibilities’ EP2005-0103-SP-01[9] EP Standard ‘HSE Control Documentation Management’ EP2005-0140-ST[10] EP Standard ‘Hazards and Effects Management Process(HEMP)’EP2005-0300-STNote:EP Specification ‘HSE Contract Modes’ has been removed; see Revision Information for furtherinformation.7. Other ReferencesNo. Title Reference[21] EP HSE Policy, June 2004 SWW[22] OGP HSE management – ‘Guideline for working together in a WWWcontract environment’; Report No. 6.64/291; September 1999[23] Group (YG) 3 ‘Incident Classification, Investigation andSWWReporting’; February 2002[24] Group (YG) 3 ‘Risk Assessment Matrix’ (RAM); April 2006 SWW[25] EP.13 ‘Manage Supply Chain – Global Category Management’ SWW3 Group Yellow Guide, issued by the Health, Safety and Environment Advisers PanelDoc. No.: Version:EP200406372785 2Org. Doc No.: EP2005-0110-STDate:30 August 2006Custodian:EPS-HSEECCN: Not subject to EARPage:No US content5 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE StandardContractor HSEManagementRestrictedEP2005-0110-STAppendix 1: Activity Responsibility MatrixTask definitionHSEAdvisorEP/Dir/Reg/OpCoContractHolder(CH)SCM/C&P staffplusRFP*/CFP* andGCM*(Tasks 15-17)ContractOwner(CO)TenderBoard(TB)EP CompanySite Rep(CSR)ContractUserRemarks/Ref to other EP 2005-0110documentsPlanning1 Assess and analyseHSE risksContract User to be consultedparticularly for call-off typecontracts2 Categorise mode ofcontract3 Verify CH competence If M/H HSE Risk, Refer to EP2005-0110-SP-034 Select contract HSEclauses5Identify eligiblecontractors6 Evaluate HSE capabilityquestionnaire7 Evaluate historical HSEperformance8 Evaluate the needfor/execute an HSEaudit/review9 Band contractors10 Define evaluationcriteria and issuetender/bidor negotiate11 Evaluate bids/offers &select contractor forawardExecution12 Define and approveContract HSE PlanIf contract is Mode 1/2 Low HSERisk go toTask 10.If contract is Mode 3 remainingTasks 6 -18 are not required.Refer toEP2005-0110-TO-80EP2005-0110-SP-02Refer to EP2005-0180-STGreen, Amber or Red -decreasing capability to manageHSE risks in contractDefine type of Contract HSE Planto be prepared by contractors (TO-81or TO-82 )Contractors submit draft ContractHSE Plan: how HSE risks will bemanaged and the HSEmanagement capabilities of anysubcontractorsContractor updates draft planTO-81or TO-8213 Execute pre-mob. andmob. activities14 Monitor implem. ofContract HSE PlanCSR/Contract User responsiblefor day to day monitoringAnalyse/Improve15 Sharing learning andgood practice(contractor HSEforums)16 Report to the TenderBoard17Steer HSE performanceimprovements18 Closeout of contractRFP/CFPRFP/CFPGCM/RFP/CFP*EP/Dir/Reg/OpCo: EP/Directorate/Region/Operating CompanySCM/C&P: Supply Chain Management/Contracting & ProcurementCFP: Category Focal Point RFP: Regional Focal PointExecute (executing); Performing a taskContribute (contributory); Contribute to a taskCheck (controlling); Check, verify resultsGCM: Global Category ManagerApprove (Approving); Approve resultsReceiving informationDoc. No.: Version:EP200406372785 2Org. Doc No.: EP2005-0110-STDate:30 August 2006Custodian:EPS-HSEECCN: Not subject to EARPage:No US content6 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE StandardContractor HSEManagementRestrictedEP2005-0110-STAppendix 2: HSE ResponsibilitiesContract Owner (CO):• Appoint competent CH and endorse contract award and approve Contract HSE Plans.Contract Holder (CH):• The CH roles are deemed to be HSE critical for Medium and High HSE Risk contracts andare therefore subject to EP Standard ‘Competence Assurance of HSE Critical Positions’ [8](not a requirement for Low HSE Risk contracts);• Assess and analyse activity HSE risks;• Select contract mode and relevant HSE contract terms and conditions;• Define the stoplight band for eligible contractors;• Support C&P staff in contractor selection (tender, negotiate and award);• Define, discuss and agree Contract HSE Plan with the contractor(s);• Execute pre-mobilisation and mobilisation activities;• Monitor compliance with Contract HSE plan;• Steer HSE performance improvement during the contract and closeout of contract.Company Site Representative/Contract User (CSR/CU):• To have knowledge of the contract work scope and associated HSE risks, HSE capability ofcontractor and the required level of supervision;• Perform routine monitoring to verify compliance with Contract HSE Plan;• Support the CH in analysing HSE risks, preparation of Contract HSE Plan and during premobilisationand mobilisation activities;• Support the HSE Adviser in sharing learning.Tender Board (TB) or equivalent Chairman:• Challenge the CH and/or CO on compliance with EP/Dir/Reg/OpCo HSE standardsincluding this Standard;• Approve deviations during contract tender, negotiation, bid evaluation and award;• Approve award of contract.Regional Focal Point (RFP) and Category Focal Point (CFP):• Ensure umbrella/frame arrangements and approved contractors at the category level meetthe requirements of the EP HSE Standards (EP2005-0000 suite of HSE ControllingDocuments and any HSE requirements specific to the Category/Region). The RFP/CFPshall be supported by discipline expertise at the EP/Regional level (e.g. HSE, Legal,Seismic, Wells, Projects) for the following:o Maintaining general and activity specific HSE clauses;o Performing HSE MS audits or reviews, to assess the HSE capability of key contractorsbeing assessed and approved at the category Global or Regional level).• Support the HSE Adviser and CH in steering HSE performance improvements.Global Category Manager (GCM):Support the HSE Adviser and CH in steering HSE performance improvements.Contract & Procurement staff (C&P):• Support the CH in assessing HSE risks and in the identification of eligible contractors;• Support the HSE Adviser to assess contractor capability to manage HSE risks;• Define evaluation criteria and issue tender/bid or negotiate;• Evaluate bids/offers & select contractor for award.HSE Adviser (EP/Directorate/Region/OpCo):• Support the CH in assessing HSE risks and categorising contract mode;• Assess contractor capability to manage HSE risks in the contract work scope;• Share learning e.g. using contractor HSE forums and steer HSE performance improvement.Doc. No.: Version:EP200406372785 2Org. Doc No.: EP2005-0110-STDate:30 August 2006Custodian:EPS-HSEECCN: Not subject to EARPage:No US content7 of 7Printed copies are uncontrolled

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EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Procedure: Contractor HSE Management (including stoplight)This HSE document may set requirements supplemental to applicable law. However, nothingherein is intended to replace, amend, supersede or otherwise depart from any applicable lawrelating to the subject matter of this HSE document. In the event of any conflict orcontradiction between the provisions of this HSE document and applicable law as to theimplementation and governance of this HSE document, the provisions of applicable law shallprevail.This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSEControl Documentation Management’ [8].Revision informationObjectiveDescription• Removed EP Specification ‘HSE Contract Modes’* 1 ;• Introduced new EP Specification ‘Contract Holder and CSR HSSECompetences’;• Amended Roles and Responsibilities of Global Category Manager (GCM),Category Focal Point (CFP) and Contract Holder (CH);• Introduced Role of Regional Focal Point;• Amended Task 5 and 16.• Updated Risk Domain in accordance with EP BMS updateTo work together with contractors to continually improve HSEperformance by implementing HSE management controls that areappropriate for the level of HSE risk, the organisational relationshipwith the contractor and the capabilities of the contractor.ScopeAll contracts awarded by or on behalf of EP Companies. ThisProcedure is applied in three phases.(1) Planning: assess HSE risks and the capability of contractors tomanage those risks. The stoplight method is used, in whichcontractors are categorised into three bands - green, amber andred - according to their HSE management capabilities.(2) Execution: requires engagement protocols with contractorsaccording to their HSE management capabilities.(3) Analyse and Improve: capture and share learning at both thecontract and Supply Chain Management (SCM) category level.Risk domain and risk Risk Domain Risk(s):HSEInadequate management of Contractor HSEReputation Damage to the Group (license to operate)because Shell appears not to be able to conductits activities in a responsible manner.Input to activityInput From IT systemCH’s individual competencerecordsCH’s Line Manager CBD/ShellPeopleContracted activity and risk Process requesting -informationcontracted servicesContractors’ historical HSEperformance(Shell and industry)Shell databasesVendor databasesFountain1 The content of the Specification has been integrated into Task 2 of thisProcedure.Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content1 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Input From IT systemCompany/Shell assessments e.g. audit reports, -of contractors’ HSE MS closeout reportsContractor HSE performancefeedbackHSE review process -Output of activity Output To Activity / Doc. NoStoplight bandHSE capability and contractmanagement proceduresContract HSE clauses ContractDoc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content2 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Activity ResponsibilityMatrixDetails on HSE roles and responsibilities and related abbreviationsare contained in ‘EP Supply Chain Management Key Roles’ [22] andEP Specification ‘EP2005 HSE Roles and Responsibilities’ [7].Task definitionHSEAdvisorEP/Dir/Reg/OpCoContractHolder(CH)SCM/C&P staffplusRFP*/CFP* andGCM*(Tasks 15-17)ContractOwner(CO)TenderBoard(TB)EP CompanySite Rep(CSR)ContractUserRemarks/Ref to other EP 2005-0110documentsPlanning1 Assess and analyseHSE risksContract User to be consultedparticularly for call-off typecontracts2 Categorise mode ofcontract3 Verify CH competence If M/H HSE Risk, Refer to EP2005-0110-SP-034 Select contract HSEclauses5Identify eligiblecontractors6 Evaluate HSE capabilityquestionnaire7 Evaluate historical HSEperformance8 Evaluate the needfor/execute an HSEaudit/review9 Band contractors10 Define evaluationcriteria and issuetender/bidor negotiate11 Evaluate bids/offers &select contractor forawardExecution12 Define and approveContract HSE PlanIf contract is Mode 1/2 Low HSERisk go toTask 10.If contract is Mode 3 remainingTasks 6 -18 are not required.Refer toEP2005-0110-TO-80EP2005-0110-SP-02Refer to EP2005-0180-STGreen, Amber or Red -decreasing capability to manageHSE risks in contractDefine type of Contract HSE Planto be prepared by contractors (TO-81or TO-82 )Contractors submit draft ContractHSE Plan: how HSE risks will bemanaged and the HSEmanagement capabilities of anysubcontractorsContractor updates draft planTO-81or TO-8213 Execute pre-mob. andmob. activities14 Monitor implem. ofContract HSE PlanCSR/Contract User responsiblefor day to day monitoringAnalyse/Improve15 Sharing learning andgood practice(contractor HSEforums)16 Report to the TenderBoard17Steer HSE performanceimprovements18 Closeout of contractRFP/CFPRFP/CFPGCM/RFP/CFP* EP/Dir/Reg/OpCo: EP/Directorate/Region/Operating Company GCM: Global Category Manager RFP: Regional Focal PointSCM/C&P: Supply Chain Management/Contracting & ProcurementCFP: Category Focal PointExecute (executing); Performing a taskApprove (Approving); Approve resultsContribute (contributory); Contribute to a taskReceiving informationCheck (controlling); Check, verify resultsDoc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content3 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10PlanningTask 1: Assess and analyse HSE risksCategorise each contract as Low HSE Risk, Medium HSE Risk orHigh HSE Risk corresponding to the highest risk inherent in thecontract scope as follows:1. Identify all Hazards associated with activities in the contractwork scope, covering but not limited to the following:• Nature of the work - work methods, staffing, materials,equipment, tools to be used and associated hazards e.g.lifting, working at heights, transport, etc;• Nature of the product or service i.e. is the contractorrequired to perform an HSE critical activity (such as thedesign HSE-critical equipment) as opposed to a hazardousactivity (such as working at height);• Location of the work - vicinity of shops, schools, hospitals,offices, houses; environmentally sensitive locations(beaches, coral reefs, fishing areas, etc), and associatedhazards e.g. H 2 S, asbestos, chemicals and heat;• Local constraints;• Number of concurrent operations or contractors on site;• Potential consequences – environmental harm, injury,illness, asset damage, impact on local societal sensitivities,reputation with Non-Governmental Organisations (NGO) orGovernments, etc.To minimise the assessment effort and to ensure consistencyassessors shall refer to the relevant hazards & environmentalaspects registers of the EP Company, the EP Standard ‘Hazardsand Effects Management Process’ (HEMP) [11] and other HSErisk assessments maintained at the SCM Category level or byindustry (e.g. OGP).2. Assess the HSE risk of each Hazard using the Group (YG) ‘RiskAssessment Matrix’ (RAM) [23, §2.1].3. Document the HSE risk assessment.Task 2: Categorise mode of contractCategorise the contract as Mode1, Mode 2 or Mode 3:Mode 1 contract:‘The contractor provides people and tools for the execution of thework under the supervision, instructions and HSE ManagementSystem of the company. The contractor has a Management Systemto provide assurance that the personnel for whom he is responsibleare qualified and healthy for the job and that the tools and machineryhe is providing are properly maintained and suitable for the job’ 2 .Mode 2 contract:‘The contractor executes all aspects of the job under its own HSEManagement System, provides the necessary instructions andsupervision and verifies the proper functioning of its HSEManagement System. The company is responsible for verifying theoverall effectiveness of the HSE management controls put in placeby the contractor, and assuring that both the company’s and thecontractor’s HSE-MS are appropriately compatible’ 2 .2 Definition from OGP HSE Management – ‘Guideline for working together ina contract environment [25]’Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content4 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Mode 3 contract:Contractor operates within its own HSE MS that has no interfaceswith the EP Company HSE MS and is not required to report HSEperformance data including incidents to EP. However, this does notexclude the possibility that the EP Company may wish to guide andinfluence HSE performance under the contract.The HSE contract mode is assigned as follows:• Determine whether each activity within the contract scope is aWork Related Activity as defined by the Group (YG) ‘IncidentClassification, Investigation and Reporting’ [24, § 2.1];• For those Work Related Activities select the accountability forHSE management by assigning them as either Mode 1 or Mode;• Assign those activities, which are not Work Related as Mode 3;• Assign a contract mode based on the aggregated modesassigned to the activities in the contract scope taking intoaccount the numbers and significance of those activities andtheir HSE risks;• In mixed mode contracts identify and document those elementswith a mode different from the overall contract mode.Subcontracts shall also be assigned a mode, in which case thecontractor who subcontracts one or more of the scope elements isresponsible for assigning the mode to each subcontract according tothis Task.Task 3: Verify Contract Holder’s competenceFor Mode 1 or Mode 2 Medium HSE Risk or High HSE Riskcontracts verify the Contract Holder’s (CH) competence according toEP Specification ‘Contract Holder and CSR HSSE Competences’ [2]and their ability to execute their assigned tasks in this Procedure.Task 4: Select contract HSE clausesSelect HSE contract clauses based on:• Output from Task 1 (HSE risks of work activities); and• Output from Task 2 (mode of contract).Refer to SCM/C&P staff and consult with the relevant HSE Adviser(EP/Dir/Reg/OpCo) for guidance on the formulation of activityspecific clauses and technical requirements.Task 5: Identify eligible contractorsPrepare a list of eligible contractors:• List eligible contractors on the basis of historical experience orexpert judgment or as directed by JV agreements or localregulation;• Mode 1 or Mode 2 Medium HSE Risk or High HSE Riskcontracts - Eligible contractors who have not had their HSEcapability assessed within the last three years and who wish tobe considered shall complete and submit the questionnaire inEP Tool ‘Contractor HSE Capability Questionnaire’ [4];• Mode 1 or Mode 2 Low HSE Risk contracts - Eligible contractors’ability to manage the HSE risks associated with the contractwork scope and their historical HSE performance shall beevaluated and deemed acceptable. However they are exemptfrom the HSE capability assessment (see Tasks 6 - 9); the nextrelevant task for them is Task 10. This exemption may also beapplied at the discretion of the Contract Owner (CO) to MediumDoc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content5 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10HSE Risk contracts which are Mode 1 and have a restrictedscope of work (e.g. one or two person welding job or a one weekpainting job using scaffolding);• Mode 3 (L/M/H HSE Risk) contracts - Eligible contractors areexempt from the HSE capability assessment. The remainingTasks 6 -18 are not required.Task 6: Evaluate HSE capability questionnaireEvaluate contractors’ ‘HSE Capability Questionnaire’ [4] andassociated supporting documents.Task 7: Evaluate historical HSE performance• Evaluate the contractors’ HSE performance in previous work forEP Companies. Verify answers given in contractors’ HSEcapability questionnaire returns where possible, usinginformation from previous audit reports, contract closeoutreports, feedback forms, RFPs, CFPs and SCM/C&P staff.• Evaluate the contractors’ historical HSE statistics taking intoaccount the following:o The relevance of the data to the work locations and HSErisks of the activities within the contract scope;o The level and quality of near-miss/unsafe condition/unsafeact reporting and other pro-active indicators being trackedand reported;o Use 12 month rolling average data to avoid statisticalanomalies;o The severity of typical incident reportable cases [24, App. 1],total exposure hours and possible differences inperformance between Corporate, Regional and Localcontractor entities;o Treat internal Shell statistics as leading benchmarks, ifavailable. External statistics may be less specific to the EPBusiness than internal Shell statistics.Task 8: Evaluate the need for/execute an HSE MS audit/reviewFor contractors being considered for Mode 2 High HSE Riskcontracts conduct an HSE MS audit/review if little recent (less thanthree years old) independent information held at EP/Dir/Reg/OpColevel (e.g. audit reports) is available on their HSE capabilities.It is recommended that when the contract scope is significant interms of exposure hours or area of operations or contact with localstakeholders or impact on EP Company assets that this requirementis extended to Mode 2 Medium HSE Risk contracts.The HSE MS review/audit has three main objectives:1. To verify the completeness and degree of implementation of thecontractor’s HSE MS and identify where to supplement themonitoring of the contractor’s work.2. To provide the contractor with a deeper understanding of the EPCompany’s HSE MS requirements.3. To verify the contractor’s responses to the HSE CapabilityQuestionnaire [4].The HSE MS audits/reviews shall meet the following requirements:• Audit/review leader is nominated by the EP Company;Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content6 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10• Auditor(s) meet the HSE auditor competence criteria for InternalHSE Audits as defined in EP Specification ‘HSE AuditorCompetence Criteria’ [10, §4.2.3];• The Terms of Reference (TOR) for the HSE MS audit/review areto be based on [4];• Conducted on the contractor’s premises/sites;• Findings are discussed with the contractor and agreedimprovement actions should be included in the contractor’s HSEMS improvement plan(s);• The relevant CHs with RFP and/or CFP and HSE Advisersupport shall monitor the contractor’s follow-up of the HSE MSimprovement plan. If a contractor has multiple active EPCompany contracts the relevant CHs shall support thismonitoring along with their routine monitoring of their specificContract HSE Plan(s).Task 9: Band ContractorsAdjudicated scoring is a consolidation of the outputs from Tasks 6, 7and 8. The output is a score based on EP Specification ‘ContractorHSE Capability Points System’ [3]. This is not intended to be apurely quantitative process, but one where experience is brought tobear on the contractors’ responses:1. Based on [3] the contractors are banded on adjudicated scoresfor each question (based on max. points = 280). They arecategorised in red (or equal to 178 points) bands:• Red denotes ‘capability is below Company requirements’;• Amber denotes ‘capability conditionally meets Companyrequirements’;• Green denotes ‘capability unconditionally meets Companyrequirements’.2. Inform the contractors in writing of their stoplight banding.3. Document the results of the capability assessment including anyaudit/reviews and record or reference in the relevant SCMcontractor management database/system(s). Documentationshall include but not limited to:• Audit/review reports;• Responses to the HSE Capability Questionnaire [4] and theresults of applying the Contractor HSE Capability PointsSystem [3];• HSE performance data used for the capability assessment;• Stoplight band.4. Share the results of the HSE capability assessment acrossEP/Dir/Reg/OpCo as this will help to leverage best practicelearning and reduce effort/cost in performing contractor HSEcapability assessments.Note: Tasks 1 - 9 can be performed at the SCM category level whenestablishing umbrella/frame arrangements or a list of globallyapproved contractors.The RFP and/or CFP shall ensure that:• Umbrella/frame arrangements and/or approved contractorsmaintained at the category level meet the requirements of theEP HSE standards (EP2005-0000 suite of HSE ControllingDoc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content7 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Documents and any HSE requirements specific to theCategory/Region). The CFP and/or RFP shall be supported bydiscipline expertise at the EP/Regional level (e.g. HSE, Legal,Seismic, Wells, Projects) for the following:o Maintaining general and activity specific HSE clauses;o Performing HSE MS audits or reviews, to assess the HSEcapability of key contractors being assessed and approvedat the category Global or Regional level).If a CH plans to invite bids from a contractor on such an approvedlist maintained by the relevant RFP and/or CFP, Tasks 4 - 9 do nothave to be repeated for their specific contract unless the contractorhas not performed work for an EP Company for more than threeyears.Task 10: Define evaluation criteria, issue tender/bid or negotiate1. Red-banded contractor shall not be invited to tender/bid or enterinto negotiation if amber or green-banded contractors areavailable on the potential bid/negotiation list. Any deviations tothis rule shall be authorised by the relevant Tender Board (TB)and the justification shall be clearly documented in the TBmeeting minutes.2. Provide candidate contractors with access to the contractspecific HSE requirements, including the type of Contract HSEPlan to be prepared in draft.3. Provide candidate contractors the opportunity to assess forthemselves the HSE risks of the contract scope (e.g. site visits,access to EP Companies HSE risk assessments and requirethem as part of their submission to document how they willmanage the specific HSE risks of the contract as part of theirdraft Contract HSE Plan.4. Bid evaluation models shall make provision for additionalresources (e.g. supervision, training, equipment), which in theopinion of the CH are required for red and amber bandedcontractors to meet the HSE requirements of the contract.5. Bid evaluation models which are based on points/weightings forthe different evaluation aspects (e.g. commercial, technical,HSE) then the HSE element shall have a total contribution asfollows:• High HSE Risk contracts: Not less than 30%;• Medium HSE Risk contracts: Not less then 15%;• Low HSE Risk contracts: Not less than 5%.Deviations from these percentages shall be authorised by therelevant TB and the justification shall be clearly documented inthe TB meeting minutes.Task 11: Evaluate bids/offers & select contractor for awardMake the selection based on consolidation of commercial, technical,HSE and local aspects in line with [21] with the condition that acontract shall not be awarded to a red-banded contractor if an amberor green-banded contractor is available on the short list. Anydeviations to this rule shall be authorised by the relevant TB and thejustification shall be clearly documented in the TB meeting minutes.Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content8 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Execution(not required forMode 3 contracts)Task 12: Define and approve Contract HSE PlanThe contractor, in conjunction with the CH, prepares a documentedContract HSE Plan before contracted work is started:• For Mode 1 contracts the plan is owned by the CH with inputfrom the contractor and approved by the CO;• For Mode 2 contracts the plan is owned by the contractor withinput from the CH/CSR/HSE Adviser and approved by the CO;• This HSE Plan shall document the level of HSE risk in thecontract scope (including work in subcontractor yards andworkshops if they are Mode 1/2 activities) and document theinterface arrangements for HSE management between parties(e.g. contractor, subcontractors and EP Company) to ensurethat responsibilities for maintaining HSE controls are completeand understood;• The plan shall indicate those pre-start-up activities, which mustbe complete before contracted work may start, includingcommunicating the requirements of the Contract HSE Plan tothe relevant responsible parties;• The plan shall list conditions and circumstances that couldchange the HSE risk profile of the contract scope i.e. updatingthe HSE risk assessment from Low HSE Risk to Medium/HighHSE Risk.Specific requirements for HSE Plans depend on the contract modeand contract HSE risk as follows:1. Mode 2 Medium HSE Risk or Mode 2 High HSE Risk contracts:Document the HSE hazard/risk control requirements in aContract HSE Plan which provides a demonstration that the HSErisks of the contract hazards and effects are identified andreduced to as low as reasonably practicable (ALARP) inaccordance with [11] and EP Tool ‘HSE Plan Checklist for MajorContracts’ [5] and the following:• Identify subcontractors and categorises their HSE contractmode as Mode 1, Mode 2 or Mode 3;• Make reference to the relevant HSE MS or HSE Case(s) orEP Company project HSE Plan(s) to avoid unnecessaryduplication;• Include HSE improvement targets;• Include a periodic review (at least quarterly for red-bandedcontractors) of HSE improvement progress and performanceagainst Contract HSE Plan;• Include on-site HSE supervision by EP Company for redbandedcontractors. The CO shall approve deviations to thisrule.2. Mode 1 (Low/Medium/High HSE Risk) or Mode 2 Low HSE Riskcontracts:Document the HSE hazard and risk control requirements in aContract HSE Plan using EP Tool ‘Contract HSE Plan Checklistfor Small Contracts’ [6].Task 13: Execute pre-mobilisation and mobilisation activities1. The pre-start-up activities defined in the Contract HSE Plan shallbe verified complete prior to commencement of work.The issues covered by this step include:• Consortium partnership issues (cooperation of a leadingcontractor with one or more other specialised contractors);Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content9 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10• Actions to be completed prior to mobilisation;• Number and competence of HSE professionals;• The matrix below defines activities required during premobilisation,and mobilisation:Activity Mode 1/Mode 2Authorisation to startYesmobilisation/workKick-off meetingYesPre-mob/job inspections, YesMedium HSE Risk and HighHSE Risk contractsPre-mob/job inspections, Low Dependent upon size/HSE Risk contractscomplexity of contractStart-up Audits for Medium and Dependent upon size/High HSE Risk workcomplexity of contractEarly testing of contingency Yesplanning2. Hold a kick-off meeting to verify that the contractor's workforceand supervisors are aware of the relevant parts of the ContractHSE Plan including but not limited to:• Promoting the EP Companies commitment to HSE and thathealth and safety takes priority over other contractobjectives, KPIs and requirements;• Site hazards of the operation detailed in the scope of work;• Familiar with:o HSE working procedures;o Rules and regulations;o Alarms and signals;o Emergency communications and procedures.The meeting may be structured as an HSE workshop, withparticipation by both EP Company and contractor management.3. Conduct pre-mobilisation/job inspection(s), using the relevantparts of the Contract HSE Plan as a TOR.Conduct specialist review(s) (e.g. Shell Aircraft International airoperations reviews or STASCO vessel inspections) prior tomobilisation.4. Authorise the contractor to start mobilisation/work.5. Conduct HSE start-up audits as required:• For Mode 1 contracts, the need for an audit shall dependupon the size and complexity of the contract;• For Mode 2 contracts it is recommended to conduct an HSEstart-up audit in accordance with the relevant parts of the EPStandard ‘HSE Auditing’ [9] if such contracts are:o High HSE Risk; oro Medium HSE Risk, which are complex operations ormanaged by contractors new to EP/Dir/Reg.6. Ensure inspection and audit findings are followed-up, closed andsubject to the following:• Serious/High findings [24, §5]:Contractor or the EP Company shall take corrective actionsbefore the relevant parts of the work can commence;• Medium/Low findings [24, §5]:Contractor or the EP Company shall take corrective actionDoc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content10 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10but this may be allowed to take place in parallel withinitiating the execution phase.Further guidance on Steps 1 to 3 above can be found in §6.1, 6.2and 6.3 of OGP HSE Management – ‘Guidelines for workingtogether in a contract environment’ [25].Task 14: Monitor implementation of the Contract HSE Plan andsteer performance improvement during the contractThe CH/CSR/Contract User to be visible in promoting the EPCompanies commitment to HSE (e.g. attending HSE talks andmeetings and regularly re-enforcing that health and safety takepriority over other contract objectives).The CSR/Contract User shall assist the CH in monitoring the day-todayimplementation of the Contract HSE Plan including closeout ofagreed actions, HSE performance, and any changes in the HSE riskprofile of the current and future activities within the contract scope:1. For Mode 1 contracts: The CH/CSR/Contract User supervisesthe contractor and is directly responsible for the effectiveimplementation of the Contract HSE Plan.2. For Mode 2 Contracts: The CH/CSR/Contract User isresponsible to verify and monitor the contractor.3. For both Mode 1 and Mode 2 contracts: The CSR/Contract Userverifies the agreed handover procedures are implemented forcrew changes.Demonstrate that the HSE MSs of contractors (includingsubcontractors) are subject to continuous improvement in the courseof project execution, which shall include, if applicable, monitoring thecontractor’s follow-up of actions agreed at the SCM category level.Analyse/Improve(not required for Mode 3contracts)Task 15: Sharing learning and good practice (contractor HSEforums)Hold periodic forum sessions for contractors, grouped by SCMCategory or by project, which are executing Medium HSE Risk orHigh HSE Risk contracts in order to:• Share learning and best practices;• Address contractor interface issues;• Conduct HSE performance self-assessments.Task 16: Report to the Tender BoardReview at least annually with the Tender Board or equivalent thesignificant changes in stoplight bands of contractors involved withMedium HSE Risk contracts or High HSE Risk contracts. Use thesereviews to discuss issues and strategies and obtain guidance fromsenior management, and to obtain benchmarks from SCMdatabases.Task 17: Steer HSE performance improvementsThe CH steers HSE performance improvement during the contract,while the HSE Adviser annually updates and reviews with theCH/CO and GCM/CFP the stoplight bands of the current portfolio ofcontractors in order to recognise and improve performance. Forexample, performance improvement can be recognised by a specialletter, sustained good performance by a plaque, etc.Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content11 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10If a contractor has not performed work for an EP Company for morethan three years a full HSE capability assessment shall be repeated(i.e. Tasks 1 - 9 of this Procedure) relevant to the contract(s)scope(s) for which they are being assessed.Note: This step shall also be repeated at the EP level for thoseinternational contractors who work in several EP contract categoriesand for those international contractors working in a single EPcontract category (e.g. geophysical acquisition, drilling rigs).Task 18: Closeout of contract1. For Medium HSE Risk and High HSE Risk contracts prepare adocumented report of the HSE performance throughout theproject, including lessons learnt. The report should be followedup with face-to-face review meetings with the ContractorRepresentative who shall agree/sign-off on the report, notingthose aspects not agreed.RecordsEnter this final closeout report into the relevant contractordatabases.2. For Low HSE Risk, Medium HSE and High HSE Risk contractsenter the HSE performance data into the relevant contractordatabases.For the different stages in the SCM process, minimum HSE recordkeeping shall include the following:Record/DocumentPlanning:Contract scope risk assessmentrecordsOwner/CustodianCO -IT systemContractor HSE performance feedback HSE FountainHSE Capability Questionnaires [4] and SCM -associated documentsActivity HSE risk assessment record CO -Categorisation (stoplight) record SCM -ExecutionOriginal contracts and contractmanagement plansIncl. Contract HSE PlanSCM -Reports on contractor HSECO -performanceMinutes of meeting with contractor CH -Analyse/ImproveHSE performance records HSE FountainContent of contractor databases SCM e.g. FPALRecords shall be retained for at least three years after the expirationdate.Doc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content12 of 13Printed copies are uncontrolled.

EP2005 Volume 1HSE ProcedureContractor HSE Management(including Stoplight)RestrictedEP2005-0110-PR-10Related ControllingDocuments No. Title Reference[1] EP Standard ‘Contractor HSE EP2005-0110-STManagement’[2] EP Specification ‘Contract Holderand CSR HSSE Competences’EP2005-0110-SP-01[3] EP Specification ‘Contractor HSECapability Points System’EP2005-0110-SP-02[4] EP Tool ‘Contractor HSE CapabilityQuestionnaire’EP2005-0110-TO-80[5] EP Tool ‘HSE Plan Checklist forMajor Contracts’EP2005-0110-TO-81[6] EP Tool ‘HSE Plan Checklist forSmall Contracts’EP2005-0110-TO-82[7] EP Specification ‘EP2005 HSE EP2005-0103-SP-01Roles and Responsibilities’[8] EP Standard ‘HSE ControlEP2005-0140-STDocumentation Management[9] EP Standard ‘HSE Auditing’ EP2005-0180-ST[10] EP Specification ‘HSE Auditor EP2005-0180-SP-03Competence Criteria’[11] EP Standard ‘Hazards and EffectsManagement Process’EP2005-0300-STNote:EP Specification ‘HSE Contract Modes’ has been removed; seeRevision Information for further information.Other references No. Title Reference[21] EP Business Model Process.13 SWW‘Manage Supply Chain – GlobalCategory Management’ (EPBM v4).[22] EP Supply Chain Management Key SWWRoles; Version 5, June 2003[23] Group (YG) 3 ‘Risk Assessment SWWMatrix’ (RAM); 2006[24] Group (YG) 3 ‘IncidentSWWClassification, Investigation andReporting’; February 2002[25] OGP HSE management –‘Guideline for working together in acontract environment’; Report No.6.64/291; September 1999WWW3 Group Yellow Guide, issued by the Health, Safety and EnvironmentAdvisers PanelDoc. No:EP200406372810Version:2Date:30 August 2006Org. Doc. No: EP2005-0110-PR-10Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content13 of 13Printed copies are uncontrolled.

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EP2005 Volume 1HSE SpecificationContract Holder and CSR HSSECompetencesRestrictedEP2005-0110-SP-01SPECIFICATION: CONTRACT HOLDER AND CSR 1 HSSECOMPETENCES 2This HSE document may set requirements supplemental to applicable law. However,nothing herein is intended to replace, amend, supersede or otherwise depart from anyapplicable law relating to the subject matter of this HSE document. In the event of anyconflict or contradiction between the provisions of this HSE document and applicable lawas to the implementation and governance of this HSE document, the provisions ofapplicable law shall prevail.This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSEControlling Documentation Management’ [4].0. Revision InformationFirst issue in EP Business HSSE Control Framework.1. SCOPEThis Specification sets the HSSE management competences for the roles of Contract Holder(CH) and Company Site Representative (CSR) for contracts with Medium HSE Risks and HighHSE Risks in the EP Business.Individual positions (jobs) that include a CH or CSR role have an associated Job CompetenceProfile (JCP) (Shell People [11] or equivalent HR system), which specifies the Technical,Personal, Business, Leadership and Contracting & Procurement competence requirements andproficiency levels for that position. This document does not change these requirements.2. External RequirementsExternal requirements set by regulatory bodies and / or contractual parties may supersede anyrequirement stated in this Specification. These shall be identified on a country-by-country basisas projects or operations are being established.3. External ReferencesNone.4. EP SPECIFICATION4.1 DefinitionsItalicised terms within this Specification are defined in the Group (YG) ‘Competence Assuranceof HSSE Critical Positions’ [10] and EP Specification ‘EP2005 HSSE Glossary of Definitions’ [2].4.2 RolesContract HoldersEP Standard ‘Contractor HSE Management’ [1] stipulates that CHs roles are deemed to beHSSE critical for Medium HSE Risks and High HSE Risk contracts only and are subject to therequirements of the EP Standard ‘Competence Assurance of HSSE Critical Positions’ [3].1 Company Site Representative2 For Medium HSE Risk and High HSE Risk contractsDoc. No.:EP200506208772Version:1Date:30 August 2006Org. Doc. No.: EP2005-0110-SP-01Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content1 of 3Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContract Holder and CSR HSSECompetencesRestrictedEP2005-0110-SP-01Company Site RepresentativesEP Standard ‘Contractor HSE Management’ [1] does not stipulate that CSRs roles are deemedto be HSSE critical, but where the HSE Management System (HSE MS) or HSE Case doesidentify this, then the competence requirements of this Specification and EP Standard‘Competence Assurance of HSSE Critical Positions’ [3] are to be applied.4.3 Competence RequirementsThe competence of CHs and CSRs (where applicable) shall be assured according to [3] for allcontracts within the scope of this Specification. CHs and CSRs are required to have at least theHSSE management competences proficiency levels as specified in Table 4.3.1.Table 4.3.1 HSSE Management Competence Requirements for CHs and CSRsCode Competence Element Proficiency Level forCHs forMedium/High HSERisk contractsrequire:CSRs for Medium/High HSE Riskcontracts require:HSE 1.0 HSSE Leadership and Commitment Knowledge KnowledgeHSE 2.0 HSSE Policy and Strategic Objectives Knowledge KnowledgeHSE 3.0 Organisation, Responsibilities, Resources & HSSE SkillSkillRequirementsHSE 4.1 HSSE Risk Management Framework Knowledge* KnowledgeHSE 4.2 HEMP for Significant Risks/HSE Cases Knowledge KnowledgeHSE 4.3 Emergency Response Knowledge KnowledgeHSE 4.4 Safe Systems of Work/Personal Safety Skill SkillHSE 5.0 HSSE Planning and Procedures Skill KnowledgeHSE 6.1 HSSE Performance Management Knowledge KnowledgeHSE 6.2 Incident classification, Investigation and Reporting Knowledge KnowledgeHSE 7.0 HSSE Audit Knowledge KnowledgeHSE 8.0 HSSE Management Review Knowledge Awareness*HSE 4.1 KnowledgeThe asterisk is to confirm that CHs require more than a Knowledge proficiency level.Hence, CHs are required to be able to demonstrate the skill to ‘Provide structured support for thesystematic application of HEMP to HSSE risks through establishing systematic HSSEmanagement to maintain compliance with HSSE requirements and continuous performanceimprovement’.A number of approved standard EP JCPs were identified as applicable for the Level 2 HSSECritical Positions, and therefore these JCPs were developed to contain the requisite HSSEcompetences. If the HSSE competences of the applicable JCP are less than those stated inTable 4.3.1, they shall be raised to meet the appropriate level.A person who is to be appointed as a CH or CSR for a Medium HSE Risk or High HSE Riskcontract shall have the relevant technical discipline competences required for managing the typeof work performed under the contract. This shall be included as part of their JCP, or otherwiseassessed and assured by the Contract Owner as being appropriate for the person to managethe work.No person should be appointed as CH or CSR unless their HSSE management competenceprofile satisfies the requirements set out in Table 4.3.1. If, and for as long as, this requirement isnot satisfied then additional supervision or support by persons whose competence profile doessatisfy the requirements set out in Table 4.3.1 shall be provided. The Contract Owner shallapprove the adequacy of these support provisions.Doc. No.:EP200506208772Version:1Date:30 August 2006Org. Doc. No.: EP2005-0110-SP-01Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content2 of 3Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContract Holder and CSR HSSECompetencesRestrictedEP2005-0110-SP-014.4 Safe Systems of Work/Personal Safety CompetencesThe HSSE profile in Table 4.3.1 for CHs and CSR roles requires the Skill proficiency level in‘Safe Systems of Work/ Personal Safety’. To do so persons in these roles shall be able to carryout consistently the significant majority of the activities listed below to the required standard:‘Use structured tools and techniques to control physical work activities, which have associatedHSSE hazards:• Identify, assess and record workplace hazards;• Identify the controls necessary to ensure that work can be undertaken with risk at As Low AsReasonably Practicable;• Manage interfaces with concurrent work activities to avoid conflicts;• Conduct site safety checks and audits;• Integrate the safe system of work in the work procedures and planning process includingchanges to work;• Implement safe work systems (e.g. Job Hazard Analysis; Permit To Work);• Provide advice on personal safety controls required for legal /regulatory compliance;• Monitor and implement changes to personal safety requirements (e.g. regulatory changes).’ 3These competences needs to be determined in relation to the activities of the work as performedunder the contract and may require specific training in these.5. EP REFERENCES# Title Number[1] EP Standard ‘Contractor HSE Management’ EP2005-0110-ST[2] EP Specification ‘EP2005 HSSE Glossary of Definitions’ EP2005-0100-SP-01[3] EP Standard ‘Competence Assurance of HSSE Critical Positions’ EP2005–0120-ST[4] EP Standard ‘HSE Controlling Documentation Management’ EP2005-0140-ST6. OTHER REFERENCES# Title Number[10] Group (YG) ‘Competence Assurance of HSSE Critical Positions’; 2004 SWW[11] Shell People SWW3 Extract from ‘Safe Systems of Work/ Personal Safety’ in [10]Doc. No.:EP200506208772Version:1Date:30 August 2006Org. Doc. No.: EP2005-0110-SP-01Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content3 of 3Printed copies are uncontrolled

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EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-02SPECIFICATION: CONTRACTOR HSE CAPABILITYPOINTS SYSTEMThis HSE document may set requirements supplemental to applicable law. However,nothing herein is intended to replace, amend, supersede or otherwise depart from anyapplicable law relating to the subject matter of this HSE document. In the event of anyconflict or contradiction between the provisions of this HSE document and applicable lawas to the implementation and governance of this HSE document, the provisions ofapplicable law shall prevail.This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSEControl Documentation Management’ [4].0. Revision InformationAligned with EP2005 Tool ‘Contractor HSE Capability Questionnaire’.1. ScopeAll contractors being considered for Mode 1 Medium HSE Risk or High HSE Risk or for Mode 2Medium HSE Risk or High HSE Risk contracts shall have their capability to manage the HSErisks associated with the activity assessed, including the maturity of their HSE ManagementSystem.Contractors being considered for contracts classified as Low HSE Risk or Mode 3 (L/M/H HSERisk) do not require an HSE capability assessment.2. External RequirementsLocal legislative requirements may state requirements regarding the relationship between theEP Company and the contractor regarding the accountability for HSE management andreporting. Each EP Company shall identify such requirements and comply with them.3. External References• OGP HSE Management – Guidelines for working together in a contract environment;• ISO 14001 Environmental Management Guide.Doc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content1 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-024. EP SpecificationOther than blue text underlined in italics the content in this EP Specification is identical to theApp. IV to the ‘OGP HSE Management – Guidelines for working together in a contractenvironment’ [5, App. 4].This Specification describes the scoring methodology associated with EP Tool ‘Contractor HSEcapability questionnaire’ [3].4.1 Contractors’ evaluationThe contractors’ capability to manage HSE shall be evaluated by attaching a score to theselected response for each category using [3].A B C DHSE Plan documentation (sections 1-5, 7, 8)0 3 6 10Performance and experience factors (HSE incidents) [Section 6]0 7 14 20Elements scoring 0 should normally disqualify a contractor from further consideration. Anyelements rated so must be highlighted as a qualification on the tender if it is still to beconsidered.Table 1: Rating of Contractors’ HSE capability by a point scoring systemA B C DSection 1: Leadership and CommitmentCommitment to HSE through leadership: item 1 [i]No commitmentfrom seniormanagementHSE disciplinesdelegated to linemanagers – no directinvolvement by seniormanagementEvidence of activesenior management inHSE aspectsEvidence of a positive HSEculture in seniormanagement and at all levelsSection 2: Policy and strategic objectivesHSE policy documents and availability of policy statements to employee: items 2 [i] and 2 [ii]No written HSEpolicyA policy statementexists but not in awidely distributeddocumentHSE policyestablishesresponsibility for HSE,but not widelydistributedPolicy with clearlyestablished responsibilityand accountability; it isdistributed to all employees;and is visible on noticeboardsDoc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content2 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-02A B C DSection 3: Organisation, responsibilities, resources, standards and documentationOrganisation - Commitment and Communication: item 3 [i]NonePeriodic HSEmeetings for specialoperations onlyHSE meetingsperformed on aregular basis atmanagement andsupervisor levelIn addition to C, employeesare assigned to discuss on arational basisCompetence and Training of manager/supervisors/ senior site staff/HSE Advisers item 3 [ii]No specialized stafftrainingHSE training assignedto a specific person onlocationHSE training appliedto management butnot comprehensivelycoveredHSE training given formallyto all relevant staff on theirrespective responsibilitiesCompetence and General HSE training: item 3[iii] [a]-[d]No formalprogrammeVerbal instruction oncompany proceduresonlyEmployee handbookprovided andsupervisor outlines,explains anddemonstrates newemployee’s jobAll under ‘C’ together withfollow-up observation of thenew employee’s work is alsoincluded. Employee hasexplained to him safepractices and emergencydutiesSpecialised training and additional training for HSE qualified staff: items 3 [iv] [a], [b] and 3[v]No HSE trainingestablishedOn-site basic trainingconductedoccasionallyHSE training is givenfor specializedoperations, but noroutine conductedFormal HSE trainingprogrammes have beendeveloped in all areas andare conducted on a regularbasis. Retraining periods areestablishedAssessment of suitability of subcontractors/other companies: items 3[vi] [a]-[c]No writtenarrangementsWritten arrangementsin place for basic HSEmatters onlyHSE arrangementsincorporated in HSEmanual but not in aformat which isdistributed to allemployeesHSE arrangements exist inhandbook form, distributedto all employees,Subcontractors,Subcontractor employeesand are enforced. Follow-upaudits held withdiscussion/feedback tomanagement and employeesStandards: items 3 [vii] [a]-[c]No HSE standardsavailableBasic HSE standardsexistContractor has writtenHSE standards tocover all hazardousoperationsContractor has a system ofspecifying, monitoringcompliance and updatingstandardsDoc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content3 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-02A B C DSection 4: Hazards and effects managementHazards and Effects Assessment: item 4[i]Company’s HSEsystem does notinclude hazards andeffects managementCompany’s HSEsystem makesreference to the needto assess hazards andeffects but has nocomprehensivestructure to carry thisoutExposure of the workforce: item 4 [ii]Company does notactively advise theworkforce normonitor exposureCompany advises theworkforce of the majorhazards that they arelikely to be exposed tobut only monitorsexposure randomlyCompany’s HSEsystem includesmethods for theassessment of majorhazards and effectsCompany has formalmethods formonitoring exposureto the major hazardsCompany’s HSE system hasa comprehensive set ofmethods for the assessmentof all HSE hazards andeffects and applies them toall of its contracts withdocumentationCompany has a set offormal methods formonitoring exposure to allforeseeable hazards (linkedto its hazard and effectsassessment method) andapplies them to all contractsHandling of chemicals (chemical, physical and biological hazards such as noise, radiation,vapours, fumes, temperature extremes, etc.): item 4 [iii]Company makes nospecial provision foradvising theworkforce aboutproperties ofpotential hazardsCompany providesinformation toworkforce in theworkplace onproperties of potentialhazards but has noactive follow-upPersonal protective equipment: item 4 [iv]Basic PPE providedto personnel but nocorporate procedurefor assessingindividual needsWaste management: item 4 [v]Company has noformal methods forthe control of wastePPE requirementsformally assessed butlittle effort made toensure correct usageCompany has generalprocedures for wastedisposalCompany distributesinformation toindividual in theworkforce at start oftheir involvement onsitePPE requirementsformally assessedwith spot checks onusageCompany hasprocedures for thedisposal of each ofthe main categories ofsite wastes but makesno provision forminimizingenvironment impactCompany maintains adatabase of the propertiesof all potential hazardsencountered in its contractsand has formal methods ofinformation distribution to allpersonnel and trains itsworkforce in handling, etc.Procedures in place toassess all PPErequirements monitor andenforce usage andreplacement needs. Stockinventories monitored, keptabove demand levels,Training in use providedwhere neededCompany has a formalsystem for wastemanagement (includingidentification, minimizationand classification), whichactively seeks to minimizeenvironmental impactDoc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content4 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-02A B C DSection 5: Planning and ProceduresHSE or operations manuals: item 5 [i] [a] & [b]No HSE proceduresavailableBasic HSE proceduresexistEquipment control and maintenance: item 5[ii]No definedprogramme toidentify or evaluatehazardous practicesand equipmentconditionsPlan relies on outsidesources, i.e. companyinspections. Supervisoryinspection of equipmentconfined to worksitepersonnel onlyRoad safety management: item 5 [iii]No special attentionpaid to road safetyas an area ofhazardous activitiesImportance of roadsafety acknowledged butleft to core businessmanagers/supervisors toenact individuallyContractor has writtenHSE procedures tocover all hazardousoperationsA written programmeoutlining supervisoryguidelines,responsibilities,frequency and followupis in effectCompany has ageneral managementstrategy with someprocedures for itscomponent issuesContractor has proceduresto cover all HSEprecautions, typicalcontractor HSE Planrequirements with a systemof updating anddissemination toemployeesIn addition to C, periodicinspections conducted bytop management or byteams of specialistsCompany has a completestrategy and set of plansand procedures coveringvehicles, drivers andoperations management.Doc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content5 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-02A B C DSection 6: Implementation and performance monitoringManagement and performance monitoring of work activities and HSE performance achievementawards: items 6 [i] & 6 [ii]No system forformally monitoringHSE performancePerformancemonitoring in a fewareas carried outCompany has asystem for monitoringHSE performance inkey areasCompany has acomprehensive system formonitoring performance inall areas with feedback toemployees for improvementand has received awards forachievementStatutory notifiable incidents, dangerous occurrences and improvement requirements andprohibition notices: items 6 [iii] and 6 [iv]More than oneoccurrence of majorincident in last fiveyearsOne occurrence of amajor incident in thelast five yearsOccurrences relate tominor incident(s) onlyNo occurrence in the lastfive yearsHSE performance records (latest year injury rate comparison to Contractor’s three precedingyears average): items 6[v] [a]-[d]Contractor suppliedinsufficientRate is not improvingCriteria for absolute performanceRate over 200 percent that of companyRate under 200 percent that of companyIncident investigation and reporting: item 6 [vi] [a]-[c]Findings notgenerallycommunicatedFindingscommunicated to keypersonnel only vialimited companyinternal memo orsimilar mediaShows only minor rateimprovementRate under 120 percent that of companyFindingscommunicated to allemployees via specificcompany noticeRate steadily improving bymore than 20 per cent peryearRate better than that ofcompanyAs in C with the addition ofdetails of implication forimprovement HSEperformanceDoc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content6 of 7Printed copies are uncontrolled

EP2005 Volume 1HSE SpecificationContractor HSE CapabilityPoints SystemRestrictedEP2005-0110-SP-02A B C DSection 7: Auditing and ReviewAuditing: item 7 [i] [a]-[c]Audit process iscursory only - HSEdocuments are notexplicit aboutauditingCompany HSEdocuments includereference to auditingbut there are nospecific details aboutscheduling andcoverageSection 8: HSE Management - Additional featuresCompany HSEdocuments includedetails of how auditing isto be implemented withschedules/coverage forthe key areasAs in C but additionallyspecifies management’s rolein audit and follow-up onaction itemsMembership of Association and additional features of your HSE Management: items 8 [i] and [ii]No membershipsCompany hasmembership of atleast one associationbut with noprominence given toHSECompany is a memberof at least one HSEassociationCompany is an activeparticipant in at least oneHSE association5. EP and External References# Title Number[1] EP Standard ‘Contractor HSE Management’ EP2005-0110-ST[2] EP Procedure ‘Contractor HSE Management (inc stoplight)’ EP2005-0110-PR-10[3] EP Tool ‘Contractor HSE Capability Questionnaire’ EP2005-0110-TO-80[4] EP Standard ‘HSE Control Documentation Management’ EP2005-0140-ST[5] OGP HSE Management ‘Guidelines for working together in acontract environment’; 1999.WWWDoc. No.:Version:EP200407200116 2Org. Doc. No.: EP2005-0110-SP-02Date:30 August 2006Custodian:EPS-HSEECCN: Not subject to EAR Page:No US content7 of 7Printed copies are uncontrolled

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EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80Tool:Contractor HSE Capability QuestionnaireReferences• OGP HSE Management ‘Guidelines for working together in a contract environment’• EP Specification ‘Contractor HSE Capability Points System’Other than the blue text underlined in italics the content in this EP Tool is identical to Appendix III ofthe ‘OGP HSE Management – Guidelines for working together in a contract environment’.1. General guidelines for preparation of questionnaire• The questionnaire should cover the information required to assess the extent to which HSE andits management are organised by the Contractor.• The Contractor should be advised to cover all (including support) relevant activities and not justthose conducted on company sites.• The questionnaire should be validated by a responsible Contractor line manager prior tosubmission.• Emphasis should be placed on the need for complete answers substantiated by supportingdocumentation as far as is practicable. Responses and any supporting documentation mustrelate specifically to the policy and organisational arrangements of the company that would bethe signatory of any contract.• Submissions should be assessed by the scoring mechanism defined in EP Specification‘Contractor HSE Capability Points System’.• If necessary, follow-up discussion with the Contractor's management may be needed.• The Contractor should be encouraged to identify where he exceeds company requirements andthis excellence should be recognised.2. Questionnaire for Contractor HSE Capability AssessmentSection 1(i)Leadership and commitmentCommitment to HSE through leadershipa) How are senior managers personally involved in HSE management?b) Provide evidence of commitment at all levels of the organisation?c) How do you promote a positive culture towards HSE matters?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content1 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80Section 2(i)Policy and Strategic ObjectivesHSE policy documentsa) Does your company have an HSE policy document? If the answer is YES pleaseattach a copy.b) Who has overall and final responsibility for HSE In your organisation?c) Who is the most senior person in the organisation responsible for this policy beingcarried out at the premises and on site where his employees are working? Providename, title and experience.(ii)Availability of policy statements to employeesa) Itemise the methods by which you have drawn your policy statement to the attentionof all your employees?b) What are your arrangements for advising employees of changes in the policy?Section 3(i)Organisation, Responsibilities, Resources, Standards and DocumentationOrganisation - commitment and communicationa) How is management involved in HSE activities, objective-setting and monitoring?b) How is your company structured to manage and communicate HSE effectively?Provide your company organogramc) What provision does your company make for HSE communication meetings?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content2 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80(ii)Competence and Training of managers/ supervisors/senior site staff/ HSEadvisersHave the managers and supervisors at all levels who will plan, monitor, oversee andcarry out the work received formal HSE training in their responsibilities with respect toconducting work to HSE requirements?If YES please give details. Where the training is given in house, please describe thecontent and duration of courses.Provide competence/training matrix(iii)Competence and General HSE traininga) What arrangements does your company have to ensure new employees haveknowledge of basic industrial HSE, and to keep this knowledge up to date?b) What arrangements does your company have to ensure new employees also haveknowledge of your HSE policies and practices?c) What arrangements does your company have to ensure new employees have beeninstructed and have received information on any specific hazards arising out of thenature of the activities? What training do you provide to ensure that all employees areaware of company requirements?d) What arrangements does your company have to ensure existing staff HSEknowledge is up to date? (If training is provided in-house please give details ofcontent)e) What arrangements does your company have to ensure job competency for thosejobs involved in managing HSE hazards and risks.(iv)Specialised traininga) How have you identified areas of your company's operations where specialisedtraining is required to deal with potential hazards? (Please itemise and provide detailsof training given).b) If the specialised work involves radioactive, asbestos removal, chemical or otheroccupational health hazards, how are the hazards identified, assessed andcontrolled?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content3 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80(v)HSE qualified staff - additional trainingDoes your company employ any staff who possess HSE qualifications that aim toprovide training in more than the basic requirements?(vi)Assessment of suitability of Subcontractors/ other companiesa) How do you assess:i) HSE competence?ii) HSE record of the Subcontractors and companies with whom you place contracts?b) Where do you spell out the standards you require your Contractors to meet?c) How do you ensure these standards are met and verified?(vii)Standardsa) Where do you spell out the HSE performance standards you require to be met?b) How do you ensure these are met and verified?c) How do you identify new industry or regulatory standards that may be applicable toyour activities?d) Is there an overall structure for producing, updating and disseminating standards?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content4 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80Section 4(i)Hazards and Effects ManagementHazards and effects assessmentWhat techniques are used within your company for the identification, assessment,control and mitigation of hazards and effects?(ii)Exposure of the workforceWhat systems are in place to monitor the exposure of your workforce to chemical orphysical agents?(iii)Handling of chemicalsHow is your workforce advised on potential hazards (chemicals, noise, radiation, etc.)encountered in the course of their work?(iv)Personal protective equipmentWhat arrangements does your company have for provision and upkeep of protectiveequipment and clothing, both standard issue, and that required for specialisedactivities?(v)Waste managementWhat systems are in place for identification, classification, minimisation andmanagement of waste?(vi)Drugs and alcoholDo you have a drugs and alcohol policy in your organisation? If so, does it includepre-employment and random testing?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content5 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80Section 5(i)Planning and ProceduresHSE or operations manualsa) Do you have a company HSE manual (or Operations Manual with relevant sectionson HSE) that describes in detail your company approved HSE working practicesrelating to your work activities? If the answer is YES please attach a copy ofsupporting documentation.b) How do you ensure that the working practices and procedures used by youremployees on-site are consistently in accordance with your HSE policy objectivesand arrangements?(ii)Equipment control and maintenanceHow do you ensure that plant and equipment used within your premises, on-site, or atother locations by your employees are correctly registered, controlled and maintainedin a safe working condition?Provide a short overview of your preventative maintenance system.Is HSE Critical equipment specifically identified and included in your preventativemaintenance system?(iii)Road Safety ManagementWhat arrangements does your company have for combating road and vehicleincidents?Section 6(i)Implementation and Performance MonitoringManagement and performance monitoring of work activitiesa) What arrangements does your company have for supervision and monitoring ofperformance?b) What type of performance criteria are used in your company; give examples?c) What arrangements does your company have for passing on any results and findingsof this supervision and monitoring to your:• Base management?• Site employees?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content6 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80(ii)HSE performance achievement awardsHas your company received any award for HSE performance achievement?(iii)Statutory notifiable incidents /dangerous occurrencesHas your company suffered any statutory notifiable incidents in the last five years(safety, occupational health and environmental)? (Answers with details includingdates, country, most frequent types, causes and follow-up preventative measurestaken).(iv)Improvement requirement and prohibition noticesHas your company suffered any improvement requirement or prohibition notices bythe relevant national body, regulatory body for HSE or other enforcing authority orbeen prosecuted under any HSE legislation in the last five years? (If your answer isYES please give details).(v)HSE performance recordsa) Have you maintained records of your incidents and HSE performance for the last fiveyears? (If YES, please provide the following: Number of Fatalities, Lost Time Injuries,Lost Workday Cases. Medical Treatment Cases and Restricted Work Day Cases.Also include the Fatal Accident Rate, Lost Time Injury Frequency and TotalRecordable Incident Rate (TRCF) for each year. (NOTE: Please include yourcompany definitions of the above-mentioned terms for clarification refer to the OGPSafety Performance Accident Data Report).b) How is health performance recorded?c) How is environmental performance recorded?d) How often is HSE performance reviewed? By whom?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content7 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80(vi)Incident investigation and reportinga) Who conducts incident investigations?b) How are the findings following an investigation, or a relevant incident occurringelsewhere, communicated to your employees?c) Are near miss safety learning reported?Section 7(i)Auditing and ReviewAuditinga) Do you have a written policy on HSE auditing?b) How does this policy specify the standards for auditing (including unsafe act auditing)and the qualifications for auditors?c) Do your company HSE Plans include schedules for auditing and what range ofauditing is covered?d) How is the effectiveness of auditing verified and how does management report andfollow up audits?Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content8 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

EP2005 Volume 1HSE ToolContractor HSE CapabilityQuestionnaireRestrictedTool EP2005-0110-TO-80Section 8(i)HSE Management - Additional FeaturesMemberships of AssociationsDescribe the nature and extent of your company's participation in relevant industry,trade, and governmental organisations?(ii)Additional features of your HSE managementDoes your company have any other HSE features or arrangements not describedelsewhere in your response to the questionnaire?Section 9Company Specific InformationDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content9 of 9Printed copies are uncontrolledEP20040720148/Tool EP2005-0110-TO-80, Version 01

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EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Tool:HSE Plan Checklist for Major Contracts(Mode 2 Medium HSE Risk and High HSE Risk Contracts)Other than the blue text underlined in italics the content in this EP Tool is identical to Appendix V of the‘OGP HSE Management – Guidelines for working together in a contract environment’.1. HSE Plan Definition GuidelineWhen the contracted activities are covered by a contractor HSE Management System (e.g. in line withthe E&P Forum guidelines on HSE Management Systems), including HSE Cases for contractedinstallations, the HSE Plan should only address those issues that are unique for the contract underconsideration. It should focus on contract specific risks and the management of controls to eliminate,reduce or mitigate these risks.Other contract specific issues that may be addressed in the plan are:• Organisation and personnel for the project;• Project specific procedures;• Project audit and review plan;• Compliance with local rules and legislation.The checklist in Tables 3.1 to 3.7 can be used as a tool to check the HSE plans for the project specificissues, but can also be used to assess the HSE Management System if this has not been certified orassessed in any other manner.When the contractor does not have an HSE Management System, the HSE Plan should be developedin line with the principles of the E&P Forum guidelines for HSE Management Systems or othercomparable guidelines. The HSE Plan should follow principal headings with an expansion into keychecklist items (Tables 3.1 to 3.7) given on the following pages under the respective headings. Thedetail included in the tender should be in keeping with the complexity of the contract and shouldadditionally include prompts for specific action plans, target dates and action parties.Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content1 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-812. HSE Management SystemSection 1 - Leadership and commitment• Leadership and CommitmentSection 2 - Policy and strategic objectives• HSE Policy StatementSection 3 - Organisation, responsibilities, resources, standards and documentation• HSE Organisation• HSE Professionals• Subcontractors• HSE Communications• HSE meeting programme• HSE promotion and awareness• HSE competence requirements• Employee orientation programme• HSE training (general)• HSE training (professionals)• HSE legislation• HSE standardsSection 4 - Evaluation and risk management• Methods and procedures for hazards and effects management• Assessment of exposure of the workforce to hazards and effects• Material data sheets for safe handling of chemicals• Hazards and effects management and the assessment of PPE requirements• Methods and procedures for waste managementSection 5 - Planning and procedures• HSE procedures• Basic HSE rules• Emergency response procedures• HSE equipment and equipment HSE inspection• Occupational health• Environmental• Road transportSection 6 - Implementation and performance monitoring• HSE performance general• Incident investigationSection 7 - Auditing and review• HSE auditingDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content2 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-813. Detailed checklists for HSE planTable 3.1: Checklist for HSE planSection 1 - Commitment to HSE aspects through leadershipSenior management should engender commitment to HSE issues at all levels through their personal style ofleadership and management. Key elements include:• Visible expressions of commitment by senior people• HSE matters should be placed high on personal and collective agenda• All senior managers should set a personal example to others. They should be, and seen to beactively involved in HSE matters, e.g. attendance at HSE meetings, personal instigation of HSEaudits and reviews, etc.• A feedback system should be established to encourage and facilitate employee feedback on HSEmatters• A positive culture should be promoted at all levels• Policies and standards should be endorsed and implemented at the local levelTable 3.2: Checklist for HSE planSection 2 - Policy and Strategic ObjectivesGeneralHSE policy statement:• Written HSE policy• Dated and signed by Chief ExecutivePolicy statements:• Specific to individual parts of the contract (e.g. locations/sites/plants)• Cover specialised aspects (e.g. alcohol and drugs)• Consistent with company guidelines• Clear, concise and motivatingContent• Importance of HSE as a contract objective• Incidents and injuries are unacceptable• HSE established as a line management responsibility• Right and duty of staff to intervene with unsafe acts and conditions• Everyone is responsible for their own and their colleagues' HSE at workDistribution/availabilityHSE policy distributed to all concerned, i.e.• Handed to each employee by their line manager when issued• All new employees handed a copy by their line manager• Displayed on notice boards at each work location (worksites and offices)• Copies provided for each company on the contract (including Subcontractors, suppliers andagents)• Available to company and Contractor employees in their working languages)Discussion• Policy and its implementation when issued discussed by line managers with each employeeDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content3 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Table 3.3: Checklist for HSE planSection 3 - Organisation, responsibilities, resources, standards and documentationHSE organisationKey personnel• Personnel responsible for the implementation of HSE objectives clearly identified in anorganisational chart• Responsibility adequately covered during all phases of the contract• Job descriptions in place showing each team member's HSE competencies, responsibilitiesand function• Organisation clearly shows position of HSE professionals.Contract objectives/accountability• Defined to meet health, safety and environmental objectives as well as those of time, cost andquality• Accountability for HSE success and equally of any failure clearly stated• Focal point within the team structure ensuring that all HSE matters have been identified• Designated team leader to produce HSE objectives, tasks and targets for the contract• Targets, etc. to be realistic and consistent• Establish procedures for distribution, reporting and reviewing HSE issuesManning/communications• Manpower philosophy• Manpower level to be defined correctly so as not to compromise HSE• Effective means to communicate HSE issues to the company, Contractor and Subcontractors• Organisation staffed by competent personnel with sufficient appreciation of HSE wherenecessary with specific training in the issues involvedCorporate structure/responsibility• Company's expectations on HSE management to be communicated in depth• Access of Contractor's line management to their corporate management structure on HSEissues to be defined• Level of handling project HSE issues by the Contractor corporate structure (middle or seniormanagement or board level)• In the Contractors corporate organisation, individuals charged with responsibility for HSE atmiddle senior manager or board member levelAccess to specialist HSE advice for line management, e.g.:• Provision of HSE documentation for small contracts• Employment of HSE specialist for large contractsHSE professionalsJob definition• Role of the Contractor's HSE advisers well defined• Job definition draftedReporting/follow-up• Reporting relationship with line management• Direct access to the Chief Executive• Does line management follow up on advice offeredHSE departmentContractor's HSE department involved in:• Preparing and monitoring departmental action plans• Formulation and suitability of HSE rulesDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content4 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81• Planned inspections and audits together with line management• Promotional material• HSE training• Subcontractor assessment• Training and auditing• Health risk assessment, health performance monitoring and health surveillance• Environmental monitoring• Supporting incident investigation by line managementGuidance given by the Contractor's HSE management in preparing and implementing:• Operating and emergency manuals• Emergency plans• Training for fire fighting teams, first-alders etc.• Emergency drills and exercises• Protective equipment and rescue• Contact and liaison with government departments maintainedSubcontractorsManagement• To be well integrated and identified in contract HSE Plans• Have own plans if carrying out a large portion of the work• HSE Plans to be vetted for suitability by main Contractor• Main Contractor to communicate that Subcontractor subject to the same rigorous HSEstandards as main ContractorIdentification/vetting• Subcontractors to be identified at this stage of the project• Method of vetting those still to be identified to be stated• Vetting of Past Subcontractor records• Maintenance of approved Subcontractor lists where HSE has been consideredHSE communicationsCoverage/awarenessSet up appropriate lines of communication to handle HSE issues, e.g. such items as:• Direct access to emergency services• Nearest hospital• Helicopter availability• Air ambulance, etc.• Authorisation and implementation procedures fully understoodEmergency services: those organisations that would be expected to provide support in a majorincident aware of requirements - briefed as to their likely role.External links• Lines established to communicate externally incidents that may endanger those on a site• Individual responsibilities and procedures for the company and Contractor(s) to makegovernment agency reports have been agreed upon and clearly defined• Contractor able to communicate with all his workforce in an emergency• Communications take into account the diversity of languages amongst the workforce• Ability of base to mobilise in an emergency, e.g. doctors, hospital facilitiesEmergency communications• Appropriate for incidents envisagedDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content5 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81• Strengthened, duplicated or backed up by other meansHSE meeting programmeScheduling• Contractor to establish a regular schedule for HSE meetings• Define responsible management person for scheduling such meetings• Procedure to maintain records of personnel attendanceManagement participationManagers seen to be involved by employees in:• HSE activities, objective setting and monitoring• Taking action and providing resources to support their stated policies and objectivesMeeting structure• HSE meeting structure• Effective to manage and communicate on HSE• Allow employees full involvement and their own ideas to be heard• Typical agenda and meeting formatsFollow-up actions• Meeting actions• Where action is agreed, is it seen to be carried out?• Where action is not agreed, is it explained why?Communication• Results of HSE activities, both successful and less successful, openly communicated to allemployees• Meeting programme consistent with the rest of the management structure to communicateeffectively HSE issues• Meetings recorded clearly and consistently• Structured to include health, safety and environmental itemsHSE promotion and awarenessTechniques• Appropriate communications techniques used to make the personnel aware of HSE issuesHow this is to be implemented, e.g.• Personal contact• Interactive video• Notice-boards• Newsletters (suitable for large sites)• Bulletins• PostersPerformance• HSE performance boards (e.g. at worksite gates)Promotional methodsPossibilities include:• Small 'give-aways' with the HSE message• Competitions• Suggestion schemesDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content6 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Part of business• HSE activities seen as an intrinsic part of running an efficient business rather than a costly andtime-consuming 'extra'HSE competence requirementsFitness of personnel• Confirmation of medical fitness from a recognised and approved medical facility of all proposedemployees for contractHSSE Critical PositionsCompetence Assurance of HSSE Critical Positions• Competence assurance process for people performing HSE and Security (HSSE) critical taskspursuant to the contract consistent with Group Yellow Guide (YG) ‘Competence Assurance ofHSSE Critical Positions’ November 2004• HSSE Critical Positions pursuant to the contract identified• Incumbents of HSSE Critical positions assessed with no significant gaps.Employee orientation programmeApproach• Provision of a comprehensive handbook for all new employees• On-the-job orientation for supervisory staff• Established procedure in relation to follow up of all new employees at the worksiteNew employees• Adequately trained and confident of their own abilities• Coached to improve their work practices rather than blamed for mistakesAccountability• Employees know they are accountable for HSE performance• Aware that their HSE performance is part of the Contractor's appraisal and reward system• Know that flagrant or frequent breaks of published HSE rules will result in disciplinary actionProcedures• Required for new employee orientation consistent with existing company guidelinesReappraisal• Programme subject to appraisal and reviewHSE training (general)Contract standards• Statement on the current standard of workforce and training requirements to meet contractstandardEstablished training programmeIncluding:• HSE management• Job procedures• Road safety• Health (first-aid health hazards, medical services, alcohol and drugs, health promotion, use ofPPE)• Auditing• Incident investigation and reporting• HSE adviser skills• Supervisory developmentDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content7 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81• HSE meetings• Environmental protection.Supervisory training• Supervisory development training promotes man-management skills and communication skillsFormalised programme• Formal HSE orientation programme for employees working on-site• Records kept of employees who have been through the programme• Employees trained before starting work• Training covers those joining as a contract is being implementedCoverageHSE training of employees coverage (including):• Safety• Fire and explosion• Road transport/driving• First-aid• Work procedures/PTW• Hazard awareness and reporting• Occupational health• Security• Basic HSE rules• Legislative requirements• Environmental protectionSupervisors' participation• Supervisors required to brief and debrief staff before and after training coursesCourse content• Effective system for establishing the need for and the content of training courses• Determining course effectiveness and relevance of training assessedSpecialised training• Relevant training given to personnel prior to the execution of hazardous operations• Training gained through course attendance supplemented by on-the job training as necessary• Records kept of attendees of the training courses and qualifications gained by employeesEmergency training• Training covers the actions to be implemented and the employees' responsibilities in anemergencyHSE content in other coursesHSE included in:• Induction courses• Craft training• Supervisory training• Line management training• Auditing techniquesDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content8 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81HSE training (Professionals)Selection• Procedure in place for introducing competent HSE personnel on to the contract• Criteria used by the Contractor to select his HSE supervisory staff (e.g. career development,professional status)Training• Training is received by HSE professional• Required specialisation (e.g. drilling, radiation, chemicals.)Appropriate levels of:• Institute training• HSE managementQualificationsKnowledge and experience of the Contractor's HSE professional:• Match for competence for the job being carried out• Match for the advice requiredHSE legislationCoverageHSE Plan to include:• A comprehensive list of applicable legislation• Government, national and international codes• Company regulations., codes and standards• Contractor's identification of regulations, codes and standardsHierarchical precedence statedDefinition of the legislation, codes, standards, etc. reflecting the company's previous experienceFor contracts carried out in separate countries:• Different legislation requirements• Company assistance for foreign ContractorsWaivers• Procedure for seeking waivers indicatedHSE standardsAvailability• Contractor in possession of HSE manual/set of standards• Identifying minimum criteria for achievement during contract implementation• Available in writing to all users in consistent, concise and clear form• Users involved in the development• Standards in line with company requirementsControl/authorisation• Controlled documents• Updated regularly• Approval level indicated• Procedure for obtaining deviations from standards• Responsibility for authorisation• Mechanism for recording approved deviationsCoverage• Clear reference to national and international standardsDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content9 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81• Setting minimum requirements on health, safety and environmental issuesTable 3.4: Checklist for HSE planSection 4 - Evaluation and risk managementMethods and procedures for hazards and effects managementCoverage• Company assessment used as a starting point with additional hazards identified by theContractor• Contractor's assessment carried out in accordance with his formal methods and procedures• Analysis techniques used in preliminary form where appropriate• Contractor covers all parts of the contract with assessments for the specific scope and locationsof the contractExperience and awareness• Contractor able to use material from previous similar projects and demonstrate awareness frompast experienceAssessment of exposure of workforce to hazards and effectsCoverage• Contractor develops assessment of the scope and degree of exposure of workforce to hazardsfrom the hazards and effects management processHandling of chemicalsCoverage• Contractor demonstrates availability and distribution of guidance/information on the safehandling of chemicals., likely to be encountered in the contract, and proposals for confirmingadherence to guidance during contractHazards and effects management and the assessment of PPE requirementsHazard assessment/PPE requirements• All processes identified that require use of PPE• Statutory requirements similarly identified• Procedure in place for recording issue to personnel together with follow-up inspection andreplacement/re-certification• Storage of PPE adequate and secure with procedure for ensuring adequacy of stockPPE Instruction/training• Requirements identified for all personnel• Instruction and training in its use provided where needed• Procedure for checking its use specifiedRenewal/replacement• Schedule and criteria for renewing PPE• Schedule for re-certification• Responsibility for paymentDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content10 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Table 3.5: Checklist for HSE planSection 5 - Planning and ProceduresHSE proceduresAvailability/control• Written procedures available to cover hazardous operations on HSE• Include HSE precautions to be taken• Consistent with company guidelines• Controlled documents• Appropriate level• Coverage: include health and environmentWritten procedures:• Familiar to all employees including Subcontractors• Available in their working language• Contents related to individual job descriptionsDeviations• Procedure for obtaining• Responsibility and level• Recording of authorised deviationsOmissions• Identify whether there are any areas where procedures for hazardous operations are notdrafted• Commitment to preparePermit to work (PTW)• System in place• If the Contractor's own system is utilised, is it consistent with industry norms and in line withcompany guidelines?Training/qualification• Training standards and qualifications set for personnel allowed to implement proceduresBasic HSE rulesAvailability• Set of rules available and distributed to all employees• Users acknowledge receipt• New employees given a copy before starting work• Method of discussion and verifying understandingCoverage• Covers health and environment as well as safety• Set of rules provided tailored to specific contracts• Identify hazards likely to be encountered• Address basic housekeeping and hygiene• Cover signals that will be encountered on siteProduction/updating• Structure for producing updating and disseminating rules• Frequency• Personnel participationDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content11 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81• Involvement of usersEmergency response proceduresCoverageIdentification of potential major emergency scenarios, and procedures to use in such scenarios, e.g.• Fire• Abandon rig/location• Storm• Oil/chemical spill• Aircraft incident• Emergency communications• Medevac• Blow-out• Diving emergency• Search and rescue ISAR)• Explosions• H 2 S• Well control• Man overboard• Evacuation• TerrorismPotential use of company guidelinesAwarenessBy employees of procedures• Orientation• Schedule of drills and testing• Medical contingency plan included• Review frequency• Responsibility of employees for own and colleagues' HSE• Monitoring mechanism• Drills to be carried out without warningPlans• Contingency plans allowed for in emergency situations• Recovery procedures in place to be activated in event of emergency scenarios• Interface arrangements to company emergency procedures and resources• Drills to be held to demonstrate preparedness for response• Performance indicators defined for drillsHSE equipment and equipment HSE inspectionHSE equipment• List drawn up of all HSE equipment to be used on the project• Identified by type, capacity and reference to standardsRequirements identified for each item of HSE equipment, including:• Registry• Classification• Licensing• Survey• Test certificationDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content12 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Critical Items for HSE Inspection• List drawn tip of critical items of equipment that must be the subject of an HSE inspection(including any HSE critical equipment identified in Preventative Maintenance System)• Procedure established for carrying out HSE inspection of equipment (covering health, safetyand environmental aspects to be reviewed)• Procedure established for checking standards where tools have been provided personally bytradesmenSchedule• HSE equipment inspection schedule established for the duration of the project• Inspection frequency clearly identified for critical items of plantOccupational HealthFacilities available• Facilities defined as part of contractOccupational health programme established to:• Identify hazards• Assess hazards• Control hazards, e.g. engineering controls, procedural controls, PPE, vaccinations, etc.• Maintain emergency procedures• Appropriate for the site conditions• Welfare programme meets the needs of isolated sitesLocal medical facilities evaluated in detail to assess:• Range and quality of equipment and supplies• Hygiene standards• Administration procedures and standards• Transportation and communication• Sufficient for day-to-day needs and consistent with relevant health programmes• Adequate provision for supply of drugs, antidotes, etc.Staffing• Availability of adequately trained, experienced staff• Access to medical treatment facilities (if external)Contingency plans• Defined for possible incidents beyond capability of site facilitiesAccommodation and catering facilities• Where provided, facilities to meet normally accepted standards of hygiene at site location• Facilities to be operated in line with government hygiene regulations and to meet companyguidelines• Rules in force to maintain cleanliness of site and other facilitiesPromotionPromotional material available to assist in maintaining standardsAppropriate for the Contractor's workforce in terms of:• Language• Clarity, etc.Hygiene and housekeeping• Procedure on on-site cleanliness and maintenanceDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content13 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81EnvironmentalAwareness• Workforce aware of requirement to protect the environment whilst executing contractControl• Identify potential environmental hazards• Develop procedures for handling materials and performing operations that may damage theenvironment• Contingency plansAimsFocus for the environmental protection teamAt what levelLine management responsibility for environmental protection defined as well as other job objectivesDevelopment and enhancement of environmental impact statements for the contractMonitoring/restoration• Environmental monitoring to gauge the impact of operations• Plans appropriate and sufficiently detailed• Recovery and restoration of site after contract completionAudits• Environmental audits of operations during the contract• Carried out by experienced individuals or companiesLogistics (Road, Marine, Air Transportation and Lifting and Hoisting)Compliance with HSE standards (EP2005-0261, EP2005-0262, EP2005-0263, EP2005-0264)Road TransportDrivers: competence and selection• Assess physical, mental and psychological capability• Character and background• Qualities and experience, medical examination, document checks, driving tests• Special skills such as terrain and climatic experience and first-aid knowledgeDrivers: driving permits• Should record personal and employment details, types of vehicle licensed to drive and types ofcargo licensed to carry• Drivers: driver induction• Local area characteristics and regulationsDrivers: driver training• This should test vehicle operation and use, operating conditions (terrain, climate), off-loadingand positioning, emergency situations, and vehicle inspectionDrivers: driver Improvement• Techniques should identify deficiencies, analyse causes and select appropriate retrainingVehicle: selection• Ensure correct type, capacity and size for facilities• Good manoeuvrability and serviceabilityVehicle: specification• The job description should be clearly defined before the vehicle is chosen, to ensure workoperations do not exceed the manufacturer's specifications• Safety equipment and communications on board the vehicle need to be checkedDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content14 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Vehicle: passengers• Is the vehicle designed to carry passengers?Vehicle: freight• Design of vehicle and load limits• Segregation, positioning and securing of freightIn vehicle monitoring system (IVMS)• installed in the relevant vehicles• system in place to mange data and feedback result to drivers and managementOps management: need and approval• Define the journey and justify the need• Awareness of hazards involved• Allocation of vehicles, written authorisation, verification of employees' driving standardsOps management: journey routing and scheduling• Full awareness of route (hazards, conditions)• Realistic schedulesOps management: journey management• Logging of actionsOps management: roles and responsibilities• Roles and responsibilities defined for management, supervisors, drivers, passengersContracting• Pre qualification of Contractors and Contractor HSE management treating road transport withequal importance to main activity• Standards for scope of operations included in tender operation• Control and review mechanisms included in contracts• Policy of no subcontracting without written authorityProcedures• Ensure procedures are in place for all transport operations• Monitor and review mechanisms in placeEmergency services• In place and testedDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content15 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81Table 3.6 - Checklist for HSE planSection 6 - Implementation and performance monitoringHSE performance - GeneralMeasurementProposed plan to measure performance, i.e.• Performance indicators• Progress against targets• HSE initiatives/incentive schemes• Achievement of milestones• Numbers and types of near misses, unsafe acts and conditions• Numbers and types of training courses• Numbers and results of audits• Clearance of action itemsUse will be made of reactive statistical indicators, e.g.• Lost Time Injury Frequency/Total Recordable incident Rate• Numbers of first-aid and minor injuries• Material losses• Vehicle incidents• Lifting and hoisting incidents• Spillages• Waste generation (e.g. solid, hazardous waste)• Occupational illnesses• Sickness absenteeismFeedback/analysis• Availability and use of performance records• Feedback of trending of near misses, unsafe acts and unsafe conditions• Feedback/review/discussion at HSE meetings• Presentation and distribution to employeesComparison of performanceComparison of performance:• With other similar contract work• Frequency specified• Involvement of company personnelIncident InvestigationCoverage• Reporting procedure for the contractCovering not only injuries to and time lost by personnel but also:• Health incidents (diseases, exposures to hazardous substances, near misses, etc.)• Environmental incidents (spillages, releases, contamination, etc.)• Other safety incidents (safety equipment failures, loss of capital equipment)• Material lossMethods• Incident investigation method established to determine and correct causes• Incidents first reported to the direct supervisor• Incident investigation teams led by the relevant managersDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content16 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

EP2005 Volume 1HSE ToolHSE Plan Checklist forMajor ContractsRestrictedTool EP2005-0110-TO-81• Differentiation made between numbers of first-aid treatments and other minor injuries• Procedure in place on vehicle incidents• Methods to be used for collecting incident statisticsTable 3.7: Checklist for HSE planSection 7 - HSE auditing and reviewHSE AuditingAvailabilityEstablished HSE procedure outlining responsibilities, frequency, methods and follow upScopeCompliance with the HSE Plan including:• HSE management• Departmental personnel HSE• Technical personnel HSE• Subcontractor• Occupational health• Unsafe acts• Audit training• Environmental• Own activities and those of his SubcontractorsCoverage• Consistent with company guidelines• Schedule for full contract duration• Involvement of personnel in audit teams from outside the location• Carried out by a wide cross-section of the workforce including company and SubcontractorpersonnelEffectiveness• How verified• Involvement of the Contractor's corporate management in review of findings• Intention to publish findings• Discussion with personnel on contract and at HSE meetings• Lessons used to improve operations across the contractFollow-up• Any numerical treatment made of findings• Frequency of review of implementation progress• Rejections of audit findings properly authorised and documentedDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content17 of 17Printed copies are uncontrolledEP200407201488/ EP2005-0110-TO-81/Version 01B6

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EP2005 Volume 1HSE ToolHSE Plan Checklist forSmall ContractsRestrictedTool EP2005-0110-TO-82Tool:HSE Plan Checklist for Small Contracts(Mode 1 Low / Medium / High HSE Risk Contracts orMode 2 Low HSE Risk Contracts)Other than the blue text underlined in italics the content in this EP Tool is identical to AppendixVI of the ‘OGP HSE Management – Guidelines for working together in a contract environment’.1. HSE Plan Definition GuidelineWhen the contracted activities are covered by a contractor HSE Management System (e.g.in line with the E&P Forum guidelines on HSE MS), including HSE Cases for contractedinstallations, the HSE Plan should only address those issues that are unique for the contractunder consideration. It shall focus on contract specific risks and the management of controlsto eliminate, reduce or mitigate these risks. Other contract-specific issues that may beaddressed in the Plan shall be but are not limited to:• Organisation and personnel for the project;• Project specific procedures;• Project audit and review plan;• Compliance with local rules and legislation.2. Checklist for HSE PlanLeadership and commitment• Senior management should reinforce the importance of HSE at all levels in theorganisation and should be seen to be setting a personal examplePolicy and Strategic Objectives• Contractor has a policy that makes reference to the importance of HSE. It is formalised bythe Chief Executive's or the Manager's signature• Right and duty of staff to intervene with unsafe acts and conditionsOrganisation, Responsibilities. Resources, Standards and Documentation• A focal point in the organisation for HSE. Simple procedure for distributing information onHSE issues to the workforce• Confirmation of medical fitness from a recognised and approved medical facility of allproposed employees for contract• HSSE Critical Positions pursuant to the contract identified• Incumbents of HSSE Critical positions assessed with no significant gaps.• A procedure for determining/enacting HSE training. Provision for obtaining HSE adviceshould this be out-side the capability of the Contractor's personnel• Simple procedure for ensuring any Subcontractor adheres to same HSE standards• Simple advice on the importance of the links with client (or third party) emergency serviceson contracts• Typical agenda for any VISE items in meetings and how to ensure they are coveredeffectively• A statement of how HSE competence is assessed for personnel with HSE-critical activitiesto performStatement of requirements for employees to indicate that they have the necessary appreciationof the HSE issues in the Contractor's business activities. This should include reference topotential client HSE induction sessions and HSE training. Such training could include itemsfrom the following list (as relevant to the contract):• Fire and explosion hazards• Road transport/driving• First-aid• Work procedures/PTW• Hazard awareness and reportingDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content1 of 3Printed copies are uncontrolledEP200407201489/ EP2005-0110-TO-82/Version 01

EP2005 Volume 1HSE ToolHSE Plan Checklist forSmall ContractsRestrictedTool EP2005-0110-TO-82• Security• Basic HSE rules• Legislative requirements• Occupational health• Environmental protection.Hazards and Effects Management• HSE targets set in clear quantifiable terms• A system in place to assess workplace hazards• Compliance with Logisitics HSE standards (EP2005-0261, -0262, -0263,-0264)Planning and ProceduresContractor has a document with simple procedures/rules covering the HSE issues in hisbusiness activities with a method for review and update. This should include the following:• HSE hazard awareness• Basic USE precautions to be observed in the workplace• HSE hazards of tasks and operations encountered in his business• HSE hazards of equipment used• Use of PTW system• Communications with supervisory personnel on siteContractor has a document that:• Outlines the activities of his business• Identifies those areas that are HSE-critical• Finds a method how individual contract scopes can be simply appraised to determinewhere the Attention to HSE issues need to be focused• Identifies how to determine PPE requirements• Identifies a simple set of steps for road transport management• Recovery procedures in place to be activated in event of emergency scenarios• Interface arrangements to company emergency procedures and resources• Drills to be held to demonstrate preparedness for responseImplementation and Performance MonitoringList drawn tip of critical items of equipment that must be the subject of an HSE inspection(including any HSE critical equipment identified in Preventative Maintenance System)Contractor monitors the number and types of near misses, unsafe acts and conditionsContractor has a procedure for recording incidents, for advising legislative bodies wherenecessary and for making annual reviews of performanceContractor has a procedure for investigating incidentsAuditing and ReviewContractor has a method for the management to carry out simple audits of his contractoperationsDoc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content2 of 3Printed copies are uncontrolledEP200407201489/ EP2005-0110-TO-82/Version 01

EP2005 Volume 1HSE ToolHSE Plan Checklist forSmall ContractsRestrictedTool EP2005-0110-TO-823. Small Contract Typical HSE Plan Proforma(Mode 1 Low / Medium / High HSE Risk Contracts or Mode 2 Low HSE Risk Contracts)The table below provides guidance for a set of headings for a typical HSE Plan for use on smallcontracts.The list of headings should be determined individually for the contract concerned.SubjectDetailsGeneralCompanyProjectContract title/numberContractor detailsSite locationCompany contract holder/representative(s)Company representative(s)Contract manager/Contractor representative(s)Hazard assessmentContract scope descriptionExpected hazards identified(including adjacent operations, etc.)Alternatives consideredProcedures to be followed for hazard control (listdocuments or describe details here)Access/escape provisions(alarms, muster stations, etc.)Emergency service provisions(including first aid, nearest medical treatment,emergency phone numbers, etc.)Competence standards for Contractor's personnelStandards for Contractor's equipmentTraining requirements(including site HSE induction)Job/services descriptionContractor's personnel assignedContractor's equipment/ consumables/servicesassignedCompany's personnel assignedCompany's equipment/consumables/servicesassignedSubcontractor detailsResponsibilities/interfaces definedPPE and any special HSE equipment to be usedWorking hours/job durationSite description/limitsPTW provisions applicableConditions for suspending work(e.g. weather, adjacent site operations, etc.)Doc. No.:###Version:###Date:###Custodian:###ECCN: Not subject to EAR Page:No US content3 of 3Printed copies are uncontrolledEP200407201489/ EP2005-0110-TO-82/Version 01

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Custodian: EPS-HSSE ECCN: Not subject to EARDoc.No.: EP200609215707 No US contentOrg. Doc. No. EP2005-0110Version: 2