KIKEH SPAR HOOK-UP & COMMISSIONING PROJECT

PROJECT HSE PLAN

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HSE PLAN
FOR KIKEH SPAR
PROJECT
REV. A

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PROJECT HSE PLAN

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Table of Contents -
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Section Subject Page

1 General 3
2 Purposes 3
3 Scopes 3
4 References 3
5 Definitions & abbreviations 4
6 Safety Philosophy 4
7 Elements of the HSEP 4
8 HSE Management System (HSE MS) 5
9 Project HSE Goals & Objectives 5
10 HSE Activities Plan 5
11 KIKEH SPAR Project HSE Program/Task/Action Highlights 5
11.1 HSE Policies 5
11.2 HSE Plan 6
11.3 HSE Award 6
11.4 Performance Monitoring 6
11.5 Emergency Preparedness & Drills/ Exercises 7
11.6 Work Permit 7
11.7 Offshore Safety Passport System 8
11.8 HSE & Skills Training 8
11.9 HSE Program 9
11.10 Sub-contractors HSE performance 9
11.11 Regulatory Compliance System 10
11.12 HSE Inspection, Reviews and Audit System 10
11.13 HSE Awareness and Communication 10
12 Accident/Incident Report 11

ATTACHMENTS 12

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1. General 3
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This HSE Plan (HSEP) is an integral part of the Health, Safety & Environmental
Management System (HSE MS) of which TMM/EJJV shall implement for the KIKEH
SPAR project. It is developed to identify the key actions to be taken by TMM/EJJV and
provide a sound basis for HSE communication and participation of all personnel
(employees and sub-contractors) in the preservation of the health and safety of personnel,
protection of the environment and the prevention of asset loss whilst they are working on
Murphy Oil facilities at KIKEH SPAR.
2. Purposes

This purpose of this HSEP is to document the project plan used by TMM/EJJV to manage
HSE from the phases of work-pack preparation to onshore pre-commissioning, offshore
Hook-up until the commissioning and the final handover. The objectives of the HSEP are
as follows:
Identify clear HSE responsibilities amongst the project team;
Outline the HSE MS adopted by the Company (EJJV/TMM)
Outline approaches to satisfy Murphy Oil and own Companys HSE Policy and
specific project objectives
To ensure the Company complies with Murphy Oil, relevant Regulations;
PETRONAS Standards & Guidelines.
To plan the execution of HSE related activities to ensure completion in an
efficient and cost effective manner so as not to cause adverse impact on the
overall project execution schedule
3. Scopes
This HSEP covers the followings:
Offshore operational planning and engineering work carried out in the
EJJV/TMM Offices,
EJJV/TMM yard preparatory activities & logistic supports onshore;
Project team pre-mobilization and familiarization with Murphy Oil HSE
requirements
Daily operations by site project team during HUC execution phases at project site.

4. References

Murphy Oil HSE MS Manual

Murphy Oil Operating Procedures - PTW & ERP
EJJV HSE MS Manual

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5. Definitions & abbreviations 1
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EJJV EJ Joint Venture Sdn Bhd i.e. TMM sub-contractor for offshore HUC
TMM Technip Marine (M) Sdn. Bhd.
HSE Health, Safety & Environmental
PTW Permit to Work System
OIM Offshore Installation Manager
SRE Senior Resident Engineer- Clients staff
6. Safety Philosophy
The safety and health of personnel would be accorded the highest priority during all
phases of the project. No actions would be taken until personnel are assured of a safe
working environment. Where appropriate, onsite personnel should be briefed on inherent
hazards and potential risks that warrant use of appropriate personnel protective
equipment and safe work practices prior to starting work.
When in doubt about the unsafe situation, personnel must check with their direct
supervisor, who could assist to rectify the situation. No disciplinary action will be taken
against anyone who refuses to perform an instruction where, in his reasonable opinion, to
do so would constitute an unsafe act, provided proper procedure is followed.
7. Elements of the HSEP

TMM/EJJV will strive for continual improvement and strengthen their HSE performance
and cover the following HSE elements:
HSE Policy
HSE Management System (HSE MS)
Visible Management Commitment and Leadership
HSE Structure/Organization
Competent Safety personnel
High HSE Standards, Rules and Procedures
Regulatory compliance
Clear Line responsibility for HSE
Proactive and reactive Incident Reporting
Realistic goals, targets and objectives (Attachments 1)
Measurement of performance
Regular audits and reviews of standards, practices, etc and follow-up of
recommended remedial actions
Incident investigation and follow-up action to prevent recurrence
Appropriate and effective training
Effective two-way communication throughout the organization
Active Employees Involvement

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Disciplined and motivated workforce 1
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Effective sub-contractor Management -
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8. HSE Management System (HSE MS)

TMM/EJJV is adhering to the guidelines and principles of OHSAS 18001:1999

(Occupational Health and Safety Management System) and also ISO 9001:2000 (Quality
Management System) as a way of fully implementing the elements of HSE Management
in a structured and disciplined manner. These methodologies are based upon the principle
that all hazards and risks must be understood/appreciated and either managed, controlled
or eliminated.
9. Project HSE Goals & Objectives

Our key HSE goals and objectives for the KIKEH SPAR project specific HSEP in
Quarter 4 2006 are:
Demonstrate Management Leadership in HSE;
Comply with relevant Laws and Regulations;
Continuously improve HSE performance and programs;
Ensure HSE / skill training conducted according to plan and needs;
Effectively support for project site & operations activities;
Maintain high level of emergency preparedness.
The HSE performance targets set for KIKEH SPAR project is shown in Attachment 1.

10. HSE Activities Plan

A summary of the key programs/tasks/actions to meet KIKEH SPAR Project
Goals/Objectives is detailed in Attachment 2.
11. KIKEH SPAR Project HSE Program/Task/Action Highlights
Described below are some of the HSE activities planned for Quarter 4 of year 2006:

11.1 HSE Policies

The current Companys HSE policy will be reviewed annually to ensure its continual
relevance to the EJJV operations, statutory change and in compliance with the
OHSAS 18001: 1999 requirements.
The Companys Drug & Alcohol and Smoke-Free Policies were approved and visibly
displayed at all TMM/EJJV worksites.
Any personnel (employee or contractor) who violate any of the Companys standard
procedures or policy is subject to one or more of the following disciplinary actions:

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A verbal or written reprimand 1
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Forfeiture of safety awards that may be active at that time -
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Suspension without pay
Termination without appeal
The disciplinary action taken will depend on the seriousness of the violation and the
personnels prior violations record.

11.2 HSE Plan

HSE activities/programs for the offshore Hook-up & Commissioning of KIKEH

SPAR project are established in detail in collaboration with the Project Management
Team of both TMM/EJJV and Murphy Oil.
All the HUC team Key personnel will be given work orientation to ensure they are
clear and familiar with roles and works scopes they have to handle at project site.

See details of Work Orientation program in Attachment 3 and Pre-mob HSE

program in Attachment 4

11.3 HSE Award

The Company (TMM/EJJV), at its own discretion will give safety award for
recognitions to its employees or contractors that achieved specific safety milestones.
The award may take the form of an official award certificate/plaque or safety rewards,
memento or incentives for each staff, as a sign of appreciation of the good HSE
performance.

11.4 Performance Monitoring

The Company (TMM/EJJV) shall measure/monitor its own and sub-contractor

performance at each jobsite. Monitoring shall take the form of regular housekeeping,
HSE inspections, and periodic review of HSE statistics. Therefore, TMM/EJJV and
its sub-contractor are required to report any accident/incident immediately in
accordance with Murphy Oil and TMM/EJJV Incident Reporting and Investigation
System.
The TMM/EJJV HSE performance targets proposed for this KIKEH SPAR project
include:
Maintain zero Fatality, Lost-Tine Incident and major Fire/Explosion
Maintain zero Total Recordable Case Frequency
Zero Occupational Illness, Food Poisoning Cases; Oil/Condensate/
Chemical Spills; and Regulatory Fines.
LTI-free until completion of KIKEH SPAR project.

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Encourage first aid, near-miss, Unsafe Act/Condition reporting 1
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All accidents/incidents will be investigated with reports submitted to:

1. Murphy (Sabah) Oil Co., Ltd;
2. Technip office, Kuala Lumpur;
3. EJJV HQ office, Kuala Lumpur.
All remedial actions identified by the reports shall be captured and monitored until
completion using the Safety Action Form database and Corrective Action Notice
System.

11.5 Emergency Preparedness & Drills / Exercises

The Companys (TMM/EJJV) Emergency Response Plan will have to be

upgraded/updated/tested so as to maintain a high level of emergency preparedness.
This will include training and drills.
TMM/EJJV will adhere to emergency drills conducted by OIM at KIKEH SPAR or
jointly by SRE onboard the Work barge, of which could either be scheduled or
unannounced, as when necessary. It is an exercise to simulate proper emergency
response to an unwanted or unexpected event. It also provides preparedness for loss
control.

11.6 Work Permit

No work is granted in the field at Murphy Oil facilities without a Permit to Work
(PTW) that has been approved by the Person-In-Charge at KIKEH SPAR.
When working at the Murphy Oils facilities, they shall use Murphy Oil PTW system
and TMM/EJJV is obliged contractually to use them.
Any non-routine, lifting, alterations, repair and maintenance jobs requiring electrical
or pressure isolation should not be undertaken until the appropriate work permit(s)
have been obtained. Critical activities requiring work permits include:
Hot Work (welding, grinding, etc)
Heavy lifting or lifting equipment over live plant;
Working at heights
Confined space entry
Work on pressure vessels/lines requiring purging and isolation;
Electrical and high voltage work
Work in potentially explosive/toxic gases
Use of radioactive materials
Non-routine work

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11.7 Offshore Safety Passport System

The Offshore Safety Passport is Murphy Oil specific requirement, which is a

monitoring aid to ensure that employees who need to work at the Murphy Oil
offshore facilities are medically fit and have undergone the sea survival training and
other safety training to meet job and legal requirements.
Compliance to the system requirements is the responsibility of each individual
employee and TMM/EJJV management. The Project Team-leader must ensure that all
their offshore workers must comply with this system, and monitor their attendance
and progress periodically. This also includes personnel undertaking relief and/or
temporary assignments.
The costs for the medical examination and attending the sea survival training courses
for all TMM/EJJV employees shall be borne by the Company. Updated records of
each employees initial and refresher training are kept by the Administration & HR
Dept.
In addition to attending the mandatory/required training, employees are also required
to undergo a medical examination to assess his level of fitness.
At Murphy Oils prerogative, employees found without a valid Safety Passport Book
can be asked to leave the worksite unless approval for exemption has been obtained
from the Murphy Oils site representative at the work site. Such exemption, if
granted, shall be temporary and on a case-by-case basis.

11.8 HSE & Skills Training

Properly selected, well trained and competent workers could execute their job task
safely and efficiently. Effective training will help people acquire skills, knowledge
and attitudes to make them competent in the HSE aspects of their work and also
creates confidence and security on the job.
Depending on the need of each individual assigned offshore at Murphy Oils
facilities, some of the Safety / Skills training planned for Q4 2006 include:
Offshore Safety Induction
Charge-man, Scaffolding, Rigging & Lifting and etc.

11.9 HSE Program

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The TMM/EJJV HSE program goes beyond the traditional management of 1
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absenteeism and sick leave, and the wearing of PPE at the work place. -
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The objective of the HSE Program are firstly to protect employees, sub-contractor
personnel and others from health hazards associated at the work place, and secondly
to promote the employees awareness on good health & hygiene.
An effective management of health at work needs the following key elements:
Health hazard identification
Health risk assessment
Control measures
Health surveillance/exposure monitoring
Record keeping & measurement of performance
Potential health hazards at the work place include noise, toxic chemicals radiation,
hydrogen sulphide, man-made mineral fibers, etc.

Another area that requires close attention is the health and medical fitness of
personnel assigned offshore at KIKEH SPAR. TMM/EJJV needs to ensure that they
are being implemented effectively to avoid any unnecessary medical evacuation from
non-work related illnesses. The procedure should include:

Pre-employment and regular screening (medical certificate of fitness)

Personal illness monitoring/reporting
Emergency illness assistance procedure

11.10 Sub-contractors HSE performance

Third party/Sub-contractors doing work for TMM/EJJV will give some impact on the
companys operations and reputation. It is important that the performance of sub-
contractors selected to do work for TMM/EJJV is consistent and compatible with the
TMM/EJJV HSE policies, standards and objectives.

This is documented in the selection & control of contractors, of which defined the
following elements:
Minimum HSE standards to be met at each stage of a contract
Strategy for proactive management of sub-contractor HSE
Planned approach to managing sub-contractor HSE to ensure continual
improvement
Role and responsibilities of key personnel in sub-contractor HSE management

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11.11 Regulatory Compliance System 1
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The Company-TMM/EJJV will run their business in compliance with all applicable -
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laws. Since the regulations are constantly undergoing changes, a systematic and
continual process will be developed as when required to ensure compliance.

11.12 HSE Inspection, Reviews and Audit System

TMM/EJJV Management and HSE personnel will conduct routine and random
inspections, reviews and audits of facilities, equipment, systems, practices and
procedures. They are necessary to measure HSE performance for continuous
improvement and rectify any deficiency. They include:
Regular Management Site Visits
Monthly HSE Review/Audits
Quarterly Corporate HSE visits/audits (HSE MS & Programs, etc)

11.13 HSE Awareness and Communication

Awareness and effective communication is essential for the development of a safety
culture throughout the company. This will be achieved through dissemination of
information via:
Posters, newsletter, Safety Alerts
Daily Toolbox briefings
Safety meetings
Safety Induction/ Briefing Videos

See Attachment 5 for details of the proposed toolbox meeting agenda and the list of
HSE topics for discussion during toolbox meeting.
12. Accident/Incident Report
Typically, the supervisor responsible for the worksite where an incident happened or
it involved a casualty must report the event to the Person-In-Charge who will in turn
notify the Murphy Oil site representative who will then notify their Companys chain-
of-command and also to TMM/EJJV management.
Depending on the severity of the accidents/incidents, there are up to 3 phases to the
Companys incidents and near-misses notification, reporting, investigation and
analysis process.
All incidents and near-misses at any of our worksite involving employees or
contractor personnel, equipment or facilities shall be reported and investigated. Each
location shall maintain a complete record of all incidents and near misses.

Definitions and procedures associated with the notification, reporting, investigation

and analysis of incidents are contained under the respective sections in the
Companys Incident Reporting System.

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ATTACHMENTS

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