Contractor HSE Management

Robert Pickering HSE Advisor - Contractor Safety Management Office - +1-832-337-1488 Cell - (281) 221-8713 E-mail - Robert.Pickering@shell.com

Shell Exploration & Production 1 CSMP

Why Contractor HSE Management ?

Contracted work accounts for 70-75% of EPs total exposure hours and much of it involves HIGH HSE RISK hence working with contractors and early planning are essential to improve HSE at the workplace.
Shell EP Policy Requires Contractors To Manage HSE In Line With EP HSE Policy.

Shell Exploration & Production 2 CSMP

Contractor HSE Management Process

Shell Global Contractor HSE Management Standard Aligned with International Association of Oil and Gas Producers (OGP) Guideline for working together in a contract environment (a recognized International
industry standard)

Systematic task based process for contractor HSE management 3 phase application
Planning Execution Analyze / Improve

Scope includes all contracts awarded by or on behalf of EP companies

Shell Exploration & Production 3 CSMP

HSE Capability Assessment

Past HSE Performance Past Performance for Shell Contractor HSE MS Audit Standardized HSE Questionnaire
Stoplight Band Red Amber Green

Risk

Mode

Award Contract
Contract Scope/ Select Eligible Contractors

Contractor HSE Capability Assessment

Assign Stoplight Band

Red/Amber/Green

Develop Contract Strategy

Mode 1
Variance Required OK OK

Mode 2
Variance Required OK OK

Shell Exploration & Production 4 CSMP

Planning

Contractor HSE MS (Capability) Assessment

HSE MS Elements
Element 1

LEADERSHIP AND COMMITMENT

Element 2

Policy and Strategic Objectives

Organization, Responsibilities, Resources, Standards and Doc.

Element 3

Element 4

Hazards & Effects Management

Element 5

Planning & Procedures

Corrective Action

Element 6

Implementation & Monitoring

Element 7

Audit

Element 8

Management Review

Shell Exploration & Production 5 CSMP

EPW Technology Must Wins 2009

Enabling Safety As A Value Land Transportation Safety Worksite Hazards Management

Contractor Safety
Work Site Ergonomic Evaluations
Shell Exploration & Production 6 CSMP

Enabling Safety As A Value

Risks/Exposure Areas 1. Lack of Leadership visibility in the field. 2. Inconsistent use of Management System (WASO / SEPCo) 3. Gaps in training for key personnel. 4. Inconsistent consequences for those who create conditions that endanger themselves or others. 5. Excellent safety performance not recognized.

Shell Exploration & Production 7 CSMP

Land Transportation Safety

Risks/Exposure Areas 1. Road Transport is still a #1 hazard associated within our business. 2. Updates in progress to Shell Road Transport Standard EP2005-0261 3. Drivers not compliant with Drivers Training.

Shell Exploration & Production 8 CSMP

Worksite Hazards Management

Risks/Exposure Areas 1. Goal zero not visible at work locations. 2. Proactive Measures not properly utilized.

3. Worksite hazards not being identified proactively.

4. Incident Investigation process not consistent. 5. HEMP tools ineffectively utilized. 6. Health Risk Assessments (HRA) not conducted.

Shell Exploration & Production 9 CSMP

Contractor Safety
Risks/Exposure Areas
1. Subcontractor management not fully compliant. 2. Contractor HSE Improvement Plans not consistent. 3. Contractor Safety Management Process (CSMP) stoplight worksheets not properly maintained. 4. Contract Owner (CO) & Contract holders (CH) roles not properly trained. 5. Contractor forums not attended by CO, CHs. 6. Mode of operation utilized inconsistently (Mode 2 vs. Mode 3)
Shell Exploration & Production 10 CSMP

Work Site Ergonomic Evaluations

Risks/Exposure Areas
1. Ergonomic evaluations under-utilized. 2. Work area audits not complete.

3. Minimal attendance to Office Safety Team (OST) events.

4. Building Safety Teams not consistently managed from a security and evacuation standpoint.
Shell Exploration & Production 11 CSMP

Questions?
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Contract HSE Risk

Risk for each contract is categorized using the Global Risk Assessment Matrix (RAM)

Low HSE Risk Medium HSE Risk High HSE Risk

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Shell Exploration & Production 13 CSMP

Contractors Are Classified By Accountabilities

Mode 1
Work Related Activities
Contractors operate within the EP Companys HSE MS

Mode 2

Contractors operate with their own HSE MS but interface with the EP Companys and are required to report HSE Performance data including incidents to the EP Company

Non-Work Related Activities

Mode 3

Contractors operate within their own HSE MS and have no interfaces with the EP Companys and are not required to report HSE Performance

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Shell Exploration & Production 14 CSMP