HSE Advisors Competence

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Corporate Responsibility HSE Management
System PDO Case Study
Presented by Dapo Oguntoyinbo Corporate HSE
Manager Petroleum Development Oman
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• Contents
• Overview of Corporate Responsibility
• The Case for Change
• The Incident Triangle/Iceberg
• Historical Trend in HSE
• Using HSE to improve Corporate Responsibility
• HSE Management System
• PDO HSE Performance
• Target Zero Myth or Reality ?
• Key Steps for improvement

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• Corporate Responsibility
• Become a good Corporate Citizen
• Protect Health and Safety of people, and the
  Environment
• Reduce risks to ALARP
• Accountability risks and benefits of what we do
• Respect for all people
• Legislation and standards meeting or exceeding
• Obtain public confidence operate by public
  consent
• External Reporting, with third-party verification
• Enhance Corporate Reputation
• Continuous improvement

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Geco Seismic Vessel
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Bhopal Union Carbide Plant Accident 1984
Over 2,500 deaths, 350,000 injured, premature
deaths, etc. loss in stock market value exceeding
900 million, Union Carbide Inc. paid over 425
million to settle litigations, etc.
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Piper Alpha 1988 Over 167 people dead, estimated
loss over 3 Billion
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Petrobras P-36 Sinking 2001

• Brazil, March 16, 2001 - The world's biggest
  offshore oil rig, owned by Brazil's state oil
  giant, Petrobras, sank into the ocean spilling
  crude oil, a day after an explosion that killed
  10 people.

happens only to others?
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Zauliyah-16 Blow Out (August 2001)
Blow-out, leading to loss of Well Pulling Hoist,
Well, Facilities, Environmental damage, but
luckily no fatality
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Cost of Accidents at Work
Some Major Accidents
1979 - THREE MILE ISLAND NUCLEAR PLANT
- US 1.3 billion 1984 BHOPAL UNION
CARBIDE PLANT - US 1.4
billion 1986 - CHERNOBYL NUCLEAR PLANT
- US 5.5 billion 1988 - PIPER ALPHA OIL
PLATFORM - US 3.0 billion 1989 -
EXXON VALDEZ (clean-up costs only) -
US 2.5 billion 1998 - Esso Longford gas
plant explosion - US 4.8 billion

Good HSE is Good Business
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Historical Trend of Public Trust
Trust Me
Tell Me
Show Me
Involve Me
TUT 1.5
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The Incident Triangle
One fatality---------------------- 100 Lost Time
Incidents--- 1000 Non LTIs----------- 10,000
Near Misses--- 100,000 Unsafe Acts-
Over 96 of Incidents are caused by People
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The Causes of Injuries
Fatalities Lost Time Injuries Medical
Treatment First-aid Cases

• Unsafe acts Unsafe conditions
• 96 / 4

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Historical Trend in HSE
Injuries
Engineering Systems Hardware issues to engineer
out hazards
Management Systems develop procedures, etc. to
control hazards
Focus on People empowerment and conviction to
work SAFELY
Time
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PDO Contractors HSE Performance 1986
2002 LTIF incident per million hours worked
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• Using HSE to enhance
• Corporate Responsibility

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• Improving Corporate Responsibility via HSE
• Justification for managing HSE effectively in the
  workplace
• Humanitarian
• Legal
• Financial
• The cost of poor HSE performance
• Human life
• Loss of loved ones, family suffering
• Personal injury suffering, disabilities
  partial or permanent
• Loss of stable income for families
• Equipment damage, deferred production avoidable
  loss
• Significant financial loss (e.g. Time, Facility,
  productivity, etc.)
• Reputation
• An organisation with a good HSE Management System
  is usually a well run organisation

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HSE Management System
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• HSE Management System
• Objectives
• Manage hazards effects to H,S E in a
  structured way
• Set performance standards for managing HSE
• Continuous improvement via monitoring, reviews
  and audits
• Impact of HSE-MS on Corporate Responsibility
• Prevent injury to people, safeguard health and
  environment
• Reputation
• Implementing HSE-MS
• Improve workforce understanding of HSE-MS
• Link Hazard Management to Activity
• Understand What it means to Me

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PDO HSE Management System
Leadership and Commitment
Plan
Policy and Strategic Objectives
Organisation, Responsibilities Standards,
Procedures and Document Control

Do
Hazards and Effects
Management Process
Corrective
Action
Planning
Check
Monitoring
Implementation
Audit
Act
Management Review
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PDO HSE Management System
Leadership and Commitment
Informed Involvement Review Set
Targets Benchmark Assign Responsibilities
Plan
Policy and Strategic Objectives
Organisation, Responsibilities Standards,
Procedures and Document Control

Document Resources Train people Execute
Do
Hazards and Effects
Management Process
Corrective
Measure performance Audit Obtain
feedback Evaluate employees perf.
Action
Planning
Check
Monitoring
Implementation
Communicate performance Follow-up Audit
Findings Reward/correct employees Repeat PLAN
Audit
Act
Management Review
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PDO HSE-MS
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HSE-MS is about People
DISASTER
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Fatal Electrocution

• What happened?
• Electric shock whilst repairing Microwave Oven
• Result
• One dead
• Learning
• Non-compliance (warning signs)
• Competency/Standards

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Challenges of Compliance (Hearts Minds)
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People Focus on Hearts Minds
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HSE CULTURE LADDER
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Hearts Minds Tools
Set of high quality tools available

• Understanding your culture ü
• Implementing HSE MS ü
• Managing Rule Breaking ü
• Risk Assessment Matrix ü
• Improving Supervision
• Making Change Last
• Seeing as others see you
• Safety Climate / Workforce involvement
• Behaving Safely
• Achieving situation awareness

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• PDO HSE Performance

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PDO Contractors drive 120 Million Km per year
average i.e. travel round the world 3,000 times
a year (8 times round the world every day !!!)
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PDO Contractors Road Safety Performance
Road Traffic Accidents per Million Km driven
Reduction
DDC
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PDO Contractors Road Safety Performance
Speed-limiters
DDC
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Road Safety Challenges in PDO
Key Road Safety Performance Figures
YTD
2000 2001 2002 2003
Million kms driven 118 121 132 92
RTAs 158 159 111
70 RTAF 1.3 1.3 0.8
0.7 Rollovers 43 33 22
13 Rollover Freq.. 0.36 0.27 0.16
0.13 RTA LTIs 21 15 5
3
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Target Zero in PDO
LTIF versus Fatality frequency over the years
LTI frequency (LTI/million hrs)
2003-Target
Zero
Fatality frequency (Fatalities per million hrs)
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• Target Zero
• Myth or Reality ?

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Lets look at the STATISTICS for Concord before
the recent crash that KILLED more than 100 People
The ICEBERG ...
disaster / fatality
1
major accident - injuries involved
minor accident (towed away)
near misses
unsafe act
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Target-Zero No Injuries
The Incident Triangle
HSE Management Triangle
LEGEND A Levels covered by HSE Leadership,
e.g. Joint Mgt HSE Insp., Site Management Support
B Levels covered by Workforce Engagement
(ESS, Working Safely Workshops, Safety
Circles/Forum)
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Feedback to CEOs




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Feedback to CEOs
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• How can we
• become Catalysts for
• Improvement of
• HSE Performance ?

How can we contribute towards
achieving Target ZERO ?
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• Key Steps for improving Corporate Responsibility
• Develop and Implement HSE Management System
• Demonstrate Leadership Commitment
• Effective Workforce Engagement
• Evaluate HSE Culture of the organisation
• Convince and Empower the workforce to work SAFELY
• Recognise good performance

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He who does not learn from the mistake of others
is bound to repeat them !!!
A SAFE Business is a Good Business