HSE EXHIBIT

LEVEL - 2

HEALTH, SAFETY AND ENVIRONMENT

SPECIFICATIONS

1.0GENERAL PROVISIONS

1.1All defined terms in this Exhibit shall have the same meaning as set out in the Contract unless otherwise stated. The general provisions as stated herein shall be in accordance to the terms and Conditions established in the Contract and ion particular in accordance and pursuant to Article 14 of the Contract.

1.2Any breach of the HSE Specifications established in this Exhibit shall be deemed by the Abraj to be a material breach of the terms of the Contract between the parties and the Abraj shall be entitled to take appropriate action including instructing the Contractor to (a) remedy the breach; (b) suspend Work or (c) terminate the Contract.

1.3Abraj reserves the right at all times to audit and review Contractor’s facilities, services and/or performance of its activities in respect of compliance with the accepted HSE Plan for the Work.

1.4Abraj reserves the right to suspend the Work or any part thereof if Contractor does not comply with the accepted HSE Plan at the risk of the Contractor. Before any Work is suspended Abraj shall liaise with Contractor to allow Contractor the opportunity to rectify any non-conformances within a timeframe acceptable to the Abraj. Any suspension shall be carried out in accordance with the terms of the Contract.

1.5Either party may, at any time, suspend the Work for HSE reasons; in such event where the Contractor elects to suspend the Work, Contractor shall immediately inform Abraj in writing of those reasons, and provide details of actions taken to mitigate, reduce, or eliminate the reason.

1.6It is expected that the Contractor shall have its own standards which apply to HSE matters and shall comply with them where applicable. Where these standards are not available, or in the reasonable opinion of Abraj, they fall below Abraj’sAbraj’s clients’ standards then Abraj shall have the right to issue its own Standards in force from time to time, to the Contractor, in order that the Contractor and subcontractors shall comply with these provisions.

1.7The requirements specified in this document apply regardless of the status of an activity (e.g. standing by or demobilised).

1.8Failure by Contractor to adhere to, demonstrate compliance with or ensure Contractor Personnel and subcontractor personnel comply with the Abraj’s HSE Exhibit or Standards may result in termination of the Contract.

2.0LEADERSHIP AND ACCOUNTABILITY

2.1Contractor shall ensure that all Contractors’ and subcontractors’ Personnel are briefed, understand and strictly adhere to the provisions of this Exhibit, and any appropriate Standards or Guidelines on HSE.

2.2Contractor’s management shall demonstrate leadership and commitment through actively participating in all aspects of HSE, supporting open dialogue and by allocating sufficient and competent resources to the Contract.

2.3Contractor(s) shall prepare a contract-specific organization chart showing personnel responsible for the implementation of HSE objectives.

2.4Contractor shall ensure that HSE responsibilities, authorities, accountabilities and competencies in relation to the Work are clearly defined, documented, communicated and exercised at all levels.

2.5Contractor shall set clear HSE goals, objectives and targets and ensure that performance is evaluated against them.

2.6Contractor(s) shall provide contract-specific HSE objectives and targets.

2.7Contractor shall formally review HSE performance in relation to the Work at regular and frequent intervals to ensure that objectives and targets are being met and areas of concern are addressed.

3.0POLICY AND STRATEGIC OBJECTIVES

3.1Contractor shall ensure that its own Health, Safety and Environment (HSE) Management System, its HSE policy and its HSE Plan are compatible with Abraj’sAbraj’s clients’ HSE Policy, Smoking, Alcohol and Substance Abuse Policy.

3.2Abraj forbids the use or possession of weapons, alcohol, and drugs. At all it’s Sites. Contractor shall comply and ensure that Contractor’s Personnel comply with Abraj’s requirements in this respect.

3.3Contractor shall ensure that its HSE policy and HSE Plan are available at base office, at all times, and shall ensure that all Contractor’s Personnel comply with the requirements of both the HSE Policy and the HSE Plan.

4.0HSE MANAGEMENT SYSTEM AND MANAGEMENT PLAN

4.1Contractor shall develop and document a Health, Safety and Environment interfacing document (bridging document) with the Abraj addressing the contractor’s HSE processes and procedures including emergency response procedures. The document shall be compatible with all statutory obligations, Abraj, guidelines and any project specific regulatory requirements.

4.2Contractor shall develop and document a Health, Safety and Environment Plan (HSE Plan) addressing the HSE risks and statutory/regulatory obligations specific to the Scope of Work set out in the Contract.

4.3Contractor shall comply with Abraj approvedLife Saving Rules requirements.

4.4The HSE Plan shall be submitted to Abraj for review and acceptance within thirty (30) days from the Effective Date of the Contract or before mobilisation to the Site (whichever is the sooner). The plan shall be updated annually.

5.0EVALUATION AND RISK MANAGEMENT

5.1Contractor shall ensure that, for its activities, a documented risk assessment register is in place and operating. A copy shall be issued to Abraj for review.

5.2Contractor shall give Abraj written notice within a reasonable timescale before the delivery or removal from the Site of any chemical or substance which is toxic or hazardous to health or potentially harmful to the environment. The notice shall identify the hazards and effects and assess the risks to personnel and the environment. Details of the precautions to be taken when using, handling, transporting, storing or any other means of contact will also be provided in the form of a “Material Safety Data Sheets” (MSDS).

5.3Contractor shall ensure that at all times that any potentially harmful chemical or substance is suitably packaged and labelled and has been assessed in accordance with the requirements of Control of Substances Hazardous to Health (COSHH Regulations), published by the UK Health and Safety Executive. PDO Chemical Management Manual can be used as reference.

5.4Contractor shall ensure that all workers are provided with all necessary Personal Protective Equipment (PPE) at the Site. This shall, as a minimum, meet Abraj and international standards.

5.5Contractor Personnel failing to use the appropriate PPE will be asked to use the appropriate equipment or stop Work immediately. If the Contractor Personnel fail to use the PPE Abraj may require them to stop Work and/or leave the Site immediately. Persistent repeated failures by Contractor Personnel to use appropriate PPE may result in Abraj requiring the Contractor to permanently remove the relevant Contractor Personnel from the Site and replace the Contractor Personnel without delay and at no extra cost to the Abraj.

6.0HSE COMPETENCY

6.1Contractor shall provide sufficient competent and appropriate manpower and supervision in its organisation; with clear responsibilities and reporting structure to ensure that HSE performance is not compromised.

6.2Contractor shall ensure its personnel are technically competent and experienced in the tasks assigned to them.

6.3Contractor shall ensure its personnel are medically, physically and mentally fit to carry out the duties to which they are assigned in respect of the Work, and be in possession of a certificate to Oman Society for Petroleum Services (OPAL) standard, (or equivalent) including a details of Contractor's medical screening programme.

6.4Contractor shall provide to Abraj a certified true copy of the aforesaid certificates prior to employment and, where applicable, any renewal thereof if so requested by Abraj.

6.5Contractor shall provide specialist HSE advice and supervision and respond to HSE issues when required by the Contractor or Abraj.

7.0HSE TRAINING

7.1Contractor shall ensure that no individual works at the Site unless said individual has received full induction training and maintain attendance record (HSE induction shall be carried-out by approved institute).

7.2Contractor shall operate HSE Passport System including the provision of original certificates or certified copies of original certificates/licences of individual Contractor’s personnel training/qualification for tasks assigned.

7.3Contractor(s) shall provide a matrix describing required training for contract activities (including refresher training) and maintain training records of staff employed on the contract. (Training records shall be sent to Abraj QHSE department along with monthly HSE report on monthly basis)

7.4All Contractor Personnel shall have completed the training before commencement of the Services, unless otherwise approved by the Abraj QHSE department in writing.

8.0SUBCONTRACTORS MANAGEMENT

8.1Contractor shall ensure that all its Subcontractors receive a copy of, and comply with the requirements of Abraj HSE procedures and the requirement of this exhibit.

8.2Contractor shall provide all its personnel and Subcontractors with basic relevant health, safety and environmental rules; these shall be based on and developed from Abraj’s Policies, Standards and Guidelines, and a copy provided to Abraj for review.

8.3Contractor shall ensure that all its Subcontractors are incompliance with Abraj & Abraj’s clients’ updated version of HSEprocedures, Specifications and Standards.

9.0HSEPROCEDURES & LEGISLATION

9.1Contractor shall comply with, and shall be able to demonstrate compliance with:

  • Relevant and applicable health, safety and environmental Legislation and in particular Omani Regulation of Occupational Safety and Health for Establishment Governed by the Labour Law (MD 286/2008) and Ministry of Environment and Climate Affair Regulations and Decisions;
  • Contractor’s own corporate and project specific policies and procedures;
  • OPAL Standards in particular the Road Safety Standard (DOCUMENT ID - OPAL-STD-HSE-01).
  • Abraj & Abraj’s clients’ updated version of HSE Policies, procedures, Standards and Guidelines.

10.0PLANNING AND PROCEDURES

10.1Contractor shall provide written operating procedures to cover related hazardous operations. These will be available to all Contractor’s Personnel and Subcontractors. A copy shall be provided to Abraj for review.

10.2Contractor shall abide by either Abraj permit to work system.

10.3Contractor shall ask for step-out approval from Abraj in case if required which may cause a deviation from Abraj or Abraj’s clients procedure.

10.4Contractor shall ensure the establishment and implementation of emergency procedures related to the Work.

  • If required by Abraj, Contractor shall participate in an emergency response exercise. Abraj shall arrange this exercise unless, at its sole option, Abraj requires Contractor to organise it.

10.5Contractor shall ensure that all tools, appliances, machines, vehicles or other equipment, are in safe working condition at all times and comply with current regulations and, where appropriate, are used only by authorised and competent persons trained in the use of such equipment. This requirement is to include all emergency response lifesaving equipment.

10.6Contractor shall ensure that all Contractors’ Personnel shall abide by all health, safety and environmental rules of Abraj at the Site.

11.0HSE COMMENCEMENT CERTIFICATE

11.1Contractor shall issue to Abraj Letter of Assurance of HSE compliance. The Letter shall include HSE MS gaps analysis and improvement action plan.

11.2Contractor shall not commence the services until the Letter of Assurance is issued to and approved by Abraj and Abraj has issued to the Contractor the HSE commencement certificate.

12.0GENERAL HSE REQUIREMENTS

  1. OCCUPATIONAL HEALTH

12.1The Contractor shall carry out the necessary health surveillance.

12.2Contractor shall ensure its personnel have undergone through pre-employment and periodic medical examination every two years.

12.3Contractor shall maintain first aid facilities for use of Contractor’s Personnel and those of its Subcontractors if applicable.

  1. ENVIRONMENT (if applicable)

12.4Contractor shall comply with Abraj & Abraj’s clients Environmental Management Plan and all project specific environmental requirements.

12.5Contractor shall protect environmental resources by applying best available techniques, known as “BAT”, to preferably eliminate, or minimise any direct or indirect impact from operations.

12.6Contractor shall ensure that all activities are planned in a manner that will not create unnecessary danger, disturbance or effects on the environment or to other users.

12.7Contractor shall minimise, nuisance, disturbance or interference to the community, their activities, and other users of the environment;

12.8Contractor shall unless otherwise directed by Abraj, avoid conducting activities in protected areas or where there is an unacceptable risk of damage to sensitive environmental resources;

12.9Contractor shall ensure that fishing, hunting and gathering of flora and fauna or any other environmental resources are strictly prohibited within the area impacted by the Work.

12.10Contractor shall where applicable be responsible for restoration of any land used or affected by Contractor’s activities under the Contract. This will include removal of Contractor’s equipment, surplus materials and waste to the satisfaction of Abraj Representative.

12.11Where Contractor is responsible for disposal of any waste produced or occurring as a consequence of its operations pursuant to the Contract, all such disposals shall be in accordance with all legislation, Abraj standards and best practice whether that shall be for hazardous waste or non-hazardous waste. Contractor shall ensure that all necessary approvals or licences are obtained and that any Subcontractors utilised for this purpose fully comply with such requirements. Contractor shall provide Abraj with a copy of each waste transfer note.

12.12Contractor shall notify Abraj in writing of the method for managing disposal of all hazardous waste and gain approval therefore before commencing such disposal. Contractor shall not deviate from agreed disposal methods without prior Approval from Abraj.

12.13Contractor shall, where applicable, be responsible for measuring, monitoring and reporting environmental emissions in line with all legislation and Abraj requirements.

  1. IMPLEMENTATION AND PERFORMANCE MONITORING

12.14Contractor shall establish an HSE performance monitoring programme and provide a copy of the monitoring programme, and regular reports to Abraj.

12.15Contractor shall report all incidents in accordance with Abraj requirements, the definitions of incidents shall be in accordance with Abraj Incident Notification & Investigation procedures.

12.16Contractor shall monitor HSE performance and shall complete and submit the “Health and Safety Statistics” to Abraj QHSE Department on monthly basis using the template in Appendix 1, report monthly HSE information.

  1. INCIDENT INVESTIGATION

12.17Contractor shall comply with Abraj’sIncident Notification & Investigationrequirements.

12.18Contractor shall provide Abraj with a copy of any report or statement or written evidence concerning any accident, medical condition, dangerous event or near miss which occurs during the performance of the Work or any other information indicating the existence of adverse health, safety, security or environmental conditions of which Contractor’s Personnel may become aware within twenty four (24) hours of the incident.

12.19Contractor shall report fatalities immediately. All incidents with a severity of a Lost Time Injury (LTI) or worse, including Restricted Workday Cases (RWC) shall be immediately notified to Abraj in writing, be subject to full root causes investigation and detailed reports provided to Abraj within seven (7) days of the incident. Abraj reserves the right to participate in any incident investigation carried out in connection with the Work

12.20Contractor shall document and report immediately to Abraj any incidents of environmental damage, any unforeseen activity or event which could have led to environmental damage, uncontrolled release of hydrocarbons, breaches or potential breaches of environmental regulations or complaint from local groups, organisations including enforcement agencies or individuals;

13.0AUDITING AND REVIEW

13.1Abraj reserves the right to conductHSE audit/inspection.

13.2Contractor shall provide all input and support as Abraj deems necessary to successfully carry out and the actions arising from all audits and reviews to ensure that all identified issues are closed out to Abraj’s satisfaction. Contractor’s personnel shall be available for interview as part of any Company audits and reviews.

13.3Before commencement of the Work, as part of its pre and post award HSE Management process, Abraj may, at its sole option, conduct an audit to satisfy itself of Contractor’s arrangements regarding HSE matters. Contractor shall co-operate fully with the audit team and correct any agreed deficiency noted without undue delay and in any event before Wok commences

13.4Upon request, Contractor shall supply Abraj with copies of all reports and documents regarding HSE matters that it is required by legislation to maintain together with such other reports and information as Abraj may require.

13.5Contractor shall provide a report on HSE performance during the contract, as part of the contract close-out documentation

14.0HSE Non-Compliance Penalties

14.1Repeated failure by Contractor to comply with the Contract HSE obligations may result in the removal from Site of the relevant Contractor’s supervisory and/or managerial Personnel.

14.2In the event that Abraj considers that Contractor has failed to comply with the latest approved Contract HSE plan, or other HSE requirements, then Abraj shall issue Contractor with an HSE default notice.

14.3An HSE default notice is any written notification issued by Abraj detailing specific aspects of the Services that do not comply with either the latest approved Contract HSE management plan or other Contract HSE requirements.

14.4For each HSE default notification an amount of 3% from the monthly invoice value will become due to Abraj.

14.5For the purposes of this penalty clause:

a)Where an HSE default notice contains several incidences of default, each incident shall be considered as a separate HSE default notice.

b)Where HSE default persists for a period longer than twenty-four (24) hours, or any other period as stated in the HSE default notice, then the applicable penalty shall be repeated for each subsequent twenty-four (24) hour or other specified period that the default continues.

14.6Where repeated HSE default notices are served by Abraj relating to the same HSE default then the following remedies are available to Abraj:

HSE Default / Penalty
Repeated Occurrence
(three or more default notices for the same default) / Increased supervision by Abraj of Contractor at the cost of Contractor
Persistent non-conformance
(five or more default notices for the same default) / Suspension of Contractor and suspension of Contractor’s registration for the relevant service group of the Contract

15.0Applicable documents

11.1The contractor shall comply with the requirement of the Abraj HSE Management system and the latest version of all HSE documents.

11.2Any new QHSE policies procedure, standards, guidelines is introduced by Abraj or clients shall be applicable to the contractor.