Health, Safety, Security and Environment

EXHIBIT – F

LEVEL - 1

HEALTH, SAFETY, SECURITY 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’s & Abraj’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’s & Abraj’s clients’ HSE Policy, Smoking, Alcohol and Substance Abuse Policy, Driving policy, Strategic Objectives and HSE Management System

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 the Site, at all times, to all Abraj’s Personnel and Contractor’s and subcontractor’s Personnel in their working languages, 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 have a developed HSE management system covering all activities under the Contract.

4.2Contractor shall develop and document a Health, Safety and Environment interfacing document (bridging document) with the Abraj addressing the contractor’s HSE management systems, processes and procedures including emergency response procedures. The document shall be compatible with all statutory obligations, Abraj, guidelines and any project specific regulatory requirements.

4.3Contractor 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. The HSE Plan should also detail the management controls to eliminate, reduce or mitigate these risks and to ensure full compliance with all regulatory requirements.

4.4The HSE Plan shall address the HSE risks and requirements of all phases of the Work through mobilisation, execution and demobilisation at each location where the Work will be performed (including but not limited to the office, factory, fabrication yard, construction site, vessel, offshore installations) known as the Site. The HSE Plan shall demonstrate how risks to all personnel and the wider environment have been identified and have been reduced to as low as reasonably practicable, (ALARP).

4.5The HSE Plan shall contain the list of HSE deliverables along with a schedule for their completion.

4.6Contractor shall comply with Abraj approved Life Saving Rules requirements.

4.7The 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.

4.8Contractors shall comply with Abraj’s updated procedures, policies and standards.

5.0EVALUATION AND RISK MANAGEMENT

5.1Contractor shall ensure that, for its activities, a documented risk assessment procedure and risk register are in place and operating. This risk assessment procedure shall be suitable and sufficient to appropriately assess the health, safety and environmental risks involved. 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, ensuring:

• Contractor provides sufficient numbers of experienced HSE advisors on Site, covered by the Contract.
• Contractor formally demonstrates the level of competence of all HSE advisors/representatives and accords these advisors appropriate levels of authority which shall be communicated to Abraj.

7.0HSE TRAINING

7.1Contractor shall provide for all Contractors’ Personnel involved in the Work induction training comprising of an Employee Orientation Training Programme to the Site and training regarding the requirements of the HSE Plan including auditable attendance record.

7.2Contractor shall ensure that no individual works at the Site unless said individual has received full induction training.

7.3Contractor 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.

7.4Contractor shall be responsible for, and implement competency based HSE training of Contractor’s Personnel and shall take account of and integrate training requirements with Abraj’s requirements and Policies, Standards and Guidelines as may be advised from time to time.

7.5Contractor(s) shall provide a matrix describing required training for contract activities (including refresher training) and maintain training records of staff employed on the contract.

7.6Contractor shall at all times maintain an up-to-date list of all Personnel employed under the Contract, and details of the training courses they have attended, including the attendance date (Training records shall be sent to Abraj QHSE department along with monthly HSE report on monthly basis)

7.7All Contractor Personnel shall have completed the training before commencement of the Services, unless otherwise approved by the Abraj QHSE department in writing.

8.0HSE COMMUNICATIONS

8.1Contractor shall establish a mechanism for communication and feedback of HSE issues and performance among Contractor Personnel on the Site and to Abraj.

• Contractor shall establish an effective structure and schedule for HSE meetings involving all Contractors’ Personnel assigned to the Work, to promote communication and involvement in HSE matters.
• Abraj reserves the right to participate in such meetings.

8.2Contractor shall, where applicable, ensure before commencing operations pursuant to the Contract that all companies, organisations and communities that could potentially be affected by such operations have been notified and when/where necessary carried out a suitable consultation process. At the Site the Contractor shall ensure that effective toolbox talks are undertaken. Where shift work is in operation clear communications between shift workers such as shift handover notes and face to face handover shall be enforced.

8.3Where applicable, Contractor’s arrangements for emergency communications shall be integrated with the requirements of the Abraj and/or the Site and/or local or national or international support services.

9.0SUBCONTRACTORS MANAGEMENT

9.1Contractor shall ensure that all its Subcontractors receive a copy of, and comply with the requirements of the HSE bridging document and HSE Plan accepted by Abraj and are provided with a copy of this Exhibit.

9.2Contractor 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.

9.3Contractor shall ensure that all its Subcontractors are incompliance with Abraj & Abraj’s clients’ updated version of HSEprocedures, Specifications and Standards.

10.0HSEPROCEDURES & LEGISLATION

10.1Contractor 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.
• Comply with approved interface document (shall be completed before commencement of operations).

11.0PLANNING AND PROCEDURES

11.1Contractor shall provide written HSE procedures to cover hazardous operations. These will be available to all Contractor’s Personnel and Subcontractors in their working language. A copy shall be provided to Abraj for review.

11.2Contractor shall abide by eitherAbraj permit to work system or approved permit to work system when carrying out Work on Site.

11.3Contractor shall ask for step-out approval from Abraj in case if required which may cause a deviation from Abraj or Abraj’s clients procedure.

11.4Contractor shall ensure the establishment and implementation of emergency procedures related to the Work. Contractor shall consult with Abraj to ensure appropriate interfaces with Abraj procedures.

• Contractor shall ensure competency of Contractor’s and subcontractor’s Personnel in its emergency response procedures through a programme of drills and testing, and shall provide to Abraj a record of attendance for each employee.
• 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.

11.5Contractor 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.

11.6Contractor shall ensure that all Contractors’ Personnel and Subcontractor’s Personnel shall abide by all health, safety and environmental rules of Abraj at the Site.

12.0HSE COMMENCEMENT CERTIFICATE

12.1Contractor shall issue to Abraj Letter of Assurance of HSE compliance. The Letter shall include HSE MS gaps analysis and improvement action plan.

12.2Contractor 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.

13.0GENERAL HSE REQUIREMENTS

1. OCCUPATIONAL HEALTH

13.1Contractor shall carry out a Health Risk Assessment process and register to identify and adequately control adverse impacts of Work activities on worker’s short and long term health.

13.2Contractor shall also establish an occupational health programme appropriate for the Site conditions and shall provide details to Abraj.

13.3The Contractor shall carry out the necessary health surveillance.

13.4Contractor shall ensure its personnel have undergone through pre-employment and periodic medical examination every two years.

13.5Contractor shall maintain first aid facilities for use of Contractor’s Personnel and those of its Subcontractors.

1. ENVIRONMENT

13.6Contractor shall comply with Abraj & Abraj’s clients Environmental Management Plan and all project specific environmental requirements.

13.7Contractor shall protect environmental resources by applying best available techniques, known as “BAT”, to preferably eliminate, or minimise any direct or indirect impact from operations.

13.8Contractor 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.

13.9Contractor shall minimise, nuisance, disturbance or interference to the community, their activities, and other users of the environment;

13.10Contractor 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;

13.11Contractor 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.

13.12Contractor 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.

13.13Where 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.

13.14Contractor 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.

13.15Contractor 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

13.16Contractor shall establish an HSE performance monitoring programme and provide a copy of the monitoring programme, and regular reports to Abraj.

13.17Contractor shall report all incidents in accordance with Abraj requirements, the definitions of incidents shall be in accordance with Abraj Incident Notification & Investigation procedures.