Petroleum Development Oman L.L.C

GU-140

Petroleum Development Oman L.L.C.

Document: Contract HSE Management:

Document ID / GU-140 (Preparation for Contract C-09)
Document Type / Guidance
Security / Un-Restricted
Discipline / Management Safety & Environment
Document Owner / Head of Corporate HSE-SD
Month and Year of Issue / March 2012
Version / 3.9
Keywords / Minimum HSE standards in contracts

Copyright: This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of this document may be disclosed to others or reproduced, stored in a retrieval system, or transmitted in any form by any means (electronic, mechanical, reprographic recording or otherwise) without prior written consent of the owner.

Contract Holders: Do NOT Include this page in the Contract
/ Petroleum Development Oman LLC / Revision: 4.0
Effective: July 2012

DOCUMENT Authorisation

The following is a brief summary of the four most recent revisions to this document. The Document Custodian holds details of all revisions prior to these on file.

Revision No. / Date / Author / Scope / Remarks
Rev 3.9 / 01/03/2012 / CORPORATE HSE12 / Revision to reflect the changes in the PR1171 Part 1 and
Part II. The revision includes, Letter of Assurance, Life Saving Rules and a section 11 where the Contract Holder
may detail specific requirements.
2002 Issue
Rev 2.0 / 09/Oct/02 / CSM/1 / Revision to ensure consistency with SP1171 Part I and Part II. Chapters renumbered in logic sequence.
2002 Issue
Rev 1.0 / July 02 / CSM/1 / New format. Minor editorial changes. Document now in line with changes made to SP 1171 Part II. Advisory comments added for Contract Holders. New sections added on Commencement Certificate (formerly HSE Certificate) and STOP programme. Paragraph added on ‘obligations of Contractors under the General Conditions’. Consequence column deleted from Hazard Table in Section 2. Reference documents changed in line with new HSE-MS documents.
Note that this revision was NOT formally issued as a completed document. It was however included on the HSE-MS CD-ROM (Sept/2002).

User Notes:

The requirements of Appendix 1 (Document C-09 HSE Requirements) of this document are mandatory in PDO Contracts. They act as the enforceable contractual link to the Company’s applicable HSE Management System documentation. Non-compliance with these requirements shall only be authorised by CSM through STEP-OUT approval.

A controlled copy of the current version of this document is on PDO's Live Link. Before making reference to this document, it is the user's responsibility to ensure that any hard copy, or electronic copy, is current. For assistance, contact the Document Custodian CORPORATE HSE1

Users are encouraged to participate in the ongoing improvement of this document by providing constructivefeedback to the Document Custodian CORPORATE HSE1.

Related Business Processes & CMF Documents

Related Business Processes

Code / Business Process (EPBM 4.0)

Parent Document(s)

Doc. No. / Document Title
CP 122 / HSE Management System Manual

Other Related CMF Document(s)

Doc. No. / Document Title
PR 1171 Pt I & II / Contract HSE Management
PR 2010 Pt II / HSE Training Provision Approvals and Quality Assurance Procedure
SP 1157 / HSE Training Specifications
SP 2000 / Road Transport Specification
GU 673 / Core HSE Assessment System
PR1233 / Contract C&P Management

The related CMF Documents can be retrieved from the Corporate Business Control Documentation Register CMF.

Contents

Related Business Processes & CMF Documents

1.Introduction

1.1Purpose

1.2Scope

1.3Responsibility

1.4Review and Improvement

Appendix I: DOCUMENT C-09 HSE SPECIFICATIONS (minimum requirements)

1.Contractor’s HSE Management System & Contract HSE Management Plan

2.Hazard Effects and Management Process (HEMP)

3.HSE Training

4.Commencement Certificate

5.Performance Monitoring and Reporting

6.HSE Incidents

7.Site Restoration

8.HSE Non-Compliance Penalties

9.Behaviour and Assurance

10.Applicable Documents

11.PDO HSE Specific Details

Attachment 1 - Applicable Documents

Attachment 2: HSE Training Requirements

1.Introduction

1.1Purpose

This document provides guidance for PDO Contract Holders (and other contract personnel) in the preparation and use of the “C-09 HSE Requirements” section of PDO’s standard contract documentation i.e. HSE minimum requirements.

Appendix 1 provides the ‘pro-forma’ of Section C-09 which shall be made Contract Specific by the Contract Holder and/or Contract Engineer.

The purpose of Section C-09 of PDO’s ‘standard contract documentation’ is to:

• Act as the enforceable contractual link to PDO’s applicable HSE Management System documentation.
• Determine and highlight the hazards related to the execution of the Work and Services under the Contract. Define how those hazards will be managed so that risk is eliminated or minimized to ALARP (As Low As Reasonably Practical).
• Detail the requirements for Contractors to examine the proposed Scope of Works (Section C-4).

1.2Scope

All Work or Services under Contract to PDO shall conform to the “Document C-09 HSE Requirements” as detailed in Appendix 1 this document.

1.3Responsibility

Contract Holder

The Contract Holder shall review Appendix 1 “Document C9 HSE Requirements” of this GU-140 and modify, only where indicated, the text to become specific for each contract. Information relevant to Contract Holders is shown in text boxes, and is intended as guidance only to Contract Holders in compiling a contract specific HSE Specification.

Instructions and guidance to the Contract Holder in preparing the “Document C-09 HSE Requirements” for a Contract is included in procedure PR-1171 Part I and II.

The Boxes with italicised text SHALL be removed from C-09 by the Contract Holder and SHALL NOT be inserted in the contract. This text inside the box is intended as Guidance to the CH only in preparing C-09. TO BE DELETED BY CEBoxed italicised text shall be removed from C-9 by the Contract Holder and shall not be inserted in the contract. This text inside the box is intended as guidance to the CH only in preparing C9.

1.4Review and Improvement

Any user of this document who encounters a mistake or confusing entry is requested to immediately notify the Document Custodian CORPORATE HSE1.

This Guideline GU-140 (C-09) shall be reviewed every 2 years. However changes to the current version may be made in less than this period as the need arises, depending on the issue of new and relevant legislation and/or major organisational changes in PDO.

Appendix I: DOCUMENT C-09 HSE SPECIFICATIONS (minimum requirements)

This page is left blank intentionally and shall not be included in the Contract Document.

Page 1 of 19 / GU-140 (C09) HSE in Contracts Minimum HSE Requirements / Printed 26/06/12
The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED.
/ Petroleum Development Oman LLC / Revision: 3.9
Effective: March 2012

Petroleum Development Oman L.L.C.

DOCUMENT C-09

HSE Specifications (minimum requirements)

(Revision 4.0)

This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of this document may be disclosed to others or reproduced, stored in a retrieval system, or transmitted in any form by any means (electronic, mechanical, reprographic recording or otherwise) without prior written consent of the owner.

Related Business Processes & CMF Documents

1.Introduction

1.1Purpose

1.2Scope

1.3Responsibility

1.4Review and Improvement

Appendix I: DOCUMENT C-09 HSE SPECIFICATIONS (minimum requirements)

1.Contractor’s HSE Management System & Contract HSE Management Plan

2.Hazard Effects and Management Process (HEMP)

3.HSE Training

4.Commencement Certificate

5.Performance Monitoring and Reporting

6.HSE Incidents

7.Site Restoration

8.HSE Non-Compliance Penalties

9.Behaviour and Assurance

10.Applicable Documents

11.PDO HSE Specific Details

Attachment 1 - Applicable Documents

Attachment 2: HSE Training Requirements

All Work and Services executed as part of this Contract shall conform to the HSE Requirements as detailed in this section C9 of the Contract.

1. Contractor’s HSE Management System &
   Contract HSE Management Plan
2. The Contractor shall have a developed HSE Management System that is compatible with Company’s HSE Management System as described in CP-122 HSE Management System Manual Rev. 5.
3. The Contractor shall submit a Contract HSE Management Plan (HSE plan) describing the specific actions, programs and procedures that will be implemented by the Contractor to manage hazards associated with the execution of the Work and Services under the Contract.
4. The HSE Management Plan will include a completed HEMP review incorporating all activities in the scope of the contract (see 2 below).
5. The HSE Management Plan shall be developed in accordance with the Contract HSE Management Procedure PR-1171, Part II section 2.6.
6. The Contract HSE Management Plan shall cover all Contract Phases from mobilisation through execution, demobilisation and site restoration.
7. The requirements specified in this section C-09 apply regardless of the status of an activity (e.g. standing by or demobilised).
8. Contractor shall ensure that any person, admitted to site by the Contractor or Sub Contractor shall comply with the relevant HSE specification herein.
9. Hazard Effects and Management Process (HEMP)
10. The Company has reviewed the content of the Work/Services to be provided under the Contract and has identified activities/tasks and hazards that, as a minimum, should be considered by the Contractor when developing the contract HSE Management Plan (refer to Section 1 above). The format for the HEMP records is available in PR1171 Part II Appendix 6.

The activities and hazards identified shall include but not be limited to the following:

The Contract Holder shall list the activities hazards, undesirable events and Threats as below example, associated with the Contract. Refer to Task 2 of PR 1171 Contract HSE Management Part I It will be the responsibility of the Contractor to complete the exercise and detail Preventative measures, mitigation and risk ratings in the return HEMP submission. TO BE DELETED BY CE.

Activity / Hazard / Potential undesirable Events / Potential Causes (Threats)
Road transport Driving / Vehicle in Motion / Collision with objects, people, other vehicles / Poor visibility, speeding, road poor road conditions, mechanical failure
Working @ Height / People at height, objects at height / Dropped objects, falls / Tools not secure, scaffold collapse
Confined Space Working / absence of oxygen, presence of toxic gases (H2S) / Worker asphyxiated / Unauthorised entry, workers without training
Use of electrical Hand Tools / Electrical power / Electrocution / tools without correct plugs, damaged insulation
Construction Waste Collection / Nails sharp and heavy objects / Worker impacts with nail and receives puncture wound / Denailing of materials not managed,
Pressure testing / Air or liquid under pressure / Catastrophic release of contents / No test pack checks before activity,
Gas Welding / Flammable gas under pressure / Leak of gas and ignition / No gas flash back arrester, gas leaks, unsecured cylinders, welding or cutting near flammable fluids, fumes, open flame, arcing, UV light, heat stress,
Painting / Toxic fumes / Build up of toxic vapours in enclosed area / None or little ventilation, inappropriate respiratory protection, worker not aware of the risks
Chemical Cleaning / Toxic/Flammable/Harmful/corrosive material / Crude oil & diesel, paints & coatings, oils & greases, solvents, acids, mud chemicals, completion chemicals, cement, cement chemicals, shock cards, storage, shading
Catering / Bacteria / Chemical contamination of food / Untrained food handlers out of date medicals for food handlers/Lack of discipline in food delivery,
Well Intervention / High toxic high pressure Hydrocarbons / Release of hydrocarbon / Hydrocarbons at surface, high pressure, hydrogen sulphide, ionising radiation, naturally occurring radioactive materials, ignition sources, tubular, drill pipe and BHA handling, working out of direct sight (e.g. in the cellar)

2.2The Contractor shall prepare and implement comprehensive HEMP as part of the HSE Management Plan prior to Commencement of the Work or Services as per PR 1171 Part II Appendix 6.

1. HSE Training
2. The Contractor shall provide, as a minimum, HSE training for Contractor Personnel in accordance with the minimum HSE training requirements as listed in Attachment 2 of this C9 document.

3.2.Training Matrix – Contractor 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. Appendix 3 PR1171 Part II.

The Contract Holder shall insert into this C-09 (as Attachment II) the standard minimum HSE training requirements. The list shall be made specific for this contract by deleting courses that are not applicable.

Refer to SP 1157 HSE Training Specification for further information regarding HSE training requirements. TO BE DELETED BY CE.

3.3.The Contractor shall bear all costs of meeting the HSE training requirements of the contract.

1. Commencement Certificate

The Contract Holder shall sign the commencement certificate (reference PR1171 Part II Appendix 1) when the Contractor has confirmed that they are in a state of readiness to commence the work and presented the certificate to the CH for signature. The CH must be satisfied that all the control measures are in place for the complete scope of the contract or the discreet phase. In some cases the certificate maybe issued for a discreet phase e.g. mobilisation. In these cases make certain the certificate is clear as to what is permitted. Sign a Full certificate when satisfied. TO BE DELETED BY CE.

4.1.The Contractor shall not commence the Work or Services until the Company has issued the Commencement Certificate (as per PR 1171 Contract HSE Management Part II, Appendix 1).

4.2.The Contractor is reminded of the obligations under the General Conditions (Section C3). In addition, all activities, regardless of location and status, undertaken as part of the Work or Services provided under the contract, whether provided directly or by a SubContractor (including, but not limited to, material and equipment suppliers), are considered the responsibility of the Contractor. Compliance to the HSE requirements will apply equally to all activities related to the contract.

4.3.As a point of clarification the contract makes no differentiation as to the status of an activity whether being mobilised or demobilised or standing idle the HSE and any other contract requirements apply equally in all cases unless specifically stated otherwise.

1. Performance Monitoring and Reporting

The Contract Holder shall ensure that there is an agreed Company, HSE monitoring plan, in line with the requirements of PR1171 Part I Appendix 2. This should reflect the annual, monthly, weekly etc targets that have been agreed with the contract team. TO BE DELETED BY CE.

5.1.The Contractor shall regularly monitor HSE performance as per the agreed Contract HSE Management Plan and shall complete and submit the ‘Health and Safety Statistics - Monthly Return’ (Appendix 4 of PR 1171 Contract HSE Management Part II) to the Contract Holder. This should be submitted not later than 1600 hrs on the last day of the calendar month.

1. HSE Incidents

The Contract holder needs to ensure that the Contractor is aware of the recording and reporting of incidents including Near Miss reporting. The hard copy versions for reporting refer to PR1171 Part II Appendix 4. TO BE DELETED BY CE.

The Contractor shall report to Company and shall investigate all work-related HSE incidents, and comply with the requirements as outlined in the latest version of Company’s Incident Notification, Analysis, Reporting and Follow-up Procedure (PR 1418).

1. Site Restoration

Upon Completion of the Work or Services, the Contractor shall satisfactorily restore the Site, including any areas of the Company concession area and any premises thereon, used by the Contractor to perform the Work or Services.

The Company shall certify satisfactory completion by issuing a Site Restoration Certificate (Appendix 5 of PR 1171 Contract HSE Management Part II).

For contracts that do not include requirements for site restoration, the Contract Holder should amend this section as appropriate and indicate that a Site Restoration Certificate is not required. For certificate see PR1171 Part II Appendix 5 TO BE DELETED BY CE.

1. HSE Non-Compliance Penalties

The Contractor’s obligation to consistently adhere to the Contract’s HSE requirements is considered by PDO as being the direct responsibility of the Contractors’ supervisor and management. The clauses below are standard penalty clauses that are to be included. Adding incentive schemes (bonus) for good HSE performance is good practice and should be considered but the criteria for award MUST be robust. A sample Default form is available and can be referenced in PR1171 Part 1 Appendix B.TO BE DELETED BY CE.

8.1.Repeated failure by the Contractor to comply with contract HSE obligations may result in the removal from site of the relevant Contractor’s supervisory and/or managerial personnel.

8.2.In the event that the Company considers that the Contractor has failed to comply with the latest approved Contract HSE Management Plan, or other HSE Requirements, then Company shall issue the Contractor with an HSE Default Notice.

8.3.An HSE Default Notice is any written notification issued by the Company detailing specific aspects of the Works or Services that do not comply with either the latest approved Contract HSE Management Plan or other Contract HSE Requirements.

8.4.For each HSE Default notification the following amounts will become due to the Company:

HSE Default / Penalty
Single default / OMR 500/$1300 per day or per HSE Safety Default notice

For the purposes of this penalty clause:

8.5.Where an HSE Default Notice contains several incidences of default, each incident shall be considered as a separate HSE Default Notice.

8.6.Where HSE default persists for a period longer than 24 hours, then the applicable penalty shall be repeated for each subsequent 24-hour period that the default continues.

Where the repeated incidences of HSE default occur throughout the duration of the Contract then the following remedies are available to the Company:

HSE Default / Penalty
Repeated Recurrence / Increased supervision by the Company of the Contractor at the cost of the Contractor
Persistent non-conformance / Suspenion of Contractor and Suspension of Registration for the relevant Service Group of the Contract

1. Behaviour and Assurance
2. STOP

The Contractor shall fully implement a Safety Training Observation Programme, or Company approved equivalent, in accordance with the Company’s Specification SP 1259 STOP.

Contract Owner

The Contract Owner shall decide whether STOP TM or an equivalent programme shall be implemented in a contract or not.

As a general guide, STOP TM or an equivalent programme, shall be implemented in all contracts except those that are of a non-operational nature (e.g.: an insurance contract). Formal deviation not to implement STOP TM or an equivalent programme shall be given by the Service Group Custodian for the type of work covered in the contract. TO BE DELETED BY CE.