strategic
objectives
organisation,
resources and
documentation
review
leadership
and
commitment
evaluation
and risk
management
implementation
and monitoring
planning
a u d i t
IMCA
ublications
Global experience
The International Association of Oil & Gas Producers (formerly the E&P Forum) has
access to a wealth of technical knowledge and experience with its members operating
around the world in many different terrains. We collate and distil this valuable knowledge for the industry to use as guidelines for good practice by individual members.
Disclaimer
Whilst every effort has been made to ensure the accuracy of the information contained in this
publication, neither the OGP nor any of its members will assume liability for any use made
thereof.
Copyright OGP
Material may not be copied, reproduced, republished, downloaded, posted, broadcast or
transmitted in any way except for your own personal non-commercial home use. Any other
use requires the prior written permission of the OGP.
These Terms and Conditions shall be governed by and construed in accordance with the laws
of England and Wales. Disputes arising here from shall be exclusively subject to the jurisdiction of the courts of England and Wales.
These guidelines have been prepared for OGP by the Safety, Health and Personnel Competence Committee (SHAPCC),
through its Contractor HSE Task Force, in consultation with the International Association of Geophysical Contractors
(IAGC), and the International Marine Contractors Association (IMCA), who both endorse the use of these guidelines.
Arco
R Moschetta
Arco
C Preston
Baker Hughes
R Shields
BG Plc
D Laing
BP Amoco
ER Moir
BP Amoco
L Simpson
BP Amoco
M Alexander
Chevron
TL Thoem
Conoco
Y Guenard
Elf E&P
JL Monopolis
Esso
D Krahn
IADC
M Covil
IAGC
JC Sanchez
PDVSA
B Stene
Saga Petroleum
A Kjelaas
Saga Petroleum
G Kubala
Schlumberger
P Mann
Shell
R Sykes
Shell
Shell
HJ Grundt
Statoil
P Guyonnet
Total
LA Tranie
Total
DK Hide
OGP
Chairman
Chairman
Secretary
Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of Technical Editor to
review and address comments and suggested amendments.
Table of contents
Purpose/Intent..................................................................................................................................................................... ii
Description ....................................................................................................................................................................... ii
Introduction
Overview of process
Planning
3.1
3.2
3.3
3.4
3.5
Objectives......................................................................................................................................................................4
Description of work .......................................................................................................................................................4
Risk identification .........................................................................................................................................................4
Contracting strategy ......................................................................................................................................................5
Contract schedule ..........................................................................................................................................................6
Pre-qualification
4.1
4.2
4.3
4.4
4.5
Objective .......................................................................................................................................................................7
Purpose and responsibilities...........................................................................................................................................7
Standard pre-qualification documents ...........................................................................................................................7
Screening .......................................................................................................................................................................8
From pre-qualification to selection ................................................................................................................................8
Selection
5.1
5.2
5.3
5.4
5.5
5.6
Objective .......................................................................................................................................................................9
Bid documentation prepared by company .....................................................................................................................9
Bid preparation by contractor ......................................................................................................................................10
Pre-award meetings .....................................................................................................................................................10
Incentive schemes for HSE ..........................................................................................................................................11
Contract award ............................................................................................................................................................11
Pre-mobilisation activities
12
6.1 Objectives....................................................................................................................................................................12
6.2 Kick-off meeting..........................................................................................................................................................12
6.3 Pre-job audits...............................................................................................................................................................13
Mobilisation
14
7.1 Objectives....................................................................................................................................................................14
7.2 General ......................................................................................................................................................................14
7.3 Mobilisation audit .......................................................................................................................................................15
Execution
16
8.1
8.2
8.3
8.4
8.5
Objectives....................................................................................................................................................................16
Responsibilities ............................................................................................................................................................16
Contractor compliance ................................................................................................................................................16
Competence assurance.................................................................................................................................................17
Inspection and HSE auditing/reviews .........................................................................................................................17
De-mobilisation
18
9.1 Objectives....................................................................................................................................................................18
9.2 Responsibilities ............................................................................................................................................................18
10
19
10.1 Objectives....................................................................................................................................................................19
10.2 Final evaluation and report..........................................................................................................................................19
APPENDIX I: HSE responsibilities for company and contractor key personnel................................................................ 20
APPENDIX II: Definition of consequence - severity of risk .............................................................................................. 22
APPENDIX III: Contractor HSE pre-qualification............................................................................................................24
APPENDIX IV: HSE pre-qualification points system ........................................................................................................29
APPENDIX V: HSE Plan guideline for major contracts.....................................................................................................33
APPENDIX VI: HSE Plan guideline for small contracts....................................................................................................50
2000 OGP
Purpose/Intent
The overall objective of this guideline is to improve
the company and contractor health, safety and environmental (HSE) performance regarding exploration and
production activities. Active and ongoing participation
by both the company and contractors are essential to
achieve this goal. While each has a distinct role to play
in ensuring the ongoing safety of all involved, there is an
opportunity to further enhance the company/contractor
relationship by clearly defining roles and responsibilities, establishing expectations and maintaining communication throughout the relationship. For example,
one role of the company is to review and assess the contractors HSE Management System and Programmes,
while one role of the contractor is to provide HSE information as requested by the company. Often the information requests vary from company to company. By
establishing a standard format, which streamlines the
bidding process, company and contractor resources can
be devoted to improving specific HSE issues.
This guideline is designed to:
1 improve workplace safety, health and environmental performance by assisting the company and contractors in administering an effective HSE program
for the contract;
Description
The main section of the document covers various phases
of the contracting process and the associated HSE tasks
and responsibilities of the company and contractors.
This is an eight-phase process, which begins with planning, and ends in final evaluation and close out. The
objectives, roles and responsibilities are defined for each
phase.
ii
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1 Introduction
1.1
Background
Figure 1
1200
1000
800
Manhours Contractor
600
400
Manhours Company
200
0
1985
1987
1989
1991
1993
1995
1997
These guidelines have been produced to assist management of the company-contractor interface in this
changing environment and to help in the achievement
of further joint improvements in safety performance.
Figure 2
10
Overall
8.1
Company
Contractor
6.6
6.1
5.2
4.7
4.1
4
3.4
2.5
1989
1990
2.8
1991
3.3
1992
3.9
3.1
3.0
1993
2.5
1994
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3.0
2.7
2.6
2.0
1995
1996
2.0
1997
1.9
1998
This effort has utilised and built upon the E&P Forums
Guidelines for the Development and Application of
Health, Safety and Environmental management systems; and the API recommended practices documents
2220 and 2221, which address contractor-client interactions and how to build an effective contractor HSE
program. Additional influences are the UK Health and
Safety Executive publication, Successful Health and
Safety Management; the U.S. Occupational Safety and
Health Administrations Process Safety Management
Guidelines; the ISO 9000 and 14000 systems; and
numerous E&P Forum Member programs.
These guidelines were developed for the normal activities expected in E&P operations. Each operation is,
however, unique. Therefore, the user should critically
evaluate these guidelines for his activities and their associated risks, and may need to adapt them for the particular circumstances of the work.
This guidance is primarily developed for those responsible for contracting out activities, and personnel responsible for interface and operational oversight of contractors,
their employees and subcontractors.
This guidance document is mainly for activities with a
medium to high risk although similar principles may be
applicable to all contracted activities.
These guidelines in no way supplant a host countrys
requirements.
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2 Overview of process
Management of HSE in a business environment where
two or more companies work together requires co-operation between them and a clear definition of the tasks
and responsibilities of each of the parties.
Figure 3
Company
Description of work &
risk identification
Planning
Contracting strategy
Contractor responds to
questionnaire and
provides HSE information
Shortlist and
screen contractors
Contractor prepares
bid and HSE plan
Bid evaluation
and clarification
Establish bid
evaluation criteria
Pre-qualification
Contractor
database
Selection
Contract award
Pre-mob audits
Mobilisation
Kick-off meeting
Mobilisation
Pre-execution audit
Execution, supervision
and reporting
Monitoring, audits
and inspection
Execution
De-mobilisation
Acceptance of work
and restored site
De-mobilisation
Close-out
Review
Report
Pre-mobilisation
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Planning
3.1 Objectives
The objectives of this phase are to describe the work
and to assess the HSE risks associated with the work.
The contracting strategy is to be selected on the nature
and size of the work, and the risk involved.
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Figure 4
Increasing probability
B
Assets
No health
effect/injury
No
damage
Reputation
People
Environment
Severity
No effect
No
impact
Slight
Slight health
effect/injury damage
Slight
effect
Slight
impact
Minor
effect
Limited
impact
Single
fatality
Major
damage
Major
effect
Happens
Incident has
Happens
occurred in several times several times
our company per year in per year in a
our company location
Incorporate risk
reduction measures
National
impact
Intolerable
5
Multiple
fatalities
Extensive
damage
Massive International
impact
effect
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Operations too large or diverse for a single contractor may require a number of contractors and subcontractors (a consortium) to work together under
the supervision of one main contractor working for
the company under Mode 2.
The work is intimately associated with the activities
of the company, or presents such a high risk to the
company that the work is to be executed using the
companys management system under Mode 1.
The contractor executes most aspects of the job
under its own HSE Management System; however,
certain support activities such as transportation and
emergency response are provided by the company.
A Drilling Contractor is responsible for identifying and supplying personal protective equipment
to its personnel. A Fluids Contractor designs the
mud program for the Operator, with new additives
included in the well plan. In this case the company
has an interface procedure that details the responsibilities of the drilling contractor and requires the
fluid contractor to provide chemical hazard information to the Operator and drilling contractor
before shipping the materials. The interface procedure further requires the on-site fluids engineer
to communicate chemical hazards during the prespud meeting.
Also, when working with an alliance of contractor(s) or a
consortium, it should be made clear in advance whether
the alliance or the lead contractor is fully responsible
for all instructions and supervision or whether that is
the responsibility of the company. If the alliance or consortium is responsible, it should be made clear in the
contract how this is organised. In addition, the person
responsible for critical activities has to be clearly identified. Joint responsibilities should be avoided by breaking down the work into smaller identifiable activities,
each with a party assigned to it with responsibility for
the HSE aspects.
Usually Mode 2 is preferred except in High Risk situations where the work is highly interactive with companys activities.
Example:
On an offshore production platform, a modification
requiring welding and grinding has to be made in a
hazardous area. This is considered a High Risk operation. Moreover, the essential controls and emergency
response are arranged by the company. Typically Mode
1 would be used.
Example:
A consortium of contractors with one lead contractor
is responsible for the construction of a new onshore
production facility. Construction activities are always
High Risk. However, until the moment that hydrocarbons are introduced, the lead contractor can be held
accountable for managing all aspects of the job provided the construction contractor can demonstrate its
capability to manage all HSE aspects. Typically Mode
2 would be used.
Low Risk contracted operations, e.g., deliveries of
non-critical materials, food, stationery, etc., are usually
covered by Mode 2 whereby the contractor provides the
HSE controls. Usually the company controls on such
low risk activities are minimal and Mode 2 is typical.
However, contractors working on company premises are
normally under the control of company personnel and
should follow company instructions.
Issues in setting a contract strategy might include:
number of contracts, contract schedule, rules and regulations, and the use of company HSE standards and/or
relevant national HSE legislation and international conventions.
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4 Pre-qualification
4.1 Objective
The objective of the Pre-qualification phase is to screen
potential contractors to establish that they have the necessary experience, capability and financial viability to
undertake the activities in question safely and in an
environmentally sound manner.
Of special importance is the management by contractors of their subcontractors and the need for the main
contractor to demonstrate understanding and commitment to having full responsibility in this area. Similarly,
when contractors are working in an alliance or consortium, it is of special importance to demonstrate that
each entity fully understands, and is committed to, the
HSE management of the assigned HSE critical activities.
A points system method, which minimises subjective
judgement, may be used to evaluate contractors submissions. Contractors who achieve a pre-defined acceptable
score will then be judged to have met the HSE pre-contract requirements. Appendix IV provides guidelines for
such a rating system.
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4.4 Screening
The screening process should be designed to assure that
the contractors invited to bid can perform the work to
the required HSE criteria.
The general approach is to send a uniform questionnaire to all potential contractors, initially assess their
HSE capabilities based on the questionnaire using an
equitable measuring system (see Appendix III) and supplementing this with site inspections of current contractor work sites.
Contractors which have been used by the company previously can be assessed through the use of close out
reports and other historical records. A review of any
potential changes to the contractors organisation, programmes and systems should also be conducted.
During pre-qualification of large contractors, especially
those with many divisions in numerous countries, the
use of the record of the Corporation may not be appro-
priate. In such a case, the focus should be on the division bidding for the work.
For those contractors not qualifying, a feedback mechanism should be in place to inform them why they did
not qualify and that by correcting the identified deficiencies; they may qualify for future work.
Where there is a policy to encourage selected contractors to develop an HSE management Plan, and these
contractors have little or no background in HSE management, then a plan to overcome the shortcomings
should be developed. Such a plan may require additional company supervision, more explicit procedures
or additional training. The HSE requirements should
be met before work commences. The scale of the contract and the exposure must be matched accordingly.
Again, the details of the program and performance of
such contractors should be recorded and retained for
future reference.
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5 Selection
Pre-qualification is the most important screening tool
for the selection of contractors. All contractors that are
pre-qualified should be fully capable of managing all
HSE aspects of the job.
5.1 Objective
The objective of the selection phase is to assess whether
the HSE Plan and the Bid Evaluation Criteria have been
met and to select, where necessary on the basis of clarification meetings, the successful bidder.
2000 OGP
In preparing their bid, the contractor should demonstrate compliance with such requirements and illustrate
their process for preparing their own HSE Plan within
the required framework. The actual plan will be developed after the contract is awarded. This may be accomplished by developing a system which facilitates the
interfacing of company, contractor and sub-contractor
activities, as described in section 3.5 of OGPs Guidelines for the development & application of health,
safety and management systems. Contractors should
be allowed the freedom to use industry HSE
guidelines/recommended practices/standards, e.g., those
of the International Association of Drilling contractors
(IADC) or International Association of Geophysical
contractors (IAGC), or the International Marine Contractors Association (IMCA), or of OGP, API and
IMO, if they are equivalent to or exceed the companys
be made by the contractor on the approach to managing these interactions and the allocation of responsibilities for overlapping areas.
The interface document should demonstrate that both
parties have the necessary procedures (e.g., Permit to
Work, Hazard and Risk Assessment, Operating Instructions, Contingency Plans) and controls in place to
achieve the work program without compromising HSE
performance. These systems should be harmonised
where possible to minimise the potential for misunderstanding.
If there is a considerable amount of time between prequalification and the bid submission, contractors should
be asked to provide evidence of documenting their current HSE systems and performance.
10
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be proactive and reward effort, eg, audits and follow-up rather than after the event statistics.
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11
Pre-mobilisation activities
6.1 Objective
The objectives here are to ensure that the relevant
aspects of the contract risk assessment and any other
HSE aspects of the contract are communicated and
understood by all parties prior to implementation of
the contract. Several activities such as reviews, meetings
and audits can be used. The amount of detail and effort
for pre-job activities should be commensurate with the
level of risk.
12
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HSE equipment
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13
7 Mobilisation
7.1
Objectives
7.2 General
Prior to mobilisation, it is likely that the full HSE
Plan is known only to the principal members of the
companys and contractors project management teams.
During mobilisation, the HSE Plan should be communicated by the management of both the company and
the contractor to all relevant personnel.
In the mobilisation phase some of the principal activities are:
local kick-off meeting(s)
mobilisation of contract staff and equipment
finalise the contractors HSE Plan
commence induction and site-specific training
hold mobilisation HSE audit.
During mobilisation the company and contractor assure
that each sets up a method of operation that is in accordance with the agreed HSE Plan. It is at this stage that
implementation of the HSE Plan by the contractor formally begins. For contracts under Mode 1 strategy,
the contractors operations should be fully compatible
with the companys HSE-MS. For contracts under a
Mode 2 strategy, any HSE Plan requirements should
be integrated into the contractors HSE-MS.
The company and contractor should confirm that each
has deployed his supervisory staff and is implementing
the agreed-upon briefing and training for his supervisors and employees.
14
Depending on the circumstances, additional supervisory staff from the contractor may be required to allow
rapid set-up and implementation of the HSE Plan.
The company and contractor may want to have additional staff available to verify that the HSE Plans are
fully implemented. This can be accomplished by a joint
company/contractor HSE field review or audit.
During the initial part of the mobilisation phase all
key personnel assigned to the project should attend an
HSE orientation program that should be used to communicate the HSE Plan and any other significant HSE
aspects of the contract.
Progress meetings should then be used as a formal
method of reviewing HSE implementation, along with
frequent walk-throughs by company personnel.
Aligning the various interests and areas of responsibility
requires good working relationships between the company and contractors, among contractors and between
contractors and sub-contractors. This is particularly
true if the subcontractor activities are difficult to monitor (e.g. distributed work groups, transportation).
Once mobilisation activities have commenced, the
company should begin monitoring of the contractors
pre-execution activities to assure the HSE Plan is implemented.
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Serious omissions: the option of withholding permission to proceed or even terminating the contract
may be necessary.
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15
Execution
8.1 Objectives
The objectives of this phase are to assure that the work
to be performed is conducted according to the agreedupon HSE Plan, and that additional HSE needs, identified during the work, are properly addressed.
8.2 Responsibilities
The nature of the work determines the level of supervision necessary. For example, within or in close proximity
to operating plant, hazardous area zones or acknowledged high risk operations, more direct company supervision may be required than on a new construction site
or the contractors own premises, i.e. MODU, lay barge,
etc. Only in particular circumstances should contractors
be directly supervised because too much instruction/
direction from the client tends to relieve the contractor
of the responsibilities stipulated in the contract.
Where responsibility for supervision rests with the contractor, the companys role should be to monitor compliance to contractual terms and systems defined within
the contract. Unless the contract holder has a permanent presence on site, it is usual to appoint representatives from line management to monitor and verify that
contract HSE obligations are being met. The contract
holder and representative should have access to specialist HSE advice where needed, but accountability for
contract HSE lies with the contract holder. Responsibility may be delegated to the representative, but accountability needs to remain with the contract holder.
compliance with all HSE related clauses in the contract and the HSE Plan
the contractors monitoring of the quality, condition and integrity of his Plan equipment and tools
the contractors holding of toolbox and regular HSE
meetings
16
An HSE audit and review programme should be prepared, stating specifically what is expected of the company contract holder in ensuring that the HSE Plan is
finalised and adhered to, together with details of how
the performance of the contractor is to be measured.
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17
9
9.1
De-mobilisation
Objectives
9.2 Responsibilities
The contractors HSE Plan should continue to be the
vehicle for managing the HSE activities in this phase.
Demobilisation often is a phase of the project having an
increased chance of incidents as the project infrastructure and contractor HSE management structures are
being dismantled with people moving off the project
to new assignments. Assurance should be sought that
the appropriate organisational structures remain intact
until associated activities have been completed. These
should include:
emergency response
site restoration
waste management and disposal.
Due consideration should be taken of any learning
points from mobilisation, the problems encountered
and solutions found.
The company and contractor should continue to monitor performance against the Plan, including attention
to incident reporting. It is important to maintain vigilance on HSE matters to the very end of the contract.
The close out report should be made after all activities
have been completed.
18
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10
10.1 Objectives
The objectives of this phase are to conduct a joint evaluation of the contractors and companys HSE performance and to provide feedback to the contractor(s) and
company which can be a reference for future work.
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19
20
2000 OGP
Contractor
Contractor Manager should:
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21
22
No injury/
illness
Zero
Zero effect
No disruption to the
Slight effect
process, minimum cost
of repair (<$10,000)
Contamination;
<100 100-1,000 Limited
damage sufficiently
impact
large to attack the
environment; single
excedence of statutory
or prescribed criteria;
single complaint; no
permenant effect on
the environment
Local
damage
Limited loss of
100 discharges of
1,000
known toxicity;
repeated excedence
of statutory or
prescribed limit and
beyond fence/
neighbourhood
Regional public
concern. Extensive
negative attention in
local media; slight
national media and/or
local/regional political
attention with possibly
negative stance of
local government
and/or action groups
Major
damage
10,000 - Major
100,000 national
impact
National public
concern. Extensive
negative attention in
national media and/or
regional national
policies with potentially
restrictive measures
and/or impact on grant
of licences,mobilisation
of action groups
No damage to
equipment
Major effect
Reputation
Contamination Potential Definition
(litres)
impact
sensitive
areas
offshore
No financial
Several
Zero
No public awareness
consequences;
impact
no environmental
risk
0-100 Slight
impact
Appendix II
Assets*, equipment
Potential
Definition
impact
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Assets*, equipment
Potential
Definition
impact
Environment
Potential
Definition
impact
Contamination
(litres)
sensitive
areas
Multiple
fatalities
*Assets are understood as referring to: the oil and gas reservoirs, production facilities,
pipelines, money, capital, and other company, contractor and third party property.
Massive
effect
Reputation
Potential Definition
impact
offshore
Persistent severe
>10,000 >100,000 Major
environmental
interdamage or severe
national
nuisance extending
impact
over a large area. In
terms of commercial
or recreational use or
nature conservancy,
a major economic loss
for the company. Constant
high excedence of statutory
or prescribed limit
International public
attention. Extensive
negative attention in
international media
and national/international policies with potentially severe impact
on access to new areas,
grants of licences and/
or tax legislation
*Incidents relating to air, noise, smell, light and soil vibrations should be addressed on the
basis of expert judgement and, in the case of uncertainty, local expertise may be called in.
23
2000 OGP
b) Who has overall and final responsibility for HSE in your organisation?
c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where
his employees are working? Provide name, title and experience.
b) What are your arrangements for advising employees of changes in the policy?
24
2000 OGP
c) What provision does your company make for HSE communication meetings?
(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers
Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE
training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the training is given in-house, please describe the content and duration of courses.
b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and practices?
c) What arrangements does your company have to ensure new employees have been instructed and have received information
on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are
aware of company requirements?
d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided inhouse please give details of content.)
b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the hazards identified, assessed and controlled?
ii) HSE record of the subcontractors and companies with whom you place contracts?
b) Where do you spell out the standards you require your contractors to meet?
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25
(vii) Standards
a) Where do you spell out the HSE performance standards you require to be met?
c) How do you identify new industry or regulatory standards that may be applicable to your activities?
b) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance
with your HSE policy objectives and arrangements?
26
2000 OGP
b) What type of performance criteria are used in your company; give examples
c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to
your:
i) base management
b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?
2000 OGP
27
b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors?
c) Do your company HSE Plans include schedules for auditing and what range of auditing is covered?
d) How is the effectiveness of auditing verified and how does management report and follow up audits?
28
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10
14
20
Elements scoring 0 should normally disqualify a contractor from being included in a pre-qualification list. Any elements rated so must be highlighted as a qualification on the tender if it is still
to be considered.
Table IV: Rating of contractors pre-qualification by a point scoring system
(headings and item numbers refer to Appendix III)
A
B
Section 1: Leadership and Commitment
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29
A
B
C
D
Section 3 (continued): Organisation, responsabilities, resources, standards and documentation
Specialised training: items 3(iv) (a)&(b), 3(v)
No HSE training established
con-
HSE training is given for specialised operations, but no routine training conducted
Potential hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature
extremes, etc.): item 4(iii)
Company makes no special
provision for advising the
workforce about properties of
potential hazards
30
2000 OGP
A
B
Section 4 (continued): Hazards and effects management
In addition to C, periodic
inspections conducted by top
management or by teams of
specialists
Company has a complete strategy and set of plans and procedures covering vehicles, drivers
and operations management
Performance monitoring in a
few areas carried out
Statutory notifiable incidents, dangerous occurrences, improvement requirements and prohibition notices:
items 6(iii) and 6(iv)
More than one occurrence of
major incident in last five years
HSE performance records (latest year injury rate comparison to contractors three preceding years average):
items 6(v) (a)-(d)
Contractor
cient
supplied
insuffi -
2000 OGP
31
A
Section 7: Auditing and review
Company is a member of at
least one HSE association
32
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33
HSE procedures
Basic HSE rules
Occupational health
Environmental
Road transport
HSE Professionals
Subcontractors
HSE Communications
Incident investigation
34
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Table V.2
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35
Table V.3
HSE organisation
Key personnel
Personnel responsible for the implementation of HSE objectives clearly identified in an organisation chart
Responsibility adequately covered during all phases of the contract
Job descriptions in place showing each team members HSE competencies, responsibilities and function
Organisation clearly shows position of HSE professionals
Contract objectives/accountability
Defined to meet health, safety and environmental objectives as well as those of time, cost and quality
Accountability for HSE success and equally of any failure clearly stated
Focal point within the team structure ensuring that all HSE matters have been identified
Designated team leader to produce HSE objectives, tasks and targets for the contract
Targets, etc. to be realistic and consistent
Establish procedures for distribution, reporting and reviewing HSE issues
Manning/communications
Manpower philosophy
Manpower level to be defined correctly so as not to compromise HSE
Effective means to communicate HSE issues to the company, contractor and subcontractors
Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training
in the issues involved
Corporate structure/responsibility
Companys expectations on HSE management to be communicated in depth
Access of contractors line management to their corporate management structure on HSE issues to be defined
Level of handling project HSE issues by the contractor corporate structure (middle or senior management or board
level)
In the contractors corporate organisation, individuals charged with responsibility for HSE at middle senior manager or
board member level
Access to specialist HSE advice for line management, e.g.
HSE professionals
Job definition
Role of the contractors HSE advisers well defined
Job definition drafted
Reporting/follow-up
Reporting relationship with line management
Direct access to the Chief Executive
Does line management follow-up on advice offered
HSE department
Contractors HSE department involved in:
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HSE training
subcontractor assessment
training and auditing
health risk assessment, health performance monitoring and health surveillance
environmental monitoring
supporting incident investigation by line management
Guidance given by the contractors HSE management in preparing and implementing:
Subcontractors
Management
To be well integrated and identified in contract HSE Plans
Have own plans if carrying out a large portion of the work
HSE Plans to be vetted for suitability by main contractor
Main contractor to communicate that subcontractor subject to the same rigorous HSE standards as main contractor
Identification/vetting
Subcontractors to be identified at this stage of the project
Method of vetting those still to be identified to be stated
Vetting of past subcontractor records
Maintenance of approved subcontractor lists where HSE has been considered
HSE communications
Coverage/ awareness
Set up appropriate lines of communication to handle HSE issues, e.g. such items as:
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personal contact
interactive video
notice-boards
newsletters (suitable for large sites)
bulletins
posters
Performance
HSE performance boards (e.g. at worksite gates)
Promotional methods
Possibilities include:
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HSE management
job procedures
road safety
health (first-aid health hazards, medical services, alcohol and drugs, health promotion, use
of PPE)
auditing
incident investigation and reporting
HSE adviser skills
supervisory development
HSE meetings
environmental protection
Supervisory training
Supervisory development training promotes man-management skills and communication skills
Formalised programme
Formal HSE orientation programme for employees working on-site
Records kept of employees who have been through the programme
Employees trained before starting work
Training covers those joining as a contract is being implemented
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Coverage
HSE training of employees coverage (including):
safety
fire and explosion
road transport/driving
first-aid
work procedures/PTW
hazard awareness and reporting
occupational health
security
basic HSE rules
legislative requirements
environmental protection
Supervisors participation
Supervisors required to brief and debrief staff before and after training courses
Course content
Effective system for establishing the need for and the content of training courses
Determining course effectiveness and relevance of training assessed
Specialised training
Relevant training given to personnel prior to the execution of hazardous operations
Training gained through course attendance supplemented by on-the-job training as necessary
Records kept of attendees of the training courses and qualifications gained by employees
Emergency training
Training covers the actions to be implemented and the employees responsibilities in an emergency
HSE content in other courses
HSE included in:
induction courses
craft training
supervisory training
line management training
auditing techniques
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institute training
HSE management
Qualifications
Knowledge and experience of the contractors HSE professional:
HSE legislation
Coverage
HSE Plan to include:
HSE standards
Availability
Contractor in possession of HSE manual/set of standards
Identifying minimum criteria for achievement during contract implementation
Available in writing to all users in consistent, concise and clear form
Users involved in the development
Standards in line with company requirements
Control/authorisation
Controlled documents
Updated regularly
Approval level indicated
Procedure for obtaining deviations from standards
Responsibility for authorisation
Mechanism for recording approved deviations
Coverage
Clear reference to national and international standards
Setting minimum requirements on health, safety and environmental issues
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Table V.4
Handling of chemicals
Coverage
Contractor demonstrates availability and distribution of guidance/information on the safe handling of chemicals., likely
to be encountered in the contract, and proposals for confirming adherence to guidance during contract
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Table V.5
HSE procedures
Availability/control
Written procedures available to cover hazardous operations on HSE
Include HSE precautions to be taken
Consistent with company guidelines
Controlled documents
Appropriate level
Coverage: include health and environment
Written procedures:
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fire
abandon rig/location
storm
oil/chemical spill
aircraft incident
emergency communications
Medevac
blow-out
diving emergency
search and rescue (SAR)
explosions
H2S
well control
man overboard
evacuation
terrorism
Potential use of company guidelines
Awareness
By employees of procedures
Orientation
Schedule of drills and testing
Medical contingency plan included
Review frequency
Responsibility of employees for own and colleagues HSE
Monitoring mechanism
Drills to be carried out without warning
Plans
Contingency plans allowed for in emergency situations
Recovery procedures in place to be activated in event of emergency scenarios
Drills to be held to demonstrate preparedness for response
registry
classification
licensing
survey
test certification
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Occupational Health
Facilities available
Facilities defined as part of contract
Occupational health programme established to:
identify hazards
assess hazards
control hazards, e.g. engineering controls, procedural controls, PPE, vaccinations, etc.
maintain emergency procedures
appropriate for the site conditions
Welfare programme meets the needs of isolated sites
Local medical facilities evaluated in detail to assess:
range and quality of equipment and supplies
hygiene standards
administration procedures and standards
transportation and communication
sufficient for day-to-day needs and consistent with relevant health programmes
Adequate provision for supply of drugs, antidotes, etc.
Staffing
Availability of adequately trained, experienced staff
Access to medical treatment facilities (if external)
Contingency plans
Defined for possible incidents beyond capability of site facilities
Accommodation and catering facilities
Where provided, facilities to meet normally accepted standards of hygiene at site location
Facilities to be operated in line with government hygiene regulations and to meet company guidelines
Rules in force to maintain cleanliness of site and other facilities
Promotion
Promotional material available to assist in maintaining standards
Appropriate for the contractors workforce in terms of:
language.
clarity, etc.
Hygiene and housekeeping
Procedure on on-site cleanliness and maintenance
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Environmental
Awareness
Workforce aware of requirement to protect the environment whilst executing contract
Control
Identify potential environmental hazards
Develop procedures for handling materials and performing operations that may damage the environment
Contingency plans
Aims
Focus for the environmental protection team
At what level
Line management responsibility for environmental protection defined as well as other job objectives.
Development and enhancement of environmental impact statements for the contract
Monitoring/restoration
Environmental monitoring to gauge the impact of operations
Plans appropriate and sufficiently detailed
Recovery and restoration of site after contract completion
Audits
Environmental audits of operations during the contract
Carried out by experienced individuals or companies
Road Transport.
Drivers: competence and selection
Assess physical, mental and psychological capability
Character and background
Qualities and experience, medical examination, document checks, driving tests
Special skills such as terrain and climatic experience and first-aid knowledge
Drivers: driving permits
Should record personal and employment details, types of vehicle licensed to drive and types of cargo licensed to carry
Drivers: driver induction
Local area characteristics and regulations
Drivers: driver training
This should test vehicle operation and use, operating conditions (terrain, climate), off-loading and positioning, emergency situations, and vehicle inspection
Drivers: driver improvement
Techniques should identify deficiencies, analyse causes and select appropriate retraining
Vehicle: selection
Ensure correct type, capacity and size for facilities
Good manoeuvrability and serviceability
Vehicle: specification
The job description should be clearly defined before the vehicle is chosen, to ensure work operations do not exceed the
manufacturers specifications
Safety equipment and communications on board the vehicle need to be checked
Vehicle: passengers
Is the vehicle designed to carry passengers?
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Vehicle: freight
Design of vehicle and load limits
Segregation, positioning and securing of freight
Vehicle: maintenance
Conducted on a regular basis
Ops management: need and approval
Define the journey and justify the need
Awareness of hazards involved
Allocation of vehicles, written authorisation, verification of employees driving standards
Ops management: journey routing and scheduling
Full awareness of route (hazards, conditions)
Realistic schedules
Ops management: journey management
Logging of actions
Ops management: roles and responsibilities
Roles and responsibilities defined for management, supervisors, drivers, passengers
Contracting
Pre-qualification of contractors and contractor HSE management treating road transport with equal importance to main
activity
Standards for scope of operations included in tender operation
Control and review mechanisms included in contracts
Policy of no subcontracting without written authority
Procedures
Ensure procedures are in place for all transport operations
Monitor and review mechanisms in place
Emergency services
In place and tested
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Table V.6
performance indicators
progress against targets
HSE initiatives/incentive schemes
achievement of milestones
numbers and types of training courses
numbers and results of audits
clearance of action items
Use will be made of reactive statistical indicators, e.g.
Incident Investigation
Coverage
Reporting procedure for the contract
Covering not only injuries to and time lost by personnel but also:
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Table V.7
HSE auditing
Availability
Established HSE procedure outlining responsibilities, frequency, methods and follow-up
Scope
Compliance with the HSE Plan including:
HSE management
departmental personnel HSE
technical personnel HSE
subcontractor
occupational health
unsafe acts
audit training
environmental
own activities and those of his subcontractors
Coverage
Consistent with company guidelines
Schedule for full contract duration
Involvement of personnel in audit teams from outside the location
Carried out by a wide cross-section of the workforce including company and subcontractor personnel
Effectiveness
How verified
Involvement of the contractors corporate management in review of findings
Intention to publish findings
Discussion with personnel on contract and at HSE meetings
Lessons used to improve operations across the contract
Follow-up
Any numerical treatment made of findings
Frequency of review of implementation progress
Rejections of audit findings properly authorised and documented
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Senior management should reinforce the importance of HSE at all levels in the organisation and should be
seen to be setting a personal example
Policy and Strategic Objectives
Contractor has a policy that makes reference to the importance of HSE. It is formalised by the Chief
Executives or the Managers signature
Organisation, Responsibilities, Resources, Standards and Documentation
A focal point in the organisation for HSE. Simple procedure for distributing information on HSE issues to the
workforce
A procedure for determining/enacting HSE training. Provision for obtaining HSE advice should this be outside the capability of the contractors personnel
Simple procedure for ensring any subcontractor adheres to same HSE standards
Simple advice on the importance of the links with client (or third party) emergency services on contracts
Typical agenda for any HSE items in meetings and how to ensure they are covered effectively
A statement of how HSE competence is assessed for personnel with HSE-critical activities to perform
Statement of requirements for employees to indicate that they have the necessary appreciation of the HSE
issues in the contractors business activities. This should include reference to potential client HSE induction
sessions and HSE training. Such training could include items from the following list (as relevant to the contract):
fire and explosion hazards
road transport/driving
first-aid
work procedures/PTW
hazard awareness and reporting
security
basic HSE rules
legislative requirements
occupational health
environmental protection
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Contractor has a document with simple procedures/rules covering the HSE issues in his business activities
with a method for review and update. This should include the following:
HSE hazard awareness
Basic HSE precautions to be observed in the workplace
HSE hazards of tasks and operations encountered in his business
HSE hazards of equipment used
Use of PTW system
Communications with supervisory personnel on site
Contractor has a document that:
outlines the activities of his business
identifies those areas that are HSE-critical
finds a method how individual contract scopes can be simply appraised to determine where
the attention to HSE issues need to be focused
identifies how to determine PPE requirements
identifies a simple set of steps for road transport management
Implementation and Performance Monitoring
Contractor has a procedure for recording incidents, for advising legislative bodies where necessary and for
making annual reviews of performance
Contractor has a procedure for investigating incidents
Auditing and Review
Contractor has a method for the management to carry out simple audits of his contract operations
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General
Company
Details
Project
Contract title/number
Contractor details
Site location
Company contract holder/representative(s)
Company representative(s)
Contract manager/contractor representative(s)
Hazard assessment
Contract scope description
Expected hazards identified (including adjacent operations, etc.)
Alternatives considered
Procedures to be followed for hazard control (list documents or
describe details here)
Access/escape provisions (alarms, muster stations, etc.)
Emergency service provisions (including first-aid, nearest medical
treatment, emergency phone numbers, etc.)
Competence standards for contractors personnel
Standards for contractors equipment
Training requirements (including site HSE induction )
Job/services description
Contractors personnel assigned
Contractors equipment/ consumables/services assigned
Companys personnel assigned
Companys equipment/consumables/services assigned
Subcontractor details
Responsibilities/interfaces defined
PPE and any special HSE equipment to be used
Working hours/job duration
Site description/limits
PTW provisions applicable
Conditions for suspending work (e.g. weather, adjacent site operations, etc.)
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What is OGP?
e International Association of Oil & Gas Producers encompasses the worlds leading
private and state-owned oil & gas companies, their national and regional associations, and
major upstream contractors and suppliers.
Vision
To work on behalf of all the worlds upstream companies to promote responsible and
profitable operations.
Mission
To represent the interests of the upstream industry to international regulatory and
legislative bodies.
To achieve continuous improvement in safety, health and environmental performance
and in the engineering and operation of upstream ventures.
To promote awareness of Corporate Social Responsibility issues within the industry
and among stakeholders.
Objectives
To improve understanding of the upstream oil and gas industry, its achievements and
challenges and its views on pertinent issues.
To encourage international regulators and other parties to take account of the
industrys views in developing proposals that are effective and workable.
To become a more visible, accessible and effective source of information about the
global industry, both externally and within member organisations.
To develop and disseminate best practices in safety, health and environmental
performance and the engineering and operation of upstream ventures.
To improve the collection, analysis and dissemination of safety, health and
environmental performance data.
To provide a forum for sharing experience and debating emerging issues.
To enhance the industrys ability to influence by increasing the size and diversity of
the membership.
To liaise with other industry associations to ensure consistent and effective approaches
to common issues.