Life Saving Rules SAFETY BY CHOICE, NOT BY CHANCE

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1 Life Saving Rules SAFETY BY CHOICE, NOT BY CHANCE

2 Foreword from Kevin Reinhart The 12 Life Saving Rules are a part of Nexen s continued commitment to create a safe work environment for our employees. The Life Saving Rules will lay the cultural foundation to achieve zero serious incidents. Utilizing clear direction and instruction about occupational safety, the Life Saving Rules apply job performance standards and workplace rules in a fair and consistent manner to all employees and partners of Nexen. The Rules are created from industry lessons; they are a tangible contribution to strengthening our safety culture and are intended to be shared across Nexen s businesses and operations. The Life Saving Rules Accountability Model affirms Nexen s commitment to a safety first culture. These rules will become an integral part of our management and personal performance metrics. As a Nexen employee or partner, you are responsible (and authorized) to stop any work that does not comply with these rules and other procedures. There will be no repercussions - that is our commitment to you. Whether it s a conventional drilling site or a state-of-the-art offshore platform, personnel management methods determine both operating performance and business success. Nexen is committed to creating a safe work environment for our employees; we aim to train our people to make the right choices when it comes to health and safety. Together let s do the right things Life for the right reasons. Saving Kevin Reinhart Chief Executive Officer

3 1 Always Conduct a Hazard Assessment 2 Ensure Safe Systems of Work 3 Follow the Management of Change (MOC) Process 4 Isolate Energy Sources 5 No Breaking of Containment Without a Valid Work Permit 6 Do Not Enter a Confined Space Without Authorization 7 Work Safely at Heights 8 Conduct Safe Lifting Operations 9 Drive Safely 10 Assess All Ground Disturbance Hazards 11 Do Not Work Under the Influence of Drugs or Alcohol 12 Ignition Sources are Not Allowed in Areas Where Hydrocarbons Rules May be Present LIFE SAVING RULES 1

4 Nexen will provide a safe place of work and a culture where: Health, Safety, and Environment expectations and individual responsibilities are effectively communicated Pre-job hazards will be assessed and appropriate controls developed and in place for the level of risk mitigation required before the work commences Appropriate personnel are trained, competent, and in place to effectively and safely manage all activities associated with our operations Personal Protective Equipment (PPE) will be provided as per the activity hazard assessment and the minimum site requirements

5 It is expected that YOU shall: Take personal responsibility for Health, Safety and Environment Work to the defined instructions, procedures, and practices for the work you are doing and immediately advise if any control measures are inadequate. This means use the correct tool, in the right way and keep worksites clean, tidy, and obstruction free Obey all signs and barriers and use the correct Personal Protective Equipment (PPE) effectively Report all incidents, including near misses, immediately Speak to your Supervisor about work that you feel you are not trained or competent to carry out STOP any job that feels or is unsafe LIFE SAVING RULES 3

6 LIFE SAVING RULE NO. 1 ALWAYS CONDUCT A HAZARD ASSESSMENT

7 1 Nexen will provide a safe place of work and YOU shall not carry out work unless: All hazards associated with your tasks are identified and risk assessed prior to commencing any work Communication of hazards and control measures are implemented to ensure worker understanding and protection prior to commencing the work (e.g. Tool Box Talk) The job will STOP and risks will be reassessed whenever there is a change in work method or the work environment LIFE SAVING RULES 5

8 LIFE SAVING RULE NO. 2 ENSURE SAFE SYSTEMS OF WORK

9 2 There is a valid work permit issued, when required Nexen will provide a safe place of work and YOU shall not carry out work unless: The work is clearly defined, authorized, and communicated to all those affected Documented authorization is obtained before overriding or disabling safety critical equipment The job is properly supervised by a competent person from start to finish Planned and unplanned changes are assessed and updated with necessary control measures in place LIFE SAVING RULES 7

10 LIFE SAVING RULE NO. 3 FOLLOW THE MANAGEMENT OF CHANGE (MOC) PROCESS

11 3 All required approvals and controls are in place Nexen will provide a safe place of work and YOU shall not carry out work unless: A hazard assessment is conducted with all involved parties impacted by the change, when required There is a developed work plan that specifies the timescale for the change and any control measures that need to be implemented LIFE SAVING RULES 9

12 LIFE SAVING RULE NO. 4 ISOLATE ENERGY SOURCES

13 4 Isolations have been checked and approved Nexen will provide a safe place of work and YOU shall not work on energized equipment or systems unless: The method of isolation and discharge of stored energy is agreed upon and executed by a competent person Isolations have been tested and are proven to be effective A system is applied to manage, communicate, and record all isolations installed as well as verify removal between shifts, work groups, and at the end of work periods LIFE SAVING RULES 11

14 LIFE SAVING RULE NO. 5 NO BREAKING OF CONTAINMENT WITHOUT A VALID WORK PERMIT

15 5 The worksite escape routes are identified and free of obstruction Nexen will provide a safe place of work and YOU shall not carry out breaking of containment unless: The work has been hazard assessed, defined, authorized, and communicated to all those affected The system being entered is confirmed to be effectively isolated, purged, depressurized, and tested There is monitoring conducted to prevent an explosive atmosphere from arising and to prevent exposure to hazardous substance LIFE SAVING RULES 13

16 LIFE SAVING RULE NO. 6 DO NOT ENTER A CONFINED SPACE WITHOUT AUTHORIZATION

17 6 All personnel involved are competent and trained for the specific work needs Nexen will provide a safe place of work and YOU shall not enter into any confined space unless: Alternatives have been ruled out Control of the entry is being done under a Permit to Work that includes a Tool Box Talk Testing of the atmosphere has been conducted as defined in the confined space entry permit You have received approval for entry A standby person is stationed outside the confined space in a ready state and a rescue plan is in place; more than 50% of fatalities in confined spaces are due to failures in the rescue plan LIFE SAVING RULES 15

18 LIFE SAVING RULE NO. 7 WORK SAFELY AT HEIGHTS

19 7 All tools and loose objects are stored in a secured manner Nexen will provide a safe place of work and YOU shall not carry out work where there is a potential for persons or objects to fall unless: An approved, fixed, and guarded platform is available for work or, if this is not practicable, certified fall restraint or fall arrest equipment is used and secured to an appropriate anchor A visual inspection of the fall restraint or fall arrest equipment is carried out before and after use Fixed barriers are placed around openings where there is the potential to fall Work from ladders is limited to light work of short duration LIFE SAVING RULES 17

20 LIFE SAVING RULE NO. 8 CONDUCT SAFE LIFTING OPERATIONS

21 8 All lifting equipment safety devices are in place and are functioning correctly Nexen will provide a safe place of work and YOU shall not conduct a lift unless: The lift is planned with all hazards assessed including proper clearances from electrical hazards and stationary objects The equipment is certified for use, clearly marked for maximum load rating, and subject to a visual inspection before use A work permit is in place for lifting of personnel The load is controlled at all times by use of tag lines or other approved means Effective communication is maintained throughout the lift operation There is no one under a suspended load LIFE SAVING RULES 19

22 LIFE SAVING RULE NO. 9 DRIVE SAFELY

23 9 Buckle your seatbelt; ensure your passengers do the same Nexen will provide a safe place of work and if you need to drive on company business YOU shall: Be a licensed driver, obey the speed limit, and adjust your speed to road conditions Not use cell phones or other distracting devices while driving; when tired, pull over to a safe area Inspect vehicle prior to operation LIFE SAVING RULES 21

24 LIFE SAVING RULE NO. 10 ASSESS ALL GROUND DISTURBANCE RISKS

25 10 Workers have been provided with adequate access/egrees prior to Nexen will provide a safe place of work and YOU shall not do any ground disturbance unless: All underground, surface, and overhead hazards have been assessed, clearly identified, located, and marked appropriately on drawings; machinery is kept at a safe distance Appropriate work controls are in place prior to entering excavation to protect the worker from cave in entering excavations LIFE SAVING RULES 23

26 LIFE SAVING RULE NO. 11 DO NOT WORK UNDER THE INFLUENCE OF DRUGS OR ALCOHOL

27 11 Reporting to work over the legal or corporate tolerable limits Nexen will provide a safe place to work and YOU shall not participate in any drug or alcohol activity including but not limited to: The use or possession of alcohol, illicit drugs or drug paraphernalia on Nexen worksites LIFE SAVING RULES 25

28 LIFE SAVING RULE NO. 12 IGNITION SOURCES ARE NOT ALLOWED IN AREAS WHERE HYDROCARBONS MAY BE PRESENT

29 12 Nexen will provide a safe place of work and YOU shall not use ignition sources where hydrocarbons are present: No person will smoke outside of designated areas where hydrocarbons may be present Use of mobile phones, cameras, or PDAs without authorization in areas where hydrocarbons may be present is prohibited LIFE SAVING RULES 27

30 PROMOTING SAFE BEHAVIOR Event The Essentials Set clear expectations and highlight the importance of individual accountability Ensure required training is successfully completed Provide ongoing coaching and mentoring Regularly reinforce Nexen s commitment to safety and each individual s responsibilities in creating a safe work environment Setting Clear Expectations At all levels of the organization, provide clear direction, instruction and coaching on Nexen s safety standards and safe work procedures Creating a Safety Culture and a Safe Work Environment Every individual is accountable for their own and their co-workers safety Planning Ahead Conduct thorough hazard assessments Adopt safe systems of work Ensure MOC is applied when changed conditions warrant Pro-active Behavior Do not hesitate to STOP work if conditions may be unsafe, proper procedures are not being followed or conditions may have changed Leading by Example Choose safety over productivity Demonstrate safe work practices on a daily basis Reinforce Nexen s safety culture through coaching, recognition, and performance management Learning and Mentoring Apply continuous improvement to all safety procedures Encourage shared learnings to improve safety awareness Engage Encourage Deliver

31 Event PROMOTING SAFE BEHAVIOR - PERFORMANCE MANAGEMENT Encourage and Recognize Praise positive safety behaviors Provide recognition for above average or exceptional safety performance individuals and groups Coaching and Mentoring Provide regular feedback on progress or where performance could be improved Encourage shared learnings and new approaches to improve safety performance Corrective Action Nexen believes all employees come to work motivated to contribute to their own and to the company s success. Occasionally, individual performance may fall below the standards required to accomplish a task properly and safely. Meeting performance standards is important in all aspects of Nexen s business and particularly when it comes to safety practices. The first steps in encouraging employees to meet Nexen s safety standards are through training, coaching and mentoring. Should an employee s performance fall below the required standard, Nexen supports a progressive approach in correcting performance lapses. A one-off mistake due to lack of awareness may be dealt with differently than an intentional breach of a safety rule. One may lead to a verbal coaching moment, the other to a formal warning or perhaps termination for cause should the infraction be serious enough. Nexen s Corrective Action Guidebook (Calgary) and Performance Improvement and Disciplinary Guide (UK) describe key steps and processes in managing employee performance that does not meet accepted standards. Consult with your HR representative on the appropriate application of the performance improvement and corrective action procedures in addressing a performance issue. Encourage and Recognize Coaching Corrective Action

32 STOP WORK AUTHORITY Silence is consent Each of us is expected to comply with The Life Saving Rules As an employee or contractor for Nexen, you are responsible and authorized to stop any work that does not comply with these rules, regulations and/or procedures There will be no repercussions - that is our commitment to you Key Principles: Do it safely or not at all There is always time to do it right Kevin Reinhart Chief Executive Offi cer

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