Framework for Effective

Transcription

1 Framework for Effective Management of HSE

2 Framework for Effective Management of HSE 2

3 Contents The Maersk Oil Health Safety Environment (HSE) Culture Corporate Policy 4 Introduction 5 The HSE Management Model 6 1. Policy Objectives 7 2. Leadership, Commitment Accountability 8 3. Organisation, Responsibilities Documentation Organisation, Responsibilities Competency Partnerships Governmental Legal Requirements Contractors Documentation its Control Evaluation Risk Management Identification of Hazards General Evaluations Health Safety Evaluations Environmental Evaluations Risk Reduction Measures Risk Management System Planning Implementation General Asset Integrity Operating Unit Management System Management of Change Contingency Emergency Planning Communication Information Monitoring Corrective Action Monitoring Records Reporting Non-Compliance Corrective Action Incident Investigation Reporting Incident Follow-up Sharing of Lessons Learnt Best Practices Auditing Management Review Operating Unit Auditing of Arrangements for HSE Management Corporate Management Review Operating Unit Management Review Maersk Oil Corporate Auditing of Operating Unit Arrangements for Effective HSE Management 21 Appendix Definitions Abbreviations 22 Framework for Effective Management of HSE 3

4 The Maersk Oil Health, Safety Environment (HSE) Culture Corporate Policy At Maersk Oil the health safety of all people, together with a strong respect for the environment, is of utmost importance. We recognise that safe environmentally sound operations are the key to our success, our culture is such that we continually strive to improve our HSE performance through constant care. We have the ambition to be a high performing E&P company, known recognised for our ability to consistently deliver a high HSE performance. We believe in incident free operations acknowledge that achieving this requires HSE to be an integral part of how we do business. Furthermore, based on our shared values, we recognise that an open, trusting just culture is fundamental, where new ideas are welcomed people feel empowered to express themselves on HSE issues. We all have a role to play. It is the responsibility of management to show the way lead by example. Achieving our ambition requires commitment from the whole organisation. We all need to actively consider the HSE implications of our activities make HSE a top priority at all times. It is the policy of Maersk Oil to conduct it s business in a manner that: Avoids harm to people. Protects the environment. Meets or exceeds all applicable legislative or regulatory requirements, where these do not exist apply responsible stards. Promotes a high performing HSE culture throughout the organisation. Ensures continual improvement of HSE performance. In following this policy Maersk Oil operating units will: Manage HSE matters as an integrated part of their business, through the framework for effective HSE management the setting of appropriate objectives targets. Communicate the HSE policy to all employees other relevant parties. Ensure the motivation commitment of all employees through appropriate training, appraisal recognition. Require contractors to manage HSE in line with this policy. Thomas Thune Andersen CEO of Maersk Oil Partner of A.P. Moller-Maersk August

5 Introduction This document describes the framework for effective management of HSE within Maersk Oil operating units. For the purpose of this document operating units are defined as all departments, business units operating companies responsible for activities involving either exploration, drilling or production (including the design installation of facilities). This document is the framework by which each operating unit shall develop local arrangements for effective management of HSE, with content, objectives targets relevant for local conditions legislation. Framework for Effective Management of HSE 5

6 The HSE Management Model Key Elements The corporate Maersk Oil HSE management model is illustrated below: Auditing Management Review CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Monitoring Corrective Action Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management The corporate Maersk Oil HSE management model comprises of eight key elements which are described in more detail in the sections that follow: 1. Policy Objectives 2. Leadership, Commitment Accountability 3. Organisation, Responsibilities Documentation 4. Evaluation Risk Management 5. Planning Implementation 6. Communication Information 7. Monitoring Corrective Action 8. Auditing Management Review The eight key elements provide the framework for a Plan, Do, Check, Review approach to HSE management. This structured approach satisfies the requirements of internationally recognised stards. 6

7 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 1. Policy Objectives The operating unit s management is responsible for defining documenting the local HSE policy objectives. The local HSE policy shall be identical to the corporate policy except where amendments are required by local circumstances. In the latter case, operating unit s management shall present the HSE policy demonstrate continual improvement of HSE performance through the bi-annual corporate management reviews. Arrangements for effective HSE management shall be in place to ensure compliance with the operating unit s HSE policy objectives. Operating unit s management shall identify set clear HSE targets that encourage the continual improvement of HSE performance. The HSE policy objectives shall be implemented communicated throughout the organisation. All operating units shall prepare publish an annual HSE programme that describes as a minimum the targets, objectives, HSE initiatives audit programme for the coming year provides a status of the past year s HSE performance. Framework for Effective Management of HSE 7

8 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 2. Leadership, Commitment Accountability Operating unit management shall provide strong, visible leadership commitment ensure that the necessary resources are available to manage health, safety environmental issues in line with the operating unit s HSE policy, through the development maintenance of arrangements for effective HSE management. HSE is a line management an individual responsibility. All employees are accountable for the HSE performance within their area of responsibility. 8

9 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 3. Organisation, Responsibilities Documentation 3.1 Organisation, Responsibilities Competency The organisational structure, roles, responsibilities, accountabilities interrelations necessary to implement the arrangements for effective HSE management at operating unit level shall be documented, communicated reviewed regularly. Line Management Operating unit line managers are responsible accountable for implementing the arrangements for effective HSE management for managing HSE critical activities in their area of responsibility. Management Representative A representative from the operating unit shall be assigned to coordinate the arrangements for effective HSE management within the operating unit. The representative shall report to the head of the operating unit. Competence Training Personnel performing HSE critical activities shall be appropriately trained competent, have the necessary authority resources to perform the allocated function. HSE critical activities are those identified through appropriate risk assessment processes as vital to safeguarding effective HSE management. 3.2 Partnerships In forming partnerships, an evaluation of the operating partner s HSE performance arrangements for HSE management shall be undertaken by the Maersk Oil operating unit to ensure they are compatible with the Maersk Oil operating unit s HSE policy. The responsibility for HSE management remains with the operating partner: however, it is the responsibility of the Maersk Oil operating unit to monitor the operating partner s HSE performance. 3.3 Governmental Legal Requirements It is the responsibility of all managers to ensure compliance with the requirements to HSE from government authorities, both contractually (for example defined in a Production Sharing Agreement) in national legislation, within their area of responsibility. The operating unit management shall engage in constructive dialogue with governments other authorities to positively influence legislation, stards etc. Up to date legal requirements shall be accessible to all employees. 3.4 Contractors Arrangements shall be in place documented to ensure effective HSE management of contracted activities that occur within the operating unit s area of influence. This can be achieved by the contractor s own HSE management system approved by the operating unit with appropriate bridging documents or other arrangements to effectively manage identified HSE risks. Framework for Effective Management of HSE 9

10 Examples of an operating unit s area of influence include, but are not limited to: All activities within an offshore safety zone or similar onshore safety zone. All activities within the property boundary for onshore facilities. Any contracted activity where an operating unit s representative is present in a position of direct operational influence. When selecting contractors particular attention shall be given to: Assessment of their HSE performance their arrangements for effective management of HSE, commensurate with the risks associated with the services to be provided. Review of the HSE training qualifications of the contractor s personnel involved in HSE critical activities their suitability for the planned activity. 3.5 Documentation its Control The operating unit shall control documentation for the following: HSE policy, objectives targets. Arrangements for effective HSE management. Roles responsibilities of all relevant personnel, in the form of a job description. Training competency assessment of personnel involved in HSE critical activities, including all HSE relevant information. Results of HSE risk evaluations, audits management reviews. Procedures work instructions for HSE critical activities. Emergency response plans. Document Control Documents that detail the arrangements for effective HSE management shall be controlled to ensure that: They are identified with the appropriate operating unit activity. They are periodically reviewed, revised as necessary approved prior to issue. Current versions are available where needed, accessible via the intranet /or in hard copy as required. Obsolete versions are promptly removed from all points of issue use. There is a documented revision distribution procedure. 10

11 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 4. Evaluation Risk Management 4.1 Identification of Hazards The operating unit shall systematically identify the hazards that may affect, or arise from, its activities from the materials used or encountered in them. All activities, from inception through to abonment disposal, shall be considered at the relevant time. This implies taking a full life-cycle view to predict mitigate significant hazards. The identification process shall include consideration of incidents potential emergency situations, including those arising from: Reservoir properties throughout the life of the field. Drilling activities. Foundation subsidence issues. Installation construction activities. Structural failure. Pressure containment failure (fatigue, erosion, corrosion etc.). Failure of surveillance safety systems. Ship, aircraft or vehicular collisions. External natural events. Sabotage other breaches of security. Human factors. Occupational health aspects. 4.2 General Evaluations The potential risks effects from identified hazards shall be evaluated, taking account of probabilities of occurrence severity of consequences, for: People The environment Assets Such risks shall be hled through technical assessments, informed judgment, the application of relevant company industry stards by trained competent personnel. In addition, the above shall be supported by specialised risk assessment techniques such as QRA, HAZID EIA, to a degree commensurate with the risk, in the development of new modified facilities. Assessments shall be performed initially at the conceptual engineering stage subsequently updated at specified intervals, or as found necessary. The operating unit shall maintain records of statutory requirements codes applicable to the HSE aspects of its operations, products services, shall ensure that the risk evaluations performed comply with these requirements. Framework for Effective Management of HSE 11

12 Risk evaluations shall: Include effects of activities, products services. Address effects risks arising from both human hardware factors. Solicit input from personnel directly involved with the risk area. Be conducted by qualified competent personnel. Be conducted according to appropriate methods. 4.3 Health Safety Evaluations Evaluation of health safety risks effects shall include consideration of: Fire explosion. Impacts collisions. Loss of position or stability (for floating units). Mechanical structural failure. Chronic acute exposure to chemical, physical biological agents. Ergonomic factors. 4.4 Environmental Evaluations In order to evaluate the potential for environmental impact to provide an understing of the environmental issues, an Environmental Baseline Study shall be conducted for relevant activities before these are initiated. The study shall establish a baseline of environmental information that can serve as a reference during the life cycle of the company s involvement in the area for any future environmental work. The baseline study must comply with local legislation as a minimum should be incorporated into an Environmental Impact Assessment which takes consideration of: Controlled uncontrolled emissions to l, water the atmosphere. Generation disposal of solids other wastes. Use of l, water, fuels, energy other natural resources. Noise, odour, dust vibrations. Effect on archaeological cultural sites artefacts, natural habitats, parks conservation areas. The results of these evaluations, where relevant, shall be used in the setting reviewing of objectives performance targets, incorporated into project planning. 12

13 4.5 Risk Reduction Measures Risk reduction measures shall be identified assessed, where appropriate, implemented to reduce risks effects to a level deemed as low as reasonably practicable (ALARP); reflecting amongst other factors local conditions circumstances, the balance of cost benefits, the current state of scientific technical knowledge. Risk reduction measures shall include both those to prevent incidents (i.e. reducing the probability of occurrence) to mitigate chronic acute effects (i.e. reducing the consequences). Mitigation measures shall include steps to prevent escalation of developing abnormal situations to lessen adverse effects on health, safety the environment ultimately emergency response measures. Where applicable the identified risk reduction measures shall establish required contractor qualifications scope of third party verification/certification services. When planning how hazards are to be controlled risks reduced, the following control hierarchy is to be used: Elimination/avoidance of the hazard. Substitution with a lesser hazard. Engineering controls: for example; design changes, equipment changes, isolation/enclosure. Administrative controls: for example; work practices, training. Personal Protective Equipment. Pre-startup reviews shall be conducted on all new modified facilities prior to operation to confirm that the facilities meet the applicable requirements. 4.6 Risk Management System Corporate HSEQS will coordinate the implementation of a corporate risk management system with the operating units. Framework for Effective Management of HSE 13

14 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 5. Planning Implementation 5.1 General The operating unit s overall business planning process shall include specific plans for achieving HSE objectives targets. These plans shall include: A clear description of the objectives targets. The means by which they are to be achieved. Time scales for implementation. Programmes for motivating encouraging personnel towards the Maersk Oil HSE culture. Mechanisms for encouraging input from, providing feedback to, personnel on HSE performance. Processes to recognise good individual team HSE performance. Mechanism for evaluation follow-up. 5.2 Asset Integrity The operating unit shall ensure that HSE critical facilities equipment which it designs, constructs, installs, operates maintains are suitable for the required purpose. The integrity management system covering both new facilities the long term maintenance of existing facilities shall address the integrity of: Wells Structures Pressure containment (pipelines, valve, piping, pressure vessels etc.) Electrical systems Emergency systems (ESD, F&G, Flare Blowdown) Safety systems (fire fighting, escape routes, lifeboats etc.) Cranes lifting equipment Marine systems (moorings, buoys, umbilicals, FPSOs etc.) Contractor equipment activities (rigs, leased FSOs FPSOs etc.) Deviation from approved design practices stards shall only be permitted after review approval by designated personnel, according to established procedures documentation. The operating unit shall further implement a third party verification (assurance) process, whereby a competent third party certifies that the facilities are in HSE compliance with local legislation Maersk Oil stards. Initial certification shall cover new facilities as well as modifications to existing facilities. Ongoing certification shall cover all operational facilities, with renewal of certificates every five years. 5.3 Operating Unit Management System A management system comprising manuals, procedures, technical stards, work instructions guidelines shall be consolidated documented for critical activities where risk evaluation has identified significant HSE risks, where the use of formalised procedures will assist in minimising that risk. 14

15 For contracted activities, similar systems must be in place. The manuals, procedures, technical stards, work instructions guidelines shall have the purpose of defining how the work is to be conducted in adequate detail, to ensure technical integrity the effective transfer of knowledge. This documentation shall be communicated be readily accessible to all relevant personnel via an IT based system: hardcopies are to be provided as required. This requirement applies regardless of whether the activity is conducted by the operating unit s own employees or others acting on its behalf. While compliance with matory procedures is a requirement, a clear simple instruction for approval of necessary deviations shall also be included in the management system. Management system clarification: 1. The HSE Management System comprises necessary concise information to manage safety, health environment. 2. Stards refer to requirements as detailed by regulators, professional or industry sponsored organisations Company developed specifications. 3. Stards are established for compliance any deviation requires a written waiver signed by the Approver. 4. Procedures are specified ways to carry out given tasks in a safe effective/efficient manner. They are established for compliance any deviation requires a written waiver signed by the Approver. 5. Procedures should be entirely necessary as brief clear to the user as possible. Revised sections in procedures should be clearly indicated. 6. Appendices to the procedure may contain optional information or guidelines. 7. Guidelines are optional practices or recommendations that lead or direct a course of action to achieve a certain goal. 8. Individual departments are responsible for determining preparing relevant documents to populate the HSE management system. 9. Each document/group of documents has an Approver who is responsible for the content of the document for ensuring that the procedure is appropriately communicated maintained. 10. Each document/group of documents has a Focal Point to whom any feedback suggestions should be addressed. 11. An organisational function shall be assigned to maintain the overall system structure, load approved documents onto the system. This function shall maintain a table of Focal Points Approvers for each document/group of documents provide recommended styles for the documents. 12. Individual managers or supervisors are responsible for introducing new-starts in their areas to the HSE management system to relevant procedures. 13. Approvers should monitor compliance with documentation through regular audits. Regular management reviews shall be carried out by operating unit Managing Directors to determine the effectiveness efficiency of the HSE management system established, ref. also 8.3. Framework for Effective Management of HSE 15

16 5.4 Management of Change The operating unit shall implement a formalised procedure ensuring that changes, both permanent temporary, to people, facilities, equipment, processes procedures, are planned controlled to avoid adverse HSE consequences. Change management shall address the HSE issues involved include, where relevant: Assessment of the impact of the change. Identification documentation of the proposed change its implementation. For all process facility changes a thorough HAZOP process shall be applied. The review, evaluation recording of potential HSE hazards. Documentation of the agreed change implementation procedure, including: - Measures to reduce risks effects. - Communication training requirements. - Verification monitoring requirements. - Acceptance criteria action to be taken if breached. Authority for approval to implement the proposed change. 5.5 Contingency Emergency Planning Operating units shall maintain emergency response plans, communicate these plans to all relevant employees, contractors third parties. Emergency response plans shall cover: The organisation, responsibilities procedures for emergency response disaster control, including the setting up of an Emergency Response committee. Systems procedures for providing personnel refuge, evacuation, rescue medical treatment. The provision of suitably trained response teams. Systems procedures for preventing, mitigating monitoring environmental effects of emergency actions. Internal external communications, including local national authorities, Maersk Oil corporate functions other relevant APMM business unit. Procedures for hling relatives others that may arrive at company s offices, hospitals or other arrival points. Systems procedures for mobilising company equipment, facilities personnel. Arrangements procedures for mobilising third party resources emergency services. Emergency systems, plans, procedures response teams shall be tested by drills other means, at appropriate intervals, revised as necessary in the light of the experienced gained. Requirements for emergency equipment its maintenance shall be reviewed periodically. 16

17 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 6. Communication Information HSE expectations in line with The Maersk Oil Health, Safety Environment HSE Culture Corporate Policy, shall be communicated clearly at all levels in Maersk Oil. All employees, where relevant, those of contractors partners shall be made aware of the: Importance of compliance with the operating unit s HSE policy objectives their individual collective roles responsibilities in achieving it. Potential consequences of non-compliance. HSE risks hazards of their work activities, the preventative mitigation measures the established emergency response procedures. Importance of being proactive contributing to continuing performance improvement by identifying potential hazards suggesting improvements. Employees shall be: Consulted where changes may affect workplace health safety, or which may be of significant concern to the employees. Given the opportunity responsibility for reporting back on HSE issues. Represented on health safety matters informed as to their representatives. Operating units shall issue an annual HSE programme addressing the entire organisation, including contracted staff, on relevant HSE subjects including: The Past years HSE performance. HSE targets for the coming year. Important incidents. HSE challenges. Specific initiatives within process safety asset integrity, workplace safety, occupational health environment. Incident investigation. Audits management review. Emergency response. Contractor involvement. Operating units shall support the effective exchange of learnings from incidents audits as well as exchange of other knowledge expertise where that may assist other units in improving their HSE performance. Operating units shall keep the entire workforce informed about important developments in HSE locally, in other operating units external to Maersk Oil. Operating units shall further support the involvement of the entire workforce in improving the HSE performance, hereunder establishing health safety groups. Framework for Effective Management of HSE 17

18 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 7. Monitoring Corrective Action 7.1 Monitoring HSE performance shall be monitored the results recorded. Both active reactive monitoring is required. Active monitoring includes checking that arrangements for HSE management are being complied with that objectives performance targets are met. Reactive monitoring provides information on incidents (including near-miss incidents, ill-health or environmental damage) that have occurred provides insights into the means of preventing similar incidents in the future. 7.2 Records The operating unit shall maintain records that document the extent of compliance with its HSE policy its arrangements for effective HSE management. The integrity, accessibility control of these records shall be ensured. 7.3 Reporting Performance indicators relating to the HSE objectives performance targets shall be reported regularly to the head of the operating unit the Corporate HSEQS department. Each operating unit shall prepare annual report(s) covering the HSE performance. The HSE data presented shall be independently verified by a third party. 7.4 Non-compliance Corrective Action Non-compliances with the requirements of the operating unit s arrangements for effective HSE management shall be investigated corrective action considered implemented where agreed by operating unit line management. 7.5 Incident Reporting Incidents that affect, or could have affected, the HSE performance shall be investigated, recorded reported so that the relevant lessons can be learnt appropriate actions taken. Incidents shall be reported to regulatory bodies, to the extent required by law, to the Maersk Oil Corporate HSEQS department. Corporate HSEQS will assist in improving methods for effective incident investigation. It is the responsibility of the operating unit to ensure that at least one person is trained suitably qualified to participate in incident investigations. 18

19 7.6 Incident Follow-up The immediate circumstances of an incident, the underlying causes, shall be identified to enable informed judgments to be made by those responsible for the follow-up action. Risk assessments that were carried out prior to the performance of the work to which the incident relates shall be reviewed where appropriate, the results reported as part of the learning improvement cycle. The mechanism, responsibilities timing for the follow-up of incidents shall be defined. 7.7 Sharing of Lessons Learnt Best Practices In the weekly Maersk Oil Corporate meeting, operating units shall report the learnings from incidents audits that may have wider implications for the Maersk Oil operating units, these learnings will be minuted. The participants will have the responsibility to disseminate those learnings with emphasis on proactive behaviours in their organisation. Operating units shall each establish a set of technical stards for equipment, conditions, legislation, so on, relevant for the unit. Technical forums between the units will disseminate learnings developments arrange joint updates of technical stards where relevant. Corporate HSEQS will establish maintain means to support learning in the organisation, covering, for example, the cross learning between operating units of lessons learnt for incidents, as well recording disseminating best practices. Framework for Effective Management of HSE 19

20 Auditing Management Review Monitoring Corrective Action CONTINUAL IMPROVEMENT Policy Objectives Leadership, Commitment Accountability Organisation, Responsibilties Documentation Communication Information Planning Implementation Evaluation Risk Management 8. Auditing Management Review 8.1 Operating Unit Auditing of Arrangements for Effective HSE Management The operating unit shall maintain an audit programme of first party (within operating unit), second party(between operating units by corporate HSEQS) third party (certifying agencies, independent institutes contractors etc.) audits, conduct periodic audits of the arrangements for effective HSE management, in order to: Determine whether the arrangements for HSE management are effectively implemented; hereunder ensuring that the 20 elements of Guidelines for Risk Based Process Safety or a similar comprehensive process safety management model are audited systematically. Identify areas for improvement, progressively leading to better HSE management. The audit programme shall consider the results of previous audits. Wherever possible, audits shall be conducted by multi-discipline teams independent of those having direct responsibility for the activity being examined. Findings from audits shall be documented resolved within a set time. Corporate HSEQS will lead planned other audits, along with third party representatives, of process safety asset integrity for each operating unit. 8.2 Corporate Management Review Corporate management reviews will be held on a bi-annual basis, headed by the Maersk Oil CEO or, in his/her absence, by the nominated representative. Each operating unit manager will present highlights of the past quarter HSE performance, including high potential HSE incidents accidents, KPIs, the five most important findings in audits a summary of conclusions of their internal management reviews (ref. 8.3). Maersk Oil Corporate Management HSEQS will review the effectiveness of the management of selected areas of HSE, including the gaps between operating unit HSE management systems the corporate policy framework. 8.3 Operating Unit Management Review Operating unit management shall review all aspects of the arrangements for effective HSE management its performance on a systematic regular basis, to ensure its continuing suitability effectiveness. The operating unit management review shall be documented operating unit management shall ensure that all recommendations for change are implemented in a timely manner. The management review shall systematically cover all aspects of HSE management, including the 20 elements of Guidelines for Risk Based Process Safety or a similar comprehensive process safety model at an appropriate frequency. 20

21 8.4 Maersk Oil Corporate Auditing of Operating Unit Arrangements for Effective HSE Management The Corporate HSEQS department will assist guide as required in development of arrangements for effective HSE management. Furthermore, the Corporate HSEQS department will maintain an audit programme conduct periodic audits of operating unit s arrangements for HSE management in order to: Determine whether the arrangements for HSE management are effectively implemented. Identify areas for improvement leading to progressively better HSE management. The audit programme will consider the results of previous audits. The audits will be conducted by multi-discipline teams independent of the operating unit being examined. The findings from the audits will be documented resolved within a set time. Framework for Effective Management of HSE 21

22 Appendix - Definitions Abbreviations Definitions For the purposes of this document the following definitions apply: As Low As Reasonably Practicable - To reduce a risk to a level which is as low as reasonably practicable involves balancing reduction in risk against time, effort, difficulty cost of achieving it. This level represents the point, objectively assessed, at which the time, effort, difficulty cost of further reduction measures become disproportionate to the additional risk reduction obtained. Audit - A systematic examination to determine whether activities related results conform to planned arrangements whether these arrangements are implemented effectively are suitable for achieving the organisation s policy objectives. Continual Improvement - Process of enhancing the arrangements for effective HSE manage-ment, to achieve improvements in overall health, safety environmental performance, in line with the HSE policy. Continual improvement is incremental change, whereas continuous improve-ment is gradual never-ending change. Contractor - Contractor is defined as a company providing services under contract to a Maersk Oil operating unit. Some requirements of this document may not be relevant for all types of contractor. Article 3.4, for example, may not apply to a company that provides temporary staff working directly under Maersk Oil management, or to a fabrication yard building jackets, top-sides etc., outside the operating unit s area of influence. Corporate - The Maersk Oil head office organisation. Effect - The result or consequence of an action. Environment - Surroundings in which an organisation operates, including air, water, l, natural resources, flora, fauna, humans, their interrelation. Hazard - The potential to cause harm, including ill health or injury; damage to property, equipment, facilities, products or the environment; production losses or increased liabilities. HSE Critical - Activities or facilities identified as vital to safeguarding HSE. HSE Objectives - The broad goals, arising from the HSE policy, that a company sets itself to achieve, which should be quantified wherever practicable. HSE Policy - A public statement of the intentions principles of the company regarding health, safety the environment. Incident - An event or chain of events, which has caused or could have caused injury, illness /or damage (loss) to assets, the environment or third parties. This use of incident embraces the concept of accident. 22

23 Mitigate - To make less intense or severe. Non-Conformance - Non-fulfilment of a requirement. Objective - Specific, measurable, achievable, relevant time constrained (SMART) goals in terms of HSE performance that an organisation sets itself to achieve. Operating Unit - All departments, business units operating companies responsible for activities involving either exploration, drilling or production (including the design installation of facilities). Performance Indicator - The measurements used to determine whether targets are being met. Risk - The combination of the likelihood consequences of a specified undesired event occurring. Risk Assessment - Overall process of estimating the magnitude of risk deciding whether it is tolerable. Target - The measurable stard set by management to which an activity or system element is to perform. Milestones en route to achieving an objective. Third Party - Someone other than the principals directly involved in a transaction or agreement. Abbreviations For the purposes of this document the following abbreviations apply: ALARP As Low As Reasonably Practicable FSO Floating Storage Off-loading unit APMM A.P. Moller - Maersk HAZID Hazard Identification Study CEO Chief Executive Officer HAZOP Hazard Operability Study EIA Environmental Impact Assessment HSE Health, Safety Environment E&P ESD F&G FPSO Exploration Production Emergency Shut Down Fire Gas Floating Production, Storage Off-loading unit HSEQS KPI QRA Health, Safety, Environment, Quality Security Key Performance Indicator Quantitative Risk Assessment Framework for Effective Management of HSE 23

24 Framework for Effective Management of HSE Revised August 2008