SHELL S EXPERIENCE IN DRIVING CULTURE AND COMPETENCY

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SHELL S EXPERIENCE IN DRIVING CULTURE AND COMPETENCY International Regulators Forum (IRF) Offshore Safety Conference, Perth 23 Oct 2013 Mary Grace Anderson VP Safety, Environmental, and Social Performance Mars-B, Olympus tension leg platform

DISCUSSION TOPICS Shell s Safety Culture Framework and Practices Shell Auger-Cardamom Project Example Challenges and Keys to Success Role of the regulator

SHELL S SAFETY CULTURE IN UA DEEPWATER We build on our Safety Culture with a Goal Zero mindset Safety is a Our House Value Personal Safety Goal Zero Comply Intervene Respect Commit Act Care Process Safety Design Technical Integrity Integrity Integrity Leadership Operating Integrity Make it personal Set clear expectations I Be accountable Visibly demonstrate behavior Goal Zero is a Mindset No harm to people. No leaks. Know my role Keep them healthy I Know the barriers Prove it Chronic Unease is a product of our behaviours.

SHELL S GOLDEN RULES 10/23/2013 4

PROCESS SAFETY Our Process Safety aspiration Our Assets and People are safe and we know it We design and build so that AI-PS risks are As Low As Reasonably Practicable (ALARP) Design Integrity Integrity Leadership Technical Integrity We maintain the hardware barriers Operating Integrity We work within the operational barriers

PROCESS SAFETY 10/23/2013 6

PERSONAL SAFETY - LIFE SAVING RULES OUR LIFE-SAVING RULES SHOW OUR COMMITMENT TO PEOPLE Work with a valid work permit when required Conduct gas tests when required Verify isolation before work begins and use the specified life protecting equipment Obtain authorization before entering a confined space Obtain authorization before overriding or disabling safety critical equipment Protect yourself against a fall when working at height 1 2 3 4 5 6 7 8 9 10 11 12 Do not walk under a suspended load Do not smoke outside designated smoking areas No alcohol or drugs while working or driving While driving, do not use your phone and do not exceed speed limits Wear your seat belt Follow prescribed Journey Management Plan

SAFETY LEADERSHIP And where we focus our Safety Leadership attention Sr. Leadership F2F engagements with office and field staff to demonstrate leadership values. Develop an effective methodology to share appropriate incident learning s to prevent repeat incidents. Sr level engagements with Partners in Safety, (contractors), to ensure ownership and commitment to Goal Zero mindset. Better utilize existing HSE metrics to proactively understand key exposure areas.

METRICS 10/23/2013 9

LEARNING FROM INCIDENTS (LFI) 10/23/2013 10

ASSURANCE PROCESS 10/23/2013 11

AUGER - KEY SUCCESS FEATURES Our House Shell Contractors Drilling Visitors 1. Work Planning Hazard Identification Engineering Risk Reduction Crew Engagement 2. Beach - Felt Leadership Visible field engagements Quality Time and Focus 3. Offshore field leadership Deck Safety People Supervision Foreman 4. Crew Training 12

AUGER - HOW IS IT DIFFERENT? ITS NOT: Statistics PowerPoint Telling WHAT WE DO DIFFERENTLY: Leadership visible at the sharp end! Sense of Personal Ownership & Urgency Deck time for Safety professionals and Offshore Leadership Listening / engagement Focus on People, Behaviors, Exposure, and Hazards Breakdown barriers to action Humility

. Our House - Our Family Every Day is Safety Day in Our House! Good Safety is about choices and behaviors I am my brother s keeper I work safely for my family Its different here at Auger, the people really care about each other

CHALLENGES: MEASURING SAFETY CULTURE Joelle Mitchell, NOPSEMA (29 Oct 2012): Survey findings should be used to drive further qualitative inquiry; they should not be interpreted in isolation from qualitative data. 10/23/2013 15

CHALLENGES - COLLECTION AND ASSESSMENT OF INCIDENT DATA I d like to propose that the IRF work closely with the WEC and with the OGP, and then align with the new Center for Offshore Safety in the U.S. to create one, common global system to track such data. ~ Marvin Odum, 2011 IRF Conference, Stavanger 10/23/2013 16

MORE SAFETY CULTURE CHALLENGES: Instilling safety as a value in new employees Buy-in with our partners-in-safety Public and regulator perceptions Competency assurance Maturity of process safety and personal safety 10/23/2013 17

ROLE OF THE REGULATOR We believe goal-setting regulatory regimes promote attributes that are fundamental to leading safety cultures. Risk based Data and analyses driven Promotes information sharing Provides positive reinforcement Candid communication Promotes innovation Provides flexibility to adjust Contributes to trust 10/23/2013 18

ROLE OF THE REGULATOR Regulatory regimes function most effectively when a single entity has broad safety and pollution prevention responsibility. Gaps, overlap, and confusion are not in the interest of safety or regulatory efficiency. ~Vancouver (2010) IRF Conference Summary It is not possible for a regulator to create a culture of safety in an organization by inspection or audit; that culture needs to come from within the organization. The regulator s role is to regulate in a manner that helps the organization be safe. Goal-oriented regulations build on the view that employers and employees in the industry are competent and willing to cooperate on finding good HSE solutions.

Prelude FLNG Questions? 10/23/2013 20