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HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT SYSTEMS

The Model Health,


Safety and
Environmental
Management System
(HSEMS)

Structure of the document

Terminology

policy and
strategic
objectives
organisation,
resources and
documentation

review

HSE management guidelines for working


together in a contract
environment

leadership
and
commitment
evaluation
and risk
management

implementation
and monitoring

planning

a u d i t

The document has two main sections, Guidelines and Supplementary.


The Guidelines describe the elements of the HSEMS model and their interrelationships. Theseor similarelements are described by some regulators and companies as performance standards. This term should not,
however, be confused with performance criteria, which are lower-level
specifications for the performance of operations.
The Supplementary section contains additional advisory material under
the same headings, including examples of the manner in which the
Guidelines may be applied. For convenience, the sections are numbered
as in the Guidelines, but with the prefix S.

Different health, safety and environmental management systems and


strategies have been developed by different companies and organisations, leading to a diversity of terminology. The terms which are used in
this document, are defined in an Annex to the Guidelines section.
Particular attention should be paid to the definition and usage in these
Guidelines of the terms risk, hazard, performance criteria, audit and
review. References in the Guidelines to a company may be taken to refer
to a particular facility or division operating a local HSEMS, as well to the
corporate HSEMS. Most of these Guidelines refer to an operating organisation directly responsible for HSE management and performance.
Company also includes any contracting organisation which provides services to the E&P industry, and which wishes to develop and operate an
HSEMS following these Guidelines.

ge 4

IMCA

Report No. 6.64/291


September 1999

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.

Consistent high quality database and guidelines


Our overall aim is to ensure a consistent approach to training, management and best
practice throughout the world.
The oil and gas exploration and production industry recognises the need to develop consistent databases and records in certain fields. The OGPs members are encouraged to
use the guidelines as a starting point for their operations or to supplement their own
policies and regulations which may apply locally.

Internationally recognised source of industry information


Many of our guidelines have been recognised and used by international authorities and
safety and environmental bodies. Requests come from governments and non-government
organisations around the world as well as from non-member companies.

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.

HSE management - guidelines for working


together in a contract environment
Report No: 6.64/291
September 1999

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.

Task Force membership


R Kratsas

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

G Van der Graaf

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.

HSE management - guidelines for working together in a contract environment

Table of contents
Purpose/Intent..................................................................................................................................................................... ii
Description ....................................................................................................................................................................... ii

Introduction

1.1 Background ...................................................................................................................................................................1


1.2 Interrelationship with other systems ..............................................................................................................................2

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

Final evaluation and close-out

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

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International Association of Oil & Gas Producers

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;

3 facilitate the interface of contractors activities with


those of the company, other contractors and subcontractors.
These programs should be designed to protect both
company and contractor personnel from workplace injuries and illness as well as from losses associated with the
incidents, while preserving the independent contractor
relationship.
This information is provided to assist company and
contractor management to visualise the process of managing contractor HSE programs. This document is not
intended to replace the necessary professional judgement needed to recommend the specific strategy to
follow. Each reader must analyse their particular situation, tailor the information in this document and obtain
the appropriate technical support.
Due to the rapid change that is occurring in the oil
and gas industry, together with the various companycontractor interface systems and management practices
that are evolving, this guideline will be reviewed every
two years. The Safety Health and Personnel Competency Committee will make updates and modifications
based upon review.

2 assist contractors in administering programs which


are consistent with the clients expectations;

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

A key part of the planning phase is risk identification.


It is also the prime factor in determining contracting
strategy. During this step the level of risk is assessed
and the most appropriate measures are identified to prevent incidents from occurring. Included in the appendices are additional tools such as checklists for HSE Plan
development, severity of risk definitions, and guidelines
for small and large contracts.

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HSE management - guidelines for working together in a contract environment

1
1.1

Introduction

Background

Within the oil and gas exploration and production industry,


the pattern of use of contractors
has changed significantly over
the last ten years. Figure 1 shows
the pattern of company and
contractor hours reported to
E&P Forum for the period
1985-1998.

Figure 1

Company contractor hours worked


(millions of hours)

1200

1000

Prior to 1985 the work force was


predominately company employees. Since 1990 there has been a
significant increase in the use of
contractor staff, with a resulting
shift in responsibility and risk
from the company to the contractor population.

800

Manhours Contractor
600

400

Manhours Company

200

1985

1987

1989

1991

1993

1995

1997

It can be seen from figure 2 that


there have been significant improvements in the safety
performance of both the Companies and their contractors during this period.

sure to risk, and it is important this trend continues,


particularly as use of contractors in the E&P industry
increases.

Historically the contractor Lost Time Injury Frequency


(LTIF) has not been as good as that of companies,
though the gap is narrowing. The trend is encouraging,
since contractor personnel generally have a higher expo-

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
8

LTIF performance of E and P companies and contractors

(number of lost workday cases, including fatalities, per million hours worked)

Overall

8.1

Company
6.6

Contractor

6.1

5.2

4.7

4.1

4
3.4
2.5

2
0

1989

1990

2.8

1991

3.3

1992

3.9
3.1

3.0

1993

2.5

1994

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2.6

1995

3.0
2.0

1996

2.7
2.0

1997

1.9
1998

International Association of Oil & Gas Producers

1.2 Interrelationship with other systems


While this document is designed to focus on improving contractor health, safety and environmental (HSE)
performance, it is an extension of the previous efforts
within the E&P Industry and various governmental
efforts around the globe to improve overall industrial
HSE performance.

This guideline follows the wording and structure used


in the Forums Guidelines for the Development and
Application of HSE-MS. However, by following the
guidelines in this document, a user should meet the
basic requirements of various industry associations, governmental entities and the users own requirements.

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.

All of these documents/programs utilise the same basic


model for a system starting with leadership and commitment and flowing to testing and evaluation in a continuous cycle. Loss of any portion results in a system
failure.

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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HSE management - guidelines for working together in a contract environment

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

The typical phases of a contracting process are shown in


Figure 3. The sectional headings addressing the phases
are shown on the right. Each section describes the tasks
and responsibilities showing a clear distinction between
the company and contractor(s). An overview of responsibilities is given in Appendix I.

Phases of the contracting process


Joint company / contractor activities
Company

Contractor

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

Joint completion of HSE and execution plans


Preparations

Pre-mob audits

Mobilisation

Kick-off meeting
Mobilisation

Pre-execution audit

Execution, supervision
and reporting

Monitoring, audits
and inspection

Review of de-mobilisation HSE plans

Execution

De-mobilisation

Acceptance of work
and restored site

De-mobilisation

Close-out

Review
Report

Pre-mobilisation

Final evaluation and report

2000 OGP

International Association of Oil & Gas Producers

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.

3.2 Description of work


The planning phase is generally a company activity,
but can be enhanced by use of specialised advisers. The
company is responsible for describing the work to be
executed. The description should be supported by documentation in the form of standards, drawings, etc.
allowing selected contractors to obtain a full understanding of the work required. The company may also
specify HSE requirements to be met; examples include,
but are not limited to, the following:
Emissions and waste generated by the activities
Timing of the activities

Requirements for site restoration


Reporting requirements, applicable laws and regulations etc.
Training expectations
Competence assurance
Materials to be utilised
Alcohol and drug testing policies
Medical policies
Prohibited work practices.

Location of the work

3.3 Risk identification


The company is responsible for making an initial assessment of the HSE risks involved in execution of the
work. This will aid the contractor and company in
developing programs and safe work practices to protect
all workers. The focus of the assessment during this
phase should be to evaluate the inherent hazards in conducting the work. In addition, the assessment addresses
the potential adverse consequences of an accident and
the potential adverse consequences of an incident to
the workforce, the public, the environment, company
and contractor assets and reputations. The level of risk
assessed for the proposed work should be the prime
factor in selecting a contracting strategy (as outlined
in Section 3.4) and in determining which measures are
most appropriate for consideration by the contractor to
prevent incidents from occurring and to minimise the
consequences of an event should it occur. The level of
risk is also indicative of the amount of time and effort
to be spent at later phases to provide assurance that controls are in place to reduce the risks to as low as reasonably practicable.

As a minimum, a risk assessment should include consideration of the following:


Nature of the work - materials to be utilised
Location of the work
Potential for exposure to worksite hazards (H2S,
Asbestos, etc.)
Potential exposure to hazards for all personnel
involved in the activities
Potential consequences of incidents (environmental damage, delays of project development, delay in
production operations, legal claims)
Exposure to negative publicity.
The risks assessed can be characterised as low, medium
or high in accordance with the Risk Assessment Matrix
approach shown in Figure 4. Definitions for the ratings
are provided in Appendix II.

2000 OGP

HSE management - guidelines for working together in a contract environment

Figure 4

Risk assessment matrix

Assets

No health
effect/injury

No
damage

Increasing probability

Never heard Heard of


of in E&P
in E&P
industry
industry

No effect

No
impact

Slight
Slight health
effect/injury damage

Slight
effect

Slight
impact

Minor health Minor


effect/injury damage

Minor
effect

Limited
impact

Major health Localised Localised Considerable


impact
effect
effect/injury damage

4
5

Single
fatality

Major
damage

Multiple
fatalities

Extensive
damage

Major
effect

A
Reputation

People

Environment

Severity

Consequence

Happens
Incident has
Happens
occurred in several times several times
our company per year in per year in a
our company location

Manage for continuous improvement

Incorporate risk
reduction measures

National
impact

Intolerable

Massive International
impact
effect

3.4 Contracting strategy


One of the most important strategic contract management decisions to be made by the company is on the
way in which the contractor, or alliance of contractors,
is held responsible for the management of HSE. Two
distinctly different modes are described below.
Mode 1 The contractor provides people and tools for
the execution of work under the supervision,
instructions and HSE-MS of the company. The
contractor has a management system to provide assurance that the personnel for whom he
is responsible are qualified and healthy for the
job and that the tools and machinery he is providing are properly maintained and suitable for
the job.
Mode 2 The contractor executes all aspects of the job
under its own HSE Management System, provides the necessary instructions and supervision and verifies the proper functioning of its
HSE Management System. The company is
responsible for verifying the overall effectiveness of the HSE management controls put in
place by the contractor, and assuring that both
the companys and the contractors HSE-MS
are appropriately compatible.

Selection of one of these modes is preferred. However,


in certain situations it may be necessary to adopt a mixture of the two modes. This can be accomplished by
following Section 3.5 of the E&P Forum Guideline for
the development and application of health, safety and
environmental management systems, report number
6.36/210. This section outlines the interfacing of contractors activities with those of the company and with
those of other contractors as appropriate. This may be
accomplished by means of a specific interface document
between the company and the contractor so that differences may be resolved and procedures agreed before
work commences. Examples of such situations are given
below.
Operations in an area where there is a limited selection of contractors able to meet the evaluation criteria. For example an alliance may have to be formed
between the company and available contractors
with the objective to develop, improve and implement an HSE Management System for the contractor while executing work under the management
system of the company. The management system
will initially aim at working under Mode 1.

2000 OGP

International Association of Oil & Gas Producers

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.

3.5 Contract schedule


A contract schedule should be developed with due consideration of the HSE issues and deliverables involved,
paying particular attention to allow adequate time for
mobilisation/demobilisation. This evaluation may well
highlight HSE issues that require special emphasis in
later contract phases.
6

2000 OGP

HSE management - guidelines for working together in a contract environment

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.

4.2 Purpose and responsibilities


The general practice in Companies for selecting contractors is through competitive tendering. In the prequalification stage, potential contractors are screened to
establish that they have the necessary experience and
capability to undertake the activities in question. Only
those being able to demonstrate that they can manage
in a fully satisfactory manner the HSE risks of the work,
should be included on the pre-qualified list. A formal
historical record of the HSE performance, including
findings of audits and inspections, of all contractors
previously employed, should be maintained by the company for use during the pre-qualification process.

The pre-qualification process is a crucial step in which


assurance is sought that the risks of the work will be
managed. The purpose of the pre-qualification stage
is for the company to agree on a list of contractors
that will be invited to bid, and a list of HSE bid evaluation criteria to be met. Pre-qualification is one of the
last safeguards in identifying suitable contractors. Once
contractors are qualified to bid, they are eligible for
award of a contract.
The company contract manager is responsible for prequalification and providing assurance that the contractors invited to bid can manage the HSE risks associated
with the work.

4.3 Standard pre-qualification documents


Pre-qualification is usually achieved by issuing a standard format document for the contractor to complete,
supported where necessary by historical performance
records. It may be necessary to review the content before
issue and to add, remove or emphasise requirements
specific to the activity.
As a means to streamline the pre-qualification process,
the E&P Forum recommends that companies adopt
the pre-qualification questionnaire, located in Appendix
III. Requests for additional or company specific information that is not included in the questionnaire can be
inserted into Section 9. By implementing this standard
format, both the company and contractors can devote
their resources to improving HSE performance rather
than reformatting existing information into a variety of
formats.

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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International Association of Oil & Gas Producers

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.

4.5 From pre-qualification to selection


Before entering the selection phase the company should
document the pre-qualified contractors and the rationale for the selection. At this time, the company specifies
the minimum evidence to be produced during the selection phase by the potential contractors demonstrating
that a sound Plan exists for implementing HSE management during the potential contract work to control
risks to as low as reasonably practicable. This information should be prepared by the contractor as part of the
HSE Plan.

Appendices V and VI provide requirements for an HSE


Plan for major and small contracts, respectively.
Dependent on the level of risk involved in the contracted work, the company should establish yardsticks
to measure the quality of the contractors HSE Plan and
criteria to be met. These measuring methods and criteria should be documented prior to the selection process
in the form of Bid Evaluation Criteria.

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HSE management - guidelines for working together in a contract environment

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.

5.2 Bid documentation prepared by company


The selection criteria used should consider significant
aspects such as costs, technical ability, reputation, and
the ability to meet schedules. The overall risk of contract and HSE management should be given appropriate
weighting along with other considerations when selection criteria are evaluated. This section outlines some
key considerations specific to the HSE portion of the
selection process.
Contractors should be given copies of the companys
HSE documentation relevant to the contract. Documentation in the tender package may include:
company HSE goals and objectives.
company HSE-MS.
definition of the scope of the HSE Plan and the
known hazards to be addressed.
list of HSE controls procedures and compliance
issues for the contract.
definition of the company/contractor anticipated
interfaces, the company supervision strategy and
interaction with company operations, interaction
with specific company plans such as emergency
response.
type and schedule of company and contractor training requirements and competencies.
specification of the minimum pre-execution requirements.

The HSE tender documentation should be compiled,


with due attention to the following:
It is the companys responsibility to assure that the
tender documents address the HSE requirements
for the contract and that knowledge about hazards
already identified by the company are passed on to
the contractor. The company should not assume
that the contractor knows of the hazards in the
workplace, which are associated with the execution
of contracted activities.
The contractor has independent responsibility for
his own HSE Plan, but documents should make
clear provision for the company to perform HSE
audits on the contractor in order to assess compliance.
The documents should include provision for the
company to suspend work if the contractor does
not observe the HSE criteria spelled out in the contract HSE Plan or HSE Case and, in particular at
mobilisation, to withhold permission to start execution and hold payments until a satisfactory preexecution audit has been achieved. Before any work
is suspended, the company should liaise with the
contractor to allow them the opportunity to rectify
any non-conformances.
Where special HSE provisions are to be provided,
the documents should specify these clearly and
identify who is to pay for them. Any constraints on
the methods of working should also be specified.

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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

requirements. The company should have the expertise


and resources to evaluate the alternatives proposed. The
tender documents should allow flexibility for the contractor to take ownership of HSE responsibilities under
the contract but allow for the company to effectively
manage the contract. Adequate lead times for tender
preparation should be allowed to avoid compromising
the establishment of a sound basis for HSE management.
The company should assure that the mobilisation and
demobilisation phases are adequately covered in the
HSE Plan. In some instances the ability to exercise
influence may be limited (for example when work is
being carried out in a yard or factory where only a small
percentage of the contractors workload is for the company).

5.3 Bid preparation by contractor


Some HSE requirements will have been supplied at the
pre-qualification stage. An important element that the
contractor should provide is their process for developing a written HSE Plan commensurate with the level of
risk involved in the work. This plan will be the main
element considered when carrying out evaluation of the
bid and should be regarded as the top document that
drives the specific HSE program for major contracts.
The HSE Plan could be developed along the lines presented in Appendices V and VI.
Examples of typical HSE Plans and Programs used
in similar contracts in which the contractor has been
involved may be submitted.
The contractors HSE Plan should clearly identify where
he believes his HSE-MS interacts with the HSE-MS of
the company and other contractors. A proposal should

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.

5.4 Pre-award meetings


The companys internal pre-award meetings should concentrate on reviewing the HSE program prepared by
the contractor, and on assessing how effective the contractor has been in providing assurance that all hazards have been identified & that suitable controls are
planned to reduce the risk to a level as low as reasonably
practicable.
A joint company and contractor pre-award meeting
with contractors should be used to clarify and further

10

assess the suitability of contractors HSE Plans and how


that plan interacts with the HSE MS of the company
and of other contractors.
Following these pre-award meetings the company
should assess whether the HSE Plan and acceptance criteria, as defined in Section 4.5 (Bid Evaluation Criteria),
have been met. This appraisal should be documented
as it is one of the crucial conditions for awarding the
contract.

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5.5 Incentive schemes for HSE


The best incentive scheme is one which values HSE performance and which results in a continuing long-term
relationship between company and the contractor based
on good HSE performance.
The need for additional incentives should be carefully
considered. To be effective a scheme should:
not discourage or suppress the reporting of incidents.

ensure that incentives are valued by the personnel


who are in a position to influence the performance
and maintain the systems.
be culturally sensitive to the local environment.
motivate personnel to change those behaviours that
detract from HSE performance.
appreciate the HSE culture of the contractor

be proactive and reward effort, eg, audits and follow-up rather than after the event statistics.

5.6 Contract award


Award of the contract should consider a number of areas
such as technical competence, ability to meet schedule,
and cost. The documented appraisal of the contractors
capability to manage HSE should be available from previous phases. This appraisal provides a go- no go cri-

terion, i.e., if a contractor does not meet the minimum


criteria, he should not be awarded a contract.
Once the award has been made, joint meetings should
be held as soon as possible to agree on the final HSE
Plan and detailed programmes.

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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.

6.2 Kick-off meeting


A kick-off meeting should be used as an opportunity for
the contractor(s) to become familiar with the location,
facility, personnel, and other work information. The
kick-off meeting is generally recognised as an important bridging step in working together to prevent incidents and resolve any health, safety and environmental
issues.
The kick-off meeting should be held immediately after
contract award and before the execution of any work.
For a new contractor, the kick-off meeting may include
the companys and contractors local management.
If the contractor mobilises locally at the work site, the
kick-off meeting may be held locally. If not, it may
be necessary to hold the initial kick-off meeting at the
contractors base office. This should be followed by a
subsequent mobilisation of key contractor and subcontractor personnel to the work site and possibly additional local kick-off meeting(s). The local meeting(s)
should be held immediately prior to the start of any
work as part of the mobilisation process.
The topics covered by the kick-off meetings might
include:
review of associated major hazards
confirmation of HSE Plan to be implemented
including confirmation that roles and responsibilities have been clearly defined and understood
confirmation of worker competence; this includes
both company and contract workers who are
exposed to workplace hazards as defined in the
description of work and risk assessment phases.

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confirmation of any HSE performance objectives


and targets
distribution and explanation of the companys HSE
policy statement, basic HSE rules and work procedures in as far as the contractor works under the
company HSE-MS
confirmation of the scope and schedule of HSE
activities for example; HSE meetings, audits and
reviews
interaction of companys and contractors contingency plans
contact with third parties to assure their role in
emergency response plans is known
confirmation that HSE induction and training
plans are in place and ready for start up
briefing of subcontractors on HSE requirements
incident reporting and investigation procedures
The meeting(s) may be structured as an HSE workshop, with participation by both company and contractor management.
The kick-off meeting(s) should be used as an opportunity to clarify or raise new HSE issues that may not have
been covered in the contract documentation. Account
should be taken in the meeting discussions of the contractors own HSE Management System, work culture
and working practices.

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6.3 Pre-job audits


The kick-off meeting may provide an opportunity to
discuss the mechanisms that will be involved to certify
that HSE systems are in place. It may also provide an
opportunity to check the condition of the equipment
and worksite in as far as is possible. It is important to
keep in mind that equipment and site may still be in use
for other jobs. The items listed under Section 6.2 can
be parts of the pre-job audit. Supplemental audit areas
might include the provision and maintenance of:
equipment and site to be used for the work

communication systems and procedures


environmental protection systems
health hazard identification and assessment, medical facilities, Medivac procedures.
The audit should provide recommendations to be implemented prior to commencing the work. The scope and
duration of the pre job audit can be determined by the
company and contractor, this determination is based
upon the job description and associated hazards.

HSE equipment

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7
7.1

Mobilisation

Objectives

The objectives of this phase are to assure that the HSE


Plan is modified, if warranted, and communicated to
all relevant personnel, both company and contractor.

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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7.3 Mobilisation audit


In the final stages of the mobilisation, an audit or review
against the projects HSE Plan should be completed
to determine whether the contractor has achieved the
necessary targets stated in the HSE Plan and whether
mobilisation can be considered complete. This can be
accomplished by a joint company/contractor HSE field
review or audit.

The options available at this stage are:


Minor deficiencies: the contractor should be
requested to implement corrective action and the
audit repeated. It may be possible to allow this to
take place in parallel with initiating the execution
phase.

Achievement of HSE Plan targets for this stage should


represent the first milestone of the project.

Serious omissions: the option of withholding permission to proceed or even terminating the contract
may be necessary.

Usually, the extent of the audit depends on the level


of risk associated with the activity. For a relatively low
risk contract, an audit may be conducted by means of
a simple checklist. For high-risk contracts, a more analytical approach may be used.

To minimise the possibility that the company could be


perceived as assuming responsibility for HSE supervision, the results of the mobilisation audit are documented
and processed through the contractors HSE-MS.

If the audit proves to be unsatisfactory, then the status of


the contractors progress should be carefully reviewed.

The mobilisation audit usually is structured against the


elements of the HSE-MS or, more specifically against
the HSE Plan elements (as outlined in Appendix V).

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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.

8.3 Contractor compliance


The roles and functions of the company contract holder
includes assurance of:
the contractors line management commitment to
HSE issues

contractors implementation and participation in


emergency exercises and drills

compliance with all HSE related clauses in the contract and the HSE Plan

compliance with incident and near-miss reporting,


investigation and follow-up.

the existence of contractors internal HSE control


system

the resolution of interface problems between contractors.

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

proper management of HSE risks which arise from


changes to the Plan

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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8.4 Competence assurance


During execution of the work, the company contract
holder must monitor the continued competence of the
contractor. This refers to any associated training commitment undertaken. Where necessary, the company
should also determine if any additional competence
assurance is needed as a result of local circumstances.
Monitoring should include a verification that the contractor complies with his management system that may
include:
competence and close monitoring of the replacement of personnel

provision of the necessary induction courses


training of contractor personnel in job related activities and procedures
completion of all agreed-upon HSE training, including any specified statutory training requirements
availability of HSE documents, instruction and
information leaflets with special attention to use of
local language reinforced with simple visual messages.

8.5 Inspection and HSE auditing/reviews


Inspections and audits provide the methods for monitoring contractor HSE activities. Regular inspections by
company representatives provide a means of checking
compliance with contract requirements. The frequency
of such inspections/verifications depends on the size of
the work and the risks involved. Auditing provides the
more formal and comprehensive assessments of adherence to the HSE Plan.

Inspections and audits should be performed by both


contractor and company. Joint inspection/audit programs may have the advantage of aligning sometimes
divergent objectives, enhancing common understanding and promoting constructive participation.
Findings of inspections and audits should be shared
between client and contractor with positive commitment from both parties to use the findings for improving performance.

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9
9.1

De-mobilisation

Objectives

The objectives of this phase are to identify the hazards


associated with demobilisation and identify and implement controls to minimise the risks. The HSE Plan
should be modified, if need be, to address new or unexpected hazards.

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.

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10

Final evaluation and close-out

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.

10.2 Final evaluation and report


Contracts should be closed out with a report of HSE
performance, providing feedback for future knowledge
and learning.
Ideally, HSE performance should be tracked on a regular basis throughout the contract with the final report
being the distillation of the regular monitoring process
and the end of contract review. This may take the form
of a close-out meeting where all parties are represented.
Thus, throughout the contract, contractor performance
should be monitored against Plan and any deviations,
positive or negative, annotated for reference in the closeout report/summary.
The format of the close-out report should reflect the
agreed Plan and contractual obligations between the
company and the contractor(s). However, there should
be sufficient flexibility to take account of mutually
agreed changes to the contract.

The analysis and summary of conclusions should


address:
quality of the original HSE Plan and its relevance to
the overall contractor(s) performance, stipulating
what was learned and how future contracts should
be structured.
highlighting positive aspects of learning and how
they can be applied in the future. This learning
should be shared with the contractor.
incorporation of any new hazards identified into
the hazard identification and evaluation process for
future contracts.
analysis of both the client and contractors HSE
performance for mutual improvement.
information on the contractor to be added as a reference for the client bid list and which may provide advice for improvements in assessing future
tenders.
The HSE close-out data should be recorded and made
accessible for future reference. A documented record of
HSE Performance should be kept on each contractor.
The contractor will again be advised that his overall
performance and HSE record will be taken into account
when being considered for future work.

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Appendix I: HSE responsibilities for company and


contractor key personnel
Company
Contract Holder should:

Company Site Representative:

conduct a structured HSE assessment of the anticipated contract


pre-qualify contractors for the bidders list using
standard HSE criteria
prepare contract HSE specifications for inclusion in
the tender documentation
prepare an HSE monitoring programme defining
the role of company representative(s) in ensuring
that the contractors HSE Plan is finalised and followed
prepare company audit and review programme and
secure appropriate resources
evaluate contractors HSE Plans
assure the adequacy of the contractors HSE Plan

Where a contractor may be working in a number of


areas it is common for a company to nominate someone who is responsible for the supervision of the physical work being executed under the contract at a specific
appointed site. The Site Representatives HSE responsibilities follow those of the company Representative, but
are specific to the site.

Company HSE Adviser:


Where there is access to company HSE advisers or specialists, it is important that the role of the adviser is
understood to be indeed that of an adviser. Advice, support or services may be sought from an HSE Adviser
on a routine or periodic basis but the responsibility for
HSE matters must remain unmistakably with the Contract Holder and Representatives.
Normally, the HSE adviser provides:
advice and support in HSE issues as requested

appoint competent company representative(s)


supervise company representative(s)
conduct a pre-execution HSE audit

review/audit services as requested

authorise the contractor to commence work if the


pre-execution HSE requirements are met

additional advisory support, where needed, to small


contractors.

monitor performance of the contractor against his


HSE Plan

In the case of a small local contractor a decision may


have been taken to provide additional supervisory support and assistance in HSE matters. The company HSE
Adviser and related specialists may be tasked with providing support but must exercise care (unless otherwise provided for by the contract or agreed to in the
HSE Plan) that this is recognised as a temporary phase
and that the contractor must be encouraged to develop
quickly to a point where such assistance is no longer
required.

authorise deviations from the contractors HSE


Plan
authorise additional HSE requirements as deemed
necessary
apply sanctions in the event of unauthorised deviations from the contractors HSE Plan
prepare HSE close-out report and distribute to
appropriate company and contractor personnel for
feedback

Company Representative should:


perform assurance checks on contractors review and
inspections and follow up
verify hazards and effects management controls, as
specified in the contractors HSE Plan, are implemented
identify deficiencies in contractors HSE Plan and
agree to remedial action with contractor or instigating
sanctions in consultation with Contract Holder.
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Contractor
Contractor Manager should:

Contractor Site Representative:

prepare and assure quality of contractors HSE


Plan
define competencies required for HSE critical positions
assign appropriate personnel to HSE critical positions

Where a contractor may be working in a number of


areas it is common for the contractor to appoint a person
or persons to assume responsibility on behalf of the
contractor representative to supervise the work being
executed under the contract in the specific area. The
HSE responsibilities are as for the contractor representative but with responsibility for a specific site.

assure adequate resources and time in the schedule


to manage the contract in accordance with the contractors HSE Plan
notify the Contract Holder in writing of his nominated contractor representative(s) and contractor
Site Representative(s)
provide resources to implement remedial actions
following audits in an expeditious manner.

Contractor Representative should:


fulfil the pre-execution HSE requirements
implement the contractors HSE Plan
seek formal approval from the Contract Holder for
any proposed deviations from or amendments to
the contractors HSE Plan
implement additional requirements as agreed upon
with the Contract Holder.

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Minor injury/ Detrimental to the performance Minor


illness
of present work, such as
damage
curtailment of activities or some
days abscence to recover fully,
maximum one week.
Agents which have limited health
effects which are reversible, e.g.
irritants, many food poisoning
bacteria.

Major injury/ Leading to permanent partial


illness
disablement or unfitness for
work or detrimental to
performance of work over
extended period, such as long
term absence. Agents which are
capable of irreversable damage
without serious disability, e.g.
noise, poorly designed manual
handling tasks.

Single fatality/ Also includes the possibility of


permanent
multiple fatalities (maximum 3)
total disability in close succession dur to the
or unfitness incident, e.g. explosion.
for work
Agents which are capable of
(small
irreversible damage with
exposed
serious disability or death, e.g.
population) corrosives, known carcinogens

Major
damage

Local
damage

Slight injury/ Not detrimental to individual


Slight
illness
employability or to the
damage
performance of present work.
Agents which are not hazardous
to health

Zero effect

Partial loss of plant;


plant shut down (for
at most two weeks
and/or estimated
repair costs below
$10,000,000)

Major effect

Plant partly down;


Local effect
process can (possibly)
be restarted (estimated
cost of repair below
$1,000,000)

Possible brief disruption Minor effect


of the process; isolation
of equipment for repair
(estimated cost
below $100,000)

0-100 Slight
impact

Severe env. dmg; 1,000 the company is


10,000
required to take
extensive measures
to restore the
contaminated area
to its original state.
Extended excedence
of statutory or
prescribed limit

Limited loss of
100 discharges of
1,000
known toxicity;
repeated excedence
of statutory or
prescribed limit and
beyond fence/
neighbourhood

10,000 - Major
100,000 national
impact

1,000 - Consider10,000 able


impact

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

Negligible financial <10


consequences; local
environmental risk;
within the fence
and within systems

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

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

Some local public


concern; slight local
media and/or local
political attention with
potentially negative
aspects for company
operations

Public awareness of the


incident may exist;
there is no public
concern

Reputation
Contamination Potential Definition
(litres)
impact
sensitive
areas
offshore
No financial
Several
Zero
No public awareness
consequences;
impact
no environmental
risk

Environment
Potential
Definition
impact

No disruption to the
Slight effect
process, minimum cost
of repair (<$10,000)

No damage to
equipment

Zero

No injury/
illness

No injury or damage to health

Assets*, equipment
Potential
Definition
impact

People (fatal, inj, occptnl health)


Severity Potential
Definition
rating impact

Definition of consequence severity of risk

International Association of Oil & Gas Producers

Appendix II

May include four fatalities in close Extensive


succession due to the incident or damage
multiple fatalities (four or more)
each at different points and/or
with different activities. Agents
with potential to cause multiple
fatalities, e.g. chemicals with
acute toxic effects (e.g. H2S, CO)
known human carcinogens

Total loss of the plant;


extensive damage
(estimated cost of
repair exceeds
$10,000,000)

Assets*, equipment
Potential
Definition
impact

*Assets are understood as referring to: the oil and gas reservoirs, production facilities,
pipelines, money, capital, and other company, contractor and third party property.

Multiple
fatalities

People (fatal, inj, occptnl health)


Severity Potential
Definition
rating impact
offshore
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

Reputation
Potential Definition
impact

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

areas

Contamination
(litres)
sensitive

*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.

Massive
effect

Environment
Potential
Definition
impact

HSE management - guidelines for working together in a contract environment

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International Association of Oil & Gas Producers

Appendix III: Contractor HSE pre-qualification


General guidelines for preparation of questionnaire
1 The questionnaire should cover the information required to assess the extent to which HSE
and its management are organised by the contractor.
2 The contractor should be advised to cover all (including support) relevant activities and not
just those conducted on company sites.
3 The questionnaire should be validated by a responsible contractor line manager prior to submission.
4 Emphasis should be placed on the need for complete answers substantiated by supporting
documentation as far as is practicable. Responses and any supporting documentation must
relate specifically to the policy and organisational arrangements of the company that would be
the signatory of any contract.
5 Submissions should be assessed by a scoring mechanism that can be used in the evaluation
process.
6 If necessary, follow-up discussion with the contractors management may be needed.
7 The contractor should be encouraged to identify where he exceeds company requirements and
this excellence should be recognised.

Table III: Questionnaire for contractor HSE pre-qualification

Section 1: Leadership and Commitment


(i) Commitment to HSE through leadership
a) How are senior managers personally involved in HSE management?
b) Provide evidence of commitment at all levels of the organisation?
c) How do you promote a positive culture towards HSE matters?

Section 2: Policy and Strategic Objectives


(i) HSE policy documents
a) Does your company have an HSE policy document? If the answer is YES please attach a copy.
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.

(ii) Availability of policy statements to employees


a) Itemise the methods by which you have drawn your policy statement to the attention of all your employees?
b) What are your arrangements for advising employees of changes in the policy?

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Section 3: Organisation, Responsibilities, Resources, Standards and Documentation


(i) Organisation - commitment and communication
a) How is management involved in HSE activities, objective-setting and monitoring?
b) How is your company structured to manage and communicate HSE effectively?
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.

(iii) Competence and General HSE training


a) What arrangements does your company have to ensure new employees have knowledge of basic industrial HSE, and to keep
this knowledge up to date?
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.)

(iv) Specialised training


a) How have you identified areas of your companys operations where specialised training is required to deal with potential hazards? (Please itemise and provide details of training given.)
b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the hazards identified, assessed and controlled?
(v) HSE qualified staff - additional training
Does your company employ any staff who possess HSE qualifications that aim to provide training in more than the basic requirements?

(vi) Assessment of suitability of subcontractors/ other companies


a) How do you assess:
i) HSE competence
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?
c) How do you ensure these standards are met and verified?

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International Association of Oil & Gas Producers

(vii) Standards
a) Where do you spell out the HSE performance standards you require to be met?
b) How do you ensure these are met and verified?
c) How do you identify new industry or regulatory standards that may be applicable to your activities?
d) Is there an overall structure for producing, updating and disseminating standards?

Section 4: Hazards and Effects Management


(i) Hazards and effects assessment
What techniques are used within your company for the identification, assessment, control and mitigation of hazards and
effects?

(ii) Exposure of the workforce


What systems are in place to monitor the exposure of your workforce to chemical or physical agents?

(iii) Handling of chemicals


How is your workforce advised on potential hazards (chemicals, noise, radiation, etc.) encountered in the course of their work?

(iv) Personal protective equipment


What arrangements does your company have for provision and upkeep of protective equipment and clothing, both standard
issue, and that required for specialised activities?

(v) Waste management


What systems are in place for identification, classification, minimisation and management of waste?

(vi) Drugs and alcohol


Do you have a drugs and alcohol policy in your organisation? If so, does it include pre-employment and random testing?

Section 5: Planning and Procedures


(i) HSE or operations manuals
a) Do you have a company HSE manual (or Operations Manual with relevant sections on HSE) which describes in detail your
company approved HSE working practices relating to your work activities? If the answer is YES please attach a copy of supporting
documentation.
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?

(ii) Equipment control and maintenance


How do you ensure that plant and equipment used within your premises, on-site, or at other locations by your employees are
correctly registered, controlled and maintained in a safe working condition?

(iii) Road Safety Management


What arrangements does your company have for combating road and vehicle incidents?

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HSE management - guidelines for working together in a contract environment

Section 6: Implementation and Performance Monitoring


(i) Management and performance monitoring of work activities
a) What arrangements does your company have for supervision and monitoring of performance?
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
ii) site employees?

(ii) HSE performance achievement awards


Has your company received any award for HSE performance achievement?

(iii) Statutory notifiable incidents /dangerous occurrences


Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmental)? (Answers with details including dates, country, most frequent types, causes and follow-up preventative measures taken.)

(iv) Improvement requirement and prohibition notices


Has your company suffered any improvement requirement or prohibition notices by the relevant national body, regulatory body
for HSE or other enforcing authority or been prosecuted under any HSE legislation in the last five years? (If your answer is YES
please give details.)

(v) HSE performance records


a) Have you maintained records of your incidents and HSE performance for the last five years? (If YES, please provide the following: Number of Fatalities, Lost Time Injuries, Lost Workday Cases, Medical Treatment Cases and Restricted Work Day Cases. Also
include the Fatal Accident Rate, Lost Time Injury Frequency and Total Recordable Incident Rate for each year. (NOTE: Please
include your company definitions of a the above mentioned terms - for clarification refer to the OGP Safety Performance Accident
Data Report.)
b) How is health performance recorded?
c) How is environmental performance recorded?
d) How often is HSE performance reviewed? By whom?

(vi) Incident investigation and reporting


a) Who conducts incident investigations?
b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?
c) Are near miss safety learnings reported?

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International Association of Oil & Gas Producers

Section 7: Auditing and Review


(i) Auditing
a) Do you have a written policy on HSE auditing?
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?

Section 8: HSE Management - Additional Features


(i) Memberships of Associations
Describe the nature and extent of your companys participation in relevant industry, trade, and governmental organisations?

(ii) Additional features of your HSE management


Does your company have any other HSE features or arrangements not described elsewhere in your response to the questionnaire?

Section 9: Company Specific Information

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HSE management - guidelines for working together in a contract environment

Appendix IV: HSE pre-qualification points system


Scoring
The contractors tender should be evaluated by attaching a score to the selected response for each
category (see Appendix III).
A suggested scoring system would be as follows (see Table II.1):

HSE Plan documentation [sections 1-5, 7, 8]

10

14

20

Performance and experience factors (HSE incidents) [section 6]

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

Commitment to HSE through leadership: item 1 (i)


No commitment from senior
management

HSE disciplines delegated to line


managers - no direct involvement by senior management

Evidence of active senior management involvement in HSE


aspects

Evidence of a positive HSE culture in senior management and


at all levels

Section 2: Policy and strategic objectives


HSE policy documents and availabilityL items 2(i) and 2(ii)
No written HSE policy

A policy statement exists but


not in a widely distributed document

HSE policy establishes responsibility for HSE, but not widely


distributed

Policy with clearly established


responsibility and accountability; is distributed to all employees; and is visible on notice
boards

Section 3: Organisation, responsabilities, resources, standards and documentation


HSE communication and meeting programmes: item 3(i)
None

Periodic HSE meetings for special operations only

HSE meetings performed on a


regular basis at management
and supervisor level

In addition to C, employees are


assigned topics to discuss on a
rotational basis

HSE training assigned to a specific person on location

HSE training applied to management but not comprehensively covered

HSE training given formally to


all relevant staff on their respective responsibilities

Staff HSE training item 3(ii)


No specialised staff training

Employee orientation and training programme: item 3(iii) (a)-(d)


No formal programme

Verbal instructions on company


procedures only

Employee handbook provided


and
supervisor
outlines,
explains and demonstrates new
employees job

2000 OGP

All under C together with:


follow-up observation of the
new employees work is also
included.
Employee
has
explained to him safe practices
and emergency duties

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International Association of Oil & Gas Producers

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

On-site basic training


ducted occasionally

con-

HSE training is given for specialised operations, but no routine training conducted

Formal HSE training programmes have been developed


in all areas and are conducted
on a regular basis. Retraining
periods are established

Written arrangements in place


for basic HSE matters only

HSE arrangements incorporated in HSE manual but not in


a format which is distributed to
all employees

HSE arrangements exist in


handbook form, distributed to
all employees, subcontractors,
sub-contractor employees and
are enforced. Follow-up audits
held with discussion/feedback
to management and employees

Contractor has written HSE


standards to cover all hazardous operations

Contractor has a system of specifying, monitoring compliance


and updating standards

Companys HSE system includes


methods for the assessment of
major hazards and effects

Companys HSE system has a


comprehensive set of methods
for the assessment of all HSE
hazards and effects and applies
them to all of its contracts with
documentation

Company has formal methods


for monitoring exposure to the
major hazards

Company has a set of formal


methods for monitoring exposure to all foreseeable hazards
(linked to its hazards and effects
assessment
method)
and
applies them to all contracts

Subcontractors: items 3(vi) (a)-(c)


No written arrangements

Standards: items 3(vii)(a)-(c)


No HSE standards available

Basic HSE standards exist

Section 4: Hazards and effects management


Hazards and effects assessment: item 4(i)
Companys HSE system does
not include hazards and effects
management

Companys HSE system makes


reference to the need to assess
hazards and effects but has
no comprehensive structure to
carry this out

Exposure of the workforce: item 4(ii)


Company does not actively
advise the workforce nor monitor exposure

Company advises the workforce


of the major hazards that they
are likely to be exposed to but
only monitors exposure randomly

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

Company provides information


to workforce in the workplace
on properties of potential hazards but has no active follow-up

Company distributes information to individuals in the


workforce at start of their
involvement on-site

Company maintains a database


of the properties of all potential hazards encountered in its
contracts and has formal methods of information distribution
to all personnel and trains its
workforce in handling, etc.

PPE requirements formally


assessed with spot checks on
usage

Procedures in place to assess


all PPE requirements, monitor
and enforce usage and replacement needs. Stock inventories
monitored, kept above demand
levels. Training in use provided
where needed

Personal protective equipment: item 4(iv)


Basic PPE provided to personnel but no corporate procedure
for assessing individual needs

30

PPE requirements formally


assessed but little effort made
to ensure correct usage

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HSE management - guidelines for working together in a contract environment

A
B
Section 4 (continued): Hazards and effects management

Waste management: item 4(v)


Company has no formal methods for the control of waste

Company has general procedures for waste disposal

Company has procedures for


the disposal of each of the main
categories of site wastes but
makes no provision for minimising environmental impact

Company has a formal system


for waste management (including identification, minimisation
and
classification),
which
actively seeks to minimise environmental impact

Contractor has written HSE procedures to cover all hazardous


operations

Contractor has procedures to


cover all HSE precautions,
typical contractor HSE Plan
requirements with a system of
updating and dissemination to
employees

A written programme outlining


supervisory guidelines, responsibilities, frequency and follow-up is in effect

In addition to C, periodic
inspections conducted by top
management or by teams of
specialists

Company has a general management strategy with some


procedures for its component
issues

Company has a complete strategy and set of plans and procedures covering vehicles, drivers
and operations management

Section 5: Planning and procedures


HSE or operations manuals: item 5(i) (a)&(b)
No HSE procedures available

Basic HSE procedures exist

Equipment control and maintenance: item 5(ii)


No defined programme to
identify or evaluate hazardous
practices and equipment conditions

Plan relies on outside sources,


i.e.
company
inspections.
Supervisory inspection of equipment confined to worksite personnel only

Road safety management: item 5(iii)


No special attention paid to
road safety as an area of hazardous activities

Importance of road safety


acknowledged but left to core
business managers/supervisors
to enact individually

Section 6: Implementation and performance monitoring


Management and performance monitoring of work activities: items 6(i) & 6(ii)
No system for formally monitoring HSE performance

Performance monitoring in a
few areas carried out

Company has a system for monitoring HSE performance in key


areas

Company has a comprehensive


system for monitoring performance in all areas with feedback
to employers for improvement
and has received awards for
achievement

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

One occurrence of a major incident in the last five years

Occurrences relate to minor


incident(s) only

No occurrences in the 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-

Rate is not improving

Shows only minor rate improvement

Rate steadily improving by more


than 20 per cent per year

Rate under 120 per cent that of


company

Rate better than that of company

Findings communicated to all


employees via specific company
notice

As in C but with the addition of


details of implication for improving HSE performance

Criteria for absolute performance


Rate over 200 per cent that of
company

Rate under 200 per cent that of


company

Incident investigation and reporting: item 6(vi) (a)-(c)


Findings not generally communicated

Findings communicated to key


personnel only via limited company internal memo or similar
media

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International Association of Oil & Gas Producers

A
Section 7: Auditing and review

Auditing: item 7(i) (a)-(c)


Audit process is cursory only HSE documents are not explicit
about auditing

Company HSE documents


include reference to auditing
but there are no specific details
about scheduling and coverage

Company HSE documents


include details of how auditing is to be implemented with
schedules/coverage for the key
areas

As in C but additionally specifies managements role in audit


and follow-up on action items

Company is a member of at
least one HSE association

Company is an active participant in at least one HSE association

Section 8: HSE management - additional features


Membership of associations: items 8(i) and (ii)
No memberships

32

Company has membership of at


least one association but with
no prominence given to HSE

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HSE management - guidelines for working together in a contract environment

Appendix V: HSE plan guidelines for major


contracts
HSE plan definition guideline
When the contracted activities are covered by a contractor HSE Management System (e.g. in line with the
E&P Forum guidelines on HSE Management Systems),
including HSE Cases for contracted installations, the
HSE Plan should only address those issues that are
unique for the contract under consideration. It should
focus on contract specific risks and the management
of controls to eliminate, reduce or mitigate these risks.
Other contract specific issues that may be addressed in
the Plan are:
organisation and personnel for the project
project specific procedures
project audit and review Plan
compliance with local rules and legislation

The checklist in Tables V.1 to V.7 can be used to check


the HSE plans for the project specific issues, but can
also be used to assess the HSE Management System
if this has not been certified or assessed in any other
manner.
When the contractor does not have an HSE Management System, the HSE Plan should be developed in line
with the principles of the E&P Forum guidelines for
HSE Management Systems or other comparable guidelines. The HSE Plan should follow principal headings
with an expansion into key checklist items (Tables V.1
to V.7) given on the following pages under the respective headings. The detail included in the tender should
be in keeping with the complexity of the contract and
should additionally include prompts for specific action
plans, target dates and action parties.

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International Association of Oil & Gas Producers

HSE Management system


Section 1 Leadership and commitment

Section 5 Planning and procedures

Leadership and Commitment

HSE procedures
Basic HSE rules

Section 2 Policy and strategic objectives

Emergency response procedures

HSE Policy Statement

HSE equipment and equipment HSE inspection

Section 3 Organisation, responsibilities, resources,


standards and documentation
HSE Organisation

Occupational health
Environmental
Road transport

HSE Professionals

Section 6 Implementation and performance


monitoring

Subcontractors
HSE Communications

HSE performance - general

HSE meeting programme

Incident investigation

HSE promotion and awareness


HSE competence requirements

Section 7 Auditing and review

Employee orientation programme

HSE auditing

HSE training (general)


HSE training (professionals)
HSE legislation
HSE standards

Section 4 Evaluation and risk management


Methods and procedures for hazards and effects
management
Assessment of exposure of the workforce to hazards
and effects
Material data sheets for safe handling of chemicals
Hazards and effects management and the assessment of PPE requirements
Methods and procedures for waste management

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Detailed checklists for HSE plan


Table V.1

Checklist for HSE plan: section 1 leadership and commitment

Leadership and commitment


Commitment to HSE aspects through leadership
Senior management should engender commitment to HSE issues at all levels through their personal style of leadership and management. Key elements include:

Visible expressions of commitment by senior people


HSE matters should be placed high on personal and collective agenda
All senior managers should set a personal example to others. They should be, and seen to be actively
involved in HSE matters, e.g. attendance at HSE meetings, personal instigation of HSE audits and reviews,
etc.
A feedback system should be established to encourage and facilitate employee feedback on HSE matters
A positive culture should be promoted at all levels
Policies and standards should be endorsed and implemented at the local level

Table V.2

Checklist for HSE plan: section 2 policy and strategic objectives

HSE policy statement


General
Written HSE policy
Dated and signed by Chief Executive
Policy statements:

specific to individual parts of the contract (e.g. locations/sites/plants)


cover specialised aspects (e.g. alcohol and drugs)
consistent with company guidelines
clear, concise and motivating
Content
Importance of HSE as a contract objective
Incidents and injuries are unacceptable
HSE established as a line management responsibility
Everyone is responsible for their own and their colleagues HSE at work
Distribution/availability
HSE policy distributed to all concerned, i.e.

handed to each employee by their line manager when issued


all new employees handed a copy by their line manager
displayed on notice boards at each work location (worksites and offices)
copies provided for each company on the contract (including subcontractors, suppliers and agents)
available to company and contractor employees in their working languages)
Discussion
Policy and its implementation when issued discussed by line managers with each employee

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International Association of Oil & Gas Producers

Table V.3

Checklist for HSE plan: section 3 organisation, responsibilities, resources, standards


and documentation

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.

provision of HSE documentation for small contracts


employment of HSE specialist for large contracts

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:

preparing and monitoring departmental action plans


formulation and suitability of HSE rules
planned inspections and audits together with line management
promotional material

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HSE management - guidelines for working together in a contract environment

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:

operating and emergency manuals


emergency plans
training for fire fighting teams, first-aiders etc.
emergency drills and exercises
protective equipment and rescue
Contact and liaison with government departments maintained

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:

direct access to emergency services


nearest hospital
helicopter availability
air ambulance, etc.
authorisation and implementation procedures fully understood
Emergency services: those organisations that would be expected to provide support in a major incident aware of requirements - briefed as to their likely role
External links
Lines established to communicate externally incidents that may endanger those on a site
Individual responsibilities and procedures for the company and contractor(s) to make government agency reports have
been agreed upon and clearly defined
Contractor able to communicate with all his workforce in an emergency
Communications take into account the diversity of languages amongst the workforce
Ability of base to mobilise in an emergency, e.g. doctors, hospital facilities
Emergency communications
Appropriate for incidents envisaged
Strengthened, duplicated or backed up by other means

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International Association of Oil & Gas Producers

HSE meeting programme


Scheduling
Contractor to establish a regular schedule for HSE meetings
Define responsible management person for scheduling such meetings
Procedure to maintain records of personnel attendance
Management participation
Managers seen to be involved by employees in:

HSE activities, objective setting and monitoring


taking action and providing resources to support their stated policies and objectives
Meeting structure
HSE meeting structure
Effective to manage and communicate on HSE
Allow employees full involvement and their own ideas to be heard
Typical agenda and meeting formats
Follow-up actions
Meeting actions
Where action is agreed, is it seen to be carried out?
Where action is not agreed, is it explained why?
Communication
Results of HSE activities, both successful and less successful, openly communicated to all employees
Meeting programme consistent with the rest of the management structure to communicate effectively HSE issues
Meetings recorded clearly and consistently
Structured to include health, safety and environmental items

HSE promotion and awareness


Techniques
Appropriate communications techniques used to make the personnel aware of HSE issues
How this is to be implemented, e.g.

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:

small give-aways with the HSE message


competitions
suggestion schemes
Part of business
HSE activities seen as an intrinsic part of running an efficient business rather than a costly and time-consuming extra

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HSE management - guidelines for working together in a contract environment

HSE competence requirements


Fitness of personnel
Confirmation of medical fitness from a recognised and approved medical facility of all proposed employees for contract

Employee orientation programme


Approach
Provision of a comprehensive handbook for all new employees
On-the-job orientation for supervisory staff
Established procedure in relation to follow-up of all new employees at the worksite
New employees
Adequately trained and confident of their own abilities
Coached to improve their work practices rather than blamed for mistakes
Accountability
Employees know they are accountable for HSE performance
Aware that their HSE performance is part of the contractors appraisal and reward system
Know that flagrant or frequent breaks of published HSE rules will result in disciplinary action
Procedures
Required for new employee orientation consistent with existing company guidelines
Reappraisal
Programme subject to appraisal and review

HSE training (general)


Contract standards
Statement on the current standard of workforce and training requirements to meet contract standard
Established training programme
Including:

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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International Association of Oil & Gas Producers

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

40

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HSE management - guidelines for working together in a contract environment

HSE training (Professionals)


Selection
Procedure in place for introducing competent HSE personnel on to the contract
Criteria used by the contractor to select his HSE supervisory staff (e.g. career development, professional status)
Training
Training is received by HSE professional
Required specialisation (e.g. drilling, radiation, chemicals.)
Appropriate levels of:

institute training
HSE management
Qualifications
Knowledge and experience of the contractors HSE professional:

match for competence for the job being carried out


match for the advice required

HSE legislation
Coverage
HSE Plan to include:

a comprehensive list of applicable legislation


government, national and international codes
company regulations., codes and standards
contractors identification of regulations, codes and standards
Hierarchical precedence stated
Definition of the legislation, codes, standards, etc. reflecting the companys previous experience
For contracts carried out in separate countries:

different legislation requirements


company assistance for foreign contractors
Waivers
Procedure for seeking waivers indicated

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

2000 OGP

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International Association of Oil & Gas Producers

Table V.4

Checklist for HSE plan: section 4 Evaluation and risk management

Methods and procedures for hazards and effects management


Coverage
Company assessment used as a starting point with additional hazards identified by the contractor
Contractors assessment carried out in accordance with his formal methods and procedures
Analysis techniques used in preliminary form where appropriate
Contractor covers all parts of the contract with assessments for the specific scope and locations of the contract
Experience and awareness
Contractor able to use material from previous similar projects and demonstrate awareness from past experience

Assessment of exposure of workforce to hazards and effects


Coverage
Contractor develops assessment of the scope and degree of exposure of workforce to hazards from the hazards and
effects management process

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

Hazards and effects management and the assessment of PPE requirements


Hazard assessment/PPE requirements
All processes identified that require use of PPE.
Statutory requirements similarly identified
Procedure in place for recording issue to personnel together with follow-up inspection and replacement/re-certification
Storage of PPE adequate and secure with procedure for ensuring adequacy of stock
PPE instruction/training
Requirements identified for all personnel
Instruction and training in its use provided where needed
Procedure for checking its use specified
Renewal/replacement
Schedule and criteria for renewing PPE
Schedule for re-certification
Responsibility for payment

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Table V.5

Checklist for HSE plan: section 5 Planning and procedures

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:

familiar to all employees including subcontractors


available in their working language
contents related to individual job descriptions
Deviations
Procedure for obtaining
Responsibility and level
Recording of authorised deviations
Omissions
Identify whether there are any areas where procedures for hazardous operations are not drafted
Commitment to prepare
Permit to work (PTW).
System in place
If the contractors own system is utilised, is it consistent with industry norms and in line with company guidelines?
Training/qualification
Training standards and qualifications set for personnel allowed to implement procedures

Basic HSE rules


Availability
Set of rules available and distributed to all employees
Users acknowledge receipt
New employees given a copy before starting work
Method of discussion and verifying understanding
Coverage
Covers health and environment as well as safety
Set of rules provided tailored to specific contracts
Identify hazards likely to be encountered
Address basic housekeeping and hygiene
Cover signals that will be encountered on site
Production/updating
Structure for producing updating and disseminating rules
Frequency
Personnel participation
Involvement of users

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Emergency response procedures


Coverage
Identification of potential major emergency scenarios, and procedures to use in such scenarios, e.g.

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

HSE equipment and equipment HSE inspection


HSE equipment
List drawn up of all HSE equipment to be used on the project
Identified by type, capacity and reference to standards
Requirements identified for each item of HSE equipment, including:

registry
classification
licensing
survey
test certification
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Critical items for HSE inspection


List drawn up of critical items of equipment that must be the subject of an HSE inspection
Procedure established for carrying out HSE inspection of equipment (covering health, safety and environmental aspects
to be reviewed)
Procedure established for checking standards where tools have been provided personally by tradesmen
Schedule
HSE equipment inspection schedule established for the duration of the project
Inspection frequency clearly identified for critical items of plant

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

Checklist for HSE plan: section 6 Implementation and performance monitoring

HSE performance - General


Measurement
Proposed plan to measure performance, i.e.

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.

Lost Time Injury Frequency/Total Recordable Incident Rate


numbers of first-aid and minor injuries.
material losses
vehicle incidents
spillages
occupational illnesses
sickness absenteeism
Feedback/analysis
Availability and use of performance records
Feedback/review/discussion at HSE meetings
Presentation and distribution to employees
Comparison of performance
Comparison of performance:
With other similar contract work
Frequency specified
Involvement of company personnel

Incident Investigation
Coverage
Reporting procedure for the contract
Covering not only injuries to and time lost by personnel but also:

health incidents (diseases, exposures to hazardous substances, near misses, etc.)


environmental incidents (spillages, releases, contamination, etc.)
other safety incidents (safety equipment failures, loss of capital equipment)
material loss
Methods
Incident investigation method established to determine and correct causes
Incidents first reported to the direct supervisor
Incident investigation teams led by the relevant managers
Differentiation made between numbers of first-aid treatments and other minor injuries
Procedure in place on vehicle incidents
Methods to be used for collecting incident statistics

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Table V.7

Checklist for HSE plan: section 7 Auditing and review

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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Appendix VI: HSE plan guideline for small


contracts
HSE plan definition guideline
When the contracted activities are covered by a contractor HSE Management System (e.g. in line
with the E&P Forum guidelines on HSE Management Systems), including HSE Cases for contracted installations, the HSE Plan should only address those issues that are unique for the contract
under consideration. It shall focus on contract specific risks and the management of controls to
eliminate, reduce or mitigate these risks. Other contract-specific issues that may be addressed in
the Plan are:
organisation and personnel for the project
project specific procedures
project audit and review Plan
compliance with local rules and legislation
etc.
Table VI.1

Checklist for HSE plan

Leadership and commitment

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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Hazards and Effects Management

HSE targets set in clear quantifiable terms


a system in place to assess workplace hazards
Planning and Procedures

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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Small Contract Typical HSE Plan Proforma


This provides guidance for a set of headings for a typical HSE Plan for use on small contracts. The
list of headings should be determined individually for the contract concerned.
Table VI.2

small contract typical HSE plan proforma

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?
The International Association of Oil & Gas Producers represents the worlds oil and gas
industry. Our members include private and state-owned oil and gas companies, national
associations and petroleum institutes.

What do we do?
Our purpose is to:
provide information about the oil and gas exploration and production industry;
represent our members interests at global and regional regulatory bodies; and
develop operating guidelines.

What are our aims?


We aim to:
increase understanding of the industry;
work with international regulators to develop workable proposals which take full
account of industry views;
contribute to continuous improvements in industry operating standards;
be a visible and approachable organisation to which governments and others refer on
matters relating to the industry;
maintain a large, diverse and active membership; and
communicate issues affecting members to international bodies and the public.

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