Saudi Aramco 7180 (5/89) G.I.

NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

5.002
ISSUE DATE

Approved

REPLACES

LOSS PREVENTION LOSS PREVENTION POLICY IMPLEMENTATION

* 05/16/1998
APPROVAL

01/01/1990
PAGE NUMBER

* ASJ

OF

CONTENT:
This general Instruction prescribes minimum requirements for compliance with and implementation of Saudi Aramco's Loss Prevention Policy Statement No. GEN-5. It contains the following information: 1 PURPOSE 2 POLICY 3 RESPONSIBILITIES 4 PRINCIPLES AND PRACTICES

1.0

PURPOSE
This instruction provides direction in developing and implementing programs that comply and are consistent with Saudi Aramco loss prevention policies, principles, and practices.

2.0

POLICY
"The Company is committed to prevention of accidents to minimize loss of life or bodily injury to its employees and damage to its physical assets. In fulfilling this commitment, which is essential to and equally important as production objectives, the Company will take every reasonable measure to provide and maintain a safe and healthful work environment for its employees and protect the public against foreseeable hazards resulting from operations. Loss in productivity and property resulting from accidental occurrences can be minimized through good management. Loss prevention is one aspect of this process and is the direct responsibility of management. All management functions will comply with loss prevention requirements applicable to the design, operation and maintenance of facilities and equipment. When conformity with any of these requirements would not be practicable or cost effective, a grant of variance will be sought. Reviews for compliance with this policy will be performed on a selective basis."

3.0

RESPONSIBILITIES
3.1 Corporate Management will ensure that Operating and Business Plans reflect and are consistent with Saudi Aramco's loss prevention policy. Executive and General Management will review, endorse and ensure development and administration of effective loss prevention programs by their respective managers; review safety performances, including formal reviews for policy compliance; conduct periodic inspections of

3.2

* CHANGE

** ADDITION

NEW INSTRUCTION

COMPLETE REVISION

Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

5.002
ISSUE DATE

Approved

REPLACES

LOSS PREVENTION LOSS PREVENTION POLICY IMPLEMENTATION

* 05/16/1998
APPROVAL

01/01/1990
PAGE NUMBER

* ASJ

OF

facilities and operations; and provide the required direction in support of approved loss prevention programs. 3.3 Managers will develop and actively administer loss prevention programs consistent with policies, principles and practices prescribed in this General Instruction; form and administer Safe Operations Committees to evaluate and recommend ways and means to improve the effectiveness of their respective loss prevention programs; and provide safe manning of facilities and operations. Superintendents and Supervisors will actively administer their department loss prevention programs; provide supervision and training required to ensure safe practice by employees; and conduct periodic inspections of their facilities, equipment, and work areas to detect and correct hazardous conditions and unsafe acts. All Employees will comply with applicable safety rules and regulations; perform their duties and work in a manner which will not imperil themselves, their fellow workers, or property in general; and will be alert to unsafe conditions and correct or report them as appropriate. Manager, Loss Prevention will recommend policy on loss prevention matters, counsel management on the development of programs implementing Saudi Aramco's loss prevention policy, monitor compliance with the policy, provide loss prevention consultative and technical support services, and coordinate responses to safety concerns raised by the Government. Chief, Preventive Medicine Services Division will provide staff support and consultative services on matters of environmental health. Chief, Environmental Affairs will provide staff support and consultative services on matters relating to environmental protection. Director, Social Insurance & Labor Relations will provide staff support and consultative services on matters of workmen's compensation resulting from work injuries.

3.4

3.5

3.6

3.7

3.8

3.9

3.10 Administrator, Finance and Insurance Claims Division will provide staff support and consultative services on matters involving corporate risk management.

4.0

PRINCIPLES AND PRACTICES

The following principles and practices will govern the compliance with and implementation of Saudi Aramco's loss prevention policy. 4.1 Risks to personnel and property will be minimized through application of best petroleum industry loss control practices. Saudi Arab Government and Company safety requirements,

* CHANGE

** ADDITION

NEW INSTRUCTION

COMPLETE REVISION

Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

5.002
ISSUE DATE

Approved

REPLACES

LOSS PREVENTION LOSS PREVENTION POLICY IMPLEMENTATION

* 05/16/1998
APPROVAL

01/01/1990
PAGE NUMBER

* ASJ

OF

including Saudi Aramco Engineering Standards, will be met in the design, construction, modification, operation and maintenance of facilities and equipment. When conformity with any of these requirements would not be practical or cost effective, a waiver will be sought. 4.2 Operating standards and instructions will be provided to control risks which cannot be feasibly eliminated through design. Compliance with safe practices and procedures will be consistently enforced. Employees will be protected against exposure to safety and health hazards (e.g. radiation, H2S, etc.) which are impracticable to eliminate, through proper use of personal protective equipment and periodic environmental monitoring and bio-surveillance where necessary. Inspection will be periodically conducted to detect and correct unsafe practices and conditions. Education and training of employees and management in skills required to perform, supervise and manage assigned tasks without mishap will be provided on a continuing basis. Employee participation in loss prevention efforts will be encouraged through good communications, a viable suggestion system and recognition of good safety performance. Physical capacities and job skills of employees will be consistent with assigned tasks, enabling them to work without endangering their own well being or that of others. Proper response to all accidental occurrences will be provided, including containment and control, reporting, investigation, and corrective measures. Contractors will be monitored by proponents of contracts to ensure that services performed are in conformity with Saudi Aramco loss prevention policies, principles and practices, and do not imperil personnel or property.

4.3

4.4 4.5

4.6

4.7

4.8

4.9

4.10 Off-the-job safety will be vigorously promoted to encourage and assist employees to protect themselves and their families from harm while at home, at recreation, on the highway, or wherever they may be. 4.11 Defensive driving training and driver evaluations will be provided to operators of Company vehicles. Vehicle operators will be held responsible and accountable for the safe and legal operation, without abuse, of the equipment being driven. 4.12 Accountability will be provided for personal and functional safety performance. How well safety responsibilities are met will constitute an important factor in overall job performance evaluation.

* CHANGE

** ADDITION

NEW INSTRUCTION

COMPLETE REVISION

Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

5.002
ISSUE DATE

Approved

REPLACES

LOSS PREVENTION LOSS PREVENTION POLICY IMPLEMENTATION

* 05/16/1998
APPROVAL

01/01/1990
PAGE NUMBER

* ASJ

OF

4.13 Reviews for compliance with this policy will be performed on a selective basis. Review teams will include appropriate expertise and be sufficiently independent of the operation being reviewed to assure credibility and effectiveness.

APPROVED: President and Chief Executive Officer

* CHANGE

** ADDITION

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COMPLETE REVISION