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Contents

HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEM

I HEALTH, SAFETY AND ENVIRONMENT (HSE) POLICY

9

1. POLICY ON ENVIRONMENTAL PROTECTION:

13

2. POLICY ON EMPLOYEE AND FACILITY SAFETY AND OCCUPATIONAL HEALTH:

15

3. POLICY ON PRODUCT SAFETY STEWARDSHIP:

17

4. POLICY ON MINIMIZATION OF EMISSIONS, EFFLUENTS AND WASTES:

19

II ADNOC HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEM

21

INTRODUCTION:

 

23

1. SCOPE:

23

2. DEFINITIONS:

24

3. HSE MANAGEMENT:

29

3.1.

POLICY:

29

3.1.1. Health, Safety And Environment (HSE) Policy:

29

3.1.2. Policy on Environmental Protection:

30

3.1.3. Policy on Employee and Facility Safety and Occupational Health:

31

3.1.4. Policy on Product Safety Stewardship:

31

3.1.5. Policy on Minimization of Emissions, Effluents and Wastes:

32

3.1.6. HSE Vision, Mission, Values:

33

3.2.

REQUIREMENTS:

34

Element 1: Policy, Leadership And Responsibility:

34

Element 2:

Safety:

34

Element 3: Occupational Health Protection:

35

Element 4: Product Safety:

35

Element 5: Environmental Protection:

35

Element 6: Risk Management:

36

Element 8: Incident Reporting And Investigation:

36

Element 9: Training And Competency:

36

Element 10: Community And Public Relations:

37

Element 11: Legal Requirements:

37

3.3. ROLES AND RESPONSIBILITIES:

37

3.4. ESTABLISHING HSE OBJECTIVES AND TARGETS:

38

3.5. IMPLEMENTING HSE PLANS:

39

3.6. IMPROVEMENT INCENTIVES:

39

3.7. HSE MANAGEMENT SYSTEM AUDITS:

40

3.8. MANAGEMENT REVIEW:

41

3.9. COMMUNICATIONS AND INFORMATION SHARING:

42

Health, Safety & Environment Management System

III.A.

DEVELOPMENT AND APPLICATION GUIDELINES

43

INTRODUCTION:

46

1. BACKGROUND:

46

2. PURPOSE AND SCOPE:

46

3. THE HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT SYSTEM MODEL:

47

4. STRUCTURE OF THE DOCUMENT:

48

5. TERMINOLOGY:

48

EXECUTIVE SUMMARY OF THE HSEMS MODEL:

48

1. LEADERSHIP AND COMMITMENT:

49

2. POLICY AND STRATEGIC OBJECTIVES:

50

3. ORGANIZATION, RESOURCES AND DOCUMENTATION:

51

3.1. ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES:

51

3.2. MANAGEMENT REPRESENTATIVE(S):

52

3.3. RESOURCES:

52

3.4. COMPETENCE:

52

3.4.1. General:

52

3.4.2. Training:

53

3.5. CONTRACTORS:

54

3.6. COMMUNICATION:

54

3.7. DOCUMENTATION AND ITS CONTROL:

55

3.7.1. HSEMS Documentation:

55

3.7.2. Document Control:

56

4. EVALUATION AND RISK MANAGEMENT:

57

4.1. HAZARD MANAGEMENT:

57

4.2. IDENTIFICATION OF HAZARDS AND EFFECTS:

58

4.3. EVALUATION:

59

4.4. RECORDING OF HAZARDS AND EFFECTS:

60

4.5. STRATEGY REQUIREMENTS:

60

4.6. OBJECTIVES AND PERFORMANCE CRITERIA:

60

4.7. RISK REDUCTION MEASURES:

60

4.8. IMPLEMENTATION:

61

5. PLANNING:

62

5.1. GENERAL:

62

5.2. ASSET INTEGRITY:

63

5.3. PROCEDURES AND WORK INSTRUCTIONS:

63

5.3.1. Developing Procedures:

63

5.3.2. Issuing Work Instructions:

63

5.4. MANAGEMENT OF CHANGE:

63

5.5. CONTINGENCY AND EMERGENCY PLANNING:

64

Contents

6. IMPLEMENTATION:

66

6.1. ACTIVITIES AND TASKS:

66

6.2. MONITORING:

67

6.3. RECORDS:

67

6.4. NON-COMPLIANCE AND CORRECTIVE ACTION:

68

6.5. INCIDENT REPORTING:

68

6.6. INCIDENT FOLLOW-UP:

69

7. AUDIT AND REVIEW:

70

 

7.1. AUDIT:

70

7.2. REVIEW:

71

SUPPLEMENTARY:

72

S1. LEADERSHIP AND COMMITMENT:

72

S2. POLICY AND STRATEGIC OBJECTIVES:

73

S3. ORGANIZATION, RESOURCES AND DOCUMENTATION:

73

S3.1. ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES:

73

S3.2. MANAGEMENT REPRESENTATIVE(S):

74

S3.3. RESOURCES:

74

S3.4. COMPETENCE:

74

S3.5.

CONTRACTORS:

76

S3.6. COMMUNICATION:

76

S3.7. DOCUMENTATION AND ITS CONTROL:

77

S4. EVALUATION AND RISK MANAGEMENT:

77

S4.1. IDENTIFICATION OF HAZARDS AND EFFECTS:

77

S4.2. EVALUATION:

77

S4.3. RECORDING OF HAZARDS AND EFFECTS:

80

S4.4. OBJECTIVES AND PERFORMANCE CRITERIA:

80

S4.5. RISK REDUCTION MEASURES:

81

S5. PLANNING:

82

S5.1. GENERAL:

82

S5.2. ASSET INTEGRITY:

82

S5.3. PROCEDURES AND WORK INSTRUCTIONS:

83

S5.4. MANAGEMENT OF CHANGE:

83

S5.5. CONTINGENCY AND EMERGENCY PLANNING:

84

S6. IMPLEMENTATION AND MONITORING:

85

S6.1. ACTIVITIES AND TASKS:

85

S6.2. MONITORING:

85

S6.3. RECORDS:

85

S6.4. NON-COMPLIANCE AND CORRECTIVE ACTION:

86

S6.5. INCIDENT REPORTING:

86

S6.6. INCIDENT FOLLOW-UP:

87

S7. AUDIT AND REVIEW:

87

S7.1.

AUDIT:

87

S7.2. REVIEW:

88

S7.3. LEVELS OF AUDIT:

89

Health, Safety & Environment Management System

III. B. AUDIT PROGRAM

91

INTRODUCTION:

93

1. AUDIT PROGRAM OVERVIEW:

 

93

1.1. PROGRAM RESPONSIBILITY:

93

1.2. PROGRAM OBJECTIVES:

93

1.3. PROGRAM SCOPE:

 

93

1.4. PROGRAM ELEMENTS:

94

1.5. PROGRAM PARTICIPANTS:

 

96

1.5.1. ADNOC Group HSE Committee:

96

1.5.2. ADNOC HSE Audit Manager:

96

1.5.3. Audit Team:

 

97

1.6.

DOCUMENT RETENTION PROCEDURE:

97

2. PRIORITISATION AND SELECTION OF SITES:

98

3. PRE-SITE VISIT ACTIVITIES:

 

98

3.1. AUDIT TEAM SELECTION:

98

3.2. TEAM LEADER RESPONSIBILITIES:

98

3.3. TEAM MEMBER RESPONSIBILITIES:

99

3.4. TEAM TRAINING:

 

99

3.5. SITE NOTIFICATION:

99

3.6. THE PRE-AUDIT QUESTIONNAIRE:

 

99

3.7. DATA REVIEW:

 

100

3.8. CHECKLIST UPDATE:

100

3.9. AUDIT TEAM MEETING:

 

101

4. THE ON-SITE AUDIT:

 

101

4.1. ENTRANCE BRIEFING AND TOUR:

 

101

4.2. AND DATA REVIEW:

FILE

102

4.3. INSPECTION:

SITE

 

102

4.4. INTERVIEWS:

102

4.5. MANAGEMENT SYSTEMS REVIEW:

 

102

4.6. EVALUATION:

103

4.7. EXIT BRIEFING:

 

103

5. POST-SITE VISIT ACTIVITIES:

 

103

5.1. REPORT PREPARATION AND DISTRIBUTION:

103

5.2. CORRECTIVE

ACTION

PLAN

PREPARATION:

104

5.3. CORRECTIVE

ACTION

PLAN

IMPLEMENTATION:

104

5.4. FOLLOW-UP REVIEWS:

105

6. QUALITY ASSURANCE PROCEDURES:

105

6.1. ANNUAL REPORT:

 

105

6.2. MANAGEMENT REPORTING:

 

105

6.3. NETWORKING OF FINDINGS AND SOLUTIONS:

106

6.4. UPGRADING AUDIT PROGRAM:

 

106

Contents

III C. AUDIT CHECKLIST

107

INTRODUCTION:

109

1. LEADERSHIP:

109

2. PERSONNEL:

110

3. PROJECT MANAGEMENT:

110

4. OPERATIONS INTEGRITY:

110

5. CONTRACTORS AND SUPPLIERS:

111

6. MANAGEMENT OF CHANGE:

111

7. ENVIRONMENTAL PROTECTION:

112

8. INCIDENT MANAGEMENT:

112

9. EMERGENCY PREPAREDNESS / CRISIS MANAGEMENT:

112

10. LEGAL REQUIREMENTS AND STANDARDS:

113

11. CONTINUOUS IMPROVEMENT:

113

12. FIELD REVIEW AND VISUAL INSPECTION:

113

13. SITE PROFILE:

113

Foreword

MANAGEMENT SYSTEM HEALTH, SAFETY AND ENVIRONMENT

ADNOC believes it to be in the best interest of the Directorates and Group Companies to have a comprehensive Policy and Guidelines for Health, Safety and Environmental programs. ADNOC further believes that by working together, each of the Directorates and Group Companies will have a stronger, more efficient and cost effective program.

Costs can be reduced and efficiencies improved by shifting our approach on Health, Safety and Environmental (HSE) issues to one that aligns and builds systematic processes for continuous improvement in business and HSE performance. A Health Safety and Environmental Management System (HSEMS) approach based on Total Quality Management principles will provide this.

The goal of this HSEMS is to develop and implement business processes that will help line management to:

Prevent major incidents resulting in injuries, environmental damages, business interruptions or loss of assets

Reduce operating costs

Reduce instances of non-compliance with ADNOC HSE Guidelines

Continuously improve HSE performance

Maintain ADNOC reputation

This HSEMS will enable ADNOC through its Directorates and Group Company General Managers and operating officers to drive the HSE Management process throughout all operations.

ADNOC has policies to help ensure that business is conducted with full concern for preserving the Environment and the Health and Safety of our workforce, neighboring community and customers. To carry out these policies, the traditional approach has been based on an array of directives, controls and programs for compliance with emerging regulations, standards, rules and procedures. Our performance has been very good, and this approach served ADNOC and the Group Companies well in the past; but it cannot easily keep pace with the current speed or complexity of our changing business, technical and organizational needs or the increase in laws, regulations, and international standards.

Proposed UAE and Abu Dhabi Emirate regulations provide for stricter HSE controls. Traditional HSE approaches fostered incremental compliance responses and "end of pipe" solutions when innovation and breakthroughs were needed; they provided little clarity or flexibility; they did not support prioritisation based on risk and they provided very few valid measures of performance. In essence, they did not provide a supporting framework to enable our leaders and workforce to manage this part of the business the same way they manage the rest of their business issues and in a way that enables continuous improvement. Many commendable initiatives have been undertaken to better control some individual HSE costs and issue drivers in each Directorate or Group Company. We must now take a look at all our processes and develop integrated management solutions.

Major integrated petroleum companies have recognized this need and are developing systematic approaches for addressing HSE issues and compliance. We must do likewise if we are to remain competitive in the world market and be perceived as a good environmental citizen. This HSEMS must and will be a tool to improve our business and our HSE performance.

Health, Safety & Environment Management System

The HSEMS will provide the following:

HSE goals and targets will be clarified. Business process analysis techniques will be used to identify important HSE processes associated with supporting and improving key activities and business performance. Targeted are the HSE processes and activities that, if done well, will help us consistently meet our business goals, objectives and legal requirements at less cost, and with greater efficiency. This process will highlight which HSE related processes and activities should be emphasised for continuous improvement.

Roles, responsibilities and expectations will be clarified. This will be accomplished through a systematic process to identify who, at each level of the organization, is responsible for implementation and improvement of each relevant HSE related process and activity.

Innovation will be fostered. This will be accomplished by providing a high degree of flexibility in how key HSE related processes and activities are implemented to deliver improved business performance, improved risk exposure and liability management, and cost effective regulatory compliance.

Improved measurement and feedback mechanisms will be provided. This will help management better assess individual, departmental, organizational, Directorate and Group Company progress and to initiate appropriate action to achieve desired results. It will facilitate more consistent recognition for improvement of results.

Participation and mobilisation of our leaders and workforce will be improved. This improvement will be gained by providing clarity regarding which HSE related processes and activities to emphasise and who is responsible for maintaining or improving each of those processes or activities. This will provide a clearer link between personal HSE related responsibilities and the business.

Teamwork in HSE related activities will be enhanced. This enhancement will come from establishing a systematic framework for better defining expectations, priorities, key processes and technologies. This will also strengthen support for decision making through improved analysis of HSE risks, exposures, liabilities, costs and benefits. This Health, Safety and Environmental Management System has been prepared by ADNOC Environment & Safety Division under direction of the ADNOC Group HSE Committee. This document consists of three separate tiers or sections. Tier one is the ADNOC HSE Policy Declaration statement. Tier II is the ADNOC Health, Safety and Environmental Management System. Tier III contains guidance on preparing an individual company HSEMS and how to use the Audit process to ensure continuous improvement.

Health, Safety & Environment Management System

HEALTH, SAFETY AND ENVIRONMENT (HSE) POLICY

ADNOC HSE Policy

I HEALTH, SAFETY AND ENVIRONMENT (HSE) POLICY

It is Abu Dhabi National Oil Company “ADNOC” Group Policy to conduct activities in a manner designed to minimize HSE risks, protect health and safety of employees, contractors, customers, the community at large and the environment in which the Group activities are conducted.

ADNOC, through active participation of all employees and contractors, will strive to manage HSE risks with the goal of preventing accidents, injuries and occupational illnesses, progressively minimizing environmental impact by reducing discharges and using energy efficiently and producing safe, quality products.

ADNOC and the Group Companies believe that good HSE performance will contribute/determine the success of the business and will treat HSE issues on par with all other primary business objectives.

On General HSE Issues, ADNOC Group will:

Commit to meet defined, measurable HSE targets.

Comply with all applicable laws and regulations and apply internationally recognized standards where local laws and regulations do not exist.

Hold all levels of line management accountable for HSE issues and for the development of positive attitudes in themselves and those whom they supervise.

Require contractors to apply same or similar HSE standards, practices and procedures.

Undertake appropriate reviews and evaluations to measure HSE performance against defined standards and to ensure compliance with this policy.

Provide appropriate HSE training to employees and contractors.

Develop and maintain HSE emergency procedures.

Periodically audit and review application of process control and management measures to ensure compliance with the HSE Guidelines.

Manage all risks to a level which is ‘As Low As Reasonably Practicable’ (ALARP).

Openly report HSE performance (good and bad).

On Health Issues, ADNOC Group Will:

Control and manage all chemical, physical, biological, mechanical and psycho-social factors which contribute to health risks, based on established guidelines and standards, applying best available technology consistent with good industry practice.

Strive to protect and promote the health of all employees and contractors.

On Safety Issues, ADNOC Group Will:

Design facilities, establish procedures, provide training and conduct operations in a manner that minimizes risks and hazards to workers, property and the community at large, applying best available technology consistent with good industry practice.

Ensure all operations are conducted with the safety of the employee and community as a primary objective.

Practice good product stewardship to ensure products are properly evaluated and provide As Low As Reasonably Practicable (ALARP) impacts to the environment and can be used safely by customers.

On Environment Issues, ADNOC Group Will:

Progressively reduce emissions, effluents and wastes and improve efficient use of natural resources and energy.

Minimize the impact of ADNOC Group activities on the environment and protect endemic fauna and flora at all sites of operations.

Provide products and services supported with practical documented advice which, when used and practised in accordance with this advice, will not cause undue effects on the environment.

Preserve and protect all locations of archaeological, historical and natural interest in the areas of operation.

ADNOC and the Group Companies will, through a documented Health, Safety and Environment Management System, implement this policy and ensure contractors apply similar systems. All employees and contractors are required to be committed to and perform their duties according to this general HSE Policy and the individual policies on Environmental Protection, Employee and Facility Safety and Occupational Health, Product Safety Stewardship, and Minimization of Emission, Effluents and Wastes.

H. E. Yousef Omair Bin Yousef Secretary General of SPC & General Manager of ADNOC

ADNOC HSE Policy

1. POLICY ON ENVIRONMENTAL PROTECTION:

It is the policy of ADNOC to ensure that the activities of ADNOC Directorates and Group Companies are conducted with full concern for safeguarding employee and public health, for protection of the physical environment and to comply with relevant environmental laws and regulations. ADNOC policy is to establish and implement effective compliance programs, including systems and procedures, for informing employees of the policy and their continuing obligation to conduct all activities in compliance with this policy and all applicable legal requirements.

Where ADNOC becomes aware of a hazard representing a risk not covered by existing laws or regulations, where appropriate, ADNOC will develop its own environmental standards and practices to provide for adequate protection of employees, public health and the environment.

In establishing timing, priorities, and levels of control, careful consideration will be given to benefits in relation to costs and technological feasibility. Particular attention will be given to achieving a reasonable balance between environmental goals and those for energy, jobs and the economy. Environmental laws and regulations will be periodically reviewed to comprehend changes in laws and regulations, national goals, new scientific and technical information and resource availability.

ADNOC will co-operate with industry and government in identifying environmental goals and in developing effective, reasonable and equitable control programs.

It is the responsibility of Directorate, Group Company Managers and Supervisors to ensure adherence to ADNOC environmental policy. Further, all employees are expected to be guided by this policy in forming plans, setting objectives and conducting their day-to-day activities. Contractors are to be made aware, of and are expected to comply with, ADNOC environmental policy and standards.

1

ADNOC HQ Building

ADNOC HSE Policy

2. POLICY ON EMPLOYEE AND FACILITY SAFETY AND OCCUPATIONAL HEALTH:

It is the Policy of ADNOC to ensure that the activities of its Directorates and Group Companies are conducted with full concern for the safety of its facilities in order to protect the safety and health of employees, communities adjacent to our operations and the general public. ADNOC will comply with all applicable legal requirements pertaining to occupational safety, health, process safety and fire protection. ADNOC Guidelines, based upon scientific knowledge, established engineering practice and appropriate industry standards, will be developed when existing laws and regulations do not provide for adequate protection.

ADNOC Directorates and Group Companies will carry out the objective of this policy by developing and maintaining safety management systems and procedures which ensure that process and employee safety and health considerations receive priority in design, operation, maintenance and decommissioning of facilities. ADNOC also will require appropriate safety and health training and will require strict adherence to safety rules and procedures.

ADNOC will hold each Manager, Supervisor and Employee accountable for the safe performance of their job and will measure their achievement in preventing occupational injuries, illness and accidental losses. ADNOC will provide qualified safety and health staff and appropriate equipment to support management in carrying out their objectives and goals in these areas. The same high standards are expected of contractors.

2

3

4

ADNOC HSE Policy

3. POLICY ON PRODUCT SAFETY STEWARDSHIP:

ADNOC will comply with applicable laws, regulations and international standards on product safety. In addition, ADNOC will: evaluate its products; identify reasonably foreseeable potential hazards to health and the environment; provide procedures and controls to avoid unreasonable risk; and assess the product safety compliance of its operations. Also, where appropriate, ADNOC will inform employees, customers, users, government agencies and the public concerning product safety. ADNOC will work with government and trade associations to develop and implement product safety regulations that protect employees, transportation personnel, customers and the public, taking into account scientific, economic and social factors.

ADNOC Directorates and Group Companies are responsible for the development, manufacture and marketing of products in a manner consistent with applicable laws and ADNOC's high standards of safety, health, and environmental protection. In the absence of adequate local government requirements, ADNOC will maintain standards of safety and health protection that consider scientific knowledge, international standards and established practices in more developed countries.

All hazardous purchased products transiting, stored or used on ADNOC properties will be accompanied by a material safety data sheet (MSDS) or its equivalent. Appropriate management, employees and contractors will be made aware of the product and proper precautions on transport, storage, use and disposal.

ADNOC HSE Policy

4. POLICY ON MINIMIZATION OF EMISSIONS, EFFLUENTS AND WASTES:

ADNOC, in addition to complying with all applicable environmental laws and regulations, is committed to reduce overall discharges (emissions to air, effluents to surface water, ground water and land surface and solid waste) from its operations wherever technically and economically feasible. This is part of ADNOC's commitment to safeguarding and protecting the physical environment.

Although proper management of wastes, including environmentally sound treatment, storage and disposal, is important in protecting the physical environment, eliminating their generation through source reduction and recycling is encouraged. Source reduction can be accomplished in many ways, including input substitution, product reformulation, process modification, operational changes and improved housekeeping. Recycling includes the use, reuse, and reclamation of residues both on-site and off-site.

ADNOC Directorates and Group Companies will be responsible for developing, implementing and maintaining programs at their facilities aimed at minimizing and preventing the generation of emissions, effluents and wastes. These programs will include the establishment of goals, encouragement of technology development and transfer and review of accomplishments.

ADNOC Directorates and Group Companies will operate plants and facilities and handle raw materials and products in a manner that protects the environment. ADNOC will work with suppliers, customers and the public, where appropriate, to resolve problems created by handling and disposal of hazardous substances from its operations.

ADNOC employees and contractors will be informed of this policy and directed to strive for the minimization and prevention of emissions, effluents and wastes in formulating plans, setting objectives and conducting their daily activities.

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Health, Safety & Environment Management System

ADNOC HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEM

ADNOC Health, Safety & Environment Management System

II ADNOC HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEM

INTRODUCTION

The ADNOC HSE Management System (HSEMS) is a quality-based, structured, process for managing HSE activities. Through this process, ADNOC management wishes to clearly communicate the minimum level of HSE performance it expects Directorates and Group Companies to meet, and its desire for continuous improvement of HSE performance. Personnel are to establish objectives and targets to meet or exceed these minimum levels of HSE performance, implement plans to achieve those objectives and targets, periodically measure their progress, then readjust the objectives and targets accordingly to provide continuous improvement.

ADNOC HSE policies (Section 3.1) provide the foundation for the HSEMS. To these are added HSE Vision, Mission and Value Statements (Section 3.1) to provide the philosophical cornerstone for the HSEMS by articulating where we are going as an organization, what we believe and how we conduct our business regarding HSE. In addition, the HSE Values provide a code of conduct to guide employees as they assume greater responsibility and accountability in the conduct of business.

ADNOC Management states its minimum levels of HSE performance as a set of Expectations (Section 3.2), which are to be used by the Directorates and Group Companies to translate ADNOC HSE Policies, Vision, Mission and Values into Systems, Programs and Procedures. These Expectations are grouped into eleven HSE areas called Elements. The Expectations focus on maximizing the effectiveness of ADNOC and Group Company Management and Staff to achieve desired HSE performance and improve the return from our assets.

While the Expectations indicate WHAT level of HSE performance is required, people at the Directorate and Group Company and facility level are empowered to determine HOW to meet or exceed that level of performance. They are expected to develop the Systems, Programs and Procedures best suited to their needs, after considering operating conditions and requirements, best practices, experience of other Group Companies, major international petroleum companies and international standards. A Library of HSE Systems, Programs and Procedures will be maintained by ADNOC E&S Division. This will allow for effective sharing of best practices and will assist in this process. Nevertheless, each Company will be free to achieve the HSEMS Expectations as it chooses.

This HSE Management System includes a description of roles and responsibilities for implementing and maintaining the system (Section 3.3), procedures for establishing HSE objectives and targets (Section 3.4) and for implementing HSE programs (Section 3.5). After the initial implementation of the HSEMS, ADNOC's goal is to establish a continuous improvement process to ensure that the HSEMS will be an integral part of each business (Section 3.6). The HSEMS includes HSE audit (Section 3.7) and management review (Section 3.8) procedures. Finally, the success of the HSEMS depends on there being clear, two-way communications and information exchange among and between all levels of the ADNOC Directorates and Group Companies organizations (Section 3.9).

1.

SCOPE:

The HSEMS has been developed to provide direction to the ADNOC Business Line Directorates and Group Companies and to ensure that the management of HSE throughout the organization is aligned with ADNOC HSE Policy, Vision, Mission and Values. The HSEMS should also be considered for all contractors.

Health, Safety & Environment Management System

2.

DEFINITIONS:

For the purposes of these HSEMS Guidelines, the following definitions apply:

••

Accident:

See ‘Incident’

••

ADNOC:

Refers to ADNOC and its General Manager and Directorates responsible for Policies and Guidelines for the operating entities described as ‘Company’ below.

••

As Low As Reasonably Practicable (ALARP):

To reduce a risk to a level which is ‘as low as reasonably practicable’ involves balancing reduction in risk against the time, trouble, difficulty and cost of achieving it. This level represents the point, objectively assessed, at which the time, trouble, difficulty and cost of further reduction measures become unreasonably disproportionate to the additional risk reduction obtained.

••

Audit Finding:

An Audit Finding is the identification of a situation which either does not satisfy applicable legal requirements or does not conform with the HSEMS.

••

Company:

Means ADNOC Directorates and Group Companies and may also include contractors, facilities and entities responsible to the ADNOC General Manger.

••

Crisis:

A Crisis is an incident or series of incidents that affect, or could affect, people, property, or the environment, and pose a serious threat to the company's ability to conduct business.

••

Crisis Management:

Crisis Management is a system of plans and procedures which prepares the organization to respond to and recover from crisis situations.

••

Discharges:

Discharges include releases to the air, surface water, groundwater, or land of any material which can have an adverse effect on human health or the environment, be it of gaseous, liquid, or solid nature or a combination thereof. Any discharges fall into one of three categories:

emission a discharge into the atmosphere

effluent a discharge of liquid

waste any other type of discharge

••

Element:

An Element is a part of the HSEMS system and represents a grouping of actions and/or expectations on key HSE focus areas, e.g., Safety, Risk Management, Training, etc.

ADNOC Health, Safety & Environment Management System

••

Environment:

The surroundings and conditions in which a company operates and upon which it may have an effect. This includes non-living systems (air, water, earth) and living systems (human, plant and animal) and social/cultural systems.

••

Environmental Effect:

A

direct or indirect impingement of the activities, products and services of a

company upon the environment, whether adverse or beneficial.

••

Environmental Effects Evaluation:

A

documented evaluation of the environmental significance of the effects of a

company's activities, products and services, both existing and planned. (This may also be termed an "Environmental Impact Assessment" or EIA.)

••

Expectation:

An Expectation is a statement of the minimum level for HSE performance expected for any element of the HSEMS.

••

Explanatory Notes:

Explanatory Notes provide additional information about the Expectations, but do not add to their requirements. While they may discuss how the Expectation should be met, they do not require a specific approach to meet the Expectation.

••

Facility:

Any single piece of equipment or structure, either standing alone, such as a well head, or grouped, such as a refining or gas plant, that has a potential to impact the environment.

••

Gap:

A

Gap is a finding that an Expectation is not being met.

••

Gap Analysis:

A

process that identifies a Gap, i.e., those areas of the HSE Management system

that can or need to be improved. This “Gap Analysis” becomes part of the initial evaluation or subsequent audit report and consequently part of the cycle of planning and implementation for continuous improvement.

••

Hazard:

This includes anything with the potential to cause harm, ill health or injury, damage to property, plant, products or the environment, production losses or increased liabilities. Hazards may be physical, chemical or biological.

••

Health Protection:

Health Protection encompasses the practices, procedures, equipment and training necessary for the prediction of health risk and protection of the health of persons working at company facilities. Providing health protection requires recognition, evaluation, control and management of the physical, chemical, biological and ergonomic hazards associated with processes and operations.

Health, Safety & Environment Management System

••

Health, Safety and Environmental Critical - (HSE Critical):

 

Designates activities, personnel or measures that have been identified as vital to ensure asset integrity, prevent incidents and/or to mitigate adverse HSE effects.

••

Health, Safety and Environmental (HSE) Management Audit:

 

An independent, systematic and documented process of objectively obtaining and evaluating verifiable evidence to determine:

n

Whether the HSEMS and its results conform to the audit criteria

 

n

Whether the system is implemented effectively

 

n

Whether the system is suitable to achieve the health, safety and environmental policy and objectives

••

Health, Safety and Environmental (HSE) Management:

 

Those aspects of the overall management function (including planning) that develop, implement and maintain the HSE policy.

••

Health, Safety and Environmental (HSE) Policy:

 

A

statement endorsed by the General Manager of ADNOC and ADNOC’s

Directorates and Group Company Senior Management of the intentions and principles of actions regarding the health, safety and environmental effects and which gives rise to strategic and detailed objectives.

••

Health, Safety and Environmental (HSE) Management Documentation:

 

The documentation describing the overall health, safety and environmental management system, which makes reference to the systems and procedures for implementing the health, safety and environmental management plan.

Health, Safety, and Environmental (HSE) Management Plan:

 

A

description

of

the

means

of

achieving

health,

safety

and

environmental

objectives.

 

••

Health, Safety and Environmental (HSE) Management Review:

 

The formal review by senior management of the status and adequacy of the health, safety and environmental management system and its implementation in relation to health, safety and environmental issues, policy, legal requirements, Codes of Practice and new objectives resulting from changing circumstances.

••

Health, Safety and Environmental Management System (HSEMS):

 

The structure, responsibilities, guidelines, practices, procedures, processes, systems and resources for implementing HSE management.

••

Health, Safety and Environmental (HSE) Strategic Objectives:

 

The broad goals, arising from the HSE policy, that a company sets for itself to achieve. These should be quantified wherever practicable.

ADNOC Health, Safety & Environment Management System

••

Incident:

An

event or chain of events which has caused or could have caused injury, illness

and/or damage (loss) to assets, the environment or third parties. (The word ‘accident’ is used by some writers and organizations to denote an incident which has caused injury, illness and/or damage, but the term also has connotations of ‘bad luck’ in common speech, and is therefore avoided by others. In these Guidelines, only the term ‘Incident’ has been used, which in the above sense embraces the concept of ‘accident’.)

••

Incident Reporting and Investigation:

 

Incident Reporting and Investigation are procedures undertaken to communicate

the

occurrence and to understand the root cause(s) of an incident.

 

••

Legal Requirement:

 

Legal refers to UAE and/or Abu Dhabi Laws, Regulations, Decrees and any Guidelines or Codes of Practice adopted by ADNOC under or because of these laws, regulations or decrees. It also refers to any international standards or treaties to which the UAE, Abu Dhabi Emirate or ADNOC is a signatory, or under which they have agreed in principle to operate.

Maintain (Procedures):

 

The term ‘Maintain’ as used in these Guidelines should be understood to mean ‘establish and maintain’ if the procedure which is to be maintained does not yet exist.

Monitoring Activities:

 

All

inspection,

test

and

monitoring

work

related

to

health,

safety

and

environmental management.

 

Performance Criteria:

 

Performance criteria describe the measurable standards set by management to which an activity or system element is to perform. (You may also think of performance criteria as ‘goals’ or ‘targets’.)

Practice:

Accepted methods or means of accomplishing stated tasks.

 

Procedure:

A

Procedure

is

a

written

description

of

how

a

specific

task

should

be

accomplished.

 

Product Safety:

Product Safety is the recognition, evaluation, control and communication of the potential health hazards of products and the materials used in their production.

Program:

A Program is a management tool for meeting an established objective which is less comprehensive than a System. It is composed of two steps: plan and implement. It usually addresses issues that have either limited scope or limited time frame.

Health, Safety & Environment Management System

Risk:

This is the product of the chance that a specified undesired event will occur and the severity of the consequences of the event.

Risk Management:

Risk Management is the systematic process of:

n

Identifying potential hazardous events and their potential consequences (hazard analysis)

n

Assessing the probability of the hazardous event occurring (risk analysis)

n

Reducing the risk by reducing the probability of a hazardous event occurring or mitigating its potential consequences.

Safety:

Safety encompasses the Systems, Programs, Procedures and Practices required for the prevention of incidents.

Screening Criteria:

These are the values or standards against which the significance of the identified hazard or effect can be judged. They should be based on sound scientific and technical information and may be developed by ADNOC, Standards Organizations, Industry Associations or Government Agencies.

Self-Assessment:

A

Self-Assessment is a process whereby a check is carried out by a unit or facility

to

determine how well its programs and procedures satisfy legal requirements and

conform with the Expectations of the HSEMS.

System:

A System is a management tool for meeting an established objective made up of

four steps: plan, implement, measure and adjust.

Training:

Training encompasses the steps necessary to ensure that employees and contractors have the knowledge, skills and values necessary to fulfil their environmental, health and safety responsibilities.

Waste Management:

Waste Management encompasses the assessment and disposal of wastes generated by facilities, with the goal of minimizing and preventing the generation of waste.

When reference is made for actions to be taken, the intent of the following words is:

Shall, Will, Must

means that an action is compulsory

Should, Would

means that an action is not compulsory but is

If possible

recommended

May

means that an action is optional and no recommendation is made as to whether or not it is carried out.

ADNOC Health, Safety & Environment Management System

3. HSE MANAGEMENT:

3.1.

Policy:

ADNOC has adopted the following Policies covering Health, Safety and Environmental activities. The Expectations of ADNOC's HSEMS state these standards for all Directorate and Group Company operations.

3.1.1. Health, Safety And Environment (HSE) Policy:

It is Abu Dhabi National Oil Company (ADNOC) Group Policy to conduct activities in a manner designed to minimize HSE risks, protect health and safety of employees, contractors, customers, the community at large and the environment in which the Group activities are conducted.

ADNOC, through active participation of all employees and contractors, will strive to manage HSE risks with the goal of preventing accidents, injuries and occupational illnesses, progressively minimizing environmental impact by reducing discharges and using energy efficiently, and producing safe, quality products.

ADNOC and the Group Companies believe that good HSE performance will contribute/determine the success of the business and will treat HSE issues on par with all other primary business objectives.

On General HSE Issues, ADNOC Group will:

Commit to meet defined, measurable HSE targets.

Comply with all applicable laws and regulations and apply internationally recognized standards where local laws and regulations do not exist.

Hold all levels of line management accountable for HSE issues and for the development of positive attitudes in themselves and those whom they supervise.

Require contractors to apply same or similar HSE standards, practices and procedures.

Undertake appropriate reviews and evaluations to measure HSE performance against defined standards and to ensure compliance with this policy.

Provide appropriate HSE training to employees and contractors.

Develop and maintain HSE emergency procedures.

Periodically audit and review application of process control and management measures to ensure compliance with the HSE Guidelines.

Manage all risks to a level which is ‘As Low As Reasonably Practicable’ (ALARP).

Openly report HSE performance (good and bad).

On Health Issues, ADNOC Group Will:

Control and manage all chemical, physical biological, mechanical and psycho-social factors which contribute to health risks, based on established guidelines and standards, applying best available technology consistent with good industry practice.

Strive to protect and promote the health of all employees and contractors.

Health, Safety & Environment Management System

On Safety Issues, ADNOC Group Will:

Design facilities, establish procedures, provide training and conduct operations in a manner that minimizes risks and hazards to workers, property and the community at large, applying best available technology consistent with good industry practice.

Ensure all operations are conducted with the safety of the employee and community as a primary objective.

Practice good product stewardship to ensure products are properly evaluated and provide As Low As Reasonably Practicable (ALARP) impacts to the environment and can be used safely by customers.

On Environment Issues, ADNOC Group Will:

Progressively reduce emissions, effluents and wastes and improve efficient use of natural resources and energy.

Minimize the impact of ADNOC Group activities on the environment and protect endemic fauna and flora at all sites of operations.

Provide products and services supported with practical documented advice which, when used and practiced in accordance with this advice, will not cause undue effects on the environment.

Preserve and protect all locations of archaeological, historical and natural interest in the areas of operation.

ADNOC and the Group Companies will, through a documented Health, Safety and Environment Management System, implement this policy and ensure contractors apply similar systems. All employees and contractors are required to be committed and perform their duties according to this general HSE Policy and the individual policies on Environmental Protection, Employee and Facility Safety and Occupational Health, Product Safety Stewardship and Minimization of Emissions, Effluents and Wastes.

3.1.2. Policy on Environmental Protection:

It is the policy of ADNOC to ensure that the activities of ADNOC Directorates and Group Companies are conducted with full concern for safeguarding employee and public health, for protection of the physical environment and to comply with relevant environmental laws and regulations. ADNOC policy is to establish and implement effective compliance programs, including systems and procedures, for informing employees of the policy and their continuing obligation to conduct all activities in compliance with this policy and all applicable legal requirements.

Where ADNOC becomes aware of a hazard representing a risk not covered by existing laws or regulations, where appropriate, ADNOC will develop its own environmental standards and practices to provide for adequate protection of employees, public health and the environment.

In establishing timing, priorities, and levels of control, careful consideration will be given to benefits in relation to costs and technological feasibility. Particular attention will be given to achieving a reasonable balance between environmental goals and those for energy, jobs and the economy. Environmental laws and regulations will be periodically reviewed to comprehend changes in laws and regulations, national goals, new scientific and technical information and resource availability.

ADNOC Health, Safety & Environment Management System

ADNOC will co-operate with industry and government in identifying environmental goals and in developing effective, reasonable and equitable control programs.

It is the responsibility of Directorates, Group Company Managers and Supervisors to ensure adherence to ADNOC environmental policy. Further, all employees are expected to be guided by this policy in forming plans, setting objectives and conducting their day-to-day activities. Contractors are to be made aware of, and are expected to comply with, ADNOC environmental policy and standards.

3.1.3. Policy on Employee and Facility Safety and Occupational Health:

It is the Policy of ADNOC to ensure that the activities of its Directorates and Group Companies are conducted with full concern for the safety of its facilities in order to protect the safety and health of employees, communities adjacent to our operations and the general public. ADNOC will comply with all applicable legal requirements pertaining to occupational safety, health, process safety and fire protection. ADNOC Guidelines, based upon scientific knowledge, established engineering practice and appropriate industry standards, will be developed when existing laws and regulations do not provide for adequate protection.

ADNOC Directorates and Group Companies will carry out the objective of this policy by developing and maintaining safety management systems and procedures which ensure that process and employee safety and health considerations receive priority in design, operation, maintenance and decommissioning of facilities. ADNOC also will require appropriate safety and health training and will require strict adherence to safety rules and procedures.

ADNOC will hold each Manager, Supervisor, and Employee accountable for the safe performance of their job and will measure their achievement in preventing occupational injuries, illness and accidental losses. ADNOC will provide qualified safety and health staff and appropriate equipment to support management in carrying out their objectives and goals in these areas. The same high standards are expected of contractors.

3.1.4. Policy on Product Safety Stewardship:

ADNOC will comply with applicable laws, regulations and international standards on product safety. In addition, ADNOC will: evaluate its products; identify reasonably foreseeable potential hazards to health and the environment; provide procedures and controls to avoid unreasonable risk; and assess the product safety compliance of its operations. Also, where appropriate, ADNOC will inform employees, customers, users, government agencies and the public concerning product safety. ADNOC will work with government and trade associations to develop and implement product safety regulations that protect employees, transportation personnel, customers and the public, taking into account scientific, economic and social factors.

ADNOC Directorates and Group Companies are responsible for the development, manufacture and marketing of products in a manner consistent with applicable laws and ADNOC's high standards of safety, health, and environmental protection. In the absence of adequate local government requirements, ADNOC will maintain standards of safety and health protection

Health, Safety & Environment Management System

that consider scientific knowledge, international standards and established practices in more developed countries.

All hazardous purchased products transiting, stored or used on ADNOC properties will be accompanied by a material safety data sheet (MSDS) or its equivalent. Appropriate management, employees and contractors will be made aware of the product and proper precautions on transport, storage, use and disposal.

3.1.5. Policy on Minimization of Emissions, Effluents and Wastes:

ADNOC, in addition to complying with all applicable environmental laws and regulations, is committed to reduce overall discharges (emissions to air, effluents to surface water, ground water and surface and solid waste) from its operations wherever technically and economically feasible. This is part of ADNOC's commitment to safeguarding and protecting the physical environment.

Although proper management of wastes, including environmentally sound treatment, storage and disposal, is important in protecting the physical environment, eliminating their generation through source reduction and recycling is encouraged. Source reduction can be accomplished in many ways, including input substitution, product reformulation, process modification, operational changes and improved housekeeping. Recycling includes the use, reuse, and reclamation of residues both on-site and off-site.

ADNOC Directorates and Group Companies will be responsible for developing, implementing and maintaining programs at their facilities aimed at minimizing and preventing the generation of emissions, effluents and wastes. These programs will include the establishment of goals, encouragement of technology development and transfer and review of accomplishments.

ADNOC Directorates and Group Companies will operate plants and facilities and handle raw materials and products in a manner that protects the environment. ADNOC will work with suppliers, customers and the public, where appropriate, to resolve problems created by handling and disposal of hazardous substances from its operations.

ADNOC employees and contractors will be informed of this policy and directed to strive for the minimization and prevention of emissions, effluents and wastes in formulating plans, setting objectives and conducting their daily activities.

6

ADNOC Health, Safety & Environment Management System

3.1.6. HSE Vision, Mission, Values:

ADNOC HSE Vision:

ADNOC will strive to be recognized as responsible, cost-effective and innovative in our approach to health, safety and the environment. Our performance will be a source of pride to our employees, ADNOC, the Emirate of Abu Dhabi and the UAE.

ADNOC HSE Mission:

ADNOC will identify the needs of the Emirate of Abu Dhabi, our customers, our employees and the physical environment. We will strive to deliver the highest quality of service and products while protecting the environment, employees and public health.

ADNOC HSE Values:

ADNOC values the health and well-being of our employees, contractors, neighbouring communities, customers and the natural environment.

ADNOC believes that:

All accidents and incidents are preventable

Line management is responsible for HSE performance

Every employee and contractor is responsible for working safely and in an environmentally responsible manner

Leadership and commitment of all employees and contractors is vital to successful HSE performance

Demonstrating innovative and competent HSE management is a prime tool for gaining and retaining employee, community, public and customer preference

Measuring and communicating performance is key to achieving continuous improvement

Profitability and reputation will be enhanced by continuously improving HSE performance

Proper HSE management will protect employees our neighbors, our operations and facilities

ADNOC is committed to:

Conducting our business with full concern for protecting the environment and the health and well-being of our employees, contractors, customers and the communities in which we operate

Integrating environmental, health and safety priorities into our business activities

Managing HSE risks of our business and being prepared to respond to emergency situations

Seeking opportunities to cost-effectively and continuously improve our HSE performance

Working with customers, suppliers, contractors, trade associations and government, to address HSE concerns and participate in the development of legal requirements, standards and Codes of Practice

Health, Safety & Environment Management System

Involving our employees in the development and achievement of HSE goals and objectives

Enhancing our HSE reputation

Conducting our business in compliance with legal requirements, standards and codes of practice

3.2.

Requirements:

The requirements of the HSEMS are defined by the system Elements and Expectations. For each of these elements either a specific document or system must be in place to ensure the Expectation is met. These are listed below. A guide on how to prepare Directorate or Group Company HSEMS systems is appended as Development and Application Guidelines. Element 1: Policy, Leadership And Responsibility:

1.1. Policies are established, communicated, and periodically updated.

1.2. Business Units establish and implement HSE Management Systems that are consistent with ADNOC HSEMS.

1.3. Clarity, definition and documentation of HSE roles and responsibility assignments for relevant employees and contractors are provided.

1.4. Managers demonstrate commitment to improved HSE performance through leadership and active, visible HSE participation.

1.5. Employees are encouraged to communicate opportunities for improved HSE performance.

1.6. Managers plan for the future by reviewing operations, evaluating risks/opportunities, setting measurable objectives, developing action plans and reporting annual achievements.

1.7. HSE performance indicators are established and measured.

1.8. Individual and team contributions to HSE performance are recognized and considered during employee performance reviews.

1.9. Procedures exist at all levels to encourage the transfer of good HSE systems, programs, procedures, practices and technology.

1.10. Contractor selection includes review of contractor HSEMS and HSE performance.

1.11. Management reviews HSE success and incorporates improvements to the HSEMS.

Element 2: Safety:

2.1. General Safety rules and a Permit-to-Work system are in place, communicated, documented, and enforced for each site to address identified hazards.

2.2. Safety rules and procedures are in place, communicated, documented and enforced for off-site work-related activities, including vehicle operation.

2.3. A self-audit ensures the adequacy and enforcement of the facility's safety rules and procedures.

2.4. A procedure to ensure that facilities, vehicles, and equipment are maintained in a safe and operable condition.

2.5. Purchasing and warehousing procedures consider HSE requirements.

2.6. Ensure that appropriate safety equipment and hardware are provided and properly inspected and maintained.

ADNOC Health, Safety & Environment Management System

2.7. Ensure that the safety implications of operation and facility changes both temporary and permanent are assessed, documented, communicated to employees and contractors, and properly managed. (This is often called a “Management of Change” system.)

2.8. Ensure that contractors manage HSE issues in a manner compatible with the ADNOC HSE Management System.

2.9. Employees are involved in the development and implementation of safety systems.

2.10. Identify and communicate personal protective equipment (PPE) requirements and train personnel to ensure that the PPE requirements are properly implemented and enforced.

2.11. Ensure that design data, drawings and operating manuals are up-to-date and available.

2.12. Purchasing and warehousing procedures and contracts include HSE requirements.

2.13. Ensure safety and environmental control equipment and systems are tested and maintained.

Element 3: Occupational Health Protection:

3.1. Protect the occupational health and well being of employees and contractors.

3.2. Ensure for camps, housing, food supply and sanitation the health protection of employees and contractors from infectious disease.

3.3. Evaluate and improve workplace ergonomic factors during design and implementation.

3.4. Ensure employees and contractors are fit for duty.

3.5. Identify, assure and manage occupational health risks.

3.6. Ensure adequate communication to employees and contractors of the hazards associated with jobs.

Element 4: Product Safety:

4.1. Product safety information is appropriate, accurate and available.

4.2. Ensure that the product safety aspects of new and reformulated products are evaluated by a proper, qualified professional prior to commercialization.

Element 5: Environmental Protection:

5.1. Ensure that all discharges generated at facilities are managed to control their potential impacts on human health, the local environment, business operations and costs.

5.2. Definitions of hazardous and toxic waste are established and the disposal of hazardous and toxic waste is documented.

5.3. Continually reduce discharges whenever technically and economically feasible and beneficial to the environment.

5.4. Ensure that the control and the minimization of discharges are evaluated in the design, operation and maintenance of facilities.

5.5. Systems are implemented to prevent and deal with spills and leaks.

5.6. Identify and manage instances of soil, ground water or surface water contamination resulting from facility operation.

Health, Safety & Environment Management System

5.7. Efficient use of energy and natural resources is a key consideration in the design, development and optimization of field operations, plants and products.

Element 6: Risk Management:

6.1. Identify hazardous activities and events and their potential consequences as part of on-going business operations.

6.2. Assess and prioritize risks, manage them in a cost effective manner, and document and communicate risk management decisions.

6.3. Ensure that the design of new and modified facilities incorporates appropriate environmental, health and safety protection measures. (This is often called a “HAZOP” review.)

6.4. Ensure that appropriate HSE assessments are conducted as part of the acquisition or disposal of assets.

6.5. Manage HSE hazards as part of equipment or facility decommissioning.

Element 7: Crisis Management:

7.1. Ensure that assessments of potential emergency situations, including transportation accidents, and their potential impacts are periodically conducted.

7.2. Ensure that emergency response and crisis management plans are in place for each facility, are kept up-to-date and are understood by those who may be affected and those who will respond.

7.3. Ensure that the resources necessary to respond to emergency situations are defined, available, ready to use and periodically tested.

7.4. Exercises are conducted to ensure applicability of the emergency response plan and the readiness of resources.

7.5. The relative roles, responsibilities and capabilities of ADNOC, contractors and emergency response agencies are understood and incorporated into emergency response plans.

Element 8: Incident Reporting And Investigation:

8.1. An incident reporting system is in place which, at a minimum, includes the types of incidents to be reported, the level of management to be informed and the time frame for reporting.

8.2. Ensure that incidents are investigated to determine root causes, costs and the corrective actions necessary to prevent their recurrence.

8.3. Ensure that corrective actions are implemented, documented and periodically assessed.

8.4. Ensure lessons learned are shared.

Element 9: Training And Competency:

9.1. Procedures ensure that HSE training and experience pre-requisites for relevant assignments are defined and documented.

9.2. Provide training to meet HSE job requirements.

9.3. A competency evaluation system is implemented to evaluate staff in HSE critical assignments.

ADNOC Health, Safety & Environment Management System

Element 10: Community And Public Relations:

10.1. A procedure for maintaining community contact and addressing concerns is established and maintained.

10.2. Contact with appropriate local HSE authorities is established and maintained.

10.3. Public Relations are knowledgeable of HSE in relation to operations, projects, incidents and crisis management and ensures the facts are appropriately communicated to concerned parties, government agencies and the media.

10.4. Local concerns about ADNOC or its business units should be identified and addressed.

Element 11: Legal Requirements:

11.1. Ensure that all applicable HSE legal requirements are known and compliance is incorporated into relevant programs.

11.2. Monitor emerging HSE legal requirements and international standards development.

11.3. Identify opportunities for participating in the development of new legal requirements, where appropriate.

3.3. Roles and Responsibilities:

Responsibilities for implementation of the HSEMS are as follows:

1) The ADNOC Directors are responsible for the implementation of the HSEMS

2)

establishing Procedures for its implementation within their companies, and for achieving the Expectations 3) The Senior Line Manger at each facility is responsible for ensuring that the HSEMS is implemented at his facility and that appropriate resources and training are made available to understand the HSEMS and to achieve its Expectations

within their Directorates and accountable for achieving the Expectations The Group Company General Managers are responsible for adopting the HSEMS,

4) Directorate and Group Company HSE Staff are responsible for providing support to Line Management in implementing and overseeing the HSEMS. This function can be accomplished by developing, reviewing and periodically updating the necessary HSE Systems, Programs and Procedures, and by assisting Line Management in implementing appropriate self-assessment and audit systems

5)

Maintaining and enhancing the HSEMS, including development of Procedures to facilitate comments and advice from the field on suggested revisions to the system, and for obtaining the necessary Line Management approval for any proposed changes

Maintaining an HSE audit function to assure Line Management that the operations are in compliance with legal requirements, Codes of Practice and in conformance with the Expectations of the ADNOC and Directorate or Group Company HSEMS

Coordinating, on an annual basis, the development of a report summarising HSE performance for submission to the ADNOC Group HSE Committee who shall provide a combined HSE performance report of all Directorate and Group Company actions to ADNOC Management

Establishing and maintaining with ADNOC HSE function a “Library” to facilitate sharing HSE “Best Practices” and Systems, Programs and

The Directorate or Group Company HSE Manager is responsible for:

Health, Safety & Environment Management System

Procedures needed to meet the Expectations of the HSEMS. Participating in a network for transferring HSE technology and “lessons learned” as an aid to continuous improvement

Establishing a document control system for communicating and distributing the HSEMS and associated HSE Systems, Programs and Procedures. The document control system includes a process for issuing all HSEMS information through line channels, a mechanism to acknowledge receipt of documents, and reports to users highlighting any changes in Expectations along with a description of the reasons for the changes

3.4. Establishing HSE Objectives and Targets:

Diagram 1 is a depiction of the HSE Management System process as it would function at the Directorate, Group Company or facility level. The term “facility” can refer to either a single facility, such as a refinery or a production unit, gas plant, port or it can refer to a set of similar facilities, aggregated together.

CONTINUOUS IMPROVEMENT CYCLE

Diagram 1

Procedures

As shown at the top of Diagram 1, HSE policies provide the basic input for the HSE Vision, Mission and Values statement and for the Elements and Expectations of the HSEMS. Legal requirements define the regulatory boundaries in which the Directorates or Group Companies operate. Facility management reviews its HSE performance and the requirements of the HSEMS and develops a set of HSE Business Objectives to improve HSE performance, which should be integrated with the overall business objectives process. To facilitate this process, the business planning cycle should incorporate guidelines requesting a brief discussion of the overall HSE strategy and HSE objectives. Once HSE Business Objectives have been set, a Self-Assessment should be conducted. Since compliance with legal requirements, Guidelines and Codes of Practice are a critical part of the HSEMS, the Self-Assessment should include a careful review of these requirements and whether they are being met by the facility. The review should also examine the Systems in place to ensure that such requirements are identified and kept up-to-date.

ADNOC Health, Safety & Environment Management System

Any Expectation which is not being met by existing Systems, Programs and Procedures constitutes a Gap. In evaluating whether a Gap exists, it is important to consider the documentation and review requirements in the HSEMS. Clear assignment of responsibility, provision of adequate resources and documentation are required for all Systems, Programs and Procedures. In addition, Systems must include provisions for measuring results and for management review.

At the completion of the Self-Assessment, the facility may have a list of Gaps which require filling. These Gaps should be prioritised, with Gaps which represent a threat to health, safety or the environment, or non-compliance with laws, regulations and Codes of Practice, having immediate priority, while Gaps which are caused by lack of proper documentation or management review have lower priority.

Line Management should then develop its HSE plans, taking into account and establishing a balance between the following three considerations:

Filling Gaps in priority order

Seeking opportunities to reduce HSE cost without compromising HSE

••

performance Capturing operations, production and marketing opportunities created by improved HSE performance

3.5. Implementing HSE Plans:

Once the HSE Business Objectives have been established, facility personnel should develop specific plans including targets and timetables to achieve those objectives. As part of this process, Key Performance Indicators (KPI's) can be identified to help the facility track its performance. Resources should then be allocated, Systems, Programs and Procedures developed, and the plans implemented.

Periodically operations personnel should measure the results of HSE programs and

Management should then

compare them with the targets set for those programs. review:

The results of these measurements

Findings of self assessments and independent audits of the HSEMS (discussed in section 3.7)

Any other pertinent information, such as changes in HSE laws, regulations and codes of practice, business conditions or incentives for exceeding the expectations of the HSEMS

HSE targets should be adjusted as necessary. Any capital requirements generated by these new targets are to be integrated into the business objectives for that facility. The adjustment of HSE targets ends one continuous improvement cycle and begins the next.

3.6. Improvement Incentives:

Evaluation of the incentives to improve HSE should be an on-going process. These incentives can include:

Reduced accidents

Reduced emissions, effluents and waste

Lower cost

Improved reliability

Reduced potential liability

Improved reputation with regulators, the public and customers

Health, Safety & Environment Management System

Enhancement of employee pride

In

some cases it may be possible to quantify an economic incentive for exceeding the

Expectations of the HSEMS by comparing The Price Of Non-Conformance (PONC) with the Price Of Conformance (POC). Examples of PONC include the costs of cleaning up spills, repairing the damage caused by accidents, carrying out incident investigations, dealing with the greater regulatory or public scrutiny which results from a poor performance record, etc. Examples of POC include the costs of additional control equipment, additional staff, additional training, etc. If PONC is greater than POC, an economic incentive may exist for exceeding Expectations. As part of its consideration of continuous improvement, facility management should evaluate incentives for obtaining ISO 9000 and ISO14000 and/or similar certifications. If such incentives exist, the facility will be required to implement a document control system and other appropriate procedures to meet certification requirements. Facilities which do not find incentives for ISO standards or similar certifications, should consider whether there are incentives for establishing document control systems independent of certification.

3.7. HSE Management System Audits:

ADNOC shall establish and maintain an HSE Audit Program to determine the effectiveness of the HSEMS in fulfilling ADNOC HSE policies and overall business objectives. HSE performance, assessed by this Audit Program, will be reviewed with Directorate and Group Company Management. Conducting HSEMS Audits will be the responsibility of the ADNOC Group HSE Committee, who will report annually to ADNOC management on HSEMS performance.

A fundamental principle of ADNOC's approach to HSE auditing is a recognition of

the prime importance of periodic HSE Self-Assessments at the facility or business unit level. Such Self-Assessments are an essential tool for setting objectives and sustaining continuous improvement in HSE processes, HSE results and business performance and should be conducted on a regular schedule. Any finding of non-compliance with legal requirements or non-conformance with the Expectations of the HSEMS should be documented, and Action Plans developed to correct the situation. A business unit should carry out a Self-Assessment prior to an independent audit directed by ADNOC Group HSE Committee or ADNOC Internal Auditors.

Independent HSE audits will be conducted on a periodic basis as directed by ADNOC Group HSE Committee and/or Internal Audit staff to verify compliance with applicable legal requirements, to ensure conformance with the Expectations of the HSEMS and to confirm the effectiveness of the facility or business unit's Self- Assessments. Directorates and Group Companies will develop and maintain a written HSE audit protocol based on self-assessment, and consistent with state-of-the-art criteria for use in carrying out independent HSE audits. These audit protocols will be document-controlled and may serve as guidance for the development of self- assessments and audit protocols for use by facility staff. (ADNOC HSEMS Audit Program and the HSEMS Audit Checklist are Annexures to this Document.)

ADNOC Health, Safety & Environment Management System

ADNOC Group HSE Committee directed auditors will use the HSE audit protocol to develop an understanding of Directorate or Group Company HSEMSs. The audit team will also assess the effectiveness of the Management System by reviewing relevant documentation, inspecting operating sites and facilities, and interviewing employees and contractors.

Audits will be scheduled on the basis of the strategic importance of the business activity concerned, considering such factors as risk, environmental sensitivity, the results of previous HSE audits, and the HSE performance of the facility or business unit.

Audit findings will be recorded and reviewed with local Line Management at the conclusion of the audit. Subsequently, audit findings and recommendations must be documented and reported to those Senior Line Managers responsible for the activity and/or area audited. The responsible Line Managers must develop an Action Plan to address audit findings and recommendations. For self audits, the Senior Line Manager will be responsible to communicate annually a summary of the audit results and the success of the corrective Action Plan implementation through line channels to the ADNOC Group HSE Committee appointed Audit Manager.

The Directorate and Group Companies will develop and maintain an HSE audit system to track the status of HSE audit findings and recommendations to ensure that timely follow-up action is implemented and to facilitate and document the follow-up process. For ADNOC Group HSE Committee directed audits the ADNOC Group HSE Committee will maintain through Internal Audit an HSE audit data base to track the status of HSE audit findings, recommendations and implementation.

The ADNOC Group HSE Committee appointed Audit Manager shall, in conjunction with ADNOC HSE, ensure that independent HSE audits are led by personnel who:

Have professional experience and a thorough understanding of the activity, area and business sector being audited

Have been trained in quality auditing principles with a particular focus on HSE systems, programs and procedures

Personnel to serve on the ADNOC audit teams will be drawn on an ad hoc basis from various departments within the ADNOC organizations as needed to meet audit objectives and provide HSE training opportunities for Directorate and Group Company staff. Contractors may also be used to staff audit teams.

3.8. Management Review:

Directorates and Group Company Management will review the HSEMS at least biennially to ensure its continuing suitability and effectiveness. The review shall be documented.

Management Review must address the HSE performance of facilities, the commitment to continuous improvement in HSE performance and the status of HSE audit findings. The Management Review must also address the potential need for change in ADNOC HSE policies or in Directorate and Group Company HSE Systems and Objectives in light of emerging HSE trends and changes in the business.

Health, Safety & Environment Management System

3.9. Communications AND Information Sharing:

Communications and information sharing are critical to the success of the HSEMS. Communication is specifically required:

With employees, government agencies, customers, communities, and the public

Between facilities and units at the same level within a Directorate or Group Company and with their counterparts in the rest of the ADNOC organization

The Expectations of the HSEMS address the first type of communication and information-sharing. The requirements for communication between various levels of the management on HSE matters are the same as the communication requirements for other aspects of our business.

However, the HSEMS creates new opportunities and new incentives to communicate and share information horizontally throughout the ADNOC Directorates and Group Companies. By creating a common set of requirements for operations, the HSEMS facilitates the sharing of HSE Systems, Programs and Procedures. The emphasis that the HSEMS places on continuous improvements should create an even greater incentive for this information sharing. ADNOC E&S Division will maintain a “Library” of HSE Systems, Programs and Procedures, to facilitate sharing of “Best Practices” across all of ADNOC.

7

ADNOC Health, Safety & Environment Management System

III A.

DEVELOPMENT GUIDELINES AND APPLICATION

HSEMS Development & Application Guidelines

Authors:

These Guidelines have been styled by the ADNOC Group HSE Committee after those proposed by the E&P Forum. The E&P Forum Safety, Health and Personnel Competence and Environmental Quality Committees formed a special ad hoc Health, Safety and Environmental Management Systems (HSEMS) task force to develop these guidelines.

This same basic structure has been adopted by the International Standards Organization for the Environmental Management System (EMS) Standard Series 14000 (ISO 14000) and was used for the ISO 9000 standard services setting forth the Safety Management System (SMS)

The following petroleum and service companies participated in the development of the E&P Forum and/or ISO 9000 and ISO 14000 guidelines:

Agip

Halliburton

Shell

Amoco

Kuwait Oil Company

Statoil

British Gas British Petroleum Exxon

Mobil Pertamina Philips

UNOCAL

Health, Safety & Environment Management System

III.a.

DEVELOPMENT AND APPLICATION GUIDELINES

INTRODUCTION

1. BACKGROUND:

Petroleum and chemical activities are subject to extensive local and international legislation and regulation concerning Health, Safety and the Environment (HSE). Operators have HSE strategies to satisfy their own operating and regulatory requirements. For most, Safety Management Systems (SMS) are a principal component of such strategies. SMS guidelines have been developed both by individual companies and by national and international bodies. There is wide recognition of the benefits of objective or goal-setting approaches to safety. This is a fundamental principle of British Standard 5750 (BS 5750) and the SMS approach which draws on the management principles of the International Standard on Quality Systems, ISO 9000. Similarly, environmental aspects are subject to extensive regulation and Environmental Management Systems (EMS) (BS 7750 and ISO 14000) are used to control and manage environmental impacts. Further, BS 8800 Occupational Health and Safety Management System, has been implemented to include occupational health into this overall management scheme.

Although there are differences in the detailed handling of Health, Safety and Environmental Issues, safety and environmental management are converging towards the systems model of ISO 9000. It is upon the ISO 9000 system that ISO 14000 builds Environmental Management Systems.

The requirements of health, safety and environmental protection are not always in harmony. For example, measures necessary to safeguard personnel in emergencies may have adverse environmental effects, and vice versa. However, joint consideration of health and safety and environmental matters provides a framework within which such issues can be resolved, and an appropriate balance struck.

2. PURPOSE AND SCOPE:

These Health, Safety and Environmental Management System Guidelines are designed to:

Cover relevant Health, Safety and Environment (HSE) issues in a single document

Be adaptable to different types of operations

Recognize, and be applicable to, the role of contractors and sub-contractors

Facilitate operation within the framework of statutory requirements

Facilitate evaluation of operations to international standards

These Guidelines describe the main elements necessary to develop, implement and maintain a Health, Safety and Environmental Management System (HSEMS). They do not dictate specific performance requirements, but instead allow each Directorate or Group Company to set Policies and Objectives taking into account information about the significant health and safety hazards and environmental effects of their operations.

The Guidelines are templates for ourselves and our contractors that help assure us and others (such as government agencies, neighbors, partners, clients, insurers and the public) of compliance with stated HSE policies within an objective-setting management system. Furthermore, the guidelines are intended to build upon existing sound, workable and effective company systems and practices.

HSEMS Development & Application Guidelines

The HSE criticality of a given operation or situation dictates whether it warrants a formally documented and controlled procedure. In many instances the existing company practices will be less formal but nevertheless fully acceptable. Assuring the suitability of all aspects of the HSEMS remains the responsibility of each Directorate, Group Company and facility. These Guidelines should be read in the context and spirit of self regulation.

3.

THE

MANAGEMENT SYSTEM MODEL:

SAFETY

HEALTH,

AND

ENVIRONMENTAL

The model Health, Safety and Environmental Management System which forms the basis of these Guidelines is shown schematically in Diagram 2. Although this indicates a sequence of the HSEMS elements, many of the stages will in practice be addressed at the same time or revisited at different times. Likewise, this is only one depiction of the interrelation of these elements.

The HSEMS is not intended to be a stand alone exercise. It is to be merged into and become an integral part of the overall management system.

Diagram 2

THE MODEL HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT SYSTEM (HSEMS) PolicyPolicy && StrategicStrategic
THE MODEL HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT
SYSTEM (HSEMS)
PolicyPolicy && StrategicStrategic
ObjectivesObjectives
Organization,Organization,
ResourcesResources &&
DocumentationDocumentation
ReviewReview
Leadership
and
Commitments
EvaluationEvaluation && RiskRisk
ImplementationImplementation
&& MonitoringMonitoring
ManagementManagement
PlanningPlanning
Audit

Health, Safety & Environment Management System

4. STRUCTURE OF THE DOCUMENT:

The ADNOC HSEMS GUIDE has two main sections: ‘Guidelines’ and ‘Supplementary Information’. The Guidelines describe the elements of the HSEMS model and their inter- relationships. These elements may also be thought of 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. The sections are numbered as in the Guidelines, but with the prefix ‘S’.

5. TERMINOLOGY:

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 the ADNOC Directorates, Group Companies, facilities, contractors, and other operations under the purview of ADNOC and/or of the Abu Dhabi Supreme Petroleum Counsel.

EXECUTIVE SUMMARY OF THE HSEMS MODEL

KEY ELEMENTS OF THE HSEMS MODEL:

The Guidelines describe a management system, shown in Diagram 2 of this section, for setting and implementing ADNOC Policy and Objectives on Health, Safety and the Environment. Key elements of the HSEMS are shown in the table below.

HSEMS Element

Leadership and commitment

Policy and strategic objectives

Organization, resources and documentation Evaluation and risk management

Planning

Implementation and monitoring Auditing and reviewing

Addressing

Top-down commitment and culture, essential to the success of the system. ADNOC intentions, principles of action and aspirations with respect to health, safety and environment. Organization of people, resources and documentation for sound HSE performance. Identification and evaluation of HSE risks, for activities, products and services, and development of risk reduction measures. Planning the conduct of work activities, including planning for changes and emergency response. Performance and monitoring of activities, and how corrective action is to be taken when necessary. Periodic assessments of system performance, effectiveness and fundamental suitability.

Additional advisory material on each element is given in the Supplementary section.

HSEMS Development & Application Guidelines

1. LEADERSHIP AND COMMITMENT:

.

This section addresses the top - down commitment and culture necessary for the success of an HSEMS system

Diagram 3

Policy & Strategic Objectives Review Organization, Resources & Documentation Leadership and Commitments
Policy & Strategic
Objectives
Review
Organization,
Resources &
Documentation
Leadership
and
Commitments
Evaluation & Risk
Implementation
& Monitoring
Management
Planning
Audit

Senior Management must provide strong, visible leadership and commitment, and ensure that this commitment is translated into the necessary resources to develop, operate and maintain the HSEMS and to attain the Policy and Strategic Objectives. Management should ensure that full account is taken of HSE Policy requirements and should provide support for local actions taken to protect health, safety and the environment.

ADNOC must create and sustain a culture that supports the HSEMS, based on:

Belief in ADNOC's desire to improve HSE performance

Motivation to improve personal HSE performance

Acceptance of individual responsibility and accountability for HSE performance

Participation and involvement at all levels in HSEMS development

Commitment to an effective HSEMS

Employees of both ADNOC and its contractors must be involved in the creation and maintenance of a culture that supports HSEMS.

Health, Safety & Environment Management System

2. POLICY AND STRATEGIC OBJECTIVES:

This section addresses ADNOC intentions, principles of action and aspirations with respect to health, safety and environment and the aim of improved HSE performance

.

Policy & Strategic Objectives Organization, Resources & Review Documentation Leadership and Commitments
Policy & Strategic
Objectives
Organization,
Resources &
Review
Documentation
Leadership
and
Commitments
Evaluation & Risk
Management
Implementation
& Monitoring
Planning
Audit
Diagram 4

Company management will define and document its HSE Policies and Strategic Objectives and ensure that they:

Are consistent with those of ADNOC

Are relevant to its activities, products and services, and their effects on HSE

Are consistent with other policies

Have equal importance with other policies and objectives

Are implemented and maintained at all organizational levels

Are available to ADNOC, government agencies and the public

Commit the company to meet or exceed all relevant regulatory and legislative requirements

Apply responsible standards of its own where laws and regulations do not exist

Commit to reduce the risks and hazards to health, safety and the environment of activities, products and services to levels which are as low as reasonably practicable

Provide for the setting of HSE objectives that commit continuous efforts to improve HSE performance

Strategic HSE Objectives will be established and periodically reviewed. Such objectives will be consistent with both ADNOC and the company's policy and reflect the activities, relevant

HSEMS Development & Application Guidelines

HSE hazards and effects, operational and business requirements, regulations and the views of employees, contractors and customers.

3. ORGANIZATION, RESOURCES AND DOCUMENTATION:

This section addresses the organization of people, resources and documentation for sound HSE performance

.

Diagram 5

Policy &Strategic Objectives Organisation, Resources & Review Documentation Leadership and Commitments
Policy &Strategic
Objectives
Organisation,
Resources &
Review
Documentation
Leadership
and
Commitments
Evaluation & Risk
Management
Implementation
& Monitoring
Planning
Audit

3.1. Organizational Structure and Responsibilities:

Successful handling of HSE matters is a line responsibility, requiring the active participation of all levels of management and supervision; this should be reflected in the organizational structure and allocation of resources.

The company will define, document and communicate - with the aid of organizational diagrams where appropriate - the roles, responsibilities, authorities, accountabilities and inter-relations necessary to implement the HSEMS, including but not limited to:

Provision of resources and personnel for HSEMS development and implementation

Initiation of action to ensure compliance with HSE Policy

Acquisition, interpretation and provision of information on HSE matters

Identification and recording of corrective actions and opportunities to improve HSE performance

Recommendation, initiation or provision of mechanisms for improvement, and verification of their implementation

Control of activities while corrective actions are being implemented

Health, Safety & Environment Management System

Control of emergency situations

It will be stressed to all employees their individual and collective responsibility for HSE performance. The company will also ensure that personnel are competent (see section 3.4) and have the necessary authority and resources to perform their duties effectively.

The organizational structure and allocation of responsibilities will reflect the responsibility of line managers at all levels for developing, implementing and maintaining the HSEMS in their particular areas. The structure should describe the relationships between:

Different operating units or facilities

Operating and supporting services (whether the services are provided on the same facility or from a larger corporate organization)

Onshore and offshore organizations

Employees and contractors

Partners in joint activities

3.2. Management Representative(s):

Management representative(s) will be assigned responsibility, authority and accountability for coordinating implementation and maintenance of the HSEMS. The representative(s) will be accountable to senior Group Company, Directorate and ADNOC management. However, the appointment(s) should not reduce the responsibility of individual line managers for implementing the HSEMS in their particular areas.

3.3. Resources:

Senior management will allocate sufficient resources to ensure the effective operation of the HSEMS, taking account of advice from the management representative(s), line management and HSE specialists. Resource allocation should be reviewed regularly as part of the review of the HSEMS (see section 7.2), of management of change (see section 5.4) and of risk management (See section 4).

3.4. Competence:

3.4.1. General:

Procedures will be maintained for ensuring that personnel performing specific assigned HSE-critical activities and tasks are competent on the basis of appropriate:

Personal abilities

Skills developed through experience

Acquired knowledge

Systems for competence assurance should apply both to initial recruitment and to selection for new activities, and to both staff and contractors. The continuing competence of personnel to perform their duties should be regularly reviewed and assessed, including appropriate consideration of personal development and training required to achieve competence for changing activities and technologies (see section 3.4.2). Procedures for competence assurance include, among others:

Systematic analysis of requirements for tasks

Assessment of individuals' performance against defined criteria

HSEMS Development & Application Guidelines

Documented evidence of individual competence

Programs for periodic re-assessment

Identify manner in which tasks are to be performed

Identify manner in which tasks are to be performed Identify competencies (abilities/skills/knowledge) Select

Identify competencies (abilities/skills/knowledge)

performed Identify competencies (abilities/skills/knowledge) Select appropriate staff Provide training if necessary

Select appropriate staff

(abilities/skills/knowledge) Select appropriate staff Provide training if necessary Diagram 6 Review performance

Provide training if necessary

Select appropriate staff Provide training if necessary Diagram 6 Review performance 3.4.2. Training: The company

Diagram 6

Review performance

3.4.2. Training:

The company will maintain procedures to ensure and increase competence through identification of training needs and provision of appropriate training for all personnel. Training must be sufficient to ensure achievement of the company's policy and objectives, and meet or exceed that required by legislation and regulations. Appropriate records of training should be maintained (see section 6.3) and refresher training scheduled as required.

Diagram 7

Consider tasks and individuals

as required. Diagram 7 Consider tasks and individuals Identify type/extent/frequency of training needed Prepare
as required. Diagram 7 Consider tasks and individuals Identify type/extent/frequency of training needed Prepare
as required. Diagram 7 Consider tasks and individuals Identify type/extent/frequency of training needed Prepare

Identify type/extent/frequency of training needed

Identify type/extent/frequency of training needed Prepare training course/material Record training conducted
Identify type/extent/frequency of training needed Prepare training course/material Record training conducted
Identify type/extent/frequency of training needed Prepare training course/material Record training conducted
Identify type/extent/frequency of training needed Prepare training course/material Record training conducted
Identify type/extent/frequency of training needed Prepare training course/material Record training conducted
Identify type/extent/frequency of training needed Prepare training course/material Record training conducted
Identify type/extent/frequency of training needed Prepare training course/material Record training conducted

Prepare training course/material

of training needed Prepare training course/material Record training conducted Obtain participants feedback
of training needed Prepare training course/material Record training conducted Obtain participants feedback

Record training conducted

Prepare training course/material Record training conducted Obtain participants feedback Evaluate effectiveness Systems

Obtain participants feedback

Evaluate effectiveness
Evaluate effectiveness

Systems to monitor the effectiveness of training programs and to introduce improvements where necessary should be developed.

Health, Safety & Environment Management System

3.5. Contractors:

Procedures must be developed to ensure contractors operate a management system that is consistent with the requirements and provisions of ADNOC Policy and are compatible with the HSEMS of the company to which it is providing services. Procedures should facilitate interfacing of contractors' activities with those of the company and with those of other contractors, as appropriate. [This may be achieved by means of a specific interface document between company and contractor so that any differences may be resolved, and procedures agreed, before work commences]. Particular attention should be paid to the following:

Selection of contractors, including (among other considerations) specific assessment of their HSE policy, practices and performance and the adequacy of their HSEMS, commensurate with the risks associated with the services to be provided

Effective communication (see section 3.6) of the key elements of the company's HSEMS, and of the standards of worker and environmental protection expected from the contractor, including agreed HSE objectives and performance criteria

Sharing by company and contractor of relevant information which may impact on the HSE performance of either

The requirement that each contractor has an effective and relevant training program which includes records and procedures for assessing the suitability of staff or a particular individual and the need for further training

Definition of methods for monitoring and assessing contractor performance against agreed HSE objectives and performance criteria

3.6. Communication:

Procedures are to be developed to ensure that company employees and those of contractors and partners, at all levels, are aware of the:

Importance of compliance with the HSE Policy and Objectives, and their individual roles and responsibilities in achieving it

HSE risks and hazards of their work activities and the preventative and mitigation measures (see section 4) and emergency response procedures that have been established (see section 5.5)

Potential consequences of departure from agreed operating procedures

Mechanisms for suggesting to management improvements in the procedures by which they and others operate

Maintaining means of external communication in times of emergency is especially important and special contingency arrangements should be in place (see section 5.5).

The company should maintain procedures for communication of HSE information, consistent with its policy and with applicable legal requirements. The company should, while protecting confidential information, make available its HSE experience to employees, contractors, customers and other companies engaged in similar activities to facilitate improvements in industry HSE performance.

Diagram 8

HSEMS Development & Application Guidelines Y N customers regulators shareholders A media banks P M
HSEMS Development & Application Guidelines
Y
N
customers
regulators
shareholders
A
media
banks
P
M
ADNOC
neighbors
insurers
Management representatives
All employees
O
interest
emergency
groups
services
supreme
C
petroleum
contractors
council
suppliers

Procedures should be developed for receiving and responding to communications from employees, contractors, customers, government agencies and the public concerning HSE performance and management. Community awareness and consultation programs will be maintained where appropriate. Methods to measure the effectiveness of these communication procedures should be developed.

3.7. Documentation and its control:

3.7.1. HSEMS Documentation:

The Company will maintain controlled documentation to:

Record the HSE policy, objectives and plans

Record and communicate key roles and responsibilities

Describe HSEMS elements and their interactions

Cross-reference related documentation and describe links with other aspects of the overall management system

Record the results of HSE evaluation and risk management

Record relevant legal requirements

Record, where necessary, procedures and work instructions for key activities and tasks

Describe emergency plans and responsibilities, and the means of responding to incidents and potential emergency situations

Such documentation will cover:

ADNOC

Directorates and Group Companies

Individual functions and operations (e.g., facility design and construction, exploration, drilling, process operations, shipping, ports, etc.)

Contractors and partners

Health, Safety & Environment Management System

3.7.2. Document Control:

Procedures for controlling HSEMS documents will ensure that:

They can be identified with the appropriate company, unit or activity

They are periodically reviewed, revised as necessary and approved for adequacy by authorised personnel prior to issue

Current versions are available at those locations where they are needed

When obsolete, they are promptly removed from all points of issue and points of use

Documentation will be legible, (with dates of revision), readily identifiable, numbered (with a version number), maintained in an orderly manner and retained for a specified period. Policies and responsibilities will be established for the modification of documents, and their availability to employees, contractors, government agencies and the public. Documentation may be made available on electronic media but at least one printed copy shall be available and easily accessible at major facilities.

HSEMS Development & Application Guidelines

4. EVALUATION AND RISK MANAGEMENT:

.

Risk is present in all human endeavours. This section addresses the identification of HSE hazards and evaluation of HSE risks, for all activities, products and services, and development of measures to reduce these risks. The essential steps of Hazard Management are shown in diagram 10

Diagram 9

Policy &Strategic Objectives Review Organisation, Resources & Documentation Leadership and Commitments
Policy &Strategic
Objectives
Review
Organisation,
Resources &
Documentation
Leadership
and
Commitments
Evaluation & Risk
Management
Implementation
& Monitoring
Planning
Audit

4.1. Hazard Management:

Risk reduction is related to the reduction of hazards and is itself a TQM process as depicted below. Hazards must be identified and their possible effects evaluated. This allows the proper operations precautions or engineering design out steps to be taken to prevent hazards. However, when an incident does occur damage mitigation and recovery must be addressed through pre-planned procedures

Health, Safety & Environment Management System

THE ESSENTIAL STEPS OF HAZARD MANAGEMENT

Diagram 10

Recover

Evaluate Identify Prevent
Evaluate
Identify
Prevent

Mitigate

4.2. Identification of hazards and effects:

Procedures will be developed to identify systematically the hazards and effects which may affect or arise from operations and activities, and from the materials which are used or encountered in them. The scope of the identification should cover activities from project inception through to abandonment and restoration of sites. The concept being to “design out” HSE possible problems from day one.

Diagram 11

Identify hazards and effects

from day one. Diagram 11 Identify hazards and effects Establish screening criteria Establish hazards and effects
from day one. Diagram 11 Identify hazards and effects Establish screening criteria Establish hazards and effects

Establish screening criteria

Establish hazards and effects significant hazards and effects and statutory requirements Set detailed objectives and
Establish hazards and effects
significant hazards and effects and statutory requirements
Set detailed objectives and performance criteria
Identify and evaluate risk reduction measures
Identify applicable statutory requirements
Identify
applicable
statutory
requirements

Implement selected risk reduction measures

HSEMS Development & Application Guidelines

This includes consideration of:

Planning, construction and commissioning (i.e., asset acquisition, development and improvement activities)

Routine and non-routine operating conditions, including shut-down, maintenance and start-up

Incidents and potential emergency situations, including those arising from:

n

Product/material containment failures

n

Structural failure

n

Climatic, geophysical and other external natural events

n

Sabotage and breaches of security

n

Human factors including breakdowns in the HSEMS

Decommissioning, abandonment, dismantling, disposal and restoration

Potential hazards and effects associated with past activities

4.3.

Personnel at all organizational levels should be appropriately involved in the identification of hazards and effects.

Evaluation:

Procedures will be developed to evaluate (assess) risks and effects from identified hazards against screening criteria, taking account of probabilities of occurrence and severity of consequences for:

People

Environment

Assets

It should be noted that any evaluation technique provides results which themselves may be subject to a range of uncertainties. Therefore, formal risk evaluation techniques will be used in conjunction with the judgement of experienced personnel. Where appropriate, advice of regulators and surrounding community should also be considered.

Risk evaluation should:

Include effects of activities, products and services

Address effects and risks arising from both human and hardware factors

Solicit input from personnel directly involved with the risk area

Be conducted by qualified and competent personnel

Be conducted according to appropriate and documented methods

Be updated at specified intervals

Evaluation of health and safety risks and effects should include, where appropriate, consideration of:

Fire and explosion

Impacts and collisions

Drowning, asphyxiation and electrocution

Chronic and acute exposure to chemical, physical and biological agents

Ergonomic factors

8

Health, Safety & Environment Management System

Evaluation of acute and chronic environmental effects should include, where appropriate, consideration of:

Controlled and uncontrolled emissions of matter and energy to land, water and the atmosphere

Generation and disposal of solid and other wastes

Use of land, water, fuels and energy, and other natural resources

Noise, odour, dust, vibration

Effects on specific parts of the environment including ecosystems

Effects on archaeological and cultural sites and artefacts, natural and conservation areas and sensitive marine areas.

4.4. Recording of hazards and effects:

The company will maintain procedures to document those hazards and effects (chronic and acute) identified as significant in relation to health, safety and the environment, outlining the measures in place to reduce them (see sections 4.6) and identifying the relevant HSE - critical systems and procedures.

4.5. Strategy Requirements:

The company should maintain procedures to record statutory requirements and codes applicable to the HSE aspects of its operations, products and services and to ensure compliance with such requirements.

4.6. Objectives and Performance Criteria:

The company will maintain procedures to establish detailed HSE objectives and performance criteria at relevant levels.

Such objective and performance criteria should be developed in the light of policy, strategic HSE objectives, HSE risks, and operational and business needs. They should be quantified, wherever practicable, and identified with defined time scales while being realistic and achievable.

As a follow-up to risk evaluation (see section 4.3), the company should develop procedures to set performance criteria for HSE - critical activities and tasks, which stipulate in writing the acceptable standard for their performance. It should also, at specified intervals, review the continuing relevance and suitability of the criteria.

4.7. Risk Reduction Measures:

The company will have procedures to select, evaluate and implement measures to reduce risks and effects. Risk reduction measures include both those to prevent incidents (i.e., reducing the probability of occurrence) and to mitigate chronic and acute effects (i.e., reducing the consequences). Preventive measures such as ensuring asset integrity (see section 5.2) should be emphasised wherever practicable. Mitigation measures should include steps to prevent escalation of developing abnormal situations, lessen adverse HSE effects and ensure emergency response measures for recovery (see section 5.5). Effective risk reduction measures and follow-up require visible commitment of management and on-site supervision, as well as the understanding and ownership of operations personnel.

HSEMS Development & Application Guidelines

4.8.

Implementation:

In all cases consideration will be given to reducing risk to a level deemed ‘As Low As Reasonably Practicable’ (ALARP) reflecting among other factors, local conditions and circumstances, the balance of cost and benefits and the current state of scientific and technical knowledge.

Procedures are needed to:

Identify prevention and mitigation measures for particular activities, products and services which pose potential HSE risks

Re-appraise activities to ensure that the measures proposed do reduce risks, or enable relevant objectives to be met

Implement, document and communicate to key personnel interim and permanent risk reduction measures, and monitor their activities

Develop relevant measures such as plans for emergency response (section 5.5) to recover from incidents and mitigate their effects

Identify hazards arising from risk prevention and mitigation and recovery measures

Evaluate the tolerability of consequent risks and effects against the company screening criteria

Health, Safety & Environment Management System

5. PLANNING: . This section addresses the firm planning of work activities, including the risk
5.
PLANNING:
.
This section
addresses the firm
planning of work
activities, including
the risk reduction
measures (selected
through the
evaluation and risk
management
process). This
includes planning
for existing
operations,
managing change
and developing
emergency
response measures
Policy & Strategic
Objectives
Review
Organisation,
Resources &
Documentation
Leadership
and
Commitments
Evaluation & Risk
Management
Implementation
& Monitoring
Planning
Audit
Diagram 12
5.1.
General:

There must be within overall work programs, plans for achieving HSE objectives and performance criteria. These plans should include:

A clear description of the objectives

Designation of responsibility for setting and achieving objectives and performance criteria at each relevant function and level of the organization

The means by which they are to be achieved

Resource requirements

Time scales for implementation

Programs for motivating and encouraging personnel toward a suitable HSE culture

Mechanisms to provide feedback to personnel on HSE performance

Processes to recognize good personal and team HSE performance (e.g., safety award schemes)

Mechanism for evaluation and follow-up

HSEMS Development & Application Guidelines

5.2. Asset Integrity:

Procedures must be in place to ensure that HSE - critical facilities and equipment which the company designs, constructs, procures, operates, maintains and/or inspects are suitable for the required purpose and comply with defined criteria. Pre- procurement and pre-construction assessment of new facilities and equipment must include explicit assessment of appropriateness to meet HSE requirements and should emphasise design as the best preventive measures to reduce risk and adverse HSE effects.

Procedures and systems for ensuring asset integrity must address (among other factors) structural integrity, process containment, ignition control and systems for detection, shutdown, emergency response, life-saving, exposure reduction and environmental protection.

Deviation from approved design practices and standards are permitted only after review and approval by designated personnel and/or authorities (as appropriate). The rationale for the deviation should be documented.

5.3. Procedures and Work Instructions:

5.3.1. Developing Procedures:

Activities for which the absence of written procedures could result in infringement of HSE policy, breaches of legal requirements, performance criteria, Guidelines, or Codes of Practice should be identified. Documented procedures or standards should be prepared for such activities, defining how they are to be conducted - whether by the company's own employees, or by others acting on its behalf - to ensure technical integrity and to transfer knowledge effectively.

State written procedures simply, unambiguously and understandably, and indicate the persons responsible, methods to be used and, where appropriate, performance standards and criteria to be satisfied.

Procedures are required for procurement and contracted activities, to ensure that suppliers and those acting on the company's behalf comply with the company's policy requirements that relate to them.

5.3.2. Issuing Work Instructions:

Work instructions define the manner of conducting tasks at the work-site level, whether conducted by our own employees or by others acting on our behalf. In the case of HSE - critical tasks, which have the potential for adverse HSE consequences if incorrectly performed, these work instructions should be documented and communicated to relevant personnel.

5.4. Management of Change:

Procedures must be in place for planning and controlling changes, both permanent and temporary, in people, plant, processes and procedures, to avoid adverse HSE consequences.

9

Health, Safety & Environment Management System

The procedures must be suitable to address the HSE issues involved, according to the nature of the changes and their potential consequences, and should address:

Identification and documentation of the proposed change and its implementation

Responsibility for reviewing and recording the potential HSE hazards from the change or its implementation

Documentation of the agreed change and implementation procedure, including:

n

Measures to identify HSE hazards and to assess and reduce risks and effects

n

Communication and training requirements

n

Time limits, if any

n

Verification and monitoring requirements

n

Acceptance criteria and action to be taken if breached

Authority for approval to implement the proposed change

Procedures will include how new, amended or revised legal requirements will be assessed and incorporated in the HSEMS.

Separate plans should be established for the HSE management of new operations (relating, for example, to acquisitions, developments, divestments, products, services or processes), or of modified operations where the modification introduces significantly different HSE concerns. These separate plans should define at least:

HSE objectives to be attained

Mechanisms for their achievement

Resource requirements to achieve HSE objectives

Procedures for dealing with changes and modifications as projects proceed

Corrective mechanisms to be employed should the need arise, how they will be activated and how their adequacy can be measured

5.5. Contingency and Emergency Planning:

Procedures will be devised to identify foreseeable emergencies by systematic review and analysis. A record of such identified potential emergencies should be made, and updated at appropriate intervals in order to ensure effective response to them.

The company should develop, document and maintain plans for responding to these potential emergencies, and communicate such plans to:

Command and control personnel

Employees and contractors who may be affected

Emergency services

Local government units

Others likely to be impacted

The emergency plans should cover:

Organization, responsibilities, authorities and procedures for emergency response and disaster control, including the maintenance of internal and external communications

Systems and procedures for providing personnel refuge, evacuation, rescue and medical treatment

Systems and procedures for preventing, mitigating and monitoring environmental effects of emergency actions

10

HSEMS Development & Application Guidelines

Procedures for communicating with authorities, relatives and other relevant parties

Systems and procedures for mobilising company equipment, facilities and personnel

Arrangements and procedures for mobilising third party resources for emergency support

Arrangements for training response teams and for testing the emergency systems and procedures

To assess the effectiveness of response plans, procedures must be maintained to test emergency plans by scenario drills and other suitable means, at appropriate intervals, and to revise the response plans as necessary in the light of the experience gained.

Procedures must be in place for the periodic assessment of emergency equipment needs and the maintenance of such equipment in a ready state.

Health, Safety & Environment Management System

6.

IMPLEMENTATION:

This section addresses how activities are to be performed and monitored, and how corrective action is to be taken when necessary.

Diagram 13

Policy & Strategic Objectives Review Organisation, Resources & Documentation Leadership and Commitments
Policy & Strategic
Objectives
Review
Organisation,
Resources &
Documentation
Leadership
and
Commitments
Evaluation & Risk
Management
Implementation
& Monitoring
Planning
Audit

6.1. Activities and Tasks:

Activities and tasks should be conducted according to procedures and work instructions developed at the planning stage or earlier, in accordance with HSE policy:

At senior management level, the development of strategic objectives and high level planning activities are to be conducted with due regard for the HSE policy.

At supervisory and management level, written directions regarding activities (which typically involve many tasks) will normally take the form of plans and procedures. •• At the work-site level, written directions regarding tasks will normally be in the form of work instructions, issued in accordance with defined safe systems of work (e.g., permits to work, simultaneous operations procedures, lock-off and tag-out procedures, manuals of permitted operations, etc.).

HSEMS Development & Application Guidelines

Management is to ensure, and be responsible for, the conduct and verification of activities and tasks according to relevant procedures. This responsibility and commitment of management to the implementation of policies and plans includes, among other duties, ensuring that HSE objectives are met and that performance criteria and control limits are not breached. Management will ensure the continuing adequacy of the HSE performance of the company through monitoring and review activities (see section 6.2).

6.2. Monitoring:

Procedures are to be in place for monitoring relevant aspects of HSE performance

and for establishing and maintaining records of the results. For each relevant activity

or area, at least:

Identify and document the monitoring information to be obtained, and specify the accuracy required of results

Specify and document monitoring procedures, locations and frequencies of measurement

Establish, document and maintain measurement quality control procedures

Establish and document procedures for data handling and interpretation

Establish and document actions to be taken when results breach performance criteria (see sections 4.4, 4.5 and 6.4)

Assess and document the validity of affected data when monitoring systems are found to be malfunctioning and/or sampling procedures are not conducted properly

Safeguard measurement systems from unauthorized adjustments, damage or tampering

Procedures are required for both active and reactive monitoring. Active monitoring provides information in the absence of any incident, ill-health or damage to the receiving environment. It includes checking that HSEMS requirements (e.g., procedures) are being complied with, and that objectives and performance criteria are met. Reactive monitoring provides information on incidents (including near-miss incidents, ill-health or environmental damage) that has occurred and provides insights into the means of preventing similar incidents in the future. These insights become inputs to HSE planning.

6.3. Records:

A system of records should be maintained in order to demonstrate the extent of

compliance with HSE policy and its requirements, and to record the extent to which planned objectives and performance criteria have been met.

There must be procedures to ensure the integrity, accessibility and control of such records. This includes relevant contractor and procurement records, the results of audits and reviews (see section 7), training records (see section 3.4.2) and employee medical records.

The retention times of records should be established and recorded, and procedures must be maintained regarding their availability and confidentiality.

Health, Safety & Environment Management System

6.4. Non-compliance and Corrective Action:

Responsibility and authority will be defined for initiating investigation and corrective action in the event of non-compliance with specified requirements relating to the HSEMS, its operation or its results. Situations of non-compliance may be identified by the monitoring program, through communications from employees, contractors, customers, government agencies or the public, or from investigations of incidents (see section 6.5 and 6.6).

Procedures will be developed for investigation and corrective action. The procedure should:

Notify the relevant parties

Determine the causation sequence and likely root cause

Establish a plan of action or an improvement plan

Initiate preventive actions commensurate with the nature of the non-compliance

Apply controls to ensure that any preventive actions taken are effective

Revise procedures to incorporate actions to prevent recurrence, communicate changes to relevant personnel and implement them

Determine the causes

relevant personnel and implement them Determine the causes Plan action Initiate preventive actions Apply controls

Plan action

and implement them Determine the causes Plan action Initiate preventive actions Apply controls Diagram 14 Revise

Initiate preventive actions

Determine the causes Plan action Initiate preventive actions Apply controls Diagram 14 Revise procedures and communicate

Apply controls

Plan action Initiate preventive actions Apply controls Diagram 14 Revise procedures and communicate changes 6.5.

Diagram 14

Revise procedures and communicate changes

6.5. Incident Reporting:

Procedures will be maintained for the internal recording and reporting of incidents which affected, or could have affected, HSE performance, so that the relevant lessons can be learned and appropriate actions taken (see section 6.6).

There should be a defined mechanism for the reporting of incidents to government agencies to the extent required by law or to such greater extent as the policy of the company on external communication may require. Likewise, mechanisms should be maintained for communication to employees, partners, the media and public.

HSEMS Development & Application Guidelines

6.6. Incident Follow-up:

Both the immediate circumstances of the incident and the underlying HSEMS weaknesses which caused it should be identified to enable judgements to be made by those responsible for authorizing the necessary follow-up action.

The mechanism and responsibilities for follow-up of incidents must be clearly defined. The mechanism should be broadly similar to the procedures for implementing corrective action in cases of non-compliance with the HSEMS (see section 6.4).

The defined responsibilities for follow-up of an incident should be appropriate to the severity of its real or potential consequences.

Health, Safety & Environment Management System

7. AUDIT AND REVIEW:

.

This section addresses the periodic assessment of system performance, effectiveness and inherent suitability

Diagram 15

Policy & Strategic Objectives Organisation, Resources & Documentation Review Leadership and Commitments
Policy & Strategic
Objectives
Organisation,
Resources &
Documentation
Review
Leadership
and
Commitments
Evaluation & Risk
Management
Implementation
& Monitoring
Planning
Audit

7.1.

Audit:

Audits will be performed as a normal part of business control in order to determine:

Whether or not HSEMS Elements and activities conform to planned arrangements, and are implemented effectively

The effective functioning of the HSEMS in fulfilling HSE Policy, Objectives, Guidelines and Performance criteria

Compliance with relevant legal requirements

Identification of areas for improvement, leading to progressively better HSE management (HSEMS Gap Analysis)

HSEMS Development & Application Guidelines

For this purpose, the audit plan will include at least the following elements:

Specific activities and areas to be audited. Audits should cover the operation of the HSEMS and the extent of its integration into the activities, and should specifically address the following elements of the HSEMS model:

n

Organization, resources and documentation

n

Evaluation and risk management

n

Planning

n

Implementation and monitoring

Frequency of auditing specific activities/areas. Audits should be scheduled on the basis of the contribution or potential contribution of the activity concerned to HSE performance, and the results of previous audits

Responsibilities for auditing specific activities/areas

Audit protocols and procedures will be established and maintained. At a minimum, the following points should be covered:

Allocation of resources to the auditing process

Personnel requirements, and specifically that the audit team has

n

Adequate independence from activities audited to enable objective and impartial judgement

n

The necessary expertise in relevant disciplines

n

Support, if necessary, from a wider range of specialists

Methodologies for conducting and documenting the audits, which may involve the use of questionnaires, checklists, interviews, measurements and direct observations, depending on the nature of the function being audited

Procedures for reporting audit findings in a controlled manner to those responsible for the activity/area audited, who should take timely action on reported corrective actions and opportunities for improvement (see section 6.6). Reporting should address:

n