White Nile (5B) Petroleum Operating Company Ltd

Contractor HSE

Management

Guide

WNPOC/LII/HSE/029
 Main Contents

Page No

Document – New /Amendment Request (DNAR) i

Document Change History (DCH) ii
Distribution iii

1.0 Purpose 1
2.0 Scope 1
3.0 References 2
4.0 Abbreviations 2
5.0 Definitions 3
6.0 Contacting Strategy 4
6.1 Category 1 – Major Contracts 4
6.2 Category 2 – Minor Contracts 4
6.3 Category 3 – Service Contracts 4
7.0 Contract Planning 5
8.0 Pre Qualification of Contractors 5
8.1 General guidelines for preparing HSE questionnaire 6
9.0 Invitation to Bid 6
10.0 Selection of Contractors 7
11.0 Pre – Mobilisation 8
12.0 Mobilisation 8
13.0 Execution 8
14.0 Demobilisation 9
15.0 Contract Close Out and Final Evaluation 9
Appendix 1 – Summary of Key Targets 10
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Document – New / DOCUMENT NUMBER:
Amendment Request (DNAR) WNPOC/LII/HSE/029

DNAR No. WNPOC/DNAR/HSE/LII/0029 DNAR Date 31.03.06

Status of Document:

New Revised Cancellation

Reasons of Changes:

New procedure establishment

Details of Changes

PART WAS

Page No Para/Clause Description

None

CHANGE TO

Page No Para/Clause Description

New document

Initial Date
QA Check

Prepared by Reviewed by Approved by

Section Head, HSE HSE Manager V.PRESIDENT

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Document – Change history DOCUMENT NUMBER:
(DCH) WNPOC/LII/HSE/029

Details refer to Document New /

Effective /
Revision Status of Change Amendment Request (DNAR)
Revision
No (New / Revised / Cancellation) Prepared Reviewed Approved by
Date
by by
0 New procedure establishment 31/03/06 Section HSE V. President
Head, Mgr.
HSE

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DOCUMENT NUMBER:
Distribution
WNPOC/LII/HSE/029

Copy No Position Title

1 Chairman, PETRONAS Sudan Operation

2 President, WNPOC
3 Vice President, WNPOC

4 GM, Exploration & Development

5 GM, Finance & Planning
6 GM, Human Resource & Admin
7 GM, Production
8 Sr. Manager, Exploration
9 Sr. Manager, Operations
10 Sr. Manager, Surface Development
11 Manager, HSE

12 Manager, Corporate Affair & Community Development

13 Manager, Security
14 Superintendent, Base Camp
15 Company Man, Drilling Rig
16 Company Man, Service Rig

17 HSE Supervisor, Block 5A

18 HSE Supervisor, Block 5B

19 HSE Supervisor, Block 8

20 HSE Department

21 Exploration Department
22 Drilling Department

23 Finance & Account Department

24 Human Resource & Admin Department

25 Contract, Procurement & Logistic Department

26

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DOCUMENT NUMBER:
Preliminary
WNPOC/LII/HSE/029

1.0 Purpose

The objectives of this procedure are to:

• Ensure that Contractors who work for WNPOC achieve HSE standards that are equal to
the standards set by WNPOC for their own operations;
• Ensure that both Contractors and WNPOC Contract Holders are aware of each other’s
obligations and contract terms with regards to HSE by:
Defining the minimum HSE objectives to be met at each stage of the contract;
Jointly developing a strategy for proactive management of HSE;
Describing a planned approach to the Management of Contractor HSE that will
ensure a continuing improvement in HSE performance in all contractor
activities;
• Describe the HSE roles and responsibilities of the parties involved; and
• Highlight the benefits of effective proactive HSE approaches in the various stages of a
contract i.e.
Contract Planning
Pre Qualification of the Contractors
Invitation to Bid
Selection of Contractors
Pre Mobilisation of Contractor
Mobilisation of Contractors
Execution of the Contract
Demobilisation at the end of the Contract
Close out of Contract and Final evaluation of Contractor HSE performance

2.0 Scope

The guidelines cover HSE issues for all types and forms of contract services including but
not limited to the following areas:
• Drilling
• Design and engineering
• Well services
• Fabrication
• Construction
• NDT / inspection
• Commissioning services
• Seismic surveys
• Land transportation
• Air transportation (fixed wing and helicopter)
• Chemical treatment
• Specialist services
• Maintenance
• Catering
• Cleaning services
• Grass cutting

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DOCUMENT NUMBER:
Preliminary
WNPOC/LII/HSE/029

3.0 References

• WNPOC HSEMS –WNPOC/HSE/LI/001

• Oil & Gas Producers Association Report No. 6.64/291 of September 1999 – “HSE
Management – guidelines for working together in a contract environment”

4.0 Abbreviations

HSE Health, Safety and Environment

HSEMS Health, Safety and Environment Management System
LWC Lost Workday Case
MTC Medical Treatment Case
PPE Personal Protective Equipment
RWC Restricted Workday Case
TRC Total Reportable Case
TRCF Total Reportable Case Frequency
WNPOC White Nile (5B) Petroleum Operating Co. Ltd

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5.0 Definitions
Contractor - Major
Contractor - Minor
Contracts Departments
Contract Holder
Lost Workday Case
Medical Treatment Case
Restricted Workday Case
Total Recordable Case
Frequency
C O N T R A C T O R HSE
MANAGEMENT GUIDE
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3
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Definitions
WNPOC/LII/HSE/029
Contractors that are employed by WNPOC for a fixed scope
of work with a schedule for the different activities such as:
seismic studies, exploration, drilling, construction, facility
operations and maintenance. These are contractors who
operate as a registered company with their own organisation
and equipment to carry out the required work.
Contractors who basically are manpower supply firms used
mainly for grass cutting and cleaning work. The tools and
material use are generally of a consumable nature.
The department in WNPOC through which the line engages
contractors and who are responsible to ensure that all
contract agreements have clauses that protect the interests
of WNPOC.
WNPOC manager or executive who requires the contract
work to be carried out and who is also responsible to oversee
the contract until completion.
A work related injury or illness that renders the injured
person unable to perform his normal duties, or any day
immediately following the day of the accident.
A work related injury or illness including OH related that
involves neither lost nor restricted workdays but which
requires the injured to be treated and further undergo
continuous treatment by or under the specific orders of a
physician.
A work related injury or illness which requires the
person to be treated by doctor and was declared fit to
return to do part of his/her normal work on restricted or
light duties on the day immediately following the
accident. Restricted activity/light duties must be within
the injured person’s normal scope of work.
The frequency per million hours of the occurrence of
incidents (The total of fatalities + disability cases -permanent
& partial +LWC + RWC +MTC) during the available working
hours.
TRCF = Total no. of Incidents x 1,000,000
Available Working Hours
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Contracting Strategy
WNPOC/LII/HSE/029

6.0 Contracting Strategy

The contracting strategy to be employed for effective HSE management shall be

dependent on the nature of work to be carried out. The Contracts department shall liase
with the user department on the type of contract to be utilised before engaging the
contractor.
The contracts used in WNPOC can be classified broadly into 3 main categories:

6.1. Category 1- Major Contracts

This category refers to major contracts that are totally out sourced on a lump sum basis to
contractors who shall provide competent project management, supervisory, work and HSE
personnel to manage the scope of work with little supervision from WNPOC. The duration of
such contracts normally extend for periods exceeding 1 month. Major contractors providing
services to WNPOC must be able to demonstrate that they already have an HSEMS. Their
HSEMS need not be identical to that of WNPOC but shall exhibit the same degree of
application and assurance of safe operations.

6.2. Category 2 – Minor Contracts

This category refers to contracts that last for a fixed scope of work for short periods –
normally repair type contracts. Contractors who undertake this type of contract shall
provide skilled supervision and workforce to perform the work required. They shall also
report to WNPOC line department management whilst undertaking the job. The contractors
employed under this category may not have a formalized HSE management system but
shall have the basic understanding of managing HSE in the work they undertake for
WNPOC and also the legal requirements that they have to adhere to.

6.3. Category 3- Service Contracts

This category refers to Service contracts that normally have no defined scope – only a
general description of the services, skills, tools, equipment etc. that the contractor shall
provide. However, it is essential that the contractor shall be able to manage HSE on a job-
by-job basis e.g. manage the risks, adhere to local HSE legislation correctly, respond
effectively to emergency situations etc. All these elements shall be demonstrated prior to
contract award.

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HSE Requirements in DOCUMENT NUMBER:
Contract Phases WNPOC/LII/HSE/029

7.0 Contract Planning

• When the scope of the contract is being decided, the prospective contract holder shall
prepare a detail scope of work together with impact on HSE before, during and after the
execution phase of the contract.
• The main consideration before the contract is executed is to determine the
environmental impact of the contract. If it is a major project, a requirement to carry out
an Environmental Impact Assessment maybe imposed by the authorities.
• The potential Safety and Health risks during project execution shall be identified and the
precautions to be taken shall be determined.
• How the waste generated from the contract is to be disposed off and by who shall also
be determined during the planning stage.
• The relevant WNPOC HSE procedures that shall be applicable for the contract shall be
identified at this stage.
• The HSE department shall be consulted to get the relevant HSE information.
• The Contracts department shall ensure all the relevant HSE requirements have been
prepared before the pre-qualification exercise is carried out.
• The contracts department shall prepare a Pre-Qualification questionnaire that includes
the WNPOC HSE requirements that have to be adhered to during the contract.

8.0 Pre-Qualification of Contractors

• The aim of the pre-qualification exercise is to ensure that only contractors meeting the
necessary HSE criteria are short-listed to participate in the subsequent bidding for the
work.
• The pre-qualification questionnaire to be issued to Category 1 Contractors shall require
them to:
Provide an overview of their HSE Management System;
Highlight aspect of the HSE management system that demonstrate overall
commitment to a safe system of work;
Adhere to the legislative requirements in Sudan;
Demonstrate how the policy relating to the safety well being of direct employees,
as well as those of sub-contractors and third-parties personnel, are
implemented;
Provide their relevant HSE statistical record over the preceding three (3) years
period; and
Provide their relevant HSE training programme over the preceding three (3)
years period.
• The Category 2 contractor pre-qualification questionnaire shall require them to provide
information on:
The HSE competency of the supervisors and workforce;
The equipment that they are going to use for the job to ensure that their usage
does not jeopardise the safety of the facilities and the personnel;
The type of PPE that they need to use for their job;
The understanding of the HSE risks associated with their job scope and how they
intend to proactively manage them; and
The understanding of the HSE legislative requirements in Sudan
• There is no requirement to have a questionnaire for Category 3 contractors but they
have to provide information on personnel, equipment and PPE to be used for the job
concerned in addition to their experience, if any.

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HSE Requirements in DOCUMENT NUMBER:
Contract Phases WNPOC/LII/HSE/029

8.1. General guidelines for preparing HSE questionnaire

• The contract holder and HSE department shall jointly prepare the HSE portion of the
pre-qualification questionnaire;
• The questionnaire shall cover the information required to assess the extent to which
HSE and its management are organised by the contractor;
• The contractor shall be advised to cover all (including support) activities that are
relevant to the scope of work and not just those conducted on WNPOC sites;
• Contractor line management shall complete the questionnaire;
• Emphasis shall be placed on the need for complete answers substantiated by
supporting documentation as far as is practicable. Responses and any supporting
documentation shall relate specifically to the policy and organisational arrangements
of the company that would be the signatory of any contract;
• Submissions shall be assessed by a scoring mechanism that can be used in the
evaluation process;
• The contract holder, contracts department and HSE department shall hold a joint
meeting with all contractors who have been invited for the pre-qualification exercise
to explain the details of the questionnaire and to clarify any doubts. This is to
ensure that all contractors understand the requirements for WNPOC;and
• The contractors shall be encouraged to identify where they exceed WNPOC
requirements and this excellence shall be recognised when the questionnaire is
evaluated

9.0 Invitation to Bid

• The tender documents that are issued to pre-qualified contractors as part of the
Invitation to Bid shall include the following as a minimum:
The hazards and risks associated with the scope of work;
The HSE regulations and the WNPOC procedures;
The WNPOC / Contractor responsibilities and interfaces;
WNPOC supervision strategy;
Contractor Competency requirements;
WNPOC Safety Passport requirements and associated HSE training;
The type of PPE to be used at WNPOC worksites;
WNPOC HSE Reporting requirements;
HSE Performance measurement parameters and criteria;
WNPOC HSE Plan;
Requirement for category 1 contractors to have a Contract HSE Plan in line with the
WNPOC HSE plan.
WNPOC waste disposal rules on completion of the contract.

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HSE Requirements in DOCUMENT NUMBER:
Contract Phases WNPOC/LII/HSE/029

10.0 Selection of Contractors

Contractor selection shall based on the submission of the following documentation with the
bid and subsequent technical clarification meetings between the Contracts Department,
contract holder, HSE department and short listed contractors:

Category 1
Contractor HSE Management System;
Contract HSE Plan that consists of:
o Contractor’s organisation to manage the project;
o Capability of the management, supervisory staff and workforce to manage the
project effectively and efficiently with no adverse impact on HSE;
o List of equipment and tools to be used on the contract;
o List of PPE supplied for the staff and list of specialised PPE required for the job;
o A hazard register of the hazards and risks expected on the job and an indication
of how they are to be managed;
o How emergency situations are managed by the organisation and incident reports
generated;
o Communication systems that are to be used during the contract by the
contractor and how communication is carried out with WNPOC contract holder
and HSE personnel;
o Schedule of inspections and safety meetings to be conducted; and
o Environmental protection and Waste disposal programme.

Category 2
Contractor’s organisation to manage the project;
Capability of the management, supervisory staff and workforce to manage the project
effectively and efficiently with no adverse impact on HSE;
List of equipment and tools to be used on the contract;
List of PPE supplied for the staff and list of specialised PPE required for the job;
A hazard register of the hazards and risks expected on the job and an indication of how
they are to be managed; and
Communication between WNPOC and contractor.

Category 3
List of the supervisory staff and workforce and the HSE training they have undergone;
List of equipment and tools to be used on the contract;
List of PPE supplied for the staff; and
Communication between WNPOC and contractor.

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11.0 Pre Mobilisation

Once the contractor has been selected and the award confirmed, a kick-off meeting shall be
held to:
Confirm the successful contractor’s understanding of WNPOC’s HSE requirements for
the contract;
Approve the Contract HSE plan for Category 1 contracts;
Ensure that Category 2 & 3 contractors familiar with the WNPOC HSE plan and conform
to the requirements in the plan;
Ensure that the contract holder and contractor are clear on the Project HSE
performance objectives and targets;
Confirm the contractor organisation and capabilities; and
Agree on the communication process between WNPOC staff and contractor personnel;
Ensure contractors understand the requirements of WNPOC for incident reporting and
managing emergencies.

12.0 Mobilisation

When the contractor is mobilised to site a joint – contract holder, HSE department and the
contractor – inspection cum audit shall be carried out to:
Finalise the Contractor HSE Plan;
Ensure the HSE induction and training of Contractor personnel is carried out;
Agree on the milestones;
Inspect contractor tools, equipment, procedures, PPE & personnel resumes; and
Communicate the HSE rules and requirements clearly to all WNPOC staff and contractor
personnel.

13.0 Execution

Throughout the project execution phase, the Contract Holder shall:

Monitor the Contractor’s tool box and HSE meetings;
Monitor the Contractor’s implementation and participation in emergency exercises and
drills;
Ensure Contractor’s compliance in incident, near miss, unsafe acts and conditions
reporting, investigation and follow up;
Ensure reporting of employees health status;
Ensure and monitor Contractor’s compliance to HSE inspections and audits program;
Verify and monitor replacement of personnel;
Verify and monitor provisions to control entrance, presence and exit of employees,
employers, equipment and materials;
Conduct periodic inspection of employee qualification and skill;
Verify and monitor necessity of refresher induction courses;
Monitor training of Contractor’s personnel in job related activities and procedures;
Ensure the availability of HSE work rules, procedures and other relevant HSE
information;
Advise WNPOC management on the contractor’ s HSE performance during HSE
committee meetings; and
Liase with the HSE personnel on any deviations with the Contract HSE plan.

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14.0 Demobilisation

During demobilisation, the contract holder and HSE personnel at site shall ensure that:
The site has been cleaned up and restored for normal operations; and
The waste generated during the contract has been collected and disposed as per
WNPOC requirements.

15.0 Contract Close out and Final Evaluation

The close- out report should address the following:

Assessment of the effectiveness of the contractor’s HSE Plan;
Identification of areas unanticipated in the plan, how they were overcome and the
future approach to be taken to handle these issues;
Highlighting the successful positive aspects that should be used for the future;
Concise analysis of Contractor’s HSE performance for mutual improvement; and
Information on the Contractor to be added as a reference for WNPOC bid list to identify
actions needed for future tenders.

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Appendix -Summary of KEY DOCUMENT NUMBER:
Targets WNPOC/LII/HSE/029

Phase Target WNPOC Contractor

Planning and Major hazards identified Qualitative HSE WNPOC/contractor

Pre- with assurance that they assessment of the dialogue
qualification can be managed work HSE Respond to pre-
Confirmation of major sensitivities qualification
hazards with outline Hazard identification Discuss HSE
targets criteria and / quantification responsibilities and
methods for control Health risk staffing
Confirmation that pre- assessment
qualified contractors can Environmental
achieve targets impact assessment
Review of previous HSE HSE policies and
record of contractors approach
WNPOC/contractor
dialogue
Invitation to Contractor preparation of Respond to Prepare contract HSE
Bid HSE Plan in accordance clarification requests Plan
with WNPOC criteria Meetings Clarification requests
Site visits Meetings
Site visits
Selection and Confirmation that Evaluate bids Respond to
Pre - contractor HSE Plan will Clarifications clarifications
Mobilisation meet WNPOC criteria Meetings Meetings
Agreement with contractor Finalise contractor's
on methods to be used, HSE Plan
performance measurement
criteria and audit / review
strategy
Mobilisation Confirmation that Kick-off meetings Kick-off meeting
contractor’s HSE plan has Confirm contractor's Confirm contractor's
achieved pre-execution HSE Plan activities HSE Plan activities
targets Supervision Supervision
Pre-execution audit Induction
Training
Meetings
Inspection
Pre-execution status
achievement
Execution Assurance and verification Supervision Supervision
that contractor systems HSE meetings Inspection
are performing in line with Promotion of HSE Induction
contractor's HSE Plan issues Training/Drills
Milestone reviews HSE performance HSE meetings
review HSE performance
Investigation of review
incidents Investigation of
Auditing incidents
Auditing
Correction of defects
Demobilisation Management of final Supervision Supervision
activities
Close-out Analysis and feedback of Close-out report Close-out report and
WNPOC and Contractor Feedback for future feedback (to own
HSE performance contract HSE management)
Plans/clauses

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