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CALTEX

History

In 1936, Caltex (Philippines) Inc. was formed. We moved to a new office, and
opened depots and service stations nationwide, making us the country’s
number one oil company.

Our first convenience store opened in 1995 with a Star Mart outlet. In 2009, 7-
Eleven convenience stores began replacing Star Mart in Caltex service stations,
so customers can also shop for essentials during their pit stops.

The first oil refinery was built in 1954. Today, we operate a world-class import
facility in Batangas with a storage capacity of roughly 2.7 million barrels.

Caltex with Techron® came into the market in 2006. It contains powerful
detergents to clean the engine from the inside, to give your car more power,
better fuel economy and less emission
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A. PRODUCT DESIGN
 Petrol

 Regular Unleaded ((91 Research Octane Number) unleaded petrol)

 Bio E10 Unleaded ((94 Research Octane Number) unleaded petrol
blended with up to 10 percent ethanol)
 Bio E-Flex E85 ((103~107 Research Octane Number) unleaded petrol
blended with up to 85 percent ethanol) | Manufacturing ceased June 1st
2019 and is expected to be decommissioned at E-Flex sites by July 1st
2019. (E85 now only available at United Petroleum.)
 Vortex 95 ((95 Research Octane Number) premium unleaded petrol)
 Vortex 98 ((98 Research Octane Number) premium unleaded petrol)
 Opal Unleaded Petrol
 Most sites stock all of these products, however Bio E10 unleaded is the
least common and regular unleaded the most common.

 Diesel

 New Generation Diesel (up to 3 percent biodiesel)

 Vortex Diesel (premium diesel)
 Extra Low Sulphur Diesel - Regular Diesel
 Bio B5 Diesel
 Bio B20 Diesel
 Each site only sells at least one of these 3 products.

Other fuel types

 Caltex LPG (Autogas) is available at selected sites.[7]

 Caltex CNG (compressed natural gas)
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B. QUALITY MANAGEMENT

The Management System Process

 External Review
To ensure the OEMS is in line with broader company and industry standards,
periodic reviews of the OEMS and its processes are conducted through a range
of independent internal audits and external benchmarking reviews. Findings
from these reviews form inputs to the Management System Process review.
 Monitoring and Governance
A systematic approach to continuous improvement is needed to drive progress
toward operational excellence. Monitoring of performance against key objectives
is essential to identify those aspects of OEMS most in need of improvement.
Governance is the process used to ensure the results of monitoring are
analysed and reviewed, and that appropriate actions are taken to facilitate
improvement. The figure below summarises the OEMS approach to Monitoring
and Governance.
 OE Process Governance
Each OE Process has a minimum of one Sponsor and Advisor who are
accountable for the accurate and timely measuring, reporting and verification of
the health and ‘practical effectiveness’ of the process at appropriate intervals.
The review interval is dependent on the material risk, maturity, history and
dynamic nature of each process. OE Process Sponsors and Advisors are also
accountable for conducting the MSP, and the development and implementation
of any improvements within their respective OE processes.
 Routine Monitoring
The vast majority of performance monitoring is performed at a business unit
level (e.g. refinery, terminals, depots, retail outlets) and is focused on individual
controls against OE risks, such as routine maintenance checks, observations of
tasks, field audits or emergency exercises.
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 Maintaining Asset Integrity

To ensure:
Facilities are operated and maintained to ensure asset integrity and minimise
safety, health, security and environmental risks.

Objectives:
All locations or business areas within scope that have assets under their
control have a system in place for managing asset integrity.
There is an actively monitored process for managing inspection, monitoring
and testing of OE critical assets.
Reactive maintenance is appropriately identified, prioritised and completed in
a timely manner.
Regular analysis and trending of preventative and reactive maintenance is
conducted.
Maintenance records are managed and regular reviews of performance are
conducted to identify opportunities for improvement.

 Third Party Goods and Services Provision

To ensure:
All third parties providing services under Caltex’s operational control meet
OEMS requirements through the application of an approved selection,
engagement, monitoring and performance review process.
An approved process is in place to manage purchasing and receipt of plant,
equipment and other goods.

Objectives:
A process exists to detail third party service provider scope of work and
performance requirements.
A process exists to evaluate and select third party goods and services using
criteria that includes an assessment of capability to perform work in a manner
that minimises risk to safety, health, security, environment and reliability.
Third party service providers, including their subcontractors are
appropriately screened, trained and qualified to perform work.
All contractors are assigned a contract owner, a health, safety and
environment (HSE) owner, a risk category, and maintained on a contractor
master list.
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A formal contractor HSE management program is in place for all medium and
high risk work.
All other third parties working on Caltex facilities are subject to the site on-
boarding induction, relevant business area safe practices and HSE engagement
and monitoring requirements.

 Food Safety
To ensure:
Food that is sold through Caltex facilities is safe to consume. Through an
established food safety management system, safety risks to consumers are as
far as is practicabe, eliminated or substantially minimised.

Objective:
Process control requirements are satisfied at each step of the food handling
process.
Food handlers and their supervisors have the necessary skills and knowledge.
Requirements for the health and hygiene of food handlers, and the cleaning,
sanitising, and maintenance of premises and equipment are complied with.
Licencing and regulatory requirements are understood.

 Environmental Requirements for Property Transfer

To ensure:
Due diligence is applied to the evaluation of risk and management of site
contamination during property transfer.

Objectives:
The approved due diligence process during property transfer is clearly
understood by all stakeholders.
There is an appropriate evaluation of the risk of site contamination during the
property transfer process.
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C. PROCESS DESIGN

Operational Excellence Processes

At the core of the Operational Excellence Management System are 23 OE
Processes that set the policy and framework for managing OE.
This booklet provides an overview of each of the OE Processes, along with
a summary of the purpose and objectives.

Each process and sub-process under the OEMS contains five key components:
1. Purpose, Scope and Objectives - defines the process boundaries and
interfaces with other processes, along with pur-pose and expected results.
2. Procedures - describes the steps necessary to be performed and how they
are to be accomplished.
3. Resources, Roles and Responsibilities - defines who is responsible for
doing the work, and for administering and maintaining the process.
4. Measurement and Verification - describes the measures and methods to be
deployed to confirm that the objectives and desired results are being achieved,
and that the critical components of the process are adequately designed and are
being executed effectively.
5. Continual Improvement - utilises measurement and verification results and
other input to evaluate how to improve the process and ensures actions are
taken to improve process design and effectiveness.
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D. LOCATION DECISIONS

 Environmental Stewardship
To ensure:
A process is in place to describe the overarching environmental protection
and management practices to be implemented by all functional areas of the
Caltex business.

Objectives:
Environmental aspects, impacts and legislative requirements associated with
our business are identified and managed using a risk based and systematic
approach.
Adequate monitoring, measurement and reporting of environmental
performance is undertaken to inform business decisions and drive continual
improvement.
Systems and training, to protect the environment, reduce our environmental
impact and ensure compliance with legislation are implemented and
maintained.
Products are manufactured, marketed and distributed in a manner that will
not cause harm to the environment.

 Product Stewardship
To ensure:
Fit for purpose petroleum products that meet specifications are supplied
without incident, taking into account the entire product life cycle

Objective:
Identify, assess and manage potential safety, health, environmental and
product integrity risks that may be related to Caltex products throughout their
product lifecycle (PLC). The PLC runs from conception and development
through acquisition, manufacture, storage, transportation, distribution, use,
recycling and final disposition (reuse, recycling, disposal).
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 Security Management
To ensure:
The workforce, visitors and customers at Caltex operated sites are protected
from security related threats.
Access to sites, facilities, vehicles and/or vessels under the management and
control of Caltex is managed in accordance with all prescribed internal and
external (e.g. legislative) requirements.
Caltex property (including intellectual property and data) is protected from
harm or loss.

Objectives:
Potential security threats to Caltex facilities and activities are mitigated
through the development, implementation and maintenance of risk-based
security control measures.
Security management plans are developed and implemented in accordance
with relevant legislative and Caltex requirements.
The workforce is actively engaged in awareness and vigilance about security.
Compliance with relevant Maritime, Aviation and Major Hazard facility
legislation.
Continual improvement in the management of security across Caltex.

 Safe Work Systems

To ensure:
The workforce and plant are protected from the hazards associated with work
at Caltex.
Safe work systems and behaviours, when applied effectively, provide
practicable measures to limit the risk of injuries and incidents occurring.

Objectives:
Safe work practices and behaviours are clearly identified and practiced by the
entire workforce.
A work instruction or job safety analysis is completed as part of the work
planning process and appropriate controls are put in place to protect
individuals.
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A work permit is issued, or a work clearance prepared where appropriate,

prior to work commencing.
Plant and equipment are effectively isolated from all sources of energy and
hazardous materials prior to any work being carried out.
Hazards associated with confined spaces, excavation, working at height, high
risk, and electrical work are assessed, and appropriate control measures are
implemented to reduce risks to as far as reasonably practicable.
Driver safety risks are mitigated by applying appropriate driver safety
management processes to vehicle specifications and purchasing, and driver
training and competency.
Manual handling and ergonomic factors are considered during design of plant
and workplaces, and residual manual handling risks are identified and
appropriate controls implemented to mitigate hazards.
All relevant elements of Caltex’s comprehensive safety program are clearly

E. LAYOUT DECISIONS

Facility Design & Construction Integrity

To ensure:
Safety, health, security, environment and reliability requirements are
incorporated into the design and construction of new or modified facilities.
Construction and operational hazards are identified and assessed, including
environmental aspects and human factors.
Associated risks are managed by utilising best practice standards, systems
and procedures throughout the project lifecycle.

Objectives:
Risks are identified, assessed and appropriately controlled throughout the
process of design, fabrication, construction, installation and commissioning of
facilities and equipment.
Regulatory requirements and community expectations are identified and
addressed in the early stages of projects for new or modified facilities.
Caltex design standards and practices:
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Are reviewed regularly for currency with legislation and industry standards.
- Are used for all facility design and construction projects.

Pre-Start up Safety Review (PSSR)

To ensure:
All elements required for safe, healthy, secure and environmentally sound
operations have been addressed prior to starting up new or altered facilities, or
returning equipment to service after it has previously been decommissioned,
has been idle or out of service.

Objectives:
Pre-Startup Safety Reviews are conducted for all changes significant enough
to require changes to process safety information.
Pre-Startup Safety Reviews are conducted prior to commencement of
commissioning activities.
Operational readiness checks are completed for return to service of all plant
and equipment that has been taken out of service for significant maintenance
or repair work, has been previously decommissioned or has been idle for more
than one month.

To ensure:
A standardised and systematic approach to the identification of hazards,
assessment of risk and effective adoption and maintenance of control measures.
Risk management to eliminate or minimise the adverse effect of accidental
losses on the organisation by providing a basis for the judgement of the
tolerability of a risk present in the workplace.

Objectives:
The organisational intent for management of risks is understood.
Application of a standard risk management approach across controlled
facilities and activities.
Structured hazard identification and risk assessments are performed for all
new projects, facility, process and organisational modifications, and ongoing
operations.
Risk management plans are established to ensure risks are reduced so far as
is reasonably practicable for health and safety risks, and to Target Risk
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otherwise. These plans are regularly updated and implemented in a timely and
consistent manner, and all identified mandatory risk-reduction action items
achieve closure within defined timeframes.

Adoption of controls is consistently supported by systems for ensuring

continued maintenance and reliability of those controls.
The hazard identification, risk assessment and evaluation of control
measures is maintained and periodically reviewed and re-validated.
Continual improvement in both the management of risks and risk profile is
demonstrable.
Consultation with workers takes place through the risk assessment process
and workers are informed of the hazards, risks and controls which may impact
them.
Regulatory obligations with respect to Risk Management are met.

F. HUMAN RESOURCE

OE Training & Competency

To ensure:
Individuals have the skills and knowledge required to perform their work in
an incident-free manner and in compliance with relevant legislation and
company policies and procedures.

Objectives:
The competencies (skills, knowledge and behaviours) required for key roles
are identified.
Individuals receive appropriate training to perform their roles and/or are
assessed as competent to perform key roles.
Training and assessment activities required to safely perform a key role are
documented.
The quality and effectiveness of training and assessment of individuals is
monitored.

OEMS Process 11: Management of Change

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To ensure:
A robust and systematic approach to the management of changes which have
the capacity to affect safety, health, security, the environment or reliability
within Caltex facilities and business functions.

Objectives:
A standard Management of Change (MOC) process is applied across all Caltex
facilities and activities, whenever a change as defined by this process is to be
made.
All applied MOC processes incorporate adequate impact analysis, hazard
identification and risk assessment carried out by competent individuals.
Approvals for changes which have the capacity to introduce hazards or
increase OE risks are made at the appropriate level.
Individuals impacted by a change are provided with adequate information,
instruction and training pertaining to the change.
Changes are appropriately documented to ensure ongoing currency of Process
Safety Information (PSI).
Changes are reviewed to determine whether the intended outcomes have been
realised in practice

 Incident & Injury Management

To ensure:
Incidents or injuries are reported promptly, investigated thoroughly and
action is taken to prevent recurrence.
In the case of an injury the individual is given support and guidance through
treatment and return to work.

Objectives:
Accurate and timely reporting of incidents and injuries.
Effective investigation of incidents and injuries with accountable investigation
ownership.
Appropriate investigation timeframes and review.
Effective consultation with individuals.
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Effective management of workplace injuries and return to work, with a

standardised injury and worker’s compensation management process applied
across all Caltex facilities.
Measuring and monitoring of safety performance.
Compliance to statutory requirements for incident reporting and employee
return to work

 Consultation
To ensure:
Effective two way communication with stakeholders (e.g. workforce,
contractors, community, regulators) about safety, health, security and the
environment.

Objectives:
Safety, health, security and environment related management decisions for
Caltex workplaces or activities are made in consultation with key stakeholders
who may be impacted.
Information about safety and health is made available to individuals.
The workforce is given reasonable opportunity to raise and express their
safety and health concerns.
Compliance with legislative requirements for consultation is maintained.
Where applicable, neighbours of facilities are appropriately consulted about
safety, health, security and environmental matters relating to Caltex operations.
Emergency Services who may be required to respond to Caltex sites are
appropriately consulted about emergency response arrangements and
infrastructure.

F. SCHEDULING
 Routine Work Procedures

To ensure:
Safety, health, security, environmental and reliability risks associated with
routine operational and maintenance tasks are minimised through the
development and use of authorised, documented procedures or work
instructions.
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Objectives:
Procedures (or work instructions) are in place for all routine operational and
maintenance tasks across the business.
Procedures are implemented effectively through strong consultation,
communication, training, monitoring and document control.
Correct, approved procedures are used for all routine operational and
maintenance tasks.
Procedures are maintained, up to date and readily accessible.
Procedures are reviewed and continuously improved throughout their
lifecycle.

G. MAINTENANCE

 Process Safety Information

To ensure:
Process Safety Information (PSI) is fully documented, validated, maintained
as current, and made readily accessible to those who need to use it or reference
it in their work. PSI consists of key data essential for ongoing management of
operational process related risks. In this context “process” refers to any activity
or operation involving hazardous materials including use, storage,
manufacturing, handling, or on-site movement.

Objectives:
Relevant PSI is documented for applicable Caltex managed or operated
facilities
PSI is readily accessible to individuals that need it for identifying hazards and
controlling process risks
PSI is kept current and reviewed following changes, incidents or new
learnings.
 Document Management
To ensure:
The most current authorised version of a document is always accessible and
held in a secure environment, that is the single source of truth.
Documents are controlled, and no unauthorised, out-dated or incorrect
procedures are being followed.
The risk of incidents due to incomplete knowledge or direction is mitigated.
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Decisions are made, and actions are taken, based on current and authorised
information.
Regulatory and legislative requirements for document controls, where
applicable, are met.

Objectives:
Documents critical for safe, reliable, efficient operation are periodically
reviewed for adequacy and approved by authorised personnel before release.
Only the latest authorised version of managed documentation is in use, with
superseded or obsolete documents archived.
Controlled documents and information are readily accessible, quick to
retrieve and clearly identifiable.
Document security requirements are met.
A systematic review, revision and approval process is in place for all
controlled documents.