IOGP 423 revision update. IAGC / IOGP Joint HSE & Security Forum Houston, 19 th April, 2016

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1 IOGP 423 revision update IAGC / IOGP Joint HSE & Security Forum Houston, 19 th April, 2016

2 Status of IOGP 423 Version 3.0 Currently with IOGP secretariat for final review and edits Will go to IOGP Safety Committee around end of April. Three week period for review. Published pdf should be available sometime in July

3 Developing a Communications Plan Decision made by IOGP to develop a communications plan for roll out of Version 3.0 E-Poster at SPE HSE International Conference in Stavanger (slides to follow describing highlights) Written paper will be published in one of the Energy Institute s magazines (will reach outside just oil and gas) Press release being developed and will be circulated to industry journals when document finally published Other publication opportunities being developed

4 Driving efficiencies in oil & gas through a risk based and systematic approach to contractor HSE management IOGP 423 (Version 3.0) John Blackhall, BP; Lisette Iversen, Statoil; Ian Threadgold, SPE, Threadgold Safety Management; Piet Van Dam, Shell & Scott Bergeron, Kosmos Energy

5 Slide 5 Content of talk Background Changes Supplemental tools Benefits Acknowledgements Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

6 Background HSE management - guidelines for working together in a contract environment (IOGP Report 423, June 2010) First issued in September 1999 (Report 6.64/291) An eight phase contracting process: Phase 1 - Planning Phase 2 - Sourcing / Capability assessment Phase 3 - Tender and award Phase 4 - Pre-mobilization Phase 5 - Mobilization Phase 6 - Execution Phase 7 - De-mobilization Phase 8 - Evaluation and close-out Client Phases of the contracting process 1 - Planning 3 - Tender and award Scope of work / context & risk assessment 2 - Sourcing / capability assessment Capability assessment Contracting mode Create tender list Bid documentation preparation & development of evaluation criteria 4 - Pre-mobilisation Establish HSE evaluation criteria and capability assessment protocol Bid documents evaluation and clarification Award contract Development of monitoring plan (modes 1 & 2) Contractor Contractor submits bid, including draft key HSE documentation HSE Plan including remedial actions as agreed Preparation & selection of subcontractors 5 - Mobilisation Communication of HSE plan - commence orientation & sitespecific training HSE field review or audit Mobilisation including subcontractors 6 - Execution Joint responsibility for for continuous improvement Deliver monitoring plan (modes 1 & 2) & performance reporting Joint Client / Contractor activities Contractors responds to HSE capability assessment questionnaire and if requested HSE audits Ensures subcontractors aligned with HSE requirements Post award planning, including completion of HSE plan including verification plan and bridging documentation if applicable Deliver HSE including verification plan & performance reporting Monitoring, audits and reporting on subcontractors activities DATA BASE of Suppliers Historical record Prior registration New contractors Slide De-mobilisation Review of de-mobilisation aspects of HSE plan / Reassess demobilisation risks Acceptance of work and restored site De-mobilisation, including subcontractors 8 - Final evaluation & close-out Final evaluation and close-out report Review Final evaluation and close-out report DATA BASE of Suppliers Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

7 Slide 7 Changes to IOGP 423 Changes include alignment to IOGP 510 & Operating Management System Four key Fundamentals Ten Elements Integrating risk management (Health, Safety, Security, Environment & Social Responsibility, represented by HSE ) Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

8 Slide 8 Other changes more emphasis on... Risk based aspects of the contracting process throughout all 8 phases Defining assurance mechanisms or risk mitigating actions for each phase Severity People Assets Environment Reputation No health effect/injury/ illness Slight health effect/injury/ ilness Minor health effect/injury/ ilness Major health effect/injury/ illness No damage No effect No impact Slight damage Slight effect Slight impact Minor damage Minor effect Limited impact Local damage Local effect Considerable impact 4 Single fatality Major damage Major effect National impact 5 Multiple fatalities Consequence Extensive damage Massive effect International impact Increasing Probability A B C D E Never heard of in the industry Heard of in the industry Incident has occurred in similar operations Happens several times a year in similar operations Happens several times a month in similar operations Contractor verifying that risk controls and barriers are being effectively managed, along with monitoring by the client INSIGNIFICANT LOW MEDIUM HIGH Risk classification and management response No action required Control at workplace level and manage for continuous improvement Requires constant management attention and incorporation of risk reduction measures Very substantial risk reduction measures and seriously consider alternatives Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

9 Slide 9 More emphasis on... continued Client and contractor working together in a collaborative way Contractor using the same process for managing subcontractors HSE responsibilities for key client and contractor roles Address management system gaps through interfacing and bridging Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

10 Slide 10 Supplemental reports/tools IOGP ; Contractor HSE capability assessment & scoring system; IOGP ; HSE plan guidance and checklist; IOGP ; HSE bridging document guidance and template. Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

11 Slide 11 Benefits to using... Consistent and standardized approach to HSE management in a contract environment includes: HSE risk focus; assurance mechanisms or risk mitigating actions all through the contract life cycle; systematic verification and monitoring of barrier / control effectiveness; clients and contractors working in a more aligned manner. This aligned, standardised and systematic approach should result in: the reduction of HSE related incidents; greater retained value in the oil and gas industry; less incurred costs for clients and contractors. Driving efficiencies in Oil & Gas through a risk based and systematic approach to contractor HSE management Ian Threadgold

12 Slide 12 Acknowledgements The IOGP Safety Committee is acknowledged for sponsoring development of this important industry guidance document revision. The IOGP 423 Revision Task Force members are acknowledged for all their time and efforts that resulted in this revision, as well as the companies who provided them the time to participate.

13 Thank You / Questions Slide 13

14 For more information please contact: Registered Office Level Blackfriars Rd London SE1 8NL United Kingdom T +44 (0) F +44 (0) reception@iogp.org Brussels Office Bd du Souverain,165 4th Floor B-1160 Brussels Belgium T +32 (0) F +32 (0)

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