Subcontractor Management. April 12, 2011 IAGC/OGP Global HSSE Forum, Houston

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1 Subcontractor Management April 12, 2011 IAGC/OGP Global HSSE Forum, Houston

2 Previous Prioritisation Exercise 6 OGP member companies BG, BHP Billiton, BP, ExxonMobil, Shell, Total 6 IAGC member companies CGGVeritas, Fugro, Geokinetics, Global Geophysical, PGS, WesternGeco Out of 11 topics, there was the same clear winner with both sets of companies Subcontractor Management

3 Prioritisation results OGP IAGC Combined 1 Cover land drowning in Water & Watercraft in GO (OGP 355) & include strategies for minimising small boat ops Create a Geophysical Supplement to OGP 365 ( e.g. Off-road driving; limitations for seismic ops, e.g. driving hours for crew) Geophysical vessel supplement for the new electronic IMCA-CMID Forest clearing, chainsaw operations etc. (A short manual or maybe something is available from CAGC?) Subcontractor management Earthing and safe wiring of land camps Land access guidelines (starting from a Shell provided document; add archaeology, fishery, etc.) Substance abuse guidelines (levels obsolete) Erection of Communication masts (over 50ft) Better circulation and learning from Hi-Po s How do we address human behaviours? 2 3 5

4 Workshop Held adjacent to the Fall 2009 Forum at PGS 21 participants good mix of IAGC, OGP and IECO members Posed a series of questions to the group Brainstormed each question in breakout groups Review and discuss feedback on each question Material captured for documentation

5 Questions posed What is subcontractor management (SCM)? What are the obstacles to improved SCM? What are the solutions, ideas, best practices etc to improve SCM performance?

6 Discussion During the workshop decided clarity needed around definition of the term Subcontractor Management

7 Current SCM Definition A process by which subcontractors, as defined here, are integrated into an operation in a manner which ensures they meet operational, financial and HSE goals

8 Discussion (contd.) During the workshop decided clarity needed around definition of the term Subcontractor Management Would be good to include anecdotal descriptions of incidents that have happened from poor subcontractor management as examples

9 Sample example EXAMPLE: A handyman was brought in to a small processing centre to fix shelving to a wall for documents. The handyman was ill equipped, climbed on chairs and tables to access the required wall position, used an unearthed electric drill and drilled through a mains electrical cable in the wall. The result was a litany of damage including severe burns and fall injuries to the handyman, broken furniture, fire extinguisher medium damage to equipment and loss of power to the processing unit and associated hardware failure due to the nature of the power disruption.

10 Discussion (contd.) During the workshop decided clarity needed around definition of the term Subcontractor Management Would be good to include anecdotal descriptions of incidents that have happened from poor subcontractor management as examples Categories of possible people at a geophysical worksite

11 Worksite People Categories Visitors Vendors Direct Subcontractors Indirect Subcontractors Casual Service Providers Client Representatives

12 Terminology Vendor: provides products (e.g. material or equipment), or multi client delivery service Subcontractor: provides mainly services, via a contractual relationship

13 Subcontractor Management Table of Contents

14 Still needed More anecdotal examples to highlight important points E.g. A story of an incident with an unsupervised subcontractor Feedback from Forum participants and full community Updated draft sent out as a pre read for this meeting

15 Current status Feedback has been incorporated from original workshop participants who responded Would like to receive any final feedback by end April Plan is to send final draft to IAGC and OGP for approvals by mid/late May