GROWING PAINS Managing HSE Challenges in Fast Growing Environment. Rohaizad Darus President, UMW Oil & Gas Corporation Berhad

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1 GROWING PAINS Managing HSE Challenges in Fast Growing Environment Rohaizad Darus President, UMW Oil & Gas Corporation Berhad

2 GROWING PAINS As company grows rapidly in asset and expand geographically, managing safety risks and maintaining good HSE practice is a challenge. Inevitably new drilling technology and automation process also introduce new challenges in term of HSE.

3 HSE CHALLENGES: NEW PEOPLE New people due to additional assets Leveraging on Competencies Technical competency Selecting right people with required IADC/IWCF technical competency Management competency Selecting right rig management team, managing multiple client HSE requirement and expectation

4 HSE CHALLENGES: NEW PEOPLE New people due to additional assets Multiple nationalities Vietnam, Myanmar, Malaysia, India, USA, Italy, Croatia, Poland, Egypt, Colombia etc. Promoting unity in diversity Building Teamwork Leadership skills in promoting safety behaviors Team dynamics in achieving high performance safety culture

5 HSE CHALLENGES: NEW PEOPLE New people due to new geographical areas Requirement of local crew content Many never have offshore oil and gas experience Minimum exposure to Oil & Gas safety behaviors Language barrier Some even require translator Some unable to read / understand HSE info, signage dừng lại (Stop!) (What?)

6 HSE CHALLENGES: NEW PEOPLE New people due to new geographical areas Cultural respect Sensitivity to local culture Avoiding cultural taboo Safety culture Unfamiliar with industry and company safety culture

7 HSE CHALLENGES: EXISTING PEOPLE Existing people moved out from comfort zone Supervisory challenge taking up bigger responsibility Promoted to new post on new asset or vacant post on existing asset Unable to detach from doing the work themselves Poor communication skills and lack of confidence

8 HSE CHALLENGES: EXISTING PEOPLE Existing people moved out from comfort zone Splitting the team Seasoned crew not comfortable with new crew at new asset Challenges in developing team cohesiveness in new team Complacency / Hard to change Take some time to adapt to new environment

9 HSE CHALLENGES: PEOPLE FACTOR IN MANAGING NEW TECHNOLOGY New technology to improve efficiency and operational safety Automation Improved drilling processes and drill hole quality Less human interference Mechanized tools Less dependence on human strength and manual handling

10 HSE CHALLENGES: PEOPLE FACTOR IN MANAGING NEW TECHNOLOGY New technology introduce new risks Familiarity to new methods how to operate? Requires adequate training for new equipment from OEM Exposure what can go wrong? Primarily depends on OEM expert advice Lesson learned from industry might still minimum Risk assessment review Detailed risks review including ergonomics DROPS audit

11 HSE CHALLENGES: PEOPLE FACTOR IN MANAGING NEW TECHNOLOGY New technology resulting in faster pace Can human catch up safely? Speed of familiarization and comfort level Coordination Requires regular and thorough Plan Based Execution (PBE)

12 MITIGATING CHALLENGES Recruitment planning Ensure advance deployment of key personnel Thorough cross check of experience and behavior of new recruit Placement strategy Placement based on familiarity with asset Combine experienced and non-experienced personnel in new team Crew Resource Management (CRM) Competency assurance UMW-INSTEP Drilling Academy IADC/IWCF certification Conduct pre-check and post recruitment audit

13 MITIGATING CHALLENGES Teambuilding session Conducted during induction session onshore Repeated onboard all new rigs during operations Language Barrier Basic language class and translation card Provide interpreter on board Mandatory dual language safety information and signage Focus Training New equipment training HSE leadership training Check-6

14 MITIGATING CHALLENGES Building Culture Start prior to arrival at location Leadership and Management Visibility and Integrity Supervisor and Crew Credibility and Integrity Heart & Mind Assimilating and ingraining UMW Safety Culture Lifetime personal behavioral change

15 MITIGATING CHALLENGES Management of Change (MoC) Deviation shall be exception rather than norm Comprehensive coverage Equipment, process, organization structure Control relevant management approval level Monitoring of effective implementation Log, action plan, training

16 THE END