GU-140
Petroleum Development Oman L.L.C.
Document: Contract HSE Management:
Document ID GU-140 (Preparation for Contract C9)
Document Type Guidance
Security Un-Restricted
Discipline Management Safety & Environment
Document Owner Head of Corporate HSE-SD
Month and Year of
March 2012
Issue
Version 3.9
Keywords Minimum HSE standards in contracts
Copyright: This document is the property of Petroleum Development Oman, LLC.
Neither the whole nor any part of this document may be disclosed to others or
reproduced, stored in a retrieval system, or transmitted in any form by any means
(electronic, mechanical, reprographic recording or otherwise) without prior written
consent of the owner.
Contract Holders: Do NOT Include this page in the Contract
Petroleum Development Oman LLC
Revision: 3.9
Effective: March 2012
DOCUMENT Authorisation
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GU-140 (C09) HSE in Contracts Minimum HSE Requirements
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Revision: 3.9
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The following is a brief summary of the four most recent revisions to this document. The
Document Custodian holds details of all revisions prior to these on file.
Revision No. Date
Rev 3.9
01/03/2012
2002 Issue
Rev 2.0
2002 Issue
Rev 1.0
09/Oct/02
July 02
Author
Scope / Remarks
CORPORATE Revision to reflect the changes in the PR1171 Part 1 and
HSE12
Part II. The revision includes, Letter of Assurance, Life
Saving Rules and a section 11 where the Contract Holder
may detail specific requirements.
CSM/1
Revision to ensure consistency with SP1171 Part I and Part
II. Chapters renumbered in logic sequence.
CSM/1
New format. Minor editorial changes. Document now in
line with changes made to SP 1171 Part II. Advisory
comments added for Contract Holders. New sections
added on Commencement Certificate (formerly HSE
Certificate) and STOP programme. Paragraph added on
‘obligations of contractors under the General
Conditions’. Consequence column deleted from Hazard
Table in Section 2. Reference documents changed in line
with new HSE-MS documents.
Note that this revision was NOT formally issued as a
completed document. It was however included on the
HSE-MS CD-ROM (Sept/2002).
User Notes:
The requirements of Appendix 1 (Document C-09 HSE Requirements) of this document are
mandatory in PDO Contracts. They act as the enforceable contractual link to the Company’s
applicable HSE Management System documentation. Non-compliance with these requirements
shall only be authorised by CSM through STEP-OUT approval.
A controlled copy of the current version of this document is on PDO's Live Link. Before making
reference to this document, it is the user's responsibility to ensure that any hard copy, or electronic
copy, is current. For assistance, contact the Document Custodian CORPORATE HSE1
Users are encouraged to participate in the ongoing improvement of this document by providing
constructive feedback to the Document Custodian CORPORATE HSE1.
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GU-140 (C09) HSE in Contracts Minimum HSE Requirements
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Related Business Processes & CMF Documents
Related Business Processes
Code
Business Process (EPBM 4.0)
Parent Document(s)
Doc. No.
Document Title
CP 122
HSE Management System Manual
Other Related CMF Document(s)
Doc. No.
Document Title
PR 1171 Pt
I & II
PR 2010 Pt
II
SP 1157
Contract HSE Management
SP 2000
Road Transport Specification
GU 673
Core HSE Assessment System
PR1233
Contract C&P Management
HSE Training Provision Approvals and Quality Assurance Procedure
HSE Training Specifications
The related CMF Documents can be retrieved from the Corporate Business Control
Documentation Register CMF.
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Contents
Related Business Processes & CMF Documents
1.
Introduction
1.1
1.2
1.3
1.4
PURPOSE
SCOPE
RESPONSIBILITY
REVIEW AND IMPROVEMENT
Appendix I:
DOCUMENT C-09 HSE REQUIREMENTS
1.
Contractor’s HSE Management System & Contract HSE Management Plan
2.
Hazard Identification and Management Process (HEMP)
3.
HSE Training
4.
Commencement Certificate
5.
Performance Monitoring and Reporting
6.
HSE Incidents
7.
Site Restoration
8.
HSE Non-Compliance Penalties
9.
Behaviour and Assurance
10. Applicable Documents
11. PDO HSE Specific Details
Attachment 1 - Applicable Documents
Attachment 2: HSE Training Requirements
Page 5 of 19
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1.
Introduction
1.1
Purpose
Revision: 3.9
Effective: March 2012
This document provides guidance for PDO Contract Holders (and other contract
personnel) in the preparation and use of the “C-09 HSE Requirements” section of
PDO’s standard contract documentation i.e. HSE minimum requirements.
Appendix 1 provides the ‘pro-forma’ of Section C-09 which shall be made
Contract Specific by the Contract Holder and/or Contract Engineer.
The purpose of Section C-09 of PDO’s ‘standard contract documentation’ is to:



1.2
Act as the enforceable contractual link to PDO’s applicable HSE Management
System documentation.
Determine and highlight the hazards related to the execution of the Work and
Services under the Contract. Define how those hazards will be managed so
that risk is eliminated or minimized to ALARP (As Low As Reasonably
Practical).
Detail the requirements for Contractors to examine the proposed Scope of
Works (Section C-4).
Scope
All Work or Services under Contract to PDO shall conform to the “Document C09 HSE Requirements” as detailed in Appendix 1 this document.
1.3
Responsibility
Contract Holder
The Contract Holder shall review Appendix 1 “Document C9 HSE
Requirements” of this GU-140 and modify, only where indicated, the text to
become specific for each contract. Information relevant to Contract Holders is
shown in text boxes, and is intended as guidance only to Contract Holders in
compiling a contract specific HSE Specification.
Instructions and guidance to the Contract Holder in preparing the “Document C09 HSE Requirements” for a Contract is included in procedure PR-1171 Part I
and II.
The Boxes with italicised text SHALL be removed from C-09 by the Contract
Holder and SHALL NOT be inserted in the contract. This text inside the box is
intended as Guidance to the CH only in preparing C-09.
1.4
Review and Improvement
Any user of this document who encounters a mistake or confusing entry is
requested to immediately notify the Document Custodian CORPORATE HSE1.
This Guideline GU-140 (C-09) shall be reviewed every 2 years. However
changes to the current version may be made in less than this period as the need
arises, depending on the issue of new and relevant legislation and/or major
organisational changes in PDO.
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Appendix I:
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DOCUMENT C-09 HSE REQUIREMENTS
GU-140 (C09) HSE in Contracts Minimum HSE Requirements
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Petroleum Development Oman L.L.C.
DOCUMENT C-09
HSE REQUIREMENTS
(Revision 3.9)
This document is the property of Petroleum Development Oman, LLC. Neither the whole nor
any part of this document may be disclosed to others or reproduced, stored in a retrieval
system, or transmitted in any form by any means (electronic, mechanical, reprographic
recording or otherwise) without prior written consent of the owner.
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GU-140 (C-09) : HSE in Contracts HSE Minimum Requirements
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1.
Revision: 3.9
Effective: March 2012
Introduction
1.1
1.2
1.3
1.4
PURPOSE
SCOPE
RESPONSIBILITY
REVIEW AND IMPROVEMENT
Appendix I:
DOCUMENT C-09 HSE REQUIREMENTS
1.
Contractor’s HSE Management System & Contract HSE Management Plan
2.
Hazard Identification and Management Process (HEMP)
3.
HSE Training
4.
Commencement Certificate
5.
Performance Monitoring and Reporting
6.
HSE Incidents
7.
Site Restoration
8.
HSE Non-Compliance Penalties
9.
Behaviour and Assurance
10. Applicable Documents
11. PDO HSE Specific Details
Attachment 1 - Applicable Documents
Attachment 2: HSE Training Requirements
Page 2 of 19
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All Work and Services executed as part of this Contract shall conform to the HSE
Requirements as detailed in this section C9 of the Contract.
1.
Contractor’s HSE Management System &
Contract HSE Management Plan
1.1. The Contractor shall have a developed HSE Management System that is
compatible with Company’s HSE Management System as described in CP-122
HSE Management System Manual Rev. 5.
1.2. The Contractor shall submit a Contract HSE Management Plan (HSE plan)
describing the specific actions, programs and procedures that will be
implemented by the Contractor to manage hazards associated with the
execution of the Work and Services under the Contract.
1.3. The HSE Management Plan will include a completed HEMP review
incorporating all activities in the scope of the contract (see 2 below).
1.4. The HSE Management Plan shall be developed in accordance with the Contract
HSE Management Procedure PR-1171, Part II section 2.6.
1.5. The Contract HSE Management Plan shall cover all Contract Phases from
mobilisation through execution, demobilisation and site restoration.
1.6. The requirements specified in this section C-09 apply regardless of the status of
an activity (e.g. standing by or demobilised).
1.7. Contractor shall ensure that any person, admitted to site by the Contractor or
Sub Contractor shall comply with the relevant HSE specification herein.
2.
Hazard Identification and Management Process (HEMP)
2.1. The Company has reviewed the content of the Work/Services to be provided
under the Contract and has identified activities/tasks and hazards that, as a
minimum, should be considered by the Contractor when developing the contract
HSE Management Plan (refer to Section 1 above). The format for the HEMP
records is available in PR1171 Part II Appendix 6.
The activities and hazards identified shall include but not be limited to the
following:
The Contract Holder shall list the activities hazards, undesirable events and Threats as
below example, associated with the Contract. Refer to Task 2 of PR 1171 Contract HSE
Management Part I It will be the responsibility of the contractor to complete the
exercise and detail Preventative measures, mitigation and risk ratings in the return
HEMP submission.
Activity
Road transport
Driving
Working @
Height
Confined Space
Working
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Hazard
Potential
undesirable Events
Vehicle in Motion Collision with
objects, people, other
vehicles
People at height,
objects at height
absence of oxygen,
presence of toxic
gases (H2S)
Potential Causes
(Threats)
Poor visibility,
speeding, road poor
road conditions,
mechanical failure
Dropped objects, falls Tools not secure,
scaffold collapse
Worker asphyxiated
Unauthorised entry,
workers without
training
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Use of electrical
Hand Tools
Electrical power
Electrocution
Construction Waste
Collection
Nails sharp and
heavy objects
Pressure testing
Air or liquid
under pressure
Flammable gas
under pressure
Worker impacts
with nail and
receives puncture
wound
Catastrophic release
of contents
Leak of gas and
ignition
Gas Welding
Painting
Toxic fumes
Chemical Cleaning
Toxic/Flammabl
e/Harmful/corro
sive material
Catering
Bacteria
Chemical
contamination of
food
Well Intervention
High toxic high
pressure
Hydrocarbons
Release of
hydrocarbon
Page 4 of 19
Build up of toxic
vapours in enclosed
area
tools without correct
plugs, damaged
insulation
Denailing of
materials not
managed,
No test pack checks
before activity,
No gas flash back
arrester, gas leaks,
unsecured cylinders,
welding or cutting
near flammable
fluids, fumes, open
flame, arcing, UV
light, heat stress,
None or little
ventilation,
inappropriate
respiratory
protection, worker
not aware of the risks
Crude oil & diesel,
paints & coatings,
oils & greases,
solvents, acids, mud
chemicals,
completion
chemicals, cement,
cement chemicals,
shock cards, storage,
shading
Untrained food
handlers out of date
medicals for food
handlers/Lack of
discipline in food
delivery,
Hydrocarbons at
surface, high pressure,
hydrogen sulphide,
ionising radiation,
naturally occurring
radioactive materials,
ignition sources,
tubular, drill pipe and
BHA handling,
working out of direct
sight (e.g. in the cellar)
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2.2 The Contractor shall prepare and implement comprehensive HEMP as part of the
HSE Management Plan prior to Commencement of the Work or Services as per PR
1171 Part II Appendix 6.
3. HSE Training
3.1. The Contractor shall provide, as a minimum, HSE training for Contractor
Personnel in accordance with the minimum HSE training requirements as listed
in Attachment 2 of this C9 document.
3.2. Training Matrix – Contractor shall at all times maintain an up to date list of all
personnel employed under the contract, and details of the training courses they
have attended, including the attendance date. Appendix PR1171 Part II?
The Contract Holder shall insert into this C-09 (as Attachment II) the standard
minimum HSE training requirements. The list shall be made specific for this
contract by deleting courses that are not applicable.
Refer to SP 1157 HSE Training Specification for further information regarding
HSE training requirements.
3.3. The Contractor shall bear all costs of meeting the HSE training requirements of
the contract.
4. Commencement Certificate
The Contract Holder shall sign the commencement certificate (reference
PR1171 Part II Appendix 1) when the Contractor has confirmed that they are in
a state of readiness to commence the work and presented the certificate to the
CH for signature. The CH must be satisfied that all the control measures are in
place for the complete scope of the contract or the discreet phase. In some cases
the certificate maybe issued for a discreet phase e.g. mobilisation. In these cases
make certain the certificate is clear as to what is permitted. Sign a Full
certificate when satisfied.
4.1. The Contractor shall not commence the Work or Services until the Company
has issued the Commencement Certificate (as per PR 1171 Contract HSE
Management Part II, Appendix 1).
4.2. The Contractor is reminded of the obligations under the General Conditions
(Section C3). In addition, all activities, regardless of location and status,
undertaken as part of the Work or Services provided under the contract, whether
provided directly or by a Subcontractor (including, but not limited to, material
and equipment suppliers), are considered the responsibility of the Contractor.
Compliance to the HSE requirements will apply equally to all activities related
to the contract.
4.3. As a point of clarification the contract makes no differentiation as to the status
of an activity whether being mobilised or demobilised or standing idle the HSE
and any other contract requirements apply equally in all cases unless
specifically stated otherwise.
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5.
Revision: 3.9
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Performance Monitoring and Reporting
The Contract Holder shall ensure that there is an agreed Company, HSE
monitoring plan, in line with the requirements of PR1171 Part I Appendix 2.
This should reflect the annual, monthly, weekly etc targets that have been agreed
with the contract team.
5.1. The Contractor shall regularly monitor HSE performance as per the agreed
Contract HSE Management Plan and shall complete and submit the ‘Health and
Safety Statistics - Monthly Return’ (Appendix 4 of PR 1171 Contract HSE
Management Part II) to the Contract Holder. This should be submitted not later
than 1600 hrs on the last day of the calendar month.
6.
HSE Incidents
The Contract holder needs to ensure that the Contractor is aware of the
recording and reporting of incidents including Near Miss reporting. The hard
copy versions for reporting refer to PR1171 Part II Appendix 4.
The Contractor shall report to Company and shall investigate all work-related
HSE incidents, and comply with the requirements as outlined in the latest
version of Company’s Incident Notification, Analysis, Reporting and Follow-up
Procedure (PR 1418).
7.
Site Restoration
Upon Completion of the Work or Services, the Contractor shall satisfactorily
restore the Site, including any areas of the Company concession area and any
premises thereon, used by the Contractor to perform the Work or Services.
The Company shall certify satisfactory completion by issuing a Site Restoration
Certificate (Appendix 5 of PR 1171 Contract HSE Management Part II).
For contracts that do not include requirements for site restoration, the Contract
Holder should amend this section as appropriate and indicate that a Site
Restoration Certificate is not required. For certificate see PR1171 Part II
Appendix 5
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8. HSE Non-Compliance Penalties
The Contractor’s obligation to consistently adhere to the Contract’s HSE
requirements is considered by PDO as being the direct responsibility of the
Contractors’ supervisor and management. The clauses below are standard
penalty clauses that are to be included. Adding incentive schemes (bonus) for
good HSE performance is good practice and should be considered but the
criteria for award MUST be robust. A sample Default form is available and can
be referenced in PR1171 Part 1 Appendix B.
8.1. Repeated failure by the Contractor to comply with contract HSE obligations
may result in the removal from site of the relevant Contractor’s supervisory
and/or managerial personnel.
8.2. In the event that the Company considers that the Contractor has failed to
comply with the latest approved Contract HSE Management Plan, or other HSE
Requirements, then Company shall issue the Contractor with an HSE Default
Notice.
8.3. An HSE Default Notice is any written notification issued by the Company
detailing specific aspects of the Works or Services that do not comply with
either the latest approved Contract HSE Management Plan or other Contract
HSE Requirements.
8.4. For each HSE Default notification the following amounts will become due to
the Company:
HSE Default
Single default
Penalty
OMR 500 per day per HSE Safety Default
notice
For the purposes of this penalty clause:
8.5. Where an HSE Default Notice contains several incidences of default, each
incident shall be considered as a separate HSE Default Notice.
8.6. Where HSE default persists for a period longer than 24 hours, then the
applicable penalty shall be repeated for each subsequent 24-hour period that the
default continues.
Where the repeated incidences of HSE default occur throughout the duration of
the Contract then the following remedies are available to the Company:
HSE Default
Repeated Recurrence
Persistent nonconformance
Page 7 of 19
Penalty
Increased supervision by the Company of the
Contractor at the cost of the Contractor
Suspension of Registration for the relevant
Service Group of the Contract
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9. Behaviour and Assurance
9.1. STOP
The Contractor shall fully implement a Safety Training Observation
Programme, or Company approved equivalent, in accordance with the
Company’s Specification SP 1259 STOP.
Contract Owner
The Contract Owner shall decide whether STOP TM or an equivalent programme
shall be implemented in a contract or not.
As a general guide, STOP TM or an equivalent programme, shall be implemented
in all contracts except those that are of a non-operational nature (e.g.: an
insurance contract). Formal deviation not to implement STOP TM or an
equivalent programme shall be given by the Service Group Custodian for the
type of work covered in the contract.
9.2. Life Saving Rules
The LSRs are an important part of PDO business and it is imperative that the
Contractor is fully knowledgeable of the 12 rules including, how to communicate
and embed them into the activities of the contract. Ensure the Contractor knows
where to find the details and commitment forms as well as the discipline matrix
for rule breakers.
http://sww1.pdo.shell.om/dept/cd/csm/blocks/hsefunction/lifesavingrules.asp
Life Saving Rules (LSRs) In addition to the chosen behavioural programme, the
contractors shall fully implement the Company Life Saving Rules.
The Life-Saving Rules set out clear and simple “dos” and “don’ts” covering
activities with the highest potential safety risk. They help to make sure that rules
are followed and people are protected. Contractors MUST adopt and ensure that
the rules are embedded in their company.
There are serious consequences associated with breaking a Life-Saving Rule. If a
rule-breaker is aware of the Life-Saving Rules or a required procedure and does
not comply, the maximum appropriate disciplinary action will be applied: up to
and including termination of employment for PDO employees; or removal from
site and disqualification from future PDO work for employees of contractors or
sub-contractors.
9.3. Letter of Assurance
The LoA is an audit assurance programme. All PDO contractors are required to
deliver an annual statement as to their HSE Management status. The statement
including a questionnaire is web based and is accessible through the PDO WEB
to contractors. If CH requires more details regarding this aspect then contact
CORPORATE HSE.
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The Contractor Chief Executive Officer (CEO) shall submit an HSE Letter of
Assurance (LoA) every year before 1st March to Company. The LoA is a
confirmation from the CEO, with or without qualifications, that the current
implementation status and integrity of the Contractor HSE management system
meets the Contract requirements. Only one LoA per Contractor is required
covering all contracts with Company that are operational on 1 January of that
year. Company will issue the format and submission details for the LoA annually.
10.
Applicable Documents
10.1.
The Contractor shall comply with, the requirements of Company’s
Health, Safety and Environment Management System Manual (CP 122) Rev.5
and other documentation as listed in the tables in Appendix 1 and any
documents referenced therein.
As a minimum the Contract Holder shall check the latest “Version Date” of the
documents. The document list can be accessed on the CORPORATE HSE web
site. The contract holder is to update and/or delete documents that are not
relevant to the contract. Copy and paste the latest and appropriate list of
documents from the WEB.
HSE Documents
10.2.
The Contractor may download Company’s HSE Management System and other
documents via the World Wide Web (WWW). The site can be accessed through the
following URL, username and password:
URL:
Username:
Password:
11.
http://www.pdo.co.om/hseforcontractors/
pdohse01
contractor01
PDO HSE Specific Details
In this section The Contract Holder (CH) may consider specific details to be
included in this C9. Although the same detail may be covered in the Company
Procedures, Standards or Specifications, the CH can use this section to highlight
certain information that the CH considers to be critical. The reasons for this may be
numerous, perhaps due to the limited working experience of the contractor with
PDO, or indeed with the experience level of the Contractor in dealing with the
scope of work e.g. working in High Sour H2S zones.
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Attachment 1 - Applicable Documents
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Attachment 2: HSE Training Requirements
The Contract Holder shall copy and insert at this location the standard minimum HSE training requirements as listed in SP1157 available
in PDO HSE Web Page. The list shall be made specific for this contract by deleting non applicable courses.
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