Shell Confidential EP 2001-0???

????HSE MANAGEMENT SYSTEM AUDIT

(??2001??)
by
???? SIEP EP-HSE

Team members: ???? SIEP EP-HSE (Leader)

???? ????
???? ????
???? ????
???? ????
???? ????
Custodian: ????
Date of issue: ????
ECCN number: No US content or ????
Distribution: ???? ???? copies
SEPI/SIEP EP????, EP-HSE, EPT-CS (library)
All team members

This document is Confidential. Distribution is restricted to the named individuals and

organisations contained in the distribution list maintained by the copyright owners. Further
distribution may only be made with the consent of the copyright owners and must be logged and
recorded in the distribution list for this document. Neither the whole nor any part of this
document may be disclosed to any third party without the prior written consent of the copyright
owners.
Copyright 2000 SIEP B.V.
 EP 2000-0725 - II - Shell Confidential

SHELL INTERNATIONAL EXPLORATION AND PRODUCTION B.V., THE

HAGUE
Further copies can be obtained from the Global EP Library, The Hague with permission from the
author.
EP 2001-0??? -I- Shell Confidential

Table of contents
1. Introduction 1
2. EXECUTIVE SUMMARY 2
2.1. Statement of Review Opinion 2
2.2. Assessment of HSE Management System Elements 2
3. AUDIT FINDINGS AND RECOMMENDATIONS 1
Table : 3.1.1 - Leadership and Commitment Error! Bookmark
not defined.
Table : 3.1.2 - Policy, Strategic Objectives and
Sustainable Development Error! Bookmark not
defined.
Table : 3.1.3 - Organisation, Responsibilities, Resources,
Competence, Contractors, Communication
and HSE Documentation Error! Bookmark not
defined.
Table : 3.1.4 - HEMP Error! Bookmark not defined.
Table : 3.1.5 - Planning and Procedures Error! Bookmark not
defined.
Table : 3.1.6 - Implementation and Monitoring Error!
Bookmark not defined.
Table : 3.1 7 - Audit Error! Bookmark not defined.
Table : 3.1.8 - Review Error! Bookmark not defined.
APPENDIX 1. DEFINITIONS OF AUDIT OPINIONS 1
APPENDIX 2. CLASSIFICATION OF FINDINGS 3
APPENDIX 3. RECOMMENDED ACTIONS RANKED BY
SEVERITY AND CATEGORY 5
APPENDIX 4. TERMS OF REFERENCE 11
APPENDIX 5. GLOSSARY OF ABBREVIATIONS 12
APPENDIX 6. HSE MS ASSESSMENT 13
EP 2001-0???? -1- Shell Confidential

1. INTRODUCTION
This report presents the Findings and Recommendations of the Audit
of the ???? HSE Management System (HSE MS), carried out between
????.
The Audit was conducted using the Group HSE MS, Group Procedure
for an HSE Management System (Group HSE MS Appendix 3),
Management of Joint Ventures not under operational control (JVs-
nuoc) (Group HSE MS Appendix 9) and the EP HSE Self Assessment
Questionnaire (SAQ) as the principal source documents. The Audit
Terms of Reference (TOR) are included in Appendix 4.
EP 2001-0???? -2- Shell Confidential

2. EXECUTIVE SUMMARY

2.1. Statement of Review Opinion

Using the guidelines given in Appendix 1, based on the Shell Internal
Audit Guidelines, the overall assessment of this HSE Management
System Audit is ????, however, attention is required to correct ????
High and ???? Medium deficiencies noted.
In reaching this opinion, the team has taken into account both the
seriousness and breadth of findings, details of which are presented
in Chapter 3.
High Findings: ???? (classified as Few)
Medium Findings: ????
Low Findings:
A total of ???? recommendations (???? H, ???? M, ???? L) have been
made to correct the gaps noted in the findings. These are listed in
Appendix 3, ranked by severity and category of the associated
findings.
Main Findings:





2.2. Assessment of HSE Management System Elements

Number of findings per HSE-MS element

No. of findings Severity

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Leadership & Commitment Serious

High
Policy & Strat. Objectives
Medium
Org., Resp, Reso, Stds & Doc Low

HEMP

Planning & Procedures

Implement & Monitor

Audit

Review

Figure1: Distribution of Findings within the HSE Management System

Elements
EP 2000-0725 -3- Shell Confidential

An assessment of the effectiveness of the HSE MS was made using

the SIEP HSE MS Self-Assessment Questionnaire (SAQ). The main
issues in each of the elements are highlighted below. See Appendix
6 for HSE MS Self Assessment details.
Leadership & Commitment

SAQ assessed at level: ?

Policy & Strategic Objectives and Sustainable Development

SAQ assessed at level: ?

Organisation, Responsibilities, HSE Advisors, Resources,
Competence, Contractors Communication and Documents
SAQ assessed at level: ?
HEMP (Hazard and Effects Management Process)

SAQ assessed at level: ?

EP 2000-0725 -4- Shell Confidential

Planning and Procedures

SAQ assessed at level: ?

Implementation & Monitoring

SAQ assessed at level: ?

Audit
SAQ assessed at level: ?
Review
SAQ assessed at level: ?
Overall SAQ assessed at level: ?
EP 2001-0???? -1- Shell Confidential

3. AUDIT FINDINGS AND RECOMMENDATIONS

Note: Recorded in these tables are the Review Findings
(deficiencies), together with their Significance and
Recommendations as to how each deficiency might be rectified.
Findings are classified as detailed in Appendix 1, and are listed in
the appropriate HSE MS sub-element table.
EP 2001-0???? -2- Shell Confidential
EP 2001-0???? -1- Shell Confidential

APPENDIX 0.DEFINITIONS OF AUDIT OPINIONS

The possible audit opinions are as defined in the Group Internal Audit
Guidelines , Section 6.4(c).
Audit Level of Inference for senior management
opinion concern
Good Specific No follow up by auditee’s function
head Internal Audit Committee (IAC)
member.
Fair Overall In addition to following up correction
scope for of any High or Medium weaknesses
enhancemen the function head should encourage
t general improvement in controls
awareness
Poor Overall In addition to following up correction
cause for of any Serious, High or Medium
concern weaknesses the function head should
take affirmative action to ensure that
control standards in this area are
raised
Unacceptable Overall In addition to following up correction
cause for of Serious, High or Medium
grave weaknesses the function head should
concern satisfy the senior management team
concerning affirmative action to raise
control standards in this area

The most favourable audit opinion is derived from the matrix below:
Finding rating Most favourable possible
audit opinion
Serious High Medium High + Good Fair Poor Unacc
medium
Nil Nil Nil or - 
Few
Nil Nil Many 
Nil Few Nil or 
Few
Nil Few Few Many 
or
Many
1 or 2 Nil or Nil or 
Note Any Any
2
EP 2001-0???? -2- Shell Confidential

Nil Many Nil or 

Any
2 Any Any 
The basic definitions to be used for Few and Many are: Few < 20
Findings and Many > 40 findings.
It would be at the discretion of the audit leader to propose a variation to
these definitions in the light of specific circumstances, such as: the audit
scope, the distribution of Findings within the MS elements and the
degree to which clustering of Findings may have distorted the numbers.
These numbers assume that each Finding contains only one, discrete,
weakness. The fact that one such Finding gives rise to more than one
Recommendation has no influence upon the count.
EP 2001-0???? -3- Shell Confidential

APPENDIX 1.CLASSIFICATION OF FINDINGS

Each finding in Chapter 3 is identified in the following manner, for
example:
Referenc lev se cat ele
e l v
3.1.4.6 a 3 L R 20

The reference is the number of the Section of the report in which the
finding appears, together with a sequencing letter (a) to (z) where
more than one finding has been identified. The first number, ‘3’ in
above example, refers to the level in the Self-Assessment
Questionnaire. The following two letters, ‘L’ and ‘R’ in the above
example, are in accordance with the Weakness Classification Matrix
shown in Figure 1.
A B C D E
Severity People Assets Environ- Repu- Never heard of Has Has occurred in Happens Happens
ment tation in occurred in the audited OU several times a several times a
EP industry EP industry year in the year in the
audited OU audited facility

No injury
No No No
0 or damage
damage effect impact
to health

Slight injury
Slight Slight Slight Low
1 or health
damage effect impact
effects

Minor injury
Minor Minor Minor
2 or health
damage effect impact Medium
effects

Major injury Consider-

3 Local Localised
or health able
damage effect
effects impact

Single
High
PTD*fatality
or 1 Major Major National
4 or permanent
to 3 damage effect impact
total disability
fatalities

5 Multiple Extensive Massive

Inter-
national
Serious
fatalities damage effect
impact

Figure 1: Weaknesses classification matrix

The first letter identifies the severity level as related to the potential
consequences of the observed weakness or deficiency, as detailed in
Table 2:

Severity Definition
level
S - Serious A serious weakness exposes the company to a major extent in
terms of achievement of the corporate HSE objectives or results.
H - High A high weakness is one, which, though not serious, is essential to
be brought to the attention of the senior management team. This
should also include any otherwise medium weakness, which is a
repeat finding from a previous report.
M- A medium weakness could result in a perceptible and
Medium undesirable effect on achievement of HSE objectives.
EP 2001-0???? -4- Shell Confidential

L - Low A low weakness has no major HSE impact at the process level
but its correction will assure greater effectiveness/efficiency in
the process concerned.

Table 2
The second letter identifies the category:
P - People affecting people via accidents and injuries.
A - Assets affecting costs and efficiency.
E - Environment affecting environmental concerns.
R - Reputation affecting company reputation without direct
link to the above categories.
The final digit of the code, ‘20’ in the above example, refers to the
sub-element number (1-33) of the HSE Management System with
which the finding is most strongly associated.
As far as possible root causes for weaknesses have been identified.
HSE audits/reviews identify potential long and short-term hazards to
personnel, assets, the environment and reputation. It should be
understood that auditing is a sampling process with the widest scope
in the time available. In addition, not every aspect of a potential
hazard may have been fully examined by the audit team.
It is, therefore, essential that whilst in the process of closing out
recommended action items presented in this report, the HSE
management system for routine identification of new and existing
hazards for all operations continues as normal.
Audit/review recommendations are made to indicate possible
solutions. This should not be taken to imply that they are mandatory.
Alternatives should be explored to find the optimum solution for each
weakness or gap identified in the findings.
Audit/review follow-up is the OU/NVO's responsibility. With
reference to the guidance provided in the Group Internal Audit
Guidelines, the OU/NVO's IAC should maintain a register of the
recommendations resulting from this audit/review, in which the
status of open actions are regularly updated.
OU/NVO approved justifications of variations or rejections of
audit/review recommendations may be copied to the SIEP
audit/review team leader to avoid misinterpretation of
recommendations. There is no requirement to report routine follow-
up details to EP-HSE or the SIEP audit/review leader.
Documentation of closed-out items should be retained by the
OU/NVO for possible inspection during subsequent audits/reviews.
 EP 2001-0???? -5- Shell Confidential

APPENDIX 2.RECOMMENDED ACTIONS RANKED BY SEVERITY AND CATEGORY

High Risk - People
Reference sev cat ele Recommendation Status Action Target Date
Party

1.
 EP 2001-0???? -6- Shell Confidential

Medium Risk - People

Reference sev cat ele Recommendation Status Action Target Date
Party
 EP 2001-0???? -7- Shell Confidential

Environment – Medium Risk

Reference sev cat Ele Recommendation Status Action Target Date
Party

Reputation - Medium Risk

Reference sev cat Ele Recommendation Status Action Target Date
Party
 EP 2001-0???? -8- Shell Confidential

People - Low Risk

Reference sev cat ele Recommendation Status Action Target Date
Party

Asset - Low Risk

Reference sev cat Ele Recommendation Status Action Target Date
Party

Environment - Low Risk

Reference sev cat Ele Recommendation Status Action Target Date
Party
 EP 2001-0???? -9- Shell Confidential

Reputation - Low Risk

Reference sev cat Ele Recommendation Status Action Target Date
Party
EP 2001-0???? - 11 - Shell Confidential

APPENDIX 3.TERMS OF REFERENCE

EP 2001-0???? - 12 - Shell Confidential

APPENDIX 4.GLOSSARY OF ABBREVIATIONS

ALARP As Low As Reasonably Practicable
CM Crisis Management
HAZOP Hazard and Operability Study
HAZID Hazard Identification
HEMP Hazard and Effect Management Process
HRA Health Risk Assessment
HSE Health, Safety and Environment
HSE MS Health, Safety and Environment Management System
ISO International Standards Organisation
JV Joint Venture
JV-nuoc Joint Ventures not under operational control
KPI Key Performance Indicator
LTI Lost Time Incident
LTIF Lost Time Incident Frequency
OH Occupational Health
OU Operating Unit
PPE Personal Protection Equipment
PTW Permit To Work
RSI Repetitive Strain Illness
SAQ Self Assessment Questionnaire
SGS Shell Global Solutions
SIEP Shell International Exploration and Production B.V.
TOR Terms of Reference
TRCF Total Recordable Case Frequency
EP 2001-0???? - 13 - Shell Confidential

APPENDIX 5.HSE MS ASSESSMENT

For details of the assessment methodology see the SIEP HSE-MS
Self Assessment Questionnaire. The following assessment is based
on the evidence reviewed by the review team during the review.
HSE Management System Element SA Number of Findings
and Sub Elements Q
lev
el
S H M L Tot
al
1. Leadership and commitment
1 Visibility
2 Proactive in Target setting
3 Informed involvement
2. Policy and strategic objectives
4 Content
5 Dissemination
6 Strategic objectives (including
SD)
3. Organisation, responsibilities,
resources, standards and
documents
7 Roles and responsibilities
8 HSE Advisers
9 Resourcing
10 Competence assurance
11 Contractors
12 Communication
13 Documentation – HSE MS Manual
14 Documentation – HSE Case
4. Hazards and Effects
Management Process
15 Identification
16 Assessment
17 Controls and Ownership
18 Performance in maintaining
controls
19 Recovery
20 Recording
5. Planning and procedures
21 HSE Plan
22 Asset integrity
23 Procedures and work instructions
24 Contingency and external
planning
6. Implementation and monitoring
25 Performance Monitoring
26 Records
27 Non-compliance and corrective
action
28 Incident Reporting and follow-up
29 Change Control
7. Audit
30 Audit plan
31 Competency
32 Contractor
8. Management review
33 General
Overall average / total findings