Procedimiento Variance

Shell Venezuela S.A.
PROCEDURE
C02.01.05-04-PR01
PROCEDURE FOR VARIANCE, CHANGE
CONTROL & NON-COMPLIANCE REPORTING
THIS DOCUMENT SUPPORTS THE FOLLOWING PROCESSES:

ASS, MANAGE ASSETS
ACT, MANAGE ACTIVITIES
09, DESIGN, CONSTRUCT, MODIFY OR ABANDON WELL
12, DESIGN, CONSTRUCT, MODIFY OR ABANDON FACILITIES
71, OPERATE WELLS & FACILTIES
72, MAINTAIN FACILITIES
73, MAINTAIN WELLS
December 2004
Document Owner: General Manager

Document Custodian: Operations Manager
Document Executor: Head of Functional Asset / Activity Management
This page is left intentionally blank.
PROCEDURE FOR VARIANCE, CHANGE CONTROL AND NON-COMPLIANCE REPORTING
CONTENTS
Distribution List iii
Revision Status iii
List of Abbreviations iv
Glossary of Terms v
1. INTRODUCTION 1
1.1 Objectives 1
1.2 Scope 1
1.3 References 1
1.4 Records 2
2. RESPONSIBILITIES 2
3. PROCEDURE 2
3.1 Definition of Terms 2
3.2 Non-Compliance Reporting Procedure 3
3.3 Variance Procedure 4
3.3.1 Venezuelan Statutory Requirements 4
3.3.2 SVSA Policies, Standards and Procedures 6
3.3.3 Operational and Maintenance Routine and Non-routine Overrides 7
3.4 Asset / Project Change Control Procedure 8
3.4.1 Who Can Raise an Asset / Project Change Request? 8
3.4.2 How is an Asset / Project Change Request Approved? 8
3.4.3 Where is an Asset / Project Change Recorded? 9
3.4.4 Submission of an Asset Change Request Form 9
3.4.4.1 Assessment of Asset Change Requests 10
3.4.5 Submission of a Project Change Request Form 14
3.4.5.1 Assessment of Project Change Requests 14
3.4.6 Execution and Review of Asset / Project Change Requests 14
3.4.7 Summary of the Asset / Project Change Control Process 15
ATTACHMENT 1 PLANNED VARIANCE REPORT FORM 16
ATTACHMENT 2 ASSET CHANGE REQUEST FORM 18
ATTACHMENT 3 PROJECT CHANGE REQUEST FORM 19
APPENDIX A PROPOSAL FOR AMENDMENT 20
WEB PUBLICATION FORM 21
This document is one of a series of Business Controls adopted by Shell Venezuela S.A. as part of
the SVSA Corporate Management System.
Shell Venezuela S.A. Procedure
October 2004 i
Any printed copy different than the CID hard copy is an "Uncontrolled Copy”– Check web-based version for any revisions
Printed Date 07/01/2005
Comment and feedback from users of this document is encouraged, by means of the Proposal for
Modification situated at the back of this document, in order that it may be updated as appropriate
to reflect current requirements.
For details of the current revision status of all documents, a summary of intermediate updates
published since the last revision, and information on how to comment on this module, please refer
to the ACIS-CID system.
Copyright
Copyright  2004, Shell Venezuela S.A.
This document is the property of Shell Venezuela S.A. Circulation is restricted to
SVSA and its designated associates, contractors and consultants. It must not be
copied or used for any purpose other than for which it is supplied, without the express
written authority of SVSA.
Except where provided for purposes of contractual requirements, SVSA disclaims any
responsibility or liability for any use or misuse of the document by any person and
makes no warranty as to the accuracy or suitability of the information to any third
party.
Symbols:
denotes a reference document

October 2004 ii
Distribution List
Copy English Spanish User Location

Number
0. P P Centre for Information Torre Claret
& Documentation
P: Hard copy (paper) distribution

Electronic distribution: via SVSA web
This document is available on the SVSA web site at the following address:
http://svsa.americas.shell.com/
Revision Status
Version Date of Next Change Description Prep Sign App Sign

Rev. Rev
1 Feb Feb First Issue Head of Funct. General
2001 2003 Asset / Activity Manager
Mgmt
Technical
Manager
2 Dec Dec Update Issue Head of Funct. General

2004 2006 Asset / Activity Manager
Mgmt
Operations
Manager
On receipt of this document/revision, or notification of update via the intranet, please destroy all
previous and now obsolete copies.
This document is reviewed as a minimum requirement every two years, according to the review
schedule, in the event of changes to SVSA operations or user requirements.

October 2004 iii
List of Abbreviations
ACIS Assets Control Information System
ALARP As Low As Reasonably Practicable
ANSI American National Standards Institute
API American Petroleum Institute
ASME American Society of Mechanical Engineers (Standards)
ASTM American Society of Testing & Materials
AWS American Welding Society
BSI British Standards Institute
CEN Comité Européen de Normalisation
CENELEC Comité Européen de Normalisation Electronique
CID Centro de Información y Documentación
CMS Corporate Management System
COVENIN Comité Venezolano de Marcas Industriales
CCR Central Control Room
CRO Control Room Operator
DCS Distributed Control System
EP or E&P Exploration & Production
EPBM Exploration & Production Business Model
ESD Emergency Shut Down
HSSE Health, Safety, Security and Environment
IEC International Electrotechnical Commission
IEE Institute of Electrical Engineers
IT Information Technology
IP Institute of Petroleum
MOPO Manual of Permitted Operations
MOS Maintenance override system
MPP Main Production Platform
NACE National Association of Corrosion Engineers
NFPA National Fire Prevention Association
PDVSA Petroleos de Venezuela S.A.
SIEP Shell International Exploration and Production
SVSA Shell Venezuela S.A.
TDR Technical Deviation Request
TOF Technical Operations Forum
UW Urdaneta West

October 2004 iv
Glossary of Terms
Activity What the Company does.

Activity The designated person tasked with responsibility to manage the execution of an
Executor activity.
Asset Anything that has value to the Company. An asset is owned at a Corporate level by
SVSA.
Asset Custodian Co-ordinates and manages all aspects of the execution of activities on designated
assets, on behalf of the Asset Holder.
Asset Holder The role to which single point accountability has been accorded for all aspects of
management, including budgetary control, of a clearly defined asset or group of
assets, over part of or all of its life cycle in order to achieve corporate objectives.
Asset Owner All assets are owned at a Corporate level by SVSA.
Corporate The highest management level within SVSA.
Discipline A specific, technical field of work, e.g. marine engineering. The ability of a person to
work in a discipline is formally recognised by certification from a professional
association e.g. Institute of Marine Engineers.
Key Drawing One of a series of baseline drawings for the Asset. It is a mandatory requirement to
As Build key drawings following the execution of any asset change or modification
Organisation How the Company is structured.
Override A barrier that prevents a trip from resulting in the designed executive action.
PEP (Project The intention of a PEP is to describe how the project is to be executed, the control
Execution Plan) and execution interfaces and the QA/QC and HSSE plans for the Work.
Plan A documented schedule of the actions required to achieve objectives and attain
performance criteria / targets. A plan should always designate responsibility and
define the time scale for implementation. Plans are updated using feedback
generated by reviews. All plans should be approved at the appropriate level.
Procedure A procedure gives guidance for the execution of an activity, in accordance with SVSA
Policy.
Process How the Company does things.
Process Owner A Process Owner has the delegated responsibility for the efficiency, effectiveness,
appraisal and improvement of a process. Process Owners delegate accountability for
the execution and control of certain activities to one or more Activity Executors.
PEP (Project The intention of a PEP is to describe how the project is to be executed, the control
Execution Plan) and execution interfaces and the QA/QC and HSSE plans for the Work.
Standard An established control, or series of related controls, set in compliance with policy
requirements, describing the minimum mandatory requirements to be adhered to
throughout Company operations. A standard may be internal or external.
SVSA Facility Any Company offshore or onshore production facility, pipeline, tank farm, storage
area, well location, office or similar facility.

October 2004 v
1. INTRODUCTION
Shell Venezuela S.A operates a variety of functional assets on behalf of PDVSA. Operation of
these assets is governed by statutory requirements and an established set of policies, standards,
procedures, guidelines and plans. On occasion, it may be necessary to:
• vary from established, documented practices and statutory requirements
• make changes to projects in order to improve design integrity
• make changes to assets in order to ensure continued safe and efficient operation (technical
integrity).
This document defines the procedures to be followed in the event of:
• an unplanned non-compliance with Venezuelan statutory requirements and/or SVSA/Shell
Group policy and/or SVSA standards and procedures.
• a planned variance from Venezuelan statutory requirements and/or an SVSA policy, standard
or procedure, where this is considered to be warranted.
• a planned change to projects/activities or assets (during PIN, CTR or execution stage), where
this is considered to be warranted and can be justified on technical, HSSE and/or cost
grounds.
All changes to SVSA policies, standards, procedures or guidelines follow the procedure
documented in:
C02.01.04-02-ST01 Document Management System Manual
The process by which plans are changed / updated is described in:
C02.01.06-00-ST01 Corporate Management System Manual (section 6.1.3.4)
C01.03.00-00-GU01 Asset / Activity Planning & Management
Throughout this document the term “facilities” denotes SVSA functional assets whilst
projects/activities cover both natural and functional assets.
1.1 Objectives
The objective of this document is to ensure that an auditable process is in place to:
• report and record all non-compliances with established Venezuelan statutory requirements,
SVSA/Shell Group policy and SVSA standards / procedures.
• report, review, evaluate and record all variances from Venezuelan statutory requirements or
an SVSA policy, standard or procedure
• report, review, evaluate and record all changes to projects/activities or assets (incl.
Cancellation of projects/activities) and to the technical integrity of functional assets.
1.2 Scope
This procedure applies to all approved projects, modification activities and operations on SVSA
functional assets, but does not cover changes to documents or plans. There are no exemptions
from this procedure.
1.3 References
Technical Standards are defined in:
P12.00.00-02-ST01 SVSA Surface Facilities Technical Standards, DEPS and Codes of
Practice

October 2004 Page 1 of 29
The Technical Authorities and the Technical Operations Forum is defined in the:
C02.01.03-03-PR01 Technical Operations Authorities Procedure
1.4 Records
This document contains the following records:
Code Name
Document Code/R1 Name of Record (e.g. Proposal for Amendment)
Document Code/R2 Name of Record #2, etc.
2. RESPONSIBILITIES
The Head of Functional Asset / Activity Management is the executor of this document and as
such is responsible for defining the variance, change control and non-compliance reporting
procedure and ensuring that it is followed. The Operations Manager, Development Manager and
the General Manager are responsible for verifying establishment and monitoring implementation
of the procedure.
3. PROCEDURE
3.1 Definition of Terms
A deviation is a general term that may be sub-divided into three general types:
• Non-compliances
• Variances
• Changes
These deviations are defined in the following table.
Deviation Type Nature Definition
• Non- Unplanned An unplanned deviation from:
compliance • Venezuelan statutory requirement (legislation)
• SVSA/Shell Group policy
• SVSA standard or procedure.
• Variance Planned A planned deviation from:
• Venezuelan statutory requirement (legislation)
• SVSA/Shell Group policy
• SVSA standard or procedure.
• Change Planned A reported, approved deviation that results in a change to an
asset. A change may apply to:
• an existing Asset, or
• a Project / Activity.
Table 1: Deviation Types / Definitions

Where a technical, HSSE and/or cost justification exists and neither HSSE nor technical integrity
will be compromised, a deviation from accepted policies, standards or procedures and/or a
change to an asset / project may be acceptable.
Unplanned non-compliance with, and planned variance from, Venezuelan statutory requirements
should be avoided. Where possible, waivers or special dispensations should be obtained from
Venezuelan authorities in advance of any planned variance.

3.2 Non-Compliance Reporting Procedure

Types of non-compliance are listed in the following table, together with established systems and
procedures for their reporting and management. By its unplanned nature, a non-compliance
cannot be identified and reported in advance.
Non-Compliance Reporting Systems and Procedures
An accident, incident • Omnisafe system for reporting accidents / incidents / near misses
or near miss
• S02.01.05-03-PR02 Incident Notification & Reporting Procedure
• S02.01.05-01-PR03 Incident Investigation Procedure
• S02.01.06-04-GU01 HSE-MS Manual (Part 1, section 2.6.4)
• S01.01.01-01-PR01 External Communication of HSSE Issues
An unsafe act or • STOP system
condition
An agreed audit / • Omnisafe / DAKODA systems
review action
• C02.03.03-03-PR01 Procedure for the Follow-up of Pending
(from audits, reviews, Actions / Reviews
remedial work plans)
• C02.03.03-03-PR02 Procedure for Internal Audits and
Management Reviews
A complaint • S01.01.01-01-PR01 External Communication of HSSE Issues
(via telephone, letter, • In the case of administrative act, procedures or penalties, legal
email, visit, meeting, would follow up, but this is not necessarily under any particular
administrative act or reporting system or procedure
procedure)
Table 2: Types of Non-Compliance and Associated Reporting Systems / Procedures

The primary means of reporting non-compliance is via electronic Incident Notification Forms using
the Omnisafe system. It is mandatory to report any unplanned non-compliance with Venezuelan
statutory requirements via this method (e.g. when environmental emissions limits are exceeded).
Established procedures are in place for the reporting of non-compliance with Venezuelan
statutory requirements to relevant authorities:
S02.01.06-04-GU01 HSE-MS Manual (Part 1, section 2.6.4)
S01.01.01-01-PR01 External Communication of HSSE Issues
The degree and level of investigation of any non-compliance depends on the potential severity of
the non-compliance, as specified in:
S02.01.06-04-GU01 HSE-MS Manual (Part 1, section 2.6.4)

3.3 Variance Procedure

Three distinct types of variance may be defined:
• planned variance from Venezuelan statutory requirements
• planned variance from SVSA or Shell Group policy, standards and/or procedures.
• planned Operational and Maintenance Routine and Non-routine Overrides
Variances do not result in a change to established legislation, policies, standards or procedures
and are temporary in nature. All planned variances must be documented on a Planned Variance
Report (PVR) Form (refer to Attachment 1).
The variance procedure to be followed is dependent on the type of variance (with legislation or
with policy, standards / procedures), as described in the following sections.
3.3.1 Venezuelan Statutory Requirements

The level of approval required for any planned variance with Venezuelan statutory requirements
depends on the potential level of risk / severity of the variance (figure 1). The level is initially
determined by the originator of the Planned Variance Report, in conjunction with the appropriate
Technical Authority. Technical Authorities are specified in:
The level of approval is confirmed by the party responsible for approving / rejecting the PVR as
specified in the table below.
Risk associated with Consequence severity Approval required by
variance from Venezuelan (refer to Risk Assessment
statutory requirements Matrix below)
High 4, 5* General Manager
Medium 2, 3 Operations Manager or Development Manager
Low 0, 1 VP of Legal
Note: *The SVSA Management Committee, may, at its own discretion, seek advice from the Group regarding any
planned variance from Statutory Venezuelan requirements with a potential consequence of severity level 4 or above.
CONSEQUENCES INCREASING LIKELIHOOD

A B C D E
Never Heard of in Incident Happens Happens
SEVERITY
REPUTATION
ENVIRONMENT
heard of in industry has several several

PEOPLE
ASSETS
industry occurred times per times per

in our year in year in
company company location
0 No health No damage No effect No impact

effect/injury
1 Slight health Slight Slight effect Slight
effect/injury damage impact
2 Minor health Minor Minor effect Limited
effect/injury damage impact
3 Major health Localised Localised Consid’able
effect/injury damage effect impact
4 PTD or 1 to Major Major effect National
3 fatalities damage impact
5 Multiple Extensive Massive International
fatalities damage effect impact
Figure 1: Risk Assessment Matrix

Any planned variance from Venezuelan statutory requirements must be discussed with the
relevant authorities, via established communication channels.
C02.01.06-00-ST01 Corporate Management System Manual (section 6.1.1, table 7)
It is the responsibility of the VP of Legal to maintain records of all planned variances with
legislation (whether rejected or approved). Variances with relevant legislation are recorded in the
following documen (SVSA Legislation Record):
C01.02.01-03-ST01 Registro de Legislación
Venezuelan statutory requirements for environmental discharge limits are documented in:
S02.01.05-03-ST06 Legal Environmental Standards
Any planned variance (including those from statutory discharge limits) must follow the procedure
detailed in the following flowchart.
Originator / Management Operations VP of Legal Party

Activity Committee Manager or Responsible for
Executor Development Comms with
Manager Authorities
A1 Identify planned variance

with legislation
A2 Collate information,
record on PVR
A3 Determine consequence
severity in conjunction
with Technical Authority
A4 Consequence severity Yes
4 or 5?
A5 Review PVR, No
agree actions
A6 Consequence severity Yes

2 or 3?
A7 Review PVR, No
agree actions
A8 Review PVR
agree actions
A9 Discuss planned
variance with authorities,
agree actions
Reject
A10 PVR rejected / approved
Approve
A11 Maintain register of
rejected PVRs & reasons
for rejection
A12 Update approved PVR

with any agreed actions
A13 Review / sign-off

approved PVR

approved PVRs
Figure 2: Process Flowchart for Planned Variance from Venezuelan Statutory Requirements

3.3.2 SVSA Policies, Standards and Procedures

Where it is considered that an established policy, standard or procedure can not be complied with
on the grounds of content, HSSE, cost or operational requirements, then there is an
OBLIGATION to seek an appropriate FORMAL VARIANCE from that requirement. Additional
controls must be put in place to mitigate for risks induced by variances from a policy, standard or
procedure, such that overall risk levels remain demonstrably ALARP. A standard is defined as an
internal or external mandatory requirement and includes industry codes of practice and technical
specifications. Document definitions are described in:
C02.01.04-02-ST01 Document Management System Manual
A separate PVR is required for each document for which a variance is requested.
Any Technical Variance from standards, codes and/or specifications is reviewed, evaluated and
approved / rejected by the Technical Operations Forum (TOF), in conjunction with Document
Owners / Holders / Custodians / Executors if considered appropriate. The TOF always includes
the appropriate Technical Authorities.
Non-technical variances which have no impact on technical integrity do not require review by a
Technical Authority and are referred directly by the Activity Executor to the Document Owner /
Holder / Custodian / Executor for review, approval and endorsement.
The variance process is summarised in the following figure.
CID Document Document Originator / Technical Asset Holder

Executor Owner / Activity Operations / Custodian
Holder / Executor Forum (TOF)
Custodian
A1 Identify variance
Submit PVR
A3 Technical or Non-Technical Technical

non-technical variance?
A4 Approve / reject non- Reject
technical PVR
A5 Maintain register of Approve
rejected non-technical
PVRs
A6 Distribute signed hard

copies of non-technical
PVRs to CID for
inclusion in web
based document
A7 Maintain register
of approved non-
technical PVRs
A8 Approve / reject / hold Reject Hold

technical PVR
Approve
rejected technicalPVRs
& reasons for rejection
A10 Endorse technical PVR

approved technicalPVRs
A12 Distribute signed hard
copies of technicalPVRs
to recipients of controlled
document

Figure 3: Process Flowchart for Planned Variance from SVSA Policies, Standards & Procedures
3.3.3 Operational and Maintenance Routine and Non-routine Overrides
Routine overrides
Overrides for preventive and corrective maintenance:
Overrides on ESD and FGS associated instrumentation for performing preventive and corrective
maintenance tasks. These overrides should have a duration of less than 24 hrs, unless
equipment or plant is shutdown and isolated following the permit to work procedure.
Maintenance Technicians will carry out a risk analysis to evaluate which element(s) must be
overridden to execute preventive and corrective routine and to assess if remaining mitigation
barriers in place are adequate to ensure that risks involved during job execution are kept ALARP.
Maintenance Lead technicians will reflect outcome of risk analysis on toolbox minute.
Maintenance Lead technicians will reflect outcome of risk analysis on toolbox minute. Required
inhibitions shall be reflected in the permit to work. Overrides for preventive maintenances shall be
included in the maintenance routines.
Overrides for routinely operations:
Overrides on ESD and FGS detection associated instrumentation for performing operational
tasks, i.e. crude/gas sampling for laboratory analysis, plant/equipment start up and shutdown.
These overrides should be included in operational procedures, supported by a risk analysis to
ensure safe conditions during job execution.
Non-routine overrides
If the duration of an override on ESD and FGS associated instrumentation/equipment on a live
process exceeds 24 hrs it shall be considered to be non-routine, unless this condition is covered
by the MOPO and recommended actions have been executed. An example is: Temporarily
operating a well having a surface safety valve overridden, awaiting for spare parts or specialised
technical assistance.
Authorisation
For routine overrides on MPP, field facilities and Ule terminal the level of authorisation is the
Asset Executor or his delegate.
For non-routine overrides, risks must be evaluated using the Risk Assessment Matrix (Fig 1). If
ranked risks are in the blue area (Continuous Improvement), the level of authorisation will be the
Asset Executor or his delegate. If evaluated risk is in the yellow area (Demonstrate ALARP), the
Asset Executor or his delegate can only authorise a 24-hour exemption until a Variance is
authorised for continuous operation. If ranked risk is in the red area (Intolerable) the evaluated
override shall not be set.
Overrides are logged on a white board in the MPP CCR, updated on a daily basis by the CRO
and listed in the Technical Integrity Weekly Report.

3.4 Asset / Project Change Control Procedure

The change control procedure described in this section applies to technical changes to
projects/activities or assets (plant / equipment / wells) only. The change procedure itself is
essentially the same for both types of change, although different submissions are required. This
procedure does not cover like for like replacements to maintain operational integrity. These are
managed by the Head of Surface Operations (Process Owner of Process 72: Maintain Facilities)
and the Head of Well Services and Well Engineering (Process Owner of Process 73: Maintain
Wells), respectively.
Type of Definition Submission
Technical
Change
Project Change Any (technical) change to a project for Project Change Request – PCR (refer to
which a PIN / CTR / AFE is in place. section 3.4.5)
Changes (incl. technical) to SINs are not
required to follow this procedure as they
have not yet been formalised / approved
as a project.
Asset Change Any technical change to existing Asset Change Request – ACR (refer to
equipment / plant, which does not fall section 3.4.4)
under the scope of an existing project.
All changes that may affect HSE, Quality, Technical Integrity or Economic Value (budget,
schedule, production, reserves) of a project/activity must be controlled. Examples of
project/activities or asset changes include, but are not limited to the following:
• Any changes to the project/activity basis for design (incl. changes to project/activity
economics)
• Any change to the original (asset) design intent
• Any change to the physical configuration of structures, systems or equipment
• The physical substitution of any item of equipment by an alternative that is not identical to the
original (i.e. non-like for like replacement)
• Permanent removal from service of any system or item of equipment
• The temporary or permanent addition of any system or item of equipment
• Addition / removal of well / well control equipment
• Any alteration to material specification
• Any alteration to hazardous area classification boundaries
• Any change to a P&ID
3.4.1 Who Can Raise an Asset / Project Change Request?

All Activity Owners and (Lead) Executors have a responsibility to seek the lowest cost solution,
acceptable in terms of both technical and HSSE requirements, when executing their work.
However, in practice, all personnel may raise an ACR. A PCR is however to be raised by the
(Lead) Activity Executor.
3.4.2 How is an Asset / Project Change Request Approved?

All Asset / Project Change Requests must be supported by the appropriate SVSA Technical
Authority and approved by the relevant Asset Holder.
The formal approval process for an asset / project change is as follows:
• Project/Activity Owner and/or Activity (Lead) Executor: raises an ACR / PCR with a
corresponding justification. The justification must address any associated cost elements and
HSSE related issues. . It is the duty of the Activity Owner / (Lead) Executor to ensure

involvement of all relevant parties such that all impacts on HSE, Technical Integrity, Quality
and Economic Value of the project/activity are considered.
• Technical Operations Forum (TOF): assesses and endorses / rejects the ACR / PCR based
on the foregoing justification and a technical / HSSE review. The TOF ensures that neither
technical nor HSE integrity is compromised and reviews the cost element associated with the
technical change.
• Operations Manager, Development Manager: approves Project Change Requests endorsed
by the TOF. Note; Asset Change Request requires approval from Operations Manager only
Note: Non-technical changes which have no impact on technical integrity do not require review
by a Technical Authority and the TOF. These are referred directly by the Activity Executor, via the
line, to the Asset Custodian / Holder for review, approval and endorsement.
3.4.3 Where is an Asset / Project Change Recorded?

For assets (plant / equipment / wells):
• In the Technical Change Register for the asset, maintained by the Asset Holder
• On the affected key drawing or well diagram
For projects:
• In the Project/Activity File, maintained by the Lead Activity Executor (Process Owner, Process
09 and 12)
• On the affected key drawing (as-built, P&IDs) or well diagram
3.4.4 Submission of an Asset Change Request Form

All requests for asset changes are submitted on an Asset Change Request Form and must
contain the following information.
Title A precise indication of the system and the nature of the Asset Change (e.g.
Modification to Condensate Pump P120)
Originator The name and reference indicator of the Activity Executor requesting the Asset
Change.
Location An ACR is unique to an installation. If the same change is required on another
installation, a separate ACR must be submitted.
System Specify the process system affected by the ACR and any associated equipment Tag
Number(s).
Description of A concise description of the current status of the system, the problem being
existing system experienced and its applicability to other installations. The description is supported
& problem by data / records as appropriate and any other relevant information.
Proposed Asset Describe the Asset Change in detail, together with anticipated benefits to be derived
Change from the change. Include any relevant data or records in support of the change.
Indicate the duration of the change, if temporary.
Category Classify the Asset Change according to one of the following categories: HSSE,
Productivity / Cost (short or medium / long term), Welfare.
Costs Provide an estimate of the annual cost of the problem and its frequency of
occurrence. Provide a breakdown of all costs associated with the Asset Change and
any cost benefits to be derived.
Drawings Reference all relevant key drawings (including drawing no.) and attach sketches.
Technical The name, reference indicator & signature of the Technical Authority supporting the

Authority ACR.
An example of an Asset Change Request Form is given in Attachment 2.
3.4.4.1 Assessment of Asset Change Requests

The Technical Operations Forum assesses Asset Change Requests at scheduled monthly
meetings. Assessment involves ranking the Asset Change Request against five criteria: HSSE,
Production, Operability, Cost and Resources. The ranking process for each of these criteria is
described below.
(Note: This process applies to ACR assessments only).
HSSE
HSSE ranking utilises a modified Risk Assessment Matrix. Two separate risk assessments are
performed. The first assessment is based on the current situation (“before”); the second is based
on the anticipated situation, assuming the Asset Change is actioned (“after”).
Targets Frequency of Occurrence
A B C D E
People Assets Environment Reputation Rarely Yearly Monthly Weekly Daily
(less than (once (once (once a (once a
once in 2 every 1-2 every few week) day or
years) years) months) more)
0 A0 / B0 / C0 / D0 / E0 /
No injury No damage No effect No impact 1.75 3.50 5.25 7.00 8.75
1 Slight damage Slight effect Slight impact A1 / B1 / C1 / D1 / E1 /

Slight injury No disruption Contained on Public 3.50 5.25 7.00 8.75 10.50
FAC & MTC Costs site awareness
<USD10,000 No concern
2 Minor damage Minor effect Limited impact A2 / B2 / C2 / D2 / E2 /
Minor injury Brief disruption Not contained Local public / 5.25 7.00 8.75 10.50 14.00
Consequence
(RWC & LTI) Costs No permanent media attention

<USD100,000 damage
3 Major injury Local damage Localised effect Considerable A3 / B3 / C3 / D3 / E3 /
(LTI with Partial shutdown Breach of impact 7.00 8.75 10.50 14.00 19.25
permanent partial Costs statutory limit Regional public /
disability) <USD500,000 Many complaints media attention
4 Major damage, >2 Major effect National impact A4 / B4 / C4 / D4 / E4 /
Single fatality weeks shutdown Severe damage National public / 8.75 10.50 14.00 19.25 26.25
Costs Extension media attention
<USD1,000,000 restoration
5 Extensive damage, Massive effect International A5 / B5 / C5 / D5 / E5 /
Multiple fatalities Loss of operation Large scale impact 10.50 14.00 19.25 26.25 35.00
Costs damage International
<USD10,000,000 media attention
Figure 4: HSSE Risk Assessment Matrix

In each case, an assessment is made by selecting the most appropriate consequence and its
associated potential frequency of occurrence, as applicable to each of the listed targets. Each risk
assessment is related to a numerical value (e.g. numerical value for C3 is 10.50). The “after”
assessment is deducted from the “before” assessment in order to determine the HSSE ranking
for the Asset Change. HSSE ranking may be negative (increased risk) or positive (decreased
risk). The rankings for all applicable targets are summed to obtain the overall HSSE ranking.
Example:
Target
People Assets Environment Reputation
“Before” risk D4 (19.25) N/a C3 (10.50) N/a
assessment:
“After” risk B2 (7.00) N/a A1 (3.50) N/a
assessment:
HSSE ranking 19.25 - 7.00 = 12.25 N/a 10.50 – 3.50 = 7.00 N/a
Overall HSSE 12.25 + 0.00 + 7.00 + 0.00 = 19.25
Ranking

Production and Operability

Production and operability benefits of the Asset Change are obtained from the Production /
Operability Matrix shown below.
Potential Benefits Frequency
(Likelihood of potential benefit being realised)
A B C D
Production Operability Rarely Yearly Monthly Weekly
(less than (once (once (once a
once in 2 every 1-2 every few week)
years) years) months)
Manpower Materials /
Equipment
1 >100bbl/d Partial position < USD10,000 A1 B1 C1 D1
eliminated
2 >250bbl/d One position < USD50,000 A2 B2 C2 D2

eliminated
3 >500bbl/d Several < USD100,000 A3 B3 C3 D3

positions
eliminated
Figure 5: Production / Operability Assessment Matrix
Production Operability
A1 7.00 A1 1.60
A2 8.75 A2 2.00
A3 10.50 A3 2.40
B1 8.75 B1 2.00
B2 10.50 B2 2.40
B3 14.00 B3 3.20
C1 10.50 C1 2.40
C2 14.00 C2 3.20
C3 19.25 C3 4.40
D1 14.00 D1 3.20
D2 19.25 D2 4.40
D3 26.25 D3 6.00
Example:
Potential Benefits
Production Operability
Manpower Materials / Equipment
Risk assessment: C3 B1 A2
Benefit 19.25 2.00 2.00
Overall Production & 19.25 + 2.00 + 2.00 = 23.25
Operability Ranking

Cost and Resource

The total cost of an Asset Change is derived from an assessment of both Costs and Resources,
as set out in the following table.
Potential Cost of Asset Change
Cost Cost Ranking Resource Resource
Ranking
None 0.01 None 0.01
< USD1000 0.75 Existing 0.35
resources &
clear solution
< USD5000 2.25 Extra resources 1.05
or unclear
solution
< USD10,000 4.5 Extra resources 2.10
& unclear
solution
< USD50,000 7.5 Minor project 3.50
< USD100,000 15.00 Major project 7.00
Example:
Potential Cost of Asset Change
Cost Resource
< USD10,000 Minor project
Ranking 4.50 3.50
Overall Cost & 4.5 + 3.50 = 8.00
Resource Ranking
Overall Ranking
The overall ranking for an Asset Change Request is determined by the Technical Operation
Forum, based on an evaluation of individual rankings for HSSE, Production & Availability and
Cost & Resource. The overall Cost Benefit ratio is determined as follows.
Example:
Benefit / Cost
HSSE Ranking 19.25
Production & 23.25
Operability Ranking
Cost & Resource 8.00
Ranking
Cost Benefit Ratio (19.25 + 23.25) / 8.00
= 5.31
All Asset Change Requests with a cost benefit ratio of less than 3 are carefully examined to
determine if the expenditure is justified.

Final Assessment (Relative Assessment of Different Categories of Asset Change)

Each Asset Change Request (and associated overall ranking) is classified according to one of
three categories: HSSE, Productivity / Cost, Welfare. These three categories have different levels
of importance in the assessment process. The Productivity / Cost category is further sub-divided
into Short or Medium / Long Term, depending on the time period within which the benefit from the
Asset / Project Change is expected to be realised. The relative levels of HSSE and Welfare are
fixed. Productivity / Cost has a sliding level, that is set each year by the Technical Operations
Forum, based on Business Plan objectives and targets. Short Term and Medium / Long Term
Productivity / Cost can be adjusted independently. This enables different types of Asset / Project
Changes to be ranked directly against one another, as illustrated in the following figure.
Final
Assessment Fixed Adjustable
High
High
High
Productivity / Cost: Medium / Long Term

HSSE
High
High Productivity / Cost: Short Term
Low
Low
Welfare
Low
Low
Low
Figure 6: Final Assessment Process

In the example given above, an Asset Change Request which has a high Cost / Benefit ranking in
the Welfare category has less significance than a request that has a medium Cost / Benefit
ranking for HSSE or a medium to medium / high Cost / Benefit for Productivity / Cost. A final
assessment / ranking for all categories is made by reading off the scale on the left-hand side. All
final assessments are made by the Technical Operations Forum. Ranking against a single
parameter enables prioritisation of requests and assists in the planning process.

3.4.5 Submission of a Project Change Request Form

All requests for project changes are submitted on a Project Change Request Form and must
contain the following information.
Project Scope / A precise indication of the scope and specification of the Project Change (e.g.
Specification Increase pipe diameter from 4” to 6”, pipe section XYZ).
Originator The name, reference indicator & signature of the (Lead) Activity Executor requesting
the Project Change.
Project Specify the project name. A PCR is unique to a project. If the same change is
required for another project, a separate PCR must be submitted.
PIN / CTR / AFE Specify the PIN / CTR / AFE associated with the project.
System Specify the process system affected by the PCR & any associated equipment Tag
Number(s).
Proposed Project Describe the Project Change in detail, together with anticipated benefits to be
Change derived from the change. Include any relevant data or records in support of the
change.
Costs / Provide an estimate of any changes to existing project costs and/or resource
Resources requirements (+/-). Describe any cost / resource benefits to be derived & justify any
increase in costs / resources.
Impact on Indicate any impact on the project schedule as a result of the Project Change.
Schedule
HSSE Describe any potential HSSE implications associated with the Project Change & any
Implications studies required to investigate / qualify / quantify these implications (e.g. HAZID).
Drawings Reference all relevant key drawings (including drawing no.) & attach sketches.
Technical The name, reference indicator & signature of the Technical Authority supporting the
Authority PCR.
An example of a Project Change Request Form is given in Attachment 3.
3.4.5.1 Assessment of Project Change Requests

The Technical Operations Forum assesses PCRs, in accordance with SVSA screening criteria, at
scheduled monthly meetings. The assessment process covers HSSE implications, potential cost
benefits or increases in project cost, impact on schedule and resource requirements. Guidelines
and tools for screening criteria are described in:
EP2001-5500 Opportunity and Project Management Guide
3.4.6 Execution and Review of Asset / Project Change Requests

Asset Change Requests
All Asset Change Requests that are approved by the Technical Operations Forum and endorsed
by the respective Asset Holder are registered with the Asset Holder / Custodian (ACR Executor)
and are given a unique identification number. The Asset Holder/ Custodian designates an Activity
Executor to action the Asset Change Request and to compile an associated Workpack.
The Asset Change Request is signed off by the Asset Custodian (on behalf of the Asset Holder)
once the job is satisfactorily completed.
Project Change Requests
All Project Change Requests that are endorsed by the Technical Operations Forum on the basis
of impact on HSE and Technical Integrity and approved by the Operations Manager and
Development Manager (PCR only) on the basis of impact to project economic value are
forwarded to the respective Project Manager (PCR Executor) and are given a unique
identification number. The Project Manager ensures that the appropriate Project Leader / Activity
Executor actions the Project Change Request and incorporates any necessary changes in
existing Workpacks. The Project Change Request is signed off by the Project Manager once the
job is satisfactorily completed.
Review
All completed Asset / Project Changes are reviewed at the following Technical Operations Forum
meeting to verify that initial objectives have been satisfied within the defined cost / resource
parameters.
3.4.7 Summary of the Asset / Project Change Control Process
P
Ori Op A A
Te C CuC
gin Ex er C Ex Ho R: M
Ac
at ec
ch Fo
ati R /ec R: sto an
lde Pr
tivi
or ut
nic ru
on P ut As dia ag
r / oje
ty or al m set n
/ s C or ct er
A1 Identify Asset / Project

Change
Submit ACR / PCR
No
A3 All information complete?
Yes
A4 Endorse / Reject / Hold Reject

Hold ACR / PCR
Endorse
rejected ACRs / PCRs &
reasons for rejection
OG, DG
approval
A6 Update ACR / PCR with

any agreed actions
A7 Make / update Design
A8 Compile / update
Workpack
A9 Execute ACR / PCR /

Workpack
A10 No
Work Completed?
Yes
No
A11 Drawings Update?
Yes
A12 Close Out ACR / PCR /

Workpack

approved ACRs / PCRs
Figure 7: Process Flowchart for Asset / Project Change Control

ATTACHMENT 1 PLANNED VARIANCE REPORT FORM
SHELL VENEZUELA S.A. PLANNED VARIANCE REPORT

REPORT No. (to be assigned by LPA / TOF / CID)
PART A – To be completed by originator of planned variance
Name of Originator: Reference Indicator: Location:
Type of planned variance:
Legislation (Go to Part B) Technical (Go to Part C) Non-Technical(Go to Part D)
Severity level: 0 1 2 3 4
5
Details of Planned Variance:
Signed: Date:
Supported by: Reference Indicator: Date:
Technical Authority
PART B – For Planned Variance with Legislation only (return form to LPA)
Comments / Agreed Actions / Reasons for rejection (delete as required):
Accepted Rejected
Signed: Reference Indicator: Date:
Management Committee /
Operations Manager /
Development Manager
Accepted Rejected
Responsible Party -
Stakeholder Communication
Comments / Agreed Actions/ Reasons for rejection (delete as required):
Accepted Rejected
VP of Legal

PART C – For Planned Technical Variance only (return form to TOF)

Document Title:
Code: Date Reviewed:
Approved Rejected
(send copy of form to Document Executor for
distribution)
TOF Chairman
Asset Holder / Custodian
PART D – For Planned Non-Technical Variance only (return form to CID)
Document Title:
Code: Date Reviewed:
Approved (send form to CID) Rejected (send form to CID)

Document Owner / Holder
Document Custodian
Document Executor

ATTACHMENT 2 ASSET CHANGE REQUEST FORM
SHELL VENEZUELA S.A. ASSET CHANGE REQUEST

REQUEST No. (to be assigned by TOF)
PART A – To be completed by originator of Asset Change Request
Asset Change Title:
Originator: Location: System:
Reference Indicator: Tag No:
Description of Existing System & Problem:
(Attach description to this form if required)

Proposed Asset Change:
Duration of Change (if temporary):

CATEGORY: COSTS:(attach detailed breakdown) DRAWINGS: (specify)
HSSE Annual
Productivity / Cost One off
Welfare Other Frequency (specify)
Signed: Date:
Technical Authority
PART B – To be completed by Technical Operations Forum
Date Reviewed:
HSSE Ranking: Production & Cost & Resource Cost Benefit Final
Operability Ranking: Ratio: Assessment:
Ranking:
Approved Rejected
Chairman TOF

ATTACHMENT 3 PROJECT CHANGE REQUEST FORM
SHELL VENEZUELA S.A. PROJECT CHANGE REQUEST

REQUEST No. (to be assigned by TOF)
PART A – To be completed by Originator of Project Change Request
Project Change / Scope / Specification:
Originator: Project: System:

Reference Indicator: PIN / CTR / AFE: Tag No:
Proposed Project Change:
(Attach description to this form if required)

Costs / Resources:
(Quantify / justify any changes. Attach detailed breakdown if required)

Impact on Schedule:
HSSE Implications:
Drawings: (specify)
Signed: Date:
Technical Authority
PART B – To be completed by Technical Operations Forum
Date Reviewed:
Approved Rejected
Chairman TOF

APPENDIX A PROPOSAL FOR AMENDMENT
PROPOSAL FOR AMENDMENT TO DOCUMENT:

Document Code: C02.01.05-04-PR01: Procedure for Variance, Change Control and Non-
Complaince Reporting
(Please photocopy and leave original in file)
To: Head Functional Asset and Activity Originator:

Management
Date:
From:
Copy:
Title: Procedure for Variance, Change Control Document No. C02.01.05-04-PR01
and Non-Complaince Reporting
Proposal:
Justification:
To: Operations Manager for comments:
From: Head Functional Asset and Activity Management
Date:
Comments/Action:
Signature of Head Functional Asset and Activity Management:

Additional comments from contributors:
Distribution to involved parties: Approvals:

General Manager:
Date:
Operations Manager:
Date:
Document Code/RX
Requests for amendments to the document should be directed to the Document Custodian, the
Operations Manager via the Document Executor, the Head Functional Asset and Activity
Management. All changes to the document require the approval of the General Manager, the
Document Owner.

The “Web Publication Form” is not part of the document, for this reason you have to removed the
format for signature and after you have to send it together with the document to the CID.
WEB PUBLICATION FORM
SHELL VENEZUELA S.A. WEB PUBLICATION FORM

Document Title: Procedure for Variance, Change Control and Non-Complaince Reporting
Document Code: C02.01.05-04-PR01
Version No.: 2 Date of Last Revision: March 01
Nature of Document
⌧ Non-Confidential (Go to Part A) Confidential (Go to Part B)
PART A
The above document has been approved for publication on the web by the following authorities:
Document Executor SFA
Document Custodian OG
Document Holder (polices only)
Document Owner GG
PART B
Specify Document Executor:
Specify Document Custodian:
Specify Document Owner:
PART C – To be completed by Web Custodian (Return form to Document Executor)
Non-Confidential document added to SVSA web-site
Confidential document details added to Table of Confidential Documents on SVSA web-site

C02.01.04-01-ST01/R2


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Shell Venezuela S.A.

THIS DOCUMENT SUPPORTS THE FOLLOWING PROCESSES:

Document Owner: General Manager

ATTACHMENT 1 PLANNED VARIANCE REPORT FORM 16

ATTACHMENT 2 ASSET CHANGE REQUEST FORM 18

ATTACHMENT 3 PROJECT CHANGE REQUEST FORM 19

APPENDIX A PROPOSAL FOR AMENDMENT 20

WEB PUBLICATION FORM 21

denotes a reference document

Shell Venezuela S.A. Procedure

Copy English Spanish User Location

P: Hard copy (paper) distribution

Version Date of Next Change Description Prep Sign App Sign

2 Dec Dec Update Issue Head of Funct. General

Shell Venezuela S.A. Procedure

Shell Venezuela S.A. Procedure

Activity What the Company does.

Shell Venezuela S.A. Procedure

Shell Venezuela S.A. Procedure

Table 1: Deviation Types / Definitions

Shell Venezuela S.A. Procedure

3.2 Non-Compliance Reporting Procedure

Table 2: Types of Non-Compliance and Associated Reporting Systems / Procedures

Shell Venezuela S.A. Procedure

3.3 Variance Procedure

3.3.1 Venezuelan Statutory Requirements

CONSEQUENCES INCREASING LIKELIHOOD

heard of in industry has several several

industry occurred times per times per

0 No health No damage No effect No impact

Figure 1: Risk Assessment Matrix

Shell Venezuela S.A. Procedure

Originator / Management Operations VP of Legal Party

A1 Identify planned variance

A6 Consequence severity Yes

A12 Update approved PVR

A13 Review / sign-off

A14 Maintain register of

Shell Venezuela S.A. Procedure

3.3.2 SVSA Policies, Standards and Procedures

CID Document Document Originator / Technical Asset Holder

A3 Technical or Non-Technical Technical

A6 Distribute signed hard

A8 Approve / reject / hold Reject Hold

A10 Endorse technical PVR

A11 Maintain register of

Shell Venezuela S.A. Procedure

3.3.3 Operational and Maintenance Routine and Non-routine Overrides

Shell Venezuela S.A. Procedure

3.4 Asset / Project Change Control Procedure

3.4.1 Who Can Raise an Asset / Project Change Request?

3.4.2 How is an Asset / Project Change Request Approved?

Shell Venezuela S.A. Procedure

3.4.3 Where is an Asset / Project Change Recorded?

3.4.4 Submission of an Asset Change Request Form

Shell Venezuela S.A. Procedure

3.4.4.1 Assessment of Asset Change Requests

1 Slight damage Slight effect Slight impact A1 / B1 / C1 / D1 / E1 /

(RWC & LTI) Costs No permanent media attention