C2100000379 - Provision of OCTG and Sucker Rods Inspection Services

Petroleum Development Oman L.L.C.

Contract Number C2100000379
[Provision of OCTG and Sucker Rods Inspection Services
]

HSE Mode [2]

HSE Risk Rating [High]

Section C9

HSE Specification Minimum Requirements

for Mode 1 & 2 Medium-High Risk

(Revision 9.1 Sep 2023)

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Table of Contents

1. HSE Compliance 3

2. Contractor’s HSE Management System & Contract HSE Management Plan 3

3. Letter of Assurance (LoA) 3

4. HSE Personnel 3

5. Occupational Health & Public Health Surveillance 3

6. Environmental Surveillance 4

7. Asset Integrity Process Safety Management (AIPSM) 4

8. Road Transport Standards 4

9. Subcontractors Management 4

10. Risk Management 4

11. Competence and HSE Training 5

12. Commencement Certificate 5

13. Performance Monitoring and Reporting 5

14. Management of Change Procedure (MOC) 5

15. Workshops and Industrial Safety Specification 5

16. HSE & AIPSM Incidents 5

17. Behaviour Based Safety (BBS) 6

18. Life Saving Rules (LSR) 6

19. Emergency and Medical Response Plan (ERP/MRP) 6

20. Site Restoration 6

21. Project / Contract Close Out 6

22. HSE & AIPSM Non-Compliance Penalties 6

23. Additional Articles 6

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1. HSE Compliance
1.1. Contractor shall comply with all applicable laws and government rules, regulations and orders, and the
standards, procedures, specifications, instructions of the Company.
1.2. Where Company, at Company's sole discretion, agrees to consider approving Contractor HSE policies
and procedures in place of Company's, Contractor shall submit for Company Approval a bridging
document(s) detailing HSE MS elements, standards, procedures, specifications, etc. (example, refer to
IOGP 423 & IOGP 456 - derived from API 754).
1.3. A list of all Company HSE documents to be accessed through below website or through (Contract
Holder):
Documents : https://hsedocs.pdo.com.om/Pages/Home.aspx

2. Contractor’s HSE Management System & Contract HSE Management Plan

2.1. Contractor shall have a developed HSE Management System (HSE-MS) that is compatible with
Company’s HSE Management System as described in either (Health, Safety and Environment Code of
Practice) CP-122, ISO45001 or equivalent HSE Management System.
2.2. Contractor shall submit for Company approval a Contract HSE Management Plan (also referred to as
HSE Plan), specific to the Scope of Work (as detailed in Section C4), and in accordance with PR-1171
“Contract HSE Management” Appendix P. The HSE Management plan shall include specific sections on
Health and Environment.
2.3. Contractor shall submit for Company approval an annual Contract HSE Monitoring Plan in accordance
with PR-1171 Appendix I. The Plan shall be submitted no later than 15 th of January of each year.

3. Letter of Assurance (LoA)

3.1. Contractor Chief Executive Officer (CEO) or equivalent shall submit an HSE Letter of Assurance (LoA)
every year before 1st March to Company. Only one LoA per Contractor is required covering all
contracts with Company that are operational on 1st January of that year. Company shall issue the
format and submission details for the LoA annually.

4. HSE Personnel
4.1. The HSE qualification and competence requirements for all Contractor (and sub-contractor, if
applicable) HSE personnel shall be in accordance with Company document PR-1980 “HSE Competence
Assurance Framework”.
4.2. Contractor shall provide adequate HSE personnel to manage the scope as stated in Contract Sections
C4 and C6, if applicable.
4.3. Contractor shall as a minimum, provide one competent HSE Advisor per geographical area e.g. one in
Fahud, one in Nimr, etc.
4.4. Contractor shall provide 1 competent HSE Advisor per 50 personnel or part thereof (that is, between 1
and 50 people requires at least 1 HSE Advisor; 50 to 100 requires at least 2 HSE advisors). Where the
HSE Advisor is a working back-to-back arrangement then the quantity shall be 2 and 4 respectively.
4.5. With effect from 1 January 2022, all HSE personnel referred above shall be Omani nationals.

5. Occupational Health & Public Health Surveillance

5.1. Contractor shall comply as minimum with Company SP-1230 “HSE Specification – Medical Examination,
Treatment and Facilities”, SP-1231 “HSE – Occupational Health Risk Assessment Specification”, SP-
1232 “HSE Specification – Public Health”, SP-1237 “Management of Ionising Radiation” and SP-1170
“HSE Specification – Naturally Occurring Radioactive Materials (NORM)”.
5.2. Contractor shall adhere to fitness to work process as stipulated in SP-1230.

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6. Environmental Surveillance
6.1. Contractor shall comply as minimum Company SP-2194 “Specification for Environmental Management”.
6.2. Contractor shall develop a Greenhouse Gas and Energy Management Plan (GHGEM Plan) for Company
approval with the requirement of SP-2194 (Item 2 - Greenhouse Gas and Energy Management). A
Greenhouse Gas (GHG) and Energy Management baseline template is included into SP-2194.

7. Asset Integrity Process Safety Management (AIPSM)

7.1. Contractor shall comply, as a minimum, with Company SP-2062 “Specification for HSE Cases”
requirements and in particular all applicable Process Safety Fundamentals mentioned in the CP-237
“Petroleum Engineering Process Safety Code of Practice”, PR-2392 “Engineering Process Safety
Fundamentals”, PR-2393 “Well Process Safety Fundamental” and PR-2394 “Operational Process safety
Fundamentals Consequence Management”.
Where applicable, Contractor personnel shall comply with AIPSM competency requirements including
successful completion of “AIPSM Wave1”, “AISPM Wave2” training and Process Safety Fundamentals
(PSFs) training. Contractor personnel from top management to engineering & Supervisors level shall
complete “AIPSM Wave1”, “AIPSM Wave2” training & PSFs training. Contractor personnel at Technician
level shall complete PSFs training.
7.2. Contractor shall comply with AIPSM monitoring plan, to be submitted annually for Company approval.
The AIPSM monitoring plan can be part of HSE Monitoring Plan.
7.3. Contractor shall comply with applicable elements of SP-1190 “H2S and SO2 Management” series while
operating in a Sour/Critical Sour Facility or any of their associated zones, e.g. Emergency Planning
Zone, Well Test Flaring Zones, Red Zones etc.

8. Road Transport Standards

8.1. Contractor shall comply with Company SP-2000 “Road Safety Standard” and SP-2001 “Load Safety and
Restraining”.
8.2. Contractor shall submit to Company the IVMS credentials of all Contractor and (if applicable)
subcontractor vehicles utilised under the Contract, including call offs.
8.3. Contractor shall maintain and manage both drivers and vehicle records for a period of not less than 15
months (rolling) to include consequence management for drivers and maintenance records for vehicles
with regular checks to confirm compliance to SP-1157 “HSE Training” and SP-2000 required
certification.
8.4. Maximum load carrying capacity (from the manufacturers identification plate) to be recorded within the
Transport Management System (TMS) of all combinations and trailer sizes to combine with load
distribution and asset utilisation.
8.5. Contractor (and all subcontractors) shall abide by the regulatory requirements for using vehicles within
Company concession areas and refrain from using foreign vehicles (trucks with non-Omani registration
numbers) within Company’s concession areas.

9. Subcontractors Management
9.1. Contractor shall develop as appropriate HSE qualifications criteria, assessment and scoring for all
subcontractors in accordance with IOGP-423, latest version.
9.2. Contractor shall submit for Company approval all proposed Subcontractors to be employed.
9.3. Subcontractors’ reviews shall be carried out in accordance with PR-1171 Appendix F as a minimum.

10. Risk Management

10.1. Contractor shall submit for Company Approval a detailed Risk Management Plan and Risk Assessment
covering Health, Safety and Environment; demonstrating threats are controlled to As Low As
Reasonably Practicable (ALARP). The format for the risk assessment is available in PR-1171 Appendix
D.

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10.2. Contractor shall review and update the Risk Assessment on annual basis as minimum and or change in
an activity.

11. Competence and HSE Training

11.1. Contractor shall have HSE Competence Framework in accordance with Company PR-1980.
11.2. Contractor shall provide HSE training in accordance with SP-1157, and other required training to
support the Scope.
11.3. Contractor shall maintain a training matrix as PR-1171 Appendix O.

12. Commencement Certificate

12.1. Contractor shall not commence any Work or Services until Company has issued a Commencement
Certificate as per PR-1171 Appendix G.

13. Performance Monitoring and Reporting

13.1. Contractor shall monitor, track and report HSE & AIPSM performance as per the agreed Contract HSE
Management Plan aligned with PR-1171 Appendices I, P and Q.
13.2. Contractor shall submit for company approval gap closure plan for gaps identified during HSE capability
assessment (Banding) and/or HSE performance assessment process. All identified pre and post award
gaps shall be closed within the agreed timeline.
13.3. Contractor shall submit the ‘HSE Monthly Returns’ not later than 1600 hrs on the 5th day of the
following month in a format acceptable to Company, as per PR-1171 Appendix H.
13.4. Contractor shall submit to the Company a monthly report (as shall be agreed in the HSE
plan/monitoring plan) including, but not limited to, status of action items from audits, incident
investigations, observations. This should be submitted not later than 1600 hrs on the 5th day of the
following month.

14. Management of Change Procedure (MOC)

14.1. Contractor shall submit for Company approval MOC framework in accordance with the CP-206
“Management of Change Code of Practice”.
14.2. Contractor shall comply with the level 2 audit requirements set in PR-2345 “Management of Change in
Production Operations”.

15. Workshops and Industrial Safety Specification

15.1. Contractor shall comply with SP-1256 “Workshops and Industrial Safety Specification including offices &
Laboratories,”.

16. HSE & AIPSM Incidents

16.1. Contractor shall report and investigate all HSE & AIPSM incidents in accordance with the requirements
of SP-1418 “Incident Investigation, Reporting and Learning”.
16.2. Contractor Shall have a framework / system to capture & implement (where applicable) Learning from
Incidents (LFI) coming from internal and or external to include but not limited to:
16.2.1. Action plan, register and mitigations for all LFI updates.
16.2.2. Assurance process to demonstrate LFI is embedded within Contractor organization and similar/repeated
incidents shall not occur.
16.2.3. LFI status to be discussed in Contractor engagement sessions and shown on dashboard.
16.2.4. The review of risk assessment to ensure LFI is embedded within it.
16.2.5. Staff are trained and competent to use the LFI framework/system to include assigning a staff to act as
LFI coordinator / Focal Point.

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16.2.6. Contractor to share any LFI with the Company.

16.3. Contractor shall report all work injuries and occupational diseases within 24 hours of the event to all
concerned authorities in accordance with Oman Safety and Occupational Health Procedures as per the
Ministerial Decision No 286/2008 including amendments and relevant Articles.

17. Behaviour Based Safety (BBS)

17.1. Contractor shall implement a Behaviour Based Safety (BBS) Programme including incentives in
accordance with SP-2415.
17.2. Contractor shall submit the BBS Programme to Company BBS team for approval in accordance with SP-
2415.
17.3. At the sole discretion of Company, Company may offer its BBS programme “IHTIMAM” to Contractor
either at cost or free of cost. If an agreement is reached to use IHTIMAM then articles 16.1 and 16.2
shall no longer be applicable. Where IHTIMAM is offered free of cost to contractor, Company reserves
the rights to amend, update or revoke the agreement.

18. Life Saving Rules (LSR)

18.1. Contractor shall as a minimum implement Company Life Saving Rules (PR-1171 Appendix L), and the
associated consequence management system (Section C5). Contractor may adopt additional LSR and
consequences in accordance with Contractor’s own HSE Management System requirements.

19. Emergency and Medical Response Plan (ERP/MRP)

19.1. Contractor shall have an Emergency Response Procedure in accordance with Company PR-1065
“Emergency Response Document Part II”.
19.2. Contractor shall have a Medical Emergency Response Procedure in accordance with Company PR-1243
“Emergency Procedure Part III, Contingency Plans Volume 13 Medical Emergencies”.
19.3. Contractor shall report all emergencies via Company Emergency Number 2467 5555.

20. Site Restoration

20.1. Upon Completion of the Project, Work or Services, Contractor shall restore the Site, including any
premises thereon.
20.2. Contractor shall submit for approval a Site Restoration Certificate as per PR-1171 Appendix K.
20.3. Where applicable, Contractor shall ensure completion of Work according to well location custodian
transfer form to Company using the format specified in (Well Activity Co-ordination & Control
Procedure) PR-1098.

21. Project / Contract Close Out

21.1. Project / Contract close out shall be completed and reported in accordance with PR-1171 Appendix M.

22. HSE & AIPSM Non-Compliance Penalties

22.1. In the event on non-Compliance with the above HSE & AIPSM articles obligations by Contractor, a
default and/or penalty as described in Section C5 shall be applied. An HSE default sample is in PR-1171
Appendix J.

23. Additional Articles

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