Contractor Safety, Health and

Environmental Management System

BACK GROUND

BP Policy & Commitment

to Health, Safety and Environmental
Performance (HSE )
BP- Policy & Commitment
to HSE Performance
• Everybody who works for BP, anywhere is responsible for Getting HSE
Right.
• Good HSE Performance are critical to the success of our business.
• Our goals are simply stated - No Accidents, No harm to people, and
no damage to the environment.
• Continue drive down the environmental impact of our operations by
reducing waste, emissions and discharges.
• We will:
– Consult, listen and respond openly to our customers, employees,
neighbors, public interest groups and those who work with us.
– Work with others - our partners, suppliers, competitors and
regulators - to raise the standards of our industry.
– Openly report our performance, good and bad.
– Recognize those who contribute to improved HSE performance.
Getting HSE Right

What is GHSER?

It provides guidance to Managers

to focus on HSE needs , forecast &
allocate resources, set direction
& consistently deliver improved
HSE Performance.
 GHSER Elements
1 Leadership and Accountability
2 Risk Assessment
3 People, Training & Behaviours
4 Working with Contractors and Others
5 Facility Design & Construction
6 Operations & Maintenance
7 Management of Change
8 Information & Documentation
9 Customers and Products
10 Community and Stakeholders Awareness
11 Crisis and Emergency Management
12 Incident Investigation and Analysis
13 Assessment, Assurance & Improvement
Element 1
Leadership and Accountability
• Two-way communication between leaders and
employees, contractors and others
• Integrated expectations into business planning
with clear goals and objectives
• Established roles and responsibilities with
performance measurements
• Documented HSE management systems
implemented and supported
• Promotion of sharing of Lessons Learned
• Positive HSE behaviours reinforced and
rewarded
 Element 4
Working with Contractors and Others

• Evaluation, selection and retention criteria for contractors,

suppliers and others
• Hazards and risks of contractor and procurement activities and
interfaces identified and managed
• Performance and deliverables defined and monitored with
assurance of HSE and technical compliance
• Purchased products and services verified as compliant with
national and international HSE standards
• Joint venture and alliance partners HSE systems meet
compliance, are aligned with BP and satisfy expectations and
targets
Element 3 - People, Training
and Behaviours

• HSE sound behaviours by employees and contractors

• HSE roles and responsibilities with individual performance
targets
• Qualified, competent and physically/mentally fit personnel,
a skilled and trained workforce
• Health hazards identified and risks managed
• Wellness, Alcohol and Drug programs
• Orientation and induction training for new or transferred
employees and contractors
Element 13 - Assessment,
Assurance and Improvement
• HSE performance indicators established, communicated and
understood
• Workforce involved in periodic self-assessments
• Reviews of performance indicators determine management
system changes needed
• System for improving HSE behaviours thru observations
• Documented risk-based audit program with documented
objective and systematic audits
• Findings prioritised, tracked and used for improvements
• Review of management system by Business Unit leadership
• Performance data and assurance provided to CEO
Introduction to CSMS

What is CSMS ?
Contractor Safety, Health
& Environmental
Management Systems
CSMS Structure

New
NewProjects
Contracts
Qualification Phase: Select A Qualified Contractor
Qualification

Risk Assessment
Pre-Qualification
Selection CSMS

Contract Award
Contract Data Bank
Implementation Field Implementation
Contract Implementation
Phase
Phase
: Ensure
: Ensure
Field
Field
Safe
Safe
Work
Work

Pre Job Activity Work In Progress Final Evaluation

CSMS Structure

Contracted Work

Risk Assessment
No Pre Job Activity

Contract Implementation Phase

Required?

No Yes
Qualification Phase

Pre Qualification
Required? Pre Job Activity
Contract Award Feedback
Yes
No Mechanisms
Pre Qualification
Work In Progress
Required?
Yes
Selection No Work In Progress
Required?

Yes Final Evaluation

Selection

Data Bank
 RISK
ASSESSMENT
Objective

Risk Assessment is a must in CSMS

All jobs shall be assessed and categorized

into one of Risk Level Category:

L (Low) M (Medium) or H (High)

Risk Assessment

ASSESSED RISK OF WORK

PHASE
LOW MEDIUM HIGH
RISK ASSESSMENT REQUIRED REQUIRED REQUIRED
PRE-QUALIFICTAION DISCRETIONARY DISCRETIONARY REQUIRED
SELECTION DISCRETIONARY DISCRETIONARY REQUIRED
PRE-JOB ACTIVITY DISCRETIONARY REQUIRED REQUIRED
WORK-IN PROGRESS DISCRETIONARY REQUIRED REQUIRED
FINAL EVALUATION REQUIRED REQUIRED REQUIRED
How to Assess?
HSE Risks to PEOPLE, ASSET,
ENVIRONMENT and REPUTATION

• Nature of the work • Potential exposure to hazards for all

• Work Location
• Materials/equipment used
• Potential for exposure to
work site hazards
personnel
• Simultaneous work by different contractors
• Work duration
• Potential incident consequences
• Contractor experiences
• Exposure to negative publicity
 Overall
Common Contract Types No. Work Type Relative
Risk

and Its Associated Risks

Level
1 Drilling and associated work: cementing mud services, logging, H
well velocity survey.
2 Hot work activities: welding, hot tapping, cutting, sandblasting
in well sites and process unit areas H
3 Well services and work-over activities H

4 Sea and air transportation services H

5 Fabrication and construction jobs H

6 Mechanical, electrical and instrumentation repairs H

7 Vessel and separator cleaning H

8 Marine diving services, water blasting H

9 Testing, inspection and re-certification H

10 EPC contracts H

11 Technical, administration support: engineering, environmental

studies, technical consultancy, training (unless located at well L
sites and process units), labor supply.
12 Catering services for offshore operation M

13 Pipeline maintenance, leak repairs H

14 General services work not in well sites or in the process units:

housing maintenance, photocopy services, office and equipment L
repairs, etc.
15 Seismic surveys H

16 Warehouse rental or services H

17 Land transportation H
Risk Assessment Process
Risk Refer to Table 2, 3 or use form
Identification CSMS/RA/01 for determining
the risk level

Complete the Risk

Assessment Form
(CSMS/RA/02)

No HSE Endorsement by Line

TL’s approval Verification Managers/Team Leaders
Required?
Yes
No Yes
Approved?
Verify the RA

Prepare CRF
Attach the
Yes
Agreed?
filled RA form
No

Proceed to the Next Step

Risk Assessment
• Mandatory gate to pass before going to the
next contract process
• Attached RA document to CRF
• Respective TL as the “gate key” and approver
 PRE-
QUALIFICATION
Objective

First Screen to allow only

safe candidates follow
tender
Team Evaluation
• Cross Function Team
• Table Top Evaluation
• Verification
• Telephone
• Interview
• Visit

• Conclusion
Questionnaires
1. Leadership and Commitment
2. Policy and Strategic Objectives
3. Organization, Responsibility, Resources, Standards
and Documentation
4. Hazards and Effect Management
5. Planning and Procedures
6. Implementation and Performance Monitoring
7. Audit and Review
8. Emergency Response Procedure
9. HSE Management – Additional Features
Pre-Qualification (cont’d..)

• Establish a validity period for PQ result

• Requirement to set up a cross function team
• Respective TL as the “gate key” and reviewer
• Provide standard format to record “table top
evaluation” result
• Revised Pre-Qualification Process can be
referred to Figure 2
Pre-Qualification Process
Review &
Clarification by BPI

No Mgmt No Disq
Risk Pass? Approval
Assessment
Yes
Verification and
Verification and audit audit process
No PQ process (if required) (recommended)
Required?

Yes
Meet BPI No Mgmt Could BPI No
help fill Disq
Yes Criteria? Approval
Listed in
the gaps?
CSMS On-
line? Yes Yes
No
Candidates’ complete CSMS PQ Conditional
questionnaires Acceptance
Put Candidates
into bidders list
(database)
SELECTION
Objective

Selected Contractor should be

best in:
 HSE
 Technical
 Commercial
SITB Documents:

• HSE Plan
• Risk Assessment as per SOW
• Interface Plan
• Gap Identification and Closure
Plan
What is an HSE Plan...

• It is an execution plan relating to

performance of the works within the
context of how HSE will be managed and
executed.
• It clearly focuses on the contract specific
risks, rather than generic HSE issues.
• It is NOT just a high level document, but
also a working level document.
HSE Plan
1. Leadership and commitment
2. Policy and strategic objectives
3. Organization, responsibilities, resources,
standards and documentation
4. Evaluation and risk management
5. Planning and procedures
6. Implementation and performance
monitoring
7. Auditing and review
Exhibit H: Health, Safety
and Environment

1. Company’s Commitment to HSE

Performance
2. Contractor’s HSE Plan
3. CSMS Requirement
4. HSE Specification Requirement
5. HSE Performance Indicator
CSMS Distribution of Responsibility

Risk Assessment Pre-Qualification Selection

BP End User (Contract
SCM & End User SCM & End User
Indonesia Initiator)
Prepare the Submit Bid
Contractor None
administrative Documents

Pre-Job Activity Work-In Progress Final Evaluation

BP End User together
Reviewer (End User) End User initiate
Indonesia with contractor
End User together Review together with
Contractor Preparation
with contractor Contractor
PRE-JOB
ACTIVITY
Objective

To open First Communication

between BPI and Contractor
among fieldwork level

Pre-Job Activity is not equal to

Pre-Job Safety Meeting
Process
• Pre-Mobilization
• Kick-Off Meeting
• HSE Site Orientation
• Inspection and Audit

• Mobilization
• Local kick-off meeting(s) (including HSE Site
Orientation and Inspection & Audit)
• Mobilization of contractor staff and equipment
Kick-off Meeting

• Requirement for TL’s or his/her official designated person to

attend Kick-off meeting and to conduct inspection & audit
prior to mobilization.

• Provide guidance on Kick-off meeting attendants:

• BPI TL or his/her official designated person
• Contractor’s Top Management with decision authority
• Supervisory level from both BPI and Contractor who will
involve in the work.
Kick-off Meeting Topics
• HSE policy statement, basic HSE rules.
• Confirmation on HSE Plan
• Interface Plan
• Develop mutually agreed KPI
• Review Risk Assessment
• Contractor’s HSE Resources and Work plan
• Assurance on the crisis and emergency procedure
• Accident and incident reporting and analysis
• Confirmation on people’s competence and training requirements
• Review of work permit, associated hazard and JSA
• Contractor’s HSE performance
• Assurance on closing gap/findings
• Pre job inspection and audit requirement
 VISIO CORPORATION

PJA Process Contract Award

$

Kick Off Meeting

To align:
HSE Plan, Interface Plan
Risk Assessment, Work Permit
Resources and Work Plan
Worksite Orientation
Inspection and Audit Plan
Emergency Procedures
Accident and Incident procedures

Communication,
Inspection and Audit

No
Issue
Completed

Yes

Mobilization

Job Execution
 PJA CHECKLIST

I. Work Plan
II. Potential Hazards
III. ERP
IV. Pre-job Safety Meeting
V. Site Orientation
VI. Finalized all HSE
Requirements
VII. HSE Training
VIII.Management Commitment
WORK-IN
PROGRESS
Objective

Assure that the work performed is

conducted according to the agreed upon
HSE Plan, and that additional HSE needs,
identified during the work, are properly
addressed.
Activities
• Team Leader HSE Focus Visits
• Competence Assurance
• Inspection, HSE Auditing and
Interim Evaluations
• HSE Plan
• HSE Meetings
• HSE Promotion
• Supervisory and Employee
HSE Communication
• Emergency Drills and Exercises
• Accident, Incident Investigation/Reporting
Team Leader HSE Visits

• Meeting with site management and BPI

representatives
• Meeting to communicate management
expectations
• Audit activities
Competence Assurance

• Competence
• Induction
• Training
• Completion of all agreed-upon
HSE training
• Availability of HSE documents
Work-In Progress

• Mandatory requirement for TL to conduct HSE

focus visit program during contract
implementation.

• Include “Gap Closure” item as one of item need

to be monitored and evaluated as part of HSE
Plan Implementation.
 Start up

WIP Process Team Leader

HSE Visits

Competence Assurance
Inspection, HSE Auditing and
Interim Evaluation
HSE Plan Implementation

Interim Evaluation Report

No

Yes Job Yes No

Completed? Corrective Action
Taken?
Final Disciplinary
Evaluation Action
 FINAL
EVALUATION
Objective

Joint evaluation of the

contractor’s and BPI’s HSE
performance and to provide
feedback
Process
• HSE Contractual Obligation
• Pre-Job Activity Report
• Interim Evaluation Reports
• Follow up on Conditional
Acceptance
Final Evaluation

• The Final Evaluation should be done once the

work completed along with Company
Acceptance

• Put “KPI’s” as one of consideration in

conducting final evaluation.
Process
• Feedback for future knowledge
and learning
• The result will be an input to
and reflected in CPM
• Completed at the end of a job
or at the expiration of a contract
S u m m a r iz e F in a l
E v a lu a t io n R e p o r t
D is c u s s f in a l r e s u lt
w it h c o n t r a c t o r a n d
in p u t in t o t h e
d a ta b a s e
O b t a in e le c t r o n ic
a p p r o v a ls f r o m A s s e t /
L in e M a n a g e r a n d
D U M /T L
I s s u e r e p r im a n d o r
a p p r e c ia t io n le t t e r s f o r
w o r k b e lo w o r o v e r
e x p e c t a t io n s
I n p u t in t o C S M S
d a ta b a n k
CSMS Process “Gate Key”
Risk Pre- Selection Pre-Job Work-In Final
Assessment Qualification Activity Progress Evaluation

DELIV ERABLES

• Risk • Pre-Qualification Form • HSE Plan, and • Pre-Job Activity • Safety Inspection • Final Evaluation
Assessment to CSM S/PQ/02 findings from Form CSM S/PJA/05 Checklist form to be
be attached on inspection or audit HSE Plan;JSA; attached on the
• Result of table top • Safety Program
the CRF prior to process to be contract closed-out
evaluation and inspection • KPI Checklist
TL’s approval process included in bid form
package • Kick-off M OM • Interim Evaluation
• No contract • Pre-Qualification Form • No final payment
Checklist
w ill be • Selection Form • Work can only be to be made and
CSM S/PQ/03: Contractor
proceeded HSE M anagement CSM S/SL/04 commenced after all • No partial payment to contract database
w ithout Risk the above documents the contractor to be updated w ithout
System Evaluation
Assessment approved. made w ithout the above the above
complete documents document

Process & Quality Assurance by Respective HSE & SCM Support

DELIVERY ACCOUNTABILITY

Respective Respective Respective Respective Respective Respective

TL TL TL TL TL TL