M-1 8/14/2015 ???? HSE MS Audit ??? 2001 SIEP EP-HSE

M-1 04/19/23

???? HSE MS Audit???? HSE MS Audit

??? 2001??? 2001

SIEP EP-HSE

M-2 04/19/23

AgendaAgenda

Team introductionTeam introduction Background Background Terms of Reference for the AuditTerms of Reference for the Audit Audit methodology Audit methodology Reporting Reporting ScheduleSchedule

M-3 04/19/23

Team MembersTeam Members

???????? SIEP SIEP EP-HSE (Audit EP-HSE (Audit Leader)Leader)???????? SIEP SIEP EP-HSE (Audit EP-HSE (Audit Leader)Leader)

M-4 04/19/23

Group HSE PolicyGroup HSE Policy

has a systematic approach to HSE management, designed to ensure compliance has a systematic approach to HSE management, designed to ensure compliance with the law and to achieve continuous performance improvement;with the law and to achieve continuous performance improvement;

sets targets for improvement and measures, appraises and reports on sets targets for improvement and measures, appraises and reports on performance;performance;

requires contractors to manage HSE in line with this policy;requires contractors to manage HSE in line with this policy;

requires joint ventures under its operational control to apply this policy, and uses requires joint ventures under its operational control to apply this policy, and uses its influence to promote it in its other ventures;its influence to promote it in its other ventures;

includes HSE performance in the appraisal of all staff and rewards accordingly.includes HSE performance in the appraisal of all staff and rewards accordingly.

Every Shell company:Every Shell company:

M-5 04/19/23

HSE PerformanceHSE Performance

“There must always be a gap There must always be a gap between … aspirations and between … aspirations and performance … But a gap performance … But a gap between policy and between policy and performance is unacceptable”performance is unacceptable”

Phil Watts - Shell EP HSE Conference 22 September 1997

M-6 04/19/23

Terms of ReferenceTerms of Reference ObjectiveObjective

To appraise the quality and completeness of the HSE To appraise the quality and completeness of the HSE MS in ???? and the adequacy and effectiveness of its MS in ???? and the adequacy and effectiveness of its implementationimplementation

ScopeScopeHSE MS implementation activities for all ???? Bus, HSE MS implementation activities for all ???? Bus, and their contractors.and their contractors.Special attention will be given to:Special attention will be given to:• Adherence to Group and Company HSE policiesAdherence to Group and Company HSE policies

• Adherence to Group Minimum Environmental ExpectationsAdherence to Group Minimum Environmental Expectations

• Processes for the identification of HSE-related legislative Processes for the identification of HSE-related legislative requirements, their dissemination, and for confirming requirements, their dissemination, and for confirming adherence to themadherence to them

M-7 04/19/23

Audit scopeAudit scopeScope continuedScope continued• Identification of roles, responsibilities and competency

requirements for HSE critical activities

• Implementation of HSE training programmes to close competency gaps for those carrying out of HSE critical activities

• Effectiveness in HSE data and document management and HSE performance monitoring

• Availability and effectiveness procedures for the identification, assessment and control of all significant hazards and effects including the demonstration of ALARP

• Adequacy of emergency response and contingency plans

• Confirmation that findings from audits, inspections and incident investigations have been satisfactorily addressed

• Adequacy of the process for preparation and validation of the HSE Annual Letter submitted to the ExCom

M-8 04/19/23

StandardsStandards

Audit will be conducted in accordance with methodology Audit will be conducted in accordance with methodology in EP95 0130 (December 1999)in EP95 0130 (December 1999)

The Audit will be conducted against the following The Audit will be conducted against the following standards:standards:

Laws and regulations of ????Laws and regulations of ????

???? policies and procedures???? policies and procedures

EP 95-0000EP 95-0000The Audit may also include comments on any shortfall The Audit may also include comments on any shortfall in the above in relation to generally accepted Shell and in the above in relation to generally accepted Shell and industry standardsindustry standards

M-9 04/19/23

IDENTIFY

RECOVERCONTROL

ASSESS

HEMPHEMP

Leadership and Commitment

Policy and Strategic Objectives

Management Review

Corrective Action &

ImprovementAudit

Organisation, ResponsibilitiesResources, Standards & Doc.

Corrective Action &

Improvement

Monitoring

Planning & Procedures

Hazard and Effects Management

Implementation

Corrective Action

HSE Management System

Hazard and Effects Management Process

HEMPHEMP

HAZARD Undesirable event with

potential for harm or damage

Engineering activitiesMaintenance activitiesOperations activities

CONSEQUENCES

Harm to people and damage to assets

or environment

Events andCircumstances

BARRIERS

11 verification that structured risk assessment has been verification that structured risk assessment has been applied to the key (HSE) risk elements of the facility or applied to the key (HSE) risk elements of the facility or activityactivity

22 sample whether these risks have been appropriately sample whether these risks have been appropriately assessed and the correct controls have been assessed and the correct controls have been identifiedidentified

33 Sample whether these controls are adequately Sample whether these controls are adequately implemented and complied withimplemented and complied with

SIEP-led Audit FocusSIEP-led Audit Focus

M-12 04/19/23

Classification of FindingsClassification of FindingsEach Finding is categorised as follows:Each Finding is categorised as follows:

1.1. Category:Category: People (P); Assets (A); Environment (E); or Reputation (R)People (P); Assets (A); Environment (E); or Reputation (R)

2. Severity level (from Weakness Classification Matrix):2. Severity level (from Weakness Classification Matrix): Serious (S); High (H); Medium (M); or Low (L) Serious (S); High (H); Medium (M); or Low (L)

3. Each Finding is assigned to one HSE MS element3. Each Finding is assigned to one HSE MS element

4. A Finding is accompanied by the Significance and one or 4. A Finding is accompanied by the Significance and one or more recommendations to address the gapmore recommendations to address the gap

M-13 04/19/23

123

Weakness Classification Matrix Weakness Classification Matrix People Assets Environ-

mentRepu-tation

Severity

0

1

2

3

4

5

Noinjury

Slightinjury

Minorinjury

Majorinjury

Singlefatality

Multiplefatalities

Nodamage

Slightdamage

Minordamage

Localdamage

Majordamage

Extensivedamage

Noeffect

Noimpact

Slighteffect

Slightimpact

Minoreffect

Minorimpact

Localisedeffect

Consider-able

impact

Majoreffect

Nationalimpact

Inter-nationalimpact

Massiveeffect

Never heard of in

EP industry

A

LowLow

MediumMedium

HighHigh

Has occurred in EP industry

B

Has occurred inthe audited OU

C DHappens

several times a year in the audited OU

EHappens

several times a year in the

audited facility

High: Though not serious, essential to be brought to Management attention. Includes medium weaknesses as repeat from previous reports.

Low: No major HSE impact at process level, correction will assure greater effectiveness/efficiency in process concerned.

Serious: Exposes OU to a major extent in terms of achievement of corporate HSE objectives or results.

Medium: Could result in perceptible and undesirable effect on achievement of HSE objectives.

SeriousSerious

M-14 04/19/23

Audit AssessmentAudit Assessment

Level of concernLevel of concern: Specific: SpecificNo follow-up required by auditee’s function No follow-up required by auditee’s function head (IAC member)head (IAC member)

Level of concernLevel of concern: Overall scope for : Overall scope for enhancementenhancementIn addition to following up correction of any In addition to following up correction of any High or Medium weaknesses the function High or Medium weaknesses the function head should encourage general head should encourage general improvement in controls awarenessimprovement in controls awareness

GoodGood

FairFair

M-15 04/19/23

Audit AssessmentAudit Assessment

Level of concernLevel of concern: : Overall cause for concernOverall cause for concernIn addition to following up correction of In addition to following up correction of any Serious, High or Medium weaknesses any Serious, High or Medium weaknesses the function head should take affirmative the function head should take affirmative action to ensure that control standards in action to ensure that control standards in this area are raisedthis area are raised

Level of concernLevel of concern: : Overall cause for grave concernOverall cause for grave concernIn addition to following up correction of In addition to following up correction of any Serious, High or Medium weaknesses any Serious, High or Medium weaknesses the function head should satisfy the the function head should satisfy the senior management team concerning senior management team concerning affirmative action to raise control affirmative action to raise control standards in this areastandards in this area

UnsatisfactoryUnsatisfactoryPoorPoor

Unacceptable Unacceptable

M-16 04/19/23

Revised Audit OpinionRevised Audit Opinion

0 0 0/F - 0 0 My - 0 F F - 0 F F/My My 1-2 - - - 0 My - - >2 - - -

Key: F = few <20 My = many >40 Findings Most Favourable OpinionS H M H+M Unacc. Unsat. Fair Good

/ Poor

M-17 04/19/23

HSE MS Self Assessment QuestionnaireHSE MS Self Assessment Questionnaire

M-18 04/19/23

HSE-MS Sub Element HSE-MS Sub Element AssessmentAssessment

System sustained and supported by an System sustained and supported by an ongoing improvement process and essentially ongoing improvement process and essentially all elements satisfied.all elements satisfied.

System functioning and being verified, results System functioning and being verified, results being measured, key system procedures being measured, key system procedures documented.documented.

System is documented, approved, resourced System is documented, approved, resourced and being implemented with priority objectives and being implemented with priority objectives satisfied and the majority of objectives being satisfied and the majority of objectives being met.met.

System is under development and partially System is under development and partially implemented.implemented.

44

33

22

11

M-19 04/19/23

EP-HSE Audit Method EP-HSE Audit Method Audit of HSE MS, fully covering H, S and EAudit of HSE MS, fully covering H, S and E Sampling ProcessSampling Process Questionnaire basedQuestionnaire based

M-20 04/19/23

Structure of QuestionnairesStructure of Questionnaires

Subsidiary Subsidiary QuestionnaireQuestionnaire

FacilitiesFacilities


Start-UpStart-Up


DrillingDrilling


EnvironmentEnvironment


HealthHealth


FacilitiesFacilities


SeismicSeismic

Generic Questionnaire (Generic Questionnaire (common to all HSE Audits)common to all HSE Audits)

Leadership & CommitmentLeadership & Commitment Policy & Strategic ObjectivesPolicy & Strategic Objectives Organisation, Responsibilities, Resources, Contractor Management.Organisation, Responsibilities, Resources, Contractor Management. Communications, HSE-MS Documentation, Standards & Change ControlCommunications, HSE-MS Documentation, Standards & Change Control Hazards and Effects ManagementHazards and Effects Management Planning & ProceduresPlanning & Procedures Implementation & MonitoringImplementation & Monitoring Audit Audit Management ReviewManagement Review

M-21 04/19/23

EP-HSE Audit Method EP-HSE Audit Method

Focus on RiskFocus on Risk OU Staff involvedOU Staff involved Based on OU / Contractor standardsBased on OU / Contractor standards Bottom up ApproachBottom up Approach Significance & breadth of findings Significance & breadth of findings Assessment of the 33 HSE MS sub elements of Assessment of the 33 HSE MS sub elements of

the HSE MS Self Assessment Questionnaire the HSE MS Self Assessment Questionnaire (levels 1-4)(levels 1-4)

Follow up: OU responsibilityFollow up: OU responsibility

Audit of HSE MS, fully covering H, S and Audit of HSE MS, fully covering H, S and Sampling ProcessSampling Process Questionnaire basedQuestionnaire based

M-22 04/19/23

Audit ProcessAudit Process

• Terms of referenceTerms of reference• Audit programmeAudit programme• EP95-0130 EP95-0130

FamiliarisationFamiliarisation

Review & TestingReview & Testing

ReportingReporting

Site visit Interviews Test findings

Drafting EditingReport

Finalisation Agree findingsPresentFindings

StudyDocumentation

M-23 04/19/23

Auditors will:Auditors will: operate in pairs operate in pairs (sometimes three)(sometimes three) make an appointment to see youmake an appointment to see you

no surprise visitsno surprise visits

try to make it as easy as possibletry to make it as easy as possible be only interested in facts, not speculationbe only interested in facts, not speculation

(interested in your view in how to improve)(interested in your view in how to improve) possibly use a questionnaire in the interviewpossibly use a questionnaire in the interview ask open ended questions ask open ended questions

like “How ..”, “In what way…”like “How ..”, “In what way…”

interview a “vertical slice” of the organizationinterview a “vertical slice” of the organization look for the good as well as the less than adequatelook for the good as well as the less than adequate

HSE Audit OverviewHSE Audit Overview

M-26 04/19/23

Audit ScheduleAudit Schedule

M-27 04/19/23

End Opening BriefingEnd Opening Briefing

Documents

M-1 8/14/2015 ???? HSE MS Audit ??? 2001 SIEP EP-HSE