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WINTERSHALL E&P MANAGEMENT SYSTEM APPENDIX TO GLOBAL-HSE-PR-020

Company HSE Requirements of Contract

COMPANY E&P Management System Documentation Standard Annex to GLOBAL-HSE-PR-020

HSE Requirements of Contract Issued December 2015

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Disclaimer:

These COMPANY HSE Requirements of CONTRACT are to be used for each CONTRACT in

conjunction with any local HSE Requirement specific to the WORK and may be tailored according

to OPCO specific needs and requirements.



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Table of Contents TERMS AND DEFINITIONS .......................................................................................................................... 5

LIST OF ATTACHMENTS ............................................................................................................................. 7

INTRODUTCION ............................................................................................................................................ 8

1 HSE COMPLIANCE .............................................................................................................................. 9 1.1 ACCESS TO HSE INFORMATION ............................................................................................. 10 1.2 HSE MANAGEMENT SYSTEM ................................................................................................... 10 1.3 HSE-MS INTERFACING ............................................................................................................. 11 1.4 HSE POLICY ............................................................................................................................... 11 1.5 TARGETS AND OBJECTIVES SETTING ................................................................................... 11 1.6 HSE RISK MANAGMENT ........................................................................................................... 12 1.7 SECURITY MANAGEMENT ....................................................................................................... 12 1.8 SUSTAINABILITY MANAGEMENT ............................................................................................ 13 1.9 ENVIRONMENTAL MANAGEMENT .......................................................................................... 13 1.10 HSE ORGANIZATION ................................................................................................................. 14 1.11 COMPETENCE ASSURANCE .................................................................................................... 15 1.12 BEHAVIOURAL SAFETY ............................................................................................................ 16 1.13 OCCUPATIONAL HEALTH AND WELFARE .............................................................................. 16 1.14 MEDICAL FITNESS TO WORK .................................................................................................. 16 1.15 WORKING TIME ......................................................................................................................... 17 1.16 MOBILISATION / WORK START-UP .......................................................................................... 17 1.17 HSE REPORTING ....................................................................................................................... 18 1.18 COMMUNICATIONS AND HSE MEETINGS .............................................................................. 20 1.19 MANAGEMENT OF SUB-CONTRACTOR .................................................................................. 20 1.20 HSE INCENTIVE ......................................................................................................................... 22 1.21 HSE NON CONFORMITIES ........................................................................................................ 22 1.22 EMERGENCY PREPAREDNESS AND RESPONSE ................................................................. 23 1.23 HSE INCIDENT MANAGEMENT ................................................................................................ 24 1.24 COMMUNICATION WITH THIRD PARTIES ............................................................................... 25 1.25 HSE AUDITS, REVIEWS AND INSPECTIONS ........................................................................... 25 1.26 HSE RECORDS .......................................................................................................................... 26 1.27 SUBSTANCES (AB)USE ............................................................................................................ 26

2 WORK SPECIFIC HSE REQUIREMENT ............................................................................................ 27 2.1 HSE CASE(S) AND STATUTORY HSE PLANS ......................................................................... 27 2.2 HSE ORGANISATION ................................................................................................................ 27 2.3 ROAD SAFETY ........................................................................................................................... 27 2.4 PERSONAL PROTECTIVE EQUIPMENT (PPE) ........................................................................ 28 2.5 EQUIPMENT ............................................................................................................................... 28



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2.6 HAZARDOUS ACTIVITIES AND SPECIAL COMPETENCIES ................................................... 28 2.7 PERMIT TO WORK ..................................................................................................................... 28 2.8 CHEMICALS ............................................................................................................................... 29 2.9 WASTE MANAGEMENT ............................................................................................................. 29 2.10 DANGEROUS GOODS ............................................................................................................... 30 2.11 HARMONISED OFFSHORE CHEMICAL NOTIFICATION FORMAT (HOCNF) ......................... 30 2.12 RADIOACTIVE SOURCES ......................................................................................................... 30



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Terms and Definitions

Term Definition

ALARP As low as reasonably practicable, in essence, making sure a risk has been reduced ALARP is about weighing the risk against the sacrifice (i.e. economical, logistic, operational, etc.) needed to further reduce it to an acceptable level.

Company Wintershall Holding GmbH

Company HSE Requirements

HSE requirements identified by the Company, which become integral part of the contract to be complied by Contractor and Sub-contractor during the execution of the Service.

Company Representative

Person appointed by Company as interface between Company and Contractor to maintain consistent HSE communication and complete information exchange between Company and Contractor.

Contractor One or several Tenderer(s) that has (have) been awarded the Service on behalf of the Company.

Emergency Emergencies are defined according to the following GLOBAL-HSE-PR-024 “Emergency Notification”

HSE historical database

A Collection of Contractor HSE information that is organized so that it can easily be accessed, managed, and updated. It is generally based on an electronic system / database accessible from several locations of the Company.

HSE incentive Rewards for employees and workers to encourage and promote good health and safety practices during the Service (i.e.: one-off prizes, monthly gift vouchers, moral incentive scheme, safety raffle, scheme for individuals or groups, monthly rewards i.e. a ‘safe group of the month’ award).

HSE milestone

Key event in the project lifecycle they serve as important checkpoints for evaluating project progress and performance against HSE (i.e.: obtain license to operate from Regulators, installation of welfare facilities at work location, submission of relevant HSE documentation to Company, etc.).

HSE MS The Company or Contractor structure, responsibilities, procedures and resources for implementing health, safety and environmental management.

Non-conformity

Deviation from a HSE regulation, procedure, requirement, specification and standard or from an HSE expectation. Can be “Major”, “Medium” or “Minor”.

HSE Plan A documented description of the means of achieving health, safety and environmental objectives specific to the Service required by the Company.

HSE Pre-qualification Questionnaire

A questionnaire requesting information from Contractor to determine whether they fulfil the HSE requirements necessary to be engaged by Company.

HSE re-qualification

The task of re-assessing Contractor past submissions provided in response to the HSE Pre-qualification Questionnaire.

Invitation to Tended (ITT)

A letter sent is generally sent from the Company to Contractor to be invited to tender for the Service. The letter contains a package of documents including HSE documents like: Scope of Work, Company HSE Requirements, request for HSE plan, etc.

Mode of Contracting

Company strategic decision on the mode, which specifies the responsibilities for managing HSE between Company and Contractor and/or alliance of Contractor.

Scope of Work A technical document describing in as detailed as possible the Service to be undertaken by Contractor (i.e. location, equipment, materials, time schedule,



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regulation, breakdown of the, deliverables, risk, etc.) This document constitutes the basis to identify the tasks for assessing risks specific to the work.

Service or Work

The Entirely of works, service, activities, operations, processes and/or supplies as set out in the Scope of Work Document, which, in the event of Award, Contractor will be required to carry out in accordance with the provision of the Contract.

Sub-Contractor Tenderer(s) that has (have) been awarded the Service on behalf of the Contractor.

Tender Evaluation Criteria

The criteria against which the Tenderer will be evaluated by Company when assessing their suitability for the Service.

Tender Strategy

Detailed plan on how Company approaches the market and evaluates Contractor to award the Service.

Weighting Factor

Certain aspects of a Service may be considered more critical and more important than others, and these shall be prioritize with higher weighting factor; consequently during the evaluation the total points awarded in response to certain parts of the Tenderers’ submissions can be given weighting to cause that part to have greater impact on the final evaluation score.

Waiver and Deviation Form

Respectively, a form used to apply and approve: • Voluntary renouncement from the process mentioned in Overview of the

process, and • Voluntary departure from the standard processes mentioned in Overview of

the process.



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LIST OF ATTACHMENTS

The COMPANY documents that have to be provided to CONTRACTOR and SUBCONTRACTOR

are:

a. HSE POLICY

b. HSE Responsibilities of Senior Management

c. Risk Management

d. Occupational Health and Medical Care

e. Environmental Impact Assessment

f. Security Management

g. Energy Management

h. Hazardous Substances Management

i. Permit to Work System

j. Emergency Response

k. Oil Spill Contingency Management

l. Incidents Reporting and Investigation

m. Handling of Radioactivity

n. Transportation of Dangerous Goods

o. Road Safety

p. Training and Competences

q. Personal Protective Equipment

r. Any other as required



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INTRODUTCION

COMPANY places utmost importance on management of health, safety, security and environment

(HSE) and requires CONTRACTOR and its SUBCONTRACTOR to actively subscribe and pursue

the highest Standards of HSE Performance.

CONTRACTOR shall perform the WORK in full compliance with this STANDARD, which is

relevant for the WORK, or subsequent revisions thereto for the duration of the CONTRACT and

any CONTRACT extensions. CONTRACTOR shall further implement routines, which shall ensure

that all PERSONNEL engaged by the CONTRACTOR and its SUBCONTRACTOR are fully aware

of the existence, content and expectations of this STANDARD and perform the WORK in

accordance with this STANDARD.

CONTRACTOR shall plan and run the activity in a pro-active manner that ensures that the WORK

can be performed without loss of life or harm to health, without damage to plant and/or

EQUIPMENT, without unplanned emissions or discharges to the environment.

CONTRACTOR’s HSE performance under the CONTRACT shall be measured against the

APPROVED HSE Program and the APPROVED HSE Activities.

If in COMPANY’s opinion, CONTRACTOR’s or SUBCONTRACTOR’s HSE performance under

the CONTRACT is unsatisfactory, CONTRACTOR shall at his own costs take immediate

corrective actions to ensure compliance with the requirements in the CONTRACT.



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1 HSE COMPLIANCE

a. CONTRACTOR HSE POLICY and procedures shall comply with Statutory Requirements

of the country where the WORK takes place.

b. CONTRACTOR is responsible for being duly informed on the updated Statutory

Requirements of the country where the WORK takes place.

c. CONTRACT shall comply with recommended international guidelines including

International Association of Oil and Gas Producers (IOPG), International Association of

Drilling CONTRACTOR (IADC), International Labour Organization and any other if

specified by COMPANY.

d. CONTRACTOR shall reduce risks ALARP, despite the availability of statutory

requirements.

e. CONTRACOR shall report immediately to COMPANY:

i. Any enforcement and/or any legal action taken against CONTRACT or

SUBCONTRACTOR; and

ii. Any complaint filed under HSE legislation against CONTRACTOR or

SUBCONTRACTOR while performing the WORK.

f. COMPANY reserves the right to verify CONTRACTOR Statutory HSE compliance.

g. CONTRACTOR’s HSE Policy and procedures shall comply with COMPANY E&P

Management System. COMPANY reserves the right to review CONTRACTOR’s HSE

Policies and procedures if required.

h. COMPANY will transmit CONTRACTOR the copy of the current HSE Policy and HSE

requirements relevant to the WORK before CONTRACT AWARD.

i. COMPANY may define milestones for CONTRACT payments in relation to HSE.

j. CONTRACTOR shall contact COMPANY REPRESENTATIVE in writing to communicate

any variation from COMPANY HSE Requirements. COMPANY will respond in writing in

order to accept or reject the variation as per the CONTRACT variation procedure.



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k. CONTRACTOR shall contact COMPANY REPRESENTATIVE in writing to submit

variation proposals to improve HSE, if any. COMPANY will respond in writing in order to

accept or reject the variation proposal.

1.1 ACCESS TO HSE INFORMATION

a. COMPANY will have access to any information concerning the management of HSE

including the possibility to perform visits, inspections, audits, etc. CONTRACTOR are

expected to cooperate with COMPANY in this regard and provide directly all information

upon request from COMPANY.

1.2 HSE MANAGEMENT SYSTEM

a. CONTRACTOR is responsible for the implementation of the HSE-Management System

(HSE-MS) during their WORK. CONTRACTOR shall make available the required

resources to implement effective protective measure. If this becomes impossible, at any

time during the WORK, COMPANY needs to be notified immediately to agree on the

best available solution.

b. CONTRACTOR shall have a fully documented and effectively implemented HSE

Management System.

c. The scope of CONTRACTOR’s HSE-MS shall cover all areas of the WORK, including

WORK to be performed by any SUBCONTRACTOR and all interfaces with COMPANY

and SUBCONTRACTOR.

d. CONTRACTOR HSE-MS may be subjected to review by COMPANY.

e. In the event CONTRACTOR’s HSE-MS is certified, it shall remain certified for the

duration of the CONTRACT. If the certificate is suspended, withdrawn or lapsed in any

other way, CONTRACTOR shall immediately notify COMPANY and proceed to rectify

the certification and requalify immediately.

f. COMPANY reserves the right to monitor through meetings, inspections, visits and audits

the effective implementation of CONTRACTOR HSE-MS.



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1.3 HSE-MS INTERFACING

a. CONTRACTOR shall, where relevant, identify and control interfaces between HSE-MS

of CONTRACTOR, COMPANY and other parties. HSE interfaces shall be consistent

with Statutory and COMPANY requirements.

b. CONTRACT HSE-MS Interface Document shall be developed and/or agreed by

COMPANY and CONTRACTOR prior to the commencement of mobilisation and/or

physical WORK commences.

c. Throughout the duration of the WORK, the HSE-MS interface document shall be

reviewed and updated at a frequency agreed by COMPANY and CONTRACTOR and in

the event, there is a significant intermediate change, which may affect interface

arrangements on the management of HSE, e.g. audit, incident investigation, etc.

1.4 HSE POLICY

a. CONTRACTOR shall have an HSE Policy, which is:

i. Documented and visibly endorsed by Senior and Top Management;

ii. Of a Standard comparable to COMPANY Policy and acceptable industry

Standards;

iii. Made available and known by all PERSONNEL; and

iv. Implemented and maintained at all levels in CONTRACTOR’s organisation.

1.5 TARGETS AND OBJECTIVES SETTING

a. CONTRACTOR’s HSE goal shall be an accident free workplace.

b. CONTRACTOR’s targets and objectives shall be focused on leading indicators and pro-

active efforts to reduce the likelihood and severity of incidents.

c. COMPANY reserves the right to review CONTRACTOR’s HSE Targets and Objectives

for the full performance of the WORK.



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1.6 HSE RISK MANAGMENT

d. CONTRACTOR shall define, develop, establish, implement and maintain a Risk

Management System for the identification, analysis, assessment, continuous tracking

and systematic control of threats and opportunities related to the WORK. Mitigating

actions towards the risks shall be identified with specified deadlines and responsible

person. CONTRACTOR shall ensure that CONTRACTOR and all SUBCONTRACTORS

comply with the requirements of COMPANY’s risk management requirements provide to

CONTRACTOR. Mitigating actions towards the risks shall be identified with specified

deadlines and responsible person and be made readily available to COMPANY upon

request

e. CONTRACTOR shall employ best practices and meet all legal and local requirements in

identifying, assessing and controlling HSE risks. These methods and the outcome shall

be documented.

f. CONTRACTOR shall reduce HSE risks as low as reasonably practicable and use best

available technology.

g. CONTRACTOR shall inform COMPANY immediately of any impossibility to reduce HSE

risks as required.

1.7 SECURITY MANAGEMENT

a. CONTRACTOR shall comply with the Statutory Requirements in terms of PERSONNEL

security and assets protection.

b. The CONTRACTOR shall be able to verify the identity of PERSONNEL who shall

perform WORK for the COMPANY in premises employed by the COMPANY. The

CONTRACTOR shall maintain routines for background check of hired PERSONNEL.

c. The CONTRACTOR shall maintain routines (procedures) that describes the security

organisation and responsibilities, defines requirements to physical, PERSONNEL,

information and IT security.

d. The CONTRACTOR shall maintain emergency response plans that include requirements

for handling security threats and routines.



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e. CONTRACTOR shall WORK in accordance with the principles and guidelines provided

in COMPANY Security requirements.

f. COMPANY reserves the right to modify or increase the security Standards depending on

the local security situation. CONTRACTOR are required to comply with these.

g. Unless otherwise agreed with COMPANY in writing, all security costs shall be at

CONTRACTOR’s cost including country evacuation.

1.8 SUSTAINABILITY MANAGEMENT

a. CONTRACTOR shall employ best practices to meet all the legal requirements to protect

social Standards and human rights or all PERSONNEL, including local populations and

communities.

b. CONTRACTOR shall ensure the fulfilment of the statutory requirements regarding

minimum wages, working hours, welfare facilities, discrimination and child labour.

c. CONTRACTOR shall comply with COMPANY Standards, made available, in terms of

social Standards and human rights.

d. CONTRACTOR shall employ best practices to reduce the usage of natural resources.

1.9 ENVIRONMENTAL MANAGEMENT

a. CONTRACTOR shall comply with statutory requirements, local regulation, international

directives, global environmental Standards and COMPANY’s Standards. Any discharge

shall be monitored and controlled accordingly.

b. CONTRACTOR shall have an environmental management system in place.

c. CONTRACTOR shall specify in the HSE plan or in a separate Environmental Plan

measures applied to avoid harm to the environment by minimizing climate impact,

energy consumption and energy costs, health and environmentally dangerous

chemicals, waste, resources, packing materials (e.g. by using used or recycled

materials).

d. CONTRACTOR shall apply energy-efficient and environmental friendly procedures and

technologies. CONTRACTOR shall implement a program for achieving energy efficiency

as part of their HSE Plan for the WORK.



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1.10 HSE ORGANIZATION

a. CONTRACTOR shall have an HSE organisation to provide fit-for-purpose HSE support

to plan, execute and monitor the WORK.

b. CONTRACTOR shall within his own organisation have available HSE PERSONNEL in

sufficient quantity and with professional skills necessary to control and monitor all

aspects related to health, safety, security, working environment, external environment

and quality management. Such PERSONNEL shall be available and continuously

involved in all phases of the WORK.

c. COMPANY reserves the right to have access to CONTRACTOR HSE PERSONNEL

professional qualifications and certification, with the right to reject HSE PERSONNEL if

considered by COMPANY not fit-for-purpose.

d. COMPANY has the right to advice and/or request CONTRACTOR about his HSE

organization to support the WORK, where this organization is lacking COMPANY has

the right to request improvements or to arrest the WORK at CONTRACTOR cost.

e. For HSE critical tasks CONTRACTOR shall establish, and when required agree with

COMPANY, a list of key PERSONNEL. The list shall identify key PERSONNEL by name

and by (key) role. CONTRACTOR shall maintain the list and provide it to COMPANY

upon request.

f. CONTRACTOR shall minimize turnover of PERSONNEL, where possible, to ensure

established competence levels, commitment, and continuity. Any change in

PERSONNEL shall be managed by CONTRACTOR, to minimize and to mitigate

potential impacts on HSE.

g. When required, CONTRACTOR shall obtain COMPANY REPRESENTATIVE’s written

acceptance prior to replacing any PERSONNEL listed in the CONTRACTOR KEY (HSE)

PERSONNEL LIST.

h. COMPANY has the right to second own PERSONNEL to the CONTRACTOR HSE

organization.



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1.11 COMPETENCE ASSURANCE

a. CONTRACTOR shall identify training requirements and establish a training program.

Training shall take into account different levels of responsibility and shall be conducted in

a manner and language that ensures that all involved have captured and understood the

training.

b. CONTRACTOR is responsible for planning and implementing all the training and

courses required by COMPANY in the CONTRACT for PERSONNEL who will be

involved in the WORK.

c. CONTRACTOR shall ensure that PERSONNEL are competent, capable and qualified to

a level that allows them to WORK without creating unnecessary risk for themselves and

others.

d. CONTRACTOR shall ensure that all PERSONNEL have and maintain the necessary

HSE competencies to perform the WORK to the required HSE Standards.

e. CONTRACTOR shall ensure that all supervisory PERSONNEL have formal training in:

a. HSE;

b. Supervision;

c. Communication; and

d. Emergency Response.

f. CONTRACTOR shall implement a system that assures competence of PERSONNEL.

CONTRACTOR shall provide information about the system upon COMPANY request.

i. For those roles where no suitable recognised competence Standards exist,

CONTRACTOR shall provide, upon COMPANY request, information on the selection

criteria and/or method used to provide assurance of individual competence.

ii. CONTRACTOR shall have a system that records the training of PERSONNEL and shall

keep training records up-to-date. CONTRACTOR shall provide this information upon

COMPANY request.



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iii. CONTRACTOR shall ensure that trainee PERSONNEL will be supervised during the

performance of the WORK.

iv. Unless otherwise agreed with COMPANY in writing, all training of PERSONNEL shall be

at CONTRACTOR’s cost.

1.12 BEHAVIOURAL SAFETY

a. CONTRACTOR shall demonstrate senior management commitment by conducting

regular visits to the relevant worksite and by developing behavioural-based strategies.

b. CONTRACTOR shall actively train and encourage PERSONNEL, including

SUBCONTRACTOR to intervene on unsafe behaviours and situations and report on

deviations from procedures, plans and expectations.

1.13 OCCUPATIONAL HEALTH AND WELFARE

a. CONTRACTOR shall ensure that relevant health risks are systematically assessed and

identified and that effective measures are implemented. Working environment

evaluation shall be performed to evaluate and control psychosocial, physical and

chemical health risks and ensure they do not exceed an acceptable exposure level.

Groups at particular risks shall be identified and given special focus.

b. CONTRACTOR shall have an occupational health service for their employees. A health

care service will be available at COMPANY’s site with medical PERSONNEL taking care

of acute illness and injuries.

c. CONTRACTOR shall comply with statutory regulations and COMPANY health

management requirements.

d. CONTRACTOR shall consider the occupational health requirements of any staff

internationally delegated to worksite; in such cases, CONTRACTOR shall also consider

the occupational health and welfare requirements of the country of origin of the staff.

1.14 MEDICAL FITNESS TO WORK

a. CONTRACTOR shall ensure that all PERSONNEL engaged in the WORK are medically

fit for the job to be undertaken.



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b. CONTRACTOR shall be able to demonstrate that PERSONNEL are fit to WORK

according to statutory and COMPANY requirements.

c. If in the opinion of COMPANY, any PERSONNEL are not medically fit to WORK,

COMPANY reserves the right to:

a. Refuse the PERSONNEL to access the worksite;

b. Remove the PERSONNEL from the worksite;

c. Request the CONTRACTOR to provide the PERSONNEL with medical care or to

be reassigned to another more suitable job;

d. Request the CONTRACTOR to replace the PERSONNEL.

1.15 WORKING TIME

a. CONTRACTOR shall implement a POLICY and arrangements for working time in

accordance with national legislation.

b. COMPANY reserves the right to treat non-compliance to working time regulations as

HSE non-conformities (ref. GLOBAL-HSE-PR-020).

1.16 MOBILISATION / WORK START-UP

a. CONTRACTOR shall, prior to commencement of the WORK, inform all PERSONNEL

about all HSE aspects which are or could be related to the WORK. The last includes

regulations, rules, laws, information, instructions, directives, etc. etc. Such regulations,

rules, requirements, instructions and information may be subject to review by

COMPANY. CONTRACTOR shall communicate these in such a manner that all

PERSONNEL can easily understand. CONTRACTOR shall ensure that any new

PERSONNEL are informed in an equal manner.

b. Before commencement of the WORK, CONTRACTOR shall ensure that all

PERSONNEL involved in the WORK receive a mobilisation briefing including COMPANY

expectations in performance of the WORK and risks associated with the WORK.



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1.17 HSE REPORTING

a. CONTRACTOR shall submit HSE performance reports to COMPANY on a monthly basis

or as otherwise agreed between COMPANY and CONTRACTOR. These reports shall

generally contain the following data as minimum:

a. Progress against implementation of the CONTRACTOR HSE Plan;

b. A list, including a brief description, of all incidents (including near misses and

potential incidents);

c. Working hours (including sub-CONTRACTOR exposure hours), broken-down per

worksite/location;

d. Number of Fatalities (FAT);

e. Number of Lost Time Injuries (LTI);

f. Number of Restricted WORK Cases (RWC);

g. Number of Medical Treatment Cases (MTC);

h. Number of First Aid Cases (FAC);

i. Number of Fire, Explosion and Releases rates (FER)

j. Number of Environmental Spills;

k. Key performance indicators (KPI);

l. Additional CONTRACT specific HSE performance data, as agreed with

COMPANY. I.e.:

a. Mileage / kilometres driven for the WORK;

b. Fuel / gas consumption and related costs;

c. Electricity consumption and related costs;

d. Water usage (public facilities / surface water / ground water);

e. Water discharge;



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f. Waste generated.

b. The format, content and the frequency of the HSE Report shall be agreed with

COMPANY prior to the commencement of the WORK.

c. CONTRACTOR shall submit an Annual HSE performance report when required by

COMPANY.

d. CONTRACTOR shall submit an HSE Performance close-out report at the end of the

CONTRACT COMPLETION DATE or as otherwise stated by COMPANY.

e. CONTRACTOR shall cooperate for the preparation of COMPANY closeout report.

f. The HSE performance close-out report, should address the following:

i. All data as mentioned in the HSE performance reporting consolidated for the

entire CONTRACT period;

ii. List of all incidents (including near misses and incidents);

iii. Summary of underlying causes of and follow-up to incidents with significant actual

consequences;

iv. HSE successes that should be considered for next year or future work in relation

to the WORK;

v. Problems experienced and actions taken to overcome these;

vi. Effectiveness of HSE plan implementation;

vii. Effectiveness of HSE interfacing process;

viii. SUBCONTRACTOR performance evaluation;

ix. Any other lessons to be learnt and suggestions for improvements.



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1.18 COMMUNICATIONS AND HSE MEETINGS

a. CONTRACTOR shall appoint a designated person to communicate with COMPANY

REPRESENTATIVE in terms of HSE. CONTRACTOR shall assure the same for

SUBCONTRACTOR.

b. COMPANY designates an internal senior, field experienced and official representative to

maintain consistent HSE communication and complete information exchange between

COMPANY and CONTRACTOR.

c. CONTRACTOR shall ensure efficient and effective HSE communication and consultation

with all PERSONNEL involved in the WORK. This includes but is not limited to toolbox

meetings prior to the start of the WORK, worksite HSE meetings on a regular basis with

all parties involved (including SUBCONTRACTOR, COMPANY and other third parties),

newsletters, etc.

d. CONTRACTOR shall participate in relevant COMPANY HSE meetings when requested.

1.19 MANAGEMENT OF SUB-CONTRACTOR

a. CONTRACTOR shall engage SUBCONTRACTOR according to the conditions of

CONTRACT as set by COMPANY.

b. CONTRACTOR shall ensure that SUBCONTRACTOR comply with COMPANY HSE

Standards.

c. CONTRACTOR shall include COMPANY “Company HSE Requirements” in all

CONTRACTOR agreements or contracts with SUBCONTRACTORS.

d. When required there shall be no more layers of SUBCONTRACTORS or subcontracts as

what was agreed by COMPANY, before the CONTRACT COMMENCEMENT DATE and

the APPROVED VENDOR LIST.

e. When required CONTRACTOR shall inform COMPANY in advance in a reasonable time

of portions of the WORK that CONTRACTOR intends to SUBCONTRACT.

f. CONTRACTOR shall use a fit-for-purpose process for identification, evaluation and

selection of SUBCONTRACTOR consistent with “IOGP (The International Association of

Oil & Gas Producers)” and applicable equivalent industrial or statutory systems.



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g. COMPANY has the right to participate in the evaluation of HSE capability and approve or

reject any SUBCONTRACTOR accordingly.

h. When required CONTRACTOR shall inform COMPANY, immediately, of the details for

any planned award of agreements or contracts with SUBCONTRACTOR.

i. CONTRACTOR shall provide to SUBCONTRACTOR, as a minimum, in a format and

level that will be readily understood by SUBCONTRACTOR:

j. Specific HSE hazards as relevant to SUBCONTRACTOR;

k. CONTRACT HSE plan.

l. CONTRACTOR shall ensure that SUBCONTRACTOR familiarizes itself with the HSE

information.

m. CONTRACTOR shall maintain an overview of SUBCONTRACTOR, showing activities to

be performed and risk level relevant to the WORK. CONTRACTOR shall provide this

overview to COMPANY upon request.

n. CONTRACTOR shall ensure that all SUBCONTRACTOR’s PERSONNEL are competent,

capable and qualified.

o. CONTRACTOR shall be accountable for SUBCONTRACTOR HSE performance.

p. COMPANY reserves the right to refuse SUBCONTRACTOR access to COMPANY’s

premises and to re-allocate WORK following HSE non-compliances.

q. CONTRACTOR shall evaluate SUBCONTRACTOR HSE performance upon completion

of the WORK.

r. COMPANY HSE Requirements remain applicable to any engaged SUBCONTRACTOR,

therefore COMPANY can verify this at any time of the service.

s. COMPANY reserves the right to establish collateral CONTRACTs with any

SUBCONTRACTOR required for HSE reasons (i.e. guarantee period, maintenance and

service and of fire equipment).



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1.20 HSE INCENTIVE

a. COMPANY reserves the right to reward CONTRACTOR with an incentive depending on

their HSE performance.

b. Other forms of appreciation can be agreed during the course of the CONTRACT.

1.21 HSE NON CONFORMITIES

a. HSE non-conformities are to be identified and positively rectified immediately during the

CONTRACT execution and performance of the WORK by the CONTRACTOR,

SUBCONTRACTOR and/or by COMPANY.

b. HSE non-conformities become serious when posing a direct threat to People,

Environment and Reputation. For such cases, COMPANY has the right to immediately

notify the CONTRACTOR and stop the WORK when required.

c. The CONTRACTOR and SUBCONTRACTOR shall notify any HSE non-conformity to the

COMPANY.

d. COMPANY can give verbal or written notice about HSE non-conformities to

CONTRACTOR including SUBCONTRACTOR.

e. CONTRACTOR and sub-CONTRACTOR shall rectify HSE non-conformities without

undue delay.

f. COMPANY has the right to undertake disciplinary decisions to expel people, assets or

products posing harm to people, assets, environment and reputation from site. Unless

otherwise agreed with COMPANY, all related costs shall be at CONTRACTOR’s cost.

g. COMPANY can agree or contribute to any disciplinary decisions of a CONTRACTOR

and SUBCONTRACTOR.

h. COMPANY has the right to terminate the CONTRACT whether agreement is not

reached or CONTRACTOR fails to implement the required corrective measures to rectify

HSE non-conformities.

i. Any communication will be done in writing.



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1.22 EMERGENCY PREPAREDNESS AND RESPONSE

a. Emergencies are to be managed according to the CONTRACT type and bridging

document, including HSE roles and responsibilities and statutory requirements.

b. CONTRACTOR shall maintain fit-for-purpose emergency preparedness and response

capabilities, which shall be clearly documented. Unless otherwise agreed with

COMPANY, all emergency response costs shall be at CONTRACTOR’s cost.

c. If required by COMPANY, CONTRACTOR shall develop, in collaboration with

COMPANY, an emergency response bridging document. Such emergency bridging

document shall be implemented, and PERSONNEL shall be briefed on the content, prior

to start of WORK.

d. Where applicable, CONTRACTOR shall provide fit-for-purpose emergency response

equipment, survival equipment, first-aid equipment, life-saving equipment, fire-fighting

equipment and oil/chemical spill equipment. CONTRACTOR shall ensure that involved

PERSONNEL are competent in its use. Unless otherwise agreed with COMPANY, all

emergency response equipment shall be at CONTRACTOR’s cost.

e. CONTRACTOR shall develop and maintain a programme of training and exercises to

ensure competency of all individuals and teams involved in the emergency response

organisation, in accordance with statutory and COMPANY requirements.

f. CONTRACTOR shall ensure that all PERSONNEL are aware of emergency procedures

and shall instruct all PERSONNEL to comply with CONTRACTOR’s instructions during

emergencies. PERSONNEL shall be briefed on their roles and responsibilities in

emergencies.

g. PERSONNEL involved in the WORK shall have completed basic HSE and emergency

preparedness and response training, accordance with requirements of the industry

Standards in the country of operation.

h. Emergency preparedness and response training will be at CONTRACTOR’s cost unless

otherwise agreed with COMPANY.

i. CONTRACTOR shall have medical evacuation plans in place especially for WORK in

remote locations or for WORK in countries where medical facilities are not available or

not considered up to Standard.



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j. CONTRACTOR shall utilize COMPANY medical response and evacuation if agreed in

writing with COMPANY. Otherwise COMPANY does not guarantee the possibility to

provide the aforesaid assistance to CONTRACTOR’ staff.

k. Medical evacuation will be at CONTRACTOR’s cost unless otherwise agreed with

COMPANY

l. CONTRACTOR shall make available PERSONNEL to participate in periodic drills, first

aid training, survival, life saving and firefighting as requested and conducted by

COMPANY.

m. COMPANY reserves the right to nominate PERSONNEL to positions within the

CONTRACTOR’s emergency response organisation. Any required specific training will

be at COMPANY’s cost.

n. CONTRACTOR shall, before start of the WORK, provide COMPANY with

CONTRACTOR emergency contact details list. Such list shall contain CONTRACTOR’s

emergency response contact information. CONTRACTOR shall inform COMPANY

immediately of any changes to this list.

1.23 HSE INCIDENT MANAGEMENT

a. CONTRACTOR shall have a structured and documented HSE incident notification,

investigation and reporting system.

b. CONTRACTOR shall notify, investigate and report to COMPANY incidents in

accordance to COMPANY incident investigation and management procedure, and

conditions of CONTRACT.

c. CONTRACTOR shall report all HSE incident and/or accident, to relevant authorities as

required. COMPANY reserves the right to receive any type of information from

CONTRACTOR in case of accident or near miss (i.e. notifications, investigation reports,

statistics, closeout reports, communications with external authorities, etc.) and to

perform its own investigation.

d. Liaising with external authorities and external bodies will be managed according to the

CONTRACT, statutory requirements and HSE roles and responsibilities.



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e. CONTRACTOR shall co-operate and participate as requested in any COMPANY

investigation of HSE incidents.

f. COMPANY has the right to participate in any investigation, and shall have access

facilities, equipment, materials, records and PERSONNEL of CONTRACTOR and sub-

CONTRACTOR for this purpose (subject only to any statutory or contractual obligation

prohibiting the disclosure of any such records by CONTRACTOR).

g. CONTRACTOR shall include in all SUBCONTRACT, associated with the WORK, rights

of access for COMPANY with respect to incident investigation, as described herein.

h. Nothing in above articles shall restrain CONTRACTOR from investigating incidents.

CONTRACTOR shall provide a copy of their completed incident report to COMPANY on

request (subject only to any statutory or contractual obligation prohibiting the disclosure

of any such records by CONTRACTOR).

i. CONTRACTOR shall present incident investigation results to COMPANY on request of

the COMPANY.

j. CONTRACTOR shall implement the recommendations arising from incident

investigations and shall ensure that findings are fully communicated to all relevant

PERSONNEL.

1.24 COMMUNICATION WITH THIRD PARTIES

a. Communications with THIRD PARTYs will be managed accordingly to the contracting

mode, local requirement and CONTRACT.

b. COMPANY reserves the right to approve any communication prior being sent to THIRD

PARTYs (subject only to any statutory and/or contractual obligation prohibiting the

disclosure of any such records by CONTRACTOR, including the direct reporting to

THIRD PARTYs).

1.25 HSE AUDITS, REVIEWS AND INSPECTIONS

a. CONTRACTOR shall perform audits, reviews and inspections on the worksite as

required by CONTRACTOR’s HSE-MS and/or by COMPANY. During these audits,

reviews and inspections CONTRACTOR shall verify that CONTRACTOR has fulfilled

any and all legal obligations, including conditions and stipulations in all relevant licenses,



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consents and permits and that the WORK is performed in accordance with the HSE-MS

of the CONTRACTOR or of COMPANY (depending on the contracting mode).

b. CONTRACTOR shall provide capable, qualified and competent PERSONNEL to perform

audits, reviews and inspections.

c. Upon COMPANY’s request, CONTRACTOR shall submit reports in from audits, reviews

and inspections to COMPANY.

d. CONTRACTOR shall, upon COMPANY’s request, demonstrate effective implementation

of findings from audits, reviews and inspections.

e. CONTRACTOR shall co-operate with any HSE audit, review or inspection carried out by

COMPANY. COMPANY shall inform CONTRACTOR of the results.

1.26 HSE RECORDS

a. CONTRACTOR shall retain relevant HSE records resulting from its WORK in line with

the applicable local legislation.

b. COMPANY shall be given access to these records on request even after the

CONTRACT completion.

1.27 SUBSTANCES (AB) USE

a. COMPANY has zero tolerance for use of alcohol and/or drugs during performance of

WORK. Any use of alcohol or narcotics shall be strictly forbidden while carrying out

WORK in accordance to the CONTRACT.

b. CONTRACTOR shall WORK systematically to prevent and expose substance abuse by

its own employees. CONTRACTOR shall have formal procedures for dealing with

substance abuse.

c. COMPANY may demand that any PERSONNEL working at the Plant and during the

performance of the WORK take a drug and alcohol test.

d. CONTRACTOR shall ensure, as far as reasonably practical, that all PERSONNEL and

SUBCONTRACTOR do not at any time use, are under the influence of, transport, or

have in their possession at COMPANY premises any drugs, alcohol, natural stimulants,

natural sedatives or other intoxicating substances.



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e. CONTRACTOR shall ensure that all PERSONNEL comply with statutory guidelines for

the transportation of medicines offshore.

f. All respective PERSONNEL from each PARTY shall inform COMPANY and/or

CONTRACTOR REPRESENTATIVE of any concerns they have around their ability to

perform their task safely whether due to illness, injury, medication or adverse effect of

medication.

g. PERSONNEL found contravening the foresaid will not be allowed access to or will be

removed from COMPANY premises and WORKSITE with immediate effect and

COMPANY shall not be liable for any charges or consequences arising directly or

indirectly out of such removal.

2 WORK SPECIFIC HSE REQUIREMENT

2.1 HSE CASE(S) AND STATUTORY HSE PLANS

a. CONTRACTOR shall submit specific HSE Cases or other statutory HSE plans or

documents relevant to the WORK or shall contribute to HSE Cases or other statutory

HSE documents prepared by COMPANY. The risk assessment process shall be

reflected therein.

2.2 HSE ORGANISATION

a. CONTRACTOR HSE organisation shall operate independent from line organisation.

b. CONTRACTOR’s top management is accountable for the effective management of HSE

in the workplace and for the HSE performance.

c. CONTRACTOR’s HSE PERSONNEL shall function directly under COMPANY’ HSE

PERSONNEL, when required.

2.3 ROAD SAFETY

i. CONTRACTOR and SUBCONTRACTOR shall execute any road transport associated

with the WORK in accordance with statutory requirements and COMPANY’s road safety

Standard.



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2.4 PERSONAL PROTECTIVE EQUIPMENT (PPE)

a. CONTRACTOR shall ensure that PERSONNEL are provided with adequate PPE fit-for-

purpose and shall ensure that such are maintained in good condition. CONTRACTOR

shall ensure that PERSONNEL are trained on the correct use of PPE.

b. CONTRACTOR(s) shall provide at his own cost PPE of technical Standard as per

statutory regulations and COMPANY’s requirements unless otherwise agreed with

COMPANY.

2.5 EQUIPMENT

a. CONTRACTOR shall be responsible for ensuring that any EQUIPMENT brought to site

is certified according to the statutory requirements and COMPANY Standards.

b. CONTRACTOR shall be responsible for ensuring that any EQUIPMENT or supplies

brought to WORK site is inspected, tested and properly maintained and that such

EQUIPMENT or supplies are free from DEFECTS and are fit-for-purpose.

2.6 HAZARDOUS ACTIVITIES AND SPECIAL COMPETENCIES

a. CONTRACTOR shall identify and document activities that require special or additional

training in respect of high potential risks associated with the WORK, such as but not

limited to activities involving asbestos removal, exposure to hazardous chemicals,

mercury, ionizing radiation, BTEX, H2S, high pressure, high temperature etc.

b. CONTRACTOR shall ensure that PERSONNEL are competent to operate high-risk

activities in a safe manner.

2.7 PERMIT TO WORK

a. CONTRACTOR shall implement a permit to WORK system (PTW) at site.

b. Depending on the contracting mode, PERSONNEL will follow the PTW system applied

by the CONTRACTOR or by COMPANY.

c. PERSONNEL shall adhere to PTW system.

d. CONTRACTOR shall ensure that PERSONNEL are competent, capable and qualified to

follow the PTW.



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e. CONTRACTOR’s PTW system shall be in line with the statutory requirements and not in

conflict with COMPANY’s PTW system.

2.8 CHEMICALS

a. CONTRACTOR shall adhere to statutory requirements and COMPANY’s procedures

with respect to the handling of chemicals.

b. CONTRACTOR shall ensure that chemicals are approved for use on site, prior to being

supplied, stored and/or used.

c. CONTRACTOR shall provide COMPANY with up-to-date information on HSE risks

posed by chemical products used in the WORK, including Material Safety Data Sheets.

d. If CONTRACTOR manufactures or imports chemicals, CONTRACTOR shall comply with

prevailing statutes as well as regulations and guidelines on evaluating and classifying

chemicals.

e. CONTRACTOR shall adhere to legislation and local permit requirements for the use and

(potential) discharge of all chemicals.

2.9 WASTE MANAGEMENT

a. The COMPANY shall ensure use of Authority approved waste treatment or disposal

sites. COMPANY reserves the right to request CONTRACTOR to submit supporting

documentation as required.

b. The CONTRACTOR shall have implemented a system for identifying and classifying

waste according to Statutory Regulations.

c. CONTRACTOR shall handle all waste in accordance with applicable national laws,

regulations and COMPANY’s Requirements COMPANY has the right to verify this

compliance at any time during the WORK.

d. CONTRACTOR shall identify any waste at the planning stage of any WORK.

Opportunities to reduce waste, or minimise the environmental impact of the waste, shall

be identified at this stage.

e. CONTRACTOR shall handle waste they generate on COMPANY premises, sites or

installations, in accordance with the COMPANY site procedures and use COMPANY



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appointed waste CONTRACTOR and agreements when applicable. Unless otherwise

agreed with COMPANY, all CONTRACTOR waste disposal costs shall be at

CONTRACTOR’s cost.

f. CONTRACTOR is responsible for the safe containment, identification and segregation of

any waste they produce, and to hand-over the waste to COMPANY’s

REPRESENTATIVE for offsite disposal.

2.10 DANGEROUS GOODS

a. The CONTRACTOR shall have a Dangerous Goods handling system that ensures

compliance with the applicable legislation and COMPANY requirements.

2.11 HARMONISED OFFSHORE CHEMICAL NOTIFICATION FORMAT (HOCNF)

a. CONTRACTOR shall make HOCNF (Harmonised Offshore Chemical Notification

Format) or other environmental documentation available for COMPANY if a chemical is

added to a production stream and following discharged water. COMPANY shall ensure

confidentiality by handling and filing the information in a secure manner.

2.12 RADIOACTIVE SOURCES

a. CONTRACTOR shall have a documented system to ensure that the activity is in

compliance with regulations and provisions stipulated by the Statutory Requirements for

the use of radioactive material. Reference is made to COMPANY’S process for Manage

radioactive sources.

b. Transportation, storage and use of radioactive sources shall comply with all relevant

national rules and regulations. CONTRACTOR shall also be responsible for obtaining

the necessary permissions for transportation, storage and use of radioactive sources.

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