Copyright of Shell Exploration and Production Company.

Creating Safety Culture in Shell

November 7, 2017

Lee Stockwell

General Manger, Deep Water Safety & Environment

1October 2017

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HOW ARE WE PERFORMING?

October 2017 2

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IndustryIndustryIndustryIndustry ShellShellShellShell Shell DWShell DWShell DWShell DW

Process Safety Incident RatesProcess Safety Incident RatesProcess Safety Incident RatesProcess Safety Incident Rates

2011201120112011 2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016201620162016

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IndustryIndustryIndustryIndustry ShellShellShellShell Shell DWShell DWShell DWShell DW

Personal Safety Incidents RatesPersonal Safety Incidents RatesPersonal Safety Incidents RatesPersonal Safety Incidents Rates

2011201120112011 2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016201620162016Data Source: IOGP

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IT TAKES ALL TYPES

INCREASING CULTURAL MATURITYINCREASING CULTURAL MATURITYINCREASING CULTURAL MATURITYINCREASING CULTURAL MATURITY

NU

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NU

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BER

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HSE

EV

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Pathological

Reactive

Calculative

Proactive

Generative

Source Western, Hudson et al.; "The Human Factor in System Reliability - Is Human Performance Predictable? ", held in Siena, Italy, 1-2 December 1999, and published in RIO MP-032.

Controls, ProcessesControls, ProcessesControls, ProcessesControls, ProcessesBoundariesBoundariesBoundariesBoundaries

CaringCaringCaringCaring

TechnicalTechnicalTechnicalTechnical

IntegrityIntegrityIntegrityIntegrity

OperatingOperatingOperatingOperating

IntegrityIntegrityIntegrityIntegrity

DesignDesignDesignDesign

IntegrityIntegrityIntegrityIntegrity

ProcessProcessProcessProcess

SafetySafetySafetySafety

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THE LIFE SAVING RULES

Work with a valid work

permit when required

Conduct gas tests when required

Verify isolation before work

begins and use the specified life protecting

equipment

Obtain authorisation

before entering a confined

space

Obtain authorisation

before overriding or

disabling safety critical equipment

Protect yourself against a fall

when working at height

Do not walk under a

suspended load

Do not smoke outside

designated smoking areas

No alcohol or drugs while working or

driving

While driving, do not use your phone and do not

exceed speed limits

Wear yourseat belt

Follow prescribed Journey

Management Plan

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OUR GOAL IS ZERO

2000 2002 2004 2006 2012 2014 2016

52 5137

26

8 5 3

2009:2009:2009:2009:LSRsLSRsLSRsLSRs

introducedintroducedintroducedintroduced

NUMBER OF FATALITIES

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PROCESS SAFETY FUNDAMENTALSAlways use two barriers

for hydrocarbon and chemical drains & vents

Do not leave an open drain or critical transfer

unattended

Take interim mitigating measures in case of

failure of Safety Critical Equipment

For all defined high risk activities, follow the

procedures and sign off after each step

Walk the Line –Verify and validate any

line up change

Do not make a change without a proper MOC

Verify for complete tightness after

maintenance work

Always check that equipment is pressure free and drained, and provides

safe isolation before starting maintenance work

Perform MOC and install backflow protection when

connecting utilities to process

Respond to critical alarms

6

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IT TAKES ALL TYPES

INCREASING CULTURAL MATURITYINCREASING CULTURAL MATURITYINCREASING CULTURAL MATURITYINCREASING CULTURAL MATURITY

NU

MBE

R O

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Human Human Human Human PerformancePerformancePerformancePerformance

Pathological

Reactive

Calculative

Proactive

Generative

Source Western, Hudson et al.; "The Human Factor in System Reliability - Is Human Performance Predictable? ", held in Siena, Italy, 1-2 December 1999, and published in RIO MP-032.

Safety LeadershipSafety LeadershipSafety LeadershipSafety Leadership

Controls, ProcessesControls, ProcessesControls, ProcessesControls, ProcessesBoundariesBoundariesBoundariesBoundaries

CaringCaringCaringCaring

TechnicalTechnicalTechnicalTechnical

IntegrityIntegrityIntegrityIntegrity

OperatingOperatingOperatingOperating

IntegrityIntegrityIntegrityIntegrity

DesignDesignDesignDesign

IntegrityIntegrityIntegrityIntegrity

ProcessProcessProcessProcess

SafetySafetySafetySafety

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HUMAN PERFORMANCE

What has to change to make it

easier to do the right thing and

harder to get it wrong?

• Leadership Engagement

• Design and Engineering

• Risk Management

• Manage Safe Work

• Physical and Psychological

Wellbeing

• Incident Investigation and Learning

Principles of Human Performance:

• People make mistakes and violations are People make mistakes and violations are People make mistakes and violations are People make mistakes and violations are

rarely malicious rarely malicious rarely malicious rarely malicious

• Behaviours of individual are influenced by the Behaviours of individual are influenced by the Behaviours of individual are influenced by the Behaviours of individual are influenced by the

organizationorganizationorganizationorganization

• Error prone situations are predictable (and Error prone situations are predictable (and Error prone situations are predictable (and Error prone situations are predictable (and

therefore manageable and preventable)therefore manageable and preventable)therefore manageable and preventable)therefore manageable and preventable)

• Learning from incidents (why and how errors Learning from incidents (why and how errors Learning from incidents (why and how errors Learning from incidents (why and how errors

occur) can reduce future mistakes and occur) can reduce future mistakes and occur) can reduce future mistakes and occur) can reduce future mistakes and

incidentsincidentsincidentsincidents

• How leaders respond to failure matters!How leaders respond to failure matters!How leaders respond to failure matters!How leaders respond to failure matters!

*Paraphrased from DOE Human Performance Handbook (DOE-HDBK-1028-2009 )

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LEADERSHIP BEHAVIOURS DRIVE THE OUTCOME…

PAST PRESENT FUTURE

We do what we’ve done and get what we got

DESIRED FUTURE

We aspire to something different, which informs our present

Behaviours that enable change

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SAFETY MANAGEMENT IS NOT SAFETY LEADERSHIPARE YOUR ACTIONS ALIGNED?

The personal characteristics of a great safety leader The personal characteristics of a great safety leader The personal characteristics of a great safety leader The personal characteristics of a great safety leader � I always demonstrate respect and care respect and care respect and care respect and care for our people including our contractors.

� I demonstrate vulnerabilityvulnerabilityvulnerabilityvulnerability, acknowledging I do not always have the answers, and

am genuinely curiousgenuinely curiousgenuinely curiousgenuinely curious.

� I am an active partner to our contractorspartner to our contractorspartner to our contractorspartner to our contractors, creating a strong leadership coalition leadership coalition leadership coalition leadership coalition

and a common language and a common language and a common language and a common language for safety and collaboration.

� I open up honest dialoguehonest dialoguehonest dialoguehonest dialogue, surfacing (rather than glossing over) operational issues,

dilemmas, and weak signals. dilemmas, and weak signals. dilemmas, and weak signals. dilemmas, and weak signals.

� I am meticulous about doing what I say doing what I say doing what I say doing what I say and insist insist insist insist on our standards being met.

� I actively seek and welcome feedback and coaching from othersfeedback and coaching from othersfeedback and coaching from othersfeedback and coaching from others, while also

offering coaching offering coaching offering coaching offering coaching myself.

� I actively find, acknowledge and reward find, acknowledge and reward find, acknowledge and reward find, acknowledge and reward good safety behaviour at all levels at all levels at all levels at all levels and

champion positive role models. positive role models. positive role models. positive role models.

� I am visible visible visible visible from the office to the front line, listening, engaging listening, engaging listening, engaging listening, engaging and committing to

take personal action, including with people in outoutoutout----ofofofof----sight locationssight locationssight locationssight locations.

October 2017 10

DECLARED FUTURE

Wherever you go in the organisation we are Wherever you go in the organisation we are Wherever you go in the organisation we are Wherever you go in the organisation we are confident that you will find people with a common confident that you will find people with a common confident that you will find people with a common confident that you will find people with a common purpose, who are motivated to achieve Goal Zero:purpose, who are motivated to achieve Goal Zero:purpose, who are motivated to achieve Goal Zero:purpose, who are motivated to achieve Goal Zero:

� Because they feel supported to openly address supported to openly address supported to openly address supported to openly address their challenges and dilemmaschallenges and dilemmaschallenges and dilemmaschallenges and dilemmas.

� By the pride in the condition of the assets pride in the condition of the assets pride in the condition of the assets pride in the condition of the assets they operate, the the the the projects projects projects projects they are building and the organisationand the organisationand the organisationand the organisation in which they work.

� Through demonstrating discipline, never compromisingdiscipline, never compromisingdiscipline, never compromisingdiscipline, never compromising on standards and being fully transparentfully transparentfully transparentfully transparent.

� Because they feel empowered and cared forempowered and cared forempowered and cared forempowered and cared for.

� Because we (including contractors) do as we say do as we say do as we say do as we say and relentlessly pursue improvementrelentlessly pursue improvementrelentlessly pursue improvementrelentlessly pursue improvement.

� Because we all share a sense of unease share a sense of unease share a sense of unease share a sense of unease that leads to leads to leads to leads to curiosity and learningcuriosity and learningcuriosity and learningcuriosity and learning.

� Because we know we will all go home will all go home will all go home will all go home to our families safelysafelysafelysafely by making Shell the safest business on earth.

DECLARED FUTURE

Wherever you go in the organisation we are Wherever you go in the organisation we are Wherever you go in the organisation we are Wherever you go in the organisation we are confident that you will find people with a common confident that you will find people with a common confident that you will find people with a common confident that you will find people with a common purpose, who are motivated to achieve Goal Zero:purpose, who are motivated to achieve Goal Zero:purpose, who are motivated to achieve Goal Zero:purpose, who are motivated to achieve Goal Zero:

� Because they feel supported to openly address supported to openly address supported to openly address supported to openly address their challenges and dilemmaschallenges and dilemmaschallenges and dilemmaschallenges and dilemmas.

� By the pride in the condition of the assets pride in the condition of the assets pride in the condition of the assets pride in the condition of the assets they operate, the the the the projects projects projects projects they are building and the organisationand the organisationand the organisationand the organisation in which they work.

� Through demonstrating discipline, never compromisingdiscipline, never compromisingdiscipline, never compromisingdiscipline, never compromising on standards and being fully transparentfully transparentfully transparentfully transparent.

� Because they feel empowered and cared forempowered and cared forempowered and cared forempowered and cared for.

� Because we (including contractors) do as we say do as we say do as we say do as we say and relentlessly pursue improvementrelentlessly pursue improvementrelentlessly pursue improvementrelentlessly pursue improvement.

� Because we all share a sense of unease share a sense of unease share a sense of unease share a sense of unease that leads to leads to leads to leads to curiosity and learningcuriosity and learningcuriosity and learningcuriosity and learning.

� Because we know we will all go home will all go home will all go home will all go home to our families safelysafelysafelysafely by making Shell the safest business on earth.