FOREWORD

As we look back over the results for the past year and the causal learning, it is obvious that we must make a bigturnaround in our HSE performance for 2015. From the data underlying the results a clear picture emerges, andthere can be no doubt that last year's setbacks were mainly due to supervisors simply concentrating on thetasks in hand rather than properly supervising operations, together with reluctance and possibly evencomplacency, to fully exercise the Stop Work policy at work sites.

Once again, I emphasize that everyone Must Fully Comply with our ZeTo rules, Intervene without hesitation andRespect the safety needs of each other in carrying out the duties. Let there be no doubt that we will enforce theconsequence management strictly for non-compliance.

For 2015, we will continue our Back to Basics and Hearts & Minds programs, but with the emphasis more ontheir hands-on implementation. We will carry out a more rigorous and disciplined Rig Assurance Audit cycliccampaign, and assign Special Task Forces to follow up and close out the corrective actions promptly. Our RigContractors will be given the full authority to run the “Rig as a Second Home” program. Together with all ourWells Contractors, we will drive continuously the “Hands & Fingers” campaign and the 11 elements in ourspider-web WHM (Worksite Hazard Management) tool that covers the ZeTo rules, Leadership & Behavior,Observation & Intervention, HSE Case operationalization, Permit to work, JHA / toolbox talk, DROPS program,PMS / Lifting register, MOC, Bridging document and Simultaneous Operations.

Whereas for Wells Risk, we will be adopting the 3-pronged PETRONAS Resiliency Model, also known as thePAYUNG analogy (Enterprise Risk Management, Crisis Management and Business Continuity Management), as aholistic approach to manage risk. This will be implemented through 4 core strategies - Policy & Strategy,Infrastructure, Capability & Culture, and Measurement. Similar to HSE, the emphasis will be on hands-on siteactivities, ensuring compliance and providing assurance on implemented mitigations. This is to support theinternalization and cascading of risk management culture and practices from the office down to the work site.Our priority will be on risk prevention for drilling activities in order to strengthen our internal control,specifically for Well Control and Stuck Pipe prevention.

Having a plan alone is obviously not sufficient, we need proper execution and implementation. I thereforerequire your full commitment, discipline and ownership to implement all programs and activities planned forthis year.

All of the above will be on our webpage, and also on a specially created webpage for our Contractors. Cascadingwill be facilitated by on-line bulletins, providing the latest information and alerts. There will also be morecoverage this time on near- misses, process safety and proactive KPIs.

Let us all keep working towards excellence in Health, Safety and Environment in making all our offices & Rigs thegreat places to work, and ensure that “Everyone Goes Home Safely”.

___________________George Ling Kien Sing

Head, Wells-Technical Global DivisionPETRONAS Carigali Sdn. Bhd.

HSE Plan Prepared by

ASUL KAHAR MUDASenior ManagerWells HSE

______________Date:

Risk Plan Prepared by

AZWATI OSMANHeadWells Risk Management Unit

______________Date:

Endorsed by

ROSLI HAMZAHHeadWells International

______________Date:

HISHAM BASARHeadWells Malaysia

______________Date:

M ARIFFIN DAUDHeadWells Intervention & Services

______________Date:

RAHIMI A WAHABHeadWells Technology Engineering & Support

______________Date:

AHMAD NAHRAWI MOHDHeadWells Competency & Assurance

______________Date:

Approved by DATUK GEORGE LING KIEN SINGHeadWells-Technical Global Division

______________Date:

*This page is left intentionally blank*

H

S

E

CONTENTS

2015 HSE PLAN FRAMEWORK

2015 WELLS HSE SCORECARD

2015 WELLS STRATEGY & HSE PLAN • LEADERSHIP & COMPETENCY• CULTURE & BEHAVIOUR• SYSTEMS & STRUCTURE

WELLS HSE CONTACT INFORMATION

Page 4-7

Page 8

Page 3

Page 1-2

Leadership & Competency

Systems & Structure

Culture & Behaviour

WELLS HSE FOCUSED PROGRAM 2015

2015 HSE PLAN FRAMEWORK

• HSE Training

• HSE Critical Position

• Site induction & ZeTo Rules

• Observation & Intervention system

• Leadership & Behaviour

Leadership & Competency

• Implementation of WELLS MCF Gaps

• HSE Contracts Requirement Verification

• Hazard and Effect Register (HER)

• HSE Assurance Program

• TIPS 5 (HSE Case Validation)

• HSE Project Management

• MOC Implementation (eMOC)

• Drops Prevention Program

• PMS – Lifting register

• Permit to Work (PTW)

• JHA/ Toolbox Talk

• Bridging Document

• SISO/SIPROD Preparedness

Systems & Structure

• Hearts & Minds Program for WELLS

• Rig as a Second Home

• Operationalization HSE Case

Culture & Behaviour

*Workplace Hazard Management (WHM)

Maintain good housekeeping

2015 FOCUS AREA

WELLS HSE SCORECARD 2015

HSE Score Card Min Bus Plan Stretch

<<< LIMIT >>>

Fatality 0 0 0

Lost Time Incident Frequency (LTIF)

0.63 0.57 0.51

Total Recordable Case Frequency (TRCF)

1.72 1.55 1.38

Major Loss of Primary Containment (LOPC)

2 1 0

Major Fire 1 0 0

Major LOPC Loss of hydrocarbon primary containment, equal to or in excess of 7 bbl of petroleum products (e.g. condensate, diesel); or 14 bbl of crude oil; or 5 kg (about 25 MMscf) of natural gas)

FatalityDeath due to work related injury or occupational illness

Lost Time Injury Frequency(Total number of lost time injuries per 1,000,000 (1 x 106) manhours)

Major FireNumber of major fires or explosions resulting in damage of more than USD 25,000 (direct cost)

Total Recordable Case Frequency(Total number of fatality, LWC, RWC & MTC per 1,000,000 (1 x 106) manhours)

LEADERSHIP & COMPETENCY

No. Program Specific Program Implementation Action KPITarget

(Bus. Plan)

1 HSE Training

To conduct "HSE in Drilling" for SHO and HSE Executives MAL/INT WHSE Session 2

To conduct HSE on-boarding program for all HSE critical position

MAL/INT WHSE/WCA % of attendance 90%

To conduct "HSE for Leaders" training for WLT MAL/INT/WIS WHSE/WCA Plan vs Actual May '15

To establish HSE Training Matrix for Global WELLS MAL/INT WCA Timeline June '15

2 HSE Critical Position

To conduct HSE competency assessment on rig key personnel

MAL WHSE/WO Completion 80%

To develop specific HSE competency to be utilized for hiring process of staff in HSE Critical Position

MAL/INT/WIS WCA/WHSE/WO Timeline June '15

To roll out HSE questionnaire for new comer MAL WO/WHSE Timeline March ‘15

3WELLS Contractors HSE Forum

To conduct an engagement session with all contractors and service providers, to communicate WELLS Management’s HSE direction FY2015

MAL WHSE Timeline February '15

2015 WELLS STRATEGY & HSE PLAN 2015

CULTURE & BEHAVIOUR

No. Program Specific Program Implementation Action KPITarget

(Bus. Plan)

1 Health Program To roll out Occupational Health Program MAL/WIS WHSE/Contractor Timeline June '15

2Hearts & Minds Program for WELLS

1. To develop H&M awareness & conditioning program for rig/barges leadership and all crew

2. To analyze the effectiveness of H&M implementation conducted on selected rigs involved in pilot projects

MAL/INT/WIS

MAL

WHSE/WO

WHSE

Timeline

Timeline

March '15

February '15

3Rig as a Second Home

To introduce content of Rig as a Second Home package to all rigs/barges

MAL/INT/WIS WHSE/WO Completion February '15

4Operationalization HSE Case

1. To monitor the closure of gaps from Rig HSE Case Validation 2. To develop rig acceptance guideline 3. To develop SCE performance standard framework/guideline

MAL

MAL/INTMAL/INT

WHSE

WHSE/WOWHSE/WO/WTES

Close out

TimelineTimeline

80%

April '15May '15

To conduct awareness training on HSE Case MAL/INT WHSE Session per rig 2

5 HSE communication To roll out Wells HSE bulletin MAL/INT/WIS DRIVE/WDs/WHSE Timeline Quarterly

2015 WELLS STRATEGY & HSE PLAN 2015

SYSTEMS & STRUCTURE

No. Program Specific Program Implementation Action KPITarget

(Bus. Plan)

1Implementation of WELLS MCF Gaps

To review the Gaps for MCF and evaluate the compliance MAL/INTWHSE/WO/WDs/

WTESTimeline June '15

2HSE Contracts Requirement Verification

To verify rig acceptance for new rigs MAL/INT WO/WTES

Timeline & Completion

(Finding Close Out)

100% P1 closed 1 week prior Pre

Spud

3Workplace Hazard Management (WHM)

To analyze the WHM findings and evaluate the compliance MAL/WIS WO/WHSE Frequency Quarterly

To roll out of WHM to all WELLS International Counterparts INT WO/WHSE Timeline March '15

Appointment of champion and preparation of guideline for each element in WHM

MAL WHSE Completion 1st

Quarter

4 eMOCTo develop and roll out WELLS eMOC (online system to manage MOC)

MAL/INT/WIS WHSE/ WTS Timeline August '15

5Drops Prevention Program

To conduct Drop Prevention Campaign MAL/INT WO Completion 2nd

Quarter

To establish Drops Standards for WELLS MAL/INT/WIS WHSE Timeline 2nd

Quarter

To implement the Drops Prevention Program MAL/INT/WIS WHSE/Contractor Completion 80%

To conduct Drops Survey (Third Party) MAL/INT/WIS Contractors Timeline 6 monthly

2015 WELLS STRATEGY & HSE PLAN 2015

*10 elements of MCF consist of; capability, health, environment, safety & transportation, process safety & integrity, management of change, safe operation, contractor HSE management, design, engineering & construction, incident, management & emergency response

*WHM : Workplace Hazard Management

No. Program Specific Program Implementation Action KPITarget

(Bus. Plan)

6Drops Prevention Program

To conduct the Periodical Inspection (internal) as per contractor plan

MAL/INT/WIS Contractors Plan vs Actual 80%

To conduct the Drops Prevention Training MAL/INT/WIS WHSE/Contractor Session 2

7 HSE Assurance

To conduct Contractors' HSEMS Assurance (Rig Contractor & Service Companies)

MAL/WIS WHSE Plan vs Actual 80%

To conduct MHSEV and Rig/Barges Technical HSE Assurance MAL/INT WO/WHSE Plan vs Actual 80%

8 Establish HER To establish HER for project MAL/INT WHSE/WO/WDs Completion 90%

9 TIPS 5 To conduct HSE Case validation for international rigs INT WO/WTES/WHSE Completion 80%

10HSE Project Management

To establish Project HSE Task list MAL/INT/WIS WHSE Timeline 2nd

Quarter

To standardize the format and content for SISO & HSE Bridging Document

MAL/INT WHSE/WO Timeline 2nd

Quarter

To conduct well control emergency exercise MAL/WIS WHSE/WO/WTES Frequency Twice /year

2015 WELLS STRATEGY & HSE PLAN 2015

SYSTEMS & STRUCTURE

Feel free to reach usLevel 20 Tower 1

Wells HSE

Asul Kahar | 1- 6073 | asulkahar@petronas.com.my

Senior Manager, Wells HSE

M Rozaki A Rashid | 1-5858 | rozakirashid@petronas.com.my

Manager, Project HSE

Morrison Daniel Lom| 1-7645 | morrison.daniellom@petronas.com.my

Manager, Occupational Safety

drhse@petronas.com.my

Incident Notification, Incident Investigation & HSE Performance