HEALTH, SAFETY, SECURITY & ENVIRONMENT (HSSE)

Strategy BSP Vision: To be known for Incident Free Our safety performance improved significantly over the last 10 years:

BSP Safety Performance from 2002 to 2012 TRCF

TRC 50

 70% reduction in Total Recordable Cases (TRC1)

 80% reduction in Total Recordable Case Frequency (TRCF2)

TRC

2.00

TRCF 40 1.50 30 1.00

Note: 1 TRC is the total number of Recordable Case incidents: Fatality, Loss Time Injuries, Restricted Work Cases and Medical Treatment Cases of both BSP and its Business Partners 2 TRCF is the number of Recordable Case incident per Million Manhours worked each year (combined BSP and Business Partners)

20

0.50

10

0

0.00 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

Business Partners: Our Important Safety Partners BSP operations and activities has increased considerably over the last 10 years:

 65% increase in manhours

BSP operations manhours from 2002 to 2012 Million Manhours 35 30

est. 34.8

Contractor Manhours BSP manhours

 Our Business Partners (Contractors)

contribute to nearly 80% of the total manhours

 Strong safety partnership resulted in

an 80% reduction in Total Recordable Case Frequency (TRCF) – see chart above.

31.3

30.2

28.2 25.0

24.4

25

32.4

22.4 22.0 21.6

21.2

20 15 10 5 '02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

Safety at the Front of Our Minds Safety events to keep Safety at the Front of Our Minds BSP organises Safety events to ensure Safety is always at the Front of Minds of everyone in its operations.

 Learning From Incident (LFI) Events Every month, BSP senior managers share learning from their safety incidents on stage attended by the BSP and Business Partner staffs.

West Asset team led by the Asset Manager, Hj Kamaludin Bungsu sharing the learning from the 2011 Fairley 4 Fire Incident

Wells team led by Harrie Krus, Wells Dept Head sharing the learning from their successful Hands Free journey.

Shamir Salahudin, Darat Asset Manager shared the learning from SKID gasket failure incident, where he was the Investigation team leader

Chris Holmes, Finance Controller coaching the audience on the Bow-Tie Hazards and Controls concept and how it applies to Finance activities

 Ken Woodward - Hindsight to Foresight BSP invited Ken Woodward to share the key learning from the incident that cost him his eyesight in 1991. Ken conducted 34 Hindsight to Foresight sessions including 5 offshore locations and 2 government ministries.

Ken at a session with Darat Asset operations personnel

Upon arriving at the Ampa 9 complex, a West Asset offshore manned installation

Ken conducting a Hindsight to Foresight session for EDPMO officers

 Brunei Shell Joint Venture – Road Safety Event BSP and the other Brunei Shell joint venture companies together with their Business Partners organised Road Safety Event at Pusat Insani, Seria in June 2012, to give road safety awareness to the general public.

Process Safety Focus Asset Integrity = Process Safety Process Safety is the Management of Hazards that can give rise to major accidents involving release of potentially dangerous materials, release of energy (such as fire or explosion) or both.

Consequence

Recovery Barrier Recovery Barrier Recovery Barrier

Recovery Barrier Recovery Barrier Recovery Barrier

Top Event

Recovery Recovery Recovery Barrier Barrier Barrier

Control Barrier Control Barrier Control Barrier

Control Barrier Control Barrier

Control Barrier

Threat

Control Barrier

Threat

Control Barrier

Hazard

Threat

Control Barrier

Managing Process Safety: Bow-Tie diagram

S.A.F.E. Visits Creating an Incident and Injury Free Workplace Objectives

 Creating an Incident and Injury Free Workplace

 To demonstrate Visible and Felt Safety Leadership in the field

 Promote a culture in which all BSP employees share this commitment Main Features



Not an Audit nor an Inspection Leaders engaging frontline workers; listening and understanding their issues in order to assist and motivate them to solve those issues.



Cross-learning & fresh pair of eyes Leaders are encouraged to visit areas outside their own field, to bring fresh pair of eyes and to understand further about other BSP activities.



Encourages self-checking Location team encouraged to self-assess and check their locations and highlight issues so that it can be discussed during the visit.



Advanced notice Visits are scheduled and locations notified in advance, creating openness, trust and understanding.



Focus on Personal & Process Safety Attention are given to Personal Safety and Process Safety where separate checklists will be used.

Proposed HSSE Structure Networking for Effective Safety Communication A HSSE networking structure is currently being considered, to be effective by January 2013. The proper structure will have clearer and more effective communication of issues on safety, including learning from incidents, safety recommendations and alerts, and regulatory updates.

With the increasing Oil and Gas activities in Brunei, our Business Partners can play an important role to communicate Safety messages to other oil and gas operators in Brunei, to create an Incident and Injury Free workplace in Brunei.

HSSE Committee (in respective Shell companies in Brunei)

Business Partner leaders will be appointed to the Health & Safety Leadership Team

Health & Safety Leadership Team

Menang Wells Network

Construction HSSE Network

Marine HSSE Network

Road Safety Network

Brunei Safety Forum

Process Safety Forum

Business Partner leaders and HSE professionals will be strongly encouraged to join the various HSSE networks

Annual forum for BSJV leaders and leaders from Business Partner and other Oil & Gas companies in Brunei to engage in high level safety networking

BSJV Green Banding Goal Zero HSSE Performance Founded on Strong Contract Foundation Contract HSSE

Contractor Competence Scope Specific Assessment Normalisation & Budget

Contract HSSE Plan

PERFORMANCE

CAPABILITY

(Elements of Success )

Key Performance Indicators Active Contract Management Subcontractor management

Post Award

Pre Award

(Performance)

(Foundation)

Phase 1

Contractor Assessment & Contract Bid Evaluation (Prepare ITT & Tender Evaluation)

Phase 2

Active Contract Management

HSSE Questionnaire (OGP)

Business HSSE

Supplier visit / audit

Business HSSE + Contract Holder

Specific HSSE questions linked to scope

Contract Holder + Business HSSE

Bid Normalisation (gap closure) $

Contract Holder + C&P + Business HSSE

Performance Measurement & Audit

Contract Holder + C&P + Business HSSE

Workplace Safety & Health Order Complying to the regulations Brunei Shell Petroleum welcomes the introduction of the Workplace Safety and Health Order 2009. Brunei Shell Petroleum will only do business with vendors who comply with the Order, and this is embedded in our contract. To support the Government for a successful rollout of the Order, BSP provided the following assistance

 Hosted EDPMO presentation to

BSP Staffs and Business partners in February to:

• Raise awareness of Roles and Responsibilities of employers and employees

• Re-commit, comply and improve Safety Performance

Steve England, Head of HSE at the EDPMO sharing updates on the Workplace Safety & Health Order 2009

 Hosted the Government (EDPMO & Labour Department) to do site visit at BSP Marine Construction Yard (MCY) in September.

Brunei Shell Petroleum Marine Construction Yard (MCY) by the Sungai Belait, in Kuala Belait

 Co-develop the draft Major Accident Hazard Regulations.