HSSE Challenges and Plan in OMV Petrom Romania Upstream Conference & First Eastern Europe HSE Forum

Sustainability: HSSE Hans Zepic Business Partner HSSE for E&P OMV Petrom

Clear statement of OMV Petrom management

Before Modernization

After Modernization

OMV Petrom HSSE Challenges and Plan

Steps were taken to manage the major HSSE challenges facing the E&P activities in Romania
Major challenges
1. Process Safety/ Asset Integrity

2011 measures
Process safety management walk-arounds Process safety champions nominated Safety-critical equipment identified Fire detection and fighting study, review of fire fighting capabilities

2. Contractor Management

High Risk Contractors identified CARE Card (Start Card) System implemented in projects Number of Hazard and Near Miss reports from Contractors

increased by 50%

3. Workover focus

Comprehensive program focused on LTIR reduction, training of

workforce, recognition & reward for HSSE performance, preventive maintenance system launched

4. Theft with 3rd party injury/fatality 5. Reduction of LTIs

Anti-Theft campaign rolled out

Stepping, handling and lifting training for 7.000 persons HSSE leadership training program for managers First Aid Training Program Identification of focus areas and pipelines with majority of spills Defensive Driving campaign including courses for 5.700 light

6. Spills 7. Road Safety

vehicle drivers and 1.600 heavy vehicle drivers

OMV Petrom HSSE Challenges and Plan

Stepping, handling and lifting & Working at heights Training Campaign 2011
Aims
Prevention and reduction of risks of accidents and professional illnesses by: Informing increasing awareness related to behaviors theoretical & practical training of professional categories involved in activities of stepping, lifting & manual handling, working at heights

Objectives
Transmitting best practices to

Action Lines
Construction of 3 simulators that mimic real working conditions easy to be mounted, dismantled and transported. Train-the-trainers for 36 E&P & HSSE employees Training of 7.000 employees in all OMV Petrom E&P locations

employees involved Decreasing the number of accidents and incidents compared to the 2009 - 2010 period

OMV Petrom HSSE Challenges and Plan

HSSE plan for 2012-2015

A challenging environment, multiple risks and new priorities in OMV Petrom into 2015

People

Society, shareholders, and other stakeholders will have increasing expectations towards technical standards and how we work in future

Planet

Profit

Shift in priorities within the business model: Profitable Growth

Growth Integration Change Performance

HSSE-relevant challenges Increasing operational risks (less easy hydrocarbons) More contractor involvement Safety and socioeconomic challenges with divestments Increasing personal and corporate liabilities

HSSE Strategy 2015

Identification of security risks in

sites and implementation of measures at future projects/sites Process safety (PS) organization in operational sites and auditing of PS plans Reporting; HSSE performance of contractors; Execution of health programs, ability to work HSSE involvement in project decisions; safety; community and stakeholder engagement Quantification and reduction of environmental liabilities

OMV Petrom HSSE Challenges and Plan

OMV Group level initiatives

Process Safety Management Activity Plan 2012

Group PSM Team
Guidance

Barrier Checklist

PSPI Analysis Approach

Prioritisation Approach

Check Mentor

Operating Sites
PSPI reporting in CARE

OR Apply Barrier Checklist Substandard Barriers

Assets

PSPI Results Analysis

Risk Reduction Plan Annual PS Status Report

Prioritisation

Consolidated Issues Registers

OMV Petrom HSSE Challenges and Plan

OMV Group level initiatives

HSSE Golden Rules

Overview
The OMV Golden Rules are the product of a three year industry wide study of the cause of fatalities which identified the critical controls that shall be in place prior to starting work.

Roll out Plan

OMV Petrom HSSE Challenges and Plan

OMV Group level initiatives

IVMS (In vehicle monitoring system)

System overview
IVMS is an integrated and secured system designed to monitor, record, alert, analyze and improve driver and vehicle performance. Location (via GPS) Speed / RPMs Hard dip bumps, unsafe turns, acceleration or brakes Impact / crash data Seatbelt use and headlight use Trip duration / mileage

Expected benefits
Safety Benefits Increase in stolen vehicle recovery Increase in personnel security and safety Reduction of accidents Reduction in insurance costs Fuel Consumption Benefits Reduction of excessive idle Reduction of harsh acceleration Reduction of unauthorized use Vehicle Maintenance Benefits Reduction in brake and tire wear Reduction in drive train wear Accurate Maintenance Scheduling Productivity Benefits Real-time tracking and dispatching Reduction in paperwork Increased driver performance Decrease in unnecessary overtime Decrease in disputes

OMV Petrom HSSE Challenges and Plan

OMV Petrom level initiatives

Seatbelt Programme. Focus areas and objectives

Programme focus areas and key objectives
Increase knowledge and awareness of the benefits

Communication campaign Key activities

of seat belt use, through a communication campaign, in order to maximize the impact of the seatbelt programme. Communicate management commitment, through EB decision and Internal Note, supported by internal regulation applicable at company level

Post-crash bus caravan, depicting interior after collision with dummies and informative labels with injuries. Bus caravan to start in Petrom City HQ and circulate in the main operational locations.

Other Materials:

Increase

accountability of employees, by introducing actions for non-compliance, as regulated by labor legislation and internal rules of OMV Petrom

Monitor programme performance through random

checks involving line management, on a regular basis

10 OMV Petrom HSSE Challenges and Plan

OMV Petrom level initiatives

Preventive and health promotion plans for 2012

Develop new programs and campaigns
NEW SCREENING PROGRAMS addressing other important causes of sick leave days: Liver diseases Respiratory diseases Both screenings will be offered to office and field workers. NEW HEALTH PROMOTION CAMPAIGNS addressing risk factors for spine & joint diseases and cardiovascular diseases: Ergonomic assessment of the workstations (for office workers) Healthy eating campaign (for office and field workers)

Continue on-going initiatives

The cardio-vascular diseases screening and the vaccinations campaigns (flu, TBE and hepatitis) will continue in 2012.

11 OMV Petrom HSSE Challenges and Plan

OMV Petrom EP level initiatives

Petrom EP HSSE Roadshow 2012

Aims
Increasing the level of

Objectives
Show HSSE leadership and

Approach
1 day in each Petrom EP Asset, consisting of field visit and meetings with the local management by the Executive Board member and the HSSE support function Create Safety awareness through movies and break-out sessions Roll-out the HSSE plan 2012

understanding and awareness regarding the importance of HSSE in our daily activity and in our lives.

commitment by top management Create the possibility for the participants to discuss HSSE topics Field visits, get in contact with blue collar to show HSSE is our first priority

A live message coming from top management has an important impact; as a result behaviors will change The participants perception of safety will change both from a professional and personal point of view

12 OMV Petrom HSSE Challenges and Plan

OMV Petrom EP level initiatives

Contractor Management concept in Petrom E&P

Clearly define accountability and responsibilities

Establish individuals (CO/ CH) in charge of monitoring performance, for ensuring a proper management of the contract Hold line managers accountable for contractor HSSE performance Clearly define the responsibilities of all involved departments and train accordingly Update and (re)define standardized HSSE contractual T&C: generic and specific according to activities Simplify and improve pre-award capability assessment, for both existing and new contractors, with the purpose of ensuring the alignment with Petrom standards Monitor performance and take into account when awarding future works Reporting HSSE KPIs as well as technical performance indicators Systematic approach, with clear systems in place Increase site level engagement through increased accountability and communication Workshops, HSSE Forums, open dialog, better coverage of work sites Constant effort to share learnings, educate and raise performance Increase monitoring of sub-contractors and ensure that contractors request same standards from their sub-contractors Senior management leadership for driving culture change in both Petrom and Contractor organization Quarterly senior management meetings with contractors Greater involvement at site level, for setting examples and reinforce monitoring Training for ensuring a better understanding of HSSE matters

Improve contractor capability and performance assessment

Increase awareness and monitoring at operational/ site level

Increase awareness and monitoring at management level

13 OMV Petrom HSSE Challenges and Plan