PDO HSE MANAGEMENT

SYSTEM MANUAL
(CP-122)

Planning and
Procedures
CHAPTER 5

5.1 OVERVIEW
Managing HSE risk and improving HSE performance requires careful planning at all levels in PDO. Goals, objectives, and targets should
be set, with plans established to achieve these. In the event of an unplanned event and/or existing plans go wrong, emergency
preparedness, response, and/or contingency plans should be in place.
An important outcome of HEMP is identifying the key activities that must be controlled if PDO is to adequately manage HSE risks and
planning for them. Procedures and work instructions should be established to manage these activities. These procedures should also
address risk control requirements generated from the HEMP process. A Permit to Work system should be implemented to control work in
areas where the area and/or the work itself is deemed to be hazardous and the associated risk level requires special precautions to be
taken.
This Chapter covers PDOs use of plans and procedures to achieve our HSE goals, objectives, and targets including:

Background information on the HSE planning process (including Corporate and Asset Level HSE Plans, goals, objectives, and targets).

General information regarding planning and procedures for controlling PDOs implementation and operations. More detailed
information is covered in Process 6, Implementation and Operation with respect to day-to-day implementation of plans and
procedures.
General information on emergency response and contingency planning, with links to the detailed documentation.

5.2 REQUIREMENTS
PDOs planning process is the process by which corporate goals, objectives, and targets are agreed and then converted into plans and
ultimately into budgeted activities, and is described in CP 136 Planning in PDO. This document also describes PDOs Annual Planning
Cycle. The purpose of PDOs Annual Planning Cycle is to provide a planning framework for the Company to review, plan, and submit
performance results, future strategies, and investment opportunities to the Companys shareholders and other relevant stakeholders. The
main components of this planning framework are to:

Analyze and report performance from the previous year (including HSE).

Inventory corporate hydrocarbon resources.

Define and confirm the Companys long term aspirations and outline and agree with the shareholders the Corporate Strategies and
Objectives to be set for the following year (including HSE).
Prepare a five year plan of activities comprising investment projects, technology projects, and business improvement activities
which will allow PDO to meet the Corporate Objectives (including HSE), maximizing the long term value of the business and short
term return to shareholders.

Obtain shareholder approval for the programmed activities along with the requisite budgets.

Cascade annual performance goals, objectives, and targets from the Corporate Plan to the teams within PDO (including HSE and
Technical Integrity), and other relevant stakeholders, such as shareholders.

CP-136 Planning in PDO also describes how annual plans cascade through business planning (including HSE planning) and budget
preparation, to integrated activity plans (i.e., 90 day and 14 day plans) and production forecasting.

5.2.1 HSE Goals, Objectives, and Targets

PDO goals, objectives, and targets should be:

SMART Specific, Measureable, Attainable, Realistic, and Trackable / Time-bound, wherever practicable.

Clearly and unambiguously documented.

Communicated to all employees and contractors.

Reviewed regularly to ensure their continuing suitability, adequacy, and effectiveness.

A mechanism for motivating and delivering continual improvement in HSE performance.

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CHAPTER 5

Individual
Tasks and
Targets
Asset
Manager
Mandate

De
ta

il

Asset Level
HSE Plans

of
gL
ev
el
sin

Each Asset Managers single point accountability is

described in their Asset Manager Mandate. This is
updated annually and includes HSE objectives and
targets.
Asset Level HSE Plans establish objectives and targets for each
Asset Team.

PDO
Corporate
HSE Plan

rea
Inc

Every member of PDOs staff has personal

Tasks and Targets that are updated annually
and include HSE.

PDOs Corporate HSE objectives and targets are contained in the Corporate
HSE Plan.
E&P
Program
Objectives

PDO
Business
Objectives
(7)
One HSE
Objective

The Exploration and Production Programme is revised annually. It describes PDOs

business strategies and objectives, and includes a section on HSE.
PDOs overall Business Objectives (described in the Corporate Management Framework)
are developed to ensure that the expectations of the Companys stakeholders are
considered and addressed. For more detail about PDOs strategic objectives, see Chapter
2 of this Manual "Policy and Strategic Objectives."

5.2.2 HSE Management Plans (Corporate and Asset Level)

PDOs Corporate HSE Plan is annual and is prepared within the Annual Planning Cycle. The Plan is designed to meet PDOs Business
Objectives, Company Policies, and its continual improvement objectives.
The Corporate HSE Plan establishes Company-wide performance indicators and annual targets. It also includes a list of action items to be
completed. This Action Plan sets completion target dates and defines action parties.

5.2.3 Activity Planning

Cascading the Annual Exploration and Production Program (including HSE issues) to day-to-day activities is achieved through PDOs
Integrated Planning System (presented below).

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The PDO Integrated Planning System

5.2.4 Emergency Response and Contingency Planning

EMERGENCY RESPONSE
Emergency response is an important part of PDOs HSE Management System. Although every effort is made to ensure that incidents do not
occur, the potential for hazardous events and emergency situations still exists. It is PDOs responsibility to ensure that plans, procedures,
and resources are in place to respond swiftly and efficiently to any emergency situation and to minimize any consequential losses. Anybody
who witnesses an emergency incident must immediately raise the PDO emergency response organization by calling 5555. Once called,
further guidance will be given as necessary on how to manage the emergency situation by the emergency management center.

FOR ALL EMERGENCY RESPONSE SITUATIONS IN PDO

TELEPHONE 5555
Refer to CP 123 Emergency Response Part I and PR 1065 Emergency Response Documents Part II Company Procedure for more
details about PDOs emergency response procedures.
CONTINGENCY PLANNING
A number of assets and activities have been identified as requiring individual emergency response Contingency Plans. These contain
descriptions of high-risk emergency scenarios and plans for how to manage them. Refer to Emergency Response Documents Part III
Contingency Plans for more details about individual PDO Contingency Plans.
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Planning and
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CHAPTER 5

5.3 PROCEDURES
All HSE Critical Activities and their supporting tasks should have written procedures and/or work instructions in place. If these are to be
effective, they should be simple, unambiguous, understandable, relevant, and detailing clear roles and responsibilities. More detail
regarding their actual implementation is found in PDO HSE-MS Process 6 Implementation and Operation.
In addition to controlling activities and tasks, it is important that procedures include measures aimed at improving HSE performance or
managing HSE risk. It is also important to consider how work instructions are communicated to the workforce ahead of job execution (e.g.,
through Permit to Work Systems).

5.3.1 Developing Procedures

Any activity for which the absence of written procedures could result in violations or deviations to the PDO HSE Policy, breaches of legal,
regulatory, and/or other requirements, and/or performance criteria, should be identified. Documented procedures and/or work instructions
should be prepared for such activities, defining how they should be conducted whether by the company's own employees, or by contractors
acting on its behalf to ensure technical integrity and to transfer knowledge effectively. In addition, not carrying this out risks the issuance of
a non-conformity with respect to PDOs ISO 14001 certification.
All written procedures should be stated simply, unambiguously, and understandably, and should indicate the persons responsible and
accountable (i.e., use of RASCI), the methods to be used and, where appropriate, performance standards, and other relevant criteria to be
satisfied.
Procedures are also required for procurement and contracted activities, to ensure that suppliers, contractors, and those acting on the
company's behalf comply with the company's policy requirements that relate to them.
It is important to ensure that those who will be responsible and/or accountable for putting procedures and written instructions into effect are
closely involved in their creation, implementation, monitoring, and review with the active engagement of affected stakeholders. Clarity and
simplicity of style and language are the characteristics to aim for in writing them, consistent with accurate coverage of the activities which
they address. For example, effective procedures and work instructions contain several important features:
1. Start with a statement of
purpose and task importance.

This is included to increase motivation and understanding, and thereby retention and
conformance. In other words, explain why the worker should comply with the standard practice.
Relate it to the workers own welfare. Build a bit of pride and safe behavior into the document.

2. Present the task in a step-bystep approach.

Define HOW to proceed. It is best to embed and reinforce in the relevant steps the most
important HSE-related rules. Keep these as short and simple as possible; give the reasons for
the rules and focus on the critical few.

3. Express what to do positively.

Rather than a long list of donts, highlight the things that the person can do to ensure efficient,
safe, and productive results. Keep the thou shalt nots to a minimum. Emphasize the positives.

4. Explain the reasons for the

steps.

They answer the question why? As such, they also point out the most probable sources of
problems for the specific task, the things to which special HSE attention should be paid.

5. Print / publish in a simple and

functional format.

Since procedures are primarily teaching and learning tools, they must be clear, concise, correct,
and complete.

6. Ensure review and feedback.

Determine periodical review frequencies for task procedures to ensure continual improvement.
Ensure feedback of both commendation and correction is communicated to all relevant parties.

In addition, documents authors should pay attention to:

Sentence structure: Avoid compound and run-on sentences. Comprehension is usually hindered by long sentence structure.

Use of words: Avoid using words and language that the average reader may not be familiar with. Don't try to impress people with
the use of unnecessary tri-syllable words. Try to avoid using words that make suggestions appear to be edicts. Use words like I,
You, We, They, as little as possible and seek to avoid repetitious use of words. The author should always reread the entire
document before having it issued to detect overused words as well as errors that may have been unintentionally made.

Sequence of suggestions: The author should attempt to present and layout the document in a logical way which will facilitate their
implementation. Use of standard PDO templates facilitates this process, and these can be accessed in the PDO CMF.
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Providing instruction on the conduct of worksite tasks can take many forms, depending on the complexity of the task, the competence of
the people performing it, the inherent hazards and risks associated with it, and the effects that it might have on other aspects of the
operation or facility.
Thus, verbal instructions will need to be supported with, or replaced by, written procedures or work instructions wherever the absence of
written material could threaten proper HSE performance. Written work instructions will outline the work scope and reference any particular
direction that is to be followed; similar considerations to those for system procedures also apply to their development. Monitoring and other
HSE requirements, such as applicable rules and personal protective equipment, can be specified in these documents as well.
For example, in a production facility where hydrocarbons are stored and/or produced, stringent controls are required and most work is
conducted under a 'Permit-to-Work' system. Within this, the work is defined, the precautions specified, other parties whose activities may
be affected are notified, and the permit signed off properly by all parties involved. However, supplementary documentation is also often
required in the form of job safety / hazard analyses, procedures, and/or work instructions for the task(s) itself.

5.3.2 Issuing Procedures / Work Instructions

Procedures and/or work instructions define the manner of conducting tasks at the work-site level, whether conducted by the company's
own employees or by contractors acting on its behalf. In the case of HSE Critical Tasks, which have the potential for adverse HSE
consequences if incorrectly performed, these procedures and/or work instructions should be documented, communicated to relevant
personnel, and be subject to the requirements of PDOs document and records control system. Use of standard PDO templates facilitates
this process, and these can be accessed in the PDO CMF.
The activities which can be described as 'HSE Critical' must have procedures and/or work instructions. An HSE Critical activity is any
activity that is undertaken to provide or maintain controls for RAM 3+ consequences. For more information on the PDO RAM, see PR1418.
In situations such as projects and/or major contracts where PDO is the overall accountable party, HSE Critical activities will also be
identified as such areas where documented procedures are particularly necessary (as opposed to an absence of documented procedures)
in order to cover interfaces between different groups or disciplines and where coordination is vital to achieve successful HSE outcomes.
This often requires the use of a bridging document.
For example, one or more parties may be using their existing procedures, either from PDO or the Contractors organization to carry out a
work activity, yet these procedures do not completely cover the identified risks and contingencies in the work activity. In such a case,
another document is often required to bridge the gaps so as to cover what is needed to be done to completely cover all risks and
contingencies in the work activity. In addition to the points made above, procedures and/or work instructions should be:

Subject to a regular and formalized system of review, update, approval, and re-issue.
Dated and traceable to the activity involved.

Identified with a custodian.

Accessible to all relevant personnel (not just physically evident but user-friendly and well indexed, either in soft- or hardcopy).

5.3.3 Accountability and Responsibility for Operational Control

Asset Directors have single point accountability for the day-to-day management, performance, and development of all assets. This
accountability includes controlling operations in a way that manages the HSE risks associated with each asset. The Asset Director
Mandate describes the assets over which each Asset Director holds single point accountability. An asset may be passed between different
Asset Directors during its life cycle.
Service Level Agreements (SLA) specify the nature, scope, roles, responsibilities, and accountabilities for the essential services to be
provided by and for each party under the SLA. These also define the boundaries of operational control for each party / Asset Director.
Contract Holders are accountable for specifying the applicable procedures and work instructions for Contractor activities, and for ensuring
that they are complied with. Refer to PR 1171 Contract HSE Management for details about controlling and monitoring Contractor activities.
Operational control documents (written procedures, work instructions, and/or specifications) within PDO are generally authored along
Functional lines. When authored, the various roles, responsibilities, and accountabilities should also be clearly stated in the document,
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with use of the RASCI approach to ensure clarity. It is the accountability of individual Asset Directors to implement these documents within
their Directorate Teams.

5.3.4 DCAF
To further assist and improve planning processes, PDO also implements the Discipline Controls and Assurance Framework, or DCAF.
This framework helps to standardize Quality Control (QC) and Quality Assurance (QA) across all disciplines. Both Controls and Assurance
are covered in DCAF and its associated documentation. DCAF consists of three elements:
1.

Discipline Standards: Standards (global and local) that lists all discipline
deliverables that need sign-off by an authorized individual. Note that
DCAF does not set the standards, the relevant Disciplines do.
Discipline Authority Manual: A list of individuals with their respective
authority-levels.
Project / Asset Controls and Assurance Plan: A plan, listing what needs
to be controlled or assured per the Opportunity Realization Process
(ORP) phase. Controls are routine, risk-based (refer to Process 4,
HEMP), internal steps to confirm the effectiveness of a prescribed
process or activity. Assurance is an objective and independent review
(refer to Process 7, Assurance) to ensure goals, objectives, and targets
are met, and policies, procedures, and processes are adhered to.

2.
3.

DCAF provides clarity; which decisions and deliverables must be quality controlled / assured and who is authorized to do so. It recognizes
both the Line of Sight and the Matrix as sign-off occurs in the line of the Business, while Disciplines are responsible for providing
standards and authorized and expert staff. In PDO, the Disciplines set the standards; DCAF does not. More access to DCAF can be
found in the following link: http://sww.shell.com/ep/dcaf

5.3.5 Management of Change (MOC)

PDOs requirements for initiating, planning, controlling, and closing out changes within its operations (both temporary and permanent), in
people, plant, processes, and procedures, are addressed mainly through the Technical Integrity system and its associated procedures,
operations procedures, as well as variance control procedures for projects.
The purpose of Management of Change in PDO is to manage the HSE risks resulting from unforeseen consequences of changes. This
applies to all employees and contractors in PDO, but is led by Managers and Management of Change process owners. In PDO,
management of change applies to process changes (hardware, process control and process condition changes), procedural changes, and
organizational changes (both PDO and contractors).
Management of Change includes the following activities:

Appointment by PDO leadership of a management of change Process Owner(s).

The MOC Process Owner should be responsible for implementation of the following:

Ensure that all HSE Critical Roles / Positions know how to recognize changes covered by this manual.

Know how to initiate the management of change process, based on the type of change involved (procedural, engineering,
organizational, or combination thereof).

Establish and maintain documented Management Of Change Procedures to cover permanent changes, temporary changes, and
emergency changes, which:

Define Change Approval Authorities and communicate who they are.

Describe the stages in the Management Of Change process and approval steps:
-

review and approval of the concept or proposal,

review and approval of the design or plan, including Hazard screening and Risk analysis,
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review and approval of any scope or design changes arising during the work,
readiness review, handover, and acceptance for use, and
close-out and learning capture.

Inform and train the people affected by the change about what they have to do differently.

Manage Temporary Changes, including expiry dates and approval for extensions.

Manage Emergency Changes, including authorization to postpone the MOC process until control is regained.

Track the development and progress of change proposals from initiation to closeout.

In the MOC process, it is important to recognize that all changes have a source. These sources are many and can include:

Corporate requirement
Budgetary / financial needs

Engineering modification
Operational needs and expenditures

Accidents / incidents / emergencies

Competency gap

Hazard identification and risk assessments

Strategy / policy / objective change

Merger / Acquisition / Divestment

Legislation / regulations

Recognized need to improve

Capital expenditure project
External influence
Inspection / audit / assessment findings

Inadequate systems, procedures, processes, practices

Opportunity analysis

Problem solving results

Anything deemed as new and required by PDO.

The change source and the request to make the change, if approved, then requires careful planning. The major outcome of this activity
should be a documented, risk-based Change Plan.
At PDO, the relevant management of change procedure(s) used should include requirements for preparing change plans and control the
process up to this stage. These procedures should be suitable to address the HSE issues involved, according to the nature of the changes
and their potential consequences, and should deliver change information addressing:

Identification and formal approval of the proposed change,

Documentation of the proposed change and its implementation for its entire life cycle, guaranteeing sufficient traceability and
history of the change over time,
Responsibility and accountability for reviewing and recording the potential HSE hazards from the change and its implementation for
its entire life cycle,
A documented Change Plan, including change communication requirements and change goals, objectives, and targets for action
tracking, verification, and close-out.

In PDO HSE-MS Process 6, Implementation and Operation, general requirements for implementation of the change is presented.

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5.3.6 Technical Integrity

Technical Integrity and management of HSE risks are closely linked. Maintaining Technical Integrity is a key element of Process Safety
Management, the overall PDO HSE-MS, and is a major control mechanism to prevent and mitigate loss of containment and high risk
process hazards (i.e., those with Severity 5 in the PDO RAM).
PDO has chosen to align and measure its process safety management system and activities, including technical integrity, with The Center
for Chemical Process Safety (CCPS) and their 20 Elements for Process Safety. These elements include, 1) Process Safety Culture;
2) Compliance with Standards; 3) Process Safety Competency; 4) Workforce Involvement; 5) Stakeholder Outreach; 6) Process
Knowledge Management; 7) Hazards Identification and Risk Analysis (Renamed by PDO as Hazards and Effects Management Process HEMP); 8) Operating Procedures (Renamed by PDO as Plant Operating Procedures); 9) Safe Work Practices (Renamed by PDO as
Permit to Work); 10) Asset Integrity and Reliability (Renamed by PDO as Technical Integrity); 11) Contractor Management; 12) Training
and Performance Assurance; 13) Management of Change; 14) Operational Readiness; 15) Conduct of Operations; 16) Emergency
Management; 17) Incident Investigations; 18) Measurement and Metrics; 19) Auditing; 20) Management Review and Continuous
Improvement.
These Elements are embedded in the overall PDO HSE-MS and address Process Safety as and where relevant to PDO operations,
assets, and activities. PDO has developed various types of documentation (Codes of Practice, Procedures, Specifications, Guidelines,
etc.) to address Technical Integrity, and these are listed in the References section of this process chapter and others as relevant.
The PDO Technical Integrity system addresses areas such as design integrity, start-up, operating integrity, structural integrity, process
containment, ignition control, and systems for protection, detection, shutdown, emergency response, and life saving. This system ensures
that HSE critical facilities and equipment which are designed, constructed, procured, supplied, commissioned, operated, maintained,
and/or inspected by PDO are suitable for their required purpose and comply with defined criteria. Only designated personnel can permit
deviation(s) from approved technical integrity design practices and standards, and after a rigorous review and approval process, using the
Management of Change process and relevant procedure(s). This is shown in the barrier diagram below.

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5.3.7 Permit to Work

The objective of PDOs Permit to Work System is: "To provide a system to ensure that both routine and non-routine hazardous
activities can be implemented and operated in a safe manner."
To achieve good HSE practices in the workplace, the Permit to Work System must ensure that everyone is aware of the hazards involved
in their work, and of the precautions that they must take to work the right way, the health way, the safety way, the environmental way,
and the productive way. PDOs Permit to Work System is described in detail in PR 1172 - Permit to Work System procedure.

5.4 REFERENCES
The following documents provide further / related information on Planning and Procedures:

PDO Policies

PL-03 Risk and Internal Control

PL-04 Health, Safety, and Environmental Protection
PL-09 Human Resources
PL-10 Security and Emergency Response
PL-11 Asset Integrity and Disposal

PL 03
PL 04
PL 09
PL 10
PL 11

PDO Codes of Practice

CP-107 Corporate Management Framework

CP-114 Maintenance & Integrity Management
CP-115 Operation of Surface Product Flow Assets
CP-117 Project Engineering
CP-118 Well Lifecycle Integrity
CP-123 Emergency Response Documents Part I
CP-126 Personnel and Asset Security
CP-136 Planning in PDO

CP 107
CP 114
CP 115
CP 117
CP 118
CP 123
CP 126
CP 136

PDO HSE Procedures

PR-1065 Emergency Response Documents Part II

PR-1171 Contract HSE Management Part I
PR-1171 Contract HSE Management Part II
PR-1172 Permit to Work Procedure
PR-1322 Asset Register Master Data Maintenance
PR-1418 Incident Notification, Reporting and Follow-up Procedure
PR-1972 Safe Driver
PR-1973 Safe Vehicle
PR-1974 Safe Journey

PR 1065
PR 1171
PR 1171
PR 1172
PR 1322
PR 1418
PR 1972
PR 1973
PR 1974

PDO HSE Specifications

SP-1127 Layout of Plant Equipment and Facilities

SP-2001 Load Safety and Restraining

SP 1127
SP 2001

PDO HSE Guidelines

GU-611 PDO Guide to Engineering Standards and Procedures

GU-648 Applying Process Safety in Projects

GU 611
GU 648

Other PDO Documents

No direct link exists and/or is required.

--

Shell Group Documents

Shell HSSE & SP Control Framework, Version 2, (Shell Group Standards for
Health, Security, Safety, the Environment & Social Performance)

December 2009

Other Documents

International Standard for Environmental Management Systems

Occupational Health and Safety Assessment Series
The Center for Chemical Process Safety (CCPS - www.aiche.org/ccps)

ISO 14001:2004
OHSAS 18001:2007
CCPS 2010
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