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Introduction

Purpose of Presentation.

Provide an update on the Development of theEnergy Institute High Level Process Safety

Management Framework The need.

The outline of the Framework Implementation and further development of the Framework

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Background

EI Process Safety Committee identified benefit in promoting acommon high-level framework for Process Safety Managementacross the energy industry sectors.

Proposal received very high level of support during 2009 workprogram development

Development Approach

Workshops with participants representing a cross sectionof the Energy Sector including the HSE.

Challenge & Validate need for a Process SafetyManagement Framework.

Identify what we need from a PSM Framework Define the scope & detail of Framework

Subsequent wider interest group review

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The Need

Workshop participants supported the need for a

High Level Framework for Process Safety Management. Provide a vision for PSM

Define a model for and raise profile of PSMwithin a company

Define what needs to be in place to maintainLicence to Operate

Help to define roles, responsibilities

& accountabilities for PSM Easy to understand how to achieve suitable PSM

Provide a basis for benchmarking

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Process Industry

Challenge

Net

Income

Income Expenditure

Feed

Selection

Plan

Operation

Set-up

Operation

Facility

Availabi li ty

Maintce

Cost

Energy

Use

Cats &

ChemsLoss People O/head

HSECompliance

Operational

Integrity

Investment Personnel Development

Integrity of operation

Maximise Income

Minimise Costs

Effective Capital Investment

Effective People & Organisation

Integrity of operation

Maximise Income

Minimise Costs

Effective Capital Investment

Effective People & Organisation

Dont Hurt Anyone

Dont Harm Environmentx % ROCE

What we needto Achieve

How we

Achieve i t

Flawless Operation Flawless Operation

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PSM in Context

NetIncome

Income Expenditure

Feed

Selection

Plan

Operation

Set-up

Operation

Facility

Availabi li ty

Maintce

Cost

Energy

Use

Cats &

ChemsLoss People O/head

HSECompliance

Operational

Integrity

Investment Personnel Development

Dont Hurt AnyoneDont Harm Environment

x % ROCE

Flawless Operation Flawless Operation

PSM Framework need to enable us to answer two key questions

with confidence

1. How will we assure the integrity of the operation?

2. How will we know . we are doing it ?

What we need

to Achieve

How we Achieve

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PSM Framework

Structure

Focus Areas High level key components ofthe Framework.

Elements The key aspects of theoperation we need to get rightin order to assure the integrityof the operation.

Expectations Expectations define what weneed to get right in eachElement.

Increasing

Deta

il

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Process Safety Leadership

Elements of PSM

RiskIdentification

Risk

Management

Review&

Improvement

AssuredOperational

Integrity

ProcessSafety

Leadership

01. Leadership Involvement & Responsibility

02. Identification & Compliance with Legislation& Industry Standards

03. Employee Selection, Placement &Competency Assurance

04. Workforce Involvement

05. Communication with Stakeholders

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Risk Management

Elements of PSM

RiskIdentification

Risk

Management

Review

&

Improvement

AssuredOperational

Integrity

ProcessSafety

Leadership

08. Operating Manuals & Procedures

09. Process Monitoring

& Operational Status Handover

10. Management of Operational Interfaces

11. Standards & Practices

12. Management of Change & Project Management

13. Operational Readiness & Process Start - up

14. Emergency Preparedness

15. Inspection & Maintenance

16. Management of Safety Critical Devices

17. Work Control , Permit to Work & Task RiskManagement

18. Contractor Selection & Management

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Review & Improvement

Elements of PSM

RiskIdentification

Risk

Management

Review&

Improvement

AssuredOperational

Integrity

ProcessSafety

Leadership

19. Incident Reporting & Investigation

20, Audit, Assurance and Management Review & Intervention

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Elements of PSM

01. Leadership Involvement & Responsibility

02. Identification & Compliance with Legislation

& Industry Standards

03. Employee Selection, Placement &Competency Assurance

04. Workforce Involvement

05. Communication with Stakeholders

06. Hazard Identification & Risk Assessment

07. Documentation, Records &Process Knowledge Management

08. Operating Manuals & Procedures

09. Process Monitoring& Operational Status Handover

10. Management of Operational Interfaces

11. Standards & Practices

12. Management of Change

& Project Management

13. Operational Readiness& Process Start - up

14. Emergency Preparedness

15. Inspection & Maintenance

16. Management of Safety Critical Devices

17. Work Control , Permit to Work& Task Risk Management

18. Contractor Selection & Management

19. Incident Reporting & Investigation

20, Audit, Assurance and Management Review& Intervention

F k

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Framework

Implementation

& Further Development

Implementation

Framework will be published early 4Q 2010

Available online via EI Website

Benchmarking Survey to be launched 1Q2011

Online subscription service

Self assessment against defined criteria

Under Consideration:-

Develop Guidelines on how to meet Expectations To be included in 2011 Budget Proposal

Compliance / Assessment Verification Service

Launch 4Q 2011 dependent upon demand