One HSE MS for EP integrated within an EP-MS 25 HSE Global Processes

1. One HSE MS for EP(integrated within an EP-MS) 25 HSE Global Processes 1 HSE elements of the EP MS 2 

2. 2 Mission / Vision for HSE

3. 3 Why are they important My 3 year + aspiration for HSE in Shell EP Shell EP No more �surprise� significant incidents Recognised Shell E&P signature in HSE management across operations Standardised in key risk area�s Collaboration X-regions, pull for standardisation Risk management truly balanced and practised ALARP practised and used by seniors leaders Behaviours Pro-active culture throughout Individual staff understand and accepts role Interventions are natural Staff with HSE critical roles are assessed and assured competent HSE-MS fully integrated in the Common MS including EPBM processes Policy states that staff has �duty to intervene� rather then a �right to stop� an activity HSE is used as the lever for change HSE Competent, experienced and respected cadre of professionals Strong positive influence in business Crew change has commenced, due regard for long term diversity Portfolio of global and regional/local HSE issues is transparent and actively worked Supporting modern portfolio of IT processes HSE defined as risk area and business process in EPBM

4. The 25 HSE Global Processes (one HSE-MS for EP) 4 HSE Global Processes

5. 5 EP Global HSE standards and procedures (Integrated in the EP MS)

6. 6 Managing the transition

7. 7 EP2005-0000 (update of EP95-0000)

8. 8 EP2005-0000 (update of EP95-0000)

9. 9 EP2005-0000 (update of EP95-0000)

10. 10 25 HSE Global Processes http://sww.siep.shell.com/hse/hse_ms/process.htm

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13. 13 Behaviour HSE

14. 14 Bringing the HSE-MS to Life and Beyond - Personal Responsibility We understand and accept what should be done and know what is expected of us. be "crystal clear" in our HSE expectations know exactly what you expect of others and what others expect of you how to deliver on those commitments have the skills and competence to do it. Attributes CMS identifies risks and controls Roles made crystal clear for everybody Create passion through 1 to 1 discussion of Roles and responsibilities �Top Seven� priorities identified People accept roles and want to be held accountable through personally meaningful performance contracts that drive new behaviours

15. 15 Bringing the HSE-MS to Life and Beyond - Clarity of Individual Consequences We understand and accept that there is a fair system for reward and discipline. Staff appraisal systems reflect the aspired HSE goals, rewarding those who deliver but with the appropriate mechanisms in place when coaching is needed. Unsafe acts at all levels must be dealt with immediately in a just, fair and transparent way.

16. 16 Bringing the HSE-MS to Life and Beyond � Hearts and Minds We work safely because we are intrinsically motivated to do the right things naturally, not just because we are told Supported by a set of high quality tools which are available to Shell companies in the form of controlled packages of brochures, slide presentations, instructions etc. Understanding your culture Managing Rule Breaking Risk Assessment Matrix Making Change Last Improving Supervision Seeing � as others see you Driving Safely Working Safely Achieving situation awareness- The Rule of Three

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20. 20 HSE Competence Workgroup proposal Group definitions for 28 HSE Competence elements Definition 2 categories of HSE critical roles need to address HSE competence of senior leaders Generic HSE Competence profiles for HSE Critical roles HSE Competence profiles for HSE Advisory roles HSE Competence Assessment and Assurance process Subsequent action Update Group HSE-MS Issue new Yellow Guide with HSE Competence elements and assessment / assurance process HSE Council endorsement and CMD report out Business implementation 2004 - 2005 Outstanding action Supporting self learning modules to support the above Use base packages Chemical and modify over next 3 month General linkage HSE learning and development to above Planned for 2004 / 2005 HSE Competence Assurance for HSE critical roles: Summary Proposal

21. 21 Non-HSE competence of staff with HSE Critical roles Overall competence not limited to HSE competence, own professional discipline and leadership competences will need to be assured Consequence of �not yet competent� Level 1 Can�t carry out role when assessed �not yet competent� without supervision Level 2 and Senior Leadership roles Need support when making decisions / performing tasks Top-down approach of establishing a network of approved assessors in each Business and BU Primarily line supervisors / managers, and specialist Will need their assessment and training to assess others Effort required to implement Level 1 assessment and assurance ongoing, expected minimal impact Level 2 significant Shell People Requires upload competences and generic profiles, awaiting other functions Gain oversight local entries HSE Critical roles requirement in Shell People HSE Competence focal point for Shell People in PXE HSE Competence Assurance for HSE critical roles: Implications of the Proposal

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23. 23 Contractor HSE Management: integration into SCM process

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28. HSE HEMP Minimum Standards

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31. 31 Logistics: Land, Water & Air transport plus Lifting and Slinging

32. 32 2003 fatalities YTD

33. 33 2004 fatalities YTD

34. The 25 HSE Global Processes (one HSE-MS for EP) 34 Road Transportation Global HSE Minimum Standard

35. The 25 HSE Global Processes (one HSE-MS for EP) 35 Road Transportation Global HSE Minimum Standard

36. The 25 HSE Global Processes (one HSE-MS for EP) 36 Road Transportation Global HSE Minimum Standard

37. The 25 HSE Global Processes (one HSE-MS for EP) 37 Road Transportation Global HSE Minimum Standard

38. The 25 HSE Global Processes (one HSE-MS for EP) 38 Road Transportation Global HSE Minimum Standard

39. The 25 HSE Global Processes (one HSE-MS for EP) 39 Road Transportation Global HSE Minimum Standard Implementation Challenge The largest target population in the EPS-HSE global processes (28,000 staff and 90,000 contractors � we are all a work related driver or a passenger at some point). How can we reach this target population? Implementation of local Operating Company standards and full compliance of thereof on road safety has not been successful. How can we get to full compliance?

40. The 25 HSE Global Processes (one HSE-MS for EP) 40 Air Transportation Global HSE Minimum Standard

41. The 25 HSE Global Processes (one HSE-MS for EP) 41 Lifting and Hoisting Global HSE Minimum Standard

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47. 47 22 HSE Performance Monitoring and Reporting Group PMR / EP 95 0325 Upgrade

48. 48 Project Fountain Contents What is it? � Introduction Why standardise? - The business drivers Where are we now? � Current state of play Long Term Plan

49. 49 Project Fountain � Introduction A common HSE Knowledge, Information and Data Management System for EP, implemented in 2004 (environmental component 2005) Which will make data collection and collation transparent, more accurate, quicker, simpler and more efficient It will turn data into information and finally into knowledge to fuel performance improvement

50. 50 Drivers for Project Fountain HSE data now ranks with Financial / Production data in the overall Shell Group External Reporting cycle - very tight deadlines Struggle to deliver the data at the required standard within the deadlines, with the range of incompatible systems in place at the moment Efficiency from Standardisation of systems, Sharing of a single system, Simplification of the process, and Speeding up by cleaning and streamlining Improved functionality to turn data into information into knowledge which can be acted on to fuel performance improvement A flagship project for the new way of working Facilitate lateral learning from incidents and benchmarking thus creating targeted solutions leading to improved HSE performance Global Contract - From typically 80-100 USD -> to less than 30 USD per license

51. 51 Drivers for Project Fountain (continued) Less auditing effort � possible savings of up to 50% of USD 4M Group annual costs Single point support, upgrade � Server in Amsterdam Phase out 40 of the existing 170 plus systems Reduce development costs of many systems to focus on one Standardised Training, Guides, Version control Reduce non value activities - data entered only once Less Stress to meet tighter deadlines � automated, links to global/local systems Speed up Global solutions to local problems Small OU�s get sophisticated Tool Level with Financial/HC systems

52. 52 Current Status Project Fountain Set up Steering Committee (SC), Regional Project Team, Environmental Sub Team Terms of reference agreed Three key milestones passed � Decision Points 1-3 SC has Endorsed one common HSE IT system across EP It will consist of 3 components Health and Safety Performance Monitoring, Incident reporting & Follow up Environmental performance Monitoring and GHG Trading Knowledge Management Software selected for Incident and Knowledge components Commercial Council supported Dec 03 to award Incident Reporting contract Environmental Implementation Team chartered Consolidating functional specification with GHG Emission Traders Technical and commercial evaluation of preferred vendor Knowledge management system global contract is being set up and product is being upgraded with additional generic functionality

53. 53 Fountain - Incident reporting

54. 54 Global Application with Local �Fit to Business�

55. 55 Sample Incident Workflow Process

56. 56 Fountain � Knowledge Management It stores critical activity and hazard information specific to OUs, communities, disciplines and projects. It enables users to cut and filter this information to show accountabilities for individual positions and provides access to HSE alerts and incidents. It facilitates the linkage of HSE alerts, incidents and near misses to the HSE MS structure itself. Hence, those events are brought to the attention of individuals who may benefit from the learnings associated with these items. Tracking is available to ensure effective communication. It�s also possible to keep a history of HSE performance related to each element of the activity and hazard management structure (primarily critical tasks, hazard barriers and recovery measures), providing input to project planning and future hazard assessments.

57. 57 Fountain Knowledge Management

58. 58 Fountain Recommended Scope Out SD (HSE covered, rest in Production, Finance, EA, HR) Chemical datasheets (Group and outsourced) Medical records on advice from Shell Health Services In Incident investigation, classification & reporting, environmental accounting (GHG ETS), HSE performance monitoring, waste management, chemical management, knowledge management, audit documentation, standards, procedures and best practices and business planning & critical review Automatic links where possible Enter data only once philosophy

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62. The 25 HSE Global Processes (one HSE-MS for EP) 62 HSE Global Processes

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64. 64 Extended HSE GLT Mandate Standardise and drive, through HSE Global Processes, consistent implementation of global HSE policies, strategies, standards and tools across EP delivering risk reduction Custodian of global HSE standards and HSE elements EP Common MS Ownership HSE business policies EP CEO, ownership HSE standards, procedures EPS Sharing of best practices and make HSE standards accessible to front line staff Set strategy for HSE and contribute to overall EP strategy set prioritised action plan accordingly Drive efficiency Simplify, remove duplication, improve speed of implementation of global processes, cost benefit (avoidance of loss) HSE skill pool management and deployment across regions Act as conscience of CEO/EXEC or RLT on HSE and emerging HSE issues Inspire HSE passion and support HSE behavioural programmes Accountable to : EPS / RSD EXEC / RLT