INTEGRATED RISK BASE

PROJECT HSE

Iwan Jatmika,
VP QHSSE PT. Pertamina Hulu Energi
Jakarta, Oktober 2014

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 AGENDA

• WHY HSE?
• WHAT IS PROJECT
• PROJECT HSE RISKS MANAGEMENT

2
 Kenapa Kita Memerlukan HSE?
Sebagai kewajiban moral terhadap penghargaan hak assasi manusia
untuk bekerja aman, tidak mencemari dan menjaga kelestarian alam,
dan kesejahteraan masyarakat luas

Sebagai kewajiban perundangan (Licence to Operate) dan tatakrama

dunia industri internasional dalam perusahaan menjaga Code of
Conduct dan Good Corporate Governance

Sebagai penopang kesuksesan kegiatan bisnis yang berkelanjutan

dengan mendemonstrasikan kemampuan manajemen resiko,
kepemimpinan yang bertanggung jawab, dan profitability dikarenakan
efficiency dan effectivitas dalam pengelolaan dan pengoperasian
dengan minimum disruptions (un-planned shutdown, incident, dll).

Bagaimana kinerja QHSSE dilaksanakan?

• Manajemen Lini bertanggung jawab terhadap kinerja QHSSE di area kerja masing-masing
• Fungsi HSSE adalah membantu Lini memfasilitasi, memastikan/assurance dan menjadi
penasehat teknis dalam pelaksanaan terlaksananya pekerjaan yang memenuhi aspek-aspek
QHSSE
• Kolaborasi antara Leadership Team, Pekerja dan Fungsi Support (HR, HSSE, SCM, Relation, dll) dalam
membuat safe operations culture – Dr. Dominic Copper
 Company HSSE Culture (ref. OGP)
Generative Organization have a high degree of self-sufficiency and strive to understand
their entire operating environment risks. Everyone feels free to highlight both
World Class
real and potential issues. Workers feel empowered to resolve HSE issues,
and leaders provide the support needed. HSEMS is integrated with broader
operating aspect consideration.

Proactive Organizations considers HSE a fundamental value and leaders at all levels
genuinely care the HSE for staff and contractors. Understand that failure of
management system as primary causes of incidents. Incident lesson learned
to identify suitable performance target. Continuous improvement is a clear
goals. Full implemented HSEMS and the requirement have become integrated
into normal workers activities.

Calculative Organization believes in the value of HSEMS in managing HSE performance

and the used of tools and trainings. The focus on the tools is usually through
analyzing metrics/ compliance rather than their effectiveness. HSE
professional are seen as the drivers for the use of the tools and are primarily
responsible for the HSE performance.

Reactive Organization considers HSE important but believe the most problem lie within
lower level workforces. Only react to the obvious problem (accident happens)
and difficult to justify tools/ issues that have not yet caused actual incidents.
Do not recognize the need of HSEMS except when the are required by
regulation.

Pathological Organization believes that workforces cause incidents. HSE is considered an

obstacle to operations. Tools dealing w/ management system issues are
unlikely to be adopted. HSE Programs is implemented to avoid persecution4
Strong HSSE Performance & Culture are TOP DOWN
Approach:

HSSE Leadership
Commitment:
• Set Policy, Culture, and Standards
Expectations
• Be role model/ Reward and disciplinary
Intervention Feasibility
• Provide Resources and Infrastructures
• Communicate the expectation and
Motivate to achieve
• Supervise, coach and performance
measurement

Persistency:
Robust Implementation:
• It’s about journey
• It’s about endurance • Effective Business Process &
• It’s about life time performance! Management System
• Team Works • Organization Capability and Competency
• Safety is every body responsibility Assurance
• It is about continuous risk reductions • Safe System Of Work Tools & Procedures
and continual improvement • Performance Measurement &
• No short cut and Zero Tolerance Monitoring, including Audit &
Evaluation
 Up Stream HSE Risks Reduction
Exploration:
• Seismic Operation
• Drilling Activities
Exploitation:
• Field Development
• Drilling Development
• Front End Loading Production Facilities
• Front End Engineering Detail
• Procurement, construction & installation
• Commissioning & handover
• Operational activities
• Decommissioning
HSE Risks
PROJECT HSE RISK MANAGEMENT

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 Production Facility Development Stages
Appraise Select Define Execute Operate

Industrial FEL FEED

termino- EPCI-Operate
logy (Front End Loading) (Front End Engineering
Design)

Gov. of Ind.
SKKMIGAS Studi Kelayakan
dan POD/ AFE Rekayasa Konstruksi Operasi

1. Law/Regulation 1. Process safety Design 1. Detail Design/ 1. Commissioning.

2. Standard s& Specifications 2. Organization fabrication 2. 1st Year Operation
3. Local Government req. 3. AMDAL RKL/RPL 2. Start Up/ Pre- Review
4. HSSE Demography Commissioning 3. Facility Integrity
5. Environment Base Line 4. Preventive Maintenance
6. Inherent Design 5. PROPER

Any Contracted Work – CSMS is applied

• Nature of the work and Plant/ Facility Development complexity
• Technology and Market Availability
• Contractual Terms and Conditions Comprehensiveness
• Worksite environment
• Amounts of material and equipment
• Number of personnel involved and their levels of participation
• Numbers of contractors involved and their potential interactions
• Length of the work execution exposures
• Variations in the levels of skills and competencies of the
personnel and contractors
• Anticipated worst case consequences and what levels the public
can accept or tolerate them
 HSSE Risk Management - E&P Asset Life Cycle
Exploration & Production Life Cycle
Exploration / Appraisal Development Production & Abandonment
Maintenance
Survey Operations

Development Plan

Abandonment &
Commissioning

Operations &
Detail Design

Maintenance
Development
Fabrication
Exploration

Hook-Up &
Installation
Conceptual

Disposal
Drilling

Drilling
HSSE RISKS ASSESSMENT Design

DEV & DETAIL DESIGN FABRICATION, OPERATIONS ABANDONMENT

EXPLORATION ACTIVITIES
CONCEPTUAL • EIA including SIA INSTALLATION, HOOK UP • PHA • EIA including SIA
• Environment Impact Assessment
• Conceptual and/or HIA & COMMISSIONING • Major Hazard and/or HIA
• Safety Impact Assessment
HAZID / • PHA • Project HSSE Review/CVP assessment • Major Hazard
• Security Impact Assessment
HAZOP • Major hazard • TRA • Activities HSE Risk assessment
• OH/IH Impact Assessment
• Explore assessment • PSSR/PSR Assessment • PASR
• PHA/Process Hazard Assessment
Inherent • Ergonomics / • JHA • Activities HSE
(for exploration drilling)
Design Human Factor DEV DRILLING • PASR (Proses Act Risk Assessment
• Seismic & Drilling HSSE Risk
Engineering Engineering • EIA including SIA Safety Review) • JHA
Management
APPRISAL Assessment and/or HIA • HSE risk
• Subsurface Hazards Assessment • FMEA/ FMECA • PHA assessment related
• Geopolitics / Socials Ass. • QRA • Activities HSE Risk to simultaneous
• Regulatory & Standards Assessment operations
Technology • JHA

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 Common Examples of Failures in Managing
HSE Risks of Contracted Works

• Focusing only on the obvious occupational (personal) and construction safety hazards and
risks, however, fail to address the Conceptual and “Process Hazards & Risk ” in early FEL
stages.
• Fail to appreciate and correlate between sound HSE performance and the other Project
Business success indicators.
• The inability to integrate HSE “language” into the project & business process as well as
management of the contracted works “language”.
• Further, the integration HSE Risk Management Plan into overall Project Execution Plan &
Control and Schedule.
• HSE Professionals do not have knowledge or self driving to understand the Project facility
development stages and mechanism. In turn, they, HSE advisors or supervisors , to
advocate HSE activities and their integration into the project business processes
• Documents of HSE plans and their contents become lost or no longer relate to the context
of the overall contracted work.
• Failure to identify the owner’s Project HSE risks as integrated good business and success
prerequisites.
HSSE Management System Frame Work

• Leadership, Commitment & Policy

• Risk Assessment
Plan • Legal and Other requirement
• Objective, target and Programs

• Resources, Roles, Responsibility, Accountability and

Authority
• Competence, Training & Awareness
Do • Communication, Participation and consultation
• Documentation Control
• Operational Control
• Emergency Response & Preparedness

• Performance measurement and monitoring

• Incident Investigation, Nonconformity, Corrective Action
Check and Preventive Action
• Audit

Act • Management Review

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 Some Areas of Confusion

Development Projects Management vs. Contracted Work HSE Management

– Front End Loading/Feasibility – Plans & Risk Assess to contract the

Studies work
– Front End Engineering – Market assessments
Definition/ Detail – Selections of contractors (tendering)
– Execution/Construction – Pre-work execution readiness
– Start-up and commissioning assurance
– Operations – Monitoring work in progress
– Evaluation of the performance – Performance evaluations for
continuous improvement

Project

Main Contractor A Contract B

Sub Cont A1
A2 Contract C
A3
A4 Contract D
Risks & Manageability

START

Scoping & Worst Case Scenario Agreed

Hazard
Identification

Hazard Impact Likelihood to

Severity Level happen level

Risk Exposure Manageability

Level Level

Execute ability Priority &

Risks & Manageability Matrix Plan
 Manageability Measures (example)
Focus Area H (HIGH) M (MEDIUM) L (LOW)
Schedule is fully under internal Schedule partially depends to external Schedule fully depends to external
Schedule control parties e.g. shut-down, costumer, parties & less of intervention
material delivery, etc.

Competent resources or project Limited competent resources, may be Lack of PHE competent resources &
team in PHE available available in other Pertamina/Groups. limited other BUs/Groups
Service provider available & Limited service provider & need contract Very limited external resources/ service
contract is in place Limited material available at market or provider
Resources Material easily available at market stock Material is very limited or need special
or stock is in place Less data available order from manufacturer
Data available Relationship to stakeholder is partially No data available
Relationship to stakeholder is good good & well maintained Bad relationship to stakeholders
& well maintained

Budget Budget committed and approved Budget committed, but need external Budget is not committed yet
approval e.g. SKKMigas

Facilities/system is up-grade-able Facilities/system is up-grade-able to meet Facilities or system is up-grade-able to

to meet new standard new standard, but need major meet the new modification/
Existing Technology available & well proven modification requirement
Process Standard, procedure & system is in Implementation of new technology Technology not available
place & implemented Standard, procedure & system partially in There is no standard, procedure &
Extent experience on process place & implemented system in place
Less experience on process Lack experience on process
 HSE Risks Engineering Project Facilities

Front End Loading FEED Construction Operate

Effectiveness in Risk
Reduction

Inherent
Safety Engineered
Safety
Procedural
Safety

Research Phase Engineering Phase Operating Phase

Conception Approval Startup

 Process Safety Framework
Concept Selecting Technology,
Design Process and Location

Residual • Hazard Identification

Risk • Risk Assessment
• Inherently Safer Design
• HAZOP
Detailed
Design

Risk Reduction Measures

• Prevention
Residual • Control
Risk • Mitigation

Proc.,Const.,I
nstallation. Layers of Protection
• Passive
Construction • Active
Residual • Administrative
Risk

Management of
Operation Process Safety
Example AMDAL Execution Plan Schedule

2014 2015
8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Contract
Award

Work Plan
Note:
Approval period by Central Comission
Public Announcement per GOI regulation:
Peer Assist
- TOR: 75 working days
- Andal, RKL & RPL: 75 working days
Public Consultation

Term of Reference

Peer Assist Submit Approved

ANDAL, RKL & RPL

Peer Assist Submit Approved

Select Engineering

Select Define
 Occupational
Occupational HSE Safety Approach
Risk Management
HSE Management System:

OHSMS/ OMS

Safe System
Control Of Works/
CSMS/ MoC

Safe System Control of Works :

Safe Works • Authorized & Competence Work Organizations
Practices
• Risks Communications
• Permit to Works
• Executions Supervisions
• Safe handover and close out

Occupational
Safe Works Practices:
Hazards Occupational Hazards: • Hazards & Risks Assessment
• Lifting • Organization & Competency
• Working at Height • Safe Tools & Equipment
• Confine Space Entry • Safe Operating Procedures
• Transportation • Risk based PPE
• Energy Isolations • Emergency Readiness
• Excavation/ Ground Breaking • Stop Unsafe Works
• Hot Works
• SIMOP

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Siklus Pengelolaan Resiko Yang Efektif
Lingkup pekerjaan harus
jelas termasuk tahap
persiapan, eksekusi dan
demobilisasi

Jika ada perubahan situasi dan

Kajian resiko sepesifik dan
cara kerja, stop dan evaluasi
sesuai lingkup pekerjaan
kembali resikonya

Konsistensi implementasi di
Apakah mampu Perencanaan pengelolaan
lapangan dengan supervisi dan
audit kepatuhan berkala mencegah resiko harus ALARP (as low as
reasonable and practicable)

kecelakaan?

Pengecekkan kesiapan pekerja, Menyediakan prasarana &

peralatan, material dan rencana/ sumberdaya pengelolaan resiko
prosedur kerja sebelum mobilisasi sesuai perencanaan

Dikomunikasikan ke
seluruh manajemen dan
pekerja yang
berkepentingan

2
0
WHY CONTRACTOR SAFETY MANAGEMENT SYSTEM IS CRITICAL?

70%

of the personnel
working in PHE office & sites 80%
are not PHE employees; they
are employees of our of PHE total spend is with
contractors
90%
our suppliers/ contractors.

of the HSSE accidents and

incidents
attributed to the PHE
business happen to
individuals who are
employees of our contractors
Six Phases of Procurement (SCM) Activities

Phase A Phase B: Phase C: Phase D: Phase E: Phase F:

Identify Prepare Bid out Award Manage/ Close out
require- bid and and Execute and
ments for document evalua- formalize the Evaluation
goods & & bidder tions contracts contracts
services list

Pre Award Award Post Award Post Contract

 CONTRACTED WORK MAPPING
CSMS PROCESS CONTRACTED WORKED PROCESS

RISK ASSESSMENT REQUEST FOR CONTRACT Phase

A

PRE-QUALIFICATION PRE-QUALIFICATION
Phase
B

DEFINE TENDERING STRATEGY

SELECTION
DEVELOP BID PACKAGE
Phase
C
BID PACKAGE SUBMISSION

BID EVALUATION
CONTRACT AWARD
CONTRACT AWARD Phase
D
PRE-MOBILIZATION
KICK OFF AND PRE-MOBILIZATION

WORK IN PROGRESS Phase

WORK IN PROGRESS MONITOR
E
FINAL EVALUATION FINAL EVALUATION
Phase
F
Lesson Learned

 Understand the Hazards & Conduct risk assessments and evaluate

the manageability since earliest stage of Project FEL.
 Include HSE Hazards & Risks exposure and Risk Control and
Mitigation Strategy Project Development in assessing the facility
options selection and Contracting the works strategy.
 Thematic Risk registers, Control and Mitigation closure tracking as
well as Residual Risk management must be administrated in every
stage of project as well as every step of contracted works
 Use the HSE plans as a life document from the initial plan until
execution and integrate the Plan into overall Project Control and
Schedule
 Develop HSE professional who understands the HSE business
processes and the nature of project stages and it’s mechanism as
well as the mechanism of contracted work management.
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