2004 Internal Audit Report

Unocal Geothermal, Indonesia Business Unit
Good Operations Management Systems

2004
Internal Audit Report
August 20 September 3, 2004

Submitted to: Barry Andrews General Manager, UG,IBU
Joe Bowen Senior Operations Manager
Mark Mosby Resource Technology Manager

Date: 3 September 2004

Submitted by:

Bradley E. Wendt, PE, PMP

Paul A. Taylor

Team Leader
Manager, Production Engineering

Field Manager, Wayang Windu, MNL
Rex Soeparjadi

Bob Djanegara

Field Manager, Salak, UGI

Manager Loss Control, UGI - Jakarta
Iman Santoso

Ferri Fatra

LC & Security Engineer, UGI - Jakarta

Loss Control Specialist, UGI - Gunung
Salak
GOMS 2004 Internal Audit
Executive Summary
Page 2 of 62
Introduction

Following is the report resulting from the Good Operations Management System (GOMS)
internal audit conducted for Unocal Geothermal Indonesia Business Unit during August 20
September 3, 2004. The audit was conducted as a requirement of the GOMS to provide
management, Supervisors and Element Coordinators feedback regarding the current status of
the business unit good operations management system and to offer suggestions for further
system development.

The report contains three sections:
1. Section I: The Executive Summary: This section highlights general observations,
commendable programs and key recommendations.

2. Section II: Findings and Recommendations For Each GOMS Element: This section
contains a detailed discussion of the findings and recommendations relative to each
OMS Standard.

Distribution of this report will be through the Senior Operations Manager, Joe Bowen and Good
Operations Committee

Action plans addressing the recommendations contained in this report should be sent to Bob
Djanegara (Attention: to GOC).

Signed Document on file with Loss Control Manager

Executive Summary
Page 3 of 62
Section I
Executive Summary

A Good Operations Management Systems (GOMS) internal audit was conducted for Unocal
Geothermal Indonesia on August 20 September 3, 2004. The purpose of the audit was to
evaluate the current status of the business unit Good Operations Management System (GOMS)
and submit findings and recommendations for additional program development. The audit team
used a Retrospect Methodology to capture learnings from the program rather than a check list
audit approach. This method served the team well in that it encouraged an open and
transparent learning environment.

Audit team members included:

Bradley E. Wendt, PE, PMP, Lead Auditor, UGI Manager, Production Engineering
Paul Taylor, Wayang Windu Field Manager
Rex Soeparjadi, Salak Field Manager
Bob Djanegara, UG,IBU Loss Control Manager
Iman Santosa, LC & Security Engineer, UGI - Jakarta
Ferri Fatra, Loss Control Specialist, UGI - Gunung Salak

Scope
The scope of the 2004 audit included:
Salak Geothermal Operations
Wayang Windu Geothermal Operations
Jakarta Geothermal Administration & Technical Support

General Commendations
There has been significant improvement in the GOMS since the last Internal Audit in 2001.
Six elements received an Effectively Designed and Implemented (ED&I) rating, an
increase of two from 2001. Considering the 2001 audit was Jakarta & Salak only, and the
2004 audit included Wayang Windu this is encouraging results. The majority of Elements
receiving Exceptions have progressed towards ED&I ratings.
The Salak and Wayang Windu geothermal facilities continue to operate with high reliability.
The facilities are clean and orderly. Personnel demonstrated a keen awareness to safety.
The drilling performance in terms of costs and timing is highly commendable. The
department has achieved one year without a lost time accident. Significant progress has
been made to document and disseminate procedures and best practices.
Element Coordinators, Perry Shaza & Maulana Hadi, are to be commended for their
enthusiastic and dedicated efforts at improving GOMS through the implementation of their
assigned Elements. (note: Perry and Maulana were issued a plaque of appreciation and a
gift voucher for dinner at Lawrys restaurant to promote similar behavior in all EC).
The UG,IBU personnel were open and honest during the audit and demonstrated a
cooperative attitude and willingness to learn.

Executive Summary
Page 4 of 62
General Observations
There is high safety awareness, but overall low collective knowledge of GOMS. GOMS is
still perceived as something outside of the normal day-to-day work. It is not fully
appreciated as a management system and there is yet to be full alignment on the intent and
implementation.
The Red Book (GOMS Handbook) is confusing and not well structured. There is a
hodgepodge of procedures, guidelines and forms that are inserted into the handbook in an
ad hoc manner with out clear links to Policy Standards Procedures.
The Personal Performance Standards are not an effective measure of performance. The
standards are not well understood by the majority of personnel. The recording of
accomplishment is not verified and seldom substantiated. The process leads to rubber
stamping.
The external audit of the corporate OMS standards while excellent in intent has the
unintended consequence of diverting attention on developing and implementing a fit-for-
purpose management system to chasing corporate audit points. This distraction has
hindered the development of some the elements, i.e., the maintenance and inspection
element.
About half the Element Coordinators were not knowledgeable or properly prepared to
present their elements to the auditors. Numerous Element Coordinators did not receive
orientation upon element assignment.
Key Recommendations
Following are the most significant recommendations resulting from this audit. Additional
recommendations are detailed in Section II of the report.
Engage in a dialogue with managers to reconfirm the direction and intent of the GOMS as a
management system. Have work sessions with key personnel (Superintendents,
Supervisors, Engineers, and Element Coordinators) to disseminate the philosophy and gain
a greater collective knowledge of the overall GOMS. Consider testing personnel and
making it a criterion for promotion.
Reemphasize the roles and responsibilities of the Element Coordinators. Encourage more
active participation of the sponsors and line managers in evaluating performance and taking
corrective actions for mediocre performance.
Develop a GOMS Handbook that has only the Policies, Standards and PPS. Eliminate the
procedures, guidelines, forms from the GOMS and place on a readily accessible share drive
and/or portal. Link procedures, guidelines, best-practices, forms, reference materials to the
standards. Link real work documentations to the standards and procedures.
Develop a robust PPS system that holds personnel accountable for real work with review
and substantiating documents.
Endorse the Integrated Resource Management and adapt the program for the BU.
Support the Finance Departments Sarbanes-Oxley (SOX) Initiative.

Executive Summary
Page 5 of 62
Standards Ratings
Each GOMS Element was rated using the following rating criteria:
Effectively Designed and Implemented:

Written Policy, Standard, Procedures exist
Written Personal Performance Standards exist
Procedures Understood and Implemented Effectively
Element is periodically Evaluated and Improved
System is robust and sustainable
(The 20/80 rule was applied with regards to the element meeting the intent of a fit-for-
purpose element. Implementation compliance was expected to be a least 80% across
the business unit.)

Exceptions:
Lacks one or more of the criteria above

Deficient:
The Element and/or implementation is not align with the concept of a Program, i.e.,
Say what you are going to do, and do what you say, and periodically
check to see that you do what you say you are going to do.
No significant progress for improving the exceptions over the years(s).

The table below shows the ratings for each Unocal Geothermal Indonesia Element

No.

Element
2
0
0
4

2
0
0
1

1 Leadership
2 Risk Profile Evaluation & Assessment
3 Compliance Management
4 GOMS Measurements, Evaluations, and Statistical Process Control
5 Inspections and Maintenance
6 Contractor Management and Procurement Controls
7 Personal Protective Equipment
8 Work Rules, Permits, Procedures and SOPs
9 Workplace Health and Industrial Hygiene
10 Emergency Preparedness, Crisis Management and Business Recovery
11 Environmental Care
12 Community Development, Relations and External Communications
13 Resources Technology Practices
14 Project and Change Management
15 Drilling Program and Practices
16 Communications
17 Incident Investigations, Evaluations and Learning Review
18 Physical Security
19 Information System and Data Security
20 Manpower Planning and Competencies
21 Orientations, Training, Mentoring and Performance Management
22 Accounting Practices
23 General Services

Executive Summary
Page 6 of 62
Note about Audit

This audit was conducted in the spirit of learning and not as a gotcha audit. The ratings are bit
tougher than an external audit because:
We know our weak points
We are harder on our selves than the corporate auditors
Looking at whole Element not just Corporate OMS standards
Confronting the Brutal Facts (Practicing Good to Great)

Audit Schedule

Team Charter Developed and Approved June
Team Orientation and Training conducted by Team Leader Aug 12
Audit Preparation Aug 13-19
Audit Kick-Off with Management and Element Coordinators Aug 20
Jakarta Interviews Aug 23-25
Salak Interviews and Site Inspections Aug 26-28
Wayang Windu Interviews and Site Inspections Aug 30 Sep 1
Report Prep, Sep 1-3
Close-out meeting Sep 3
Submit Report Sep 6

A retrospect of the Audit will be conducted September 16
th
and submitted to Senior
Management for perusal and the Loss Control Manager to place on file.

Section II
Findings and Recommendations for each Element

UGI GOMS Element 1
Leadership
2004 Internal Audit

Page 8 of 62
ELEMENT 1 LEADERSHIP
Audit Date : 23 August 2004
Element Coordinator : Barry Andrews
Interviewee : Joe Bowen
Auditors : Brad Wendt (lead), Rex Soeparjadi
Overview
This standard provides guidelines for effective leadership and administration of the
management of Geothermal Operations and Jakarta Office. Understanding, active involvement
and commitment by all employees to the implementation of Good Operations Management
System (GOMS) are essential and mandatory.

Strong and unwavering leadership at the corporate level and throughout the entire business unit
management chain is a critical success factor for developing this understanding, involvement
and commitment.

The GOMS embraces the Total Quality Management concept and strives to translate the
Unocals Vision, Mission, and Values into reality through its element standards implementation.

Performance standards have been developed and tracked. The level of awareness is
increasing with the managers and supervisors since the last internal audit conducted in 2001.

Key Point: We need to strive to make the GOMS an integral and congruent management
process with the work we are doing. With emphasis on we Say What We Do, We Do What We
Say and periodically review and continuously improve. There is a tendency to see the Red
Book (the GOMS manual) as a stand alone safety program rather than a management system.

The ideal model for the whole process to implement GOMS would be:
1. Strong, clear and aligned: Mission, Vision, Values
2. Presence of Strategic plan (3-5 years)
3. Annual goals review, clear metrics, score cards
4. Programs in place Implementation of policies, standards, procedures, practices,
training
5. Evaluation of point 1 - 4
6. Sustainable process with continuous improvement.

Overall Business Unit Element Rating: Exceptions

Criteria

Jakarta

Salak
Wayang
Windu
Written Policy, Standard, Procedures
Written Personal Performance Standards
Element is Periodically Evaluate and Improved
Thumbs up, A-Okay, no major improvements required
Flagged because there are some problems
Thumbs down, does not meet intent. Needs immediate attention.

UGI GOMS Element 1
Leadership
2004 Internal Audit

Page 9 of 62
2001 Internal Audit Ratings
This element received an Exception rating during the 2001 audit. The GOMS Element exceeds
Corporate OMS Standards. Overall understanding of GOMS and OMS was found lacking.

2003 Corporate Audit Ratings
The Corporate 2003 audit rated the 3 applicable standards as Effectively Designed and
Implemented with suggestions. The suggestions are being acted upon by the Loss Control
Department.
2004 Audit Findings
1. GOMS Element 1.1.1 requires process mapping. The majority of the elements and business
processes do not have process mapping and/or it is not readily available.
2. There are nine policy statements addressed in Element 3, that can be found in the share
drive and the GOMS Live-Link. Policies are not displayed in the Jakarta Office 11
th
floor.
Policies are displayed adequately in the Salak and Wayang Windu field.
3. There is no Policy for Records Management or a program in place and as such the
Element 18 received a deficient rating on one Corporate standard.
4. The GOMS handbook is available and distributed and readily available to all employees. It
is considered an overly bulky and confusing handbook. It is still somewhat perceived as
something outside routine work, as opposed to the intent of it being integral and congruent
to the way we do business. The handbook is confusing because it lacks structure.
5. Jakarta Staff orientation was not consistently provided for new employees and transferred-in
employees (note also in Element 21 Training & Orientation). Orientation was not provided
for new element coordinators. GOMS knowledge among element coordinators in general is
inadequate.
6. GOMS does not cover Balanced Score Card methodology and other Management
Processes such as Decision Making and Budget Monitoring & Control as it is implied in
Element 2.
7. Senior Managers and General Manager have not updated their PPSs (IPSs). Middle
managers only partially completed.
8. The Personal Performance Standards measuring methodology is not perceived to be
effective.
9. The RATS has been replaced with the AIMS, but is not being used to track Element action
items for continuous improvement and/or compliance. AIMS does not currently have a
functioning automatic reminding system (this is noted in several other Elements)
Recommendations:
1. Develop a stand alone Policy for Records Management.
2. Review the current practice of rating PPS and improve process to assure compliance and
aligned with performance appraisals. (consider WWs PPS compliance form).
3. Provide orientation for new employees, transferees, and new Element Coordinators.
4. Continue fostering and promoting the GOMS and improvement of standards, programs,
procedures and best practices.
5. Develop a GOMS Handbook that contains Policies and Standards only, including PPSs
(IPSs) and provide references (links) to where supporting Programs, Procedures, Best
Practices can be readily located.
UGI GOMS Element 2
Risk Profile Evaluation & Assessment
2004 Internal Audit
Page 10 of 62

ELEMENT 2 RISK PROFILE EVALUATION & ASSESSMENT
Audit Date : 24 August 2004 (Jakarta) / 30 August 2004 (WW)
Element Coordinator : Iman Santoso
Interviewee : Iman Santoso, David Aulia (Jakarta), Maulana Hadi (WW)
Auditor : Rex Soeparjadi (Lead), Ferri Fatra
Overview
The objective identification and evaluation of risk is critical to safe, efficient and environmentally
responsible operations. Each operation must identify their specific risk profile to determine if
additional OMS elements and standards are needed beyond the core program.
Performance standards have been written and risk based goals have been developed to
monitor progress. However, the closure of goals using measurable assessment, especially for
Jakarta and Salak, needs to be improved.

Even though the element as named does not mention the planning component anymore, the
standard still captures the requirement of Business Unit Annual Operating Plan (AOP) process.
There are no written procedures for the Business Management processes.

Overall Business Unit Element Ratings: Effectively Designed and Implemented
(with suggestion)

Criteria

Jakarta

Salak
Wayang
Windu
Well defined Written Policy, Standard, Procedures
Element is periodically Evaluate and Improved
2001 Audit Rating
This element received an Exception rating during the UGI audit and had three
recommendations. Except for establishing procedures / process mapping for the planning
process, other recommendations have been followed-up.
2003 Audit Rating
This element received an Effectively Designed and Implemented rating. However, the
recommendation to establish a measurable methodology with next level approval for action
item close out has not been completed.
2004 Audit Findings
1. In 2004 the element is being reviewed but this is not a routine practice. Current review is
considering removing the planning portion from the element.
2. The annual review of business unit risks is routinely implemented.

UGI GOMS Element 2
Risk Profile Evaluation & Assessment
2004 Internal Audit
Page 11 of 62
3. A finding in the 2003 audit mentioned that a structured and documented methodology be
developed for capturing specific actions taken against established risk profile action items.
Risk based goals are still tracked manually on Excel spread sheets and close-outs do not
have measurable criteria. WW has implemented specific action monitoring program since
2003.

4. Element Standard requires risk profile evaluation process to identify whether new OMS
elements and standards are required. No process has been developed to address this
requirement.

5. Inconsistent use of risk ranking criteria in GO 2.0 and GO 2.1. In one section, the rating of
4 indicates almost certain probability and major severity. Whereas in another section,
the rating of 4 indicates unlikely probability and minor severity. (Flip-Flop)

Recommendations:
1. Removing the planning portion (as proposed by the LC department) from the element
needs to be reconsidered. The business unit needs a planning process to address risks
and routine business procedures to engage in best practices and ensure alignment in
practices. (General)

2. Add a procedure to determine whether new OMS elements and standards are required
based on the identified risks. (General)

3. Consider removing procedure portion from the standard section. (General)

4. Revise risk ranking criteria in GO 2.0 and GO 2.1 so they are consistent. (General)

5. Consider assigning one person to be responsible for one business unit / area risk based
goal to maintain clarity in responsible person and accountability. (Jakarta and Salak)

6. Improve on goal completion monitoring methodology so completions can be measured and
not manually updated on Excel spread sheets. Use Project Management methodology to
initiate, plan, execute, control and close-out Risk Based Goals. (Jakarta and Salak)

7. Recommend to assign a planner to handle strategic, business and maintenance planning.
(Salak)

UGI GOMS Element 3
Compliance Management
2004 Internal Audit

Page 12 of 62
ELEMENT 3 COMPLIANCE MANAGEMENT

Audit Date : 23 - 31August 2004
Element Coordinator : Alimin Ginting
Interviewee : Alimin Ginting (Jakarta) Izzat Salim (Salak) Maulana (WW)
Auditors : Iman Santoso, Paul Taylor
Overview
Compliance with legal requirements wherever we work is a fundamental Unocal practice.
Unocals Vision and Values may require standards that exceed requirements of existing
regulations. Certain Unocal policies have been developed to provide these standards
Compliance with regulations is a critical activity for UGI because of the current political scene
and introduction of Regional Autonomy. The lack of evidence of regular reviews of regulations is
a significant finding and confirms that the EC must be given the appropriate support and
guidance to facilitate the ongoing implementation of this element.
Renewal and control of certificates at both fields is well controlled.
Overall Business Unit Element Ratings: Exception

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This Element received an Exception rating during the audit and had seven recommendations.
Minor progress has been made on completing the action plan.

2003 Audit Rating
This corporate auditor rated one standard as an Exception rating during the audit with three
recommendations. Minor progress has been made on completing the action plan. This
indicates the Element rating of Exception.

2004 Findings:
1. New Element Coordinator appointed 3 weeks ago. No formal appointment letter signed by
Management and no proper hand over between previous and new EC.
2. Based on EC, Jakarta Government Affairs are proactive in trying to contribute to new
regulations while they are being drafted. There is no procedure related to this practice in
GOMS.
3. There is a matrix of regulatory compliance including responsible person, revised in August
2004. EC was not sure who has revised this document and the previous document is still in
the LC directory.
UGI GOMS Element 3
Compliance Management
2004 Internal Audit

Page 13 of 62
4. There is no information or evidence that assessment of regulatory compliance is conducted
every 2 years as required by GOMS.
5. Copy of certificate of compliance on critical equipment is available in Salak & WW. Some
obsolete certificates were found in the same binder with the current certificate.
6. In Salak & WW update on the new regulation is normally by the memorandum from
government bodies. Currently there is no proactive effort to check the new regulation
existence as this is considered EC and Jakarta responsibility.
7. Good finding that WW has developed a certification database and procedure unique for
Wayang Windu operations. Compliance status on certification database (using MS Access)
is checked/reviewed regularly by dedicated person. This database covers all SKPP
including permit/certification eg building permits (WW)
8. Rollout of Element 3 has been completed in the past and a roll out of the new database is
being planned. (WW)
9. WW was not aware that based on the procedure, the GOMS Manager is required to be
provided with a copy of letters to GSDM with relation to accidents and well drilling
notification. This audit brought to WW attention and they will follow accordingly in the future.

Recommendations:
1. Develop and implement formal appointment and orientation for the new element coordinator
including the requirement on hand over process when there is a change in element
coordinator (General)
2. Conduct the annual review of the compliance matrix as per the requirement. Include an
approval requirement by Loss Control Manager to ensure that it is being done and
distributed. Change procedure to include this. (General)
3. Conduct assessment of regulatory compliance every 2 years as required by GOMS. State
the PPSs into the PPS compliance form. (General)
4. Use WW certification database system for Salak and Jakarta Office (Salak and Jakarta
Office)
5. Influence EC to use project management tools to ensure outstanding actions and element
reviews are quickly completed. (General)

UGI GOMS Element 4
Measurements, Evaluations, and Statistical Process Control
2004 Internal Audit

Page 14 of 62
ELEMENT 4 - GOMS MEASUREMENTS, EVALUATIONS, AND STATISTICAL
PROCESS CONTROL
Audit date : 25 August 2004
Element Coordinator : Bob Djanegara
Auditor : Brad Wendt (lead), Ferri Fatra
Place : Jakarta Office Team Room 11.004
Overview
Modern business management is built on a framework of information, measurement, data and
analysis. Measurements are derived from business unit strategies and cover all key-processes
and the outputs and results of these processes. Facts and data are needed for performance
improvement and assessment.
Performance measures should be simple and easy to use, provide fast feedback and should
foster improvement rather than be used just for monitoring. This element standard provides
guidelines for Unocal Indonesia Business Unit management to measure performance.
This GOMS Standard exceeds Corporate Standard requirements. The yellow flags are based
on not doing what the Element standard indicates we should be doing. The quality of internal
review by Element Coordinators is not comprehensive and extensive. The element does meet
the intent of the corporate standards.
Overall Business Unit Element Rating: Effectively Designed and Implemented
With Suggestions

Criteria

Jakarta

Salak
Wayang
Windu
2001 Rating
This element received an Exceptions rating during the 2001 audit.
1. N/A n/a
2. Participation in OMS Audits ED&FI
3. Follow-up of Audit Findings Exceptions
4. Internal Reviews of Standards ED&FI

2003 Rating
The Corporate 2003 audit three out of six standards as Effectively Designed and Implemented
with one suggestion.

UGI GOMS Element 4
Measurements, Evaluations, and Statistical Process Control
2004 Internal Audit

Page 15 of 62
The 2003 Corporate Audit indicates the following ratings for the standards:
1. N/A n/a
2. Participation in OMS Audits ED&I
3. Follow-up of Audit Findings ED&I w/ Suggestions
4. Internal Reviews of Standards ED&I

2004 Findings:
1. The 2003 External audit rated the Corporate OMS Standards as Fully Design and
Implemented with suggestions. The suggestions have been acted upon.
2. Audits have been conducted in 2000, 2001 and 2003 and are on file.
3. Not all departments conducted annual formal measures of external and internal customer
satisfaction. Loss Control department had developed a form to address customer
satisfaction that can be found on the share drive. The customer satisfaction form does not
have instructions on how to use it. The customer measurement tool has not been reviewed
every two years by the department head.
4. Several departments have Service Level Agreements (SLA) in place to address customer
satisfaction and are meeting the intent of this requirement (i.e. HR, IT and Production
Engineering, LC Department, P&L).
5. Departments have Balanced Scorecard (BSC), but are not uniformly effective. Some
departments still refer to them as Value Based Management (VBM). Not driven from a
standard, procedure or guideline.
6. Share drive defined in procedures is obsolete.
7. Annual evaluations are not being done with respect to the intent of continuous improvement
of the GOMS. Element coordinators just review the audit result and use the
recommendations for developing action plans. Definition review and audits not well
understood.
8. AIMS replaced the RATS system and still being commissioned. The follow up of best
practice and audit deficiencies should be tracked by AIMS, but is not done
Recommendations
1. Review the need for customer satisfaction surveys. Define internal and external Customers.
2. Conduct a Refresher course for Element Coordinators and their Sponsors identifying roles
and responsibilities and emphasizing expectations.
3. Develop a guideline for reviewing the Element Standards and Procedures. (Consider using
Izzats Element 14 annual review as example).
UGI GOMS Element 5
Inspection and Maintenance
2004 Internal Audit

Page 16 of 62
ELEMENT 5 - INSPECTIONS AND MAINTENANCE
Audit date: 20 August 2004
Element Coordinator: Hari (Dido) Widianto
Interviewees Hari (Dido) Widianto, Doddy Astra, Terry Indra, Dwi Darmawanta
Auditor: Brad Wendt (lead), Paul Taylor
Follow-up Audit: 26 August 2004 with Engineers, Supervisors, Element
Coordinators, Superintendents at Salak Field Office Conference
Room
Overview
Periodic inspection and preventive maintenance programs must be implemented to ensure the
continuing integrity of facilities and plant.
It is evident by the high availability of the Power Plant and Resource Production Facilities and
the good monthly maintenance reporting that a maintenance practice exists. However the
practice does not meet the Program intent of Corporate OMS.
A Program is defined as the methodical application of procedures to achieve a defined goal.
Programs have the following characteristics:
The scope and objectives are well defined
Procedures are defined and logically sequenced
Responsibilities and accountabilities are understood and included in personal
performance standards
Performance is measured against objectives
Based on performance measurement, procedures exist for modifying the
program to improve effectiveness
Procedures exist for follow-up and closure of deficiencies identified by the
program
Additional effort is required to get the Maintenance Supervisor, planner and engineers aligned
with the overall Maintenance progam.
Overall Business Unit Element Ratings: Exceptions

Criteria

Jakarta

Salak
Wayang
Windu
Written Policy, Standard, Program, Procedures n/a
Written Personal Performance Standards n/a
Procedures Understood and Implemented Effectively n/a
Element is Periodically Evaluate and Improved n/a
System is robust and sustainable n/a
2001 Audit Rating
This standard received an Exception rating during the 2001 audit.

UGI GOMS Element 5
Inspection and Maintenance
2004 Internal Audit

Page 17 of 62
2003 Audit Rating
The Corporate 2003 audit rated four out of six standards as Effectively Designed and
Implemented with suggestions and two exceptions.

The 2003 Corporate Audit indicates the following ratings:
Mechanical Integrity Inspection Program: Exceptions
Pre-Use Inspection Procedures for Critical Equipment : Okay w/ suggestions
Planned General Inspections : Okay w/ suggestions
Preventive Maintenance (PM) Program Exceptions
Flow Measurement Procedures Okay w/ suggestions
Tracking & Correcting Substandard Conditions Okay w/ suggestions

2004 Findings:

1. At Salak no substantial improvements have been made since the 2003 audit due to a
shuffling of personnel resulting in a new Element Coordinator and Maintenance
Superintendent.
2. Monthly reports indicate high availability of power plant and resource production facilities.
Facilities were found to be clean and good housekeeping was observed.
3. Interviews with supervisors and leadsmen indicate that they are not fully aware of the overall
maintenance program and intent of the maintenance strategy. (Salak)
4. At Salak there are procedures and guidelines squirreled away in supervisors offices, but no
central control of documents or linkages to the overall program could be found by
supervisors. A share drive was developed by the former Maintenance Superintendent as a
holding point for the Maintenance Program. The majority of the supervisors were not aware
of the share drive or the contents of the drive.
5. At WW procedures can be found on share drive and the Computer Maintenance
Management System (CMMS) known as MEX. Superintendent and Supervisors were
aware of programs and procedures.
6. There was uncertainty of what the definition of critical equipment is at both Salak and WW.
7. AIMS has replace the RATS tracking system but implementation has not been completed.

Recommendations:

1. Update the Maintenance Strategy and develop a three-year strategic plan. Utilize the plant
engineers in developing the plan. Use a disciplined Project Management approach to get
this work done with clearly defined scope, deliverables and timeline. Develop yearly goals
and objectives around the three-year strategic plan. (General)
2. Update the GOMS Element to include a requirement for developing the 3-year strategy and
yearly goals. Include a requirement for evaluating the strategy/maintenance program and
progress annually. Provide guidelines for conducting the evaluation. Ensure that it is done
in a systematic and methodical manner.
3. Provide a clear methodology for defining critical equipment and critical spares. List and post
the critical equipment for all supervisors and engineers.

UGI GOMS Element 6
Contractor Management & Procurement Controls
2004 Internal Audit
Page 18 of 62
ELEMENT 6 - CONTRACTOR MANAGEMENT AND PROCUREMENT CONTROLS
Audit Date : 24 - 31August 2004
Element Coordinator : Angky Soekardi
Interviewee : Angky Soekardi, Tungga Dewa (Jakarta 24 August 2004)
Ongky Rahadi (Salak 27 August 2004)
Bambang Purbagyo (WW 31 August 2004)
Auditors : Iman Santoso (lead), Brad Wendt, Paul Taylor
Overview
Effective selection and management of contractors, along with the effective procurement of
materials and equipment, are key components for achieving business objectives. A systematic
approach must be in place for evaluation, selection, and on-going assessment of critical
equipment and material vendors and contractors.
Good progress has been made by the P&L department to improve performance through the
initiation of the Service Level Agreement. Contract Administration in field is not fully understood
and there is often a disconnect between field activity and P&L.
Overall Business Unit Element Rating: Exception

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This Element received an Exception rating during the audit and had 15 recommendations..

2003 Audit Rating
This Element received an Exception rating during the audit and 4 recommendations. Minor
progress has been made on completing the action plan.

GOMS Standard Findings:
1. New Element Coordinator appointed in early 2004. No formal letter signed by Management
and no proper hand over between previous and new EC
2. There is no training program on contractor management and procurement control system.
However, the Global Drilling Community provide a two-day course that was attended by
several O&M supervisors and engineers, it was too generic for use in the field. There has
been formal training on P&L system, i.e. e-prove training, hazan training, cost element/code,
tendering process.
3. P&L Department developed a Service Level Agreement (SLA) but not yet on file and
accessible by end-users
4. P&L Department is active at improving contract protocol and safety requirements.
UGI GOMS Element 6
Contractor Management & Procurement Controls
2004 Internal Audit
Page 19 of 62
5. Policies, Standards and Procedures are not well structured and easy to understand.
6. Overall understanding of policies and standards and procedures is weak.
7. There is a plan to revise the definition on Direct Appointment and Direct Selection
8. Development of a practical video presentation for Contractor pre-job meeting which include,
basic HES, Security, Emergency, and other necessary information in Field operation is in
progress, delayed due to ambiguous scope definitions, scope changes and clarification
throughout contract, not meeting expectations.
9. In the Corporate Audit 2003 recommendation, the BU is recommended to develop a fit for
purpose program to ensure that critical procured equipment and materials meet or exceed
specifications. This needs to be integrated with Element 5 Maintenance and Inspection.
10. There is confusion on which government regulation need to be followed on procurement
decree (whether it be BP Migas, GSDM or Keppres)
11. Currently there is no formal activity to review the contractor performance. Discussion is
conducted as required if there is any poor contractor performance.
12. Some contract documents were not available on site causing confusion on the contract term
and risk on legal aspect.
13. There are no guidelines on Insurance Coverage for contract.
Recommendations
1. Develop and implement formal appointment and orientation for the new element coordinator
including the requirement on handover process when there is a change in element
coordinator.
2. Tracking of progress on Corporate Audit Recommendation must be done during quarterly
element coordinator meeting. Provide management support to encourage progress
towards.
3. Develop training program to improve the knowledge and competency of employees on
contractor management and procurement controls
4. Include P&L SLA as Element 6 procedure and post in GOMS folder/web site.
5. Reorganize Standard and Procedures to make it easy to understand. Consider to adopt
document leveling based on document hierarchy (pyramid model).
6. Improve understanding of end users on policy, standard and procedures by having
campaign and awareness of P&L system i.e. P&L system understanding for non P&L
people (see also recommendation on training)
7. Provide clarity to which government regulations (whether it be BP Migas, GSDM or Keppres)
is to be followed and complied with.
8. Conduct contractor performance review for continuous improvement and lesson learned.
(note: Element 14 Project Engineering Guidelines should have this as a requirement in the
Post Project Review requirement. Check and update as necessary.)
9. Distribute the copy of contract document to Salak and WW to avoid confusion on contract
term and minimizing the risk on the legal aspect implication.
UGI GOMS Element 7
Personal Protective Equipment
2004 Internal Audit

Page 20 of 62
ELEMENT 7 PERSONAL PROTECTIVE EQUIPMENT
Audit Date : 27 August 1 September 2004
Element Coordinator : Perry Shaza
Interviewee : Perry Shaza (Salak Aug-28) / Ismail Hidayat (WW Sep-1)
Auditors : Iman Santoso (lead), Bob Djanegara
Overview
This element standard provides guidelines for effective personal protective equipment (PPE)
program in the Unocal Indonesia Business Unit. PPE is one of the four common approaches of
controlling occupational hazards, along with engineering controls, administrative controls and
work practices. Though PPE should be considered as the last resort of control, it is frequently a
necessity in the defense against hazards.
Unocal is committed to the use of personal protective equipment for the safety of its workforce.
Operations management must assess the need for protective equipment, ensure its availability
and enforce its use.
The Element Coordinator was found to be enthusiastic and knowledgeable with regards to this
element.

Overall Business Unit Element Ratings: Effectively Designed and Fully Implemented
With Suggestions

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This Element received an Exception rating during the audit and had 5 recommendations..
Progress has been made on completing the action plan.
2003 Audit Rating
Two Corporate standards were audited in 2003. One received an exceptions rating and the
other received a Effectively Designed and Implemented Rating with a total of four (4)
recommendations. This can be interpreted as an Element rating of Exception. Progress has
been made on completing the action plan.
GOMS Standard Findings:
1. This Element was found to have written policy, standard, procedures, with PPS that are
understood and implemented effectively in Salak. A co-coordinator has been assigned at
Wayang Windu and the standards and procedures are being adopted.
2. An annual review of the Standard had been made and submitted to LC for review and
approval Process.
UGI GOMS Element 7
Personal Protective Equipment
2004 Internal Audit

Page 21 of 62
3. The PPE needs assessment doesnt include drilling or Jakarta office.
4. The procedure 7.1 mentioned that all non-staffs should wear cover-all. This may not be
applicable any more.
5. No progress made on specifying PPE regulation regarding arsenic, because IH section has
not finished with the Arsenic risk assessment.
6. The PPE safety signs are posted throughout the field, but some areas are found lacking.
Work is in progress to increase signage on ad hoc basis. (Salak & WW)
7. The quality of the PPE Need Assessment at WW was not as comprehensive and detailed as
the one at Salak.
8. At WW warehouse stock documents dont tally with actual PPE stock. Inventory control was
found lacking.
9. Salak has developed an informal PPE Org Chart with assigned responsibilities.
10. The WW co-coordinator was not involved in the PPE procedure.

Recommendations:
1. Encourage WW PPE Co-coordinator to adopt best practice from Salak.
2. Include Jakarta office and Drilling activity on PPE Need Assessment
3. To review the requirement to use coverall clothes for Non Staff and revise the standard or
procedure as required.
4. Complete the Arsenic Risk Assessment program
5. Survey and Assess PPE Requirement Signage (Safety Sign) as part of PPE enforcement
program. Use Project Management approach to deliver a report and recommendations and
follow-up implementation.

UGI GOMS Element 8
Work Rules, Permits and Procedures
2004 Internal Audit

Page 22 of 62
ELEMENT 8 - WORK RULES, PERMITS AND PROCEDURES
Audit Date : August 23, 2004 (Jakarta) Aug 30 (WW)
Element Coordinator : Heribertus Dwiyudha
Interviewee : Heribertus Dwiyudha (Jkt)
Auditor : Paul Taylor (Lead), Iman Santoso
Other : Taufik Hidayat, Perry Shaza (GS) / Heribertus Dwiyudha (WW)
Overview
Control of workplace hazards is a key component of good operations. Each operation must
develop, implement and maintain work rules, permit systems and procedures to protect workers,
control workplace hazards, comply with regulations and address industry standards.
The Work Rules, Permits and Procedures element is one of the more mature elements in the
organization as it has been continuously developed since 1995. Implementation is reasonably
advanced but continuous effort is required by Management and Supervisors to ensure
compliance becomes a habit and is part of the business culture.
The recommendation to review this element should be given high priority since this element has
not been reviewed since 2001.


Criteria

Jakarta

Salak
Wayang
Windu
Procedures Understood and Implemented
Effectively

2001 Audit Rating
This Element, which has seven (7) standards, received an Exception rating for one (1) standard
and Effectively Designed and Implemented rating for six (6) standards. There were three (3)
recommendations. No formal actions closeout report was viewed but it appears that one
recommendation was completed while the other 2 are outstanding.
2003 Audit Rating
This standard which has seven (7) standards received an Exception rating for four (4) standards
and Effectively Designed and Implemented rating for three (3) elements. Nine recommendations
were made of which four (4) have been completed and three (3) are in progress.
UGI GOMS Element 8
2004 Internal Audit

Page 23 of 62
2004 Audit Findings
1) Business unit management will ensure that specific work rules and procedures to
protect workers are well defined, understood and enforced
Standard Rating: Exception
1. Generally implementation was in accordance with the standard except for:
2. The General Rules are not displayed on the notice boards in Jakarta office or Wayang
Windu. Staff at WW and Jakarta do not have a safety handbook. (Refer to clause 8.1 of GO
8.0). General Rules were displayed on some notice boards in GS. However these were very
old copies and maybe not effective.
3. GO 8.0 standard and all the Element 8 procedures have not been formally reviewed since
2001 (approx).
4. GOMS Question of the Week has been used in WW since April 2004.
5. The Element standard 8.0 makes reference to the Drugs and Alcohol Compliance Policy.
Check to determine if this clause is appropriate for this standard.
6. There is a disagreement between element 8.1.3 and element 6.3.1 regarding personnel
riding on the back of trucks. This should be clarified. Workers were observed riding on the
back of trucks at GS while delivering material to the drilling rig.
7. Routine (monthly) inspections on contractor vehicles (eg labour supply, catering etc) were
not done. (GS)
8. Observed one vehicle exiting the field (B 2915 TJ) that had substandard driver seat belts.
However driver was looping it over his shoulder to give the appearance that it was being
used. (GS)
9. Observed that bench grinders in both vehicle workshop and maintenance building at GS
were in sub-standard condition. (GS)
10. The material on the bulletin boards in the maintenance building and Security Pos 1 was out
of date. (GS)
11. WW has a vehicle entry procedure and driving rules on the local quality directory. The
inspections as defined by the vehicle entry procedure have not been implemented in the
field. (WW)
12. There is no Safety Handbook available at WW. (WW)
13. Orientation presentation was not formally filed on the shared drive with other LC course
descriptions and presentations. This will ensure all Contract Supervisors have access to the
latest presentation. (WW)

2) Business unit management will ensure that work permit procedures are well defined,
understood and enforced.
Standard Rating: Effectively designed and fully implemented
1. Implementation of work permit procedures and specific procedures has been a high profile
job. There is evidence of recent training in these procedures at both fields.
2. Annual internal reviews of work permit system have not been completed.
UGI GOMS Element 8
2004 Internal Audit

Page 24 of 62
3. GLARF compliance remains an area of concern at WW.
4. Review of both GS and WW procedures showed that little (no) comments were added in the
hazard screening section. (Is this just rubber stamping the form??)
5. A confined space attendee was interviewed at GS. He did not appear to clearly understand
his roles and responsibility and advised that he had attended confined space training but
had not received specific training as an attendant. Problems with Attendant knowledge and
discipline have also been identified in WW,

3) Business unit management will ensure that an assessment is conducted to evaluate
the need for written operating and maintenance procedures, either as required by
regulation or to meet business objectives.
Standard Rating: Exception
1. There is no statement in the GOMS standard about operating and maintenance procedures
even though comprehensive operating and Maintenance procedures exist at both GS and
WW.
2. There is no connection between this standard and the Inspections and Maintenance
Standard #1 Mechanical Integrity.
3. No formal evaluation has been completed to determine the need for written O&M
procedures.
4. O&M procedures are reviewed on an as-needed basis. Written standards are not formally
reviewed every 3 years.

4) Business unit management will ensure that employees involved in critical activities
are competent and certified in the appropriate skills
1. Job Performance Standards (JPS) exist for critical activities such as: production operators,
electrical, instrumentation, rotating equipment technicians. The JPS described the skills set
required for each position based on the expertise. Each personnel need to demonstrate
competencies required for the position and will be able to understand the required skills to
progress to the next level. The JPS was also used as basis for training.
2. The TCP program provides training guidelines and progress monitoring for engineers.
3. Internal operator certification has been completed in WW and GS
4. Plans for operator external certification in progress
5. Crane Operators and Forklift Operators are certified.
6. Driving certificates exist for both WW and GS fields.

5) Business unit management will ensure that a Program is in place such that all
operating permits, including licenses, certificates or authorizations issued by
regulatory authorities for consent to operate, are obtained in accordance with
regulatory requirements
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2004 Internal Audit

Page 25 of 62
Standard Rating: Effectively Designed and fully implemented
1. The permits and licenses are listed in GO-3.2 Compliance responsibilities matrix which listed
the required permits, related agencies, responsible person to obtain the permit and due date
for renewal.
2. Wayang Windu and Gunung Salak have tracking systems to check status and define who is
responsible.
3. No reference to this OMS standard in GO 8.0

6) Business unit management will implement procedures to ensure that employees
understand they are empowered to refuse to work when unsafe conditions are
present
1. The refusal-to-work policy has been circulated and discussed with the workforce.
2. There is no reference to this OMS standard in GO 8.0.
3. Interview of GS new employee (5 months) revealed that she was aware of and understood
this policy.

7) Business unit management will ensure that disciplinary procedures consistent with
Corporate guidelines are in place and well understood by supervisors and employees
1. A new disciplinary procedure standard GO 8.6.1 has been written.
2. Disciplinary guidelines posters are on display at JKt, WW and GS.
Recommendations
1. Review and update complete element standard and procedures. (General)
2. Provide safety handbook which would contain general rules, incident notification and
emergency response to all WW employees as per Clause 8.1 of GO 8.0. (WW)
3. Bulletin boards need to be updated or removed. (Salak)
4. Clarify the policy for workers riding on the back of trucks. (General)
5. Review vehicle inspection procedure for regular O&M site contractors. (General)
6. Provide tool box meeting training about best safety practice for bench grinders. (General)
7. Review and provide recommendation about how to consolidate Operations & Maintenance
procedures between this element and Element 5. (General)
8. Promote awareness of the hazard screening section of the Permission to Work form with the
objective of providing more focus on considering the hazards associated with the work.
(General)
9. Consider developing a list of Qualified attendants and entrants for both fields. The
proposed Attendant should be defined on the Confined Space form. (General)
UGI GOMS Element 9
Workplace Health and Industrial Hygiene
2004 Internal Audit

Page 26 of 62
ELEMENT 9 - WORKPLACE HEALTH AND INDUSTRIAL HYGIENE
Audit Date : Aug-24 (JKT) / Aug-27 (Salak) / Aug-30 (Wayang Windu)
Element Coordinator : Irawadi Prihaswan
Interviewee : Irawadi Prihaswan, Zulkarnaen (Salak), Dr. Sudarmaji (WW)
Auditors : Ferri Fatra (lead), Rex Soeparjadi
Overview
This element targets all Unocal employees and contractors who work in Unocal Geothermal
Indonesian Business Unit operating facilities, and is intended to address any health hazard
potentials related in particular to biology, chemical, ergonomics, fitness for duty, high risk factors for
coronary heart disease, illumination, and noise.
The purposes of this element are to ensure that all potential health hazards in the work
environment are recognized, evaluated, and controlled properly, protect employees from injuries
and illnesses due to industrial hygiene hazards, maintain and improve employees fitness and
health.
The element has a standard and some procedures but is lacking understanding and
implementation. Some of the standard and procedure have been implemented but need to be
reviewed. Implementation of the monitoring plan also needs improvement.

Criteria

Jakarta

Salak
Wayang
Windu

2001 Audit Ratings

The Element was rated Exception in 2001. Most of the recommendations from Internal Audit
2001 have been followed up such as, update HHA, Develop Hazard Communication Procedure
etc.

2003 Audit Ratings

Two (2) Corporate standards were rated Exception in the 2003 audit. Some of the findings have
been closed out and others are still in progress.

UGI GOMS Element 9
2004 Internal Audit

Page 27 of 62
2004 GOMS Standard Findings:

1. Element Standard was last reviewed in 2001 even though the document heading was
changed to Geothermal Operations and Jakarta Office in 2002.

2. For Salak, a comprehensive Health Hazard Assessments (HHA) which should be conducted
annually was irregularly done. Comprehensive assessments were done for Salak in 2001
and 2004, and partial assessments done in 2002 and 2003. A 2004 monitoring plan is
nearly complete (already approved by the Corporate Industrial Hygienist) to monitor the
affected employees. The monitoring program will be implemented upon receiving
equipment that are currently being repaired and calibrated in the States. The program is not
self sustaining yet. The last Salak HHA update was done by the assistance of the UICo
Industrial Hygienist from Balikpapan. This arrangement might not be possible in the future.
The original plan was to have Salak HHA be reviewed and updated by a Corporate IH, but
the plan has not been followed through.

3. For WW, HHA and its monitoring plan has just been implemented. The first baseline survey
was conducted last May 2004 and the report is nearly complete. The magnitude of
exposure has never been assessed through either personal or area sampling. Due to
unavailability of equipment in WW, personal and area sampling will be scheduled after Salak
monitoring is finished (planned in 1 Q 2005). However, the noise mapping program has
been conducted in WW Power Plant.

4. There are no SOPs on how to conduct IH tests and monitoring. Equipment operating
manual exists and practices are followed based on experience. (Jakarta, Salak and WW)

5. The program lacks a communication plan to inform impacted employees on the results of
the assessment. The result of audiometric test (part of the hearing conservation program) in
2002, has not been provided to Salak affected employee. Wayang Windu has provided the
result of audiometric test in July 2004, to the affected employee.

6. The HHA software contains a list of chemicals being used in Salak and Wayang Windu field,
but it lacks information on tracking traffic/flow of quantities. A chemical list is also compiled
separately in Wayang Windu.

7. There is a procedure to train potentially affected employees within 14 days of beginning
work has not been implemented. GOMS Element applies this to hearing conservation but
does not address other hazards.

8. GOMS procedure has a report form for employee or contractor to report suspected health
problem. But, the Health or Environmental Effect Report form has not been rolled out and is
not being used.

9. Some of sampling and monitoring activities have been conducted in Salak :
Arsenic has been identified as potential risk at Salak. Steps have been taken to
communicate with other business units to determine proper procedures to address it.
Tests for TB is not fully/properly implemented both for employees and contract
personnel.
Fitness for duty has been regularly conducted for Security personnel.
UGI GOMS Element 9
2004 Internal Audit

Page 28 of 62
Random testing for drug and alcohol has been conducted for employees as well as
contractors. However, due to constraints of equipment availability, post incident testing
has not been addressed properly.

10. Some of sampling and monitoring activities has been conducted in Wayang Windu.
Noise mapping program, noise contour (in production area) and Audiometric test
Fitness for duty test for security personnel
High risk coronary diseases
Has contracted a nutritionist to control diet of employees .

11. Chemical storage at Salak warehouse has been improved and incompatible materials are
now stored separately and labeled. Hazard communication procedure exists that cover the
labeling system and labels contain MSDS information. Improvement is still needed
particularly on labeling some of hazardous substance containers such as the ones for scale
deposits. WW warehouse has not been set-up to store and handle toxic waste.
12. The procedure to manage existing and review new MSDS is available, as well as the
requirement to review new chemicals. However, the practice, still needs to be improved
because list of MSDSs have not been updated and there are no Bahasa Indonesia versions.

13. The "Chemical Review Request Form" has not been distributed to the workforce and is not
used in Salak or Wayang Windu.

14. Co-element Coordinator is new and has not received special orientation on element 9,
Workplace Health and Industrial Hygiene.

15. Hearing conservation program standard for Noise exposure has a confusing table since it is
not clear which standard we use (eg. OSHA or Man Power Department regulation).

Recommendation:
1. Review the standard and procedure and clarify standards of Noise Exposure in Noise
Conservation Program Procedure. (General)
2. Review position and need of HHC (Health and Hygiene Coordinator) and also other position
like Hazard Communication Coordinator, IH coordinator. Need to clarify whether this is the
same or separate from the element coordinator. (General)
3. Enforce implementation of the standard. (General)
4. Recommend to change policy and train potential affected employees regarding all
risks/hazards, prior to work, instead of within 14 days of assignment.(General)
5. Simplify and roll out the Health or Environment Effect Report Form. (Jakarta, Salak &
Wayang Windu)
6. Up date the availability of MSDS and translate it into Bahasa Indonesia (General)
7. Publicize the availability and promote the use the "Chemical Review Request Form" (Salak
& Wayang Windu)
8. Give GOMS awareness to the co element coordinator especially element 9, Workplace
Health and Industrial Hygiene. (Wayang Windu)
UGI GOMS Element 10
Emergency Preparedness, Crisis Management & Business Recovery
2004 Internal Audit

Page 29 of 62
ELEMENT 10 EMERGENCY PREPAREDNESS, CRISIS MANAGEMENT
BUSINESS RECOVERY
Element Coordinator : Terry Indra
Interview with : Terry Indra, Hari Widianto (previous EC)
Auditor : Paul Taylor (Lead), Bob Djanegara
Place : Gunung Salak
Other Cecep Gunawan (31 August) WW
Overview
This program standard provides guidelines for handling emergency situations that may result
due to natural or man-made disasters. It includes planning, programming resources, drills,
initial response, loss limitation and business recovery.
This is a mature element of GOMS and implementation is well advanced for Jakarta and Salak
operations, but, periodic review of the element is lacking and the EPR Manual is merely work in
progress at Wayang Windu. And since, Corporate demands a high rating for this element,
which can be easily compared between business units the reduction of the GOMS rating from
Effectively Designed to an Exception rating should be a concern for the Business Unit.

Effective design and implementation of this element requires a lot of effort and time by the
coordinators. The continued implementation needs to be given a high priority to ensure that a
high quality program is in place. The findings suggest that more effort must be made with
implementation of this critical element. The personnel responsible for implementation must be
encouraged to use project management techniques to ensure a robust program is in place prior
to the 2005 Corporate Audit.

Criteria

Jakarta

Salak
Wayang
Windu
Effectively

2001 Audit Rating
This standard received an Effectively Designed and Implemented rating during the audit and
had eight recommendations. No formal actions closeout was viewed but in general it appears
that the recommendations were completed or have been superseded.

UGI GOMS Element 10
2004 Internal Audit

Page 30 of 62
2003 Audit Rating
This standard received an Exception rating during the audit and had nine recommendations.
2004 Audit Findings
1. The hard copy Salak Emergency Response Manual is not a controlled document.
2. The latest Salak Emergency Response Manual is a well-organized document with many
written emergency response plans. A mud slide ERP has not been prepared.
3. An Emergency Preparedness Coordinator has not been formally appointed for each field as
required by the standard.
4. The GSDM interface is not mentioned in the Emergency Response Plan.
5. The Salak ERP has not been formally reviewed for the last 2 years.
6. In general, bulletin boards throughout Gunung Salak did not have the latest response plan
and emergency contact details displayed. This finding was also highlighted during a January
2004 Management Planned Inspection.
7. During 2004, the following drills were completed by Gunung Salak
May 13, Well blow out emergency response with Jakarta EMT
August 10, Emergency drill with Geosystems and TBU
8. The Salak ERT was activated two times during 2003 and lesson learned was conducted
Natural (Landslide) Disaster
Crane fatality
9. A review of UGI ERP was conducted by ERST on September 9, 2002. Many of the
recommendations have not been completed.
10. A project to review Emergency Preparedness programs for IBU is currently being
conducted. The EC is unsure if he should continue with his current element update, or wait
until this review is completed.
11. GOMS Element 10 in the red book is not well organized. There is no reference to where the
Jakarta, Salak or Wayang Windu plans can be found.
12. Wayang Windu ERP plan is still a draft and consists of 4 procedures: the ERP organization
chart, and 3 emergency response plans. The draft procedures were not available on the LC
network.
13. Draft WW ERP procedures were submitted for approval in December 2003. The procedures
have not been approved.
14. There are no Yellow Book ERP manuals at Wayang Windu.
15. WW has completed 2 drills during 2004 using the draft ERPs:
1 following a one day ICS workshop
1 fire evacuation drill
16. WW ERT training for 2004 included:
3 people attended the ICS training in Jakarta
Roll out of all 3 emergency plans
Internal ICS training for ERT members
17. WW have an Emergency Response Unit. Progress with development of this unit include:
Training in use of fire extinguishers
UGI GOMS Element 10
2004 Internal Audit

Page 31 of 62
Training with use of portable fire fighting pump
Basic Life Support
A draft JPS has been prepared
18. The WW element coordinator has received ICS training at Balikpapan. He has not received
training in fire-fighting (included in 2004 training plan) or BRP.
19. WW has not completed the 7 step preparedness and planning procedure or a review of
emergency safety systems. This 7 step program is not defined in the GOMS Element.
Recommendations:
1. Wayang Windu procedures and plans should be managed in sub-directories on the GOMS
network directory. (WW)
2. WW to complete preparation of the ERP manual (Yellow Book) and distribute to appropriate
staff. (WW)
3. Field Emergency response manuals to be controlled documents with personnel assigned for
keeping them up to date. (General)
4. Project management techniques to be used to complete the implementation of the element
and to complete the outstanding actions from the ERST report and the Corporate audit (All)
5. Management to ensure Element Coordinator and Emergency Preparedness Coordinators
have sufficient time for maintenance of this element. (General)
6. Ensure a drill with 3
rd
party observation is completed at both fields prior to the 2005
Corporate Audit (General)
7. General Manager to formally appoint the Emergency Preparedness Coordinator for each
facility. (General)
8. Review the procedures in Element 10 and determine if the procedures should be kept with
each facility ERP (General).
9. Improve approval response time for GOMS Procedures.
UGI GOMS Element 11
Environmental Care
2004 Internal Audit

Page 32 of 62
ELEMENT 11 - ENVIRONMENTAL CARE
Audit Date : August 25, 2004 / August 27, 2004 / September 01, 2004
Element Coordinator : Rudi Setiawan
Interviewee : Rudi Satiawan, Iwan Azof (Jakarta)
Doddy Sofyan, Gunawan Dharsono (Salak), Maulana Hadi (WW)
Auditors : Ferri Fatra (lead), Rex Soeparjadi
Overview
Management believes that protection of the environment is a fundamental responsibility of the
Company. Therefore Management will commit the necessary resources to mitigate the adverse
impacts and to comply with regulations to facilitate Environment Protection Policy. The objective
of this element is to focus Company Policy towards Environmental Care and to provide
guidelines to ensure that all REASONABLE precautions are being taken to protect the
environment.
Environmental Care is being accelerated by PROPER (Government Compliance Program).
Implementation still needs improvement especially in waste management and the awareness of
employee to follow the procedures. Element coordinator and environmental staff need to be
more pro-active to ensure proper environmental care.

Criteria

Jakarta

Salak
Wayang
Windu
Written Policy, Standard, Procedures n/a
Element is periodically Evaluate and Improved n/a
2001 Audit Ratings
There is one Corporate standard that has received Exception rating in the 2001 audit. Most of
the recommendations have been done such as training of hazardous material, review Indonesia
regulation.
2003 Audit Ratings
There is one Corporate standard that received an Exception rating in the 2003 audit. Some
follow-up of the recommendations have been done such as the Review Environmental Impact
Study. Others are still in progress like, update waste management procedure for specific
wastes. The Unocal Site Assessment and Remediation Standard has not been addressed.
2004 Findings:
1. Salak and Wayang Windu have a Program to ensure that an environmental care program is
implemented. Salak has Environment Impact Assessment (AMDAL) that include all
information on air emission, water discharge, waste generation and has assess the impact
of operation to the environment. This environmental impact assessment is being reviewed
after 9 years (since 1995) in Salak and Wayang Windu has not reviewed AMDAL document
since there are no activities or process change.
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Environmental Care
2004 Internal Audit

Page 33 of 62
2. BU has environmental monitoring plan as part of Environmental Management Plan that
monitors all of influencing aspect to the environment such as noise, air emission, waste
water sampling every 3 months. The documents reporting these activities are submitted
every 3 months for WW and once a year for Salak.
3. Jim Strong from Corporate HSE visited and worked for 1 month at Jakarta/Salak to test tools
for self auditing of an environmental care program. His findings and recommendations were
similar to those found during the 2003 OMS Corporate Audit.
4. To manage waste, waste management procedures have been developed but not all types of
wastes have been considered, such as medical waste. It is imperative that procedures are
reviewed to ensure no gaps exist.
5. There is low awareness from the employee to follow the procedure such as disposing the
waste into the bins that match the type of waste.
6. Business unit has not developed environmental objectives and targets to minimize waste,
but some efforts have been introduced to reduce waste production. Salak has developed a
work plan to minimize spills due to production and construction activities. Laboratory
procedures have been revised to eliminate waste of mercury and cadmium. Laundry
services have started using biodegradable detergent in Salak and WW. Salak camp has
constructed a waste water treatment facility but still needs improvements. WW has running
waste treatment plant and other waste minimization practices are being implemented.
7. Improvements for Salak chemical and waste storage at the warehouse have recently been
made to comply with standards. WW warehouse has not been set-up to store and handle
toxic waste.
8. Small amount of Salak Oil filters, oily rags is disposed together with domestic waste to public
waste disposal. WW has separated these wastes and they are managed by a procedure.
9. The WW interviewee could not determine whether audits of associated land fill and regional
waste handlers have been conducted to ensure that they implement approved systems and
programs.
10. The GOMS procedures only refers to Salak operations.
Recommendation :
1. Waste management procedure need to be reviewed, revised and supplemented. Existing
documentation are too simple and general in nature. Consider use of PGI's best
practices.(General)
2. Increase employee awareness in waste management by involving frontline management
and include in PPS. (General)
3. Follow up on the 2003 audit findings and recommendations. (General)
4. Audit associated land fill and regional waste handlers to ensure that their programs and
systems are run properly. (General)
5. GOMS element should be revised to include WW operations. (General)

UGI GOMS Element 12
Community Development, Relations and External Communications
2004 Internal Audit

Page 34 of 62
ELEMENT 12 - COMMUNITY DEVELOPMENT, RELATIONS & EXTERNAL
COMMUNICATIONS
Audit date : August 23, 2004
Element Coordinator : Iwan Azof
Auditor : Bob Djanegara (Lead), Ferri Fatra
Interviewee : Iwan Azof; Rudiana
Place : Iwan Azofs Jakarta / Rudiana Salak / Willy Wayang Windu
Overview
Unocal Geothermal of Indonesia (UGI) has social responsibilities as a corporate citizen of the
communities where it operates. Establishing and sustaining interactive, open communications
with the customers (partners, governments, neighbors, community, etc.) is an essential aspect
for transforming Unocals Vision and Values into reality. Improving the lives of people wherever
we work is a fundamental aspect in establishing and implementing the program. Having a
reputation consistent with our Vision and Values is an important component of achieving
business objectives. This standard provides guidelines in order that our concerns about
community development, relations and external communication can be well responded and
developed in our operation.
The program has operated well over the last several years and received several Community
Development awards. The organization has changed recently and there are signs of downward
drift. Little action has been taken to work the suggestions from the 2003 Audit. The standards
and procedures were fit-for-purpose for a skilled and experienced crew, but, may not be
adequate for a less experienced crew. It is assumed the Jakarta Community Development is no
longer a responsibility of the UG,IBU. It will fall under the share services group.

Criteria

Jakarta

Salak
Wayang
Windu
Written Policy, Standard, Procedures n/a
Element is Periodically Evaluate and Improved n/a
2001 Audit Rating
This standard received an Exception rating during the audit and had three recommendations.
No formal actions closeout was viewed but in general it appears that the 1 (one)
recommendation was not completely done, and the other 2 (two) were not completed or have
been worked on.
2003 Audit Rating
This standard received an Effectively Design and Implemented (with suggestions) rating during
the audit and had 4 (four) recommendations. Minor progress has been made on completing the
action plan.
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2004 Internal Audit

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2004 Findings (Jakarta, Salak & WW):
1. The last revision of the standard GO-12.0 was made in 1999 and supposed to be reviewed
in 2001 but was not. The procedure GO-12.1 was reviewed in 2003.
2. Community Relation & Development in Jakarta Office is handled by the Corporate
Responsibility group. This was not reflected in the Standard and Procedures
3. Procedure 12.1 is the guidelines made for the implementation in the field, whether it is in
Salak or Wayang Windu. The officer in Gn Salak did not have the copy of the procedure or
even aware of its existence.
4. Communication and community relationship guidelines is not available in the written form.
They run the program based on the feeling and individual skill. Up till now, the system that
they use is still proven to be effective, thanks to the personnel skill and ability.
5. Communication flow, among the member of the Community Relation and External
Communication section has run very smoothly. Communication with the community in
Salak and Wayang Windu had run smoothly as well.
6. Mapping of issues & conflict and written procedures are not available (This was actually
required as per the Procedure GO-12.1, Para 4.1.). Also need to make a standard on the
format of the mapping needed.
7. The personnel in the Community Relation and External Communication section has the
ability to take care of the problem that suddenly arise in the field. There are a lot of work that
came without planning because people from the community usually come to the office
without any early notification or appointment. It is the nature of the work.
8. There are no comprehensive list of the training that has been received by the CR&CD
personnel. Some of the training that listed in GO-12.0 has not been given to the CR & CD
personnel, such as the risk communication, etc.
9. There are minimal personal performance standard for the community relations positions
(2003 Corporate OMS Audit also had addressed this issue).
10. There are no Information Disclosure Procedure which rule the communication system for
sensitive issues as well as the contents of what can be delivered or not.
11. The field Community Relation and External Communication officer in Salak still have the
problem of coordination with other section in Salak, he usually knows about a problem after
the problem arised.
12. The field Community Relation and External Communication officer in Salak has field agent
that work for him to counter the bad information arised in the community.
13. The field Community Relation and External Communication officer got informal meeting
with the community leader almost every week. The formal meetings also conducted (more
than once every 3 months), but not properly documented.
14. The community around Salak and Wayang Windu was never been informed about the
emergency procedures. Community around Salak just been informed about the emergency
drill that Unocal have recently.
15. The field Community Relation and External Communication officer in Salak and Wayang
Windu had not received the crisis communication training and dealing with media training.
16. The field Community Relation and External Communication officer in Salak doesnt have
the standard for his section, and he doesnt know how to get it in the intranet or shared
folder.
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17. The field Community Relation and External Communication officer in Wayang Windu does
have the standard for his section, and he know how to get it in the intranet or shared folder.
18. The field Community Relation and External Communication officer in Salak also takes care
of the environmental issues, but not too focus. The officer in WW do not take care of
environment issues.
19. The field Community Relation and External Communication officers usually make 3 months
planning.
20. The field Community Relation and External Communication officer in Salak doesnt have
the 1 year planning made by the section head, but the officer in WW does have it.
21. The field Community Relation and External Communication officers in Salak and WW never
seen the Comdev strategic commitment for 2-5 years.
22. The field Community Relation and External Communication officer in Salak had conducted
a lot of program for developing the community income, improve the community education,
public health, etc.
23. The field Community Relation and External Communication officer in WW is new (2
months), and he doesnt really know what has been done before he joint WW.

Recommendations:

1. Supplement Procedure GO-12.1. with procedures for:
Mapping the issues and conflicts with community
Procedures for sharing analyses of community issues established and implemented
Procedures for channeling feedback from the community for proactive response
Procedures for response to early warning established and implemented
2. Formally transfer Jakarta Community Development Program to UICo.
3. Provide Communication and community relationship guidelines, including employee
participation in communities activities
4. Provide training for all the Community Relation/ Development personnel as per GO-12.0,
especially Crisis Communication Training.
5. Provide guidelines for Information Disclosure

UGI GOMS Element 13
Resource Assessment Best Practice
2004 Internal Audit

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ELEMENT 13 RESOURCE ASSESSMENT BEST PRACTICE
Element Coordinator : Aquardi R.S (Dega)
Interview with : Dega, Novi Ganefianto, Ken Reidel
Auditor : Paul Taylor (Lead) Brad Wendt
Place : Sentral Senayan-1, 11
th
Floor /
Other Novianto and Yoyo at WW
Overview
The current standard has been prepared as a directive for implementation of Resource
Assessment Best Practices. The document mandates systematic development of best practice
documentation consistent with other company standards in a way that supports continued
improvement of our technology, skills, and business results.
It is recommended that the intent of the element should be reviewed to be congruent with the
Integrated Resource Management Program. The program should be designed to ensure
effective management and development of the Business Units geothermal reservoirs.
The audit team considers that the current GOMS standard fails to meet the intent of this
element and that the proposed Integrated Reservoir Management program would be well suited
to our business needs.
Overall Business Unit Element Ratings: Deficient

Criteria

Jakarta

Salak
Wayang
Windu
Effectively

2001 Audit Rating
This standard received an Exception rating during the audit and had two recommendations. No
formal actions closeout was viewed. In general progress has been made to comply with the
intent of the actions.

2003 Audit Rating
This element was not audited during the 2003 Corporate Audit because this element is not part
of the OMS system.
2004 Audit Findings
1. The current GOMS element 13 is written as a directive for implementation of Resource
Assessment Best Practices.
UGI GOMS Element 13
Resource Assessment Best Practice
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2. A Balanced Score Card has been prepared for the Geosciences and Reservoir Engineering
department which provides the foundation for the performance of the department.
3. The departments have ensured that important documents are catalogued and filed in the
library. Currently there is a project to digitize all this information.
4. Many best practices and procedures exist for both departments. These are catalogued and
filed in the library. There is no formal process for approval, prepare content or file this
information.
5. Training is based on EDP and TCP programs. Hazard analysis and risk assessment training
has been completed.
6. Recently, corporate has developed the Unocal Integrated Reservoir Management Program.
UGI has been involved in the development of this program and has a strategic plan to
implement the program. The aims of this program are to provide:
Elevate performance and enhance Legacy Asset profitability
Implementation of best practices
Better certainty in production forecasts
Improve integration of business and technical processes
Professional development

7. An interview with the WW Well Test Supervisor confirmed that there was confusion in the
roles and responsibilities between site and Jakarta Office. The relationship between site and
Jakarta has not been clearly defined although they form a vital link in collecting resource
data. Evaluation and feedback of evaluation from Jakarta is infrequent. WW has many
procedures for daily operation but lacks a definitive annual plan on overall field assessment.
8. An interview with the WW Chemist showed a similar lack of clarity of roles and responsibility
between the site and Jakarta. Well chemistry data is continuously forwarded to Jakarta, but
the site Chemist was not aware of the results of any evaluation or recommendations to
change sampling frequency.

Recommendations:
1. The Resource Technology group should review the current GOMS element and strategy for
Integrated Resource Management implementation and determine how (if) this should be
integrated with GOMS
2. Improve control of groups standard operating procedures and best practices.
3. Continue to motivate this group to embrace the use of all the relevant GOMS elements.
4. Clarify roles and responsibilities between Jakarta and site personnel and improve the
communication link between these groups.
5. Establish routine evaluation programs and provide routine feedback to site personnel.
UGI GOMS Element 14
Project and Change Management
2004 Internal Audit

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ELEMENT 14 - PROJECT AND CHANGE MANAGEMENT
Element Coordinator : Izzat Salim
Auditor : Bob Djanegara (lead), Iman Santoso
Interviewee : Izzat Salim and some of the Salaks stake holder
Budhi S, Yudhi and some of the WW stake holder
Place : Gunung Salak Training Room
Wayang Windus Windu Room
Overview
Changes to facilities, processing conditions and operating practices may introduce hazards to
the workplace. Projects and change management is an effective pre-contact method which can
identify, evaluate and control hazards before they create situations that leads to loss within the
Unocal Geothermal of Indonesia.
This program standard serves as the directive for the implementation of the Engineering
Standards, Project Management and Change Management System.

Overall Business Unit Element Rating: Effectively Designed and Implementation
(with suggestions)

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This standard received an Effectively Design and Implemented rating during the audit and had
four recommendations. No formal actions closeout was viewed but in general it appears that the
recommendations were properly followed up.
2003 Audit Rating
This standard received an Effectively Design and Implemented (with suggestions) rating during
the audit and had 7 (seven) recommendations. 4 (Four) recommendations were completely
followed up, while the follow up of the other 3 (three) are still in progress.
2004 GOMS Internal Audit Findings (Jakarta & Gn Salak):
1. The revision of this standard was made in 2002. A 2004 review and revision has been
made but not yet submitted for GOC approval.
2. Flow chart and Process Map for the element 14 were made and will be incorporated into the
standard soon.
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3. The Hazan Process for the implementation stage already implemented in the Work Permit
System.
4. The modification on the Work Permit system has been modify to enhance the
implementation Hazard Screen requirement, but has not been rolled out yet. The work
permit is currently specific to RPF & PGF and does not cover Support Facilities.
5. The Geoscience conducted work without a work authorization (permit).
6. The MOC process is understood by the people in Salak. Interviewees indicated that the
changes for even a 5 minutes task goes through the MOC process.
7. Salak and WW conduct on-line off-line criteria for decision making with regards to
conducting routine maintenance or modifications. This procedure is not captured in GOMS.
8. For small projects, the NDT record were separated from the project file.
9. The communication of the change has run smoothly in Salak, the engineering, maintenance
and operation are communicating the changes very well.
10. The follow up of the action item identified by the HAZAN is done through the project
progress meeting, not through the AIMS. Sometimes the documentation is lacking.
11. AWI-1 sump is an example of an exception where we failed to conduct MOC and
close-out of the project.
12. Documentation on VFD in AWI-10 is not available since the beginning (not tracked). There
are a lot of things like this. The effort to get the information has been run for more than 7
years and the progress is not as what we would like them to be.. the leader of this effort
now is Dido and Dwi (because it really ties up with the Mechanical Integrity program).
13. Standard requires B31.3 code for RPF but B31.1 is being used which is an exception to the
Standard. The engineers are working to resolve this.
14. The baseline of the Hazard analysis for the unit 1,2,3 & Hazop for the unit 4,5,6 is available,
and it considered as the baseline operability and hazards reviews.
15. Field verification drawing is still on going.
16. Incorporation of the operating limit into the SOP is still on going.
17. Routine Project and Change Management System refresher training (recommended by
2001 audit), was presented in June 2004 and another is scheduled for December.
2004 GOMS Internal Audit Findings (Wayang Windu):
1. Projects follow the guidelines provided in Element 14.
2. Project Management Memory Jogger has been provided to all SS members
3. O&M have revised O&M procedures with out PCMS process. Jack Estes helped them with
the procedures review
4. All the facility information of the plant is available in the document center
5. Izzat as the element coordinator came to field at least once a year (usually more).
6. Hazard Analysis refresher training was conducted last month. They also conduct the
training for the new recruit on June 2004.
7. The implementation HAZAN was done (even though not consistently done and well directed
and well documented).
8. They have not incorporated the maximum operating limit in the SOP.
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9. Project documentation system is good and complete. The only room for improvement is
incorporation of close out check list.
10. The other thing for improvement is the documentation of the project that is conducted by
Jakarta or other group. We tried to find the MBE Pipeline Project hand over, and we could
not find it.
Recommendations (All):
1. With regards to Implementation HA, make the work permit system applicability to include
support facilities area (General).
2. Combine the NDT file and the project file in the same folder, even for the small projects
and/or provide tracking procedure (Salak).
3. Follow-up on the action item identified by the HAZAN through the AIMS (general).
4. Notify supervisor and engineers that the list of standards applicable for the Geothermal
Operation is currently on Production Engineering portal (general).
5. Complete the drawing field verification project (Salak).
6. Complete the Incorporation of the operating limit into the SOP (2003 Audit recommendation)
(Salak & WW).
7. Conduct the Project and Change Management System refresher session for the year 2004
(General).
8. Consider using the Thailand checklist for the Pre-start up or Handover (General).
9. Ensure Project Handover from Jakarta /Engineering Group to Wayang Windu is properly
documented and accessible. (Wayang Windu).

UGI GOMS Element 15
Drilling Program and Practices
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ELEMENT 15 DRILLING PROGRAM AND PRACTICES
Element Coordinator : Budi Indrajaya
Interview with : Budi Indrajaya, Steve Fury
Auditor : Paul Taylor (Lead) Rex Soeparjadi
Place : Sentral Senayan-1, 11
th
Floor (Budis Office)
Other Rig at AWI 8-7, Rod Bray (UGI DSM), Edison (Apexindo Safety
Officer), Richard OHara (Apexindo Rg Superintendent)
Overview
The Drilling Department has established many procedures and good practices for control of
their services. The global drilling network has established many procedures and best practice
guidelines. The GOC has requested that a GOMS element be prepared to describe how the
department procedures are managed and controlled.
Drilling Department has made a significant effort to develop and implement a quality
management system for their operation. The benefits of these improvements have been
captured with reduction in loss time accidents and improvement in drilling performance. It is also
noted that many of their procedures are derived from the global Unocal drilling community and
have been standardized to ensure operations and personnel use the same forms and
procedures throughout the world. The objective of the new manual should be to ensure that the
quality management system that has been developed for the current drilling program is captured
to ensure the program is robust and sustainable in the future
The current Salak drilling program has all the attributes of a well-managed, safe and cost
effective operation which is meeting or exceeding their customers expectations. All drilling
personnel have stated that this is the result of continuous improvement, which has been initiated
by learning reviews and development of best practices.
The reason for the GOMS element is to ensure that all the current good practices and lessons
learned are captured for future reference. This is the essence of a quality management system
and particularly important for stop/start operations like drilling.
Overall Business Unit Element Rating: Exception

Criteria

Jakarta

Salak
Wayang
Windu
n/a
n/a
Effectively

n/a
n/a
n/a
2001 Audit Rating
This standard received an Exception rating during the audit and had two recommendations.
UGI GOMS Element 15
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Page 43 of 62
A draft standard had been prepared and was reviewed by the audit team. The team considers
that this should be revised to more clearly define the intent of this element.
2003 Audit Recommendations
This element was not audited during the 2003 Corporate Audit because this element is not part
of the OMS system.
2004 Audit Findings
1. Leadership. A Balanced Score Card has been prepared for the drilling department which
provides the foundation for the performance of the department.
2. Drilling department is responsible for the Mechanical Integrity program for all the geothermal
wells. No formal program exists although informally the department manages the intent of
the program. No work has been done in the last year.
3. The drilling department maintains document files for each well. Electronic copies have been
made of each well file. Interviewees were not 100% confident that the contents of each file
were complete as the whole department has been extremely busy over the last 2 years.
4. In general new wells are not specifically designed but the standard well design is used. No
reference is made in the well documentation as to where the standard design calculations
can be located.
5. Any new well calculations are reviewed and approved by Bob Swanson. The drilling
procedure for each new well is also reviewed and approved by Bob Swanson. A formal risk
assessment is completed prior to spudding the well.
6. A drilling specific MOC procedure is used for assessment of changes to the drilling program.
A risk assessment may be required.
7. The department has +30 procedures relating to drilling. These are managed by a shared
(restricted access) network drive. Many of the procedures have been recently updated.
8. The Global Drilling Network has developed a training matrix for Drilling Supervisors and Drill
Site Managers. This is used by UGI to ensure their personnel are aligned with the Global
Community and can work in any Unocal drilling operation.
9. The drilling group provides intensive contractor management training for their personnel and
a score card is used for management of their major contracts. The contractor management
process was developed by the Global Drilling Network and ensures that staff can quickly
understand the process when working in any location.
10. Drilling tend to prepare their major contracts by themselves with little assistance from P&L
department.
11. A draft Standard Drilling Program and practices GO-15.0 has been prepared and was
reviewed. The draft standard is written more like a procedure for drilling new wells rather
than as a statement about programs for which the department is responsible.
Rig Inspection August 27, 2004
12. The Apexindo Safety Officer provided a Safety induction.
13. A new UGI bulletin board had been installed and was very informative. The UGI policies
were out of date.
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14. Reviewed safety documentation in Apexindo Safety Officer office. Appeared well controlled,
thorough and well documented.
15. Daily tool box meeting was being conducted for each shift, signed by all attendees and
included topics of discussion.
16. The HSE Observation card process was explained. 161 cards were provided for July.
Appears to be an effective program which is actively encouraged by management.
17. Site inspection revealed some housekeeping concerns, workers on material delivery trucks
not wearing proper PPE, workers using scarves when working with dusty materials (rather
than face masks), a substandard bench grinder in a mechanics workshop (no guard, rest not
adjusted properly and wheel not dressed), no flash back arrestor on an acetylene bottle,
workers eating lunch beside containers of hazardous materials Poly Plus.
18. An interview was conducted with the Rig Site Supervisor. He reinforced Apexindos
commitment to safety and compliance with UGI drilling management system. Safety awards
are provided on a 3 month basis (normally a DVD player or similar) and annually (trip to
Bali). Rig 4 safety performance is monitored with the other Apexindo rigs and is considered
one of the most successful. Daily meetings are proving to be most effective at developing
the safety culture.
19. Rig Site Supervisor also made comment that the drilling operation had improved
considerably since the Drilling SOP handbook had been prepared and the lesson learned
meetings held in Bogor following the fist Salak drilling program. He stated that during the
first campaign, many DSMs had different procedures and standards and the crew was often
confused and frustrated by the different styles of leadership.
20. An interview with UGI Drilling Site Manager was completed. This confirmed his adoption of
the SOP manual and use of the management of change process that was recently
introduced by drilling. He also explained the Risk Assessment process that is used before
drilling new wells. He was also aware of the global drilling network but was unable to
retrieve any procedures.

Recommendations:
1. The proposed drilling standard should be written in the same structure as other GOMS
elements. Programs should include: Mechanical Integrity program for existing wells, design
and drilling of new wells and work-overs, control of drilling procedures and best practices.
Personal Performance standards should be stated in the standard.
2. Prepare a mechanical integrity program to comply with Element 5 for existing wells.
UGI GOMS Element 16
Communications
2004 Internal Audit

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ELEMENT 16 - COMMUNICATIONS
Audit date : August 25, 2004 / August 26, 2004 / September 01, 2004
Element Coordinator : Rina Novanti
Interviewee : Rina Novanti, Paul Taylor, Taufik Hidayat
Auditor : Ferri Fatra (lead), Brad Wendt
Overview
Good communications contribute to achievement of business objectives. Effective
communications is the effective interchange of information. A free, direct, information flow
atmosphere should be built and maintained for both formal and informal communication to
continually reinforce the product and customer-oriented, fact-oriented and win-win mind set.
Group meetings can help to create a cooperative communication climate, encourage team spirit,
and support the goals of a safe and efficient operation. This program element outlines criteria to
aid in the communication of good operations, health, environmental and loss control policies
and procedures to Unocal Geothermal of Indonesia employees, contractor personnel, and
visitors.
This program is a mature program and has been in place with good operation meetings and
sub-standard reporting process.
Overall Business Unit Element Ratings: Effectively Designed and Implemented
with suggestion

Criteria

Jakarta

Salak
Wayang
Windu

Internal Audit 2001 Ratings
There are two (2) corporate standards that have received an Effectively Designed and
Implemented rating without recommendation.

External Audit 2003 Ratings
There are two (2) Corporate standards that have received an Effectively Designed and
Implemented rating in the 2003 audit and one with recommendation. The recommendation was
followed through.
2004 GOMS Findings:
1. Element coordinator has not received GOMS orientation yet. There is some confusion about
roles and responsibilities.
2. Element Coordinator is planning to include point 16.3 into standard that covering corporate
communication. Several procedures are being prepared.
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Communications
2004 Internal Audit

Page 46 of 62
3. Good operations meetings have been conducted on a monthly basis for the Jakarta office
and twice monthly to cover all shifts in field. Actually this meeting has been done about 75%
in Salak Field and Wayang Windu. No specific documented guideline for Good operation
meeting has been established. Meeting topics are planned a year in advance and
supplemented by timely issues such as incident reviews and current updated topic in that
time. Presentations are given by Supervisors or selected management personnel.
4. Some presenters have been trained for conducting good operation meeting such as train-
the-trainer (Salak and Wayang Windu)
5. Salak has conducted safety meeting and the record is filed by each department. In Wayang
Windu, safety meeting is also recorded by Loss control.
6. BU management has established procedure to report and investigate near miss or
hazardous conditions that are covered in the Incident notification and investigation
procedure in Element 17.
7. In Field operation, Salak and Wayang Windu, near-miss reporting form has been distributed
to all supervisor and promoted at the GOM and Coordination meetings to the field personal.
8. Few Near-Miss reports have been received by loss control dept, indicating low participation
by employees.

Recommendations:
1. Provide GOMS orientation to the element coordinator (general).
2. Suggest to the element coordinator to arrange coordination with Element Coordinator 12,
Community relation and external communication to discuss about the possibility to include
corporate communication procedure in this element. (general)
3. Develop guidelines of Good Operation Meeting to ensure that the meetings are conducted
to increase knowledge and awareness of issue related to business unit objectives. (general)
4. Increase the awareness to report near miss action and conditions. Consider having a
monthly or quarterly drawing for a gift to those who submit Near-Miss reports. (General)

UGI GOMS Element 17
Incident Investigation, Evaluation and Lessons Learned
2004 Internal Audit

Page 47 of 62
ELEMENT 17 - INCIDENT INVESTIGATION, EVALUATION & LESSONS LEARNED
Element Coordinator : Aristo Joeristanto
Auditors : Brad Wendt (lead), Bob Djanegara
Place : Jakarta Team Room 11.004
Overview
This management standard provides guidelines for incident classification, notification,
investigations and evaluation in the Unocal Indonesia Business Unit. A thorough investigation
will uncover the underlying or basic causes of an incident and produce recommendations to
improve our management processes and practices to minimize loss. Lessons learned
processes will be used for all significant events as a learning tool. All of these data will be
evaluated and communicated to management and employees to foster lessons learned, growth
and continuous improvements as a learning organization.
The Standard and Procedures exceeds the intent of the corporate standards. The quality of the
incident reports are deemed substandard and some additional training is required to get the
quality of report writing to meet the intent of the element.

Overall Business Unit Element Ratings: Effectively designed and implemented
(with suggestions)

Criteria

Jakarta

Salak
Wayang
Windu
2001 Internal Audit Recommendations
This standard received an Effectively Designed and Fully Implemented rating during the 2001
audit. The GOMS Element exceeds Corporate OMS Standard.

2003 Corporate Audit Recommendations
The Corporate 2003 audit rated the elements as Effectively Designed and Implemented with
suggestions. The suggestions are being acted upon by the Loss Control Department.
2004 Audit Findings
1. Element Coordinator has not received an orientation for this element.
2. The majority of managers and supervisors have not received initial formal training in Incident
Investigations.
3. Refresher courses are required every three-years. An in-house refresher course was
provided 2003.
UGI GOMS Element 17
Incident Investigation, Evaluation and Lessons Learned
2004 Internal Audit

Page 48 of 62
4. Field managers indicate the procedures are cumbersome and difficult to follow.
Simplification of the procedures has been requested.
5. The quality of the incident reports is considered sub-standard. Front-line supervisors have
not been trained in incident reporting writing techniques. Understanding of Immediate
Cause and Basic Cause and the link to recommendations is not fully understood by many
supervisors and managers.
6. The requirement for Lessons Learns is out dated with respect to the new Knowledge
Environment.
7. A Look Out Near Miss report form have been issued and rolled at GOM meetings
Salak and Wayang Windu. No formal written instructions on how to use the form, the intent
and roles and responsibilities is provided.
8. The Look Out Near Miss report form is duplicated in Element 16 Communications
9. AIMS is used for follow-up, but is not fully functional. Currently does not provide automatic
reminder system, needs to be done manually.
Recommendation
1. Update the standard and procedures to simplify. Provide a flow chart. Clean up the clutter.
2. Conduct Incident Investigation Training and/or Refresher Course for all managers and
supervisors.
3. Rewrite Standard for Lesson learns to incorporate the Knowledge Environment best
practices with regards to learning before, during, and after (Peer Assists, Action Reviews,
and Retrospects, formerly Lessons Learned) and the managements endorsement and
encouragement of its use. Identify who will maintain document file.
Learning Tools
Hear how the learning tools are making a difference in how we work from the people using the tools. USA
Learning Before
Peer Assist - "Learning before doing" is supported through the Peer Assist process which targets specific challenge, imports
knowledge from people outside the team, identifies possible approaches and new lines of inquiry, and promotes sharing of
learning with each other through a facilitated meeting.
Unocal Peer Assists
Learning During
Action Review - A U.S. Army technique called Action Reviews aims to get people to "learn while doing" by answering four
questions immediately afterwards:
1. What was supposed to happen?
2. What actually happened?
3. Why are they different?
4. What can we learn to do about it today?
Unocal Action Reviews
Learning After
Retrospect - At the end of the project a process called Retrospect encourages team members to look back at the project to
discover what went well and why, with a view to helping a different team repeat their success and avoid any pitfalls "learning
after doing". The output of this process provides content for a "Knowledge Asset".
Unocal Retrospects

4. Consider providing a reward for Near Miss reporting, such as, a drawing each month.
5. Debug AIMS to activate automatic reminder system.
UGI GOMS Element 18
Physical Security
2004 Internal Audit
Page 49 of 62
ELEMENT 18 PHYSICAL SECURITY
Audit Date : 25 August 2004 (Jakarta)
26 August 2004 (Salak)
31 August 2004 (Wayang Windu)
Element Coordinator : Bob Djanegara
Interviewee : Bob Djanegara (Jakarta), Sutiyono (Salak), Agustiamsyah (WW)
Auditor : Rex Soeparjadi (Lead), Iman Santoso
Overview
Protecting the Business Unit's personnel, facilities, and privileged information against violence,
theft, sabotage, civil disruption and other undesirable events is core to business unit survival
and adding value.
Due to changes in worldwide security needs, physical security profiles in Jakarta, Salak and
Wayang Windu have greatly been improved but needs to be complemented with proper
documentation and enforcement to maintain program robustness.

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This element received an Exception rating during the UGI audit and had four recommendations.
All recommendations except for security awareness training in Salak and WW have been
completed.
2003 Audit Rating
This element received an average of Exception rating. First standard received an Exception
rating during the UGI audit and had seven recommendations, all of which have been followed-
up except for obtaining management approval for the security SOPs. Progress has been made
on the third standard on record management, which received deficient rating.
2004 Audit Findings
1. Standard has expired and is in the process of renewal. Will be made simpler and follow
Corporate OMS.
2. The Salak Security Supervisor was not aware of the existence of a PPS. The WW Security
Supervisor only has one goal in his field developed PPS. Traditionally, the standard and its
PPS is designed for a centrally located Security Coordinator in Jakarta.

UGI GOMS Element 18
Physical Security
2004 Internal Audit
Page 50 of 62

3. Jakarta has done a risk assessment following the 2003 audit. About 80% of the
recommendations have been addressed. Salak and WW have also done risk assessments
and recommendations are being addressed.
4. Training.
o Voluntary Principles of Human Rights Training. Salak has trained their security forces
including contract security, police and military personnel assigned to Salak project.
Jakarta and WW security personnel (including contract guards) have not received this
training. Unocal currently pays the police for providing needed services in Jakarta and
WW, and is liable for VPHR violations.
o Security awareness training. Jakarta has done this training for employees but similar
training has not been conducted in Salak and WW.
5. The business unit has not defined scope and objectives of their physical security program.
A security management system document has been developed but has not been approved.
This will have the scope, objectives and PPS responsibilities. The General Services group
has recently taken control of the security group but for temporary basis only until the current
Jakarta Security Coordinator retires.
6. Area scope for Salak and WW security is not clear between contract area vs. right of ways.
7. SOPs in Jakarta and Salak have not received management approval.
8. Police equipped with sharp bullets have worked for UGI and MNL.
9. Quarterly meetings have been initiated between the Jakarta, WW and Salak security groups
to maintain communication and share practices.
10. UGI has submitted a draft MoU for Pertamina to be agreed to with POLRI which will become
the basis for a joint operation for the fields.
11. Yearly risk assessment has been conducted as part of risk profile evaluation.
12. Inspection of vehicles and personnel identification entering the WW power plant site was not
conducted.
13. Issues on fraud and embezzlement have been addressed. Accounting practices are being
addressed separately by the accounting group and supported by the SOX programs. In
general the business unit is relying on other corporate and HR policies and procedures to
address conflict of interest issues.
14. On Record Management, standard and procedures are being developed, led by Bob
Djanegara. Pilot projects in Jakarta office and Salak are on going. WW element custodian
was not aware of this standard responsibility. WW has their own Document Management
System and procedures have been established.
Recommendations:
1. Provide training on Voluntary Principles on Human Rights (VPHR) for Jakarta and WW to
comply with corporate policies, and training on Security Awareness for Salak and WW.
(Jakarta and WW)
2. Alternate annually between internal and third party security and physical security risk
assessments as will be practiced in Salak. (Jakarta and WW)

UGI GOMS Element 18
Physical Security
2004 Internal Audit
Page 51 of 62

3. Revise the standard and develop PPS for Jakarta, Salak and WW security coordinator/
supervisor. (General)
4. Review Jakarta SOPs and Salak SOPs developed by Hill and Associates, revise as
necessary to fit operational needs and obtain management approval. (Jakarta and Salak)
5. Clarify area scopes for security responsibility between contract area, ROW, and forestry
protection. (Salak and WW)
6. Develop a check list to ensure that police and military personnel supporting UGI and MNL
are not equipped with sharp bullets and have received VPHR training. (Salak and WW)
7. Enforce vehicle search and check personnel identification, with no exceptions, prior to
entering WW power plant site. (WW)
8. Remove Record Management from this element and placed in another or new element.
(Jakarta, Salak and WW)
9. Consider using WW best practice on Document Management System (Jakarta and Salak)

UGI GOMS Element 19
Information System and Data Security
2004 Internal Audit

Page 52 of 62
ELEMENT 19 - INFORMATION SYSTEM AND DATA SECURITY
Audit Date : August 25, 2004
Element Coordinator : Tutuko Resihadi
Auditor : Bob Djanegara (Lead), Paul Taylor.
Interviewee : Tutuko Resihadi (in Jakarta) / Reza (in Salak)
Place : Bob Djanegaras office (Jakarta) / Rezas office (in Salak)
Overview
Protecting the Business Units information technology, applications, privileged information
against violence, theft, computer fraud, fire, civil disruption and other events is core to business
unit survival and added value.
Procedures address information security. Any Information System and Data Security programs
need to ensure that Unocal Records Management Policy is implemented and personnel will be
able to execute effective information security response.
The Information Systems and Data Security Standard covers all geothermal field operations,
including Gunung Salak, Wayang Windu. It also includes the Unocal Indonesia Company
Jakarta Office related to the used of information technology, application , and other privileged
information.
A revision of the standard has been made, but not submitted and approved by GOC yet.

Criteria

Jakarta

Salak
Wayang
Windu
This standard received an Exception rating during the audit and had three (3)
recommendations. No formal actions closeout was viewed but in general it appears that the
recommendations were properly followed up.
This standard received an Effectively Design and Implemented rating during the audit and had
no recommendation.
2004 GOMS Internal Audit Findings:
1. We do have an equipment to protect the computer from electronic surge using the UPS
2. The program for UPS Maintenance is available.
3. In the opinion of the Element Coordinator, the current standard doesnt really cover the
Information Security Manual (ISM). He is proposing a new standard that is in full
compliance with the ISM.
UGI GOMS Element 19
Information System and Data Security
2004 Internal Audit

Page 53 of 62
4. Corporate directive stated that ISM should be implemented in Jakarta Office
5. SOX (Sarbanes Oxley) is also part of data security
6. We are using ISM.
7. Conducted IT Risk Profile in Jakarta Office at the end of July 04 (w/ Paul Hatenhof from
corporate)
8. The PPS for the Information System Security are available in Livelink
9. IT is in the process to make a back up program for individuals hard disks. Target to finish
by the end of this year.
10. Security awareness program for IT personnel has been done in Jakarta but lacking for the
personnel in the field.
11. Security awareness program for all employees has not been done yet.
12. For the other employees, Unocal is using the Corpedia training.
13. Had a cooperation with training department to have this IT security awareness training.
14. IT Personnel in Gn Salak is only taking care of operational matters, and backing up the data
in the server (daily and full backup), using Quantum tape backup.
15. IT Personnel in Gn Salak is also taking care of users complaints regarding software and
hardware, including telecommunication
16. IT Personnel in Gn Salak is not aware of the GOMS Standard for IT and data security, and
his personal performance standards.
17. IT Personnel in Gn Salak never been audited before (he is a contractor).
18. There is no existing program to backup user hard disk in Gn Salak. IT Personnel in Gn
Salak only encourage the user to back up their own computer to CD RW or F Drive.
19. IT Personnel in Gn Salak never received a security awareness program training
20. IT group has assumed responsibility for changes in software. They manage the MOC
process. It is not clear who covers the DCS program and software.
Recommendations:
1. Review and revise the standard for element 19 to include ISM.
2. Conduct the IT Security awareness training for all IT Personnel in the field
3. Conduct the IT Security awareness training for all employees, in Jakarta and in field.
4. Continue with the program to backup selected employees PC Hard Disk.
UGI GOMS Element 20
Man Power Planning and Competencies
2004 Internal Audit

Page 54 of 62
ELEMENT 20 - MANPOWER PLANNING AND COMPETENCIES
Element Coordinator : Hudi Soerjodipuro.
Auditor : Bob H.A.S. Djanegara (Lead) , Ferri Fatra
Interviewee : Hudi Soerjodipuro (accompanied by Pipu, Dinda and Aria)
Rully Wirawan
Place : 12
th
Floor Conference Room / Wayang Windu
Overview
This element standard provides guidelines for Manpower planning and to ensure that
employees have the knowledge, skills, and competencies to safely perform assigned job tasks
in Unocal Geothermal of Indonesia (UGI) and effectively match those knowledge, skills and
competencies to the specific job requirements. It is also a tool to transform Unocals Vision
(Best People, Best Partner and Best Performance) into reality through Employee Development
and Succession Planning.
The current standard was made in 2001 and supposed to be reviewed in 2003. The element
coordinator intention is to revise the standard this year, no proposal has been made yet.

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This standard received an Exception rating during the audit and had five (5) recommendations.
No formal actions closeout was viewed but in general it appears that the 4 (four)
recommendations was properly followed up, and there is no significant progress on the other
one.
2003 Audit Rating
This standard received an Effectively Design and Implemented (with suggestion) rating during
the audit and had 5 (five) recommendations. In general, it appears that there are a minimum
progress on the follow up to the recommendations.
1. The standard is obsolete because there has been an organization change with HR and OD.
A Standard developed for the old HR Organization is available on the share drive and HR
Portal. Written procedures are not posted, but available with HR personnel. Roles and
responsibilities are not clearly defined outside the OD and HR Departments.
UGI GOMS Element 20
Man Power Planning and Competencies
2004 Internal Audit

Page 55 of 62
2. Performance Standard for the Position Profile development is not up to date. The position
that should provide the Position Profile is no longer available. This is due to the organization
change in OD & HR.
3. Personal Performance Standards have not been changed to reflect the organization change.
4. RPTK is available. A written procedure for the development of RPTK process (linked to
WP&B and hiring plan) does not exist.
5. Hiring procedure is available with OD personnel, and complies with the local and Unocal
regulations. It has not been updated to reflect the new organization. Wayang Windu
personnel were not aware that the procedure existed.
6. At this point in time, the completeness of the Jakarta position profiles is not known.
7. Position Profile for Salak and Wayang Windu are complete.
8. There are no performance standard of the HR Coordinator in the field, stating their roles and
responsibility.
9. Standard for maximum age noted in Performance Standards conflicts with Unocal Corporate
Policy on age discrimination.
10. UICo has a functioning Understudy Program, but it is not in place for UGI personnel.
11. Asked about Succession Planning but was not able to ascertain whether it is active or in
place.
12. Changes in the organization occur without an MOC.

Recommendations:

1. Review and revise the standard and procedures for Element 20 to reflect the current
organizational change and include all current OD/HR practices.
2. Track accomplishment with regards to position profile development. Report status at
Element Coordinator meetings.
3. Make procedure for RPTK and hiring plan.
4. Incorporate the expatriate manpower planning and work permit process in the standard as
recommended by 2001 Audit
5. Move the Succession Planning and EDP (Employee Development Plan) sections of Element
20 to the Element 21 for better continuity.
6. Consider developing a MOC procedure for Organization Change.
UGI GOMS Element 21
Orientation, Training, Mentoring and Performance Management
2004 Internal Audit

Page 56 of 62
ELEMENT 21 - ORIENTATION, TRAINING, MENTORING, & PERFORMANCE MGT
Element Coordinator : Totok Sutarto
Auditor : Bob Djanegara (Lead), Ferri Fatra
Interviewee : Totok Sutarto & Aria (Jakarta), Faisal (Salak),
Rully Wirawan (WW)
Place : Totok Sutartos office, Salak, Wayang Windu
Overview
A skilled and knowledgeable workforce is a critical success factor for meeting business
objectives. The Training and Employee Development should be customer and quality product
focus, which is to ensure that skills training and career development program are developed and
maintained to meet Unocals business objectives and regulatory requirements. The Training and
Employee Development should strive to materialize Unocals Vision and Values.
Essence of the findings:
Lack a mentoring program that is linked to succession plan
Lack Succession program
Training in Salak and WW okay
Jakarta training program ad hoc and not well defined
Performance Management inconsistent across the organization
No training process map (a tool to help us understand the process).
Orientation is lacking

Overall Business Unit Element Rating: Exceptions

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Ratings
This standard received an Exception rating during the audit and had eight (8) recommendations.
No formal actions closeout was viewed but in general it appears that the recommendation were
properly followed up.
2003 Audit Ratings
This elements received an Effectively Design and Implemented (with suggestions) rating during
the audit and had 2(two) recommendations. No formal actions closeout was viewed, but in
general, all the recommendations were properly followed up.
UGI GOMS Element 21
2004 Internal Audit

Page 57 of 62
1. Program is available in the Standard the current standard was last revised in 1999. No
review has occurred 2001. In 2003 a new, revised standard has been made, but it has not
been submitted and approved by GOC yet.
2. Succession Planning and EDP is covered by this element, but not fully implemented.
3. Input for the training was in accordance with the standard GO-21.0
4. Jakarta training needs assessment is left to supervisors and managers. It appears the
assessment is ad hoc and the quality is not consistent across the departments.
5. Salak and WW training needs assessment is very thorough and transparent. WW uses a
individual training plan, they dont use EDP.
6. There are no competency criteria (qualification) for the internal trainer. There was also no
evaluation of the trainer (standard GO-21.0 requires the trainer to be evaluated at least
every 2 years)
7. Training Department conducted Train-the-Trainer training.
8. Mentoring/coaching skills training is not provided for all supervisors and managers within the
first six months of assignment as per the standard. The last time we conducted the
mentoring/ coaching skill training was in September 2003. OD has plans to conduct a
refresher campaign for Mentoring program by October 2005.
9. Salak and WW employee awareness of the mentoring program is low.
10. The quality of performance appraisals are not consistent across the organization. The
training for PA was offered to all managers (and the people assigned by them) every year.
11. Not all new employee/ transfer received the orientation checklist. Wayang Windu personnel
were not aware that checklist A, B & C exist, even though they have done the orientation in
early 2004.
12. In Wayang Windu, the orientation is considered as a kind of training. Therefore, it was filed
under the training file, not the personnel file.
13. There are no follow up on the statement The designated person shall conduct a one (1) hour
follow-up session to review key issues within the first month of employment or transfer.
14. There are no follow up on the statement The designated person will evaluate the quality and
content of the initial and follow-up orientation system annually in the standard GO-21.0
15. Training section is moving toward a system to have employee training nomination
procedures completed using e-prove. Target completed by the end of October
16. EDP implementation is done, except in Wayang Windu
17. The Succession Planning program is not well understood by employees and managers.
18. EDP is not taken care by Training Coordinator in Salak and Wayang Windu. Training
Coordinator in Salak and Wayang Windu never take any input about the EDP training need
from Totok.
19. Training Coordinator in Salak and Wayang Windu provide input for Totok
20. There is no standard procedure to conduct TNA and training plan.
21. Training Coordinator in Salak and Wayang Windu doesnt know the existence of Mentoring
program in Salak and Wayang Windu. Coaching does happened in Salak & WW.
22. Training Effectiveness survey was done GS for Salak & WW.
UGI GOMS Element 21
2004 Internal Audit

Page 58 of 62
23. GOMS 21.2.5 requires Training Supervisor to comply with permit/certification requirements
when this a Compliance issue element 3. (recommendation 7)

Recommendations:

1. Close the gap on the competency criteria (qualification) for the internal trainer as per the
standard GO-21.0.
2. Get the mentoring program back on line. Starting by conducting refresher training on this
matter.
3. Review the current Orientation System to make it more effective, develop check system to
ensure it is being done. Assign a person who will evaluate the quality and content of the initial
and follow-up orientation system annually, as per the GO-21.0 requirement.
4. Get the latest standard GO-21.0 reviewed by GOC.
5. Clarify the procedure for Training Need Analysis and Training Plan. Consider mapping so
that employees and supervisor better understand process and intent.
6. Develop a PPS for the HR Coordinator in the Standard.
7. Recommend to state in the standard that : The Compliance Element Coordinator/ co-
coordinator with the assistance of Supervisors will ensure that licenses or certificates will
be issued as required for mobile equipment operators, and other specialized positions.
Employees must demonstrate competency before being issued a license or certificate.

UGI GOMS Element 22
Accounting Practice
2004 Internal Audit

Page 59 of 62
ELEMENT 22 - ACCOUNTING PRACTICES
Audit Date : 23 August 2004, 31 August 2004
Element Coordinator : Fajar Suryadi
Interviewee : Fajar Suryadi, Doug Weaver, Sean Clingenpeel (Jakarta)
Ongky Rahadi (Salak per phone call), Riko Fachruddin (WW)
Auditor : Rex Soeparjadi (Lead), Brad Wendt
Overview
The Unocal Corporate OMS does not have standards for accounting practices. However,
UG-IBU included accounting standards and procedures into their GOMS. The objective is to
provide guidelines in order to link the financial and accounting aspects of running the business
unit and to better define the operational budgeting and expenditure monitoring and control. It
goes without saying that with out accurate and timely financial data and reports it is difficult to
manage the operation in cost effective manner.
Unocal has initiated a company-wiede effort to identify and track the key elements of our
internal financial and accounting control system. This effort will ensure that we have complete
documentation and our controls are effective, as required by SOX (SOX is an acronym for the
Sarbanes-Oxley Act of 2002). Standards and procedures developed as part of the SOX
initiative are meeting the intent of this BU element. Meanwhile, the Finance department has
developed a portal and live-link repository for generic accounting policies and procedures. At
the Field level, the accounting practices are adequate but lack clarity that would be provided
with written procedures identifying roles and responsibilities and linked to the Finance
Department.

Criteria

Jakarta

Salak
Wayang
Windu
2001 Audit Rating
This element received an Exception rating during the audit and had five recommendations.
Current works are addressing the recommendations with the exception of rolling out procedures
and policies to all users.
2003 Audit Rating
The Corporate OMS does not have standards for Accounting Practice and a review of the
Element was not done in the 2003 Corporate Audit. The element was not rated.
2004 Audit Findings
1. Element Standard is obsolete and being replaced by the Sarbane-Oxley Directive. The
program once completed will meet the intent of the GOMS definition of a good program.
UGI GOMS Element 22
Accounting Practice
2004 Internal Audit

Page 60 of 62
2. Process narratives and mapping have been generated for identified processes. Desk write
ups for individual responsibilities have also been produced.
3. Finance/Accounting Portal has been developed that provides general policies and
procedures for Accounting. The majority of the procedures is written for Balikpapan
operations, but is applicable to the Geothermal BU.
4. Risks are being properly mitigated and audits by internal, external, and government groups
ensure compliance.
5. Salak and WW Fields do not have any standards or procedures for executing and controlling
basic accounting functions such as Expense Coding, Invoicing Process, Signature Levels,
Petty Cash, Work Plan and Budget Process, etc. The processes are understood at the Field
Manager and Superintendents levels but not by all Supervisors and/or Project Engineers.
Salak has Field Petty Cash Guidelines and Procedures.
6. WW has good field accounting procedures and guidelines from previous management which
can be used as basis for future development.
7. Element Coordinator did not receive orientation when assign the responsibility.
8. There are issues with hand-off on procedures that interact with end-user groups. End-users
are not familiar with procedures and policies such as on AFE preparation and personal
expense account reporting, and expense cost coding.

Recommendations:

1. Continue to support the efforts to develop an Accounting Program per the corporate
directive. Use mapping and process flow charts to describe accounting processes.
(General).
2. Develop a sub set of procedures and guidelines for Field application. Use process flow
charts to describe accounting processes. (General)
3. Provide training and build-up awareness and knowledge among end-users. (General)
4. Components of a good program may consist of the following:
Written policies, standards, procedures and guidelines
Understanding and implementation of the above reflected in daily operations
Continuous periodic review for improvements

UGI GOMS Element 23
General Services
2004 Internal Audit

Page 61 of 62
ELEMENT 23 GENERAL SERVICES
Audit Date : 25 - 31 August 2004
Element Coordinator : Muhammad Slamet
Interviewee : Muhammad Slamet (Jakarta 25 August 2004)
Ongky Rahadi (Salak 26 August 2004)
Agustiamsyah, Bambang Purbagyo (WW 31 August 2004)
Auditors : Iman Santoso (lead), Rex Soeparjadi
Overview
This element was introduced in 2001 and unique to GOMS. The element addresses the work
that is done by the general services group that affects the Geothermal Operations. Having
understood procedures and roles and responsibilities improves the efficiency of the Jakarta
Office administration.
The element does not represent high risk but does provide an opportune to streamline
administration and make the operations more efficient.
Overall Business Unit Element Ratings: Deficient

Criteria

Jakarta

Salak
Wayang
Windu
2001 GOMS Audit Rating
This standard received Exception rating during the audit and had 4 recommendations. No
formal action closeout has been done.
2003 Corporate Audit Rating
Not Applicable for OMS Audit.
2004 GOMS Audit Findings:
1. Well defined, written policy, standard and procedure do not exits. (Jakarta, Salak)
2. Plans to write formal procedures exist but due to lack of resources the progress is very slow
(Jakarta)
3. The Jakarta group lacks middle level personnel to assist in the development of standards
and procedures. Management Reporting Supv was hired 1 week prior to the audit. Office
and Expat Service Supv. will be joining the group shortly.
4. General Services scope of work includes: Office Services, Housing Services, and
Formalities.
5. As previous internal audit (2001) all works are performed on the basis of common practice,
experiences and concept of remembering by head (M. Slamet term)
UGI GOMS Element 23
General Services
2004 Internal Audit

Page 62 of 62
6. There are some documentation which are part of the existing working records such as:
Building Management Hand Book
Request Form (i.e. stationary)
MoM of General Rules or How we work round here
Matrix on compliance management
Jakarta Expatriate Policy (expired but still being used)
Guidance on driving: You and Your Driver

7. A self developed software named I-Formalities is used for keeping track of formalities
requirements
8. Service Level Agreement is being developed
9. Plan to outsource housing services, as driven by corporate needs, puts on hold any
progress on housing services procedures preparation
10. Special projects such as office renovation lack GOMS compliance such as PPE, MOC,
Project and Contract Management, Work Permits, etc.
11. The fields can benefit form several guidelines and procedures once Jakarta completes its
documentation. WW has developed some procedures for General Services.

Recommendations:
1. Develop action plan to follow up recommendation of Internal Audit 2001:
Develop a General Services Standard (called as GO-23.0), to cover :
Vision & Mission of the group
Roles and responsibility of each section
Responsibility Matrix
Procedures and guidelines
Evaluation procedure
2. Develop and document procedures for each responsibility performed by each section (i.e.
Ex-pat Housing Administration, including Maintenance, etc.)
3. Educate customer by conducting more intensive awareness program on what are General
Services responsibilities and deliverables (consider the Jakarta Office General Meeting as a
venue).
4. Finalize and implement the Partnering Agreement (SLA) with internal customers
5. Element 23 scope should cover also Salak and Wayang Windu.

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