PDO HSE MANAGEMENT

SYSTEM MANUAL
Introduction
(CP-122)

0.1 OVERVIEW
PDOs Health, Safety, and Environment Management System (HSE MS) is a structured approach to achieving our HSE goals, objectives,
and targets, and managing the HSE risks associated with our business. PDOs Statement of General Business Principles (SGBP) and the
PDO Code of Conduct describe how we conduct our business in terms of the fundamental expectations and standards which we set for
ourselves. Central to the SGBP is the following statement regarding HSE at PDO:

The Company will endeavor to conduct its business in

such a way as to protect the health and safety of its
employees, its contractor employees, and other persons
affected by its activities, as well as to protect the
environment, minimise pollution, and seek improvement
in the efficient use of natural resources.
Therefore, to be properly aligned, PDOs Health, Safety, and Environmental Protection Policy (PL 04) requires that a systematic approach
shall be applied to HSE management in order to achieve this endeavor.

PDOs HSE Management System provides this systematic and structured process for continual improvement in our HSE performance. It
concentrates, using eight (8) management system processes, on those areas and activities with the potential to have the greatest impact on
harm to people and the environment, to cause damage or loss to assets, to defer oil production, to cause financial loss, and/or to adversely
impact the Companys reputation. Continual improvement within the management system is symbolized by the cyclical arrows and is an
ongoing process within the entire HSE MS.

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PDOs HSE Management System Logo - An Ancient Form is Renewed and Improved!

From ancient times, the spiral-shelled ammonite has been one of natures perfect forms and symbols. Over the years, it has also been
adopted and has proven itself to be the trusted symbol of PDOs HSE Management System, or HSE MS.
The ammonite shell has particular significance. Its shape is based on the naturally occurring Fibonacci number sequence, continually
spiraling outwards with systematic precision and accuracy.
Also, as a logo for the Company, the stylized ammonite is individual, easily recognized, and is distinctly PDOs. The remains of life on earth
from ancient times helped form the varied hydrocarbon resources upon which PDO depends, with ammonites and other fossils leading
geologists back to ancient rock deposits in their search for oil and gas.
The logo of PDOs HSE Management System is also distinctly PDO. Its colors represent each process of the Management System. The
spiraling outward of the ammonite form evokes PDOs quest for continual and systematic improvement in HSE performance.

0.1.1 The Structure of PDOs HSE Management System

No company can operate effectively without a management system and controls in some form. A management system and its associated
controls are the structured means used to obtain reasonable assurance of achieving the Companys goals, objectives, and targets (including
its HSE goals, objectives, and targets). These controls should be well thought out and designed, clear, and systematic, so as to be
appropriate to the business. Without an appropriate management and business control framework, the Company and all involved
stakeholders with it may be subject to an unacceptable level of risk.
Internationally accepted standards and current good
practices have five basic processes of business control,
typically expressed in a Continual Improvement Model
Continual or loop, as follows:
Improvement
Policy

Review
1. Policy
2. Planning
Planning 3. Implementation and Operation
4. Checking
Checking
5. Review
Implementation
& Operation PDO has adopted these five processes of business
control and has developed an overall business control
framework.

This is the Corporate Management Framework or CMF.

This is the highest level document in PDOs overall
management system and describes the way PDO
manages its business. PDOs documentation hierarchy
and framework can be seen in Appendix One of this
chapter.

PDOs HSE Management System is an important part of PDOs overall business control framework, and this can be seen in detail in CP-
107, the Corporate Management Framework.

Table One on the next page gives an overview of the structure, associated documentation hierarchy, and documentation definitions of
PDOs HSE Management System.

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 PDO HSE MANAGEMENT
SYSTEM MANUAL
Introduction
(CP-122)

Table One: PDOs Documentation Hierarchy, Definitions, and HSE Management System
HSE Asset Level Business Control
DOCUMENTATION Key HSE Management System
Management Documents and Records (i.e.,
HIERACHY AND DEFINITIONS Documentation (i.e., high-level hyper-
System Manual examples of key documents and
linked documents in this manual)
(CP-122) associated records)
POLICY Self Assessment Questionnaires (SAQ) inputs
A document broadly defining PDOs expectations PL-04 Health, Safety, and Environmental Protection Statements of Fitness

and requirements. Leadership and HSE Plans
CP-107 Corporate Management Framework
Commitment Statement of General Business Principles (SGBP) Evidence of Leadership Tours, inspections,
communication activities, etc.

PL-04 Health, Safety, and Environmental Protection
Policy and PL-10 Security Policy & Emergency Response Policy HSE Legislation
Strategic CP-100 Policy Approval HSE licenses / approvals / permits
Objectives CP-107 Corporate Management Framework Etc.
Statement of General Business Principles (SGBP)
CODE OF PRACTICE PL-03 Risk and Internal Control Policy
A high level document that specifies the overall PL-04 HSE Policy
approach and procedure for performing a business PL-05 Governance Policy
process / activity, and which states the minimum Job descriptions
PL-08 Commercial Policy
requirements expected from employees, Organization, PL-09 Human Resources Policy
Minutes of committee and other meetings
contractors, and/or other relevant stakeholders. Responsibilities, Training plans

CP-100 Policy Approval
Contract documents
Resources, CP-102 Corporate Document Management
Monthly HSE reports
Standards, and CP-107 Corporate Management Framework

Competency / training records
CP-111 Relationship With Stakeholders
Documents CP-123 Emergency Procedures, Part I
Reports to external stakeholders
Etc.
CP-129 Contracting and Procurement
CP-141 Use of Concession Land by Third Parties
CP-162 Internal Communication

PROCEDURE
A document that specifies the way a work process / Hazards and Hazards & Effects Registers

activity / task is to be performed, describing why Effects PL-03 Risk and Internal Control HSE Cases
(purpose), what (scope), who (responsibility), when PL-04 Health, Safety, and Environmental Protection Environmental Impact Assessments
Management CP-131 Risk and Opportunity Management Integrated Impact Assessments
(frequency), how (tasks involved), and how many /
how much (specifications). (HEMP) Etc.

PL-03 Risk and Internal Control

PL-04 Health, Safety, and Environmental Protection

PL-09 Human Resources
PL-10 Security and Emergency Response
Asset Manager Mandate(s)
Emergency Response Documents Part II
SPECIFICATION PL-11 Asset Integrity and Disposal

The specific requirements that are mandatory with
respect to performance, implementation,
monitoring, and reporting. A specification can
apply to materials, products, activities, and/or
services.
Specific Contingency Plans
Planning and CP-107 Corporate Management Framework
Asset Level HSE Plans
CP-114 Maintenance & Integrity Management
Procedures CP-115 Operation of Surface Product Flow Assets
Work Permit Procedure
Operational Control documents / procedures
CP-117 Project Engineering
/ work instructions
CP-118 Well Lifecycle Integrity
Etc.
CP-123 Emergency Response Documents Part I
CP-126 Personnel and Asset Security
CP-136 Planning in PDO

PL-04 Health, Safety, and Environmental Protection

PL-06 Information Management and Internal
Communication All relevant Asset operational control
outputs

CP-114 Maintenance and Integrity Management procedures
Implementation CP-115 Operate Surface Product Flow Assets Work Permit Procedure
GUIDELINES and Operation CP-117 Project Engineering Management of Change Procedure(s)
A non-mandatory document providing CP-118 Well Lifecycle Integrity Etc.
supplementary information about acceptable CP 123 Emergency Response Documents, Part I
methods for implementing requirements found in CP-136 Planning in PDO
policies, business processes, procedures, work
instructions, etc. Audit reports
Audit follow-up Action Plans

PL-03 Risk and Internal Control
Assurance: Monitoring data
PL-04 Health, Safety, and Environmental Protection
Non-compliance report forms
Monitoring and PL-06 Information Management and Internal
Audit Communication
Corrective action plans
Incident reports
Follow-up Action Plans
RECORDS Etc.
A document containing information with respect to

results achieved and/or providing evidence of
activities performed. (A record is an output
document and it typically cannot be revised or
altered. Records are typically created from forms
and templates).
PL-03 Risk and Internal Control
PL-04 Health, Safety, and Environmental Protection
Minutes of management review meetings
Review CP-100 Policy Approval
Etc.
CP-107 Corporate Management Framework
CP-123 Emergency Response Documents Part I

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0.1.2 The Background and Basis of PDOs HSE Management System

This revision to the HSE Management System further advances PDOs continual improvement in HSE and its overall Corporate Management
Framework (CMF), a structure and Code of Practice document developed to provide clarity and direction on the principles by which PDO
manages its business. PDOs HSE Management System fits within the CMF. As such, the HSE Management System is aligned and meets
stakeholder aspirations and expectations in that it delivers compliance with the following:

Omani Law: While there is no specific legal requirement for PDO to have an HSE Management System in place, Omani Law
essentially requires that many of the key processes of a Management System are in place.
PDO Business Policies: PDOs Business Policies communicate our intentions and expectations for achieving stated Business
Objectives. PDOs HSE Policy requires that a systematic approach to HSE management shall be applied.
The ISO 14001 standard for environmental management systems.
The OHSAS 18001 specification for occupational health and safety management systems.
The Center for Chemical Process Safety (CCPS - 20 Elements for Process Safety).
Shell HSSE & SP Control Framework, Version 2, 2009, Shell Group Standards for Health, Security, Safety, the Environment &
Social Performance.
PDOs Management System hierarchy of documents (The Corporate Management Framework [CMF], Policies, Codes of
Practice, Procedures, Specifications, Guidelines, and Records).

The ongoing and future vision for PDOs HSE Management System is the systematic review, with revisions as necessary, leading to the
continual improvement of measures taken to protect the health, safety, and environment of those that may be affected by the activities of PDO.
This vision is also part of PDOs management commitment so as to ensure the suitability, adequacy, and effectiveness of the HSE Management
System. See Table Two ALIGNMENT OF PDOS HSE MANAGEMENT SYSTEM PROCESSES WITH 1SO 14001, OHSAS 18001, CCPS
PSM, and the SHELL HSSE & SP CONTROL FRAMEWORK on the next page for details.

0.1.3 Using this Code of Practice

Language
In this document the recommendations for a course of action are made with varying degrees of emphasis and mandate. As a rule:

'shall' / must indicates a required course of action at all times, with mandatory status within PDO, and a good practice.
'should' indicates a preferred course of action, and a best practice.
'may' / can indicates a possible, optional, and/or supplementary course of action.

In this document the collective expressions of PDO are sometimes used for convenience in contexts where reference is made to the specific
asset and/or for contractors in general. These expressions are used where no useful purpose is served by identifying the particular asset
and/or contractor(s).

Application
In general this Code of Practice is applicable to all PDO operations, assets, and facilities, employees, contractors, and other relevant
stakeholders. Should any significant deviations be made from the recommendations in this document, then users are required to inform
PDO of the nature and justification for these if it is intended that the deviations are to be permanent.

Feedback
The content of the HSE MS is not static, but a growing and improving collection of HSE expertise. Consequently, users are invited to comment
on the content to PDO and to suggest changes and additional material which they consider would be useful for inclusion in future revisions.
Please refer such comments to MSE52 using the Feedback Form on Page 8.

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PDO HSE MANAGEMENT
SYSTEM MANUAL
Introduction
(CP-122)

Table Two: ALIGNMENT OF PDOS HSE MANAGEMENT SYSTEM PROCESSES WITH 1SO 14001, OHSAS 18001,
CCPS PSM, and the SHELL HSSE & SP CONTROL FRAMEWORK
HSE Management Shell HSSE & SP Control
System Manual / ISO 14001 : 2004 OHSAS 18001 : 2007 CCPS PSM Framework,
CP-122 Version 2, 2009

Process / Chapter 1 4.4.1 Resources, Roles,

Leadership and No explicit reference. Responsibility, Accountability, 1. Process Safety Culture 1. Leadership and Commitment
Commitment and Authority

Process / Chapter 2 4.1 General Requirements 4.1 General Requirements

4.2 Environmental Policy 4.2 OH&S Policy
Policy and Strategic 4.3.2 Legal and Other 4.3.2 Legal and Other
2. Compliance with Standards 2. Policy and Objectives
Objectives Requirements Requirements

4.4.1 Resources, Roles,

Process / Chapter 3 4.4.1 Resources, Roles,
Organization, Responsibility, and Authority
4.4.2 Competence, Training, and
Responsibilities,
Awareness
Resources, 4.4.3 Communication
Standards, and
4.4.4 Documentation
Documents
4.4.5 Control of Documents
3. Process Safety Competency
Responsibility,
4. Workforce Involvement
Accountability, and Authority
5. Stakeholder Outreach
4.4.2 Competence, Training, and 3. Organization, Responsibilities,
6. Process Knowledge
Awareness Resources (including
4.4.3 Communication, Participation,
Management
Competence)
12. Training and Performance
and Consultation
Assurance
4.4.4 Documentation
15. Conduct of Operations
4.4.5 Control of Documents

6. Process Knowledge
4.3.1 Hazard Identification, Risk
Process / Chapter 4 Management 4. Risk Management
4.3.1 Environmental Aspects Assessment, and
7. Hazards Identification and Risk (including Managing Risk
Hazards and Effects 4.4.7 Emergency Preparedness Determining Controls
Analysis and Risk Assessment Matrix
Management and Response 4.4.7 Emergency Preparedness
14. Operational Readiness [RAM])
and Response
16. Emergency Management

8. Operating Procedures
4.3.3 Objectives, Targets, and 9. Safe Work Practices 5. Planning and Procedures
Process / Chapter 5 4.3.3 Objectives and Programme(s)
Programme(s) 10. Asset Integrity and Reliability (including Emergency
4.4.6 Operational Control
Planning and 4.4.6 Operational Control
4.4.7 Emergency Preparedness
11. Contractor Management Response, Management of
Procedures 4.4.7 Emergency Preparedness 13. Management of Change Change, Permit to Work,
and Response
and Response 15. Conduct of Operations Planning and Procedures)
16. Emergency Management

6. Process Knowledge
Management
Process / Chapter 6 8. Operating Procedures
6. Implementation Monitoring and
4.4.6 Operational Control 4.4.6 Operational Control 9. Safe Work Practices
Implementation and 4.5.4 Control of Records 4.5.4 Control of Records 10. Asset Integrity and Reliability
Reporting (specifically
Operation Implement)
11. Contractor Management
13. Management of Change
15. Conduct of Operations

4.5.1 Performance Measurement

4.5.1 Monitoring and Measurement
Process / Chapter 7
4.5.2 Evaluation of Compliance
Assurance: 4.5.3 Nonconformity, Corrective
Monitoring and Audit Action & Preventive Action
4.5.4 Internal Audit
and Monitoring
4.5.2 Evaluation of Compliance
4.5.3 Incident Investigation,
Nonconformity, Corrective
Action Preventive & Action
4.5.5 Internal Audit
6. Implementation Monitoring
and Reporting (specifically
17. Incident Investigation
Incident Investigation and
18. Measurement and Metrics
Learning, and Performance
19. Auditing
Monitoring and Reporting)
7. Assurance

Process / Chapter 8 20. Management Review and

4.6 Management Review 4.6 Management Review 8. Management Review
Review Continuous Improvement

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HSE MS Manual Format

Each HSE MS Process chapter contains the following standard sections and format, in order to explain and simplify its content for the reader:

1. OVERVIEW: This explains the WHY or purpose of the Process in the overall HSE MS.
2. REQUIREMENTS: This explains WHAT is required to be implemented in the HSE MS Process.
3. PROCEDURES: This explains HOW the HSE MS Process / activity is to be implemented or conducted.
4. REFERENCES: This explains to the reader WHERE to look for further implementation information in other PDO documentation.

0.2 PURPOSE AND OBJECTIVES

0.2.1 Purpose of PDOs HSE Management System

The purpose of PDOs Health, Safety, and Environment Management System is to manage threats, hazards, events, and effects to health,
safety, and the environment in a systematic and structured way. The management of these involves a systematic process of risk
identification, assessment / evaluation, control, monitoring, and recovery where necessary.

The HSE Management System also sets performance standards for managing health, safety, and environment, which will be assessed and
continually improved by a systematic approach to performance monitoring, audits, assessments, and reviews.

0.2.2 Objectives of the HSE Management System Manual Code of Practice CP-122
The objectives of this HSE Management System Manual or CoP 122 are:

To inform, by providing all employees, contractors, and other relevant stakeholders with a concise, comprehensive, and
structured description of all aspects of PDOs HSE Management System. As such, the Manual / CoP describes the processes
for managing HSE at the corporate level, and within any Asset Team. It also acts as the main reference framework for the
various documents that make up the HSE Management System.

To illustrate the linkages between the HSE Management System and the Business Control Framework used to manage PDOs
Asset Teams.

To provide a high level document which systematically addresses achievement of, and alignment to PDOs Three HSE Golden
Rules: 1) Comply with the law, standards, and procedures; 2) Intervene in unsafe or non-compliant actions; and 3) Respect our
neighbours.

To provide a high level document which systematically addresses achievement of, and alignment to PDOs Life Saving Rules:

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To inform and communicate PDOs HSE Management System to employees, contractors, and other relevant stakeholders in a
way that is interesting and easy to understand. It does this through color coding each chapter to represent each process of the
HSE Management System and matches the colors on the HSE Management System logo, as well as formatting each chapter in
a standardized way as defined above.

0.3 TARGET AUDIENCE AND DISTRIBUTION

PDOs HSE Management System applies to all PDO activities (including those conducted by employees, contractors, suppliers, and/or
other relevant stakeholders). The main target audience for this HSE Management System Manual is all PDO employees and contractors;
therefore it is designed for the widest circulation possible within PDO.

Contractors, suppliers, and other relevant stakeholders may also be considered as a target audience in that they may wish to use this
Manual / CoP as guidance in developing their own HSE Management Systems to meet PDO requirements.

Distribution of this document is controlled by the Document Owner, the Corporate HSE Manager. PDOs Electronic Document
Management System (EDMS) is used for document control.

This document shall be reviewed annually by the Document Owner. The objective of this document review is to determine the ongoing
suitability, adequacy, and effectiveness of CP-122, and to identify any needs for change, updating, and/or continual improvement. This can
be included in or as part of the PDO HSE-MS Management Review process as described in Process 8.

0.4 REFERENCE DOCUMENTS

Reference documents used in the writing of this Introduction, which may be used for more information:

PDO Policies PL-04 Health, Safety, and Environmental Protection PL 04

CP-102 Corporate Document Management CP 102

PDO Codes of Practice
CP-107 Corporate Management Framework CP 107

PDO HSE Procedures No direct link exists and/or is required. --

PDO HSE Specifications No direct link exists and/or is required. --

PDO HSE Guidelines No direct link exists and/or is required. --

Statement of General Business Principles (SGBP) January 2007

Other PDO Documents
PDO Code of Conduct April 2011

Shell HSSE & SP Control Framework, Version 2, (Shell Group Standards for
Shell Group Documents December 2009
Health, Security, Safety, the Environment & Social Performance)

Occupational Health and Safety Assessment Series OHSAS 18001:2007

Environmental Management Systems Specification with Guidance for Use ISO 14001:2004
Other Documents
Quality Management Systems Requirements ISO 9001:2008
The Center for Chemical Process Safety (CCPS - www.aiche.org/ccps) CCPS 2010

0.4.1 Other useful reference documents:

Please refer to the individual HSE MS Process for further reference documents and their hyper-links, and/or the Glossary for a complete
listing.

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0.4.2 Feedback

FEEDBACK FORM: In the spirit of continual improvement, CP-122 will be periodically reviewed and updated as necessary to
incorporate corrections and improvements identified by users. PDO would very much welcome your comments and suggestions to assist
this process.
If you would like to make any suggestions for improvement please can you send your comments on an email to MSE52, organizing the
information in a format similar to that shown below.
CP-122 Reference / Section Suggestions for Improvement

Appendix One: PDO Documentation Hierarchy and Framework

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