REPUBLIC OF IRAQ

MINISTRY OF OIL

Legal Department

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Ref. No: 4871

Date: 12/4/2017

Attn. / All Oil Companies and Departments

Oil Institutes

Petroleum Research and Development Center

Oil Cultural Center

Guest House

Subject/ Instructions

We hereby enclose to you a copy of the instructions concerning HSE requirements No 12 for the
year 2016, published in Iraqi Gazette No 4421 dated 24/10/2016. Kindly review and incorporate
contractual terms that are in line with the requirements of applying HSE system within the signed
contracts.

Sincerely

LAITH ABDULHUSSEIN AL-SHAHIR

Director General

Kindly review and be informed, sincerely

HAYAN ABDULGHANI ABDULZAHRA

Based on the provisions of Clause (i), Paragraph Second, Articles 114, 116 and Paragraph
Second, Article 118 of Labor Law No.37 of 2015, we have issued the following instructions:

No. 12 of 2016

Instructions

Occupational Health and Safety Requirements

"Al-Waqaia Al-Iraqiya" (Iraqi Official Gazette) No. 4421 (7) on 10/24/2016

Article 1 - First - a commission named Engineering Inspection Commission is to be established

at the National Center of Occupational Health and Safety, with the following composition:

a) General Director of the Center – Chairman;

b) Head of Occupational Safety Department of the Center - member;

c) Two engineers from Occupational Safety Department of the Center, one of them acting as the
secretary of the Commission - members.

d) Experts/consultants (members) in engineering inspections from the following ministries:

(1) Ministry of Higher Education and Scientific Research

(2) Oil Ministry
(3) Ministry of Industry & Minerals
(4) Ministry of Electricity

Second - the Commission mentioned in Paragraph First of this Article, shall undertake the
following:

a) To implement into practice the goals specified in Paragraph Second of Article 115 of the
Labor Law No.37 of 2015.

b) To inspect various steam boilers, pressure vessels, electrical lifts, lifting instruments and
related accessories, and issue annual inspection certificates.

Article 2 - The Employer is obligated to guarantee safety of machinery and hazardous equipment
in its projects, which includes the following:

First - to keep safety of various steam boilers, pressure vessels and their accessories, as well as
mechanical lifting equipment and their accessories, and electrical lifts.

Second - to obtain annual inspection certificates for machines and equipment from the
appropriate commission.
Third - to train employees to properly operate machines and equipment in order to ensure that
incidents and occupational injuries do not happen during operations.

Forth - to properly arrange locations of machinery and equipment and storage of raw and
produced materials through workplaces in the project area, so as to keep danger away from
employees.

Article 3 - The employer is obligated to ensure the occupational health and safety requirements
are in place, as follows:

First - to conduct primary medical check-ups of workers prior to commencing work, and ensure
that each worker is physically, psychologically and mentally fit for the job he is assigned to do.

Second - to arrange regular and specific medical examinations of workers, according to

instructions from the doctor or medical authority responsible for treating workers, in order to
ensure their safety and physical fitness; and keep the results of the examinations in workers'
personal employment files to be subject to inspection.

Third - to ensure that first-aid medicines and equipment are available according to the number of
employees and to the nature of work in the project, which includes providing a first aid kit and to
appoint a person responsible for the kit to be complete with first aid materials; that person shall
be properly trained to use various means of first aid.

Forth - to provide a suitable, healthy and secure workplace.

Fifth - to provide pure healthy potable water as it is seasonably appropriate.

Sixth - to provide bathrooms, utility rooms and laundries according to the number of workers.

Seventh - to provide rooms equipped with clothes cabinets for male and female workers
separately.

Eighth - to provide a lounge facility for employees to take rest and food, offering conveniences
and services like heating, cooling, air-conditioning, chairs and carpeting.

Ninth - to provide employees and their families with healthy and suitable accommodations close
to the workplace, especially if the workplace is located in a sparsely populated area, and ensure
appropriate transportation to and from the workplace.

Tenth - to involve the project's doctor into health, safety and work environment commissions.

Eleventh - to post occupational health and safety instructions in conspicuous locations,

specifying what employees shall do and what they shall refrain from doing.

Twelfth - to provide essentials to ensure employees' health and safety free of charge, as well as to
protect the project from risks and work accidents.
Thirteenth - to provide and maintain personal protective means, tools, equipment; to train
employees to use them; never replace such means, tools and equipment with cash compensation
to employees.

Fourteenth - To keep the project's buildings and facilities clean and in good condition; to provide
means to dispose of waste and substances that are harmful to health, resulted from various
operational activities.

Fifteenth - to provide all necessary fire-fighting means, fire alarms and to regularly check their
condition; to train no less than 25% (twenty five percent) of the project's employees to use such
means and equipment.

Sixteenth - to use early automatic fire alarm equipment and follow safe methods while handling,
storing and moving materials, especially those flammable or explosives.

Seventeenth - to protect employees from electrical hazards and provide safe tools and
installations in accordance with the nature of each project; to keep dangerous equipment in a
locked room or apply appropriate barriers limiting access to authorized personnel only.

Eighteenth - to immediately launch an investigation in case of accidents or work injuries;

establish the responsible party and develop appropriate solutions in order to avoid any
recurrence; notify competent judicial and health authorities, as well as the National Center of
Occupational Health and Safety by completing a form designated for that purpose.

Nineteenth - to follow safe and secure ways while handling and storing hazardous materials,
keeping them in special storage facilities clearly labeled to indicate the hazard of the material;
take up all necessary precautions while entering enclosed spaces and ensure safety of employees
while handling hazardous materials; to observe the conditions of gas cylinders storage.

Twentieth - to create work spaces where a project requires so, establishing approved safe
dimensions, with ceiling height no less than 3,5 meters and the distance between machines and
between a machine and a wall no less than 1,5 meter. and providing appropriate air conditioning,
lightning and all other essentials of occupational safety.

Twenty first - to fence hazardous work places, stairs and passages.

Twenty second - to protect employees from radioactive materials according to the provisions of
Radiation Protection from Ionizing Radiation Law No.99 of 1980 and the related regulations.

Twenty third - to obtain work permits from the safety officer prior to commencing dangerous
work.

Twenty fourth - to ensure the machine is appropriate for the worker and the job in a way that
guarantees health an safety of employees.
Twenty fifth - to put up educational posters telling about risks related to machines and equipment
the use of which might be dangerous, in conspicuous locations in order to prevent accidents and
work injuries from happening.

Twenty sixth - to protect employees during welding and cutting operations and train them to
safely use various welding equipment and techniques.

Twenty seventh - to take necessary measures in order to replace harmful industrial raw materials
with those less hazardous.

Twenty eighth - to provide posters and pictures with signs warning of dangerous operations.

Twenty ninth - to make employees aware of the working environment through training
workshops aimed at advancing the culture of occupational health and safety; to conduct training
courses for employees to make them aware of occupational risks and means to avert them.

Thirtieth - to train safety officers to use occupational safety assessment tools.

Thirty first - to follow the guidelines and threshold limits related to physical, chemical and
biological contamination of the working environment, in accordance with the approved
standards and limits set out for such exposure.

Article 4 - the project's doctor is obligated to do the following:

First - to immediately inform competent health authorities and the National Center of
Occupational Health and Safety about occupational diseases and hazardous incidents that
threaten the employees’ safety.

Second - to provide health serviles for employees in the work sites by conducting various
occupational medical examinations.

Third - to monitor occupational diseases and study their infectivity.

Article 5 - The responsibility for the occupational safety in the project is defined as follows:

First - in the projects where the number of workers is 50 (fifty) or less, the responsibility is
designated to one of the project's employees in addition to his occupational duties.

Second - in the projects where the number of workers is more than 50 (fifty) and up to 100 (one
hundred) persons, the responsibility is designated to one of the project's employees, who is
specifically appointed for that purpose on a full-time basis.

Third - in the projects where the number of workers is more than 100 (one hundred) and up to
500 persons, the responsibility is designated to a committee within the project, named
Occupational Safety and Health Committee with the following composition:
a) Employer or his representative - chairman.

b) Technical Director - member.

c) Managers of technical departments - members.

d) Doctor or paramedic of the project - member.

e) Representative on behalf of workers - member.

f) Safety officer - full time member and secretary of the committee.

Forth - in the projects where the number of workers is more than 500 (five hundred) the
responsibility is designated to a committee set up in accordance with Paragraph Third of this
Article, given that the number of full time safety officers shall be two persons.

Article 6 - First -the Occupational Safety and Health Committee of the project shall undertake
the following duties:

a) To control occupational safety issues in the project.

b) To study the circumstances of incidents that face the project and find out what caused them to
happen; to develop preventive and corrective measures to avoid such incidents and reduce the
damages resulted thereof.

c) To provide first aid, fire-fighting equipment and hydrants in various places across the project;
to select protective clothing and tools according to working conditions and ensure their
utilization by employees.

d) To monitor compliance with these instructions by the project's departments and conduct
regular inspections in this regard.

e) To make employees aware of, and instruct them to properly use the means of occupational
safety and health.

f) To assist the occupational safety officer of the project in the implementation of the
occupational safety and health program.

Second - the committee shall hold a regular meeting during working hours, at least once per
month.

Third - if the committee holds a meeting, the quorum is recorded as present if majority of its
members are in attendance, including the representative of the workers as a necessary condition;
in case of lack of quorum, the meeting is to be postponed to a later date within 30 days period
with quorum to be recorded as present irrespective of the number of those in attendance.
Forth - the secretary is responsible for keeping minutes of meetings and records thereof.

Fifth - the chairman of the committee is entitled to call an emergency meeting if a major
incident has happened or might happen.

Article 7 - First - The Employer shall select one of the project's workers to hold the position of
the occupational safety and health officer, provided that such a person meets the following
requirements:

a) To have taken a basic course in the National Center of Occupational Health and Safety or to
have a certificate as a trained specialist in occupational safety.

b) To be capable of training the project's workers in various areas of occupational health and
safety.

c) To be capable of planning and implementing the occupational health and safety program.

d) To have knowledge in industrial data related to the project.

Second - the project's safety officer is responsible for the following:

a) To promote safety awareness and culture of preventive actions among the project's employees.

b) To regularly inspect work places of all the project's departments, detect dangerous areas and
report them in order to prevent incidents, and ensure that employees use means of protection.

c) To ascertain the causes of incidents, injuries at work, occupational diseases and put forward
proposals in occupational safety and health to the project's Occupational Safety and Health
Committee or to the Employer in order to define preventive measures guaranteeing non-
recurrence and to ensure safety of the project's employees.

d) To arrange record keeping of accidents, injuries at work, occupational diseases and prepare
regular reports in cooperation with the project's medics.

Forth - the secretary is responsible for keeping minutes of meetings and records thereof.

Fifth - the chairman of the committee is entitled to call an emergency meeting if a major
incident has happened or might happen.

Article 7 - First - The Employer shall select one of the project's workers to hold the position of
the occupational safety and health officer, provided that such a person meets the following
requirements:

a) To have taken a basic course in the National Center of Occupational Health and Safety or to
have a certificate as a trained specialist in occupational safety.
b) to be capable of training the project's workers in various areas of occupational health and
safety.

c) to be capable of planning and implementing the occupational health and safety program.

d) to have knowledge in industrial data related to the project.

Second - the project's safety officer is responsible for the following:

a) To promote safety awareness and culture of preventive actions among the project's employees.

b) To regularly inspect work places of all the project's departments, detect dangerous areas and
report them in order to prevent incidents, and ensure that employees use means of protection.

c) To ascertain the causes of incidents, injuries at work, occupational diseases and put forward
proposals in occupational safety and health to the project's Occupational Safety and Health
Committee or to the Employer in order to define preventive measures guaranteeing non-
recurrence and to ensure safety of the project's employees.

d) To arrange record keeping of accidents, injuries at work, occupational diseases and prepare
regular reports in cooperation with the project's medics.