HSE Management - Guidelines For Working PDF
HSE Management - Guidelines For Working PDF
HSE Management - Guidelines For Working PDF
environment
organisation,
review resources and
documentation
leadership
and
commitment
evaluation
and risk
implementation management
and monitoring
planning
IMCA
P ublications
Global experience
The International Association of Oil & Gas Producers (formerly the E&P Forum) has
access to a wealth of technical knowledge and experience with its members operating
around the world in many different terrains. We collate and distil this valuable knowl-
edge for the industry to use as guidelines for good practice by individual members.
Our overall aim is to ensure a consistent approach to training, management and best
practice throughout the world.
The oil and gas exploration and production industry recognises the need to develop con-
sistent databases and records in certain fields. The OGP’s members are encouraged to
use the guidelines as a starting point for their operations or to supplement their own
policies and regulations which may apply locally.
Many of our guidelines have been recognised and used by international authorities and
safety and environmental bodies. Requests come from governments and non-government
organisations around the world as well as from non-member companies.
Disclaimer
Whilst every effort has been made to ensure the accuracy of the information contained in this
publication, neither the OGP nor any of its members will assume liability for any use made
thereof.
Copyright OGP
Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of Technical Editor to
review and address comments and suggested amendments.
HSE management - guidelines for working together in a contract environment
Table of contents
Purpose/Intent..................................................................................................................................................................... ii
Description ....................................................................................................................................................................... ii
1 Introduction 1
1.1 Background ...................................................................................................................................................................1
1.2 Interrelationship with other systems ..............................................................................................................................2
2 Overview of process 3
3 Planning 4
3.1 Objectives......................................................................................................................................................................4
3.2 Description of work .......................................................................................................................................................4
3.3 Risk identification .........................................................................................................................................................4
3.4 Contracting strategy ......................................................................................................................................................5
3.5 Contract schedule ..........................................................................................................................................................6
4 Pre-qualification 7
4.1 Objective .......................................................................................................................................................................7
4.2 Purpose and responsibilities...........................................................................................................................................7
4.3 Standard pre-qualification documents ...........................................................................................................................7
4.4 Screening .......................................................................................................................................................................8
4.5 From pre-qualification to selection ................................................................................................................................8
5 Selection 9
5.1 Objective .......................................................................................................................................................................9
5.2 Bid documentation prepared by company .....................................................................................................................9
5.3 Bid preparation by contractor ......................................................................................................................................10
5.4 Pre-award meetings .....................................................................................................................................................10
5.5 Incentive schemes for HSE ..........................................................................................................................................11
5.6 Contract award ............................................................................................................................................................11
6 Pre-mobilisation activities 12
6.1 Objectives....................................................................................................................................................................12
6.2 Kick-off meeting..........................................................................................................................................................12
6.3 Pre-job audits...............................................................................................................................................................13
7 Mobilisation 14
7.1 Objectives....................................................................................................................................................................14
7.2 General ......................................................................................................................................................................14
7.3 Mobilisation audit .......................................................................................................................................................15
8 Execution 16
8.1 Objectives....................................................................................................................................................................16
8.2 Responsibilities ............................................................................................................................................................16
8.3 Contractor compliance ................................................................................................................................................16
8.4 Competence assurance.................................................................................................................................................17
8.5 Inspection and HSE auditing/reviews .........................................................................................................................17
9 De-mobilisation 18
9.1 Objectives....................................................................................................................................................................18
9.2 Responsibilities ............................................................................................................................................................18
10 Final evaluation and close-out 19
10.1 Objectives....................................................................................................................................................................19
10.2 Final evaluation and report..........................................................................................................................................19
APPENDIX I: HSE responsibilities for company and contractor key personnel................................................................ 20
APPENDIX II: Definition of consequence - severity of risk .............................................................................................. 22
APPENDIX III: Contractor HSE pre-qualification............................................................................................................24
APPENDIX IV: HSE pre-qualification points system ........................................................................................................29
APPENDIX V: HSE Plan guideline for major contracts.....................................................................................................33
APPENDIX VI: HSE Plan guideline for small contracts....................................................................................................50
© 2000 OGP i
International Association of Oil & Gas Producers
Purpose/Intent
The overall objective of this guideline is to improve 3 facilitate the interface of contractor’s activities with
the company and contractor health, safety and environ- those of the company, other contractors and sub-
mental (HSE) performance regarding exploration and contractors.
production activities. Active and ongoing participation
by both the company and contractors are essential to These programs should be designed to protect both
achieve this goal. While each has a distinct role to play company and contractor personnel from workplace inju-
in ensuring the ongoing safety of all involved, there is an ries and illness as well as from losses associated with the
opportunity to further enhance the company/contractor incidents, while preserving the independent contractor
relationship by clearly defining roles and responsibili- relationship.
ties, establishing expectations and maintaining com- This information is provided to assist company and
munication throughout the relationship. For example, contractor management to visualise the process of man-
one role of the company is to review and assess the con- aging contractor HSE programs. This document is not
tractor’s HSE Management System and Programmes, intended to replace the necessary professional judge-
while one role of the contractor is to provide HSE infor- ment needed to recommend the specific strategy to
mation as requested by the company. Often the infor- follow. Each reader must analyse their particular situa-
mation requests vary from company to company. By tion, tailor the information in this document and obtain
establishing a standard format, which streamlines the the appropriate technical support.
bidding process, company and contractor resources can
be devoted to improving specific HSE issues. Due to the rapid change that is occurring in the oil
and gas industry, together with the various company-
This guideline is designed to: contractor interface systems and management practices
1 improve workplace safety, health and environmen- that are evolving, this guideline will be reviewed every
tal performance by assisting the company and con- two years. The Safety Health and Personnel Compe-
tractors in administering an effective HSE program tency Committee will make updates and modifications
for the contract; based upon review.
2 assist contractors in administering programs which
are consistent with the clients expectations;
Description
The main section of the document covers various phases A key part of the planning phase is risk identification.
of the contracting process and the associated HSE tasks It is also the prime factor in determining contracting
and responsibilities of the company and contractors. strategy. During this step the level of risk is assessed
This is an eight-phase process, which begins with plan- and the most appropriate measures are identified to pre-
ning, and ends in final evaluation and close out. The vent incidents from occurring. Included in the appendi-
objectives, roles and responsibilities are defined for each ces are additional tools such as checklists for HSE Plan
phase. development, severity of risk definitions, and guidelines
for small and large contracts.
ii © 2000 OGP
HSE management - guidelines for working together in a contract environment
1 Introduction
1.1 Background
Within the oil and gas explo- Figure 1 Company contractor hours worked
ration and production industry, (millions of hours)
1200
the pattern of use of contractors
has changed significantly over
the last ten years. Figure 1 shows 1000
the pattern of company and
contractor hours reported to
800
E&P Forum for the period
1985-1998. Manhours Contractor
600
Prior to 1985 the work force was
predominately company employ-
ees. Since 1990 there has been a 400
significant increase in the use of
contractor staff, with a resulting
200 Manhours Company
shift in responsibility and risk
from the company to the con-
tractor population. 0
1985 1987 1989 1991 1993 1995 1997
It can be seen from figure 2 that
there have been significant improvements in the safety sure to risk, and it is important this trend continues,
performance of both the Companies and their contrac- particularly as use of contractors in the E&P industry
tors during this period. increases.
Historically the contractor Lost Time Injury Frequency These guidelines have been produced to assist man-
(LTIF) has not been as good as that of companies, agement of the company-contractor interface in this
though the gap is narrowing. The trend is encouraging, changing environment and to help in the achievement
since contractor personnel generally have a higher expo- of further joint improvements in safety performance.
Overall
8.1
8 Company
6.6 Contractor
6.1
6
5.2
4.7
4.1 3.9
4
3.1 3.0
3.4 3.3 2.7
2.8 3.0
2.5 2.5 2.6
2 2.0 2.0 1.9
0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
© 2000 OGP 1
International Association of Oil & Gas Producers
2 © 2000 OGP
HSE management - guidelines for working together in a contract environment
2 Overview of process
Management of HSE in a business environment where The typical phases of a contracting process are shown in
two or more companies work together requires co-oper- Figure 3. The sectional headings addressing the phases
ation between them and a clear definition of the tasks are shown on the right. Each section describes the tasks
and responsibilities of each of the parties. and responsibilities showing a clear distinction between
the company and contractor(s). An overview of respon-
sibilities is given in Appendix I.
Contractor Company
Contracting strategy
Contract award
Review Close-out
© 2000 OGP 3
International Association of Oil & Gas Producers
3 Planning
3.1 Objectives
The objectives of this phase are to describe the work
and to assess the HSE risks associated with the work.
The contracting strategy is to be selected on the nature
and size of the work, and the risk involved.
4 © 2000 OGP
HSE management - guidelines for working together in a contract environment
A B C D E
Environment
Reputation
Never heard Heard of Incident has Happens Happens
of in E&P in E&P occurred in several times several times
Severity
People
No health No No
0 effect/injury damage
No effect
impact
© 2000 OGP 5
International Association of Oil & Gas Producers
• Operations too large or diverse for a single contrac- Usually Mode 2 is preferred except in “High Risk” situ-
tor may require a number of contractors and sub- ations where the work is highly interactive with compa-
contractors (a consortium) to work together under ny’s activities.
the supervision of one main contractor working for
Example:
the company under Mode 2.
On an offshore production platform, a modification
• The work is intimately associated with the activities requiring welding and grinding has to be made in a
of the company, or presents such a high risk to the hazardous area. This is considered a “High Risk” oper-
company that the work is to be executed using the ation. Moreover, the essential controls and emergency
company’s management system under Mode 1. response are arranged by the company. Typically Mode
1 would be used.
• The contractor executes most aspects of the job
under its own HSE Management System; however, Example:
certain support activities such as transportation and A consortium of contractors with one lead contractor
emergency response are provided by the company. is responsible for the construction of a new onshore
production facility. Construction activities are always
• A Drilling Contractor is responsible for identify-
“High Risk”. However, until the moment that hydro-
ing and supplying personal protective equipment
carbons are introduced, the lead contractor can be held
to its personnel. A Fluids Contractor designs the
accountable for managing all aspects of the job pro-
mud program for the Operator, with new additives
vided the construction contractor can demonstrate its
included in the well plan. In this case the company
capability to manage all HSE aspects. Typically Mode
has an interface procedure that details the respon-
2 would be used.
sibilities of the drilling contractor and requires the
fluid contractor to provide chemical hazard infor- “Low Risk” contracted operations, e.g., deliveries of
mation to the Operator and drilling contractor non-critical materials, food, stationery, etc., are usually
before shipping the materials. The interface pro- covered by Mode 2 whereby the contractor provides the
cedure further requires the on-site fluids engineer HSE controls. Usually the company controls on such
to communicate chemical hazards during the pre- low risk activities are minimal and Mode 2 is typical.
spud meeting. However, contractors working on company premises are
normally under the control of company personnel and
Also, when working with an alliance of contractor(s) or a should follow company instructions.
consortium, it should be made clear in advance whether
the alliance or the lead contractor is fully responsible Issues in setting a contract strategy might include:
for all instructions and supervision or whether that is number of contracts, contract schedule, rules and regu-
the responsibility of the company. If the alliance or con- lations, and the use of company HSE standards and/or
sortium is responsible, it should be made clear in the relevant national HSE legislation and international con-
contract how this is organised. In addition, the person ventions.
responsible for critical activities has to be clearly identi-
fied. Joint responsibilities should be avoided by break-
ing down the work into smaller identifiable activities,
each with a party assigned to it with responsibility for
the HSE aspects.
6 © 2000 OGP
HSE management - guidelines for working together in a contract environment
4 Pre-qualification
4.1 Objective
The objective of the Pre-qualification phase is to screen
potential contractors to establish that they have the nec-
essary experience, capability and financial viability to
undertake the activities in question safely and in an
environmentally sound manner.
© 2000 OGP 7
International Association of Oil & Gas Producers
4.4 Screening
The screening process should be designed to assure that priate. In such a case, the focus should be on the divi-
the contractors invited to bid can perform the work to sion bidding for the work.
the required HSE criteria.
For those contractors not qualifying, a feedback mecha-
The general approach is to send a uniform question- nism should be in place to inform them why they did
naire to all potential contractors, initially assess their not qualify and that by correcting the identified defi-
HSE capabilities based on the questionnaire using an ciencies; they may qualify for future work.
equitable measuring system (see Appendix III) and sup-
Where there is a policy to encourage selected contrac-
plementing this with site inspections of current contrac-
tors to develop an HSE management Plan, and these
tor work sites.
contractors have little or no background in HSE man-
Contractors which have been used by the company pre- agement, then a plan to overcome the shortcomings
viously can be assessed through the use of close out should be developed. Such a plan may require addi-
reports and other historical records. A review of any tional company supervision, more explicit procedures
potential changes to the contractor’s organisation, pro- or additional training. The HSE requirements should
grammes and systems should also be conducted. be met before work commences. The scale of the con-
tract and the exposure must be matched accordingly.
During pre-qualification of large contractors, especially
Again, the details of the program and performance of
those with many divisions in numerous countries, the
such contractors should be recorded and retained for
use of the record of the Corporation may not be appro-
future reference.
8 © 2000 OGP
HSE management - guidelines for working together in a contract environment
5 Selection
5.1 Objective
The objective of the selection phase is to assess whether
the HSE Plan and the Bid Evaluation Criteria have been
met and to select, where necessary on the basis of clari-
fication meetings, the successful bidder.
© 2000 OGP 9
International Association of Oil & Gas Producers
In preparing their bid, the contractor should demon- requirements. The company should have the expertise
strate compliance with such requirements and illustrate and resources to evaluate the alternatives proposed. The
their process for preparing their own HSE Plan within tender documents should allow flexibility for the con-
the required framework. The actual plan will be devel- tractor to take ownership of HSE responsibilities under
oped after the contract is awarded. This may be accom- the contract but allow for the company to effectively
plished by developing a system which facilitates the manage the contract. Adequate lead times for tender
interfacing of company, contractor and sub-contractor preparation should be allowed to avoid compromising
activities, as described in section 3.5 of OGP’s “Guide- the establishment of a sound basis for HSE manage-
lines for the development & application of health, ment.
safety and management systems”. Contractors should
The company should assure that the mobilisation and
be allowed the freedom to use industry HSE
demobilisation phases are adequately covered in the
guidelines/recommended practices/standards, e.g., those
HSE Plan. In some instances the ability to exercise
of the International Association of Drilling contractors
influence may be limited (for example when work is
(IADC) or International Association of Geophysical
being carried out in a yard or factory where only a small
contractors (IAGC), or the International Marine Con-
percentage of the contractor’s workload is for the com-
tractors Association (IMCA), or of OGP, API and
pany).
IMO, if they are equivalent to or exceed the company’s
10 © 2000 OGP
HSE management - guidelines for working together in a contract environment
© 2000 OGP 11
International Association of Oil & Gas Producers
6 Pre-mobilisation activities
6.1 Objective
The objectives here are to ensure that the relevant
aspects of the contract risk assessment and any other
HSE aspects of the contract are communicated and
understood by all parties prior to implementation of
the contract. Several activities such as reviews, meetings
and audits can be used. The amount of detail and effort
for pre-job activities should be commensurate with the
level of risk.
12 © 2000 OGP
HSE management - guidelines for working together in a contract environment
© 2000 OGP 13
International Association of Oil & Gas Producers
7 Mobilisation
7.1 Objectives
The objectives of this phase are to assure that the HSE
Plan is modified, if warranted, and communicated to
all relevant personnel, both company and contractor.
7.2 General
Prior to mobilisation, it is likely that the full HSE Depending on the circumstances, additional supervi-
Plan is known only to the principal members of the sory staff from the contractor may be required to allow
company’s and contractor’s project management teams. rapid set-up and implementation of the HSE Plan.
During mobilisation, the HSE Plan should be commu- The company and contractor may want to have addi-
nicated by the management of both the company and tional staff available to verify that the HSE Plans are
the contractor to all relevant personnel. fully implemented. This can be accomplished by a joint
company/contractor HSE field review or audit.
In the mobilisation phase some of the principal activi-
ties are: During the initial part of the mobilisation phase all
• local kick-off meeting(s) key personnel assigned to the project should attend an
HSE orientation program that should be used to com-
• mobilisation of contract staff and equipment municate the HSE Plan and any other significant HSE
• finalise the contractor’s HSE Plan aspects of the contract.
• commence induction and site-specific training Progress meetings should then be used as a formal
method of reviewing HSE implementation, along with
• hold mobilisation HSE audit. frequent walk-throughs by company personnel.
During mobilisation the company and contractor assure Aligning the various interests and areas of responsibility
that each sets up a method of operation that is in accord- requires good working relationships between the com-
ance with the agreed HSE Plan. It is at this stage that pany and contractors, among contractors and between
implementation of the HSE Plan by the contractor for- contractors and sub-contractors. This is particularly
mally begins. For contracts under “Mode 1” strategy, true if the subcontractor activities are difficult to moni-
the contractor’s operations should be fully compatible tor (e.g. distributed work groups, transportation).
with the company’s HSE-MS. For contracts under a
“Mode 2” strategy, any HSE Plan requirements should Once mobilisation activities have commenced, the
be integrated into the contractor’s HSE-MS. company should begin monitoring of the contractor’s
pre-execution activities to assure the HSE Plan is imple-
The company and contractor should confirm that each mented.
has deployed his supervisory staff and is implementing
the agreed-upon briefing and training for his supervi-
sors and employees.
14 © 2000 OGP
HSE management - guidelines for working together in a contract environment
© 2000 OGP 15
International Association of Oil & Gas Producers
8 Execution
8.1 Objectives
The objectives of this phase are to assure that the work
to be performed is conducted according to the agreed-
upon HSE Plan, and that additional HSE needs, identi-
fied during the work, are properly addressed.
8.2 Responsibilities
The nature of the work determines the level of supervi- Where responsibility for supervision rests with the con-
sion necessary. For example, within or in close proximity tractor, the company’s role should be to monitor com-
to operating plant, hazardous area zones or acknowl- pliance to contractual terms and systems defined within
edged high risk operations, more direct company super- the contract. Unless the contract holder has a perma-
vision may be required than on a new construction site nent presence on site, it is usual to appoint representa-
or the contractors own premises, i.e. MODU, lay barge, tives from line management to monitor and verify that
etc. Only in particular circumstances should contractors contract HSE obligations are being met. The contract
be directly supervised because too much instruction/ holder and representative should have access to special-
direction from the client tends to relieve the contractor ist HSE advice where needed, but accountability for
of the responsibilities stipulated in the contract. contract HSE lies with the contract holder. Responsibil-
ity may be delegated to the representative, but account-
ability needs to remain with the contract holder.
16 © 2000 OGP
HSE management - guidelines for working together in a contract environment
© 2000 OGP 17
International Association of Oil & Gas Producers
9 De-mobilisation
9.1 Objectives
The objectives of this phase are to identify the hazards
associated with demobilisation and identify and imple-
ment controls to minimise the risks. The HSE Plan
should be modified, if need be, to address new or unex-
pected hazards.
9.2 Responsibilities
The contractor’s HSE Plan should continue to be the
vehicle for managing the HSE activities in this phase.
Demobilisation often is a phase of the project having an
increased chance of incidents as the project infrastruc-
ture and contractor HSE management structures are
being dismantled with people moving off the project
to new assignments. Assurance should be sought that
the appropriate organisational structures remain intact
until associated activities have been completed. These
should include:
• emergency response
• site restoration
• waste management and disposal.
18 © 2000 OGP
HSE management - guidelines for working together in a contract environment
10.1 Objectives
The objectives of this phase are to conduct a joint evalu-
ation of the contractor’s and company’s HSE perform-
ance and to provide feedback to the contractor(s) and
company which can be a reference for future work.
© 2000 OGP 19
International Association of Oil & Gas Producers
• authorise the contractor to commence work if the • additional advisory support, where needed, to small
pre-execution HSE requirements are met contractors.
• monitor performance of the contractor against his In the case of a small local contractor a decision may
HSE Plan have been taken to provide additional supervisory sup-
port and assistance in HSE matters. The company HSE
• authorise deviations from the contractor’s HSE
Adviser and related specialists may be tasked with pro-
Plan
viding support but must exercise care (unless other-
• authorise additional HSE requirements as deemed wise provided for by the contract or agreed to in the
necessary HSE Plan) that this is recognised as a temporary phase
• apply sanctions in the event of unauthorised devia- and that the contractor must be encouraged to develop
tions from the contractor’s HSE Plan quickly to a point where such assistance is no longer
required.
• prepare HSE close-out report and distribute to
appropriate company and contractor personnel for
feedback
20 © 2000 OGP
HSE management - guidelines for working together in a contract environment
Contractor
Contractor Manager should: Contractor Site Representative:
• prepare and assure quality of contractor’s HSE Where a contractor may be working in a number of
Plan areas it is common for the contractor to appoint a person
• define competencies required for HSE critical posi- or persons to assume responsibility on behalf of the
tions contractor representative to supervise the work being
executed under the contract in the specific area. The
• assign appropriate personnel to HSE critical posi- HSE responsibilities are as for the contractor represent-
tions ative but with responsibility for a specific site.
• assure adequate resources and time in the schedule
to manage the contract in accordance with the con-
tractor’s HSE Plan
• notify the Contract Holder in writing of his nom-
inated contractor representative(s) and contractor
Site Representative(s)
• provide resources to implement remedial actions
following audits in an expeditious manner.
© 2000 OGP 21
22
Appendix II
to health and within systems
2 Minor injury/ Detrimental to the performance Minor Possible brief disruption Minor effect Contamination; <100 100-1,000 Limited Some local public
illness of present work, such as damage of the process; isolation damage sufficiently impact concern; slight local
© 2000 OGP
curtailment of activities or some of equipment for repair large to attack the media and/or local
days abscence to recover fully, (estimated cost environment; single political attention with
maximum one week. below $100,000) excedence of statutory potentially negative
Agents which have limited health or prescribed criteria; aspects for company
effects which are reversible, e.g. single complaint; no operations
irritants, many food poisoning permenant effect on
bacteria. the environment
3 Major injury/ Leading to permanent partial Local Plant partly down; Local effect Limited loss of 100 - 1,000 - Consider- Regional public
illness disablement or unfitness for damage process can (possibly) discharges of 1,000 10,000 able concern. Extensive
work or detrimental to be restarted (estimated known toxicity; impact negative attention in
performance of work over cost of repair below repeated excedence local media; slight
extended period, such as long $1,000,000) of statutory or national media and/or
term absence. Agents which are prescribed limit and local/regional political
capable of irreversable damage beyond fence/ attention with possibly
without serious disability, e.g. neighbourhood negative stance of
noise, poorly designed manual local government
handling tasks. and/or action groups
4 Single fatality/ Also includes the possibility of Major Partial loss of plant; Major effect Severe env. dmg; 1,000 - 10,000 - Major National public
permanent multiple fatalities (maximum 3) damage plant shut down (for the company is 10,000 100,000 national concern. Extensive
total disability in close succession dur to the at most two weeks required to take impact negative attention in
or unfitness incident, e.g. explosion. and/or estimated extensive measures national media and/or
for work Agents which are capable of repair costs below to restore the regional national
(small irreversible damage with $10,000,000) contaminated area policies with potentially
exposed serious disability or death, e.g. to its original state. restrictive measures
population) corrosives, known carcinogens Extended excedence and/or impact on grant
of statutory or of licences,mobilisation
prescribed limit of action groups
People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation
Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition
rating impact impact impact (litres) impact
sensitive
areas offshore
5 Multiple May include four fatalities in close Extensive Total loss of the plant; Massive Persistent severe >10,000 >100,000 Major International public
fatalities succession due to the incident or damage extensive damage effect environmental inter- attention. Extensive
multiple fatalities (four or more) (estimated cost of damage or severe national negative attention in
each at different points and/or repair exceeds nuisance extending impact international media
with different activities. Agents $10,000,000) over a large area. In and national/internat-
with potential to cause multiple terms of commercial ional policies with pot-
fatalities, e.g. chemicals with or recreational use or entially severe impact
acute toxic effects (e.g. H2S, CO) nature conservancy, on access to new areas,
known human carcinogens a major economic loss grants of licences and/
for the company. Constant or tax legislation
high excedence of statutory
or prescribed limit
*Assets are understood as referring to: the oil and gas reservoirs, production facilities, *Incidents relating to air, noise, smell, light and soil vibrations should be addressed on the
pipelines, money, capital, and other company, contractor and third party property. basis of expert judgement and, in the case of uncertainty, local expertise may be called in.
© 2000 OGP
b) Who has overall and final responsibility for HSE in your organisation?
c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where
his employees are working? Provide name, title and experience.
b) What are your arrangements for advising employees of changes in the policy?
24 © 2000 OGP
HSE management - guidelines for working together in a contract environment
c) What provision does your company make for HSE communication meetings?
(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers
Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE
training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the train-
ing is given in-house, please describe the content and duration of courses.
b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and prac-
tices?
c) What arrangements does your company have to ensure new employees have been instructed and have received information
on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are
aware of company requirements?
d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided in-
house please give details of content.)
b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the haz-
ards identified, assessed and controlled?
ii) HSE record of the subcontractors and companies with whom you place contracts?
b) Where do you spell out the standards you require your contractors to meet?
© 2000 OGP 25
International Association of Oil & Gas Producers
(vii) Standards
a) Where do you spell out the HSE performance standards you require to be met?
c) How do you identify new industry or regulatory standards that may be applicable to your activities?
b) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance
with your HSE policy objectives and arrangements?
26 © 2000 OGP
HSE management - guidelines for working together in a contract environment
b) What type of performance criteria are used in your company; give examples
c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to
your:
i) base management
b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?
© 2000 OGP 27
International Association of Oil & Gas Producers
b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors?
c) Do your company HSE Plans include schedules for auditing and what range of auditing is covered?
d) How is the effectiveness of auditing verified and how does management report and follow up audits?
28 © 2000 OGP
HSE management - guidelines for working together in a contract environment
Scoring
The contractor’s tender should be evaluated by attaching a score to the selected response for each
category (see Appendix III).
A suggested scoring system would be as follows (see Table II.1):
A B C D
HSE Plan documentation [sections 1-5, 7, 8]
0 3 6 10
Performance and experience factors (HSE incidents) [section 6]
0 7 14 20
Elements scoring 0 should normally disqualify a contractor from being included in a pre-qualifi-
cation list. Any elements rated so must be highlighted as a qualification on the tender if it is still
to be considered.
A B C D
Section 1: Leadership and Commitment
Commitment to HSE through leadership: item 1 (i)
No commitment from senior HSE disciplines delegated to line Evidence of active senior man- Evidence of a positive HSE cul-
management managers - no direct involve- agement involvement in HSE ture in senior management and
ment by senior management aspects at all levels
No specialised staff training HSE training assigned to a spe- HSE training applied to man- HSE training given formally to
cific person on location agement but not comprehen- all relevant staff on their respec-
sively covered tive responsibilities
No formal programme Verbal instructions on company Employee handbook provided All under ‘C’ together with:
procedures only and supervisor outlines, follow-up observation of the
explains and demonstrates new new employee’s work is also
employee’s job included. Employee has
explained to him safe practices
and emergency duties
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International Association of Oil & Gas Producers
A B C D
Section 3 (continued): Organisation, responsabilities, resources, standards and documentation
Specialised training: items 3(iv) (a)&(b), 3(v)
No HSE training established On-site basic training con- HSE training is given for spe- Formal HSE training pro-
ducted occasionally cialised operations, but no rou- grammes have been developed
tine training conducted in all areas and are conducted
on a regular basis. Retraining
periods are established
No written arrangements Written arrangements in place HSE arrangements incorpo- HSE arrangements exist in
for basic HSE matters only rated in HSE manual but not in handbook form, distributed to
a format which is distributed to all employees, subcontractors,
all employees sub-contractor employees and
are enforced. Follow-up audits
held with discussion/feedback
to management and employ-
ees
No HSE standards available Basic HSE standards exist Contractor has written HSE Contractor has a system of spec-
standards to cover all hazard- ifying, monitoring compliance
ous operations and updating standards
Company does not actively Company advises the workforce Company has formal methods Company has a set of formal
advise the workforce nor moni- of the major hazards that they for monitoring exposure to the methods for monitoring expo-
tor exposure are likely to be exposed to but major hazards sure to all foreseeable hazards
only monitors exposure ran- (linked to its hazards and effects
domly assessment method) and
applies them to all contracts
Potential hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature
extremes, etc.): item 4(iii)
Company makes no special Company provides information Company distributes informa- Company maintains a database
provision for advising the to workforce in the workplace tion to individuals in the of the properties of all poten-
workforce about properties of on properties of potential haz- workforce at start of their tial hazards encountered in its
potential hazards ards but has no active fol- involvement on-site contracts and has formal meth-
low-up ods of information distribution
to all personnel and trains its
workforce in handling, etc.
Basic PPE provided to person- PPE requirements formally PPE requirements formally Procedures in place to assess
nel but no corporate procedure assessed but little effort made assessed with spot checks on all PPE requirements, monitor
for assessing individual needs to ensure correct usage usage and enforce usage and replace-
ment needs. Stock inventories
monitored, kept above demand
levels. Training in use provided
where needed
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HSE management - guidelines for working together in a contract environment
A B C D
Section 4 (continued): Hazards and effects management
Waste management: item 4(v)
Company has no formal meth- Company has general proce- Company has procedures for Company has a formal system
ods for the control of waste dures for waste disposal the disposal of each of the main for waste management (includ-
categories of site wastes but ing identification, minimisation
makes no provision for minimis- and classification), which
ing environmental impact actively seeks to minimise envi-
ronmental impact
No defined programme to Plan relies on outside sources, A written programme outlining In addition to C, periodic
identify or evaluate hazardous i.e. company inspections. supervisory guidelines, respon- inspections conducted by top
practices and equipment con- Supervisory inspection of equip- sibilities, frequency and fol- management or by teams of
ditions ment confined to worksite per- low-up is in effect specialists
sonnel only
No special attention paid to Importance of road safety Company has a general man- Company has a complete strat-
road safety as an area of haz- acknowledged but left to core agement strategy with some egy and set of plans and proce-
ardous activities business managers/supervisors procedures for its component dures covering vehicles, drivers
to enact individually issues and operations management
Statutory notifiable incidents, dangerous occurrences, improvement requirements and prohibition notices:
items 6(iii) and 6(iv)
More than one occurrence of One occurrence of a major inci- Occurrences relate to minor No occurrences in the last five
major incident in last five years dent in the last five years incident(s) only years
HSE performance records (latest year injury rate comparison to contractor’s three preceding years average):
items 6(v) (a)-(d)
Contractor supplied insuffi - Rate is not improving Shows only minor rate improve- Rate steadily improving by more
cient ment than 20 per cent per year
Rate over 200 per cent that of Rate under 200 per cent that of Rate under 120 per cent that of Rate better than that of com-
company company company pany
Findings not generally commu- Findings communicated to key Findings communicated to all As in C but with the addition of
nicated personnel only via limited com- employees via specific company details of implication for improv-
pany internal memo or similar notice ing HSE performance
media
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A B C D
Section 7: Auditing and review
Auditing: item 7(i) (a)-(c)
Audit process is cursory only - Company HSE documents Company HSE documents As in C but additionally speci-
HSE documents are not explicit include reference to auditing include details of how audit- fies management’s role in audit
about auditing but there are no specific details ing is to be implemented with and follow-up on action items
about scheduling and cover- schedules/coverage for the key
age areas
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HSE management - guidelines for working together in a contract environment
Table V.2 Checklist for HSE plan: section 2 policy and strategic objectives
HSE policy statement
General
Written HSE policy
Dated and signed by Chief Executive
Policy statements:
• specific to individual parts of the contract (e.g. locations/sites/plants)
• cover specialised aspects (e.g. alcohol and drugs)
• consistent with company guidelines
• clear, concise and motivating
Content
Importance of HSE as a contract objective
Incidents and injuries are unacceptable
HSE established as a line management responsibility
Everyone is responsible for their own and their colleagues’ HSE at work
Distribution/availability
HSE policy distributed to all concerned, i.e.
• handed to each employee by their line manager when issued
• all new employees handed a copy by their line manager
• displayed on notice boards at each work location (worksites and offices)
• copies provided for each company on the contract (including subcontractors, suppliers and agents)
• available to company and contractor employees in their working languages)
Discussion
Policy and its implementation when issued discussed by line managers with each employee
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International Association of Oil & Gas Producers
Table V.3 Checklist for HSE plan: section 3 organisation, responsibilities, resources, standards
and documentation
HSE organisation
Key personnel
Personnel responsible for the implementation of HSE objectives clearly identified in an organisation chart
Responsibility adequately covered during all phases of the contract
Job descriptions in place showing each team member’s HSE competencies, responsibilities and function
Organisation clearly shows position of HSE professionals
Contract objectives/accountability
Defined to meet health, safety and environmental objectives as well as those of time, cost and quality
Accountability for HSE success and equally of any failure clearly stated
Focal point within the team structure ensuring that all HSE matters have been identified
Designated team leader to produce HSE objectives, tasks and targets for the contract
Targets, etc. to be realistic and consistent
Establish procedures for distribution, reporting and reviewing HSE issues
Manning/communications
Manpower philosophy
Manpower level to be defined correctly so as not to compromise HSE
Effective means to communicate HSE issues to the company, contractor and subcontractors
Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training
in the issues involved
Corporate structure/responsibility
Company’s expectations on HSE management to be communicated in depth
Access of contractor’s line management to their corporate management structure on HSE issues to be defined
Level of handling project HSE issues by the contractor corporate structure (middle or senior management or board
level)
In the contractor’s corporate organisation, individuals charged with responsibility for HSE at middle senior manager or
board member level
Access to specialist HSE advice for line management, e.g.
• provision of HSE documentation for small contracts
• employment of HSE specialist for large contracts
HSE professionals
Job definition
Role of the contractor’s HSE advisers well defined
Job definition drafted
Reporting/follow-up
Reporting relationship with line management
Direct access to the Chief Executive
Does line management follow-up on advice offered
HSE department
Contractor’s HSE department involved in:
• preparing and monitoring departmental action plans
• formulation and suitability of HSE rules
• planned inspections and audits together with line management
• promotional material
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HSE management - guidelines for working together in a contract environment
• HSE training
• subcontractor assessment
• training and auditing
• health risk assessment, health performance monitoring and health surveillance
• environmental monitoring
• supporting incident investigation by line management
Guidance given by the contractor’s HSE management in preparing and implementing:
• operating and emergency manuals
• emergency plans
• training for fire fighting teams, first-aiders etc.
• emergency drills and exercises
• protective equipment and rescue
Contact and liaison with government departments maintained
Subcontractors
Management
To be well integrated and identified in contract HSE Plans
Have own plans if carrying out a large portion of the work
HSE Plans to be vetted for suitability by main contractor
Main contractor to communicate that subcontractor subject to the same rigorous HSE standards as main contractor
Identification/vetting
Subcontractors to be identified at this stage of the project
Method of vetting those still to be identified to be stated
Vetting of past subcontractor records
Maintenance of approved subcontractor lists where HSE has been considered
HSE communications
Coverage/ awareness
Set up appropriate lines of communication to handle HSE issues, e.g. such items as:
• direct access to emergency services
• nearest hospital
• helicopter availability
• air ambulance, etc.
• authorisation and implementation procedures fully understood
Emergency services: those organisations that would be expected to provide support in a major incident aware of require-
ments - briefed as to their likely role
External links
Lines established to communicate externally incidents that may endanger those on a site
Individual responsibilities and procedures for the company and contractor(s) to make government agency reports have
been agreed upon and clearly defined
Contractor able to communicate with all his workforce in an emergency
Communications take into account the diversity of languages amongst the workforce
Ability of base to mobilise in an emergency, e.g. doctors, hospital facilities
Emergency communications
Appropriate for incidents envisaged
Strengthened, duplicated or backed up by other means
© 2000 OGP 37
International Association of Oil & Gas Producers
Management participation
Managers seen to be involved by employees in:
• HSE activities, objective setting and monitoring
• taking action and providing resources to support their stated policies and objectives
Meeting structure
HSE meeting structure
Effective to manage and communicate on HSE
Allow employees full involvement and their own ideas to be heard
Typical agenda and meeting formats
Follow-up actions
Meeting actions
Where action is agreed, is it seen to be carried out?
Where action is not agreed, is it explained why?
Communication
Results of HSE activities, both successful and less successful, openly communicated to all employees
Meeting programme consistent with the rest of the management structure to communicate effectively HSE issues
Meetings recorded clearly and consistently
Structured to include health, safety and environmental items
Performance
HSE performance boards (e.g. at worksite gates)
Promotional methods
Possibilities include:
• small ‘give-aways’ with the HSE message
• competitions
• suggestion schemes
Part of business
HSE activities seen as an intrinsic part of running an efficient business rather than a costly and time-consuming ‘extra’
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HSE management - guidelines for working together in a contract environment
New employees
Adequately trained and confident of their own abilities
Coached to improve their work practices rather than blamed for mistakes
Accountability
Employees know they are accountable for HSE performance
Aware that their HSE performance is part of the contractor’s appraisal and reward system
Know that flagrant or frequent breaks of published HSE rules will result in disciplinary action
Procedures
Required for new employee orientation consistent with existing company guidelines
Reappraisal
Programme subject to appraisal and review
Supervisory training
Supervisory development training promotes man-management skills and communication skills
Formalised programme
Formal HSE orientation programme for employees working on-site
Records kept of employees who have been through the programme
Employees trained before starting work
Training covers those joining as a contract is being implemented
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International Association of Oil & Gas Producers
Coverage
HSE training of employees coverage (including):
• safety
• fire and explosion
• road transport/driving
• first-aid
• work procedures/PTW
• hazard awareness and reporting
• occupational health
• security
• basic HSE rules
• legislative requirements
• environmental protection
Supervisors’ participation
Supervisors required to brief and debrief staff before and after training courses
Course content
Effective system for establishing the need for and the content of training courses
Determining course effectiveness and relevance of training assessed
Specialised training
Relevant training given to personnel prior to the execution of hazardous operations
Training gained through course attendance supplemented by on-the-job training as necessary
Records kept of attendees of the training courses and qualifications gained by employees
Emergency training
Training covers the actions to be implemented and the employees’ responsibilities in an emergency
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HSE management - guidelines for working together in a contract environment
Training
Training is received by HSE professional
Required specialisation (e.g. drilling, radiation, chemicals.)
Appropriate levels of:
• institute training
• HSE management
Qualifications
Knowledge and experience of the contractor’s HSE professional:
• match for competence for the job being carried out
• match for the advice required
HSE legislation
Coverage
HSE Plan to include:
• a comprehensive list of applicable legislation
• government, national and international codes
• company regulations., codes and standards
• contractor’s identification of regulations, codes and standards
Hierarchical precedence stated
Definition of the legislation, codes, standards, etc. reflecting the company’s previous experience
For contracts carried out in separate countries:
• different legislation requirements
• company assistance for foreign contractors
Waivers
Procedure for seeking waivers indicated
HSE standards
Availability
Contractor in possession of HSE manual/set of standards
Identifying minimum criteria for achievement during contract implementation
Available in writing to all users in consistent, concise and clear form
Users involved in the development
Standards in line with company requirements
Control/authorisation
Controlled documents
Updated regularly
Approval level indicated
Procedure for obtaining deviations from standards
Responsibility for authorisation
Mechanism for recording approved deviations
Coverage
Clear reference to national and international standards
Setting minimum requirements on health, safety and environmental issues
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Table V.4 Checklist for HSE plan: section 4 Evaluation and risk management
Methods and procedures for hazards and effects management
Coverage
Company assessment used as a starting point with additional hazards identified by the contractor
Contractor’s assessment carried out in accordance with his formal methods and procedures
Analysis techniques used in preliminary form where appropriate
Contractor covers all parts of the contract with assessments for the specific scope and locations of the contract
Handling of chemicals
Coverage
Contractor demonstrates availability and distribution of guidance/information on the safe handling of chemicals., likely
to be encountered in the contract, and proposals for confirming adherence to guidance during contract
PPE instruction/training
Requirements identified for all personnel
Instruction and training in its use provided where needed
Procedure for checking its use specified
Renewal/replacement
Schedule and criteria for renewing PPE
Schedule for re-certification
Responsibility for payment
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HSE management - guidelines for working together in a contract environment
Table V.5 Checklist for HSE plan: section 5 Planning and procedures
HSE procedures
Availability/control
Written procedures available to cover hazardous operations on HSE
Include HSE precautions to be taken
Consistent with company guidelines
Controlled documents
Appropriate level
Coverage: include health and environment
Written procedures:
• familiar to all employees including subcontractors
• available in their working language
• contents related to individual job descriptions
Deviations
Procedure for obtaining
Responsibility and level
Recording of authorised deviations
Omissions
Identify whether there are any areas where procedures for hazardous operations are not drafted
Commitment to prepare
Training/qualification
Training standards and qualifications set for personnel allowed to implement procedures
Coverage
Covers health and environment as well as safety
Set of rules provided tailored to specific contracts
Identify hazards likely to be encountered
Address basic housekeeping and hygiene
Cover signals that will be encountered on site
Production/updating
Structure for producing updating and disseminating rules
Frequency
Personnel participation
Involvement of users
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International Association of Oil & Gas Producers
Awareness
By employees of procedures
• Orientation
• Schedule of drills and testing
• Medical contingency plan included
• Review frequency
• Responsibility of employees for own and colleagues’ HSE
• Monitoring mechanism
• Drills to be carried out without warning
Plans
Contingency plans allowed for in emergency situations
Recovery procedures in place to be activated in event of emergency scenarios
Drills to be held to demonstrate preparedness for response
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Schedule
HSE equipment inspection schedule established for the duration of the project
Inspection frequency clearly identified for critical items of plant
Occupational Health
Facilities available
Facilities defined as part of contract
Occupational health programme established to:
• identify hazards
• assess hazards
• control hazards, e.g. engineering controls, procedural controls, PPE, vaccinations, etc.
• maintain emergency procedures
appropriate for the site conditions
Staffing
Availability of adequately trained, experienced staff
Access to medical treatment facilities (if external)
Contingency plans
Defined for possible incidents beyond capability of site facilities
Promotion
Promotional material available to assist in maintaining standards
Appropriate for the contractor’s workforce in terms of:
• language.
• clarity, etc.
© 2000 OGP 45
International Association of Oil & Gas Producers
Environmental
Awareness
Workforce aware of requirement to protect the environment whilst executing contract
Control
Identify potential environmental hazards
Develop procedures for handling materials and performing operations that may damage the environment
Contingency plans
Aims
Focus for the environmental protection team
At what level
Line management responsibility for environmental protection defined as well as other job objectives.
Development and enhancement of environmental impact statements for the contract
Monitoring/restoration
Environmental monitoring to gauge the impact of operations
Plans appropriate and sufficiently detailed
Recovery and restoration of site after contract completion
Audits
Environmental audits of operations during the contract
Carried out by experienced individuals or companies
Road Transport.
Drivers: competence and selection
Assess physical, mental and psychological capability
Character and background
Qualities and experience, medical examination, document checks, driving tests
Special skills such as terrain and climatic experience and first-aid knowledge
Vehicle: selection
Ensure correct type, capacity and size for facilities
Good manoeuvrability and serviceability
Vehicle: specification
The job description should be clearly defined before the vehicle is chosen, to ensure work operations do not exceed the
manufacturer’s specifications
Safety equipment and communications on board the vehicle need to be checked
Vehicle: passengers
Is the vehicle designed to carry passengers?
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Vehicle: freight
Design of vehicle and load limits
Segregation, positioning and securing of freight
Vehicle: maintenance
Conducted on a regular basis
Contracting
Pre-qualification of contractors and contractor HSE management treating road transport with equal importance to main
activity
Standards for scope of operations included in tender operation
Control and review mechanisms included in contracts
Policy of no subcontracting without written authority
Procedures
Ensure procedures are in place for all transport operations
Monitor and review mechanisms in place
Emergency services
In place and tested
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Table V.6 Checklist for HSE plan: section 6 Implementation and performance monitoring
Feedback/analysis
Availability and use of performance records
Feedback/review/discussion at HSE meetings
Presentation and distribution to employees
Comparison of performance
Comparison of performance:
With other similar contract work
Frequency specified
Involvement of company personnel
Incident Investigation
Coverage
Reporting procedure for the contract
Covering not only injuries to and time lost by personnel but also:
• health incidents (diseases, exposures to hazardous substances, near misses, etc.)
• environmental incidents (spillages, releases, contamination, etc.)
• other safety incidents (safety equipment failures, loss of capital equipment)
• material loss
Methods
Incident investigation method established to determine and correct causes
Incidents first reported to the direct supervisor
Incident investigation teams led by the relevant managers
Differentiation made between numbers of first-aid treatments and other minor injuries
Procedure in place on vehicle incidents
Methods to be used for collecting incident statistics
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Table V.7 Checklist for HSE plan: section 7 Auditing and review
HSE auditing
Availability
Established HSE procedure outlining responsibilities, frequency, methods and follow-up
Scope
Compliance with the HSE Plan including:
• HSE management
• departmental personnel HSE
• technical personnel HSE
• subcontractor
• occupational health
• unsafe acts
• audit training
• environmental
• own activities and those of his subcontractors
Coverage
Consistent with company guidelines
Schedule for full contract duration
Involvement of personnel in audit teams from outside the location
Carried out by a wide cross-section of the workforce including company and subcontractor personnel
Effectiveness
How verified
Involvement of the contractor’s corporate management in review of findings
Intention to publish findings
Discussion with personnel on contract and at HSE meetings
Lessons used to improve operations across the contract
Follow-up
Any numerical treatment made of findings
Frequency of review of implementation progress
Rejections of audit findings properly authorised and documented
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Hazard assessment
Contract scope description
Expected hazards identified (including adjacent operations, etc.)
Alternatives considered
Procedures to be followed for hazard control (list documents or
describe details here)
Access/escape provisions (alarms, muster stations, etc.)
Emergency service provisions (including first-aid, nearest medical
treatment, emergency phone numbers, etc.)
Competence standards for contractor’s personnel
Standards for contractor’s equipment
Training requirements (including site HSE induction )
Job/services description
Contractor’s personnel assigned
Contractor’s equipment/ consumables/services assigned
Company’s personnel assigned
Company’s equipment/consumables/services assigned
Subcontractor details
Responsibilities/interfaces defined
PPE and any special HSE equipment to be used
Working hours/job duration
Site description/limits
PTW provisions applicable
Conditions for suspending work (e.g. weather, adjacent site oper-
ations, etc.)
52 © 2000 OGP
What is OGP?
The International Association of Oil & Gas Producers represents the world’s oil and gas
industry. Our members include private and state-owned oil and gas companies, national
associations and petroleum institutes.
What do we do?
We aim to:
• increase understanding of the industry;
• work with international regulators to develop workable proposals which take full
account of industry views;
• contribute to continuous improvements in industry operating standards;
• be a visible and approachable organisation to which governments and others refer on
matters relating to the industry;
• maintain a large, diverse and active membership; and
• communicate issues affecting members to international bodies and the public.
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