asia pacific hse 2008 rev 12 oct 08 16_40 hr

HSEChallenges and Trends

Asia Pacific and Middle East

Henk VorsterPetrofac Project HSSE Manager

Asia Pacific HSE 200815th – 17th October 2008Kuala Lumpur, Malaysia

Trends and Challenges

Business Unit (commercial activity)

Henk Vorster, Petrofac HSSE ManagerAsia Pacific HSE 2008 15-17 October 2008 – Kuala Lumpur 2Rev.: 0; 02-Oct-08

Region Global Picture

Henk Vorster, Petrofac HSSE ManagerAsia Pacific HSE 2008 15-17 October 2008 – Kuala Lumpur 3Rev.: 0; 02-Oct-08 3Rev.: 0; 02-Oct-08

Global Picture

“The proposed creation of an international framework to cut greenhouse gas emissions came under debate Wednesday at a meeting of economic ministers from the 30-member Organization for Economic Cooperation and Development (OECD). French economic minister Christine Lagarde, who is chairing the OECD Ministerial Council Meeting, urged the ministers to expedite use of

Taking advantage of a market mechanism to stem global climate change is the most cost-efficient approach, so it is desirable to ensure that as many nations as possible will take part in the trading”, said Lagarde…

– Oil and gas will remain major energy source

• Global warming– Hydrocarbon Contribution– New fuel sources

– OECD Ministers Discuss Measures to Cut Greenhouse Gas Emissions

international trading in national quotas for greenhouse gas emissions to combat global warming.


• Financial and economic

• Resources

- Huge strain on resources

Global Picturecontinue 1

- World recession – negative influence on new projects

- IOC and NOC finance their own projects?

- High oil prices fuels new projects

- Contracts do not always address HSE correctly

- Experience depleting

- Exploding construction tapping from the same resource


With 72 million unemployed youth in the world today, and projections of worse to come, ILO global studies note that youth employment statistics "provide a stark warning." Youth unemployment has grown by 10 million since 1995 – and currently accounts for 41 per cent of the global total of 160 million. And, the ILO predicts an 11 per cent increase in the world’s youth population in the decade to 2010 – rising by 116 million to 1.2 billion.

LabourGlobal Picture continue 3

Asia and the Pacific will account for the vast majority of this increase, some 73 million. Coupled with this are further predictions that the global economy will need to accommodate half a billion more people in the labour forces of developing countries over the coming decade.


Labour – 2Global Picture continue 4

Well Beyond the Basics: A Comment by APEC• Knowledge is power, it is often said. But in the 21st century, experts

agree the facts can only get a person so far. As the world is increasingly globalize, the ability to communicate, negotiate and virtually transcend borders will define the opportunities available both to individuals and to entire economies. As a precursor to APEC's 4th Education Ministerial Meeting, best practices in education have been exchanged by delegates from 21 Asia-Pacific economies.

• While APEC economies vary widely in terms of development, outlooks are strikingly similar and defined by a context of continuous change and increasing interdependence. For education plans to be sustainable, they must be flexible to accommodate the rapid evolution of technology. They must enable global exchanges through the use of foreign languages and communication skills.

• Delegates discussed the importance of teaching critical thinking in relation to other matters, not as an independent subject. For example, students could be taught how to think critically about global warming, historical events or political issues. The 4th APEC Education Ministerial will serve to guide economies as they review their own standards, policies, teaching methods and tools in order to achieve the targets they set for themselves.


Labour – 3Global Picture continue 5

• Migration

• Culture

• Language

• Religion– More than one religion on one project

• Remuneration

- Labour force not just local anymore- Health issues migrate with labour

- Projects employs a multi-culture work force- Culture differences

- Many different languages on one project

- Multi-national workforce brings disparity


StandardsGlobal Picture continue 6

• International standards – API. ISO, etc– Where is the Global standards

• Regional standards• Country legislation• Industry standards

– IOC or NOC?• NOC enforce their standards• IOC enforce their standards

• Reporting standards


ExpectationsGlobal Picture continue 7

• International standards

• Transparency in reporting

• World class performance

• Global statistics show that deaths from road traffic accidents are currently listed as being the eighth highest cause of all deaths in the world today. These statistics also indicate that by the year 2020, deaths from road traffic accidents will have risen to third on that list.

Trends and Challenges Regional

Labour• 72 million unemployed youth in the world today• More than 50% in Asia-Pacific and the Middle East • HSE specialist and advisors - a major shortage per

region/country• Changing the dinosaurs to adapt to a changing world• HSE experience is not transferred to the youth at an

acceptable rate• HSE in O&G competes with all growing sectors• Cost cuts seems to influence HSE first• Universities and training have not enough focussed on the

HSE.• Global pressure on HSE addressed effectively?• Live under high risk conditions• The region's population, swelled by huge inflows of

immigrant labor, has doubled over the past 25 years and now numbers 650 million. For example, the populations of Qatar and the United Arab Emirates have increased fourfold, fueling these countries' strong growth but straining their infrastructural capacity.


Trends and Challenges Regional continue – 1

Oil and Gas exploration, construction and production

• Higher risks to mitigate• Incidents and accidents – can have bigger impacts• Environmental outcomes can influence exports more

and more• Entering sensitive areas• Logistics (infrastructure, transport)• Road traffic accidents• Occupational records of projects should be kept by

Governments



Standards and Reporting

• IOC and NOC follow different standards• Incidents and accidents reporting and

investigations• Statistics not reliable to help in mitigation and

forecasts• Enforcing of standards in many cases not strict• Project records not archived in regions



Expectations• High growth on schedule (at all cost?)• No incidents or accidents (results in poor reporting?);

Statistics there to window dress• Construction teams only need to comply to regional

standards• People in the region wants to be employed (lack of skills?)• Government enforce local employment• Remuneration disparity


• The Middle East construction safety market is experiencing double digit growth, due to a phenomenal number of large projects coupled with increasing awareness of safety standards and products, according to an industry expert.


Economic Growth

• The Middle East and Central Asian region is growing at 6½ percent in 2007, and growth is expected to be about the same in 2008. Now lower for 2009.

• Although the overall outlook is favorable, the downside risks from the global economy have increased, and the region must tackle important policy challenges to sustain strong growth and make further progress in reducing poverty and unemployment. HSE must be used as a vehicle for sustainability.

• Growth in the region—which comprises 30 countries divided into oil exporters, low-income countries, and emerging markets—will outstrip global growth in 2007 for the eighth year in a row (see table). Moreover, GDP growth is outpacing population growth. "The message is that the region is booming," said Mohsin S. Khan, Director of the IMF's Middle East and Central Asia Department. "Per capita incomes have more than doubled over the past decade."



Policy Issues• Although the outlook for the Middle East and Central Asia

region is very positive, it could be marred by regional and global factors. Conflicts in the region and the potential for worsening security could hurt overall economic performance.

• If global growth slowed significantly, the region could also suffer, particularly in light of its increasing integration with the global economy and dependence on commodity exports. Another potential risk is that of worsening international financial market conditions, which could reduce capital flows to the region.



Regional Transformation

• The transformation of the region's role and significance in the world has been marked by increases in per capita incomes, enhanced economic integration, and changes in countries' economic systems. The region is becoming more diversified, and in the countries of the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) the non-oil sector growing in importance. Another feature of the transformation is the expanding role of market forces and the private sector in the region.

• Everybody draws from the same HSE pool of resources


Trends and Challenges Business Unit

• Today’s accident reports suggest us that a number of accidents occurred because the employers may have preferred their cost reduction policy to the protection of workers’ safety and health.

Yohtaro Sawada, President of the Japan Industrial Safety and Health Association (JISHA)

DIRECTOR OF NORWEGIAN EMPLOYERS FEDERATION

“IF YOU THINK SAFETY IS EXPENSIVE TRY AN ACCIDENT”


• Cost reduction is an important tool for companies to survive business competition. However a cut in safety and health expenses can be dangerous and could harm the working people.

Would we do this today?

Trends and Challenges Business Unit continue 2


Trends and Challenges Business unit continue 3

General• Lack of HSE specialists• Poor or no knowledge of international or local standards• Unskilled work force• Workers take high risks - will follow any command (afraid to

be dismissed)• Standard of equipment may not conform to international

standards• Local contractors do not comply and contracts do not assist

to enforce compliance. • Remuneration discrepancies amongst contractors employees

as well as date of remuneration



General• Culture / religion differences, food, dress code (PPE), living

conditions. Work hours• Communication

– Multiple languages– English the common denominator?– Accent always a problem.– Body language and signs differ between cultures and

causes mis-communication.• Training• Road traffic accidents.




Training• Communication

– Interpreters (always a problem)– Training material in different languages– Videos not in different languages

• Unskilled work force• Workers take high risks - will follow any command (afraid to

be dismissed)• Standard of equipment may not conform to international

standards• Local contractors do not comply and contracts do not assist

to enforce compliance. • Culture/religion differences, food, dress code, living

conditions. Work hours• Communication

– Multiple languages– English the common denominator?– Accent always a problem.


Safety

• Invalid certification of people and equipment• Clarifying the HSE roles and responsibilities of

supervision• Working at heights without a harness• Wrong and old tools• Old equipment especially lifting equipment.• Job hazard analyses.• Communications.• Toolbox talks to groups of multi language and culture.• People use their experience and not current

procedures.



Health• Migration of workforces to the business site with different

health background• New diseases on site such as Malaria• Communicable diseases such as chicken pox• Clinic visit and sickness absence increases with long hours

and poor leave conditions.• Workforce with a poor knowledge of health • Records of occupational injuries and illnesses are lost after

projects• Remote site with limited medical facilities and medical staffs• Clinic communication, health staffs VS Workforces• Health promotion, campaign and awareness

– Communication barrier– Difficult accent

• Uphold hygiene in construction camps• High standard of health



Environment

• Global environmental problems (greenhouse gas emission in atmosphere)

• Implementation of environmental awareness programs• Improvement of environmental skills for working personnel• Hazardous substance management• Focus on construction waste management (reduce, reuse,

recycle system)• Energy consumption (water, electricity, fuel)• Environmental noise and vibration• Social programs and contribution to regional sustainable

development



Final Remarks• Asia-Pacific and the Middle East is the growing hub of the

world• It is time for the region to take the lead in developing the

HSE skills it need for sustainable growth• The region should take the lead in unifying HSE standards.• The region should educate the youth in HSE matters to set a

sound foundation for the labour market.• International and National oil companies should join hands

and come up with a basic regional standard• Governments and educational institutions must make HSE

the basis for all sustainable growth • HSE commercials must became a daily event on radio,

television and the printed media.• First aid training must become compulsory in school

education.The world economic crises has shown us that we need to make new rules for tomorrow! That goes for our thinking

about HSE as well!Henk Vorster, Petrofac HSSE ManagerAsia Pacific HSE 2008 15-17 October 2008 – Kuala Lumpur 26Rev.: 0; 02-Oct-08


Acknowledgments• www.ameinfo.com/news/UAE_Focus • ILO Turns Spotlight on Asia Pacific Dimensions of Stark

Global Youth Employment Crisis• Shell in the Middle East• Energy, Environment and Development Programme

Chatham House10 St James’s SquareLondon SW1Y 4LETel: +44 (0) 20 7957 5711Email: [email protected]/eedp

mailto:[email protected]

http://www.chathamhouse.org.uk/eedp


• www.sciencedirect.com• www.imf.org/external/pubs/ft/survey/so/2007 • www.aposho.org/new/index.jsp • Asian Development Outlook 2008 • www.ilo.org/global/Themes/Safety_and_Health_at_Work/lang-

-en/index.htm• http://unpan1.un.org/intradoc/groups/public/documents/apci

ty/unpan030860.htm#3_1_3• www.ilo.org/global/What_we_do/Statistics/lang--en/index.ht

m• www.adb.org/• www.amf.org.ae/• web.worldbank.org/ 05/06/2008

http://www.apec.org/ 10/06/2008 • My HSSE team

AcknowledgmentsContinue 1

http://www.sciencedirect.com/

http://www.ilo.org/global/Themes/Safety_and_Health_at_Work/lang--en/index.htm

http://www.ilo.org/global/Themes/Safety_and_Health_at_Work/lang--en/index.htm

http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan030860.htm

http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan030860.htm

http://www.ilo.org/global/What_we_do/Statistics/lang--en/index.htm

http://www.ilo.org/global/What_we_do/Statistics/lang--en/index.htm

http://www.adb.org/

http://www.amf.org.ae/

asia pacific hse 2008 rev 12 oct 08 16_40 hr

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