SHE-Q CULTURE IMPROVEMENT

APPLICATION EXPERIENCE AT PT BADAK NGL

DJOKO WIBOWOVP PRODUCTION

PT BADAK NGL , BONTANGKALIMANTAN TIMUR

2010

AGENDA

Good Safety is Good Business

• SHE-Q Moment• Overview

• SHE-Q Management System• Engineer in SHE

MWT

Communication is a key to change the

safety culture PP Guide No. : 1131-00-0 Company SHE-QS Policy

Joint Commitment endorsement

ALL, IT IS ABOUT WALK THE TALK

SHE-Q MOMENT

OVERVIEW

Ownership & Operational

55%

20% 15% 10%

Shareholders

Gas ProducersPT BADAK NGL was built in 1974 representing Pertamina and Gas Producers to operate LNG Badak Refinery.

First Shipment : 09-08-1977 7,000th Shipment : 17-09- 2008

GAS PIPE LINESLNG PLANT

LNG LNG

RECEIVINGTERMINAL

CUSTOMERS

GAS FIELD

GAS GAS

POWER PLANT

CITY GAS

USERS

LNG TANKER

LNG

25% 30% 30% 15%

SPECIFIC & INTEGRATED

PADAT MODAL & HIGH RISK

LNG BUSINESS CHARACTERISTIC

AB

C D

E

F

G

H

12 3

45 6

A/BC/D

G/H

Dock 3

Dock 1

Dock 2LPG Plant

CW Intake

No. Trains : 8 (22,5 MT/year LNG production capacity) Loading Dock : 3 ( 3 LNG, 2 LPG) Feed Gas Supply : 3.7 BSCFD with 4 Pipe lines (2@36”; 2@42”) PT. Badak NGL Area : 2.100 HA (220 Ha for Plant)

BADAK LNG/LPG PLANTBONTANG, EAST KALIMANTAN ~ INDONESIA

CW Canal

CW Canal

E/F

FEED GAS

K.O.D.

CO2

LNG

MARINE LOADING

MARINE LOADING

FRACTIONATIONC5+

BOIL OFF TOPLANT FUEL

PROPANEREFRIGERATION

M C RREFRIGERATION

DEETHANIZERDEPROPANIZERDEBUTANIZER

LNGSTORAGE

LPG

LPGSTORAGE

CO2 REMOVAL(ABSORBER & REGENERATOR)

LIQUEFACTION(MAIN EXCHANGER)

STORAGEFRACTIONATION

(SCRUB COLUMN)

DEHYDRATION(H2O & Hg REMOVAL)

LNG Plant Process APCI Process. Propane Pre-cooling and Multi Component Refrigerant (MCR®) (mixture of Nitrogen, Methane, Ethane & Propane).

LNG PROCESS OVERVIEW

PENGAPALAN LNG

BUYERS TOTAL (MM TON)

TOTAL CARGOES

JAPAN 319.07 6,052

TAIWAN 51.66 838

KOREA 44.97 778

USA (BOSTON)

0.04 1

RUSIA 0.06 1

INDIA 0.06 1

CHINA 0.21 3

OTHERS 0.00 3

TOTAL 416.07 7,677

August 1977 - 18 October 2010

PENGAPALAN LNG PERDANA: AUG 9th 1977 7,000th LNG CARGO: SEP 17th 2008

LNG CONTRACTSCIF & FOB Contracts

All Contracts & Shipping activities are managed by PERTAMINA JMG (Joint Mgmt Group)

SHE-Q MANAGEMENT SYSTEM

WHY SHE-Q ASPECTS ARE NEEDED

Good Business

Regulations & Best Practices

Companies

Values

Key Stakeholders:

World energy Demand/ supply

Technology

Global energy market

Expertise

Social/cultural

environment

Demographic/economic

environment

Political/legal

environment

- Company Image- Revenue- High efficiency &

productivity

- Standard & Codes such as API & ASTM

- Gov. Regulations such as UU No.1/1970

PT Badak NGLWay

The old paradigm; - SHE is costly - SHE is specific Dept. responsibility

InadequateCompliance requirement

Inadequate SHE-Q Leadership commitment

Health Disorderin the workplace and environment

InadequateStandard & Operating Procedure

Frequently occurred :Fires, Work Accidents, Occupational Injuries, Road Traffic Accidents

Poor waste management

SHE-Q ISSUES

ASPECTS TO BE DEVELOPED

SHE-Q

People

Procedures

Equipment

Frank Bird’s Accident Pyramid

Required efforts to improve

Human Behavior

Safe Work Practices, Life Saving Rules, etc.

Engineering Spec., Process Hazard Analysis

International ConsultantsExternal Auditors/ Insurance :

RDI, DuPont, BSC, Lloyd, SGS, DNV, MIGAS, Producer. Proper KLH, Bapedalda, Tugu Pratama, Synergi

1977 1986 1992 1996 2000 2001 2005 2006 2007 2010

SHE-Q MS Development

CSM PLTSM LPM PSM EMS QMS

Baker Engineering

Quest

DuPontDNV

Energy Analyst

PTB Mgt System/Standards development

Proper

isrs7

Key: CSM– Contruction Safety ManualPLTSM – Plant Safety ManualLPM– Loss Prevention ManualPSM –Proces Safety ManagementEMS- Environmental Management SystemQMS– Quality Management SystemProper – KLHSHE-Q MS– Safety Health Environment and Quality Management SystemAlpha - Perseption AssessmentOmega – Riil assessmentPSRM =Process Safety & Risk Management

SHE-Q MS Implementatiom

2007 omega assessment with SHE-Q mgt system

2006 alpha & omega & Behaviour assessment with existing mgt system

Dec. 2005 PSRM assessment by DuPont

KY/SHE-Q MS Coord

SHE-Q MS AND MEASUREMENT TOOLS JOURNEY

2010 ISRS8 omega assessment with SHE-Q mgt system

We are a world class safety culture company

INTEGRATED SHE-Q MANAGEMENT SYSTEM APPROACH

Transformation from PSM to SHE-Q MS

Integration existing system :•Plant Safety MNL, Loss Prev MNL

•ISO 9001 QMS, 14001 EMS

•SMK3 (Indonesian Safety MS)

•OHSAS 18001•CSMS

Extended with interna-tional std./ best practices. • Business,

Asset, Project mgt.

• DuPont PSRM

• DNV ISRS7 Workbook

Life system, describes who is doing what, when and how.

SHEQ MS Structure; 21 elements and 80 SOP SHE-Q and 19 PP Guides.

PT BADAK INTEGRATED SHE-Q MS

Good Safety is Good Business

CULTURE CHANGE MODELSafety Culture Assessment

Good Safety is Good Business

Actual Culture

Integrated Management

System (SHE-Q MS)

Preferred Culture Outcomes

Leverage for changing :• Safety

Performance• Key Performance

Indicators• Risk Based

Management System

Interdependent Culture:• Help Others to

Conform• Networking

Contributor• Care for Others• Organizational

Pride

• Measure the level of goal achievement

• Measure the effectiveness of intervention

• Need to change intervention method and strategy ?

Obtaining Baseline Data for 3 Interrelated Aspects:• Psychological • Behavior • Situational

Method : Questioner Interview Focus Group

Discussion Doc. Review

Intervention Defined Culture Strategy

Safety Culture Reassessment

Management Commitment

Condition of Employment

Discipline Rules/Procedures Supervisor Control,

Emphasis, and Goals Value All People Training

Personal Knowledge, Commitment, and Standards

Internalization Personal Value Care for Self Practice, Habits Individual Recognition

Help Others to Conform Networking Contributor Care for Others Organizational Pride

DependentDependent IndependentIndependentReactiveReactive Safety by Natural

Instinct Compliance is the

Goal Delegated to SHE-Q

Manager Lack of Management

Involvement

Natural

Instincts

SupervisionSelf

Teams

Inju

ry R

ate

s

InterdependentInterdependent

SAFETY CULTURE CHANGE ROADMAP(behavior improvement)

Most people are here

World Class here ISRS7 level 7 & above

Start to develop and continue

implementation of the SHE-Q MS

BBS : Behavior

Based Safety

2005

1

2

3

4

20062007/8

2009

81 83 83 85 85 86 86 87 87 89 89 90 90 01 01 02 02 04 04 04 04 05 05 06 06 100

10

20

30

40

50

60

70

05.3

0

5.4

03.7

0

8.1

0

10.5

02.1

0

63.9

0

6

0

13

01.98

0

6.8

0

8.3

0

32.2

SAFE MANHOURS STATISTICS 1981 – 2010 (as of 31 Aug)

Safe

Manh

ours

(in

m

illio

ns)

Years

The Highest Man Hours Was Achieved : 63, 867, 519

or : 4072 Working Days( period Aug’1990 – Oct 24, 2001)

Hayward Strainer UTL-I, PTB employee (Fatal Accident-2001)

E2C-2 Contract employee (Fatal Accident-2005)

Implement: LPM,

PSM, EMS, QMS

Tr. B MHE explosion 14 April 1983

LT Accident, Bicycle case. 8 December 2006 North side Tr. A/B

As of 31 Aug. 2010

Total Persons Injuries : 39 • Fatal : 3 Persons (1 expat, 2 Ind)• LT : 16• DC : 18• FC : 2

Root causes : Lack of Procedures/Mgt System Lack of Training Lack of Supervision

CERTIFICATION OR ASSESSMENT PHASESPhase-I Phase-II Phase-III

Develop Management

System

Gap Analysisand Consultancy

from External Sources

Implementation & Dissemination

1. Initiate Management Commitment

2. Gap Analysis Review on specific Management System

3. Executive Leadership Workshop

4. Action Planning Workshop

1. Develop Management System and related procedures and document guidelines

2. Develop facilitators or committees specific to the Management System

1. Conduct dissemination to all employees

2. Manage implementation of Management System on committees & facilitators

2. Conduct Internal Audit/Review

3. Management Review Meeting

Phase-IV

External Assessment or Certification

Audit

1 Periodic Progress Review

2. Preparation for External Audit

3. Follow Up Assessment findings for improvement

SHE-Q MS IMPLEMENTATION EFFORTS

• Management Commitment1• SHE-Q Board Committee2• SHE-Q Committee3• KPI4• Management Walkthrough5• SHE-Q Training6• Emergency Equipment Readiness7• Safety Performance Indicators8• Safety Campaign9• Reward & Punishment10

SHE-Q MS

TOOLS

THE ADVANTAGES OF SHE-Q MS INTEGRATED & ISRS8 MEASUREMENT TOOL

Ensure effective risk management

Highlight current strengths and weaknesses in the management system

Establish/confirm regulatory compliance

Provide assurance to stakeholders that SHE-Q MS meets external standards

Benchmark performance against industry peers and other competitors

Demonstrate best practices and health of business

Drive to continual improvement

SHE-Q MS

isrs7

COMPANY

BENEFIT

RESULT

Through consistent SHE-Q MS implementation, it moves us toward World Class Safety Culture & to achieve interdependent culture

Good Safety is Good Business

Level 8

RECOGNITION

DELIVERABLE2

1

RECOGNITION

Good Safety is Good Business

PT BADAK NGL RECEIVED ISRS7 LEVEL 8 CERTIFICATE AS A WORLDCLASS COMPANY AND INTERNATIONAL BENCHMARK

OF ISRS IMPLEMENTATION & ISRS BEST PROJECTNEXT TARGET: LEVEL 8 OF ISRS8

PROPER Green Award from Indonesian Ministry of Environment

Environment Achievement through SHE-Q MS Implementation

1. Health and Safety : Reported zero Lost Time Injuries (LTIs).

2. Operating Cost : The lowest in unit operating cost (9.88 US$/Ton LNG Production).

3. Energy Usage : Competitive in energy usage 9.5% energy on LNG equivalent (3rd ranked)

4. Maintenance Cost : The lowest in maintenance cost (US$ 848/per Mechanical Unit).

5. Reliability : The second best of trip downtime (0.2% on capacity with reliability of 96.1% capacity

6. Personnel : The hourly of personnel cost is 2rd ranked (US$ 20 per hour).

2007 PT Badak Performance Achievements based on the SGS benchmarking result among 10 LNG Plants

Note : SGS is Shell Global Solutions

QUALITY MANAGEMENT SYSTEM(ISO 9001:2008)

ENV. MANAGEMENT SYSTEM(ISO 14001:2004 : PLANT & COMMUNITY)

PROPER KLH

SHE-Q MANAGEMENT SYSTEM(ISRS7 Level 8)

OTHERS : ISPS CODE, SWORD OF HONOURS, FIVE STARS, BSC, NSC, DE&SDM, PTM, Depnaker, dll.

Laboratorium: Akreditasi KAN (Indonesian Certifying Agency)

CERTIFICATION

Since the Last Lost Time Accident on Dec. 08, 2006 thru October 17, 2010Safe Working Days : 1408 Safe Manhours : 33,333,827

British Safety Council

( BSC )National

Safety Council( NSC )

DEPT. OF LABOR-RI

88

DEPT. OF ENERGY & MINERAL-RI

PERTAMINA

Safety Awards

LABOR INSURANCE AGENCY-RI

22

77

EAST KAL GOVERNOR

ISO 14001, ISO 9001, ISO 17025

99

7979

1616

33

1414

1313

DEPT. OF ENVIRONM

ENT-RI

33

44

DNV

Penghargaan Keselamatan Tingkat Nasional dan Internasional 1982 - 2009

We are a world class safety culture company

OUR SERVICES

Professional Operator for Start-up, Shutdown & normal operation of LNG Process, Storage & Loading and Utilities

Highly skill maintenance technician Maintenance Planning & Turnaround LNG/LPG Fire Fighting & Emergency Response

Training . Laboratory technician and analyst Production controller Consultation & assistance for Certification of

ISO 14001/9001/ISRS/PROPER

OUR CUSTOMERS

DELIVERABLE

ENGINEER IN SHE

ENGINEER IN SHE

1

Legal Aspects of Compliance, Regulations, Standards and Guidelines in the Engineering and Safety Management

2

Analysis of Safety Systems in the company combined with the standard management system (ISO 14001, ISO 9001, OHSAS 18001)

3

Process Safety Management which will include Plant Risk Assessment for Major Accident Hazards

SHE-Q BRANCHES

Safety

Process SafetyOcc/Industrial Health

Fire ProtectionBehavioral Safety

• Road Traffic Evaluation• PPE• Ergonomic• Noise, Lighting

• Plant Risk Assessment• Work Permit• QRA• Hazardous Area Class.

• AWAS• CSMS• Mgt Walkthrough• Safety Champaign

• HMCS• Fire Equipment

Evaluation• Fireproofing