Transcript How is SH&E Mgmt Implemented for Success

Safety, Health and
Environment Management
How to Implement for
Success?
Implementing SH&E Mgmt for Success
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Describe what is necessary by examining
Noble Corporation – R.W. Campbell Award
Background - Off-shore drilling
How to Implement for Success
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Executive Leadership
Core Business Value
Identifying and understanding SH&E risks
Comprehensive SH&E management system
Behaviour focused leading indicators
External audits
Senior Executive Management System Review
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Background - Off-shore drilling
– Extremely challenging business
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Unforgiving natural environment
Capital intensive
Continually evolving technology
Significant operational risks
– Piper Alpha
– Campos Basin P-36
Implementing SH&E Mgmt for Success
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Piper Alpha - North Sea
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Value $2 billion
Produced from 24 wells
229 crew
Explosion 1988
• 167 crew dead
• Loss of the unit
• Total loss > $11 billion
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Campos Basin P-36
– Value $500 Million
– 180,000 barrels/day
– 175 crew
– Explosion 2001
• 11 crew dead
• Total loss of the unit
Implementing SH&E Mgmt for Success
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Noble Corporation
– 84 years in operation
– 60 units world wide
• including Hibernia (NFLD)
– 5300 employees
– 12 years of improving safety
performance
– R.W. Campbell award for
SH&E mgmt. excellence
– Selected for the Dow Jones
Sustainability Index
– Highest ever operating
revenues in 2004
Implementing SH&E Mgmt for Success
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Noble Corporation
How does this company achieve success?
Implementing SH&E Mgmt for Success
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Noble Corporation
– Corporate Values & Expectations
– Executive & Senior Mgr. Leadership & Commitment
– SH&E Management System
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SH&E Policy, Goals and Objectives
Effective Communication
Hazard (Risk) identification, planning & control
Design and Engineering
SH&E Programmes
Employee Competency & Empowerment
SH&E Performance measures & monitoring
Continuous SH&E performance improvement
Implementing SH&E Mgmt for Success
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Noble Corporation
– Corporate values & expectations
• Health, Safety & Environment are corporate
values identified in Policy & Code of Conduct
• Board oversight of Noble’s HSE Committee
ensures a high level of scrutiny of this critical
area and reinforces the importance of HSE
performance to Noble’s management and
employees.
• SH&E performance is considered critical to
business success.
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Noble Corporation
– Executive Leadership & Commitment
• Policy a signed quotation of the CEO
• Executive Team reviews and approves the HSE Plan for
the year
• CEO chairs Monday morning operations meeting
– Opening topic is HSE performance.
• CEO chairs the HSE Committee
– Assess Noble’s HSE improvement efforts, performance
data and leading indicators
– Review and approve initiatives, policies and practices
– Assess and monitor HSE risks
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Noble Corporation
– SH&E Management System
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SH&E Policy, Goals and Objectives
Effective Communication
Hazard (Risk) identification, planning & control
Design and Engineering
SH&E Programmes
Employee Competency & Empowerment
SH&E Performance measures & monitoring
Continuous SH&E performance improvement
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E Mgmt System
– SH&E Policy, Goals and Objectives
• Policy Statement
– “The Noble Way – Doing the Right Thing”
• Clear long term goals
– SH&E performance excellence
• Clear yearly objectives and targets
– Continually challenging
– Benchmarked against the industry
» Consistently better than IADC
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Noble Corporation SH&E Mgmt System
• Effective Communication
– Noble Daily Operating Report (NDOR)
– First topic at Monday morning operations meeting
– Extensive orientation training and indoctrination
» Green hat (rooky) and individual mentor
– Safety leadership training
– Job Safety Analysis work planning
– STOP safe behaviours re-enforcement
• Relentless reiteration of Noble’s expectations
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Noble Corporation SH&E Mgmt System
– Hazard (risk) Identification & Control
• SH&E considered & integrated into platform
design & operations
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E
Mgmt System
• Design and Engineering
– Yellow non-skid drill mats
to draw attention and
prevent slips and falls
– Developed and tested an
aluminium alloy drilling
riser that has numerous
cost, safety and
operational advantages.
– Continuing develop of
lightweight materials in
offshore equipment to
reduce safety hazards and
improve operational
efficiency
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E Mgmt System
• SH&E Programmes
– Safety Leadership Workshops
» Completed the sixth cycle training 1500
supervisors worldwide
– Job Safety Analysis
» Systematic process to prompt employees to
consider potential safety, health and
environmental risks prior to the execution of work
– STOP safety observations and feedback
– Severe Weather Preparations
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E Mgmt System
• Severe Weather Preparations
– Extensive planning enables Noble to minimize
damage to platforms struck by hurricanes
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Noble Corporation SH&E Mgmt System
– SH&E Programmes
• Recognition & reward for excellence
– Internal recognition
» CEO award for SH&E performance excellence
– External Certifications
» ISO14001 certification for all facilities worldwide
» ISO 9001
» International Safety Mgmt. ISM Code Certificate
– External Awards for SH&E performance
» IADC North Sea Chapter 2003 Safety
» Marathon Oil 2004 HES Excellence Award
» International Regulators Form 2005 Award
» R.W. Campbell Award for SH&E Mgmt. Excellence
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E Mgmt System
– SH&E Programme: STOP Observation & feedback
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Noble Corporation SH&E Mgmt System
– Employee Competency and Empowerment
• Employee selection and orientation
– Highly selective to have the right combination of
communication, problem solving and team skills
– Extensive orientation training & individual mentoring
– “Green hat” identification of new employees
• Competency Assurance Program
– Assesses and verifies an employee’s capability to
perform all job requirements
– Ensures employees know requirements, have
needed skills and can accomplish tasks prior to
promotion
– Establishes clear criteria for advancement
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Noble Corporation SH&E Mgmt System
– SH&E Performance measures
• Safety measures
– Adherence to international standard
– Lost time (workday) incident rate, fatal accidents
• Environment measures
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Adherence to international standard
Recycling, Halon reduction
Emissions – CO2
Energy use
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E Mgmt System
– SH&E Performance monitoring & reporting
• Daily operating reports (NDOR)
• Weekly Monday morning reporting
• Quarterly SH&E Committee meetings
– Review progress towards objectives
• Regular SH&E management system audits
• Risk management audits
– Procedural controls
– Equipment integrity
• Annual Sustainability Report
Implementing SH&E Mgmt for Success
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Noble Corporation SH&E Mgmt System
– Continuous performance improvement
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Noble Corporation Benefits
– Continuous performance improvement
• Safety, Health & Environment
• Operations
• Investor returns
– 38 consecutive quarters of positive earnings
– Minimal losses
– Maximized return on equipment
– Low insurance costs
– Recognized industry leader!
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Noble Corporation Benefits
– Continuous performance improvement
Noble Benefits: Safe and Profitable
Mid East
jackups
4 Units
$ Millions
3,600
Mid East
Semi upgrades jackups
Joint Ventures
3,000
2,400
Neddrill/
Other Int’l
1,200
GE/Bawden
2.5
2.0
EVA’s
1,800
3.0
1.5
Chiles
Transworld Western
1.0
600
0.5
0
0.0
Land/Barge Rigs Sale
Mat Rigs Sale
(600)
(0.5)
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03
Note: Replacement value of fleet was $6.3 billion per Jefferies’ November/December 2003 report
Implementing SH&E Mgmt for Success
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Noble Corporation Benefits
Recognized Leader
Implementing SH&E Mgmt for Success
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Your Challenge
Your Corporation Benefits
Become a Recognized Leader