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Safety, Health and Environment Management
How to Implement for Success?
Implementing SH&E Mgmt for Success
• Describe what is necessary by examining Noble Corporation – R.W. Campbell Award
• Background - Off-shore drilling • How to Implement for Success
– 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
Implementing SH&E Mgmt for Success
• Background - Off-shore drilling – Extremely challenging business
• Unforgiving natural environment• Capital intensive• Continually evolving technology• Significant operational risks
– Piper Alpha– Campos Basin P-36
Implementing SH&E Mgmt for Success
• Piper Alpha - North Sea– Value $2 billion– Produced from 24 wells– 229 crew– Explosion 1988
• 167 crew dead• Loss of the unit• Total loss > $11 billion
Implementing SH&E Mgmt for Success
• 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
• 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
• Noble Corporation
How does this company achieve success?
Implementing SH&E Mgmt for Success
• Noble Corporation– Corporate Values & Expectations– Executive & Senior Mgr. Leadership & Commitment– SH&E Management System
• 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
• 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.
Implementing SH&E Mgmt for Success
• 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
Implementing SH&E Mgmt for Success
• Noble Corporation– SH&E Management System
• 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
• 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
Implementing SH&E Mgmt for Success
• 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
Implementing SH&E Mgmt for Success
• Noble Corporation SH&E Mgmt System– Hazard (risk) Identification & Control
• SH&E considered & integrated into platform design & operations
Implementing SH&E Mgmt for Success
• 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
• 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
• Noble Corporation SH&E Mgmt System• Severe Weather Preparations
– Extensive planning enables Noble to minimize damage to platforms struck by hurricanes
Implementing SH&E Mgmt for Success
• 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
• Noble Corporation SH&E Mgmt System– SH&E Programme: STOP Observation & feedback
Implementing SH&E Mgmt for Success
• 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
Implementing SH&E Mgmt for Success
• 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– Adherence to international standard– Recycling, Halon reduction
– Emissions – CO2
– Energy use
Implementing SH&E Mgmt for Success
• 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
• Noble Corporation SH&E Mgmt System– Continuous performance improvement
Implementing SH&E Mgmt for Success
• 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!
Implementing SH&E Mgmt for Success
• Noble Corporation Benefits– Continuous performance improvement
Noble Benefits: Safe and Profitable
Note: Replacement value of fleet was $6.3 billion per Jefferies’ November/December 2003 report
$ Millions
Neddrill/Other Int’l
WesternChiles
Joint Ventures
GE/BawdenTransworld
Land/Barge Rigs Sale Mat Rigs Sale
EVA’s
Mid East jackups 4 Units
Semi upgradesMid East jackups
(600)
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1,800
2,400
3,000
3,600
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03(0.5)
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Implementing SH&E Mgmt for Success
• Noble Corporation BenefitsRecognized Leader
Implementing SH&E Mgmt for Success
• Your Challenge• Your Corporation Benefits
Become a Recognized Leader