Safety, Health and Environment Management

1. Safety, Health and Environment Management How to Implement for Success?

2. 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

3. 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

4. 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

5. 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

6. 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

7. Implementing SH&E Mgmt for Success • Noble Corporation How does this company achieve success?

8. 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

9. 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.

10. 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

11. 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

12. 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

13. 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

14. Implementing SH&E Mgmt for Success • Noble Corporation SH&E Mgmt System • Hazard (risk) Identification & Control • SH&E considered & integrated into platform design & operations

15. 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

16. 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

17. 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

18. 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

19. Implementing SH&E Mgmt for Success • Noble Corporation SH&E Mgmt System • SH&E Programme: STOP Observation & feedback

20. 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

21. 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

22. 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

23. Implementing SH&E Mgmt for Success • Noble Corporation SH&E Mgmt System • Continuous performance improvement

24. 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!

25. Implementing SH&E Mgmt for Success • Noble Corporation Benefits • Continuous performance improvement

26. Mid East jackups 4 Units Mid East jackups Semi upgrades $ Millions 3,600 3.0 Joint Ventures 3,000 2.5 EVA’s 2,400 2.0 Neddrill/ Other Int’l 1,800 1.5 Chiles Western 1,200 1.0 Transworld GE/Bawden 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 Noble Benefits: Safe and Profitable

27. Implementing SH&E Mgmt for Success • Noble Corporation Benefits Recognized Leader

28. Implementing SH&E Mgmt for Success • Your Challenge • Your Corporation Benefits Become a Recognized Leader