SOGAT 2012

1. SOGAT 2012 The Shah Gas Development Project A Lifecycle Approach to the HSEIA Process

2. HSEImpact Assessment What is an HSEIA & Its Importance • An HSEIA is systematic approach to evaluating the potential effect of a project on health, safety and the environment • A living document that considers the full lifecycle of the project (FEED, EPC, Operations, Decommissioning & Abandonment) • ADNOC Requires HSEIAs to be undertaken for all project phases • Key function is to identify, assess, mitigate to ALARP and monitor on a continuous basis all material risk that can adversely impact health, safety, and environment • Residual impacts and hazards managed by the operator’s HSE Management System (HSEMS)

3. A Lifecycle Approach to the HSEIA ProcessIntroduction to the Approach • A streamlined, risk-based and quality-focused methodology based on current industry best practice for HSE Case development • A systematic and gated verification and review process that provides for the management of major accident hazards through the lifecycle of the Shah Gas Development (SGD) Programme • Greater emphasis is placed on HSE Critical Equipment and Systems (HSECES) integrity that provides significant safety and efficiency benefits to the end user • Developed in close cooperation with the ADNOC EHS Division • Demonstrates the safe systems of work and organisation required to effectively identify, manage and maintain risks to a tolerable and As Low As Reasonably Practicable (ALARP) level • Based on the detailed assessment of the proposed SGD activities and the outputs from HSEIA studies, management plans and procedures

4. A Lifecycle Approach to the HSEIA ProcessHow it is Different from Traditional HSEIA Approaches • The Al Hosn Gas HSEIA approach is a departure from traditional HSEIAs process in the following ways: • Process based method compared to the traditional prescriptive methodology of HSEIA report development • Is overarching and not limited to providing a ‘snap-shot’ in time of HSE risk i.e. lifecycle philosophy • Systematic and gated verification and review process provide tangible barriers from allowing the development to proceed to the next stage until a strategy to manage HSE risks to ALARP can be put in place • Reduces unnecessary duplication of HSE studies/reviews; and • Reduces the turnaround time for obtaining approvals from ADNOC EHS Division. • Inter-linkages between quality management and procurement thus effectively integrating supply chain logistics in the lifecycle and improving operational efficiency

5. A Lifecycle Approach to the HSEIA ProcessHow it is Different from Traditional HSEIA Approaches The following slides contain diagrams and process flows for the following: ADNOC HSEIA report process (slide 6) Overview of the Al Hosn Gas lifecycle HSEIA approach developed for the Phase II SGD Programme – well operations and well testing (slide 7) The 8 step elements of the Al Hosn Gas lifecycle HSEIA approach developed for the Phase II SGD Programme – well operations and well testing (slides 8 – 15)

6. A Lifecycle Approach to the HSEIA Process Traditional ADNOC HSEIA Report Components ADNOC HSE Impact Assessment Report ADNOC and SPC as regulator require HSEIA for O&G Projects Hazard & Effects Register For Risk categories: People, Environment, Assets & Reputation • Identify and assess material Risk • Mitigate risk to ALARP • Provide control measures and monitoring Environmental Impact Statement COMAH Report OHRA Report Manage medium/low risk through Operator’s HSE Management System

7. Al Hosn Gas Lifecycle HSEIA Approach SGD Phase II – Drilling, Well Testing & Cleanup Phase 8 Gates Review 1 Well Testing & Handover Project Initiation & Control 2 7 Evergreen Process Quality Management MAH & HSECES Identification Gates Review 3 6 Drilling Operations HSE Critical Positions & Tasks Gates Review 4 5 Detailed Well & Well Test Design & Engineering Procurement, Inspection & Testing

8. Robust Change Control procedures in place for review, approval & documentation of design changes. Change Management supported by an integrated (Company/Contractor) multi-discipline technical authority community (approved terms of reference) Change Control in Design Baseline Documentation Design Codes, Standards and Guidelines established by Drilling Development Division for the Drilling Contractors. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Project Initiation & Control 1 1.1 1.2

9. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element MAH & HSECES Identification 2 2.1 HAZID/ENVID/OHRA etc., to identify Major Accident Hazards (MAHs) & Initial identification of HSECES. ISO17776 Standard for Hazard Reference Codes with additional hazards identified for Al Hosn Gas HEMP Studies 2.2 Risk Registers Standard Hazards, Effects & Aspects Register format used by Company and Contractors Developed via multi-discipline technical authority community workshops using BowTieXP. Company Bowtie Analysis Standard establishes unique hazard and barrier referencing system that will carry through from design to operations bowties 2.3 Bowtie Analysis 2.4 HSECES are identified and confirmed by discipline technical authorities during bowtie analysis workshops. Controlled HSECES Register HSECES Identification

10. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element HSE Critical Positions & Tasks 3 • HSE Critical Positions & Tasks identified for all HSECES for the Drilling & Well Testing Phase. • Unique barrier referencing system facilitates efficient assurance activities i.e., barrier verification audits.

11. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Detailed Well & Well Test Design & Engineering 4 4.1 Well & Well Test Design Execution plans and assignment of competent resources 4.2 Design Inputs & Outputs Quality plans, codes/specs/standards and HSE criteria Design programs and calculation sheets 4.3 Well Design & Development Review Integrated multi-discipline design reviews conducted 4.4 HSE Embedded into Process Specific safety studies and reviews in line with the HSE plans 4.5 Design & Development Validation Independent Verification Process for HSECES

12. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Procurement, Inspection & Testing 5 5.1 Purchase Information HSECES Design Performance Standards Operating Envelope Criteria 5.2 Verification of Purchased Products HSECES inspection and test plans Independent Verification Process for HSECES 5.3 Inspection & Testing Inspection and testing plans prior to operation 5.4 Verification of inspection reports Third Party Inspection monitoring Change Control procedures Inspection & Disposition Reports

13. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Drilling Operations 6 6.1 Testing Well Integrity Drilling logs. Cement quality and casing integrity testing. 6.2 Validation Processes Pre-mobilization audits of HSECES. Technical audits to check critical equipment. 6.3 Identification & Traceability Quality plans Identification procedures Non-conformance procedures

14. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Quality Management 7 7.1 Measurement Inspection, testing and examination against design performance standards 7.2 Non-conformance Non-conformance control procedure Non-conformance reports & follow up 7.3 Analysis Monthly quality reports Independent Verification Body (IVB) compliance reports

15. SGD Phase II – Drilling, Well Testing & Cleanup Phase Element Well Testing & Handover 8 8.1 Stimulation & Cleanout & Testing Defined Test Objectives – optimised well test programme Well integrity assurance – standards verification Wellsite HSE management plan (BAT & ALARP principles) Management of change 8.2 Air Quality Flaring Management Dispersion Modeling Real time data monitoring – model verification 8.3 Operation Validation Validation of testing contractors QA/QC via ADNOC standards & audit Competence assurance 8.4 Nitrogen purging of service lines Permit to work compliance Well start up procedure Endorsed well handover document Handover

16. A Lifecycle Approach to the HSEIA ProcessThe Benefits • The HSEIA approach provides tangible performance enhancement benefits in the following ways: • A greater focus on MAHs and HSECES integrity thus significantly reducing the overall risk picture; • Greater flexibility for managing HSEIA process associated with multi-package/multi-rig operations thus providing optimum efficiency • Minimizing overall lifecycle costs through procurement of HSECES against approved performance standards i.e., QA/QC of HSECES from day one • Reduction of turnaround in ADNOC/SPC approval process i.e., SGD Program HSEIA Phase II approvals have been achieved approximately 14 days from submittal • The approach is fully integrated with ADNOC & COMPANY HSEMS • The iterative and evergreen nature of the approach provides the opportunity for continuous improvement