ExxonMobil SHE Risk Assessment and Management

2. ExxonMobilSHE Risk Assessmentand Management Alexi Dimopoulos ExxonMobil Research & Engineering Co.

3. ExxonMobil Approach for Managing Process Safety Risks • Over 100 years of commitment to Safety, Health and Environmental (SHE) Excellence • Safety, Health and Environmental protection are at the core of our business, executed under the umbrella of the company-wide Operations Integrity Management System(OIMS) • Comprehensive set of systems, processes and tools used throughout capital project development and ongoing operations • New Projects system involves specific activities at defined project stages that ensure risks are identified and managed • Ongoing operations assessed using site-specific, multi-faceted comprehensive risk assessment programs • Result has been long term improvement in all aspects of process and personnel safety performance

4. OIMS Elements Driver Operations Evaluation 2. Risk Assessment & Management 3. Facilities Design and Construction 4. Information/Documentation 5. Personnel and Training 6. Operations and Maintenance 7. Management of Change 8. Third Party Services 9. Incident Investigation and Analysis 10. Community Awareness and Emergency Preparedness 11.Operations Integrity Assessment and Improvement 1. Management Leadership, Commitment and Accountability

5. OIMS 2.0 - Risk Assessment and Management PURPOSE • Risk assessments reduce risks to safety, health, and the environment and mitigate the consequences of incidents by providing essential information for decision-making. • Involve hazard identification, assessment of probabilities and consequences (i.e. “risk”), and evaluation of risk prevention and mitigation measures. • The process applies to new projects, ongoing operations and products. EXPECTED RESULTS • Reduced frequency and severity of operations incidents through hazard identification followed by review and mitigation of operating risks. • Risk assessment follow-up actions are identified and resolved in a timely manner.

6. Comprehensive Risk Assessments • A Comprehensive Risk Assessment consists of a combination of “SHE Reviews and Assessments” (see following pages). • Applicable governmental requirements may affect assessment timing. NEW PROJECTS • The site has flexibility to adjust the size of the team, the scheduling, and the stewardship of information commensurate with project complexity. • Documentation as to how each of the assessments is satisfied must be provided. EXISTING OPERATIONS • Sites should maintain a plan that schedules and conducts reviews that are relevant to the hazards and exposures of the site. • The plan should confirm that all relevant reviews are conducted within a 10-year planning period per the “Typical Timing” noted below • Sites may conduct individual assessments or combine several together.

7. SHE Reviews and Assessments

8. Major Accident / Higher Level Risk Assessments Conducted by: • Manufacturing / Distribution / Technology personnel supported by SHE and other specialist(s) Typical Timing: • New Projects: Prior to finalization of the facilities design • Existing Operations: • Following a baseline risk assessment updates for major accident hazards risk assessments may be triggered by significant process / unit changes. • The risk assessment is revisited every 5-7 years to verify consideration of all major accident hazards and validity of risk assessment assumptions and risk mitigation strategies. Description: • Uses ExxonMobil Risk Matrix to construct and review risk scenarios and adequacy of risk controls. • Scenario-based risk assessments based upon potential releases from major inventories of flammable and toxic materials. • Baseline risk assessment study is conducted and maintained to manage major accident hazards.

9. Hazard and Operability Review (HAZOP) Conducted by: • Trained multi-disciplinary team with process, technology and operations participants supported by SHE and other Engineering specialists Typical Timing: • New Projects: Conducted at least twice during project development • after completion of the process design specification • after issue (for construction) of Process & Instrumentation Diagrams (P&IDs). • Management of change will go into effect after the last review. • Existing Operations: Every 5 to 12 years depending on hazard potential Description: • Formal, systematic and critical SHE review of the engineering and operations intentions • Review P&IDs identifying and evaluating potential hazards or operability problems. • Typically includes review of startup / shutdown / SHE-critical procedures • Uses the ExxonMobil “Knowledge-Based” HAZOP methodology or other endorsed Process Hazards Analysis methodology • Identifies deviations from ExxonMobil Design and Global Practices • Requires action to accept deviations or implement corrective action

10. Fire Protection Survey for Existing Operations Conducted by: • SHE personnel including fire protection specialist from outside the site. Typical Timing: • Every 5 to 10 years depending on complexity of facilities. • Repeat activities triggered for significant process / unit changes, changes in flammable / toxic inventories or layout, changes in emergency response organization, and/or to satisfy other government requirements. Description: • Formal review and performance verification of a site's fire protection equipment and emergency plan. This survey is in addition to a site's normal ongoing inspection program of fire protection equipment.

11. Summary • ExxonMobil has a comprehensive and effective approach for managing process safety risks • Utilizes a coordinated set of systems, processes and tools under the umbrella of Operations Integrity Management System (OIMS) • Both ongoing operations and capital projects are addressed • Particularly noteworthy are engineering standards and comprehensive risk assessment • Incident information is continuously analyzed for learnings and to set direction for special studies and other initiatives

12. Appendix

13. Design and Global Practices DESIGN PRACTICES • Means by which ExxonMobil experience and know-how, gained through R&D and technology application, are used in design specifications • Technology selection criteria, design considerations, calculation steps • Safety DPs include Pressure Relief, Flares, Fire Fighting, etc. GLOBAL PRACTICES • Define criteria and recommended specifications for detailed design, procurement and fabrication of equipment • Augment industry codes and standards to enhance SHE, operability, reliability, cost savings, maintainability • Capture field experience, including incident learnings, and technology developments to offer competitive advantage • Rationale provided for many requirements • Purpose Codes (Safety, Environmental, Reliability, etc.) provided • Safety paragraphs include information whose primary purpose is avoidance of personnel and operational safety incidents • Local policies govern requirements for formal review and approval

14. Inherent SHE Review (ISHER) for New Projects Conducted by: • Business group team trained in the subject supported by SHE specialist Typical Timing: • During the development of Design Basis for the project. Description: • Formal, systematic critical review of process and key operations steps, critical process information, and raw materials/products distribution used to identify, reduce or eliminate significant safety and health hazards/environmental aspects. • Identifies key hazard controls. • Provides input to develop the strategy for subsequent SHE reviews.

15. SHE NPQC (Non-Process Quality Control) for New Projects Conducted by: • SHE specialists Typical Timing: • During process design and detailed engineering and as needed by project specifics. Description: • Assessing engineering details of controls for key hazards and exposures of personnel. • Review deviation from approved SHE practices and job specification. • Confirms inclusion of Human Factors into detailed engineering.

16. Pre-Startup Safety Review (PSSR) for New Projects Conducted by: • Business group team supported by SHE specialists Typical Timing: • Two to six weeks prior to unit commissioning. Description: • Assesses readiness of organization for safe startup of facilities, including status of previously identified SHE issues, SHE training of personnel, etc. • Key checks made on the implementation of approved SHE practices, project specifications and field verification of constructed facilities.

17. Facility / Occupied Building Location Study Conducted by: • SHE specialists Typical Timing: • New Projects: Early in project, during site plot plan development • Existing Operations: • Once to establish a baseline. • Updates triggered by changes in process / unit facilities, changes in flammable / toxic inventories or layout, introduction of new building or increased manning levels to existing buildings. Description: • Reviews hazards and potential explosion areas and exposures to personnel inside building from those hazards

18. Security and Safeguards Risk Assessment Conducted by: • External security specialists in coordination with the site's security and/or appropriate members from the facility to be assessed Typical Timing: • New Projects: Early in project • Existing Operations: • Once to establish a baseline. • Updates triggered when exposure potential changes due to new information, changing conditions or introduction of new agents Description: • Assesses the probability and severity of undesired security events on assets when significant changes occur to facility operations. • Used to identify and develop countermeasure recommendations that mitigate the identified risks in a cost effective manner

19. Marine Terminal Survey Conducted by: • Marine operations personnel supported by SHE and specialized marine person(nel) from outside the site. Typical Timing: • New Projects: Within 2 years after startup • Existing Operations: • Every 6 to 8 years depending on complexity of marine terminal. • Repeat activities triggered by significant operational and maintenance changes. Description: • New Projects: Designed according to Design Practices (DPs) and Global Practices (GPs) • Existing Operations: • Terminals assessed relative to 19 DP & GP requirements that have now been incorporated into the Oil Companies International Marine Forum (OCIMF) Standards. • Includes a review of the pre-arrival screening and communication, port passage, berth approach, maneuvering, berthing/mooring, vessel/shore access, mooring management, ship-shore interface, ship-shore transfer equipment, pollution prevention and response, and mooring procedures.

20. Scenario-Based Operating Area Risk Assessments for Existing Operations Conducted by: • Operating area business group teams, including process operators, supported by SHE specialists and occasional "cold-eyes" from other operating areas, outside sites, etc. Typical Timing: • Every 5-7 years previously identified scenarios are re-revisited for applicability. New scenarios identified based upon hardware/procedural changes, items from HAZOP's, a review of past incidents and other ad hoc concerns. Description: • Typically half-day reviews include "brainstorming" and developing of scenarios using the ExxonMobil Risk Matrix. • Operating areas like process units, docks, laboratories, and mechanical workshop are assessed

21. HAZAMS (Hazard Analysis Machinery Safety) for Existing Operations Conducted by: • Multi-disciplinary team with process, technology and operations participants supported by SHE and other Engineering specialists. Typical Timing: • At any point in our work processes when risk analysis is called for and machinery hazards exist. Description: • The HAZAMS is a safety and operability review process focused primarily on machinery safety issues. • Addresses reliability in addition to loss of containment / safety.

22. Safety Relief Valve and Flare Header Review for Existing Operations Conducted by: • Experienced process design personnel Typical Timing: • Once to establish a baseline. • Thereafter, the information is updated as necessary to reflect significant changes, such as process / unit modifications or changes in relief loads • Analysis is periodically re-done to confirm accuracy of information Description: • Examines capability of pressure relief and blowdown facilities and manifold operations to handle design and emergency contingencies in process units and distribution facilities. • Can be an ongoing activity once relief system is fully documented and computer based, computing all process changes and capacity creep.

23. Environmental Assessment for Existing Operations Conducted by: • Personnel knowledgeable about site operations and environmental issues Typical Timing: • Once to establish a baseline. • Update when significant aspects change. Description: • Identifies potentially significant environmental aspects associated with operations that should be considered when environmental plans and objectives are established. • Uses ExxonMobil Corporate “Guide to Identification and Assessment of Environmental Aspects” or a comparable process to qualitatively identify environmental issues and evaluate significance.

24. Exposure Assessment Strategy (EAS) for Existing Operations Conducted by: • Trained Occupational Health professionals, with assistance from site operations and maintenance personnel. Typical Timing: • Once to establish a baseline. • Updates triggered when exposure potential changes due to new information, changing conditions or introduction of new agents. Description: • Reviews worker exposures to chemical and physical agents from routine job activities.