HSE Operating Mgt System Framework -printed

FOREWORD

PT Saka Energi Indonesia (SEI) was established on 27 June 2011, as the upstream oil
and gas subsidiary of PT Perusahaan Gas Negara (PGN), the Indonesia’s largest natural
gas transportation and distribution company, listed on the Indonesian Stock Exchange
(IDX).

This document describes SEI HSE Operating Management System Framework (HSE
OMSF) which is to be adopted at all SEI’s Operational Units. The HSE OMSF comprises
of ȴfteen elements describing the HSE requirements of SEI and its Operational Units.

All of the key processes/activities of each element are identiȴed and described and
must be executed in order to fulȴll the speciȴc requirements of the HSE OMSF.
These key processes/activities encompass the whole spectrum of operational risk
management and driven by continuous improvements principle are:

• Management Commitment and Leadership;
• Risk Management;
• Accident and incident investigation, analysis, prevention and lesson learnt;
• Facilities and equipment integrity;
• Pollution prevention and compliance with Governments regulations and other

related standards;
• Community issues, customers and stakeholder awareness;
• Operational Units security issues;
• Personal, occupational and environmental health/hygiene and sanitation;
• Crisis and Emergency Management;
• Behavior Based Safety Management;
• Sustainable business development;
• Energy management and conservation;
• Audit and Management reviews;

The essence of the HSE OMSF is establishing boundaries within SEI and its
Operational Units, where managers must operate the sites safely.

E΍ective, eɝcient and reliable management processes will result in enhanced
business performance, protection of SEI reputation, reduction of SEI risk exposures
to ALARP and supporting SEI promotion to become a distinctive leader within oil and
gas industry.

Jakarta, 20 August 2015

Edi Sularso Tumbur Parlindungan
Sr. HSE Advisor Chief Operation Oɝcer

3



HSE key goals of PT Saka Energi Indonesia are simply stated as:
“No accident associated with our operations; no harm to our employees, contractors or others; no
unplanned material/asset and financial losses; and no damage to the environment”

Exploration Drilling of Sesulu
SIS A#1 Well – during DST
First gas discovery, March 2015

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

CONTENTS 3
6
FOREWORD 7
CONTENTS 8
OVERVIEW 9
SAKA CORE VALUES – DEEPS 10
HSE VISION AND MISSIONS 11
HSE POLICY 12
OPERATING MANAGEMENT SYSTEM FRAMEWORK 12
CONTINUOUS IMPROVEMENT – PDCA PRINCIPLE 17
SAKA ENERGI INDONESIA TEN GOLDEN RULES 18
SAKA ENERGI INDONESIA FIFTEEN HSE ELEMENTS 19
KEY PROCESSES / ACTIVITIES GUIDELINES 20
Element 1 : Management Commitment and Leadership 21
Element 2 : Risk Management 22
Element 3 : Compliance with Legal and Other Requirements 23
Element 4 : Objectives, Targets and Programs 24
Element 5 : People, Training and Behaviors 25
Element 6 : Communication and Consultation 26
Element 7 : Contractors and Services 27
Element 8 : Operations and Maintenance 28
Element 9 : Management of Change (MOC) 29
Element 10 : Emergency Preparedness and Response 30
Element 11 : Incident Reporting and Investigation 31
Element 12 : Documents and Data Control 32
Element 13 : Performance Measurements and Reporting 33
Element 14 : Audit 34
Element 15 : Management Review
ABBREVIATIONS & GLOSSARY

6

OVERVIEW
THE HEALTH, SAFETY & ENVIRONMENTAL
OPERATING MANAGEMENT SYSTEM FRAMEWORK

SEI Values – DEEPS

SEI HSE Vision and Missions

SEI HSE Policy

SEI HSE – Operating Management System
Framework

Level 1 : (15 Elements)

Level 2 : Key Processes & Activities shall be
obtained, developed & implemented to ensure

excellent delivery of HSE OMSF elemental
requirements

Achieving SEI Safe Operations
and Excellent Compliances!!

Notes: Refers to the OGP Report No. 510, June 2014 “Operating System Management Framework -
for controlling risks and delivering high performance services in the oil and gas industry”.

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

SEI CORE VALUES - DEEPS

Drive for Result Committed to be the best-in-class, high value
Excellent Service works for the benefit of stakeholders. Ability
Ethics to consistently focus on achieving specific
Professionalism outcomes aligned with organizational goals and
Safety stakeholder’s expectations.

Delivering best services to stakeholders. Ability
to respond to the stakeholders and anticipate
their needs in a manner that provides satisfaction
for the stakeholders within the resources that
can be made available.

Maintaining ethical business practices throughout
its operations. Ability to be trustworthy and
responsible for acting in an ethical manner with
considerations for the knowledge one has of
the impact and consequences when making a
decision or taking action.

Continuously enhancing competencies and
taking responsibility and accountability for
actions and decisions making. Demonstrate
enthusiasm for and commitment to the position
and accepts responsibility for personal actions.

Always prioritize and act as responsible steward
for the safety, health, environment and the
community at the job sites and out of the job
sites as well.

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HSE VISION AND MISSIONS

VISION and MISSIONS
Health, Safety and Environment

Vision
“Elimination of all incidents and injuries through hazards and risks
management and behavioral-based safety, compliance with all
environmental regulations, and being HSE performance leader in oil and
gas industry”.

Mission
• Continuous efforts to make PT Saka Energi Indonesia and its operational

units compatible with protecting the Health and Safety of PT Saka Energi
Indonesia’s employees and contractors whilst sustaining the quality of
the environment.
• Create an HSE culture where management, employees and contractors
understand and uncompromisingly manage the HSE risks in their
working environment.
• Committed to achieving HSE excellence in all of PT Saka Energi Indonesia
business practices and operations and maintain the achieved HSE
benchmark that is comparable to best-in-industry practice.

Firman A. Yaman
Chief Executive Officer
Date: 20 August 2015

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

HSE POLICY

Health, Safety & Environment Policy

Everybody who works for PT Saka Energi Indonesia and its operational
units, is responsible to implement good HSE standard and practices when
performing daily activities.

HSE is an integral part of our work ethics wherever PT Saka Energi Indonesia
and its Operational Units operate.

We require our leaders at every level of organization to lead the
implementation of established HSE standard and procedures to create a safe,
healthy and environmental friendly working environment.

Our goals are:
• No accidents
• No harm to people
• No damage to the environment
• No damage to the company assets

In our operations, we will:
• Comply with all applicable HSE regulations
• Work with government, business partners, customers, contractors,

community surrounding our operations area and other parties in the oil
and gas industry to ensure that our operations in line with HSE standards
• Report our HSE performance openly, good or poor
• Continuously improve our HSE performance and reduce environmental
impact of our operations
• Recognize those who contribute to improve HSE performance
• Allow anybody working for us to stop unsafe activities if the situation
warrants to do so

Our business plan is to commit for measurable HSE performance
critical to protect people, environment and Company assets.

Jakarta, 20 August 2015

Firman A. Yaman
Chief Executive Officer

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OPERATING MANAGEMENT SYSTEM FRAMEWORK
SEI HSE Operating Management System Framework consists of three
interdependent components, which are:
• SEI Core Values – DEEPS focus on the management principles, in which it is

not sequential and is applied evenly to each Element of SEI HSE Operating
Management System to drive its success. Constant focus on the Safety point
of DEEPS will sustain and improve the HSE Operating Management System.
• PDCA Principle – PDCA (Plan-Do-Check-Act/Adjust) principle is crucial for
an effective and continuous implementation of HSE Operating Management
System.
• The Fifteen HSE Elements – These HSE Elements establish a structure to
organize various elements of SEI HSE Operating Management System.

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

CONTINUOUS IMPROVEMENT – PDCA PRINCIPLE
This document, SEI HSE Operating Management System Framework adopts
the Plan-Do-Check-Act/Adjust principle which has been widely applied as the
continuous improvement process. It starts with a careful planning, followed by
controlled implementation which is monitored for performance effectiveness,
leading to the formation of improvement actions for further planning in a
continuous cycle.
The following paragraphs describe how the four steps can be applied to
systematically manage the Operating Management System:
• Plan – Establish programs objectives, organize appropriate resources, and

engage all parties involved or affected. Risks are identified and measured
to eliminate them, whilst remaining risks are assessed to define appropriate
controls or mitigation.
• Do – Implement and control the programs based on plans and procedures,
including those to manage risks.
• Check – Monitor and measure the programs performances to ensure whether
the plans and procedures are being followed and risk controls/barriers are
effective. The identified problems are checked and corrected for improvement.
• Act/Adjust – Review the programs outcomes and performances and
make adjustment as required. Improvement actions are established and
incorporated into future programs.

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Development of an Operating Management System starts with establishing and
documenting the system, which is then followed by a detailed implementation
process. The policies, guidelines, and procedures that compose the system
needs to be developed to describe how to prepare for and execute programs.
These should be documented, maintained, and improved to ensure company
requirements are clearly defined and met.
At the working level, processed and practices should be developed for day-to-
day operations and individual tasks. Within those activities, the PDCA principle
ensures that risks are managed, e.g. starts with planning the task, implementing
the task, checking the task performance and outcome, and taking action if needed.
The following figure shows how PDCA principle helps manage risks within day-to-
day operations and individual tasks in order to deliver high performance services
in SEI Operational Units.

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

TEN GOLDEN RULES

“SEI 10 Golden Rules summaries our SEI site operating standards which describe
the mandatory requirements for HSE in the workplace. As the 10 Golden Rules do
not cover all operational risks, it is important that you make yourself aware of any
other safety requirements before undertaking and during working. That is why
we have adopted the Golden Rules from OGP-Life Saving Rules which focusing on
the highest risk activities by applying Safe System of Work at SEI site premises to
prevent serious incidents”.

Integrated Assess the need for a formal iCOW (Permit
Control of to Work, Risk Assessment, specific drawing
Work (iCOW) for tasks, emergency procedures) and
fully assess the task to be carried out in
accordance with the procedures and site
working instructions. Pay special precautions
to hot works, confined space entry, energy
isolation, heavy lifting & critical lifting
activities and overriding / disabling safety
critical equipment.

Energy Stored energy sources shall be identified,
Isolation isolated, tested and communicated to
appropriate personnel before starting and
Lifting and proceeding the work.
Hoisting
Use only locally qualified operators and
Working at riggers and appropriate or certified
Heights equipment for all mechanical lifting, hoisting
and rigging operations. For heavy lifting
(equal or more than 20T) and critical lifting
(using 2 cranes), always review the lifting
plan.

Personal fall protection equipment must be
worn when working 6 feet (1.8 meters) or
higher above ground. Using “shock absorber”
when working above 6 meter is a must.
Always apply 3-points-contact principle.

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Confined Confined spaces shall not be entered unless
Space Entry authorized by written permit. Provide
trained standby person(s) and emergency
plan.

Hot Work A written work permit is required for all
hot works outside of designated safe areas.
Always provide trained fire-watch person(s)
and provide proper firefighting equipment.

Excavation All excavation and trenching work greater
and Trenching than 4 feet (1.2 meters) deep requires
written approval. Refer to as-built drawing(s)
as necessary.

Journey Never operated any company leased vehicle
Management on company time without conducting pre-
trip assessment and vehicle inspection;
ensuring driver is properly licensed for
defensive driving, free from fatigue, drugs
and alcohol impairment, avoiding the
use of mobile phone, driving with care at
appropriate speeds for road conditions and
ensuring all passengers fasten the seatbelts.

Control of Risk Assessment/COSHH Assessment must
Substances be carried out (i.e. for toxic, extremely
Hazardous flammable, oxidizing, harmful/irritant,
to Health corrosive, dangerous for environment,
(COSHH) explosive) that can be a potential cause of
harm if inhaled, ingested, and come into
contact through the eyes or skin.

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Simultaneous Interference due to simultaneous operations
Operations activities can increase the risk levels. Do
(SIMOPS) not perform any simultaneous operations
without Risk Assessment and joint
inspection(s), relevant bridging document,
specific coordination meetings must be held
regularly, and supervision by all involved
parties must be proper.

Notes: The SEI TEN Golden Rules and the fundamental requirements refer to “OGP
Report No. 459 - Live Saving Rules” April 2013 Version 2.

In addition, there are some fundamental requirements that SEI and its Operational
Units need to have in place to ensure the effective implementation of the SIE
Golden Rules:

• Work will not be conducted without a pre-job Risk Assessment (RA) and a
safety discussion, such as a toolbox talk, appropriate for the level of risk, and
Permit to Work (if required).

• All personnel will be trained and competent for the work they conduct.

• Personal Protective Equipment (PPE) will be provided and worn in accordance
with the requirements identified by the risk assessment and work-site policies.

• Emergency Response Plans (ERP), developed from a review of potential
emergency scenarios, will be in place with suitable and sufficient resources
available, before commencement of work.

• Everyone is authorized to STOP work if they are in doubt about the safety of
an activity.

• Peer to peer interventions should be encouraged with regard to compliance
with the SEI Goldern Rules.

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FIFTEEN HSE ELEMENTS

1. Management Commitment and Leadership
2. Risk Management
3. Compliance with Legal and Other Requirements
4. Objective, Target and Program
5. People, Training and Behaviours
6. Communication and Consultation
7. Contractors and Services
8. Operations and Maintenance
9. Management of Change
10. Emergency Preparedness and Response
11. Incident Reporting and Investigation
12. Documents and Data Control
13. Performance Measurements and Reporting
14. Audits
15. Management Review

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

KEY PROCESSES / ACTIVITIES GUIDELINES
Guideline to using this HSE & Operations Management Framework Document
Title/Element : What we have to deliver – supported by specific requirements

Who are Involved?

Who will do this?

Key Processes/Activities Key Controls

If these were not implemented, then it would threaten The “controllers” that will indicate whether the key
the delivery of the HSE OMSF elemental requirements processes & activities are functioning correctly

Must Have

Pre-requisites for success

Typical Performance Measures

How success could be measured

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Element 1 : Management Commitment and Leadership

SEI Management will provide visible, strong
and pro-active leadership and commitment to
develop, implement, audit and maintain the HSE
Management System and the relevant culture.
Leaders will be held accountable for accomplishing
this by demonstrating correct HSE behaviors, by
clearly defining HSE roles and responsibilities, by
providing needed resources, and by measuring,
reviewing and continuously improving SEI HSE
performance. Strong leadership in HSE compliance
process is the essence of continuous improvement!

Key Processes / Activities Who are Involved?

• Senior Management Site Visits/HSE • Executives
Tours • Operational Unit General Managers and Line Managers
• Site Management (OIM and Plant Superintendent)
• Site Management regular • Project Managers and Project Management Teams
Walkthrough • Engineers and Supervisors

• HSE Meetings Key Controls
• Accident/Incident Investigation and
• Weekly Management meetings, Town Hall meetings
Reporting System • HSE monthly performance review of each site
• Asset and Project Performance • HSE Management Visit schedule, agenda, reports and action

contract tracking.
• Individual Performance objectives • Safety Meeting agenda, reports and action tracking
• HSE Observation Card reports, database and action tracking
and evaluations • Accident/Incident Investigation summary and action tracking
• Management/Leaders Team
Must Have
meeting
• SEI Annual HSE KPI Targets • HSE Policy
• HSE Promotional Campaigns • All personnel including relevant managers, superintendents,
• Asset Integrity Management
supervisors or their designated person, HSE personnel and
Standard contractors are to be involved in safety meetings, kick-off and
• HSE Inspection and Audits pre-mobilization meetings. They also shall perform HSE tours
• HSE Observation Report and STOP regularly and especially when high risk jobs are being executed
• All personnel especially supervisors must have the ability to
Authority Programs intervene and correct below standard performance
• Implementation of AMDAL-RKL/RPL, • General Manager and Line Managers to visit all sites on a
regular basis and actively involve the workforce in their visits
UKL/UPL and the associated Permits • Clearly defined individual roles and responsibilities
to achieve PROPER Blue rating as • All Line Managers, Superintendents and Supervisors trained in
minimum HSE Leadership
• Developing positive “Safety Culture”
• Training of Behavior Based Safety Typical Performance Measures
(BBS)
• Field/Site Audits as tool to get • Time to respond to workforce queries or action points
feedbacks and improvements: PTW • Number and quality of HSE issues improvement raised based
Audit, JSA Audit, Energy Isolation
Audit, Inhibited Audit, Confined on HSE Walkthrough, HSE Observation Card reports, Incident
Space Entry Audit and Heavy Lift Investigation reports, internal and external HSE Inspections &
Audit. Audits
• Number of Management Visits on Schedule, Number of HSE
Observation card report issued by supervisory level personnel

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 2 : Risk Management

Management of risk is a continuous process
and the cornerstone of all SEI HSE Elements.
SEI will regularly identify the potential hazards
and assess the risks to personnel, asset,
environment and the community associated
with SEI activities through all phases by levels
of management. SEI Management will take
appropriate action to manage the risks and
hence prevent or reduce the impact of potential
accidents or incidents.

Key Processes / Activities Who are Involved?

• Risk Assessment and Risk Profile • Executives
• Control of Work i.e. Permit to Work (PTW) • Operational Unit General Managers and Line Managers
• Task Risk Assessment / Job Safety Analysis • Site Management (OIM and Plant Superintendent)
• Environmental Impact Assessment • Project Managers and Project Management Teams
• Health Risk Assessment • Engineers and Supervisors
• Emergency Response Plans, Medevac
• HAZID (Hazard Identification) Key Controls
• HAZOP (Hazard Operability) review
• FERA (Fire and Explosion Analysis) • Regular review of Risk Assessments
• QRA (Quantitative Risk Assessment) • HSE Action Tracking System
• OIRA (Override/Inhibit Risk Analysis) • QRA, HAZOP, RBI, RCM, Technical Audits, Technical
• FMECA (Failure Mode, Effects, and Cause
Alerts, PTW
Analysis)
• SIL (Safety Integrity Level) Must Have
• LOPA (Layer of Protection Analysis
• ORM (Operational Risk Management) • Competent person to carry out Risk Assessment
• Asset Integrity Management • Risk study workshops and report
• RACI (Responsible, Accountable, Consulted, • Risk Registers
• Overall awareness of the need for Risk Assessments
and Informed) • Commitment to reduce risk to ALARP
• RBI (Risk Based Inspections)
• RCM – Reliability Centered Maintenance Typical Performance Measures
• HSE Observation program
• Management of Change (MOC) • All critical activities are covered by proper risk studies
• Project HSE Plans and the Bridging • Closing out of action items stated in the Risk Register
• Number of occurrences to absence of, or poor quality,
Document between Contractor and SEI
• SIMOPS or poor implementation of risk assessments
• Project Kickoff / Pre-mobilization Meetings • Number of incident from high and medium risks project/

and Induction Trainings activities
• Project Peer Reviews • Risk assessment program is done on schedule
• Permit to Work (PTW) and Working

Instruction
• Contractor HSE Plans

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Element 3 : Compliance with Legal and Other Requirements

Legal and Other Requirement Compliance are
achieved by:

• Identify relevant legal and other requirements,
updating them as necessary;

• Identify and consult as appropriate the GOI,
Country or State where SEI has Participating
Interest or has Operatorship, Regulators and
other bodies/organization;

• Evaluate the compliance with legal and other
requirements in the management review.

Key Processes / Activities Who are Involved?

• Ensuring SEI HSE related procedures • Executives
and documents to always refer to the • Sr. Legal Counsel, Legal Counsels
regulations of GOI and Country or State • Operational Unit General Managers and Line Managers
where SEI has Participating Interestor • Site Managements
has Operatorship, and any relevant • Project Managers and Project Management Teams
International Standards
Key Controls
• Obtaining and implementing:
Environmental Permit, AMDAL (RKL/RPL), • To ensure that SEI HSE related procedures and
UKL/UPL, Dumping Permit, Wastewater documents are updated with new issued GOI regulations
Discharged Permit, Hazardous Waste and International Standards
Temporary Storage Permit
• To obtain Environmental Permit and other permits
• Maintaining PROPER rating – Blue rating as • To manage, monitor and report the implementation of
minimum
RKL / RPL, UKL/UPL, Dumping Permit, etc.
• Obtaining and implementing: Explosive
Permit, Underwater Activities Permit, etc. Must Have

• Compliance with SEI Business Ethics Policy • Legal and other regulation compliance register
• Updated database of GOI laws and regulations and

relevant International Standards as main references
• HSE legislation review

Typical Performance Measures

• All SEI HSE and Operation documents refer to the
latest Government laws and regulations and relevant
International Standards

• Achieving PROPER - Blue Rating as minimum
• Compliance Audit of Business Ethics
• Evaluation of compliance with legal and other

requirement is conducted in the management review

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 4 : Objectives, Targets and Programs

• SEI HSE Performance could be achieved
by setting annual KPIs (Key Performance
Indicators) objectives, targets and Program for
each SEI Operational Units;

• The objectives and targets are SMART (Specific,
Measurable, Achievable, Relevant and Time-
based);

• Senior Management to set HSE objectives
within the business planning and budget
process;

• Resources and responsibility are identified;
• Objectives and targets are reviewed regularly,

at least annually in the annual management
review; and
• HSE improvement programs are developed
during the planning and budget processes.

Key Processes / Activities Who are Involved?

• Operational Unit Annual HSE KPI • Executives
Targets • Operational Unit General Managers and Line Managers
• Site Management (OIM and Plant Superintendent)
• Operational Unit HSE Performance • Project Managers and Project Management Teams
Statistic • Engineers and Supervisors

• Number of achievement of Key Controls
objectives against annual HSE KPI
• Regular review and monitoring of HSE KPI Targets HSE in Weekly
• Implementing UKL/UPL and AMDAL Management Meetings, Annual HSE Management review
• Compliance with Ministry of
• HSE Action Tracking System
Environment and Forestry’s to • Monitoring number and quality of HSE issues improvement
Regulations
• Compliance with the local based on HSE Visit/Tours, HSE Observation Card reports, The
government law and regulations Observation report, Accident/Incident Investigation reports,
where SEI has operatorship internal and external HSE Inspections and Audits findings are
• Compliance with related closed out in timely manners
international regulations
• Process and Activities to achieve Must Have
PROPER Blue Rating as minimum
• HSE Observation Card Reporting • HSE Annual Plan and HSE KPI
System • HSE Observation Card Program
• CSMS HSE Audits • HSE Action Tracking Register
• Regular HSE Inspections including • CSMS HSE Audits Program
Hygiene & Sanitation Inspections • Environmental Permit, Environmental Management Plan,

Monitoring and Efforts (UKL/UPL, AMDAL)
• Reporting the implementation of UKL/UPL and AMDAL
• Conduct CSMS Audits by trained and competent personnel
• Management review meeting to communicate and solve any HSE

issue to ensure continuous improvement process is happening

Typical Performance Measures

• The SEI HSE KPI Targets are well achieved and better than
previous years

• Closing out in timely manners all HSE issues / report cards
from HSE Visit/Tours, HSE Observation Card reports, Accident/
Incident Investigation corrective action reports, internal and
external HSE Inspections and Audits

• Percentage of positive report of findings is increasing
significantly

• Achieving PROPER Blue Rating as minimum

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Element 5 : People, Training and Behaviors

• Recruitment, selection, and placement processes
shall be done to ensure that personnel have physical
fitness, competency, training and attitude to carry
out their duties in safe and environmentally accepted
manner;

• New employees, contractors and visiting personnel
are provided with an introduction training, including
review of hazards, mitigation measures and
emergency response procedures;

• Employee and contractor have to be made aware of
their roles in achieving relevant HSE objectives and
targets;

• Key operational personnel are assessed, any areas
of weakness will be encountered by appropriate
trainings, Refresher training is provided periodically;

• Training Matrices and Competence Profiles are
established, and Training Courses are evaluated by
trainees to ensure that expected learning outcomes
are being met.

Key Processes / Activities Who are Involved?

• Individual Development Plan • Executives
• Mandatory Trainings Based on Training • Operational Unit General Managers and Line Managers
• Site Management (OIM and Plant Superintendent)
Matrix • Project Managers and Project Management Teams
• Behavior Based Safety Trainings • Engineers and Supervisors
• HSE Leadership Training • Workforce
• Recruitment/Selection Process
• Medical Check-up (MCU) Programs Key Controls
• Occupational Health and Industrial
• Competency Assurance and Fit to Work Assessment
Hygiene (OH/IH) Programs • Training Needs Analysis
• Health Risk Assessment • Employee Competency Audit
• HSE Induction • Safety Passport System
• iCoW Training
• HSE Observation Card Program Must Have
• Alcohol and Drugs Policy
• Succession Program • Employee Competency Assessment Program
• Job Descriptions Socialization • Training Program Development and Implementation for all

Employees
• Feedback of Performance to all Employees
• HSE Training Procedure
• HSE Training Matrix Based on Roles and Assignments
• Contractor Training Requirements and Assessment

Typical Performance Measures

• Percentage of Identified Training on schedule
• Number of accidents/incidents attributed to competency

issues, number of non-productive days due to health issues
• Number of non-compliances with HSE Training Procedure
• Percentage of staff resigning (based on Exit Interview) and

of staff promoted
• Strong HSE Leadership of Supervisor level and up is

demonstrated, and good “Safety Culture” of the workforce
• Leadership and safety behavior survey to get data of the

effectiveness of the training program

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 6 : Communication and Consultation

SEI will establish an effective and open communication
system on HSE and operation matters. The system shall
be established and maintained for internal and external
interested parties during the carrying out of all SEI
activities.
• Systems are established for the reporting of HSE

performance relevant to objectives and targets and to
promote open communication of HSE information to
employees and relevant external parties;
• Internal communication systems are structured to
promote open two-way communication between
management and employees;
• External communication systems are established
for reviewing and responding to requests for HSE to
request for HSE information from the public and other
external interested parties;
• Documented procedures are established for employee
involvement and consultation on HSE matters.

Key Processes / Activities Who are Involved?

• Toolbox Talks • Executives
• Permit to Work (PTW) Training • Operational Unit General Managers and Line Managers
• Safety meetings and the relevant topics to • Site Management (OIM and Plant Superintendent)
• Project Managers and Project Management Teams
the current operation and project issues • Engineers and Supervisors
• Daily Operations Meeting • Workforce
• Daily Operation and Drilling Meeting
• Weekly Management Meetings Key Controls
• Town-hall meetings
• Management Visits/Tours • Selected Topics for Safety Meeting
• Lunch and Learn events covering HSE • Updated HSE Issue for Management Meeting
• Action Tracking Monitoring
issues
• HSE Observation Card Program Must Have
• HSE Communication and Consultation
• SEI and Operational Unit HSE Plan
Procedure • SEI and Operational Unit HSE Bulletin
• Recommendations Raised from Inspection • SEI and Operational Unit Hub
• HSE Communication and Consultation Procedure
Reports, HSE Observation Card Report, • HSE Observation Card Program
Incident Investigation and Audit Findings • Web-based Reporting System
• CSMS Audit Report

Typical Performance Measures

• Level of close-out of SEI HSE issues
• Time to close-out SEI HSE issues
• Topics for Safety Meeting, Lunch and Learn are fit for

purposes
• Number of Hazards attributed to inadequate

information
• Number of accidents/incidents attributed to inadequate

information
• Number of accidents/incidents due to poor

communication attributed to “below standard” services,
equipment and personnel
• Project HSE KPI targets against achievements

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Element 7 : Contractors and Services

• Project Risk Criteria, clear Scope of Work and Services
Specification, HSE pre-qualification, selection and
retention criteria based on CSMS are established for work
performed by contractors and suppliers categorized
as Medium and High Potential Hazards.The mandatory
CSMS HSE Audit cycle starts with Risk Assessment, P/Q
and followed by Project’s Pre-Job Activities, Work-in
Progress and Final Evaluation;

• HSE requirements and deliverables are clearly stated
in the procurement document, and where necessary,
procedures are established/bridged to ensure contractor
and company activities are coordinated. This interfaces,
include ERP, Medevac, communication and reporting
requirements, are clearly identified;

• Processes are established to provide two way feedback
between the contractor and company such as lesson
learnt, and records of contractor performance are
maintained and taken into account when they are being
considered for future works;

• Suppliers will be selected, inspected and assessed in order to guarantee the compliance of their HSE
Management System with SEI HSE MS and to check that all material and equipment supplied to SEI are
in compliance with HSE established requirements.

Key Processes / Activities Who are Involved?

• Project Risk Profile • Executives
• Contractor Safety Management System • Operational Unit General Managers and Line Managers
• Site Management (OIM and Plant Superintendent)
(CSMS) Process – HSE Requirements • Project Managers and Project Management Teams
• Contractor On-Boarding Process: • Engineers and Supervisors
• Workforce
Contractor Kick-off/Pre-mob Meetings;
HSE Induction Trainings; Safety Meetings; Key Controls
Medical Check-up and Mandatory
Trainings; Contractor Competency • Contractor Competency Assurances, Management Visits
Certificates/Assurances and walk-through, Approved Supplier Listing
• Procurement Procedures
• Contractor HSE Plans (approved by SEI or • Contractor/Supplier CSMS HSE Auditing/Assessment
its HSE Operational Unit) • Contractor HSE Plan Reviews
• SIMOPS • HSE Observation Card Program
• Contractor HSE Performance Reviews –
CSMS HSE Audits Must Have
• Asset Integrity Management Standard
• QA/QC Control Procedures • CSMS – Contractor HSE Requirements
• Equipment specifications, inspections and • Project HSE KPI Targets
certifications by third party • Project HSE Plan
• Project’s Method Statement • Project Bridging Document/SIMOPS Procedure
• Personnel Competency and Equipment Specifications

Typical Performance Measures

• Project HSE KPI targets against achievements
• Number of accidents/incidents attributed to “below

standard” services, equipment and personnel
• Number of Project’s Non-Conformance Report (NCR)
• CSMS Work-in-Progress and Final Evaluation Audits are

done with satisfactory results
• The CSMS audit recommendations are closed-out in

timely manner with good compliance results

25

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 8 : Operations and Maintenance

• Technical and HSE requirements are considered at each
stage in the design, construction and modification of any
facility, potential hazards are identified and HSE risks
evaluated using appropriate risk assessment tools and
systems or processed are established to ensure that HSE
risks are considered when facilities are being designed;

• Project management systems and procedures
addressing technical integrity and HSE accountabilities
are documented and well understood, whilst quality
assurance process are established to ensure required
standard are met;

• Deviations from design standards are identified and
managed at an appropriate level, with the reasons
documented and retained;

• Operational, maintenance and HSE expertise are
integrated early in the project/design to ensure
experience and lesson learnt from other projects/
operations are applied;

• Pre- and post- start up reviews are carried out and documented on all newly installed or modified
equipment;

• Key operating parameters are established and regularly monitored to ensure that they are within
acceptable limits, and clearly defined: start up, operating, maintenance and shutdown procedures;
maintenance management and quality assurance programs are developed and maintained;

• Risks introduced by simultaneous operations are assessed and managed; and decommissioning,
remediation and restoration plans are established using risk-based studies for end-of-life equipment/
facilities.

Key Processes / Activities Who are Involved?

• Project HSE Management Plan • Executives
• Control of Work i.e. Permit to Work • Operational Unit General Managers and Line Managers
• EIA, QRA, FERA, and MOC • Site Management (OIM and Plant Superintendent)
• Asset Integrity Management System (AIMS) • Project Managers and Project Management Teams
• HAZOPs (Hazard Operability), Peer Reviews, • Engineers and Supervisors

Design Criteria, Risk Profile Key Controls
• SIMOPS
• HSE Compliance Matrix • EIA, QRA, OIRA, FERA, MOC, HAZOP, RBI and RCM
• Engineering Procedures • QA/QC Procedures Implementation Control, Operability
• Risk Assessment, OIRA
• RACI, RBI and RCM and Maintainability Studies
• Documentation Control • Maintenance Management System (MMS)
• Procurement Procedures
• Equipment Delivery Procedures Must Have
• Action Tracking (project & operation)
• Operability and Maintainability Studies • All changes are screened for risks and reflected in the
• Pre-Start up Reviews Basis of Design and in the Modification or Revamping
• Operational Risk Management (ORM). Designs for all facilities
• Pre-com/Commissioning Procedures
• Project’s Method Statement Typical Performance Measures
• Processing and Obtaining Government
• Level of close-out of SEI HSE issues
Regulation for Facility Integrity Compliances • Number of accidents/incidents attributed to a project/
such as Migas’ SKKP, SKPP and SKPI
modification
• Number of unplanned shutdown that is considered

more than normal operation
• Timely close-out of Project Safety Review and high risk

findings; Action and other relevant HSE assessments
• Migas’ SKKP, SKPP and SKPI certificates are obtained

and valid

26

Element 9 : Management of Change (MOC)

• HSE responsibilities and other impacts of temporary
and permanent changes are formally assessed,
managed, documented and approved;

• Changes in legal and regulatory requirements,
technical codes and knowledge of health and
environmental effects are tracked and appropriate
changes implemented;

• The effects of changes on the workforce/
organization are evaluated and an appropriate
level of information/training provided to ensure the
change is managed effectively;

• The original scope and duration of temporary
changes are not exceeded without a thorough
review and approval by an appropriate level of
management.

Key Processes / Activities Who are Involved?

• Management of Change Procedures • Executives
• Risk Assessments and Reviews • Operational Unit General Managers and Line Managers
• Quantitative Risk Assessments (QRA)/ • Site Management (OIM and Plant Superintendent)
• Project Managers and Project Management Teams
Major Hazards Assessments (MHA) • Engineers and Supervisors
• Environmental Impact Assessment (EIA)
• Override/Inhibit Risk Assessment (OIRA) Key Controls
• HAZOP
• Asset Integrity Management Standard • Management of Change Procedures
• Self-Regulation Procedure • Self-Regulation System
• Action Tracking System • Action Tracking System
• Project Peer Reviews
• HSE Compliance Matrix Must Have

• Management of Change Procedure
• HSE Risk Management
• Basis of Design for all Facilities
• Regulation Compliances Register
• Up to Date Documentations

Typical Performance Measures

• Number of incident post change
• Number of modification after the change
• Number of MOC close-out overdue

27

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 10 : Emergency Preparedness and Response

• SEI shall establish and maintain emergency response
plans to identify and respond to potential accidents
and emergency situation and to minimize impact to
personnel, community or environment;

• Emergency management plans identify and describe
equipment, facilities and personnel needed for
emergency response;

• All personnel who have a role to play in an emergency
response are informed, fit and trained;

• Periodic drills and exercises are conducted to test
emergency management plans;

• Reviews are conducted after an emergency has
occurred.

Key Processes/Activities Who are Involved?

• Emergency Management Plans • Executives
• Emergency Response Plans • Operational Unit General Managers and Line Managers
• Emergency Responses Training Program • Site Management (OIM and Plant Superintendent)
• Exercise and Drill Schedules • Project Managers and Project Management Teams
• Competence Assurance • Engineers and Supervisors
• Medical Evacuation/Contingency Plan • Workforce
• On-Scene Commander Assessments
• Oil Spill Contingency Plans Key Controls
• Typhoon Response Plan
• Critical Safety Equipment maintenance • Self-Regulation System
• Exercise and Drill Schedules
program • Action Tracking System
• Action Tracking System • Emergency Response System Audits
• Updating EMT Duty Roster • Emergency Response Trainings

Must Have

• Emergency Management Plans
• Emergency Response Plans
• Competent Emergency Response Teams and On-Scene

Commanders (in command and control)
• Full range of risks are identified
• Workforce fully involved in drill and exercises
• Call Out System

Typical Performance Measures

• Number of action items after an emergency and
exercises, and closing out the action in timely manners

• Emergency response training program and drills on
schedule

28

Element 11 : Incident Reporting and Investigation

• All incidents and accidents, near misses are reported to
the appropriate level of SEI management and investigated
to prevent recurrence and improve SEI performance. A
reporting system of all main data regarding incidents and
accidents shall be designed and implemented;

• Relevant authorities are notified and reports made
available as appropriate;

• Incident investigation are recorded and documented,
and the recommendations are closed out in timely
manners/as scheduled;

• Responsibilities for the completion of corrective and
preventive actions are clearly established and review;

• Information and conclusions from incident investigations
are analyzed to determine if any trends exist;

• Lesson learnt from incident investigations are
disseminated to all workforces.

Key Processes / Activities Who are Involved?

• Accident/Incident Investigation and • Executives
Reporting Procedures and Implementation • Operational Unit General Managers and Line Managers
• Site Management (OIM and Plant Superintendent)
• Accident/Incident Investigation Training • Project Managers and Project Management Teams
• Updated Database of Accident/Incident • Engineers and Supervisors
• Workforce
Investigation and Reporting
• Accident/Incident Lesson Learnt Key Controls
• HSE Observation Card Reporting System
• Asset Integrity Management System • HSE Performance Reviews System
• Risk Assessments • Self-Regulation System
• Action Tracking System • Action Tracking System
• HSE Performance Reviews
• Interfacing report with SKK Migas, MIGAS, Must Have

Partners, PGN and other Stakeholders • Trained management in Accident/Incident Investigation
and Reporting Procedures

• HSE Observation Card Program
• Awareness of all workforce of reporting requirements

and their obligation and involvement in reporting and
investigation process
• Communication system for lesson learnt
• Web-based reporting system

Typical Performance Measures

• Number of recurring incidents
• Percentage close-out of recommended items in timely

manners or as scheduled

29

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 12 : Documents and Data Control

• Systems are established and responsibilities allocated
for the management and control of critical documents
and the critical documents and records are reviewed
at specified intervals;

• Record are maintained to be used to demonstrate
compliance with relevant regulations;

• Documented processes exist for the retention of
documents and records and obsolete documents and
records are clearly identified and removed;

• Appropriate data disaster recovery plans are
established and maintained;

• Systems are established and maintained for the
management and control of procedures and other
documentation;

• Responsibilities for document development, review,
approval and control are identified and documents
developed in support of HSE MS are approved at a
management level.

Key Processes / Activities Who are Involved?

• Document Control System • Executives
• Management of Change • Operational Unit General Managers and Line Managers
• HSE Documentation and Record Control • Site Management (OIM and Plant Superintendent)
• Project Managers and Project Management Teams
Procedure • Engineers and Supervisors
• HSE Compliance Matrix
• Design Criteria Key Controls
• Asset Integrity Management System
• OH/IH Programs • Review of Legislative Requirement
• Project Management System • Audit of Document Control System
• Technical Document Specifications • Periodic Review and updates of Standards
• Management Verification Process • Procedures, Best Practices and Guidelines
• Clean Desk Policy

Must Have

• Reliable and timely update of information
• Complete updated inventory of Controlled Documents

Typical Performance Measures

• Number of Hazard attributed to inadequate information
• Number of Accidents/Incidents attributed to inadequate

information
• Time to update documentation from change request

date

30

Element 13 : Performance Measurements and Reporting

• HSE performance indicators are established, approved,
communicated and understood throughout the
organization;

• Equipment used for monitoring and measurement
purposes is calibrated;

• HSE performance is measured and reported against
leading and lagging indicators;

• Systems are established for the reporting of HSE
performance relevant to objectives and targets;

• Documented procedures are established for employee
involvement and consultation on HSE matters.

Key Processes / Activities Who are Involved?

• HSE Performance Measurement and • Executives
Monitoring System • Operational Unit General Managers and Line Managers
• Site Management (OIM and Plant Superintendent)
• Annual HSE KPI Targets • Project Managers and Project Management Teams
• Asset Performance Contract • Engineers and Supervisors
• Self-Regulation Process
• Lesson Learnt Key Controls
• Management Weekly Meeting
• Management Team Meetings • Self-regulation process, HSE Action Tracking System
• Senior Management Visits/HSE Tours • Area Inspection Schedule, Report and Action Tracking
• HSE Observation Card Program • Management Visits Schedule, Reports and Action
• HSE Meetings
• HSE Plan Tracking
• Management of Change (MOC) • Internal and External Audits
• Internal self-assessments and external
Must Have
assessments
• RACI, Peer Reviews • HSE Performance Measurement and Reporting
• CSMS Audits Procedures
• SEI Internal and External Audits
• Periodic Management Reviews
• Management trained in HSE leadership
• Auditor Competency

Typical Performance Measures

• HSE Key Performance Indicators, actual against target
• Number of action items raised from audits etc.
• Number of action items followed up as agreed time
• Number of repeat findings; Number of incidents where

the causes have been previously covered by an audit,
etc.
• Compliance with self-regulation program

31

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Element 14 : Audit

• Audits are planned and scheduled based on the
organization’s activities, level of risk and results
of previous audit and are conducted to determine
conformance with SEI HSE MS requirements, as well
as compliance with regulations and appropriate
standards;

• Reports are prepared by auditors and distributed to
appropriate management personnel who in turn are
responsible for addressing all non-conformances;

• Actions arising out of audit no-conformances and
observations are prioritized, tracked and used to
systematically improve SEI HSE MS.

Key Processes / Activities Who are Involved?

• HSE Audit • Executives
• Preventive and Corrective Control System • Operational Unit General Managers and Line Managers
• Action Tracking System • Site Management (OIM and Plant Superintendent)
• HSE Performance Reviews • Project Managers and Project Management Teams
• Engineers and Supervisors

Key Controls

• Tracking System and HSE Tracking system
• Internal Audit Schedule, Report and Action Tracking
• External Audits

Must Have

• HSE Audit, Preventive and Corrective Control Procedure
• CSMS Guideline
• Trained and Certified Internal and External Auditors
• Trained CSMS HSE Internal Auditors
• Action Tracking System

Typical Performance Measures

• Number of incompliances with standard and procedures
• Number of Hazards and Accidents/Incidents attributed

to incompliances
• Audit findings close out effectiveness
• Continuous Improvements are occurring, and no

repetitive findings

32

Element 15 : Management Review

• Management reviews are conducted to assess
progress against improvement at these levels: SEI, the
Operational Units and Functional Departments;

• Periodic management reviews are conducted at
these different levels of the organization to ensure
the continued effectiveness of HSE MS and the
assessment includes a review of performance
against objective and targets. This will involve both
internal self-assessment and appropriate external
assessment;

• Opportunities for further improvements are identified
and improvements plans revised and updated, and
scheduling of management reviews synchronized with
the annual business review process.

Key Processes / Activities Who are Involved?

• Operational Unit Performance Review • Executives
• Regulation Compliances Status • Operational Unit General Managers and Line Managers
• Self-Regulation Process • Site Management (OIM and Plant Superintendent)
• Action Tracking System • Project Managers and Project Management Teams
• HSE KPI Performance Reviews • Engineers and Supervisors
• Lesson Learnt
• Weekly Management Meetings Key Controls
• Management Visits/Tours
• HSE Observation Card • Regulation compliances updated status
• Safety Meetings and Town-Hall Meetings • Self-Regulation Process
• SEI and Project HSE Plans • HSE Action Tracking System
• Management of Change • Area Inspection Schedule, Report and Action Tracking
• Peer Reviews • Management Visits Schedule, Report and Action
• CSMS Audits
• SEI Internal and External Audits Tracking
• Internal and External Audits

Must Have

• Regulation Compliances Register
• Periodic Performance Reviews
• SEI Management - down to Supervisors - Trained in HSE

Leadership
• Competent Internal Auditors and Certified External

Auditors

Typical Performance Measures

• Number of action items raised from audits, inspections,
hazard report cards; Number of repeat findings

• Action items close out effectiveness
• Number of incidents where the causes have been

previously covered by an audit, inspection, HSE
Observation Card reports etc.
• Compliance with the agreed self-regulation plan

33

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

ABBREVIATIONS & GLOSSARY

Accountability The ultimate responsibility for an area of authority
defined by the individual’s Job Description, and will
include authority delegated to a subordinate albeit
temporary or permanent.

Responsibility The actions, activities or assets for which
a person is held liable and for which he/she alone must
account.

Accident Term to define an unplanned event or chain of events
that results in harm to people (injury), damage to
property or the environment or loss of process.

Action Tracking In this document, Action Tracking System or Corrective
System Action Tracking System is a web-based database used
to enter / register, monitor / track and report the status
ofHSE corrective actions developed from incident
investigation recommendations, HSE Observation report
cards, inspection and audit reports, etc.

AIMS Asset Integrity Management Systems (AIMS). The system
outlines the ability of an asset to perform its required
function effectively and efficiently whilst protecting
health, safety and the environment and the means
of ensuring that the people, systems, processes, and
resources that deliver integrity are in place, in use and
will perform when required over the whole lifecycle of
the asset. The AIMS should also endeavor to maintain
the asset in a fit-for-service condition while extending
its remaining life in the most reliable, safe, and cost-
effective manner. Inspections, auditing / assurance
and overall quality processes are just some of the tools
designed to make an integrity management system
effective.

ALARP As Low As Reasonably Applicable. The ALARP principle
is that the residual risk shall be as low as reasonably
34 practicable. The term “reasonably practicable” means
that a risk is reduced to levels such that further
reduction measures would be so disproportionate to
the probability and consequences of occurrence that it
would be objectively unreasonable to implement them.
Reasonably practicable involves weighing a risk against

AMDAL the trouble, time and money needed to control it. Thus,
Bridging ALARP describes the level to which management expects
Document to see workplace risks controlled.

Clean Desk Analisis Mengenai Dampak Lingkungan (Environmental
Policy Impact Assessment). See EIA below.
CSMS
“Bridging Document” or “Interface Document” shall
EIA mean a written document which defines how two or
more safety management systems co-exist to allow co-
ERP operation and co-ordination on matters of health, safety
and environmental protection between different parties
(usually the Company and the Contractor).

A clean desk policy is an important tool to ensure that all
sensitive / confidential materials are removed from an
end user workspace and locked away when the items are
not in use or an employee leaves his/her workstation.

Contractor Safety Management System, one of HSE
Management System’s tools to control Contractor’s level
of compliance with the contractual HSE requirements. A
CSMS cycle starts with Risk Assessment of the project’s
scope of works, Contractor Pre-qualification, followed by
Project’s Pre-job Activities, Work-in-Progresses and Final
Evaluation audits.

Environmental Impact Assessment (AMDAL); is the
formal process used to predict the environmental
consequences (positive or negative) of a plan, policy,
program, or project prior to the decision to move forward
with the proposed action. Formal impact assessments
are governed by rules of administrative procedure
regarding public participation and documentation of
decision making, and may be subject to judicial review.
An impact assessment may propose measures to adjust
impacts to acceptable levels or to investigate new
technological solutions.

Emergency Response Plan, is a pre-established plan to
mitigate an unusual situation which has the potential for
harm, which incorporates the best use of local as well as
remote facilities and resources.

35

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

FERA Fire & Explosion Risk Analysis. It is a tool to systematically
identify all credible sources loss of containment of a
GOI hydrocarbon/combustible fluid from a process and
GM assesses the physical consequences of each release.
Hazard
FERA Combines the likelihood of release scenarios with
HSE Observation the predicted consequences and develops a risk profile,
Card Program thus enabling the identification of design improvements
HAZID that can reduce the risks to a level that is tolerable. It
is important to evaluate the risk of fire and explosion
HAZOP together, as potential fire and explosions are coupled—
risk reduction measures taken to reduce one impact
36 may worsen the other.

Government of Indonesia

General Manager

A source of danger which if not adequately controlled
or if suitable precautions are not taken could create
an unsafe condition with potential to harm people,
property or the environment; or the intrinsic property
of a substance, equipment or physical situation with
potential to cause harm.

A program to observe and report using observation
report card as tool and to close out hazards in timely
manners to prevent them from causing injuries,
environmental incidents, asset damage, etc.

Hazard Identification study is the method of identifying
hazards to prevent and reduce any adverse impact
that could cause injury to personnel, damage or loss
of property, environment and production, or become a
liability. HAZID is a component of risk assessment and
management. It is used to determine the adverse effects
of exposure to hazards and plan necessary actions to
mitigate such risks.

Hazard and Operability Study, is a structured and
systematic technique for system examination and risk
management. This technique is applied for a planned
or existing process or operation in order to identify and

HSE MS evaluate problems that may represent risks to personnel
or equipment, or prevent efficient operation. It is carried
HSE Plan out by a suitable experienced multi-disciplinary team
HIPO (HAZOP team) during a set of meetings.
iCoW
Health, Safety and Environmental Management System.
HSE MS is the framework of processes and procedures
used to ensure that an organization can fulfill all tasks
required to achieve its objectives related to occupational
health & safety and environmental protection. Adopting
PDCA (Plan-Do-Check-Act) principle, HSE MS is managed
by: Establishing a Policy; Planning to ensure the success
of the system; Implementing programs, procedures,
work instructions etc.; Monitoring and Measuring system
performances; Checking and Correcting the identified
problems and Periodically Reviewing the whole system
by Top Management.

A description of the means of achieving health,
safety and environmental objectives. HSE plan is a
plan for a workplace that is designed in accordance
with the applicable requirements covering the roles
and responsibilities of the staff, and the emergency
action plan etc. it is designed to serve and protect the
individuals affected by the organization in all matters of
health, well being and safety.

High Potential near-miss incident. A hazardous event
which, under slightly different circumstances, could
have caused serious injury (Fatal or LTI) and/or highly
costly damage to assets and to the environment.

iCoW (Integrated Control of Work) is integral part of
SEI’s HSE Management System in managing the “work
risk” associated with operational activities to ensure
the system is working safe and effective. The iCoW is
also a system which requires written and documented
procedures, competent and authorized personnel, set of
rules and business process, and an inherent continuous
improvement process with implementing the five (5) key
principles of Plan the Work, Assess and Manage the Risk,
Control the Work, Stop the Job If Unsafe, and Learning for
Improvement.

37

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Incident A general term to define an unplanned event or chain
JSA of events which has caused or could have caused injury,
damage to assets and/or to the environment. Incidents
KPI include accidents and near misses.
Kickoff
Meeting Job Safety Analysis, is a safety tool that can be used to
LOPA identify, define and control hazards associated with a
certain process, job, or procedure in the work site. It is
LOTO a systematic examination and documentation of every
LTI task within each job to identify health and safety hazards,
Management/ and the steps to control / reduce / manage those risks.
Team Leaders
Key Performance Indicators, help SEI defines and
38 measure progress towards its goals. Key Performance
Indicators are those measurements.

The first meeting with the project team and the client of
the project. This meeting would follow definition of the
base elements for the project and other project planning
activities. It also mentions the risks and issues involved,
particularly those that may affect project schedules.

Layer of protection analysis (LOPA) is a simplified method
of risk assessment that provides the much-needed
middle ground between a qualitative process hazard
analysis and a traditional, expensive quantitative risk
analysis. Beginning with an identified accident scenario,
LOPA uses simplifying rules to evaluate initiating
event frequency, independent layers of protection,
and consequences to provide an order-of-magnitude
estimate of risk.

Lock Out / Tag Out. LOTO is a documented system of
barriers and notices that prevents the accidental or
inadvertent operation of equipment whilst it is being
maintained or inspected.

Lost Time Injury: Any work related injury or illness that
prevent persons perform any work the day after the
accident.

Management Team of SEI’s Operational Units Managers.

MCU Medical Check Up.
Medevac
Method The evacuation for medical reasons from the work
Statement location to a hospital.
MOC
A series of tasks which combine together to achieve a
MTC project or maintenance activity.

MSDS Management of Change; is the process, tools and
techniques to manage the people-side of change of an
NCR organization in order to achieve the required business
outcome. The Management of Change incorporates
the SEI organizational tools that can be utilized to help
individuals through a series of steps to make successful
personal transitions resulting in the adoption and
realization of change.

Medical Treatment Case. Any work-related injury
(infected wounds, application of stitches, embedded
foreign bodies in the eyes, second and third degree
burns, etc.) that involves neither Lost Workdays nor
Restricted Workdays but which requires repeated
treatment by, or under the specific order of a physician
or could be considered as being within the province of
a physician. Medical treatment does not include first
aid even if this is provided by a physician or registered
professional personnel.

Material Safety Data Sheet. A sheet issued by
manufacturer of chemical substances that sets out the
hazards likely to be encountered by those who come into
contact with the substance. The sheet may also identify
recovery procedures following adverse exposure.

Non-Conformance Report; A Non-Conformance Report
documents the details of a non-conformance identified
in a quality audit or other process review. The objective of
the report is to make an unambiguous, defensible, clear
and concise definition of the problem so that corrective
action can and will be initiated by Management.

39

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Near-miss A near-miss case is Hazardous Event/Incident which,
OIM under slightly different circumstances, could have
Occupational caused an incident affecting even people, environment
Illness or company assets.
OGP
Offshore Installation Manager.
OH and IH
OIRA Abnormal health condition or disorder (physical or
Operational mental) that is caused or aggravated by exposure to
Unit environmental factors associated with employment,
including chemical, physical, biological and ergonomic
40 factors.

The International Association of Oil & Gas Producers
(OGP). It is the voice of the global upstream industry.
OGP Members produce more than half of the world’s oil
and over a third of its gas.

OGP serve industry regulators as a global partner for
improving safety, environmental and social performance.
OGP also act as a uniquely upstream forum in which
the Members identify and share knowledge and good
practices to achieve improvements in health, safety, the
environment, security and social responsibility.

This document “SEI HSE Operating Management System
Framework” refers to the OGP Report No. 510, June 2014
“Operating System Management Framework - for controlling
risks and delivering high performance services in the oil and
gas industry”.

Occupational Health and Industrial Hygiene.

Override/Inhibit Risk Assessment.

A subsidiary of PT Saka Energi Indonesia (Corporation)
that operates under control of the Corporation. An
operational or operating unit has its own assets
and liabilities and its own management structure.
Saka Indonesia Pangkah Limited (SIPL) is one of the
operational units of the Corporation.

ORM Operational Risk Management (ORM). This term is
defined as a continual cyclic process which includes risk
Participating assessment, risk decision making, and implementation
Interest of risk controls, which results in acceptance, mitigation,
PQ or avoidance of risk. ORM is the oversight of operational
risk, including the risk of loss resulting from inadequate
Procedure or failed internal processes and systems; human factors;
PROPER or external events.

The proportion of exploration and production costs each
party will bear and the proportion of production each
party will receive, as set out in an Operating Agreement.

Pre-qualification in regards of HSE and a phase of CSMS.
The Contractor HSE Management System and Plan
including the HSE statistic are to be evaluated using
standard criteria and standard passing grade. Copies of
relevant supporting documents are to be submitted as
evidences.

A detailed set of instructions to be followed in the
carrying out of a task.

PROPER stands for Program Penilaian Peringkat Kinerja
Perusahaan dalam Pengelolaan Lingkungan. It is used as
Environmental Compliance Rating of a company rated
by Ministry of Environment and Forestry. The rating is
awarded in 5 categories: Gold, Green, Blue, Red and Black.

Gold: Awarded to businesses / activities that
have successfully perform environmental
management effort and achieved satisfactory
result.

Green: Awarded to businesses / activities that have
perform environmental management effort and
achieve better result set forth in the regulation
requirements.

Blue: Awarded to businesses / activities that have
perform environmental management effort,
and have achieved the minimum standard of
regulation requirements.

41

HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Red: Warning to businesses / activities that have
performed environmental management efforts,
but have only achieved a part of the minimum
standard of the requirements as regulated.

Black: Strong Warning to businesses / activities that
significantly do not perform environmental
management efforts.

PTW Permit to Work, is a documented procedure that
QA/QC authorizes certain people to carry out work within a
specific time frame. It set out the precautions required to
QRA control works such as maintenance activities, hot works,
RA confined space entry, energy isolations, heavy lifting etc.
RACI in oil & gas plant operation to prevent incident.

42 Quality Assurance / Quality Control. A QA/QC professional
contractor assures that the project material and products
consistently follow statutory / government regulations
and meet industry standards by developing and enforcing
good manufacturing practice systems; validating
processes; and providing documentation; and maintains
quality standards by approving incoming materials, in-
process production and ȴnished products; and recording
quality results.

Quantitative Risk Assessment. QRA is a formalized
specialist method and process for calculating human,
environmental, employee and public risk levels for
comparison with regulatory risk criteria.

Risk Assessment: a careful consideration by competent
people of the hazards associated with the task. The
potential effect of each hazard, how severe it might be
and the likelihood of it occurring, should be considered
to determine the effort required to make the work site
as reasonably practicable (ALARP).

Acronyms derived from the four key responsibilities most
typically used (Responsible, Accountable, Consulted
& Informed). Responsible - Those who do the work to
achieve the task. Accountable (also approver or final
approving authority) - The one ultimately answerable for

RACI Matrix the correct and thorough completion of the deliverable
RBI or task, and the one who delegates the work to those
responsible. In other words, an accountable must sign
RCM off (approve) work that responsible provides. There
must be only one accountable specified for each task
or deliverable. Consulted (sometimes counsel) - Those
whose opinions are sought, typically subject matter
experts; and with whom there is two-way communication.
Informed -Those who are kept up-to-date on progress,
often only on completion of the task or deliverable; and
with whom there is just one-way communication.

Responsible, Accountable, Consulted and Informed.
It is a responsibility assignment matrix, describes
the participation by various roles in completing tasks
or deliverables for a project or business process. It is
especially useful in clarifying roles and responsibilities in
cross-functional / departmental projects and processes.

Risk Based Inspection which is an advanced business
process used to examine and determine inspection
technique for pressurized equipment such as pressure
vessels, heat exchangers and pressure piping in
industrial plants based on the risk rank. It examines the
HSE and business risk of ‘active’ and ‘potential’ Damage
Mechanisms (DMs) to assess and rank failure probability
and consequence. This ranking is used to optimize
inspection intervals, inspection method and inspection
scope based on site-acceptable risk levels and operating
limits, while mitigating risks as appropriate. RBI analysis
can be qualitative, quantitative or semi-quantitative in
nature.

Reliability Centered Maintenance is a process to
ensure that the operation systems especially the
critical equipment such as turbo machineries and
rotating equipment continue to do what their users
(Plant Superintendent & OIM and their Teams) require
in regards of their reliability and availability and in
the present operating context/ operating envelope.
It is generally used to achieve improvements in fields
such as the establishment of safe minimum levels of
maintenance, establishing preventive maintenance

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

Recordable schedule and establishing spare part availability.
Injury Successful implementation of RCM will lead to increase
Risk in cost effectiveness, reliability, machine Uptime, and
RKL/RPL a greater understanding of the level of risk that the
organization is managing.
RM
RWC This includes any “work related incident” where a person
is fatally injured or becomes fatally ill or requires
Safety treatment from a professional physician or paramedic.
Behavior
The likelihood of harm being realized. Risk Assessment is
Safety Culture the process of identifying hazards, evaluating the risks
and specifying control measures.
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RKL/RPL (Environmental Management and Monitoring
Plans) is part of the Environment Impact Assessment
(EIA) studies (AMDAL). It is a commitment of the company
to manage and monitor the environmental impacts
resulting from the business and / or planned activities.

Risk Management: a management system which eliminates
or mitigates the threat from hazards.

Restricted Work Case: Any work-related injury other
than a fatality or lost work day case which results in a
person being unfit for full performance of the regular
job on any day after the occupational injury. An injury
can be classified as WRC only upon written non objection
statement of the injured person. Where no meaningful
restricted work is being performed, the incident should
be recorded as a lost time injury (LTI).

Safety Behavior or Behavior Based Safety is a process
that creates a safety partnership between management
and employees that continually focuses people’s
attentions and actions on theirs, and others, daily safety
behavior.

Safety Culture is the way safety is perceived, valued
and prioritized in an organization. It reflects the real
commitment to safety at all levels in the organization.
It has also been described as “how an organization
behaves when no one is watching”. Safety Culture can
therefore be positive, negative or neutral. Its essence is

in what people believe about the importance of safety,
including what they think their peers, superiors and
leaders really believe about safety as a priority.

Safety Is defined as “The process of defining the desired state,
Leadership setting up the team to succeed, and engaging in the
Safety discretionary efforts that drive the safety value,” which
Meeting broadly boils down to “engaging in and maintaining
behaviors that help others achieve our safety goals”.
SEI
SIL A refresher tool, and keep employees abreast of changes
in the regulations, safety procedures, equipment,
SIMOPS personal protective equipment (PPE), recommendations
from incident investigation, serious hazard findings
SKKP and their close-out status; the job assignments and
responsibilities. Without constant reminders about
safety, employees tend to forget, get sloppy, take risks,
and have accidents.

PT Saka Energi Indonesia.

Safety Integrity Level is defined as a relative level of risk-
reduction provided by a safety function, or to specify
a target level of risk reduction. In simple terms, SIL is
a measurement of performance required for a safety
instrumented function (SIF).

Simultaneous operations. Two or more different activities
(i.e. drilling and production operation activities) that are
occurring close enough to each other that there is a risk
of interference, clashing, or risk transfer, for example:
when executing drilling activities on well platform. The
procedure outlines the processes and general plan for
conducting simultaneous operations (SIMOPS) so as to
provide for the safety of personnel and protection of the
environment and equipment.

Surat Kelayakan Konstruksi Platform - a platform
construction worthiness certificate issued by Directorate
General MIGAS. This certificate is issued after a technical
inspection of an existing platform or a platform which
is being constructed has been done. This certificate
issuance refers to Minister of Mining and Energy
Regulation PP. NO 05/P/M/PERTAMBANGAN/1977.

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HSE OPERATING MANAGEMENT SYSTEM FRAMEWORK

SKPP The objective of SKKP certification is to ensure that the
design, engineering calculation, platform installation
SKPI meet the required standards and codes and the relevant
SOW government regulations results in that the platform is
Task safe and can be operated safely.
TRA
Toolbox Surat Kelayakan Penggunaan Peralatan - a worthiness
certificate for operating the equipment in oil & gas
plant or production platform issued by Directorate
General MIGAS. This SKPP certificate issuance refers
to Directorate General MIGAS Regulation No: 84.K/38/
DJM/1998.

Surat Kelayakan Penggunaan Instalasi - a worthiness
certificate for operating the facilities of oil & gas plant
or production platform issued by Directorate General
MIGAS. This SKPI certificate issuance refers to Directorate
General MIGAS Regulation No: 84.K/38/DJM/1998.

Scope of Work - The division of work to be performed
under a contract or subcontract in the completion of
a project, typically broken out into specific tasks with
deadlines.

A discrete work activity.

Task Risk Assessment, is the identification, evaluation,
and estimation of the levels of risks involved in a
situation, their comparison against benchmarks or
standards, and determination of an acceptable level of
risk.

Toolbox Talks / Meetings are a way for information to
be provided to workers, and for workers to have their
say about hazards / controls, incidents / accidents, work
processes and company procedures. SEI provides its
staff with opportunities to participate in safety activities.

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UKL/UPL Upaya Pengelolaan Lingkungan / Upaya Pemantauan
Waste Lingkungan (Environmental Management and
Environmental Monitoring Efforts) is one of
environmental studies - and is NOT the mandatory
AMDAL / EIA - of activities that are going to be performed
and will not have a significant impact on the environment.
The UKL / UPL document is necessary for the decision-
making process to get Environmental permit of the
planned of activities. Note: To determine the type of
document (requiring mandatory AMDAL or UKL / UPL)
is determined based on the magnitude scale activities.
The scale of activities required EIA refers to Permen LH
No. 5/ 2012 (Minister of Environmental Regulation LH
No. 5/2012).

Any material (solid, liquid or gas), which is introduced
into work location as a product of the work but which
fulfils no further useful purpose at that location. “Waste
Management” is a system to achieve reduction, re-use,
recycling and responsible disposal of waste materials.

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