SAFETY TRENDS AND THE CHALLENGES OF UPSTREAM OIL & GAS INDUSTRIES OCCUPATIONAL HEALTH & SAFETY TRENDS AND THE CHALLENGES OF UPSTREAM OIL & GAS INDUSTRIES IN INDONESIA Bagus B. Edvantoro Head of Division(VP) for Operation Support & HSE Special Task Force for Upstream Oil & Gas Business Activity (SKK MIGAS) 2017

Resume Name : Bagus B. Edvantoro Post : Head of Division (VP) for Operation Support & HSE – SKK MIGAS 3. Education: - BSc. : Microbiology, Science Faculty, University of Indonesia - MSc. : Natural Resources Management (Soil Science), Adelaide University Certification: - NEBOSH International General Certificate - NEBOSH Operation Safety Oil & Gas - IOSH Managing Safely - CIEH Fire Assessment & Management - Floating Drilling Inspection (Lloyd Register) - T-BOSIET - IMO Level 1 Major Training: - EIA Evaluator - Hazardous Waste Management - Industrial Inspection - HSE Management of upstream oil & gas - Fire Fighting Texas A&M University - Etc.

Flowchart Oil & Gas Business Industry in Indonesia SKK MIGAS UPSTREAM EXPORT SHIPPING REVENUE EXPLORATION & DEVELOPMENT PRODUCTION PIPELINE DOWNSTREAM REFINERY EXPORT Gas Station DEPO TRANSPORTATION INDUSTRY

Indonesian Upstream Oil & Gas Working Areas (under SKK Migas Management) TOTAL: 277 PSCs

HSE Policy - SKK MIGAS Objective: PSC Contractor should run operation with zero accidents, safe to human and environment. How to achieve: Comply with regulations Manage risk Control operations at the planning, construction and operation stages Perform continuous HSE performance improvement Develop an emergency response system and conduct regular exercises “SKK Migas urges all PSC’s commitment through the HSE leadership and accountability to assure HSE implementation is carried out effectively and efficiently ”

HSE Obligations for PSC Product Sharing Contract (PSC) , Chapter V, clause 5.2.4 “CONTRACTOR shall apply the standards of safety, occupational health and environmental protection…” Responsible to implement HSE principles Comply with all HSE regulations Responsible to implement all PSC terms Conduct measurement of sustainability HSE performance

E HS Upstream Oil & Gas HSE Management PRE- OPERATION POST -OPERATION EBA POD & WP&B Management & Monitoring Abandonment Site Restoration (ASR) E SHESEM UKL-UPL/EIA SHSEM Implementation HSE Technical Inspection all equipment (ship, rigs, etc.) HSE Integration in DED & FEED Safe System of Work Planning Equipment Certification Commissioning etc. HSEMS Audit HS HSE Program Implementation (JSA, PTW, HSE Campaign, training etc.) IH Monitoring Etc. Abandonment Site Restoration (ASR)

HSE KPI Target for PSCs in 2017 NO FATALITY No fatality to all employee INCIDENT RATE 2,00 (EXPLORATION) 1,00 (PRODUCTION) Incident Rate in each PSC Block PROPER ENV’L RATING 90% PSC COMPLY PSC complies with env’l regulations (min. BLUE category) NO OIL SPILL > 15,0 bbls No oil spill occurs > 15 barrels

HSE Incident Record (2017 YTD.) FATALITY ACCIDENT RECORD IN 2011-2017 4 (FOUR) FATALITIES IN 2017: Drilling activities : 3 persons Construction work : 1 person

HSE Incident Record (2017 YTD.) INCIDENT RATE Accident due to: Fatality Heavy Incident Medium Incident Light Incident

HSE Incident Record (2017 YTD.) Illness Fatality Main Causal Factor is Heart Attack = 69% Lifespan of Fatalities > 50 years old= 62%

1 1 1 4 1 HSE Incident Record (2017 YTD.) Illness Fatality Category RESPI- RATORY 1 ABDO- MINAL 1 UNCLAS- SIFIED 1 HEART 4 STROKE 1 Category Number of NWRF 2015 2016 2017 Ytd Illness 20 13 8 Traffic Accident 1 Suicide

SKK MIGAS Direction to PSCs regarding OHIH Program Areas of Program: Health Risk Assessment Assessment for Fitness for Work Fitness for Task & Health Surveillance Medical Emergency Response Preparedness

SKK MIGAS Direction to PSCs regarding OHIH Program (cont’d) NO KPI TARGET FORMULA  1 Lagging Indicator: Jumlah Penyakit Akibat Kerja (PAK)   Nilai Total Recordable Occupational Illness Frequency (TROIF) Target jumlah PAK dan nilai TROIF maksimal akan ditentukan kemudian pada tahun 2018 setelah SKK Migas mendapatkan data awal PAK dan TROIF yang diperoleh dari KKKS di tahun 2017 ini. Rumus TROIF yang disepakati oleh manajemen SKK Migas: Total PAK yang menyebabkan penatalaksanaan di atas First Aid x 1000.000 / jumlah jam kerja (karyawan+kontraktor) 2 Pelaksanaan Health Risk Assessment HRA dilaksanakan untuk seluruh site/ area operasi dan dilakukan oleh personil yang memiliki sertifikasi kompetensi. (jumlah area yg telah melaksanakan HRA / jumlah area total) x 100% 3 IH & Pengendalian bahaya kesehatan di tempat kerja Pelaksanaan pengendalian seluruh bahaya kesehatan di tempat kerja berdasarkan hasil identifikasi HRA dan dilakukan oleh personil yang memiliki sertifikasi kompetensi. (jumlah area yg telah dilakukan pengendalian / jumlah area yg wajib dikendalikan berdasarkan HRA) x 100% 4 Health Surveillance & Fit For Task (FFT) MCU seluruh pekerja dan dilakukan oleh personil yang memiliki sertifikasi kompetensi. FFT seluruh pekerja risiko tinggi dan dilakukan oleh personil yang memiliki sertifikasi kompetensi. Health surveillance untuk pekerja terpajan bahaya kesehatan > NAB dan dilakukan oleh personil yang memiliki sertifikasi kompetensi. (jumlah pekerja yg sudah MCU/ total pekerja) x 100% (jumlah pekerja yg sudah FFT/ total pekerja risiko tinggi) x 100% (jumlah pekerja yg telah dilakukan health surveillance / total pekerja terpajan bahaya kesehatan > NAB) x 100% 5 Medical Emergency Management Memiliki dokumen Medical Emergency Response Plan. Pelaksanaan latihan evakuasi medis 1 kali dalam setahun. Tersedianya personil terlatih First Aider (FA). Pelaksanaan pelatihan ulang / refreshment training untuk first aider selama 6 bulan sekali (jumlah field yg memiliki MERP/total field) x 100% 100% = 1 kali pelatihan 100% apabila memenuhi sbb: 100% = dilakukan 6 bulan sekali No KPI TARGET FORMULA 7 Health Campaign   Memiliki jadwal tahunan pelaksanaan health campaign. Pelaksanaan training IH untuk personil IH 1 kali setahun. Pelaksanaan edukasi dan sosialisasi IH untuk seluruh pekerja berdasarkan hasil HRA minimal 6 bulan sekali. Pelaksanaan edukasi dan sosialisasi OH untuk seluruh pekerja minimal 3 bulan sekali. 100% apabila memiliki. 100% = 1 kali training IH untuk minimum 1 personil IH 100% = dilakukan 6 bulan sekali 100% = pelaksanaan 3 bulan Pelaporan dan Manajemen Data Penyampaian laporan pelaksanaan OHIH setiap bulan dan disampaikan maksimal tanggal 20 di bulan berikutnya. Penyampaian laporan tahunan OHIH. 100% = pelaporan setiap bulan 100% = pelaporan 1 kali setahun Ref. Letter Deputy for Operation SKK Migas No. EDR-0109/SKKMF0000/2017/S5 tdated 31 July 2017

SKK MIGAS Direction to PSCs regarding OHIH Program (cont’d) Health Risk Assessment OH IH PROGRAMS 1 2 3 4 5 6 Industrial hygiene & control of hazardous exposure Reporting and Data Management Health Surveillance & Fitness for task Health Campaign Medical Emergency Management

Industrial Hygiene & Control of Hazardous Exposure Example : Noise and Vibration From Compressor Hazard Control Insulation Provide PPE Routine Maintenance Perform Noise Monitoring Perform Audiometric Test

Reporting of OHIH Programs MONTHLY REPORT ON MANAGEMENT OF OCCUPATIONAL HEALTH DAN INDUSTRIAL HYGIENE PSC : BLOCK : PERIODIC REPORT : NO KPI TARGET ACHIEVEMENT (%) NOTE   1 Health Risk Assessment HRA dilaksanakan untuk seluruh site/ area operasi 2 IH & Pengendalian bahaya kesehatan di tempat kerja Pelaksanaan pengendalian seluruh bahaya kesehatan di tempat kerja berdasarkan hasil identifikasi HRA 3 Medical Surveillance & Fit For Task (FFT) MCU seluruh pekerja FFT seluruh pekerja risiko tinggi Health survelillance untuk pekerja terpajan bahaya kesehatan berdasarkan HRA

Reporting of OHIH Programs MONTHLY REPORT ON MANAGEMENT OF OCCUPATIONAL HEALTH DAN INDUSTRIAL HYGIENE PSC : BLOCK : PERIODIC REPORT : NO KPI TARGET ACHIEVEMENT (%) NOTE   4 Medical Emergency Management Memiliki dokumen Medical Emergency Response Plan Pelaksanaan latihan evakuasi medis 1 kali dalam setahun Tersedianya personil terlatih First Aider (FA) Level 2 minimal 3 orang di setiap shift kerja. Pelaksanaan pelatihan ulang / refreshment training untuk first aider selama 6 bulan sekali 5 Health Campaign Memiliki jadwal tahunan pelaksanaan health campaign. Pelaksanaan training IH untuk personil IH 1 kali setahun. Pelaksanaan edukasi dan sosialisasi IH untuk seluruh pekerja berdasarkan hasil HRA minimal 6 bulan sekali. Pelaksanaan edukasi dan sosialisasi OH untuk seluruh pekerja minimal 3 bulan sekali. 6 Pelaporan dan Manajemen Data Penyampaian laporan pelaksanaan OHIH setiap bulan dan disampaikan maksimal tanggal 20 di bulan berikutnya. Penyampaian laporan tahunan OHIH.

Rooms for Improvement Make sure all procedures are aligned & understood by contractors Make more detail on the PTW, JSA, Tool Box Meeting, even on preparation stage Improve safety & health awareness to all employee, including contractors Appoint HSE leader/supervisor assigned in daily basis Re-evaluate the health worker & area condition before commencing job Re-check the safety devices & work place are working properly & in good conditions

Conduct Management Walkthrough Perform Safety Stand-Down SKK Migas Efforts Conduct Management Walkthrough Perform Safety Stand-Down Publish Safety Alert OHIH Disclosure to all PSCs HSE Work Program & Budget Monitoring at Sites

Summary The rate of fatality record reaches the wake-up call alarm in 2017 due to work accident and illness SKK Migas makes a great effort in evaluating, monitoring & improving HSE performance to all PSCs Safety & health awareness to all employee should be continuously improved to all workers, including un-skilled labor After all, the commitment of company management is on the top of HSE performance achievement (leadership, policy, resources, system & finance etc.)