Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

Mellitah GAS BV LIBYAN BRANCH

Mellitah Gas BV

MANAGEMENT SYSTEM PROCEDURE

CORPORAT E HSEQ-S REQUIREM ENTS FOR

SUPPLIERS AND CONT RACTORS

MG-HSEQ-P- 018

Written By Reviewed By Endorsed By Approved By

Rev REASON FOR REVISION
Date Date Date Date

Revised to Change Company’s Name

A2 E. Carvajal A. Elasfar A. Ganidi A. Amesh
and Minor Changes
03/03/08 06/03/08 09/03/08
A1 Issued For Approval and A. Ganidi/A. Lasfer M. Al Aherish M. Al Aherish
Implementations Dr .J. ElSarraj /A. Rahuma
01/07/2005 28/09/2005 01/12/2005
A. Ganidi/A. Lasfer
Document modified to comply with A. Rahuma M. Al Aherish N/A
P3
Production Phase and projects
01/07/2005 27/09/2005
A. Ganidi S. Johnson N/A N/A
P2 Issued for initial and department review
01/08/2005 27/02/2005
A. Ganidi N/A N/A N/A
P1 Draft
26/02/2005

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

TABLE OF CONTENTS

1.0 INTRODUCT ION

1.1 Scope

2.0 POLICY

3.0 HEALTH

4.0 SAFETY

4.1 Fire Protection

4.2 Emergency Response Plan
4.3 Personal Protective Equipment/Clothing
4.4 Permit To Work System
4.5 Lifting equipment
4.6 Vehicles, Equipments and Transportation
4.7 Hydrogen Sulfide Gas
4.8 Housekeeping
4.9 Training

5.0 ENVIRONMENT

6.0 QUALITY

70 SECURITY

8.0 REFERENCED DOCUMENT S

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

1.0 INTRODUCT ION

MELLITAH GAS BV is an operating company comprised by Wafa Desert, Mellitah Complex

and Sabratha Platform; these facilities are producing sales gas, stabilized oils, condensate,
refrigerated propane, butane and elemental sulphur. Many of these operations are carried
out by third parties; therefore, a correct alignment of contractors and suppliers with the
company HSEQ-S systems is required to avoid undesired events and reduce intrinsic risks
As Low As Reasonably Practicable (ALARP).

1.1 Scope

This document shall outline the standard and basic guidance requirements for contractors
and suppliers contracted to perform activities for or on the behalf of MELLITAH GAS BV; it
shall also provide the required index of procedures and work instructions and any other
documentations deemed necessary for the performance of the dedicated tasks (i.e.:
QA/QC, HSE, Security, etc), for running plant or projects.

2.0 POLICY

The Company HSEQ and Security approved Policies have been disseminated at all
Company facilities. It’s Mandatory that the operations of the Company be maintained &
carried out in compliance with the approved policies. The company expects and requires
from all Contractors contracted to perform work for/or on behalf of the Company shall fully
comply with these requirements stated in these policies. The company requires also that
contractors shall employ competent HSEQ-S engineers to enforce and maintain the policy.
The HSEQ and Security approved Policies are attached in appendix (1).

3.0 HEALTH

MELLITAH GAS Company is committed and focused on the prevention of work related
illness; protection of the worker’s health and promotion of their health and well-being to
ensure that the individuals who work for the company are able to do so without risk to
themselves and others, for this reason; the company is operating with fully equipped
medical clinics at all locations to provide medical aid and medical services support as well
as medical evacuations to all its employees and contractor’s workers which forming part of
the Company organization.

The company requires from all contractors working for/or on behalf of the Company to
undertake similar responsibilities towards their staff and as a minimum shall comply with
the following requirements:

· Pre-employment examinations are required for all Contractor employees as part of

fitness to work assessment scheme

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

· Periodic (Risk related) medical examination should be arranged to selected group of

the contractor employees to determine health risk impacts caused by assigned work
· Contractor shall train its employees in healthy & safe work practices as part of health
promotion scheme
· Contractor shall be aware of the local legislation of use alcohol & drugs abuse, etc.
· Contractors shall manage medical waste in accordance to proper medical waste
procedures. Under no circumstances that medical waste shall be mixed and disposed
with other waste, medical waste is classified as hazardous waste and shall be managed
under strict control management procedure and sent to authorised incinerators.
Contractors shall also liaise and obtain permits from the local authorities for waste
disposal
· Contractors shall also arrange for medical evacuations services and hospitalization
requirements for their workforce
· Contractor personal working offshore should be aware that passive smoking can affect
us; also implementation of no smoking policy is mandatory except in the designated
areas
· Contractor shall comply with and implement the occupational health program in order to
reduce work place injuries and illness.

4.0 SAFETY

Contractors shall perform work related risk assessment to identify the associated risks and
hazardous. The outcome of this study shall be become into a site Safety Management
System (SMS). As minimum; the SMS elements shall be based on the following basic
fundamentals:

· Safety Systems of Work

· Safety Work of Equipment
· Safe Place of Work

As general guidelines, the developed SMS shall take into consideration the following
essential requirements at work site.

4.1 Fire Protection

Contractor shall establish and implement fire protection systems, which involve a master
planning with trained professionals having experience in Fire fighting, and rescue. Their
duties and responsibilities shall include Fire Drills, Maintenance, Scheduling, Fire ground
operations, Rescue procedures, Training and mutual aids in and around the facilities.

4.2 Emergency Response Plan

Contractor shall develop and implement site specific emergency response plan (ERP), the
Contractor ERP system shall be bridged and integrated with Company site ERP as part of
the ERP maintenance program; Contractor shall train its work force and conduct regular
drills.

4.3 Personal Protective Equipment /Clothing (PPE/C)

Contractor shall provide and endow its workforce with approved Personal Protective

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

Equipment (PPE/C). Contractor shall give the necessary training of PPE/C use and shall
ensure that these are being used by its workforce during work.

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

4.4 Permit to Work System

The Permit to Work (PTW) system is a formal system designed as a tool to undertake work
activities safely. PTW system is set of approved procedures/protocols aimed to guide all
users towards good and safe working practices. PTW system can measure, manage, and
either eliminate, or mitigate risk, enabling sometimes multiple complex, potentially
hazardous operations to be safely undertaken.

Contractors providing services for the Company or contracted to undertake tasks for or on
behalf of the Company shall develop and approve their own PTW system in accordance
with their corporate requirements. Regardless of what PTW system used, as a minimum;
shall comply with the OGP Guidelines.

For work activities performed inside the Company premises or activities interfaced with
Company facilities, Contractor shall use Company approved Permit to Work System,
documents (MG-HSEQ-SF-P-024 and MG-HSEQ-SF-P-025).

4.5 Lifting Equipments/Operation

Contractors are required to develop and implement a lifting procedure tailored for the
contracted tasks. All lifting equipment fixed and mobile used shall have a valid permit and
be certified by recognized body. Contractors are also required to submit copies to
Company of the valid certificate.

4.6 Vehicles, Equipments and Transportation

Contractors contracted to perform services for or on behalf of the Company shall ensure
that a properly transportation management is in place and implemented. All transportation
vehicles, equipment must be in good integrity conditions, have valid road permits and
driven by qualified operators. The contractor workforce must comply with traffic regulations
and be trained in defensive driving.

4.7 Hydrogen Sulfide Gas (H2S)

The natural gas processed at Sabratha Platform and Mellitah Plant contains 2% Hydrogen
Sulfide (H2S), therefore; Sabratha Platform & Mellitah Complex is classified as H2S (toxic)
Locations.
H2S is a highly poisonous gas; H2S is a colourless, flammable gas with odour of rotten
eggs at low concentrations. The gas is heavier than air and tends to accumulate in low
areas. Hydrogen sulphide is flammable and produces toxic sulphur dioxide SO2 when
burned.

Company HSEQ Department has compiled and prepared a Technical Document on H2S
Gas (MG-HSEQ-SF-D-041) to be used as reference, and can be obtained from Company
HSEQ Department.

4.8 Housekeeping

Housekeeping is defined as keeping your house, your workplace or work area clean and
tidy, free from any danger that expose you to risk of accident, fires etc. Company requires
from all Contractors working inside its premises or contracted to perform any activities on
behalf of the Company shall operate and maintain housekeeping management scheme,

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

Company also requires that frequent housekeeping inspections are carried out and records
are kept as an evidence during external auditing.

4.9 HSE Training & Inductions

Contractor shall ensure that its entire workforce receives the basic and the essential
HSE training related to work, furthermore contractor shall conduct refreshing training
for its staff; if necessar y.

HSE Site inductions and toolbox talks are deemed essential tool to build HSE
awareness within the workers; regular HSE sessions of such requirements shall be
held and records maintained.

5.0 ENVIRONMENT

Environmental protection is an important responsibility and an integral part of our corporate

planning and operations.

Contractors shall take an active role in improving environmental protection, not only by
technical means, but above all with the aid of the expertise, vigilance and skill of the
contractors that we can help to protect the environment.

Contractors shall respect and comply with the relevant internal safety standards and those
relating to waste management and the control of effluents and emissions:

· Contractors shall have approved waste management plan and it shall comply with
Mellitah Gas Waste Management Plan. A copy shall be sent to the company for review.
· Contractor shall minimise the waste production, specifically through utilization of a
comprehensive program of equipment and machinery maintenance and optimisation of
used materials.
· All waste shall be disposed in compliance with current environmental practices and
legislation.
· All waste arisen out from any activity shall be timely collected and separately stored by
their different natures.
· Waste storage areas shall be barricaded, signed, posted and shall be kept clear of any
windblown garbage in/or outside of the barricading.
· All waste kinds shall be transported and disposed according to agreement signed
between contractor and local environment authority. Copies of the agreement and
disposition receipts shall submit to company in a regular basis.
· Hazardous wastes must be disposed off by an approved agent authorised for handling
hazardous wastes.
· Contractor shall have the safety Data Sheets for the hazardous materials they will be
handling, as appropriate.

The contractor’s activity cannot be considered finished until a final safety and
environmental inspection has been carried out, to ensure that no residual risks remaining
and that the workplaces and other areas that may have been used as stores, workshops or
quarters are empty and clean.

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

6.0 QUALITY MANAGEMENT SYSTEM

Quality System (QMS) is a system that outlines the policies and necessary procedures to
manage and control the processes that will ultimately lead to improved business
performances.

6.1 General Requirement

Contractor’s Quality Management System shall be submitted to Mellitah Gas for review.

The standards in the Quality system shall at least be comparable to the minimum
requirements of this document and should cover the Quality aspects of contracted work by
Mellitah Gas.

Contractors' own Quality engineer on site will be required if this is stipulated in the contract
or in the agreed scope of work.

The contract’s Quality Management System shall have the following elements as a
minimum:

§ Contractor’s Quality Policy and Quality Objectives.

§ Contractor’s Quality manual.
§ Contractor’s Quality plan.
§ Contractor’s Auditing procedures, quality control procedure and quality Assurance
procedure.
§ Contractor’s Non-conformance procedure, Corrective Action.

If the contractor is certified to ISO 9001 Quality Management standard, the contractors
shall present a copy of the ISO certificate to the company.

6.2 Audits

Audits are a systematic, independent and documented process of obtaining evidence and
evaluating it objectively, audits will be carried out against all main corporate procedures and
systems and individual departments own work instructions to establish conformance to
corporate policies and requirements.

6.2.1 Internal Audit

Contractor shall establish an internal auditing system as per QMS requirement; contractor
shall also perform and record frequent internal auditing of its management to ensure
compliance.

6.2.2 External Audit

The company shall have the right to carry out external audit on its contractors or the
company may appoint a third party to conduct auditing on behalf of the Company. In addition
the contractor shall have external auditing performed by external body; copy of the final
report shall be submitted to company.

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 Mellitah Gas – BV - HSEQ - Corporate HSEQ-S Requirements for Suppliers and Contractors

7.0 REPORT ING AND RECORDS

The contractor shall develop and implement reporting and record management system.
The following reports, which will be considered as records of the HSEQ Management
System, shall be prepared:

§ Inspections, supervision and checks made by the contractor and by Mellitah Gas
BV.
§ Accident, incident and near-miss reports compiled by the contractor or Mellitah Gas
for accidents which concern the contractor’s personnel or which occurred as a result
of the contractor’s activity.
§ Follow-up investigation reports on accidents mentioned above, compiled either by
the contractor and /or Mellitah Gas.
§ Monthly statistical reports on the number of people and worked hours, of accidents
both with and without lost time as well as the amount of the lost time. These reports
must be provided by the contractor and should give details of its personnel and also
of any sub-contractors used.
§ Training and emergency drills in which the contractor’s personnel take part, with a
list of the participants’ names and any comments or conclusions, as needed.
§ Monitoring of those environmental parameters that correspond to significant aspect
of the activity.

8.0 SECURITY

Contractor shall develop and implement its own site security procedures; however, the
security system shall comply as a minimum the following requirements:

1. Gate security management

2. Implement Identification access cards
3. Material access control system
4. Visitors control management
5. Comply with desert pass requirements
6. Enforce security roles and regulation
7. Enforce site patrolling
8. Site fencing
9. Control use of use mobile phones and use of cameras

9.0 MANAGEMENT OF EXPLOSIVE

Explosive is classified as critical and sensitive materials; it requires special permits from the
authority. Permit must be secured from the relevant authority to procure and manage the
explosive in Libya must be undertaken under strict control by the Libyan Security Authority.
Explosives are normally stored and transported under police guarding.

10.0 REFERENCED DOCUMENT S

· MG-HSEQ-SF-P-024 Corporate Permit To Work System (onshore)

· MG-HSEQ-SF-P-025 Corporate Permit To Work System (offshore)

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· MG-HSEQ-SF-D-041 H2S Gas

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