HSE COMPETENCE STANDARD REV.

02

APPENDIX C HSE MANAGEMENT COMPETENCE FRAMEWORK

SPECIFICATION FOR HSE PROFESSIONALS

Purpose
To define the Competence Framework for HSE Professionals.

Who is this for?

• Senior Leaders (CEO and CED members )
• Business Leaders (Front Line Barriers Manager, Managers, Supervisors)
• Technical Authorities ( TA1, TA2)
• HSE Professionals ( all HSE Disciplines: HSE General, Environmental, Personal Safety and Transport
(Road Safety),Health, Process (technical) Safety, Emergency Response and Fire
• Authorized HSE Competence Assessors

Requirements – Competence Process

The Line Manager is accountable for making sure that requirements 1 to 4 are met.
1. For Sakhalin Energy staff in HSE Professional Positions:
a. There are 3 HSE Management System competences required for all HSE Professionals as basic
requirements, which are further described in Requirement 3:

HSE-SP MS

1. Coach & Support the Leadership of HSE Risk Management

2. Coach & Support the Preparation of HSE Risk Management
3. Coach & Support the Application of HSE Risk Management

b. There are 11 HSE Professionals technical competences which are further described in
Requirement 4:

HSE TECHNICAL

1. Manage Health Risk

2. Manage Process Safety Risk
3. Manage Personal Safety Risks
4. Manage Environmental Risks
5. Implement Contractor HSE Management
6. Manage Projects HSE Risks
7. Manage Driver Safety Risks
8. Manage Transport Safety Risks
9. Manage Social Performance
10. Manage HSSE & SP Regulatory/Legislative Interface
11. Manage Greenhouse Gases and Energy Use

c. There are 3 Competences required for HSE Professionals in Health Discipline:

Conduct and Apply Risk Assessment

Manager Healthcare Services and Health
Manage Health Programmes and Projects

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d. There are 2 Process Safety Competences required for Professionals in Process ( Technical) Safety
Discipline:

1. Process Safety in Operations ( practitioners)

2. Process Safety in Projects ( practitioners)

e. There are 2 CONTRACT HOLDER Competences required for HSE professionals who being
appointed as a Contract Holder.

1. Formulate Sourcing Strategy and Tactics

2. Deliver Contract Value

Competence frame work requirement = refer to Table 1 below.

2. The Competence Framework for HSE Management shall be applied as follows:

a. The individual seeking competence validation shall:

• Confirm with the Line Manager the HSE Management Competence Elements and associated
Proficiency Levels required for their role, at the relevant job level (see Table 1).
• Confirm with the Line Manager, where relevant, the HSE Specialist Competence Elements and
associated Proficiency Levels required for their role, at the relevant job level (see Table 1).
• Self-assess against the requirements for each Competence Element.
• If the individual decides they meet some or all of the Proficiency Levels, gather evidence to
support the claim (this should be reflected in the Self-Assessment Questionnaire Tool).

b. The individual’s Line Manager shall carry out the competence assessment, as follows:
• Select the HSE Management Competence Elements and associated Proficiency Levels required
for the individual’s role, at the relevant job level (see Table 1).
• Select, where relevant, the HSE Specialist Competence Elements and associated Proficiency
Levels required for the individual’s role, at the relevant job level (see Table 1).
• Obtain support from competent colleague- HSE Competence Assurance Specialist in case:

- where a required specialist competence level is higher than the Line Manager’s own assessed
competence
- where the Line Manager decides he/she does not have adequate proficiency in a competence
element to do a fair assessment
- where the Line Manager decides he/she does not sufficiently understand the assessment
process
• Assess the individual’s evidence against the Competence Elements.
• Carry out an interview to determine the individual’s level of competence.
• Explain any competence gap(s) to the individual and suggest ways of possible gap closure.
• Provide the validated assessment record to the HSE Competence Lead for record keeping.

c. Where the individual and Line Manager consider that a competence requirement specified in Table 1 is
not required or is set at too high or low a level, they may seek a Derogation\Exceedance. Such
Derogation\Exceedance shall be approved by the Technical Authority Level 1 (TA1) for HSE, documented

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and recorded and kept in the repository of the Company’s documentation.

d. Line Managers shall periodically (at least every 2 years):

• Review the HSE Professional Positions in their organizations and the HSE management and
specialist competence requirements.
• Assess whether individuals have maintained the Proficiency Levels for the required Competence
Elements. They shall do this by either determining that the individual continues to perform the
relevant HSE activities satisfactorily or re-assessing the individual’s Proficiency Level in the
relevant Competence Elements.
• If an individual is re-allocated a higher Job level, the Line Manager shall ensure that the required
Competence Elements are reviewed and updated where necessary, and the individual shall be
reassessed as necessary against the revised requirements.

Requirements – HSE Management Competence Elements

Description of 3 HSE Management Competences for HSE Professional Positions:

1. COACH AND SUPPORT THE LEADERSHIP OF HSE RISK MANAGEMENT

Competence Description: (This is for people who work with the Business) to coach and support the Line
to deliver leadership in HSE.

Competence Definition (Skill level): You can:

Support and coach business leaders, managers, and supervisors to achieve and apply the Line
«HSE Lead » competence.
Create and sustain a culture that drives the Company commitment of no harm to people and to
protect the environment.
Develop Objectives, Targets and Plans to Support the implementation of the company HSE
Commitment and Policy.
Establish and maintain an organization that enables compliance with HSE Control framework,
regulations and laws.
Review the effectiveness, adequacy and suitability of HSE Management System and take actions to
improve.

For Awareness level, for example, look for evidence that the person can describe in basic terms:

Describe a Hearts and Minds programme (or similar culture/leadership-related) such as

"Understanding your Culture", “Making Compliance Easier”, "Seeing Yourself as Others See You",
or “Effective Observation and Intervention”
Describe the requirements of Intervention, Life Saving Rules and Personal HSE Leadership
Behaviors, and HSE Risk Management
List methods to champion HSE, e.g. Safety day, Leadership site visits
Describe typical HSE content for Asset/Project plans
Explain the sort of information, instruction, training and supervision required for people to be
competent to carry out their work safely.
For Knowledge level, for example, look for evidence that the person has:

1. Helped to run a Hearts and Minds programme (or similar culture/leadership-related) such as
"Understanding your Culture", “Making Compliance Easier”, "Seeing Yourself as Others See You",
or “Effective Observation and Intervention”

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2. Helped to run sessions for leaders such as Risk awareness, Intervention, Life Saving Rules and
Personal HSE Leadership Behaviors, Risk Management / HEMP
3. Helped leaders to champion HSE, e.g. Safety day, Leadership site visit schedule
4. Provided information, instruction, training and/or supervision to support HSE competence
5. Benchmarked targets and performance against competitors and advise leadership of changes
necessary to reach top quartile
6. Had active involvement and challenge in the review the HSE management system. This might
include proposals for change to the HSE-MS and suggestions of KPIs to measure performance
7. Reviewed stated compliance with laws and regulations and adopted HSE Standards

For Skill level, for example, look for evidence that the person has:

1. Led a Hearts and Minds programme (or similar culture/leadership-related) such as "Understanding
your Culture", “Making Compliance Easier”, "Seeing Yourself as Others See You", or “Effective
Observation and Intervention” for an Asset/Contract/Company
2. Run sessions for leaders such as Risk awareness, Intervention, Life Saving Rules and Personal
HSE Leadership Behaviors, awareness of HSE Policy & Commitment
3. Created a means for leaders to champion HSE, e.g. Safety day, Leadership site visit programme

4. Established an HSE governance structure for monitoring performance, leading continuous

improvement plans, managing the skill pool and implementing the HSE requirements
5. Had active involvement and challenge in the review of HSE Performance and the effectiveness of
the HSE management system
6. Reviewed compliance with laws, regulations, HSE management system and Standards
7. Conducted regular HSE Leadership site visits
8. Designed a Safety Day workshop with Leaders presenting
9. Had active involvement and challenge in the alignment of business and operational objectives,
targets and plans at company level
10. Made proposals for HSE targets (Key Performance Indicators or dashboard against achievement of
objectives)
11. Had active involvement in regulatory and external decision making
12. Established and maintained an HSE Assurance Plan.
13. Confirmed that the audit plan is relevant to the risks of the Asset/company
14. Engaged with the Business assurance committee on audit planning, execution and action item
follow-up
15. Monitored the follow-up of actions from HSE Audits and self-assessments
16. Scheduled, prepared and provided material and input for the management HSE performance review
meetings and identified trends and learning from the review, indicating where strengths and
weaknesses exist and other opportunities for improvement
17. Proposed HSE campaigns to improve performance based upon an analysis of underlying trends
against established objectives and targets
18. Assessed the impact of imminent changes on HSE management and defined and planned any
improvements required

2. COACH AND SUPPORT THE PREPARATION OF HSE RISK MANAGEMENT

Competence Description: (This is for people who work with the Business) to coach and support the Line
to prepare effective management of HSE risk.

Competence Definition (Skill level): You can:

Support business leaders, managers, and supervisors to achieve and apply the Line «HSE
Prepare» competence.
Identify HSE Hazards in the Business and document their effect on people, assets, environment
and reputation in a Hazards and Effects Register.

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Assess the Risk of identified Hazards for Worst-Case Credible Scenarios by using the HSE
Management System manual, subsection Risk Assessment Matrix (RAM) and document this
assessment of Risk in the Hazards and Effects Register.
Implement Controls and Recovery Measures for Hazards in blue, yellow and red areas of the RAM
in line with HSE&SP Management System manual, subsection Managing Risk.
Integrate HSE objectives and targets, plus requirements of the HSE Control Framework, into
Business Plans and Procedures.
Establish and maintain Common Risk Controls including Permit to work, Management of Change,
and Emergency Response.

For Awareness level, for example, look for evidence that the person can describe in basic terms:

1. Describe the Common Controls such as HSE Case, Emergency Response Plans, the Management
of Change process and Permit to Work Procedures
2. Explain how local operating procedures should take into account local risks and requirements and
comply with the HSE management system and Standards
3. Explain how to make local operating plans align with Business HSE Plans and local HSE risk profile
4. Explain how to identify the HSE controls required for the worksite tasks
5. Describe how to carry out a Hazards and Effects Register or Environmental Aspects Register, Bow-
tie analysis, risk assessment, ALARP determination and Remedial Action Plans, and the value of
each
For Knowledge level, for example, look for evidence that the person has:

1. Provide HSE input to and verification of Common Controls such as HSE Case, Emergency
Response Plans, the Management of Change process and Permit to Work Procedures
2. Verified that local operating procedures take into account local risks and requirements and comply
with the HSE management system and Standards, and engaged local staff to confirm
understanding
3. Confirmed that local operating plans align with Business HSE Plans and local HSE risk profile
4. Identified the HSE controls required for the worksite tasks
5. Had active involvement in the development and challenge of more than one of Hazards and Effects
Register or Environmental Aspects Register, Bow-tie analysis, risk assessment, HAZID, HAZOP,
ALARP determination and/or Remedial Action Plans
6. Helped to prepare HSE content for Asset/Project plans
For Skill level, for example, look for evidence that the person has:

1. Developed and verified the proper use of Common Controls such as HSE Case, Emergency
Response Plans, the Management of Change process and Permit to Work Procedures
2. Developed local operating procedures take into account local risks and requirements and comply
with the HSE Control Framework, and engaged local staff to confirm understanding
3. Tested that local operating plans align with Business HSE Plans and local HSE risk profile
4. Specified the HSE controls required for the worksite tasks
5. Led the development and challenge of more than one of Hazards and Effects Register or
Environmental Aspects Register, Bow-tie analysis, risk assessment, HAZID, HAZOP, ALARP
determination and/or Remedial Action Plans
6. Facilitated a workshop or meeting to support people working to achieve the “HSSE Prepare”
competence
7. Prepared Job Descriptions and Organization Charts for an HSE Department (appropriate to the
business risk)
8. Established an HSE governance structure for monitoring performance, leading continuous
improvement plans, managing the skill pool and implementing the HSE requirements
9. Defined HSE roles, responsibilities and authorities to implement the HSE requirements and comply
with regulations and laws
10. Established HSE roles and responsibilities in plans, procedures, job descriptions, individual tasks
and targets

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11. Calculated capacity and capability to deliver the HSE Plan and acted accordingly
12. Provided information, instruction, training and supervision so that people are competent to carry out
their work safely
13. Verified that the formal HSE competence assurance process has been applied and managed HSE
competence gaps of reporters through an agreed and documented plan
14. Established and maintained documented Management of Change Procedures
15. Identified the positions affected by changes in the Business or organization, and updated the HSE
competence requirements for these positions
16. Verified that all required HSE training and certification/licensing to meet legal requirements has been
completed
17. Confirmed that Asset/Function operating plans align with Business HSE Plans and company HSE
risk profile
18. Verified that Asset operating procedures take into account Asset/Function risks and requirements
and comply with the HSE Management system and Standards
19. Engaged Asset/Function staff and verified their understanding of Asset/Function HSE Plans and
procedures
20. Provided HSE input to the Permit to Work (PTW) procedure and verified that the PTW procedure
meets the HSE requirements
21. Verified that the Management of Change process addresses HSE risks and requirements

For Emergency Response professionals Skill evidence includes:

1. Provided HSE input to the set up or management of an Emergency Response Centre

2. Led or participated in an Emergency Response Team
3. Developed roles, responsibilities and accountabilities for HSE component of Emergency Response
4. Verified that the Emergency Response plans and drills are compliant with legal and adopted HSE
requirements
5. Provided HSE professional support and advice to an Emergency Response Team
6. Used Assets Emergency Incident scenarios to establish and maintain Emergency Response Plans
and procedures
7. Prepared, reviewed or updated Emergency Response Plans and procedures
8. Confirmed that emergency response equipment meets or exceeds Asset/Function requirements and
regulations
9. Conducted simulations or modeling of potential Emergency Response scenarios
10. Completed analysis to confirm that all Asset operations are compliant with medical emergency
response requirements
11. Planned or carried out table-top Emergency Response exercises
12. Planned or carried out Emergency Response drills
13. Carried out oil spill response
14. Carried out Medical Emergency Response
15. Maintained coordination with relevant authorities
16. Established a program of testing of Emergency Response Plans and procedures
17. Provided Emergency Response training for individuals and Emergency Response Teams

3. COACH AND SUPPORT THE APPLICATION OF HSE RISK MANAGEMENT

Competence Description: (This is for people who work with the Business) to coach and support the Line
to apply effective management of HSE risk.

Competence Definition (Skill level): You can:

Support business leaders, managers, and supervisors to achieve and apply the «HSE Apply»
competence.

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Implement the HSE requirements embedded in Plans and Procedures, check compliance,
intervene and take corrective action when necessary.
Collect, verify and report HSE performance data that are relevant, consistent, transparent, accurate
and complete, for consolidation for internal review and public disclosure.
Establish and maintain a Data Controls Assurance Plan.
Log, notify and investigate incidents, review and apply learnings through the Learning from
Incidents (LFI) process, with particular emphasis on injurious and high value learning Incidents.
Provide assurance that the HSE Control Framework requirements are implemented and effective.

For Awareness level, for example, look for evidence that the person can describe in basic terms:

1. How to carry out site visits and inspections to confirm that staff are complying with all agreed HSE
requirements
2. How to follow up areas of non-compliance with management through meetings, formal notifications
and non-compliance reports
3. Explain how Supervisors, Managers and Leaders should confirm that staff know what is required of
them prior to start of work, through Pre Job Briefings and review of Job Hazard Analysis
4. Explain the process for collation and submission of HSE Performance data in line with company and
RF requirements
5. Describe the incident investigation and learning process
6. Describe the HSE Audit, including preparation, interviews and close-out meeting

For Knowledge level, for example, look for evidence that the person has:

1. Accompanied management on site visits and inspections to confirm that staff are complying with all
agreed HSE requirements
2. Followed up areas of non-compliance with management through meetings, formal notifications and
non-compliance reports
3. Tested that the Supervisors, Managers and Leaders have confirmed that staff know what is required
of them prior to start of work, through Pre Job Briefings and review of Job Hazard Analysis
4. Had active involvement in the collation and submission of HSE Performance data in line with
company and RF requirements
5. Taken part in investigation of incidents to determine immediate and underlying causes using
company approved tools
6. Used the Learning from Incident process to communicate learning and required actions
7. Taken part in HSE Audit, including preparation, interviews and close-out meeting
8. Prepared audit term of reference
9. Monitored the follow-up of actions from HSSE Audits and self-assessments
10. Tested that the Supervisors / Managers / Leaders have confirmed that staff know what is required of
them prior to start of work. This might be through attendance at the Pre Job
11. Tested that the Supervisors / Managers / Leaders have confirmed that staff are complying with
requirements allocated to them during work. This might be through management site inspections or
compliance reports
12. Intervened in the event of non-compliance with established requirements. This might be through an
intervene card or via line management through a meeting, request for disciplinary action, suggestion
for competence improvement or coaching
13. Logged or updated incidents in the Fountain Incident Management system.
14. Investigated incidents using the Topset methodology to determine immediate and underlying
causes and analysed them using approved tools e.g. TRIPOD Beta as team member
For Skill level, for example, look for evidence that the person has:

1. Organized and facilitated management site visits and inspections to confirm that staff are
complying with all agreed HSE requirements
2. Fixed areas of non-compliance with management through meetings, formal notifications and non-
compliance reports and gap closure action planning and follow up

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3. Verified that the Supervisors, Managers and Leaders have confirmed that staff know what is
required of them prior to start of work, through Pre Job Briefings and review of Job Hazard Analysis
4. Analyzed HSE data to identify underlying trends and developed corrective action plans
5. Led or facilitated investigation of incidents using the Topset methodology to determine immediate
and underlying causes and analysed them using approved tools e.g. TRIPOD Beta, to analyses
weaknesses in the HSSE-MS and provide recommendations and corrective action.
6. Managed the Learning from Incident process to communicate learning and required actions
7. Led or facilitated HSE Audit, including preparation, interviews and close-out meetings
8. Coordinated the execution of HSE Audits
9. Carried out an HSE audit , including preparation, interviews and close-out Meeting
10. Had active involvement in the development of the Data Controls Assurance Plan and verified data
quality controls are in place and functioning to standard

Requirements – HSE Specialist Competence Elements

Description of the 11 HSE technical competences for HSE Professionals:

HSE Technical

1. MANAGE HEALTH RISKS

Competence description: (This is for people who work with the Business) to manage health risks.

Competence definition (Skill level) You can:

Implement Control Framework and legal requirements for health risk management.
Apply the outcome of Health Risk Assessments.
Manage other health risks associated with the locations or activities, including Human
Factors Engineering, Health Impact Assessment, Product Health and Environmental Health risks
etc.

For Skill level, for example, look for evidence that the person has:

1. Commissioned a Health Risk Assessment

2. Understood and challenged output of Health Risk Assessment
3. Implemented the Remedial Action Plan stemming from Health Risk Assessment
4. Confirmed that health requirements have been integrated into operating practices
5. Conducted health related inspections
6. Identified changes that may trigger the need for new health requirements. This might be evidenced
by review of Safety Data Sheet (SDS) or scientific reports, compliance checks against changes in
health regulations or standards and requests for revised Health Risk Assessment following changes
in feedstock, processes or working practices
7. Reported non-compliance to health requirements through Fountain or engagement with health
professionals
8. Checked that the control and recovery measures specified in the Health Risk Assessment are in
place
9. Reviewed product hazards and the Health Risk Assessment when changes to operations or
organizations are proposed and advised Health representatives accordingly
10. Supported the control of health hazards and risks relevant to the Asset or Function. This might
include verifying that relevant employees have completed fitness to work evaluations, identifying
areas where acute toxic substances may occur and identifying locations containing asbestos
11. Engaged with Health specialists to manage concerns about health risks of operations

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2. MANAGE PROCESS SAFETY RISKS

Competence description: (This is for people who work with the Business) to prevent Process Safety
incidents resulting from unintentional release of energy or hazardous material.

Competence definition (Skill level) You can:

Verify that new assets and modifications made to existing assets are designed and constructed as
specified in the Design and Engineering Manual 1 (DEM1) and meet
Process Safety Basic Requirements as specified in the Design and Engineering Manual 2 (DEM2).
Perform Process Safety Reviews for new assets and for modifications to existing assets.
Verify that the procedures to operate HSE Critical Equipment within its operational limits are
adequate.
Verify that the procedures to inspect and maintain the technical integrity of HSE Critical Equipment
are adequate.

For Skill level, for example, look for evidence that the person has:

1. Had active involvement in identification of Process Safety risks

2. Performed Process Safety Analysis and Review, including the use of tools such as Hazid, Hazan,
Hazop, QRA, FRED and Layers Of Protection Analysis ( LOPA)
3. Confirmed that new assets and modifications to existing assets meet Design and Engineering
Manual 1 (DEM1)
4. Confirmed that Process Safety Basic Requirements described in Design and Engineering Manual 2
(DEM2) are met
5. Created and maintained the documentation for HSSE Critical Equipment
6. Inspected and verified technical integrity
7. Reviewed the process safety risks to an Asset
8. Confirmed that operating procedures manage the process safety risks
9. Had active involvement in development of a Statement of Fitness
10. Had active involvement in development of a Documented Demonstration of ALARP

3. MANAGE PERSONAL SAFETY RISKS

Competence description: (This is for people who work with the Business) to manage personal safety
risks.

Competence definition (Skill level) You can:

Review operations with personal safety risks and ensure the hazards are controlled by risk based
procedures, safe working practices according to the hierarchy of controls.
Demonstrate that personal safety risks are managed to as low as reasonably practicable.
Provide coaching and development for managers and supervisors of people performing tasks with
personal safety risks.

For Skill level, for example, look for evidence that the person has:

1. Had active involvement in identification of personal safety hazards and assessment of risks
2. Had active involvement in the selection of controls using the Hierarchy of Control
3. Integrated personal safety requirements into operating practices and procedures
4. Conducted management system audits to confirm personal safety hazards are adequately
controlled.
5. Identified changes that may trigger the need for new personal safety controls
6. Regularly intervened in cases of non compliance and resolved the shortcomings
7. Facilitated the application of Safety Behavioural tools e.g. Making Compliance Easier workshops,
use of the Hearts and Minds tools e.g. Understanding Your HSE Culture

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8. Supported the control of a variety of personal safety hazards and risks relevant to the Asset or
Function. This should include several of: embedding the Life Saving Rules, supervising or auditing
the Permit to Work process, planning and managing lifting and hoisting operations, work at height or
use of radioactive sources and selection of correct Personal Protective Equipment.

4. MANAGE ENVIRONMENTAL RISKS AND ASPECTS

Competence description: (This is for people who work with the Business) to manage risk from
environmental aspects.

Competence definition (Skill level) You can:

Maintain required certifications, permits and licenses.

Verify that emissions and discharges meet required levels.
Manage the disposal and transport of waste in line with requirements.
Assess and manage the risks of soil and groundwater contamination.
Assess and manage the potential impacts that operations may have on biodiversity and
ecosystems.

For Skill level, for example, look for evidence that the person has:

1. Had active involvement in identification of environmental aspects, determining significance and

assessment of impacts
2. Had active involvement in the selection of controls using the Hierarchy of Control
3. Verified that certification, permit and license conditions are being met and appropriate records
maintained
4. Integrated environmental requirements into operating practices, controls and procedures
5. Conducted inspection of facilities and records to confirm compliance
6. Identified changes that may trigger the need for new environmental controls
7. Intervened in cases of non compliance
8. Supported the control of environmental aspects and impacts relevant to the Asset or Function. This
might include carrying out an Impact Assessment, maintaining a Biodiversity Action Plan, managing
a Ozone Depleting Substances inventory, managing the use of HCFCs, managing soil and
groundwater contamination, managing SOx and NOx emissions, managing VOC emissions,
monitoring to detect leaks, managing waste and managed water use and discharges

5. IMPLEMENT CONTRACTOR HSE MANAGEMENT

Competence description: (This is for people who work with the Business) to ensure that contracts
consistently and effectively cover the management of HSE risks, and to deliver effective management of
HSE risks during contracted activities.

Competence definition (Skill level) You can:

Identify and assess the HSE risks associated with the contracted activities, and define how to
manage such risks.
Verify that the contract contains adequate HSE requirements (clauses) and potential
consequences for non-compliance.
Define the level of Company HSE performance monitoring required based on the capability of the
contractor and the Contract HSE risk.
Review and approve Contract HSE Plans and monitor that the contractor complies with the HSE
requirements of the contract.
Regularly review the management of HSE risks in contracted activities and, where necessary,
intervene and take actions for continuous improvement of HSE performance.

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For Skill level, for example, look for evidence that the person has:

1. Had active involvement in identification and assessment of HSE risks associated with contracted
activities
2. Had active involvement in the selection of management controls for contracted activities
3. Reviewed and endorsed Key Performance Indicators for contractors and the Contract HSE Plan
4. Executed pre-mobilization and mobilization activities
5. Assessed whether a contractor company has the capability and resources to manage the HSE risks
under the contract
6. Developed HSE requirements for contract clauses
7. Defined the level of Company monitoring and HSE supervision
8. Verified that the contractor company manages the HSE requirements of contracted activities
9. Monitored and assessed contractor HSE performance
10. Intervened in cases of non compliance and applied consequence management
11. Verified that the contractor has assessed and is managing subcontractor activities

6. MANAGE PROJECT HSE RISKS

Competence description: (This is for people who work with the Business) to manage health, safety,
environment during the life cycle of a project.

Competence definition (Skill level) You can:

Establish, maintain and execute HSE Plans and SP Plans throughout the life cycle of projects.
Obtain and maintain required certifications, permits and licenses.
Manage Impact assessments covering environmental, social and health aspects.
Integrate HSSE & SP in Project decisions.
Identify the need to engage with external Stakeholders, and consequently engage in line with the
Reputation Standard.

For Skill level, for example, look for evidence that the person has:

1. Had active involvement in identification and assessment of HSE risks associated with a project
2. Had active involvement in the selection of controls for a project
3. Reviewed and endorsed Key Performance Indicators for a project and the Project HSE Plan
4. Assessed whether a project has the capability and resources to manage the HSE risks
5. Integrated HSE into project decisions
6. Managed the Project HSE risk register
7. Established, maintained and executed the Project HSE Plan
8. Carried out or commissioned an Impact Assessment
9. Approved and applied the Impact Assessment deliverables
10. Verified that the project manages the HSE requirements
11. Monitored and assessed project HSE performance
12. Intervened in cases of noncompliance and applied consequence management
13. Checked that the project has assessed and is managing contracted activities
14. Developed and implemented a Stakeholder Engagement Plan

7. MANAGE DRIVER SAFETY RISKS

Competence description: (This is for people who work with the Business) to manage the risk of driving
and transport of people and goods on Company Business.

Competence definition (Skill level) You can:

Verify that vehicles, whether Company owned, leased or contracted, are selected, used and
maintained in line with requirements.

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Verify that drivers, professional or otherwise, are selected and trained in line with requirements,
and use vehicles and manage journeys and Road Safety High Risk Areas in line with requirements.
Periodically question and review the number of road journeys, with the intent to eliminate journeys
and lower the risk.
Use data to analyze and improve the planning and performance of road transport, provide regular,
formal feedback to drivers and apply consequence management where required.

For Skill level, for example, look for evidence that the person has:

1. Developed and analyzed inspection reports for checks on vehicles and provided feedback on gaps
2. Provided input to contracts around management of transport risks
3. Developed and analyzed reports for checks on driver fitness to work, in particular driver fatigue
4. Reviewed journey management plans, both pre-trip and post-trip, and followed up
5. Specified and implemented IVMS systems
6. Analyzed reports derived from IVMS systems and provided feedback to supervisors and drivers
recognizing good behaviors and areas for improvement
7. Analyzed and applied statistical analysis of road incidents to identify causes and risk mitigation
measures
8. Organized and led vehicle incident investigations
9. Organized and led vehicle incident review panels
10. Reviewed Defensive Driver Programmes and monitored attendance
11. Assessed and managed contracted vehicle activities
12. Identified road safety high risk areas and implemented mitigation measures
13. Intervened in cases of vehicle noncompliance and applied consequence management

8. MANAGE TRANSPORT SAFETY RISKS

Competence description: (This is for people who work with the Business) to manage the risk from
transport of people and goods by air, road, maritime and rail methods.

Competence definition (Skill level) You can:

Challenge the transportation mode or mix (air, road, maritime and rail) to minimize the overall
safety risk.
Use data to analyze and improve the planning and performance of transportation.
Establish controls for owned, operated or contracted transport and transport facilities including,
where appropriate, compliance with adopted international standards.

For Skill level, for example, look for evidence that the person has:

1. Reviewed the number and types of journeys with the intent to eliminate journeys and lower the
exposure and risk
2. Developed and applied administrative and procedural controls for driver / captain / pilot /crew and
passenger behavior
3. Implemented a Journey Management Plan and followed up to check compliance, particularly around
route changes
4. Used data from IVMS or equivalent to analyze and improve driver behaviors and performance, and
to allow recognition of good behaviors
5. Provided regular reviews of overall management of transport safety risks
6. Determine through Risk Assessment the most effective modes and blend of transport to reduce risks
to ALARP
7. Applied the Shell Maritime Safety Requirements for Design, Engineering and Operations
8. Applied the Shell Group Requirements for Aircraft Operations
9. Conducted inspections and audits to confirm compliance to transport requirements
10. Intervened in cases of non-compliance to transport requirements and resolved shortcomings
11. Worked with the Authorized Subject Matter Experts in Transport Safety

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12. Worked with the Authorized Subject Matter Expert in Aviation Safety

HSE Technical

9. MANAGE SOCIAL PERFORMANCE

Competence description: (This is for people who work with the Business) to manage Social Impacts.

Competence definition (Skill level) You can:

Engage effectively with neighbors, impacted communities and other stakeholders to identify and
manage Social Impacts arising from business activities at every stage of the Project cycle.
Define the Social Environment, identify and assess Social Impacts and develop strategies and
plans to mitigate negative impacts and enhance positive impacts.
Integrate and align Social Performance plans and activities with those of other functions and the
business.

For Skill level, for example, look for evidence that the person has:

1. Applied the requirements of the Social Performance Manual

2. Participated in planning and activities to define the Social Environment
3. Engaged with neighbors, impacted communities and other Stakeholders to identify needs and
expectations, seeking input and feedback on Social Impacts and control measures and developing
collaborative solutions where appropriate
4. Demonstrated external focus by developing and maintaining an active network of relationships with
stakeholders that provide benefit to the business
5. Participated in an assessment of Social Impacts and developed mitigation and enhancement
measures
6. Identified and responded appropriately to situations involving land acquisition and Involuntary
Resettlement, Indigenous Peoples, Cultural Heritage, conflict, grievance and human rights (as
applicable)
7. Developed and maintained a Social Performance Plan (including Social Investment)
8. Adopted differentiated Social Performance strategies for different phases of the Business or Project
cycle.
9. Aligned and coordinated Social Performance strategy and activities with other functions (Health,
Safety, Security, Environment, Contracting and Procurement, Human Resources, Communications,
Government Relations, Legal), Project teams and Contractors
10. Supported business leaders and managers in incorporating Social Performance into business
decision making
11. Identified key performance indicators, tracked results and made necessary adjustments to the Social
Performance Plan
12. Implemented Social Investment activities within a defined strategy
13. Influenced business leaders to make tangible changes to project related activities so as to minimize
negative Social Impacts and/or enhance positive Social Impacts

HSE Technical

10. MANAGE HSE REGULATORY / LEGISLATIVE INTERFACE

Competence description: (This is for people who work with the Business) to manage the HSE
regulatory and legislative interface on behalf of a project or operation.

Competence definition (Skill level) You can:

Identify regulatory requirements and monitor regulatory changes.

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Incorporate regulatory requirements in to HSE risk management, including local HSE procedures.
Communicate the implications of current and forthcoming legislation and the actions to be taken to
maintain compliance.
Engage with regulators and inspectors to understand their requirements.
Monitor the development of legislation, directives and regulations.

For Skill level, for example, look for evidence that the person has:

1. Provided a list of relevant regulatory requirements for the operation or asset

2. Commissioned a periodic review of regulatory changes, analyzed significance and managed
changes
3. Given presentations, held meetings and delivered communications to advise management of
regulatory requirements and changes
4. Updated local HSE procedures in the light of regulatory changes
5. Interpreted and communicated the implications of current and forthcoming legislation and developed
actions to maintain compliance
6. Engaged with regulators and inspectors to understand their requirements and focus areas
7. Intervened in cases of regulatory noncompliance and applied consequence management

HSE Technical

11. MANAGE GREENHOUSE GASES & ENERGY USE

Competence description: (This is for people who work with the Business:) to manage the risk
associated with Greenhouse Gases and energy use.

Competence definition (Skill level) You can:

Verify the adequacy of Greenhouse Gas and energy management plans.

Implement energy management and Greenhouse Gas abatement options.
Prepare Greenhouse Gas forecasts.
Keep pace with and communicate technological developments in CO2 / Carbon management.

For Skill level, for example, look for evidence that the person has:

1. Established and maintained a Greenhouse Gas and Energy Management Plan

2. Recommended energy management and Greenhouse Gas design options
3. Proposed Greenhouse Gas emission and energy management targets and communicated the
business implications of these
4. Monitored performance against Greenhouse Gas emission and energy management targets and
proposed improvement actions
5. Reviewed forecasts of Greenhouse Gas emission and energy management performance, including
uncertainty bars
6. Reviewed changes in operating conditions and the implications on energy demand and Greenhouse
Gas emissions, and how these changes may affect performance against targets
7. Managed Greenhouse Gas emission and energy management plans that are relevant to the Asset or
Function
8. Championed initiatives for energy efficiency and Greenhouse Gas emission reduction

Description of the 3 Health Discipline competences:

1. CONDUCT AND APPLY RISK ASSESSMENT

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Competence description: Establish process to identify and mitigate hazards. Plan, develop, apply and
evaluate a risk assessment relevant to one’s field of practice to ensure no harm to internal and external
stakeholders (customers, employees, contractors and communities).
Advise Business on how to interpret outcome of a risk assessment and propose remedial action.

Competence description (Skill level) You can:

Identify relevant hazards and assess Risks by using recognized and approved process and
procedures.
Develop mitigation plans to address identified risks according to company, RF and globally
accepted standards.
Advice and support businesses on risk management measures.
Conduct audit of the Risk Management System Update and communicate modified Risk
Assessment, in the event of change in Business, or in relevant Law and Regulations.
Monitor and provide advice on risk assessment conducted by external organizations.

2. MANAGE HEALTHCARE SERVICES AND HEALTH

Competence description: Develop plans, support, manage and/or evaluate appropriate health- and
environment -related incidents or issues in order to reduce injuries, disability, diseases, and damage to
the environment.
Plan and implement incident recovery and/or health and environmental issue management to mitigate
their consequences and, where appropriate, enable the resumption of normal operations.
Plan and manage health care delivery.

Competence definition (Skill level) You can:

Develop, implement and maintain written routine health care delivery, incident response and /or
issue management plans that are aligned with risk profile and applicable regulatory requirements.
Apply technical knowledge to contribute to the provision of health care services and health or
environmental incident recovery or issue management.
Work with external service providers or external agencies to ensure that they have up-to-date and
appropriate health care procedures and incident recovery plans.
Investigate incidents and issues and report learnings.
Locate, evaluate and interpret information about the key requirements of local and regional
healthcare systems and/or relevant legislation.
Conduct audit of local health facilities, laboratories, and/or local emergency response
arrangements and review and share learnings.

3. MANAGE HEALTH PROGRAMMES AND PROJECTS

Competence description: Identify, initiate, implement and evaluate health and environment
interventions that contribute to the health of employees, other stakeholders and the environment.

Competence definition (Skill level) You can:

Define local or regional programmes by identifying emerging threats before they begin to impact
company operations, employees and reputation.
Apply the principles of company programme planning to design programmes that contribute to
improvements in health and the environment.
Plan and implement health and or environmental programmes across business with external and
internal stakeholders.
Evaluate and report the outcome of the programmes and describe the added value to the business.
Contribute to audit of health and/or environmental programs and projects across all lines of
business to control effectiveness and ensure compliance with local regulations.

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Review and evaluate the adequacy of programmes and approaches and improve programme
design and delivery when required.

Description of the 2 Process (technical) Safety Discipline competences:

1. PROCESS (technical) SAFETY IN OPERATIONS (PRACTITIONERS)

Competence description: Know what element is or have used element:

HSE Case- purpose and structure, ALARP demonstration;

PS Events; 3. PS KPIs; LOPCs, Journey Book targets;
DEM 1 and PS [Shall] statements;
DEM 2 and industry major accidents;
MoC process;
Statement of Fitness process;
Risk Assessments, HAZOP, HAZID, Bow-ties, QRA usage/interpretation;
Process Safety assurance – self assessment;
Safety Critical Elements and Performance Standards; function of safety systems/equipment;
Permit To Work system;
Operating Registers; control overrides, flexible hoses, temporary repairs etc;
DCAF process, ACALs;
ESP;
Audit and review process

2. PROCESS SAFETY IN PROJECTS (PRACTITIONERS)

Competence description: Know what element is or have used element:

ALARP demonstration in design;

Process Safety deliverables at each gate in Opportunity Realisation Process;
Conceptual Design and Detailed Design Process as part of ORP;
HSE Case - purpose and structure;
Risk Assessment General, HAZOP, HAZID, Bow-ties, QRA usage/interpretation;
Risk Assessment Specific HSE Studies; Fire Risk Assessment, EERA, Explosion Overpressure
Assessments etc.;
Hazardous Area Classification;
Safety Critical Elements and Performance Standards;
DEM 1 and PS [Shall] statements;
DEM 2 and industry major accidents;
Statement of Fitness process;
MoC process;
DCAF process and PCAP;
OR&A process; P2A and handover;
Permit To Work system

Description of the 2 Supply Change management competences for HSE Professionals in Contract
Holder’s role:

1. FORMULATE SOURCING STRATEGY AND TACTICS

Competence description: Identifies the appropriate “Go to market” sourcing strategy (e.g. in source
/outsource balance, proactive or reactive sourcing, allocation of risk to contractor, reward structure,

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contractor selection criteria, market approach etc) and the associated tactics required to successfully
achieve the strategy, for the goods and/or services under consideration using a thorough evaluation of
their different characteristics and the market place.
Prepares robust written sourcing strategies for the endorsement and approval by the relevant
accountable stakeholders /governance structures (TB). Within the sourcing strategy chooses the most
appropriate sourcing tactics (e.g. prequalification on line bid, terms and conditions, tender/ negotiate,
lump sum/reimbursable, international/local) that address the sourcing strategy and maximize the potential
value to Sakhalin Energy.

Competence definition (Knowledge level) You can:

Explains using the correct terminology the key activities within the process (e.g. resource
balancing, budgeting). Establish a long list of potential suppliers, provide criteria to reduce to a
short list (including HSES assessment), create a cost estimate, develop a tender document with
performance drivers, a tender plan and TECHNICAL evaluation criteria, review tender and
qualification, seek approval and execute award.
Determine the HSES risks related to the scope of work and develop risk assessment matrix (RAM)
and risk register.

Competence definition (Skill level) You can:

Achieves operational excellence by effectively applying their knowledge of sourcing strategy and
tactics formulation for medium complexity goods and/or services, built up through experience and
contacts with subject matter expert’s e.g. CP, commercial, HSES.
Effectively applies knowledge of the sourcing strategy and tactics development. Understand the
supplier’s market and other similar work scopes within the company. Develop a cost model and
identify main areas of cost, develop a contract strategy, compile a tender plan and determine
individual contract performance drivers, determine a bidders short list (including HSES
assessment), tendering strategy and evaluation criteria upon which to recommend to award.
Actively manages identified risks and issues, develop a risk register

2. DELIVER CONTRACT VALUE

Competence description: Manages the contract over its life and develops and implements the
appropriate contract performance management activities to assure the performance standards, as stated
within the contract, are met or exceeded by the supplier. These include the contract initiation kick-off
meeting, setting of mutually acceptable SMART (i.e. simple, measureable, achievable, realistic and
timely) performance targets, ensuring objective performance measurement, (indirect) supervision,
inspection and auditing arranging regular performance review meetings dealing with current performance
issues and the setting of new targets.

Competence definition (Knowledge level) You can:

Develop and agree with supplier a schedule to review performance based on jointly agreed key
performance indicators and criteria, risk and issues. Maintain a current list of key personnel for
regular communication between the company and supplier. Emphasis the HSE requirements and
life saving rules and regularly review and update the contract management plan and risk mitigation
measures. Manage contract changes/variations and disputes quickly to avoid disruption.
Undertake compliance checks on process and contract against work / services received.
Ensure all outstanding works within the contract scope are completed and variations/ disputes/
claims are closed. Review the final account, release used Budget and close SAP for further
payments. Review the suppliers performance and provide a high level close out report of the
contract file/ archive.

Competence definition (Skill level) You can:

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Achieves operational excellence by effectively applying their knowledge of effective contract value
delivery for a medium and high complexity contract and successfully manages its lifecycle
improving or maintaining the value of the contract while following the specified governance / control
frameworks, including issue escalation procedures and risk management.
Proactively manages a contract including HSES, technical, CP and finance experts who provide
input from external sources and feedback. Improvement measures include challenging the
demand/ specification and price elements, arranging contract optimization reviews (CORs) and
conducting a business performance review (BPR) with the supplier including input and
benchmarking data from the category managers.
Undertakes compliance checks on the process and contract against work / services / goods
received.
Ensures the contract closes out requirements are planned within three months of contract
completion or expiry date. Supports the transitioning of the work/services to an operating
environment or transition to a new supplier. Ensures all the work/services are complete and the
supplier has demobilized from site with reinstatement requirements completed. Reviews the
financial accounts and SAP reconciliations with CP and Finance in order to close all variations/
claims, and close SAP for future payments and release remaining budgets. A contract close out
and final release certificate is issued to the supplier for signature and securities are adjusted to
reflect warranty obligations or final completion. Conducts a review of the contractors performance
and complete an assessment of the suppliers performance on elements such as HSES (including
adjustment of contract HSE stoplight banding), quality, planning and delivery, project management,
skills and training, commercial management and interfaces, all of which is included in the Sakhalin
Energy databases as market intelligence and shared with the category managers.

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REV. 02

TABLE 1

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