SAFETY AND HEALTH

( PETRONAS )
1.0 INTRODUCTION............................................................................................................... 2
2.0 CONTENT......................................................................................................................... 4
2.1 Occupational Safety and Health Administration (OSHA)....................................................4
2.2 Employee Assistance Programs (EAPs).............................................................................4
2.3 Wellness Programs............................................................................................................ 4
2.4 Job Hazard Analysis (JHA).................................................................................................5
3.0 PETRONAS BACKGROUND............................................................................................7
4.0 Human Resouce Practice on Employee Safety and Health in PETRONAS......................9
4.1 Health, Safety and Environment (HSE)..............................................................................9
4.2 Advantages of HSE (Health and Safety Environment)......................................................12
4.2.1 Reducing the risk of accidents.......................................................................................12
4.2.2 Environmental Friendly..................................................................................................12
4.2.3 Competitive Advantages................................................................................................12
4.2.4 Lower Turnover Rates...................................................................................................13
4.2.5 Cost Saving................................................................................................................... 13
5.0 DISADVANTAGE............................................................................................................ 14
5.1 Additional Spending for Operation....................................................................................14
5.2 Impossible All Accidences Can Be Avoid..........................................................................14
6.0 RECOMMENDATION.....................................................................................................15
6.1 Place or Set Safety Goal for their Employees..................................................................15
6.2 Place or Set Safety Goal for their Employees..................................................................15
6.3 Post Safety Rules at Hazardous Working Areas...............................................................16
6.4 Form a Safety Team of Upper Managements and the Workers........................................16
6.7 Training and Development...............................................................................................17
6.8 Organize Health Screenings for the Employees for Free..................................................17
7.0 CONCLUSION................................................................................................................ 18
8.0 REFFERENCE................................................................................................................ 20
 1.0 INTRODUCTION

Employee Safety and Health also called as Occupational Safety and Health (OSH). According to
R. Wayne Mondy, the definition of ‘safety’ in this term is protecting employees from injuries
caused by work-related accidents while the definition of ‘health’ is employees’ freedom from
physical or emotional illness.

Safety and health on employees started to be concerned by the society in 1833, HM Factory
Inspectorate which formed in UK inspect factories and ensure the child textile workers were
protected by the company from injuries. A Royal Commission in UK published its findings on the
state of conditions for mining workers that environment that the workers had to work in is
inexcusably dangerous and high frequency of accidents. The findings initiated public angers
rose Mines Act of 1842 and set up an inspectorate for mines and collieries caused many
examinations and safety improvements. The first social insurance legislation in 1833 and the
first worker’s compensation law in 1884 were instated by Otto Eduard Leopold, Prince of
Bismarck.

Malaysian Occupational Safety and Health started with steam boiler safety and followed by
machinery safety, industrial safety, boiler safety, hygiene and occupational safety and health that
cover every work sectors (Mega OSH Solution). Malaysia has implemented law to protect
employees’ safety and health which is Act 514, Occupational Safety and Health Act 1994. "It is
an act to make further provision for securing the safety, health and welfare of persons at work,
for protecting others against risks to safety or health in connection with the activities of persons
at work, to establish the National Council for Occupational Safety and Health, and for matters
connected therewith." (Law of Malaysia, 2006)

The importance of OSH has been a vital part for every organization because it is the key to high
productivity and a more proficient workforce. The purposes of OSH are to improve efficiency
and safe working conditions of employees. Once the working condition is safe and healthy,
employees will give their full efforts to increase their performance. Thus, it brings productivity to
higher level for organization. Besides, OSH can reduce the absenteeism of employees since the
organizations are taking responsible on the safety and health of working conditions by giving
guidelines, training and assistance to workers who work in sectors that consist of risks such as
petroleum oil and gas sectors.

The objectives that we doing this research study is to understand, discuss and gain knowledge
on theories or concepts of OSH.We also analyzed how PETRONAS implemented OSH
practices into their activities and the effects toward the organization.
 2.0 CONTENT

2.1 Occupational Safety and Health Administration (OSHA) DOSH Department of Safety
and Health Malaysia

The Occupational Safety and Health Act of 1970 created Occupational Safety and Health
Administration (OSHA). OSHA establish in United State to ensure worker safety and health to
create a better working environment. In Malaysia, the OSHA enforced by the Department of
Occupational Safety and Health (DOSH), a government department under the Ministry of
Human Resources Malaysia to provide a safety and health standards for almost all workers in
organization and ensure workplace free from a hazardous and harmful environment. The
missions of OSHA is to guarantee and ensure safe and healthful working condition to
employees by setting and enforcing a standard or guidelines by providing training, education
and assistance to employees. In the same time, the OSHA also secures the welfare among all
employees.

2.2 Employee Assistance Programs (EAPs)

The EAPs is a comprehensive employee benefit program implemented in organization that

designed to help employees to overcome the health related problems that may impact their
attendance or work performance. The most basic EAPs service is counseling for various issue
that affecting the emotion and mental health of employees. EAPs counselor typically provide the
counseling, support and assessment to employees that experience the health or emotional
problem. Examples of problem are alcoholism, drug abuse, divorce and others.The EAPs is
important to organization because EAPs can help organization to lower the medical costs,
reduced the turnovers and absenteeism, and increase the productivity of employees.

2.3 Wellness Programs

Wellness program is program offered by organization to help employees to prevent health

problems. This program is a clearly and astute business investment because the programs that
stimulating the employees regulate their healthy lifestyle in order to having a positive benefits in
term of health costs, enhancing performance and quality of life. Many organizations recognize
that taking this step able to build and maintain a healthy workforce. Preventive is a key point of
philosophy for getting good healthy. So, the organization can starts the wellness programs such
as set up of gym centre, smoking cessation, or stress management. Many organizations also
hire a full-times wellness coach when applying wellness programs in order to give aprofessional
management to the health of employees. The wellness programs that give the effective health
and lifestyle management believed that able to cut down the health-related costs of employees
and lower the absenteeism among the employees.

2.4 Job Hazard Analysis (JHA)

JHA ismultistep safety management tool that designed to study and analyze the tasks or jobs
and then break down the tasks into sequence of steps for identification of potential hazards in
order to prevent or control of these hazards that are determined. The JHA process starts with
the analysis of particular tasks. After that, the tasks will be break down into steps and prepare
for identification of potential risk or hazards associated with the particular jobs or tasks. After the
hazards are identified, the tasks will break down into few steps, the workers are provided with
the documents or procedures to eliminate the hazards and complete the tasks at the same time.
The main goal of JHA is to prevent job-related injuries and illness. The organization can achieve
the JHA goal this goals in by educate the workers to handle or eliminate the hazards associated
in their works, install engineering control, provide safe work procedures and prescribing
appropriate personal protective equipment.
Report of Occupational accident and diseases impact on 2017

OSHA plan for 2016-2020

 3.0 PETRONAS BACKGROUND

The company we have chosen to be discussed in our assignment is Petroliam Nasional Bhd
(PETRONAS). PETRONAS is the national oil and gas company in Malaysia. It established in
1974 and wholly-owned by the government of Malaysia (Abdul Ghani Pg.Hi.Metusin and Ooi
Kee Beng, 2005).

Together with 127 direct subsidiaries and 54 associated companies, PETRONAS, a

multinational corporation, has fully integrated oil and gas operations in a broad spectrum of the
oil and gas value-chain and with global presence in 31 countries (S.A Zainal Abidin, O.Bekri,
A.Jalaludin, 1996). In addition, it also conducts a variety of business activities include
exploration, development and production of crude oil and natural gas in Malaysia and overseas;
the liquefaction, sale and transportation of LNG; the processing and transmission of natural gas
and the sale of natural gas products; the refining and marketing of petroleum products; the
manufacture and sale of petrochemical products; the trading of crude oil, petroleum products
and petrochemical products; and shipping and logistics relating to LNG, crude oil and petroleum
products.

Safety issue always is high concern in the oil and gas industry especially since the Gulf of
Mexico incident happened in 2010. PETRONAS has around 44,000 of employees. Therefore, it
strives to contribute and take care of the well-being of people as well as nations, regardless
wherever it operates by developing and adding value to oil and gas resources. It balances the
commercial, environmental and social considerations carefully.

A report from Social Security Organization shows the construction is one of the highest fatality
rate in the accidents among the industry. PETRONAS experiences the worst ever group safety
record in 1998 with 31 fatalities and followed by 13 and 17 fatalities in 1999 and 2000
respectively.
Article about incident happened in PETRONAS by News Straits Times Online
 4.0 Human Resource Practice on Employee Safety and Health in PETRONAS

PETRONAS make commitments to continuous growth and sustainable development for the
future. PETRONAS find out the best way to balance the economic, environment and social
considerations when making business decisions. Therefore, PETRONAS implement Health,
Safety and Environment (HSE) into every aspect of their operations.

4.1 Health, Safety and Environment (HSE)

Health, Safety and Environment consist of integrated of ISO 14001 and OHSAS 18001
standards. It is central of a business make commitment to continuous growth and sustainable
development for the future. In PETRONAS, HSE is enhanced through restricting of Group
Health, Safety and Environment Division (GHSED) to provide business greater accountability.
Besides, a framework was established called Mandatory Control Framework (MCF). It is a set of
mandatory requirements for all operating units and has become culture in the corporation.

In this infrastructure, PETRONAS HSE has three main goals which are zero accidents, no
health problem due to the operation and no irreversible impairment of the environment
attributable to the operation.

Zero Accidents

PETRONES set zero accidents as their target. However, PETRONAS has also established
Emergency Response Team (ERT) just in case of emergencies. ERT is a team which is
specially trained in dealing with hazard such as chemical accidents and explosions. They are
get ready over 24 hours to administer help. ERT also work closely with local fire and hospital.

Besides that, Advance First Responders (AFR) is first aider who able to handle the incident
related to chemical before the arrival of professional. While waiting the professional, they have
to make early assessment of the victim. Last, they are required corporate with paramedics and
send the victims to the Occupational Health Team at the Clinic onsite. The OH team is led by
OH Physician and a team of trained medical to get over 24 hours for the first aid and medical
emergency service.

Last, in order to make sure that they are well prepared all the time, drills and Emergency
Response Preparedness Trainings is conducted from time to time.

No health problems due to operations

PETRONAS Occupation Health Department responsible provides a healthy working

environment by raising the awareness among the employees through the talk and publications.
A medical clinic is also available within the working area. Others efforts by this department
includes training programs such as Health Risk Assessments (HRA) as well as data collection
and analysis.

According to Wikipedia (2012), "HRA is a health questionnaire, used to provide individuals with
an evaluation of their health risks and quality of life". The main objectives of HRA are to assess
health status, estimate the level of health risk and provide feedback to motivate the employees
to change their behavior in order to reduce the health risk. One of the benefit of conducting HRA
is employers are allowed to evaluate the change of health behavior and health risk from time to
time.

No irreversible impairment of the environment attributable to the operations

Environmental friendly is the popular issue in the oil and gas industry. Therefore, Verbund
concept is applied into the production to protect the environment. Verbund is a concept of linked
various type of manufacturing plants with a network of pipes. These pipes are using to send the
by-products whereby it can be served as others raw material. Besides, the excess heat also has
been reuse. It converted into the steam instead of release to the environment.
PETRONAS incident form
4.2 Advantages of HSE (Health and Safety Environment)

Implementation of proper Health, Safety and Environment (HSE) as per requirement of ISO
14001 and OHSAS 18001 standards often having a positive effect on investment, sales growth,
competitive advantage, employee motivation and so on.

4.2.1 Reducing the risk of accidents

People believe that all incidents can be prevented through HSE training. Effective HSE training
help employees learn the knowledge and skills that needed to perform their jobs safely. For
instances, through the Emergency Response Preparedness Trainings, employees will know
better the potential hazards and proper responses to the undesired events. According to the
PETRONAS PE2011 Sustainability Report, Fatal Accident Rate (FAR) was decreasing year to
year from 2007.

4.2.2 Environmental Friendly

HSE is playing a significant role in protecting the environment. HSE guide the business conduct
their operations through efficient use of raw materials and natural resources, directly minimize
the wastage and damage to the environment. For instances, in years 2011, PETRONAS proved
that they able to reduce 3.14 million tons of CO2e into the atmosphere. Besides that, they
always ensure that their product can be recycled or disposed such as principle of 3R- recycling,
reusing and reducing.

4.2.3 Competitive Advantages

HSE is a wise choice for a business to distinguish themselves from the market. By implementing
HSE, it creates an efficient and effective operation and brings competitive advantage to the
business. PETRONAS has received many rewards over these years. For example, in year
2007, it received "PETRONAS Group HSE for Merit Award 2006/2007" Above all offer a better
reputation among the customer and investor. By this, it can be treated as strength while
promoting in the international trade.

4.2.4 Lower Turnover Rates

Health and Safety Environment training may be a matter of life and death in many hazardous
industries like PETRONAS. It is essential to make sure that employees are satisfied with the
working environment. Otherwise, it may come out result of high employee absence and even
high turnovers. Obviously, HSE is a one of the wise way to retain the employees.

4.2.5 Cost Saving

Efficiency use of raw material and natural resource not only protect environment from pollution
but also help a business optimizing their operation cost. By applying 3R and Verbund concept,
the volume of used raw material and natural resources will be reduced.

Furthermore, turnover rate of the business is expect will be remained constantly. A safety and
health work environment will retain skilled employees from resigning. A business can also avoid
recruitment, selection and training cost for staffing. By the same token, it even can put up the
productivity of employees. As a result, a business will pay less and return more in return.
 5.0 DISADVANTAGE

5.1 Additional Spending for Operation

A business need to spend a lot of time and resources so that all the facility and working
environment running at optimal safety level. For instances, a standard maintenance is needed
to conduct from time to time to ensure everything is well going.

Besides, Verbund concept need installment expenses before a business really can minimize
their cost. Moreover, a lot of programs also need to set up to help the employees always keep in
health either in mind or physical and alert to the risk.

Last, implement of Environmental technology (envirotech) is also a cost to the business. These
technologies are expensive and complex. Furthermore, employed skilled worker or specific
training is necessary to control the advance technology.

5.2 Impossible All Accidences Can Be Avoid

According to the HSE, PETRONAS believe that all accidences can be avoided. In reality, it is
hard to apply. Others than human factor root cause, natural disaster is also another causes.
According to THE STAR ONLINE (July 29, 2012), oil drilling platform catch fire during a
thunderstorm. It proved no matter how well preparation is done or how completion of
procedures is, accidences only can be reduced, but not eliminated at all.
 6.0 RECOMMENDATION

Being one of the famous companies in oil and gas industry, PETRONAS is always focusing on
the best and excellent safety and health policies or standards for their employees. However,
there are also accidents happening in the company due to the carelessness of the employees
and also because of some weaknesses in the working procedures. Therefore, some
suggestions have been recommended to the company to improve their employee’s safety and
health standards.

6.1 Place or Set Safety Goal for their Employees

PETRONAS should set safety goals for their employees for example, "perform job without any
accidents, injuries and also without causing any loses to the company continuosly for the year".
Employees who achieve these goals in performing their job without any injuries and accidents
should be rewarded by the company. These rewards can be in the form of bonuses,
commissions and also in the form of salary increments. Setting this goal will reduce the cost of
providing training and developments to the employees because, employees will be more
concious, aware and will follow all the safety method in performing the job to be more safer and
to avoid from getting injured and also from the occurrence of accidents to grab the rewards
offered by the company. Therefore, there will be no necessitate or needs for the company to
provide safety and health related training and developments or programs for their employees to
improve their safety and health standards. This will reduce the company’s cost or expenditure
on the training and development programs.

6.2 Post Safety Rules at Hazardous Working Areas

PETRONAS Company should place the safety rules and policies that should be followed or
executed by the employees at the higher risk areas in the company. For example, in the
exploration and production departments, chemical laboratories, gas and power stations,
logistics departments, maintenance areas and also in the armada garages of the company. The
safety rules should include all the instructions and also precautionary method that should be
followed by them at the higher risky area. The company should post the signs of no smoking,
eating or drinking, no usage of unpleasant perfumes, body spray and body odor at the
laboratories which consist of chemicals and hazardous substances and also about the
precautionary attire such as coats, walking boots, gloves and also eye protecting spectacles
while handling with the hazardous chemicals, and also in the production and manufacturing
departments. This safety rules is very important basic criterion that should be followed by the
employees because without these safety measures with the carelessness of employees will
leads to the occurrences of fatal accidents such as fire accidents which happened at three sites
in PETRONAS in 2012.

6.3 Form a Safety Team of Upper Managements and the Workers

PETRONAS may form a safety team which consists of the upper management and also the
employees from each department in the company. This team may work together and may
discuss together the strategies to be carry out to achieve the target of each departments and as
well as the company’s objectives or goals with higher quality of safety and health standards. For
instance, the team may hold a monthly meeting where both the upper management and the
employees from each department come together and converse about the problems or obstacles
faced by the employees in performing their job or task to the upper managements. They also
may suggest or recommend any alternative ways that can be implemented in the work
procedures to perform their task successfully and also safely. This will improve the relationships,
understandings and also cooperations between employees and the company. This may reduce
the employee’s pressures on their complicated task which is assigned to them.

6.4 Training and Development

PETRONAS Company should provide training for their employees especially for newly hired
employees in their company. This training and development is very important because
employees who are newly hired may not know the safety measures that must be followed while
they are in the company. Through this training the employees are be educated with their task or
job requirements and how to accomplish their task more safely and without causing any
accidence. This is vital because, most of the accidents are occurring because they were not
trained with the essential skills to handle the risky job and the hazardous substances with safely.
So, through this training and developments the employees can be trained and develop
themselves to be more safety concerned employees in the workplace.

6.5 Organize Health Screenings for the Employees for Free

PETRONAS may organize free health screenings for their employees. For instances, they may
organize free medical check-ups to check the employees blood pressures, diabetes and
cholesterol levels. This is vital because an employee’s well beings and healthiness plays a
major role in accomplishing their task securely without causing any accidents and loss to the
company which helps the company to achieve their goals and objectives successfully. So, they
may arrange this free health screening to make sure their employees can undergo the checkups
and take any treatment if necessary base of the health screenings.
 7.0 CONCLUSION

Employee Safety and Health is a significant issue for every organization because employee
consider as asset of the organization. Working environment is very important for every
employee. It to ensure that provides a safety place for employee to prevent getting any danger
or injury. Organization also need to concern employee health to prevent its employees’ from
suffering physical or mental illness. The employee safety and health is high concern especially
in the oil and gas industry. PETRONAS is a multinational corporation that has integrated oil and
gas operations in a broad spectrum of the oil and gas value-chain.

Employee has safety and health condition can perform the job efficiency and effectively and
achieve the company’s goal. Safety and health can impact the productivity and overall efficiency
in organization. Organizations can put efforts to develop the team spirit among employees and
to enhance as they are protected in the working environment. It can help organization to prevent
industrial accidents and to reduce the absenteeism among employees.

An important theory and concept such as Bounded Rationality, Herzberg’s two factor theory and
Maslow hierarchy of needs for an organization to apply in order to increase the profit by
providing a safety and health working environment to the employees. The organization and
employees should take the obligation together on the safety and health. Employees themselves
should aware and responsible for their own safety and health in the working environment.

PETRONAS conducts a variety of business activities in 31 counties. PETRONAS obeys and

follow the stated laws and regulations and conducts an excellent HSE management system to
ensure the safety and health of its employees. PETRONAS strives to contribute the commercial,
environmental and social considerations carefully. A proactive approach adopted in by
Occupational Safety and Health (OSH) to ensure the PETRONAS Corporate Policy Statement
on Health, Safety and Environment (HSE) is implemented effectively. HSE policy is the basis
requirement to implement in PETRONAS. OSH management can make decision at a limited
time with the best alternatives according to the procedure stated.
PETRONAS is restructuring the Group Health, Safety and Environment Division to enable
Business Units to have greater accountability. It developed a framework to consolidate the
mandatory HSE standard to be implemented in a safety working environment. Employee will
feel secure and satisfied with their working condition and environment international HSE
standards such as Gold Award from the Royal Society for the Prevention of Accidents (RoSPA)
and Grand Award from Malaysian Society for Occupational Safety and Health (MSOSH) in year
2010. It will lead to increase the employee confident during working time with company HSE
conditions.

The objective of implementation in HSE performance is to reduce business risks and exposure
and maintain consistency. Employees must know their duties and knowledge in order to apply in
their tasks. Therefore, PETRONAS enable to have greater accountability.
 8.0 REFFERENCE

1. https://www.google.com/search?
q=PETRONAS+SAFETY+AND+HEALTH+FORM&rlz=1C1AVNE_enMY848MY849&sxsr
f=ACYBGNTHfbvT6JDGL4aWQa987SidS1Z6TA:1581010714187&source=lnms&tbm=is
ch&sa=X&ved=2ahUKEwiPg4Xwu73nAhVXzTgGHWBhCOEQ_AUoAXoECAwQAw&biw
=1366&bih=625#imgrc=z7UtDskJpgWMtM

2. https://www.petronas.com/sustainability/health-and-safety

3. https://www.slideshare.net/easwarankanason/petronas-health-safety-and-environment-
guidelines-hse

4. https://www.jisha.or.jp/international/training/pdf/
(Malaysia)_COUNTRY_REPORT_present.pdf

5. https://www.nst.com.my/news/nation/2017/09/277240/40000-msians-hurt-workplace-
accidents-2016-human-resource-ministry

6. http://www.dosh.gov.my/index.php/legislation/acts/23-02-occupational-safety-and-health-
act-1994-act-514/file

7. R.Wayne Mondy 2011 (HUMAN RESOURCES MANAGEMENT) Eleventh Edition

Pearson Publisher