Vendor Hsems - Premier Oil

Health, Safety and Environment Procedure

HSE REQUIREMENTS A. GENERAL A.1 Commitment, Policy and HSE Management System Contractor acknowledges Company’s strong commitment to HSE and affirms that it has a written HSE policy, which is actively supported and endorsed by Contractor’s management. Contractor shall disseminate its safety policy widely and will ensure that it is understood by and complied with by Contractor Group Personnel. This policy will be in English and appropriate local languages. Contractor’s HSE management system should be documented and include an outline of Contractor’s safety organization, responsibilities for the HSE management process, procedures and methods of communication to and from personnel. A.2 Legal Requirements and Regulations Contractor and the Subcontractors shall comply with all applicable safety laws (whether international, national, regional, or local), regulations, decrees (including permit to work systems) and additional safe operating standards. Contractor shall take all necessary precautions related to or arising out of the performance of this Contract in order to protect the work, all personnel, the environment and property of Company, Contractor and all third parties. A.3 Termination and Suspension Any infringements or apparent infringements by Contractor Group identified by Company of the above laws, regulations and safe operating standards shall be discussed jointly by Company and/or Contractor and remedial action mutually agreed upon shall be implemented in a specified time. A.4 Public Relations Contractor and Company shall promptly take such steps as necessary to maintain good relations with the public and local authorities with whom they will come into contact with during the course of the Services. Contractor shall also require all Contractor Group Personnel to conduct themselves in a manner that is both safe and conducive to such good relations. Whenever necessary, Company may assist Contractor in the maintenance of good public relations.

Health, Safety and Environment Procedure

B. SAFETY ORGANISATION B.1 Responsibility for HSE Company will require Contractor and the Subcontractors to affirm that all managers and line supervisors are responsible for ensuring that the Services are performed in accordance with all Government of Indonesia and Premier Oil safety rules, regulations and good working practices with equal diligence being paid to fulfillment of the contractual technical specifications. B.2 Forward Safety Planning Meeting Contractor and the Subcontractors may be required to participate in a Forward Safety Planning Meeting prior to the start of the Services, in which event Contractor should prepare a discussion paper for this meeting, paying careful attention (which should not be limited) to the following items:

a. Safety training program (before and during the term of this Contract) including first aid, b. c. d. e. f. g. h. i.

fire fighting, and survival techniques Protective clothing First aid services and provision of qualified medical services Contingency planning Transport safety (land, water and air) Premier Oil Medical requirements and Drug and Substance Abuse Policy Occupational health (respiratory, hearing conservation) Reporting systems and frequency (accidents, incidents, unsafe acts) Environmental considerations

Minutes of this meeting with action items and implementation dates shall be agreed and given to Company, Contractor and the Subcontractor. B.3 Accident / Incident Reporting Contractor and the Subcontractors shall have an accident and incident reporting system which shall be compatible with Company’s Corporate Accident and Incident Reporting Standards & Procedures. Any hazardous event, accident, incident or near miss involving Company’s, Contractor’s or any third party’s personnel, plant or equipment, shall immediately be reported to Company, irrespective of whether injury to personnel or damage to plant or equipment has resulted immediately. B.4 HSE Meetings & Emergency Drills Contractor is responsible for maintaining and enhancing the HSE awareness of Contractor Group Personnel and shall participate in relevant training/emergency drills. In principle, all Contractor’s personnel offshore shall attend an HSE meeting and participate in all relevant emergency drill, held at least weekly. Contractor shall ensure that all Contractor Group Personnel shall not commence to carry out Services, or parts thereof, until they have received basic HSE information (often called a Tool Box Talk). This, as a minimum shall consist of an introductory briefing explaining the nature of the work, the general hazards which may be encountered during the work, the particular hazards attached to their own function within the work, the methods of controlling these hazards and the relevant emergency procedures to be followed, if required. This process will be repeated each time the mode of operation substantially changes.

Health, Safety and Environment Procedure

B.5 HSE Audit and Inspection by Company Contractor shall allow Company and Company’s representative or designee access at any time to the Contractor’s administrative office, installations, equipment, personnel and records when requested, to enable Company to inspect or audit any aspect of Contractor’s operations relevant to HSE. Contractor has the right for an appointed official to be present during such inspection or audit. Inspection or audit findings, where relevant, shall be discussed with Contractor/ subcontractors prior to the completion of a report. Contractor has the right to review and respond in writing to the final inspection or audit report prepared by Company. Contractor will inform Company of any planned HSE audit to be carried out by Contractor, or the Subcontractors, and will allow Company representatives to participate in such audits. B.6 Unsafe Act Auditing Contractor and the Subcontractors shall cooperate with Company in the implementation of a system for recognizing, correcting, and reporting unsafe acts (Unsafe Act Auditing) associated with all crew activities. In addition, should the Company implement any HSE scheme that involves Contractor personnel, or would benefit the operation, Contractor shall assist by providing full co-operation including the release of reasonable numbers of personnel for training.

Health, Safety and Environment Procedure

C. TRAINING C.1 Basic Training Contractor shall at its own expense ensure that all Contractor Group Personnel have been given the necessary safety and job related training prior to the start of the Services. This training shall include that required by law, by Company regulations, and by Contractor’s own HSE policy and HSE management system. Contractor will provide copies of relevant certificates to Company prior to mobilization of personnel to offshore installations or facilities. Details of required Training may be found in Table 1 below: (Note – all personnel traveling to an offshore work location must be in possession of a valid HUET and Sea survival certificate, issued by an OPITO approved training provider) Table 1 BASIC TRAINING & CERTIFICATION REQUIREMENTS COURSE TITLE Basic Safety, Sea Survival and Fire Fighting Courses Helicopter Underwater Escape Training (HUET) First Aid

ATTENDANCE GROUP All personnel who spend 5 or more nights offshore at any one visit or exceeding more than 20 days cumulative per year. All personnel who are required to travel offshore by helicopter and stay overnight. All personnel who are designated First Aiders

MIN. COURSE DURATION 3 Days

VALIDITY

1 Days

4 years

3 Days

3 Years

4 years

C.2 Helicopter Briefing All Contractor Group Personnel are required to attend a helicopter briefing prior to traveling on a helicopter.

Health, Safety and Environment Procedure

D. ENVIRONMENT D.1 General Contractor shall pay due regard to the environment by acting to preserve air, water, animal and plant life from adverse effects of Contractor’s activities, and to minimize any nuisance which may arise from such operations. This shall be consistent with Premier Oil Environmental policies and objectives. Contractor shall adhere to existing national statutory regulations concerning environmental damage resulting from the performance of the Services and in particular any specific environmental requirements which may apply to the site offshore and its surroundings. Proper planning will be carried out before any operations commence to ensure the highest standards of environmental protection and restoration where appropriate. D.2 Housekeeping Contractor will be responsible for maintaining good housekeeping continuously throughout the duration of the Services with due regard being paid to tidiness, ensuring that access ways and emergency exits are kept clear at all times and without exception. All gaps such as that caused by the removal of gratings must be securely fenced off and the grating stored so that it does not become an obstruction or “trip hazard". D.3 Safe Handling of Substances Contractor shall be responsible for the control and safe handling of all substances potentially hazardous to health, stored on its facilities. Contractor shall maintain an up to date file or database of all such substances and their Material Safety Data Sheets (MSDS). Contractor shall also supply Company with copies of these MSDS as soon as they are despatched to the Worksite. MSDS will contain the following information as a minimum: a) b) c) d) e) f) g) h)

chemical identification and data fire and explosion (Flash point temperature, flammable limit range, auto ignition temperature) health aspects (nature of hazards TLV-STEL, TLV-TWA) emergency procedures (Fire fighting, agent, spillage, personnel exposure, first- aid) environmental (emissions to atmosphere, spillage, neutralizer procedure, waste disposal) transportation procedure personnel protective equipment to be worn Storage requirements

Contractor shall have in place a suitable means of communicating the safety requirements for handling all substances that have the potential to be a health hazard and will ensure that appropriate handling equipment, and Personal Protective Equipment, as advised by the MSDS, is available and used each time such substances are handled. Contractor shall ensure that all substances are stored in compliance with its MSDS. D.4 Local Customs, Cultural and Religious Considerations Contractor shall ensure that all local customs, cultural and religious requirements are respected and that suitable facilities are available for the observance of these by local employees.

Health, Safety and Environment Procedure

HEALTH, SAFETY, ENVIRONMENT AND SECURITY MANAGEMENT SYSTEM Premier Oil operates an integrated Health, Safety, Environmental and Security Management System (HSES Management System). This has been developed to ensure that our Policies are systematically applied, and that best industry practice is adopted within all operations. The Management System comprises seven elements and is based on the industry model prepared by the Association of Oil and Gas Producers (OGP). It also embraces the requirements of International standards ISO 14001 and OSHAS 18001. The HSES Management System applies to all aspects of Premier's business activities and at all levels of the organization

The Premier Oil Production Operations and Global Drilling Function are certified to ISO 14001 and OSHAS 18001.

Health, Safety and Environment Procedure

Health, Safety and Environment Procedure

Health, Safety and Environment Procedure

EQUIPMENT AND OPERATING STANDARDS For the following items, Contractor shall supply to Company, Contractor’s approved operational standards which shall be used during the performance of the Services. The following descriptions are intended as minimum guidelines to be used in assessing these standards. Upon Company’s agreement of the standards, they shall be included as Attachments to this document and covered in a bridging document that links the Company and Contractor standards and procedures. The Contractor shall apply such agreed standards throughout the course of the Services. Equipment proposed for the Services shall be subject to Company’s pre-mobilization inspection and Company shall reject and require the replacement of any equipment it deemed unfit, unsafe or inadequate for the Services. 1.

Tools & Equipment All Contractor's and Company’s equipment and tools shall only be operated by competent personnel. Contractor shall ensure that all Contractor's machinery, equipment, facilities, and other items associated with or utilized in the Services are maintained in a safe, sound and proper condition, and comply with laws, regulations, and the Contractor's requirement. Contractor shall ensure that all tools and equipment and temporary facilities and other items used in the Services, whether purchased, rented or otherwise provided by Contractor are in a safe, sound and good condition and are capable of performing the function for which they are intended. If any tool or item of equipment is in the judgment of Company unsafe or incapable of performing the work for which it is intended, Contractor shall repair and/or replace such defective tools and equipment used in the Services at Contractor's own expense. Contractor shall ensure that all rotating or moving parts of all tools and equipment are adequately guarded to prevent accidental contact by personnel. Every power-driven machine should be provided with adequate means, immediately accessible and readily identifiable to the operator, of stopping it quickly, and preventing it being started again.

2.

Abrasive Wheels (Including Portable Grinders) Contractor shall ensure that safety protection in the form of goggles and/or shields are provided and utilized by the personnel working with grinding machines and/or abrasive wheels. Contractor shall ensure that only trained and competent personnel are permitted to carry out grinding work and change out discs on portable grinders. When changing discs on a portable grinder, it is imperative that a suitable replacement disc is fitted and in the correct manner. Contractor shall maintain a complete and current list of such authorized and competent personnel. Contractor shall make the list available to Company when required.

3.

Diesel Engine Driven Pumps, Compressors, Welding Set, Etc. Diesel engine driven pumps, compressors, welding sets, and any other diesel engine driven equipment must be located in a safe area. If such equipment is to be used in a

Health, Safety and Environment Procedure

hazardous area classified as a Zone 1 or 2 area, Contractor shall ensure the equipment complies fully with EEMUA 107 requirements (Recommendations For The Protection Of Diesel Engines Operating in Hazardous Areas). Any such equipment must be well maintained and in good operational order and prior to use may be inspected by Company's Representative. 4.

Electrically Powered Portable Tools And Equipment Contractor shall ensure only trained and competent personnel shall use portable electrically powered tools and equipment. Electrically powered portable tools and equipment shall be 110 volts centre-tapped or 240 volt tools subject to the following conditions: 1)

they shall be double insulated, and

2)

the power source shall be equipped with an earth leakage circuit breaker/ ground fault interrupter (ELCB/GFI) with a trip sensitivity not exceeding ten milli-amps (10mA).

Contractor shall ensure that all portable equipment is disconnected from the power supply when not in use. All flexible cables shall be in good and safe working condition. Taped joints in cables shall not be permitted. Contractor shall have a written procedure for checking and maintaining portable electrically powered hand tools and equipment in place. Any defective electrical tool and equipment shall be immediately prohibited from further use until it has been satisfactorily repaired. Defective items which are no longer serviceable shall be removed from storage or use and scrapped. Contractor shall maintain accurate records regarding the maintenance and disposal of such equipment. The Contractor shall appoint a person(s) to be responsible for such maintenance. 5.

Hand Tools Contractor shall ensure that all tools supplied are in good condition and fit for their intended use. Damaged tools which are unfit for use must be removed from service immediately and if they cannot be repaired, they must be scrapped.

6.

Cranes & Draw Works (if applicable) Only experienced, trained and competent personnel shall be assigned as crane operators to operate cranes. All crane operators shall be subjected to yearly medical examination and records of the examination shall be made available to Company when requested. All cranes and draw works supplied by the Contractor must be inspected (including all associated safety equipment such as load indicator, stops, brakes, etc.) by a qualified certifying agent and load tested in accordance with an approved certifying agency procedure in accordance with the schedule stated herein below. Contractor must provide Company a copy of the "Fitness Certificate" or "Statement of Fact" issued by the certifying agency attesting to the inspection, load testing, and fitness of the crane for the Company required inspection and load testing. Schedule - Inspection and load testing of the crane(s) are required:

Health, Safety and Environment Procedure

1)

prior to commencement of the Services, and

2)

after any significant modifications or repairs.

If the certifying agent or Company considers it necessary to supplement the visual inspection by methods of non-destructive testing and/or the manufacturer's inspection and certification, Contractor shall accede to such request at Contractor's expense. 7.

Lifting Appliances and Loose Lifting Tackle (if applicable) Contractor shall ensure that any lifting appliances supplied by Contractor shall, be load tested, inspected by a qualified certifying agent in accordance with an approved certifying agency procedure prior to mobilization and subsequently each (12) months. In addition to these items being inspected before use, they shall be subjected to a six (6) monthly inspection by a Company approved certifying agency or by a person trained and duly authorized in writing to be competent to inspect lifting appliances. Safe working load (SWL) and radius charts shall be available for all lifting equipment and shall be marked on the equipment. Contractor shall note its responsibilities to ensure the safety of the lifting appliances for the duration of this Contract. A colour coding system shall be used to demonstrate that a pre-hire inspection has been carried out. Contractor shall keep a register or database detailing each lifting appliance and piece of loose lifting equipment detailing the following:

i ii iii iv v vi 8.

identifying number equipment description certificate number date of last test or inspection result of test or inspection remarks TRANSPORTATION CONTAINERS HANDLING (IF APPLICABLE) Contractor shall transport its equipment by sea in suitable metal transportation containers. All transportation containers shall have their net weights and safe working load (SWL) clearly indicated. The indicated net weight shall never exceed the container’s SWL. The containers shall be correctly secured and properly balanced by trained and/or experienced rigging/slinging personnel. For shipment to offshore facilities, containers of full height or over 1.6 meter (5.0 feet) shall be pre-slung with appropriate lifting tackle, which must be inspected for compliance with Company colour-coding procedures. A copy of the rigging certificate must be attached to the manifest accompanying the container. Lifting equipment (slings, shackles, pad eyes, etc) shall be correctly rated and certified fit for the lifting/lowering operations. They shall remain permanently attached to the container and shall be used for no other purpose. It is essential that Contractor’s personnel engaged in container handling are trained, experienced and competent. The selection of correct equipment for the handling operation; employing equipment in correct manner; transferring container utilizing an established method; securing container following the transfer all demand responsible actions.

Health, Safety and Environment Procedure

9.

Pressurized Systems Pressurized systems shall be properly maintained, and regularly inspected and where necessary examined by a competent person in accordance with a written scheme prepared by Contractor. The intervals between thorough examinations for particular pressure vessels should be not greater than those specified by the competent national authority, and in any case not less than five yearly.

10.

Scaffolding and Access All work performed at a height of 2M. above ground or deck or permanent access platform level or if a pre job risk assessment identifies a hazardous situation / activity that requires this type of mitigation (i.e. working overboard), shall be executed from suitable means of access. This will require the use of ladders and/or scaffolding dependent on the nature of the work. Where scaffold materials are used they shall be clean and corrosion free and free of incipient faults. Scaffold boards will be free from twists and splits and will not be painted. Scaffolding, when required, will only be erected by persons who have received training in scaffolding and are deemed competent by Company by virtue of this training and a physical assessment of their capabilities .

11.

Personal Protective Equipment Contractor shall, at its own expense, supply Contractor Group Personnel, with adequate personal protective clothing and other protective equipment which shall be maintained in good condition or replaced, and shall be worn on all relevant occasions as indicated by notices, instructions and good practice. Contractor shall ensure that all personnel and visitors shall set an example by wearing such equipment in the appropriate circumstances, even if not actively engaged upon the Services, as the example set by this is of paramount importance. Safety helmets, safety footwear, eye protection, hearing protection, clothing, gloves and personal flotation devices shall be required as described in Contractor’s Safety Procedures. Contractor will ensure that these are worn where required and when at work.

12.

Safety Equipment and Fire Protection Contractor shall at its own expense provide sufficient fire extinguishers, and other safety equipment, approved to ISO or equivalent standards, as may be specified in connection with this document, and shall maintain this equipment in a professional manner as prescribed by legal and industry standards. In addition, Contractor shall keep up-to-date records of all said equipment and its maintenance. Ready access by all persons at the Company location to all fire extinguishing and safety equipment must be maintained at all times. Locations of such equipment must be clearly marked in line with safety equipment plans. The use of colour codes to properly identify types of fire extinguishers is recommended. All persons shall have the basic knowledge of how to operate the equipment, and the procedures to be followed in the event of fire. Contractor shall provide adequate safe storage for flammable substances in safe locations.

Health, Safety and Environment Procedure

13.

Maintenance Contractor will maintain all its equipment to the standard required by the manufacturer, as a minimum. Current and up to date records of all planned and breakdown maintenance will be kept by Contractor which may be inspected by Company at any reasonable time. All equipment and structures both fixed and temporary are to receive regular routine maintenance. This shall ensure that the safety of personnel who are responsible for operating the equipment is not jeopardized. Particular attention shall be paid to handrails, safety chains and bars, access ladders and raised platforms.

Health, Safety and Environment Procedure

MEDICAL REQUIREMENTS A. HEALTH For the following items, Contractor shall supply to Company, Contractor’s approved health and welfare standards that shall be used during the Services. A.1 Alcohol and Narcotics Premier Oil Indonesia enforces a Drug and Substance Policy on all of its sites, including ensuring that passengers are “fit” to board and fly on aircraft or vessels traveling to our sites – see the Premier Oil Drug and Substance abuse policy attached. The Contractor shall adopt and enforce a drug alcohol policy that prohibits the consumption of any alcoholic liquor, narcotic or other intoxicating substance, while on duty during the performance of the Services, and which prohibits personnel under their respective control and authority from being under the influence of any of the above while on duty during the performance of the Services. It shall not be a violation of this clause for a person to consume medically prescribed medication so long as he has informed on site medical personnel and it has been approved as not likely to impair his ability to safely perform his assigned tasks. A.2 Health and Fitness Contractor shall ensure (as far as is reasonably practicable) that all Contactor Group Personnel are medically fit and healthy. In order to ensure compliance with Government and Company Regulations Contractor’s company appointed Physician should issue medical certificates. The following shall be considered the minimum requirement, for working in an offshore / remote environment. MEDICAL TESTS REQUIRED VALIDITY Below 35 years -- 3 yearly , Between 35 to 45 years -- 2 yearly , Above 45 years -Annually Basic Tests 1. Personal History (occupational history, past diseases, present diseases, family history, life styles - nutrition, exercise, smoking) 2. Physical examination (body height & weight, blood pressure, waist circumference, eyes including refraction & colour blindness, ENT, Dental, neck chest, breast, abdomen, pelvic, arms legs, skin, neurology) 3. Treadmill test 4. Clinical Laboratory (Blood – total cholesterol, HDL, LDL, Triglycerine, glucose, Hb, WBC, Diff count, Ht, Thrombocyte, BSR, SGPT, SGOT, Creatinin, Uric Acid and Urine Test) 5. Chest X-ray (for pre-employment medical examination only) Contractor should arrange for the medical certificates of the contractor group personnel to be issue to PONSBV Chief Medical Officer for consideration for working offshore approval.

Health, Safety and Environment Procedure

A.3 Travel Offshore When Contractor group personnel required to travel offshore, each personnel should fill out an Offshore Visit Authorization (OVA) form and complete the Health Questionnaire for Visitors to Offshore Workplace. The personnel that will travel shall complete this questionnaire by themselves. The medical certificate and questionnaire will be reviewed by a Premier medical Officer for consideration of visit approval. The submission of OVA shall not be a guarantee that the journey has been approved. All visitors to our offshore facilities must be in possession of a valid HUET (Helicopter Underwater Escape Training) and Sea Survival Certificate’s which have been issued by an OPITO approved certifying body. Dangerous good i.e. butane lighters, flammable, radioactive or toxic materials and weapons are not allowed to be carried in personal baggage on aircraft going to offshore locations. Security checks will be conducted at the check in points for such items.