Impact of OSHA ‘94 (Amendment) to the oil industry.pptx

Impact of OSHA ‘94 (Amendment) to the oil industry.pptx

1. IMPACT OF OSHA ‘94 (AMENDMENT) 2022 TO THE OIL INDUSTRY PREPARED AND PRESENTED by JAFLIS JAAFAR

2. IMPACT OF OSHA ‘94 (AMENDMENT) TO THE OIL INDUSTRY Introduction “ OSHA ‘94 (Amendment) 2022 “ Key Changes Managing Risk IMPACT & CHALLENGES To O&G Players

3. HISTORY OF INEFFECTIVE ACCIDENT PREVENTION

4. Bhopal Disaster (1984) Location: Bhopal, India Casualties: 15,000 fatalities Overview: A gas leak from the Union Carbide pesticide plant released methyl isocyanate (MIC) gas into the surrounding community. Piper Alpha Disaster (1988) Location: North Sea, UK Casualties: 167 fatalities Overview: A gas leak due to maintenance errors led to a catastrophic explosion and fire. Deepwater Horizon Spill (2010) Location: Gulf of Mexico Casualties: 11 fatalities Overview: An explosion on the BP-operated rig resulted in the largest marine oil spill in history, releasing approximately 4 million barrels of oil into the Gulf

5. Common Findings On A ll M ajor Accident Management System Failure Inadequate or lack of Risk Assessment Poor Communication Inadequate Training and Supervision Regularly Breaches of Safety Regulations Lack of Ownership

6. OSHA ‘94 (Amendment) 2022 – “key changes”

7. ADDITIONAL DUTIES FOR EMPLOYERS/PRINCIPAL The Amendment Act also provides additional duties for employers, self-employed person and principals which is a proactive approach towards reinforcing preventive safety culture in the workplace.

8. ENHANCED DUTIES OF PRINCIPAL 18A It shall be the duty of every principal to take, so far as is practicable, such measures as are necessary to ensure the safety and health of (a)Any contractor engaged by the principal when at work (b)Any subcontractor or indirect subcontractor when at work and (c) Any employee employed by such contractor or subcontractor when at work Joint Liability: The Amendment Act broadens the categories of individuals who can be held jointly and severally liable for offences committed by companies . (directors, managers, partners … etc involved in the management. Unless ……… the individual is able to prove ( i ) that the offence was committed without his knowledge, and (ii) without his consent or connivance and he had taken all reasonable precautions and exercised due diligence to prevent the commission of the offence.

9. ADDITIONAL DUTIES FOR EMPLOYERS/PRINCIPAL Duty to develop and implement procedures to deal with emergencies. - Section 15(2)(f) Duty to conduct and implement risk assessment in relation to health and safety risk. - Section 18 B Duty to ensure specific employees’ attendance of occupational safety and health training course . Section 31A Requirement for appointment of occupational safety and health coordinator

10. INCREASE PENALTIES FOR BREACH

11. “MANAGING RISK”

12. Managing Risk “The essence of risk management is to avoid high risks , manage medium risks and live with low risks .”

13. KEY ELEMENTS OF THE PRINCIPLES OF PREVENTION Avoiding Risks Evaluating Risks that Cannot Be Avoided Combating Risks at Source Adapting Work to the Individual Adapting to Technical Progress Replacing Dangerous with Non-Dangerous or Less Dangerous Options: Developing a Coherent Overall Prevention Policy Prioritizing Collective Protective Measures Over Individual Measures Providing Appropriate Instructions to Employees

14. ALARP “ As Low As Reasonably Practicable” To reduce a risk to a level which is as low as reasonably practicable…. b alancing reduction in risk against the time, trouble, difficulty and cost of achieving it .

15. Elimination Modification to the process method or material to eliminate the hazard. Substitution Replace the material, substance or process with a less hazardous one. Engineering Modification to the process method or material to eliminate or reduce the hazard. Separation Isolating the hazard from persons by safeguarding, or by space or time separation. Administration Adjusting the time or conditions of risk exposures. Training Improving skills therefore making tasks less hazardous to persons involved. Personal protective equipment T he last resort , appropriately designed and properly fitted equipment where other controls are not practicable. Hierarchy of control

16. IMPACT & CHALLENGES To O&G Players

17. Compliance vs Penalties ( Understanding Reg ) Increase Liabilities Liable unless… Enhance Risk Management Mandatory by law… Competencies Resources Constraint ( OSH competency) Key position HSE savvy Contractual Obligations Specific & clear HSE requirement.. Training Specific Competency training Maintaining competitiveness Increase operation/construction cost IMPACT & CHALLENGES To O&G Players

18. Key Factors for effective PoPs’ Implementation In the O&G Industries 1. Leadership Commitment Prioritize safety, provide resources, and actively participate in safety activities Managers and supervisors must be held accountable for leading by example. 2. OSH Policies & Procedures Clear, regularly reviewed, and reflect the specific needs of the organisation 3. Empowered Employees Responsible and comfortable reporting unsafe conditions without fear of reprisal

19. 4 Effective Risk Management Proactive processes to identify and address workplace hazards and managing the risk 5 Communication & Training Robust communication system and ongoing training to ensure all employees are informed and trained on safety. 6 Continuous Improvement/Benchmarking Regular Audits, inspections, and monitoring help identify areas for improvement Key Factors for effective PoPs’ Implementation In the O&G Industries

20. BENEFITS FOR O&G PLAYERS? Immediate Impact: Increase CO$T$ (initially) Assurance Programs, Resources, Risk Mitigation efforts, meeting Reg Compliance, Penalties for non compliances. Benefits: SAFER PLACE OF WORK. INCREASE PRODUCTIVITY. ENHANCED REPUTATION MORE COMPETITIVE

21. CONCLUSION Effective PoPs = Sustainable OSH Culture The beliefs, perceptions, and values shared by employees within an organization regarding risks. Is present only if and when each and every employee, no matter the level, is responsible and held accountable for creating and maintaining a safe work environment. OSH CULTURE INCREASES COMPLIANCE

22. THANK YOU

23. 1 .Comprehensive Risk Assessments Hazard Identification Risk Assessment 2.Hierarchy of Controls Elimination Substitution Engineering Control Admin Control PPE 3.Employees participation Regular Training Encourage Feedback Systematic Implementation of PoP

24. 4 .Effective Monitoring and Evaluation tools Regular Review Establishing KPI measurement 5 .Generative Safety Culture ZeTo Rule / Openess Management Recognition Systematic Implementation of PoP