OMV Petrom S.A.

Corporate Standard

Title:

Contractor HSSE Management

Objective:

Contractor management process establishing roles and responsibilities

with regard to compliance of contractors to Petrom Group HSSE
standards.

Target Group:

All Petrom Group personnel working with contractors

Scope:

Petrom Group
OMV Petrom S.A.

Created by

PG-S

Alastair Bennet

Content checked by

PG-S

Simon Mitchell

Quality checked by

PG-A

Mihai Berinde

Approved by

CEO

Mariana Gheorghe

Organizational
entity

Name

Other excluded companies

Other included companies

Date

Signature

As approved in the Petrom Executive Board Meeting on

This document is the exclusive property of OMV Petrom S.A. (hereinafter referred to as Petrom or the
Company). Any reference in the document to Petrom or the Company will be construed as a reference
to the legal person of OMV Petrom S.A.
This document cannot be communicated either fully or partially to any third party without the written consent
of PG-A. Third parties are understood to be persons or companies that are not part of OMV Group.
In the interests of simplicity and readability, the language of this statement is as far as possible gender neutral.
Where applicable, the masculine incorporates the feminine.

1.

Introduction

OMV Petrom S.A. Corporate Standard - ST HSSE 068 E

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Contractor HSSE Management
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Contractors are an essential part in the development of Petrom Group business objectives and thus it is
critical that our contractors are aligned with the expectations of Petrom Group. A key component of
these expectations is the continuous improvement of Health, Safety, Security and Environmental
(HSSE) performance.
The overall objective of this standard is to describe a process by which Petrom Group shall manage our
contractors from selection through to close out of the contract with the primary focus on the critical
operational part of this process.
The standard applies to all contracted field service activities, within all Group Business Segments and
Corporate Functions, and is provided to assist all personnel in clarifying the process of managing
contractor HSSE performance in operations. This standard does NOT apply to office based consultation
activities. Material suppliers are excluded, UNLESS such activities are assessed as having high potential
consequences to Petrom Group, see section 2.1.
Petrom Group recognizes a risk based approach to managing our work and that the work performed by
our contractors allows for the most efficient and effective use of our limited resources. In addition to
recognizing contracted activities that have high risk, it is essential to ensure that competent Petrom
Group personnel are assigned and given the responsibility and accountability of managing these
activities. While this document is primarily aimed at high and medium risk activities, it is applicable to
low risk activities as considered necessary by the Contract Holder. Guidance on risk assessment is given
in Chapter 2.1.
While compliance with the OMV Group Corporate Contractor HSSE Management Standard is still
required for the identification of Contract Owner and Contract Holder, there exists the additional special
circumstance for Petrom Group where a significant number of contractors are managed under frame
contracts.
This document shall describe these additional requirements to ensure the adequate and sufficient
supervision of contractors working under frame contracts.
Frame contracts are understood to represent the setting up of a contract applicable for a particular scope
of work with a number of contractors approved and contracted to be able to perform this agreed scope of
work. Personnel in Petrom Group are then able to call off contractors to execute this scope of work
through this contract without having to go through the whole contracting procedure. This call off can be
initiated through a Purchase Request against the contract.
Consideration of this contracting model highlights the problem of clearly identifying the contract
holder: Call off for the same contractor to work in several different remote locations throughout
Romania by centrally located department (i.e. Surface Integrity department).
Call off for the same contractor to perform work at several different sites in different assets
having been called off by the different Operations Managers in the assets.
Call off for same contractor to do similar work in different divisions (I.e. E&P and R&M) by
centrally located department (I.e. Procurement department).

2.
2.1.

Regulatory content
HSSE Risk Assessment of Contracted Activities

A risk assessment of the contractor activities shall be performed resulting in a risk ranking of our contractors
using the OMV Risk Matrix for the following areas as a minimum:
Health & Safety
Security
Environment
Community Relations & Reputation
OMV Petrom S.A. Corporate Standard - ST HSSE 068 E
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Asset loss
The risk assessment shall be team based with participants from experts and supervisors associated with the
work to be done. The assessment shall be directed by the Contract Holder for the work being planned and who
will also ensure the sign off the work as completed.
The description of the process for using the risk matrix and the risk assessment are available in the OMV
Petrom S.A. Corporate HSSE Recommendation REC HSSE 002 E HSSE Pre-qualification of Contractors.
The output of this HSSE risk ranking process identifies the high, medium and low risk contractors indicating
which contractors (and contractor activities) must comply with this standard.
A generic HSSE risk assessment has been performed for contracted activities and services at the current most
detailed Procurement Category level 4. This risk assessment shall continue to be repeated on an annual basis.It
shall remain the responsibility of the Contract Holder (See OMV Petrom S.A. Corporate Standard ST HSSE
068 E Contractor HSSE Management) to confirm that the risk assessment originally performed at the time
of initiation of the contract is still valid and current.

2.2.

Nomination of the Divisional Contract Owner and Contract Holder

In order to ensure a clear definition of responsibilities and accountabilities with regards to the management of
contractors, it is necessary to identify the competent personnel within Petrom Group to manage these
contractors, in particular the Divisional Contract Owner and the Contract Holder.
The nomination of the Divisional Contract Owner for high risk contracts, and later on for all medium and low
risk contracts, is the task of the beneficiary (and also includes them as Divisional Contract Owner).
Nomination of Contract Holder is done by the Divisional Contract Owner. This nomination has to be in a
written form (and entered into the appropriate contract database SAP), clearly defining the contract scope
and the roles and responsibilities. The Procurement function in charge with the respective contract has to
ensure that both Contract Owner and Contract Holder have been officially nominated and entered into the
system.
In case of cross divisional frame contracts the Supplier Relationship Manager (nominated by Procurement)
organizes a contract management board including all Divisional Contract Owners whenever required but at
least once a year. The contract management board ensures a comprehensive and cross-divisional information
exchange of the supplier HSSE performance within the concerned frame contract. It also acts as the next
higher escalation instance.
Roles and responsibilities in general terms of the Contract Owner and Contract Holder will be defined in the
Procurement regulation on Supplier Relationship Management. Sections 2.2.1.and 2.2.2.below focus on the
HSSE responsibilities of Divisional Contract Owners and Contract Holders.

2.2.1.

Divisional Contract Owner

The Divisional Contract Owner is a senior manager who sponsors the delivery of activities to meet business
objectives and is accountable for providing adequate resources to control and manage the execution of the
work. He is the person who sets up the general Scope of Work (SOW) for the requested services or equipment.
Note: The role of the Divisional Contract Owner described under the current Chapter should NOT be confused
with the job title Contract Owner, included in OMV Petrom SA organizational chart and exercised in
various organizations (e.g. E&P / Domestic Assets/ Demand Management). The Divisional Contract Owner
should be understood as a role that can be undertaken by different operational senior management functions
and should not be directly linked to a formal job title/ position in the Companys organizational chart.
Examples of Divisional Contract Owners would be:
Asset manager or country manager
Business Unit director or Corporate Function director
Major plant manager (i.e. refinery, power plant)
Senior department manager within a Business Unit (i.e. drilling, work over)
As accountable for the overall performance of the contract, the Divisional Contract Owner:
OMV Petrom S.A. Corporate Standard - ST HSSE 068 E
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Has good knowledge of the contract, specifically of the HSSE requirements and other
requirements as described in associated documents from Procurement Department
Brings in business context and perspective for the contracted activity
Appoints a competent Contract Holder(s)
Assigns the necessary resources to support the Contract Holder in the execution of the
work
Is responsible that the Contract Holder fulfills their role
Serves as an escalation instance for unsolved supplier issues on the contract holder level
The termination of contracts is described in the Procurement Guideline.

2.2.2.

Contract Holder

The Contract Holder is the individual who is responsible to prepare specific documentation (detailed SOW,
operational and HSSE requirements, KPIs) to be sent to Procurement in the initial phase, who is accountable
for the execution of the work and who interfaces with the contractor on a regular and routine basis. In general,
the Contract Holder should be the person ensuring the origination of the purchase request and the signing of
the Service Entry Sheet at completion of work.
Note: The role of the Contract Holder described under the current Chapter should NOT be confused with
various job titles included in OMV Petrom SA organizational chart (e.g. contract administrator, contract
planner, contract manager, contract owner, contract responsible, etc). The Contract Holder should be
understood as a role that can be undertaken by different functions and can even be the equivalent of the above
mentioned job titles (i.e. the persons acting under the above mentioned job titles may function as Contract
Holder). However, the role of the Contract Holder is undertaken as an assignment of the Divisional Contract
Owner and should not be directly linked to a formal job title/ position in the Companys organizational chart.
Examples of Contract Holders would be:
Construction site managers
Project managers
Facility managers or depot managers
Logistics/transport coordinators
Operations managers
Maintenance managers or supervisors
Any other functions nominated by the Contract Owner
As accountable for the performance of the contract, the Contract Holder has the following responsibilities
referring to:
Planning (Plan):
Defines and communicates requirements to Divisional Contract Owner and Operational
Procurement Department (PG-P) before the tendering process starts
Asks for documents on legal and contract specific HSSE requirements to be used in the
tendering process
Coordinates the technical pre-qualification (incl. the HSSE pre-qualification)
Has an intimate knowledge of the contract, specifically the HSSE requirements and other
contractual requirements placed on the contractor, such as reporting, management of
change, sub contracting process, legal and regulatory matters
Informs the Operational/ Field/ Projects HSSE team about the scope of work of the
required contracted services when the decision for using Contractors is made
Asks the Operational/Projects HSSE team to nominate an HSSE specialist(s) for the
specific Contract
Assesses together with the nominated HSSE specialist, the risk level of the planned work
Implementation (Do):
Communicates at all times with the Contractor regarding HSSE issues
Invokes and chairs a kick off meeting for all relevant parties associated and involved with
the work, including the operational team from the local Petrom Group office. Minimum
items to be discussed:
OMV Petrom S.A. Corporate Standard - ST HSSE 068 E
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 key performance issues and metrics to measure performance

reporting procedure
meeting schedule and format
Ensures that any regulatory or required formal handover of documents and first induction
in the field is done by Operational/Projects HSSE personnel before starting work
Ensures that the contractor executes work in accordance with the contract including scope,
schedule, budget, HSSE and quality
If necessary, ensures the implementation of ad hoc HSSE improvement measures by the
supplier
Ensures that the Contractor maintains good relationships with the communities and that the
Contractors activities do not endanger the Companys relations with communities
Has regular liaison meetings with the local Petrom Group operations team and HSSE
personnel.
Measurement and Evaluation (Check):
Ensures formal, documented, regular and timely review meetings with the Contractor site
management to monitor progress and report performance (for a recommended agenda, see
OMV Petrom S.A. Corporate Recommendation REC HSSE 003 E Contractor Meetings
and Reports)
Organizes HSSE Forums with Contractors and HSSE specialists for sharing learning and
best practices (as applicable)
As responsible for the daily contract delivery, the Contract Holder maintains an overview
of the current contract performance vis--vis HSSE, cost, schedule, scope and quality
Ensures contractor reports against defined criteria (including reporting indicators and
KPIs) at contract defined intervals
Provides detailed explanation of performance as reported (spend plan, leading indicators
and overall contract performance)
Review and Improvement (Act):
Performs regular site visits together with HSSE personnel documenting findings from
Management Walk Arounds (MWA), site inspections or site audits depending on focus and
depth of review.
Ensures inspection and audit actions are referenced, tracked and closed-out
Ensures the implementation of improvement plans to deliver top quartile contract
performance to an agreed timeline
Holds the persons responsible for the action items of the improvement plan to account on
delivery
Provides an overview of progress on the improvement actions to close performance gaps to
top quartile and on agreed value improvement measures
Documents Contractor's HSSE performance and proposes remedial actions, if the case.
Coaches Contractors with unsatisfactory HSSE performance and follows-up on
implementation of remedial actions
Maintains an overview of the contractor performance for consolidation at the end of the
contract for the final contractor meeting, and to feed-back to the Procurement department
to update the contractor risk assessment and performance database
Ensures the signing of the Service Entry Sheet necessary to indicate satisfactory
completion of work.
The Divisional Contract Owner and Contract Holder will be regularly assisted in their function by
nominated persons from other departments, mainly Procurement and HSSE, as described in the OMV
Petrom S.A. Corporate Procedure P HSSE 003 E Monitoring of Contract Performance during
Contract Execution valid edition. In addition, the Contract Holder may engage and make use of other
resources (e.g. operational) for ensuring the fulfillment of the responsibilities described above, however he is
ultimately accountable for maintaining an overview and ensuring that all described activities are performed.
Independent of the type of contract model used to award work (such as public procurement contracts, standard
contracts, frame contracts, contracts aligned as per FIDIC "colored" books) the person responsible and
accountable for calling off the work to be done against any contract, is the Contract Holder (person that
originates or ensures the origination of the purchase request, respectively signs or ensures the signature of the
Service Entry Sheet). This may mean that the same contractor is working at several different Petrom Group
OMV Petrom S.A. Corporate Standard - ST HSSE 068 E
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sites but whoever assigned the scope of work and called off the work is the Contract Holder. Examples of
Contract Holders:
A Project Manager using a frame contract for cranes in seven different locations in
Romania is the Contract Holder as he will sign the Purchase Request for the work to be
called off against the frame contract
A Drilling Manager in a Venture generates a purchase request for a Well Head for a new
well about to be drilled.
A Geophysicist generates a purchase request for a seismic interpretation to be done by a
contractor
An Asset Production Manager calls off transport services using a frame contract; he will
ensure the initiation of the purchase request and the signing of the service Entry sheet once
work is completed (if needed).
2.3.

Contractor HSSE Management Process

This section covers the main stages in the contractor management process as defined by the Procurement
department with an HSSE focus: from project development and planning to close-out and final evaluation. It
also covers all related responsibilities of the involved Petrom Group organizations.
The typical stages in the contractor management process are shown in Annex A.

2.3.1

Contracting Process Description

The starting point for the planning of the contracting process is the definition of work or services in sufficient
detail to allow the selected contractors to have a full understanding of the work required. This detail is
documented in the Scope of Work or the Basis of Design documents. The project planning refers also to
contracting and sourcing strategy, schedule, budget and other project management topics.
This stage of the contracting process is under the responsibility of the originator of the Purchase Request
(usually directed by the Divisional Contract Owner and executed by the Contract Holder).
The HSSE contractual requirements (applicable to all contractors) are provided by Corporate HSSE (PG-S). In
case that specialist assistance is required, for the HSSE requirements specific to the defined SOW, the
originator of the Purchase Request (Contract Holder) may ask for the support of the assigned
Operational/Projects HSSE team. Corporate HSSE Managers (Business Partners) are responsible for
communicating to each Project Requester/ Contract Holder the contact person/ team that will assist in HSSE
matters throughout the process.

2.3.2

HSSE Pre-Qualification

The purpose of the HSSE Pre-qualification is to screen potential Contractors, before entering the tender stage,
in order to ensure that only those who meet the Groups standards in terms of HSSE can be considered for
future collaborations. The central goal is to engage only Contractors that are committed and demonstrably
capable of managing the HSSE risks associated with their work.
The depth and extent of the assessment will be related to the level of HSSE risks associated with the
contracted activities.
The Pre-qualification of Contractors is performed from both technical and HSSE point of view. From the
HSSE perspective, the pre-qualification is mandatory for the following criteria:
all tenders falling under high risk categories
all tenders above EUR 100,000 for medium risk categories
all tenders above EUR 200,000 for low risk categories
For all other type of projects, the HSSE Pre-qualification will be used as considered necessary by the Contract
Holder.
NOTE: The pre-qualification process is intended to be done independent of the tendering process so that the
bulk of contractors on the bidders list are pre-qualified and is a requirement to get onto the approved bidder
OMV Petrom S.A. Corporate Standard - ST HSSE 068 E
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list. The HSSE pre-qualification during the tender/bid process is intended ONLY for new contractors or those
who have scored low in a previous pre-qualification.
The Contract Holder is responsible for the observance of these Pre-qualification criteria and for informing the
HSSE organization whenever HSSE Pre-qualifications are required.
All business divisions (BD) will operate an equivalent methodology for assessing Contractors HSSE
capabilities. For this purpose, a Stoplight banding system was developed. Based on a score sheet, the
Contractor is banded according to the score obtained for each question:
Green (above 50% of maximum score) denotes unconditional capability to meet OMV/ Petrom Group
HSSE requirements;
Yellow (between 30-50% of maximum score) denotes conditional capability to meet OMV/ Petrom
Group HSSE requirements. Yellow banded Contractors will be required to present an improvement plan
in order to enter the bid stage (and approved bidder list); and,
Red (below 30% of maximum score) denotes that Contractor capability does not meet OMV/ Petrom
Group HSSE requirements.
A differentiated approach for new and existing contractors is described in the OMV Petrom S.A. Corporate
Recommendation REC HSSE 002 E HSSE Pre-qualification of Contractors.
This pre-qualification process shall be completed within a 4 day period maximum, with a target of 2 days from
reception of responses by HSSE representative in order not to delay the tender/bid process.

2.3.3

Bid Opening, Evaluation and Negotiation (Tender)

The tender stage is carried out according to Procurement Regulations and is split into a technical component
(including HSSE), as well as a commercial component.
The Contract Holder leads and is responsible for the evaluation of the technical bid. Operational/Projects
HSSE may offer specialized assistance upon request, in case additional clarifications are necessary. All
bidders are required to present an HSSE plan which provides the basis for the HSSE evaluation as well as the
scoring on the pre-qualification questionnaire.
For high and medium risk projects, a contract specific pre-award HSSE capability assessment may take place.
The assessment evaluates whether the Contractor has the understanding, capabilities and resources to manage
the HSSE risks for the specific project. The depth and extent of the assessment will be related to the level of
HSSE risks and the value associated with the contracted activities. In addition, the assessment should focus on
the Contractor providing details to confirm that they have the abilities to properly manage HSSE requirements,
as opposed to Petrom Group conducting competency audits. This capability assessment may be called by the
Contract Holder for any contractor.
The following type of activities shall be subject to the above mentioned HSSE capability assessment:
All activities falling under high risk categories
All activities above EUR 100,000 for medium risk categories
Where the general activities or project are not high risk , but there may be specific high risk activities for
short periods of time , I.e. diving operations, work on high pressure equipment, working at height, etc
Operational/Projects HSSE is responsible for conducting the assessment and informing the Contract Holder of
the results. The score/ ranking obtained by the Contractor in the contract specific HSSE capability assessment
will be in accordance with the current and valid Procurement Department (PG-P) contracting procedures.
Following the technical tender, Procurement Department (PG-P), with support from the Contract Holder, will
lead the commercial bid and negotiations, in accordance with Procurement rules and regulations.

2.3.4

Contract Award

Procurement, together with the Divisional Contract Owner/ Contract Holder, decides on the best bidder and
awards the contract, in line with the principles envisaged by Procurement Regulations. HSSE requirements
provided by Corporate HSSE must be included as integral part of the contract as well as corresponding
OMV Petrom S.A. Corporate Standard - ST HSSE 068 E
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reporting and performance indicators (see generic reporting indicators and KPI set given in the OMV Petrom
S.A. Corporate Procedure P HSSE 002 E Monitoring of Contract Performance during Contract Execution).
The purchase order is placed.

2.3.5

Post-Award HSSE Requirements

This section presents the main HSSE requirements following the award of a contract, until close-out and
evaluation, with a focus on continuous Contractor performance monitoring.
2.3.5.1

Mobilization

Once the contract terms are agreed and contract awarded the execution of the work starts. At this point the
Contractor shall complete the planning for the work in detail:
Finalization and confirmation of the HSSE Plan
Bridging documents as required
HSSE induction
Site-specific trainings/ orientations
Mobilization planning logistics, site layout, camp resources, etc.
The Contract Holder shall organize and plan the agenda as well as chair a kick off meeting for all personnel
associated with the work contractors and Petrom Group personnel to go through the planned work and to
identify any issues that may arise. In addition, the expectations of Petrom Group in the execution of the work
shall be explained to the contractors to ensure they understand the behaviours expected.
An HSSE Kick-off meeting agenda is available in the OMV Petrom S.A. Corporate Recommendation REC
HSSE 003 E Contractor Meetings and Reports.
The Contract Holder will ensure that the assigned Operational/Projects HSSE professionals are invited to all
Kick-off meetings. Operational/Projects HSSE must participate in the kick-off meeting for all projects falling
under high risk categories or with a value higher than EUR 1 mln. For all other projects, Operational/Projects
HSSE will participate in the kick-off meeting as deemed necessary.
The Contract Holder is also responsible for ensuring that the Kick-off meeting is properly documented and the
minutes of the meeting are prepared and distributed to all involved parties.
For high risk projects only, the Contract Holder will also carry out a start up audit, which has the following
main HSSE objectives:
Verify the Contractors responses to the pre-award HSSE capability assessment (prequalification and tender stage assessment) and identify weaknesses that might need additional
monitoring
Verify the pre-start-up activities defined in the HSSE Plan and check that HSSE systems are in
place
Verify the condition of the technical and HSSE equipment to be used for work and the
fulfilment of HSSE requirements on the worksite (i.e. site and personnel security systems,
environmental protection systems, etc).
In general terms, the start up audit should provide the Contract Holder with confidence that the Contractor in
the field understands the HSSE specifications and that the systems put in place by the Contractor will ensure
that these specifications are met. If the audit proves to be unsatisfactory then the status of the Contractor's
progress should be carefully reviewed and, in case of serious gaps, the Contract Holder may consider the
termination/ postponement of the contract.
The start up audit shall be conducted on-site and shall include the review of documents, interviews with key
people as well as physical on-site walk-through (as applicable). During the start up audit, the Contract Holder
will be assisted for HSSE matters by Operational/Projects HSSE professionals. Following the start up audit,
the Contract Holder is responsible to ensure that all recommendations are captured in an updated HSSE Plan.
Furthermore, the Contract Holder will ensure that works have not been initiated until the requirements/ actions
derived from the start up audit have been met.
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2.3.5.2

Execution and Performance Monitoring

This section of the standard adds additional information on managing contractors in Petrom Group This is
necessary as the OMV Group standard does not fully address the centralized purchasing and mobilization
as currently done in Petrom Group
Under the contract, the responsibility for the proper supervision of the Contractor's personnel on HSSE matters
and the fulfillment of HSSE requirements rests with the Contractor himself. Furthermore, the Contractor is
accountable for the performance of all levels of subcontracting under his contract. Historically this legal
requirement has been more apparent in the breach than in compliance.
Under the frame contract model it is possible for contractors to be mobilized to a site without Petrom Group
management at the site being completely aware of this mobilization. The first time contractors are mobilized to
a new site they are required to report to the local management for induction and orientation training at which
time their activity is under local management control. The problem of local supervision arises when the
contractors have a work scope that has regular and routine breaks (such as maintenance, fluid transport, etc) so
that they do not report to the same site at the same time at known intervals.
In order to ensure that local management maintain control of these contractors the following system is to be
used depending on how the contractor has been mobilized through a Purchase Order for a specific scope of
work or through a work order for routine work. The key to this management control is the maintenance of a
documented accurate and timely record containing details of our contractors activities such as the current
Permit to work system and/or a NEW record keeping document Contractor Activity Register.
A) Preferred supervisory mechanism and Contractors mobilized through Purchase Order
All contractors shall be informed as part of the initiation of the work that they shall work under the
local Petrom Permit to Work system. This shall require the attendance of the contractor supervisor at
the appropriate Area Authority office to obtain the signatures for the work permit. As part of the
permit approval process the contractor shall indicate the names of personnel on site including subcontractors by entering details onto the Contractor Activity Register.
B) Mobilized through work order for repetitive (and/or) standard work
All contracting supervisors who receive work orders shall present themselves at the local Petrom
office coordinating their local activity (i.e. dispatch/logistics office) to complete the Contractor
Activity Register to record their planned activity for each day.
Petrom Group personnel conducting supervisor, QA/QC, Management Walk Around tours and site
visits shall use this Contractor Activity Register to confirm activity at the sites listed by the
contractors listed performing spot checks

While this process ensures that the activity and location of the contractors is known, the compliance with
OMV Group and Petrom Group standards, recommendations and procedures cannot be ensured and thus
requires that local management ensure an adequate site supervisory regime is in place. The requirements of
such site supervision shall include: Basic technical knowledge of activity being executed
Knowledge of OMV Group and Petrom Group HSSE requirements
Visual condition inspection of equipment and materials being used
Spot checks of training and competency of contractor personnel
Confirmation of toolbox talks or similar process to ensure immediate knowledge of activity and
associated hazards and risks.
Check of risk assessments and/or Job Safety Assessments (JSA) completeness and implementation of
controls listed therein.
As described in section 2.2.2., the Contract Holder is accountable for the ongoing monitoring and
assessment of the contract performance and for maintaining an open dialog with the Contractor on HSSE
issues.
The nature of work and associated risk determine the level of necessary supervision.
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For more details regarding Contract Holder and Divisional Contract Owner responsibilities in monitoring
Contractors performance, please see OMV Petrom S.A. Corporate Procedure P HSSE 003 E Monitoring of
Contract Performance during Contract Execution.
While the Contract Holder steers HSSE performance improvement during contract execution, the
Operational/Projects HSSE experts provide support throughout the entire process, in particular for high and
medium risk projects. Main expectations from Operational/ Field/ Projects HSSE are, without limitation:
To participate in all site inspections for high/ medium risk projects
To participate in HSSE audit, as necessary
To support the Contract Holder in monitoring the HSSE plan and to offer recommendations for
improvement
To support the Contract Holder in processing the agreed set of reporting indicators and KPIs
To offer specialized assistance upon request
Management Walk Arounds and site inspections are aimed at identifying specific deficiencies in
meeting the HSSE requirements. A program of inspections shall cover all Contractor worksites, in
particular for long contracts. Further guidance on Management Walk Arounds is to be found in the
Corporate HSSE Recommendation Management Walk Arounds Best Practice.
2.3.5.3

Commissioning

The pre-commissioning and commissioning phase are high risk activities for a variety of reasons.
Prior to starting pre-commissioning and commissioning activities an Operational Readiness meeting or Pre
Start up Audit or Pre Start-up HSSE Review shall be held, at which the following points shall be addressed:
Review of schedule and budget to date with clear identification of remaining work
Presentation and review of pre-commissioning and commissioning plan
Clear identification of responsibilities and accountabilities
Review of risk register with additional risk assessment of pre-commissioning and commissioning
activities (this may require a separate specific meeting)
Preparation and review of the Simultaneous Operations (SIMOPS) plan, including prioritization of
activities
Preparation and review of interface register for current activities and planned activities
Preparation and review of work packs when modular or unitization commissioning are being planned and
executed
Review and update of Emergency Response Plan with scheduling of a drill for all site personnel prior to any
commissioning activities
The Contract holder shall coordinate this activity due to its complexity and risk. In addition, the requirement
for witnessing the functionality and operation to specification shall be the responsibility of the contract Holder.
Where there is a site specific activity requiring commissioning then the local management (and in coordination
with the Contract Holder) through their local supervisory regime shall ensure that the necessary resources are
made available in alignment with the operations readiness plan to commission the site. The contractor, as part
of the contract, shall prepare and execute the approved commissioning plan under the supervision of Petrom
Group personnel.
2.3.5.4

De-mobilization

De-mobilization is a high risk activity mainly due to the change of priorities of the site personnel. It is
essential that the same focus on HSSE continues until the site is fully assigned to operations. Examples of
areas for this focus on compliance are:
Plan for de-mobilization and logistics
Site restoration and re-instatement
Waste management and disposal
Agreement on handover protocols.
The HSSE Plan shall continue to be the reference for managing the HSSE activities in this stage. Any lessons
learned shall be taken into consideration, particularly from the mobilization phase, the problems encountered
and the solutions applied.
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The contract holder shall ensure that an organized and safe demobilization from the site is planned and
executed under the supervision of the local management.
2.3.5.5

Close-out, Final Evaluation and Report

A close-out meeting shall take place in order to discuss the HSSE performance and lessons learned, providing
feedback for future knowledge and improvements. The Contract Holder will ensure that the assigned
Operational/Projects HSSE professionals are invited to all close-out meetings. Operational/Projects HSSE
must participate in the close-out meeting for all projects falling under high risk categories. For all other
projects, Operational/Projects HSSE will participate in the close-out meeting as deemed necessary.
A recommended agenda for covering HSSE topics in the close-out meeting is available in the OMV Petrom
S.A. Corporate Recommendation REC HSSE 003 E Contractor Meetings and Reports.
Contracts will be closed with a report on the Contractors overall performance, which includes HSSE
performance, for providing feedback for future knowledge and learning. The findings identified and
documented during contract execution shall be the basis for the final report. The depth and complexity of the
evaluation report depends on the project risk and value. This report shall use the Procurement Department
(PG-P) performance assessment form currently in use (and as defined by the Procurement Department).
The final evaluation shall be recorded and made accessible for future reference, a copy being given to the
Procurement Department (PG-P) for storing in their system and a second copy being entered into Think
Ahead: CARE. The Contractor will be advised that its overall performance and HSSE record will be taken into
account when being considered for future work.
The Contract Holder, with assistance from Operational/Projects HSSE, is accountable for drafting the
evaluation report and ensuring the submission to the Procurement Department. The latter is responsible for
updating the system and databases, according to the information comprised in the received evaluation report.
A suggested template of the post-contract evaluation report is available in the OMV Petrom S.A. Corporate
Recommendation REC HSSE 003 E Contractor Meetings and Reports, until such time as the Procurement
Department (PG-P) updates their evaluation reporting procedure.

3.

Responsibilities
3.1.

Contract Holder
Coordinates the contractor risk assessment, taking into account the generic HSSE risk
assessment detailed under chapter 2.1
Is responsible for the tasks detailed under chapter 2.2.2
Coordinates the project planning
Coordinates the contractor pre-qualification and ensure the observance of the HSSE prequalification criteria and process described under chapter 2.3.2
Leads the technical bid evaluation
Coordinates the specific pre-award HSSE capability assessment, with support from
Operational/Projects HSSE
Supports Procurement (PG-P) in the commercial bid and negotiations
Organizes and supervises the mobilization stage, as described under chapter 2.3.5.1 (incl. kickoff meeting, start-up audit)
Monitors and assesses the contract performance, which includes HSSE performance
Ensures that Contractors use the Contractor Activity Register and the Permit to Work System,
as described under chapter 2.3.5.2
Coordinates the pre-commissioning and commissioning activities, as described under chapter
2.3.5.3
Coordinates the de-mobilization stage, as described under chapter 2.3.5.4
Coordinates the close-out meeting, as described under chapter 2.3.5.5
Coordinates the final evaluation of the contractor and ensures the feedback to Procurement

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3.2.

3.3.

3.4.

3.5.

3.6.

3.7.

4.

Contract Owner
Nominates the Contract Holder, in a written form and ensures the input into the appropriate
contract database
Is responsible for the tasks detailed under chapter 2.2.1
Supplier Relationship Manager
Organizes a contract management board, in case of cross divisional frame contracts, for
ensuring a comprehensive and cross-divisional information exchange of the supplier HSSE
performance
Corporate HSSE Department (PG-S)
Provides the HSSE contractual requirements
Supports Operational/Projects HSSE with professional advise, on specific matters, upon request
Operational/Projects HSSE
Supports the Contract Holder throughout the contracting process, upon request
Participates in project kick-off meetings, as described under chapter 2.3.5.1
Supports the Contract Holder during the start-up audit, on HSSE matters
Supports the Contract Holder during execution and performance monitoring, on HSSE matters
Supports the Contract Holder during (pre) commissioning, de-mobilization and close-out, on
HSSE matters
HSSE Business Partners
Communicate to each Project Requester/ Contract Holder the contact person/ team that will
assist in HSSE matters throughout the process
Act as link between Business Divisions and HSSE (Corporate HSSE, respectively
Operational/Projects HSSE)
Operational Procurement Department (PG-P)
Leads the commercial bid and negotiations
Decides on the best bidder, together with the Contract Owner/ Contract Holder; awards the
contract and places the PO

Terms and abbreviations used

CEO:Chief Executive Officer
PG-S: Health, Safety, Security, Environment (HSSE)
PG-A: Corporate Affairs &Compliance
BD: Business Division
BU: Business Unit
CF:CorporateFunction
PG-P: OperationalProcurementDepartment
PR:PurchaseRequest
PO: PurchaseOrder
Division: CEO, CFO, E&P, R&M, G&P
FIDIC:FdrationInternationale Des Ingnieurs-Conseils (International Federation of Consulting
Engineers)
Contractor: An individual or organization performing work for OMV Group, following verbal or
written agreement. The term Contractor refers also to sub-contractors, whose alignment with OMV
Group standards and regulations is under the responsibility of the Contractor.

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Commissioning: Includes all activities required to put in function the work done; it covers preparation
of work packs, pre-commissioning, notification and witnessing process, approval and certification,
Quality Assurance documentation preparation and sign off, operating manuals, operator training and
commissioning (both inert and live). Commissioning is considered finalized with the facility being
capable of operating as per design specification
Supplier Relationship Management (SRM): In case of cross divisional frame contracts the Supplier
Relationship Manager (nominated by Procurement) organizes a contract management board including
all Divisional Contract Owners whenever required but at least once a year. The contract management
board ensures a comprehensive and cross-divisional information exchange of the supplier HSSE
performance within the concerned frame contract. It also acts as the next higher escalation instance.

5.

Obsolete regulations
DIR HSE 007 E Contractor HSE Management, edition 2

6.

Supporting documentation
OMV Petrom SA Business Management Manual valid edition
OMV Petrom SA Corporate Directive DIR CA 001 E Petrom Regulations System valid edition
DIR HSSE 003 HSSE Management System in Petrom, valid edition
OMV Standard Contractor HSSE Management, valid edition
Corporate HSSE Procedure Monitoring of Contract Performance during contract execution, valid
edition
Corporate HSSE Recommendation HSSE Pre-qualification of Contractors, valid edition
Corporate HSSE Recommendation Contractor MeetingsandReports, valid edition
DIR PROC 051 Organization and Performing of Procurement activity in Petrom Group, valid edition

7.

Distribution list
EB Members
CF Directors
BD Directors
BU Directors
HSSE Business Partners
Petrom Group Companies Directors

8.

Amendments from previous edition

Current edition
1

9.

Amended chapters
New ST

Details about relevant amendments

Not the case

Annexes
Annex A Stages of the Contractor HSSE Management Process

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