Mellitah Oil & Gas B.V.

Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Revision History
Written By Reviewed Endorsed Approved
Rev REASON FOR REVISION
and Date By and Date By and Date By and Date
Revised to include additional requirements A. Nair A. Ganidi A. Ganidi M. Oun
A5 and references. 02/05/10 02/05/10 02/05/10

Revised to change Company logo and A. Nair A. Espulgar A. Ganidi M. Oun

A4 included oil division 16/03/10 16/03/10 16/03/10

Revised to show HSEQ Requirements and A.Fairweather A.Espulgar A.Ganidi M.Oun

A3
Tender Stage/Work Awarded 18/01/2009 18/01/2009 16/03/10

Revised to Change Company’s Name and E.Carvajal A.Elasfer A.Ganidi M.Oun

A2 Minor Changes 03/03/08 06/03/2008 19/01/09
A.Lasafer A.Ganidi A.Ganidi A.Amesh
A1 Issued For Approval and Implementations 01/07/2005 01/0705 09/03/08
A.Ganidi A.Lasfer M.Al Aherish M.Al Aherish
Document modified to comply with
P3
Production Phase and projects 01/07/2005 01/07/2005 27/09/2005 01/12/2005
A.Ganidi S.Johnson N/A N/A
P2 Issued for initial and department review 01/08/05 27/02/06
A.Ganidi N/A N/A N/A
P1 Draft

MOG- HSEQ-P-018 Rev A6 Page 2 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

TABLE OF CONTENTS

1 INTRODUCTION ......................................................................................................................................... 4

2 OBJECTIVE ................................................................................................................................................ 4

3 SCOPE ........................................................................................................................................................ 4

4 REFERENCE ............................................................................................................................................... 4

4.1 Internal References ............................................................................................................................. 4

4.2 External References ............................................................................................................................ 5

5 DEFINITION, ABBREVIATION AND ACRONYMS .................................................................................... 5

5.1 ACRONYMS ........................................................................................................................................ 5

5.2 TERMS AND DEFINITIONS ................................................................................................................ 6

6 RESPONSIBILITIES ................................................................................................................................. 11

7 PROCESS DESCRIPTION........................................................................................................................ 15

7.1 HSEQ POLICY .................................................................................................................................. 15

7.2 CONTRACT PHASES ....................................................................................................................... 15

7.2.1 Planning and Invitation to Tender .................................................................................................. 16

7.2.2 Tender Phase ................................................................................................................................ 17

7.2.3 Evaluation (technical and commercial) and Contract Award ......................................................... 18

7.2.4 Mobilisation .................................................................................................................................... 19

7.2.5 Execution ....................................................................................................................................... 24

7.2.6 De-mobilisation .............................................................................................................................. 26

7.2.7 Close Out ....................................................................................................................................... 26

ATTACHMENTS ............................................................................................................................................... 29

MOG- HSEQ-P-018 Rev A6 Page 3 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

1 INTRODUCTION
This procedure enables Mellitah Oil & Gas BV (hereinafter referred as Company or MOG. BV) to
align contractors and suppliers with the Company HSEQ-S management system in order to avoid
undesired events and reduce intrinsic risks at an ALARP (As Low As Reasonably Practicable) level
in all activities carried out by Contractors during plant operations and project execution.

2 OBJECTIVE
This document outlines the standard and basic guidance requirements for contractors and suppliers
contracted to perform activities for or on the behalf of Mellitah Oil & Gas B.V. It also provides the
required index of procedures and work instructions and any other documentations deemed
necessary for the performance of the dedicated tasks (i.e.: QA/QC, HSE, Security, Occupational
Health) for running the plant or projects.

3 SCOPE
The contents of this document apply to all activities conducted on behalf of MOG BV at every its
operating sites, both offshore and onshore, for the production and delivery of liquid and gaseous
hydrocarbons.

Contractors’ HSE management systems shall be compatible with MOG Policies and principles of its
HSE IMS.

4 REFERENCE

4.1 Internal References

[Ref.1] MOG-HSEQ-PO-001 HSEQ Integrated Policy

[Ref.2] MOG-HSEQ-IN-M-001 Corporate HSE MS Manual

[Ref.3] MOG-HSEQ-SF-P-024 Corporate Permit To Work System

[Ref.4] MOG-HSEQ-SF-D-041 Corporate Procedure for awareness on H2S Gas

[Ref.5] MOG-HSEQ-P-020 Corporate HSEQ Requirements for Local Contractors

[Ref.6] MOG-HSEQ-E-P-036 Corporate Waste Management Plan

MOG- HSEQ-P-018 Rev A6 Page 4 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

[Ref.7] MOG-HSEQ-Q-P-208 Corporate Procedure for Inspection Records

Corporate Procedure for Control and Calibration of

[Ref.8] MOG-HSEQ-Q-P-215
Inspection Equipment

[Ref.9] MOG-HSEQ-Q-P-218 Corporate Procedure for Non-Conformance Management

4.2 External References

[Ref.10] BS OHSAS 18001:2007, Occupational Health and Safety Management Systems –

specification

[Ref.11] ISO 14001:2015 - “Environmental Management System – Requirements with

guidance for use”

[Ref.12] ISO 9001:2015, “Quality management system – Requirements”

[Ref.13] ISO 9000:2000, “Quality management system – Fundamentals and Vocabulary”

[Ref.14] Eni spa msg-hse-eni spa-eng-r02 “Management System Guideline – HSE” Annex
G: Third-Party Monitoring

[Ref.15] Eni upstream 1.3.1.30 “Contract HSE Requirements for Abroad Activities”

[Ref.16] Eni upstream opi sg hse 036 ups r01 “Golden Rules Visible implementation
Monitoring Program (E-Gruvis) ”

5 DEFINITION, ABBREVIATION AND ACRONYMS

Following is a list of abbreviations commonly used in this procedure, and is designed to help the
reader with their understanding of this document.

5.1 ACRONYMS

ALARP As Low As Reasonably Practicable

CIMS Corporate Integrate Management System

HSEQ-S Health, Safety, Environment, Quality and Security

MS Management System

MOG- HSEQ-P-018 Rev A6 Page 5 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

PTW Permit To Work.

QA/QC Quality Assurance/ Quality Control

SMS Safety Management System

5.2 TERMS AND DEFINITIONS

Undesired event giving rise to death, ill health, injury, damage or other
Accident loss (OHSAS 18001:2007). An alternative simpler definition: unplanned
event giving rise to undesired outcome (death, ill health).

As Low As Reasonably Practicable. The point at which the effort to

introduce further reduction measures become unreasonably
disproportionate to the additional risk reduction that will be obtained.
ALARP
The concept of ALARP may be qualitative or quantitative and, where
necessary, guidance notes issued by the Authorities for application
should be adopted.

Resource owned by an organisation, normally for the purposes of

Asset generating income or increasing value. Often refers to the oil/gas field
being appraised, developed or produced

Systematic, independent and documented process for obtaining audits

Audit evidence and evaluating it objectively to determine the extent to which
the audit criteria are fulfilled.

Systems, processes, policies, methods or incentives that have been

Best Practice
demonstrated to achieve superior results within an industry segment.

Mellitah Oil and Gas B.V (MOG) Libyan Branch including Head Quarters
Company
and all operating sites

Refers to any owned or leased offices, premises, offshore / onshore

Company Site locations storage facilities, supply bases, and any other offshore
supports to production or drilling activities.

Demonstrated personal attributes and demonstrated ability to apply

Competence
knowledge and skills.

MOG- HSEQ-P-018 Rev A6 Page 6 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Conformity /
Fulfilment of a specific requirement.
Conformance

Consequence Outcome or impact of an event.

Continual
Recurring activity to increase the ability to fulfil requirements.
Improvement

The Company supplier, or person named in the contract and who is to be

Contractor
responsible for the delivery in accordance with the specified terms.

Contractors/Suppli Both Parties are involved in the preparation and use of documents to
ers and Contract meet the HSE requirements of both the Tender documentation and the
Holders Post-Award HSE management requirements of a Contract.

Corrective Action Action to eliminate the cause of a detected nonconformity or other

undesirable situation.

Critical Activities Activities that have been identified by the hazards and effects
management process as vital to ensure asset integrity, prevent incidents,
and/or mitigate adverse HSE effects.

Gruvis Golden Rules Visible Implementation Monitoring Program.

Anything with the potential to cause harm, including ill health or injury,
Hazard damage to property, plant, products or the environment; production
losses or increased liabilities.

A state of complete physical, mental and social well being, and not
merely the absence of disease or infirmity (WHO constitution of 1948.
Health
In this document, Health includes Occupational Health, Medical Support
and Community Health.

Co-ordinated activities to direct and control an organisation with regard to

HSE Management
HSE.

HSE Management Part of the overall management system that facilitates the management
System of the HSE risks associated with the business of the organisation.

MOG- HSEQ-P-018 Rev A6 Page 7 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

The formal view by top management of the status of adequacy of the

HSE Management health, safety and environmental system and its implementation, in
Review relation to health, safety and environmental issues, policy, regulations
and new objectives resulting from changing circumstances.

A public statement of the intentions and principles of actions of the

HSEQ Policy company regarding its HSE effects, giving rise to its strategic and
detailed objectives.

Event that give rise to an accident or had the potential to lead to an

accident. An incident where no ill health, injury, damage, or other loss
Incident
occurs is also often referred to as a “near miss”. The term “incident”
includes “near-misses” (OHSAS 18001:2007).

Physical harm or damage to a person resulting from traumatic contact

Injury between the body of the person and an outside agent, or from exposure
to environmental factors.

May indicates a procedure which is permissible within the framework of

May the standard (a permission) or a proposal which indicates an opportunity
for the user of the standard.

Near miss/ near

Any event which had the potential to cause injury and/or damage and/or
accident/ quasi-
loss, but which was avoided by circumstances.
incident

Non-conformity
Non-fulfilment of a specific requirement.
/nonconformance

Group of people and facilities with an arrangement of responsibilities,

Organisation
authorities and relationships.

Organisational Arrangement of responsibilities, authorities and relationships between

structure people.

Performance A specific measure to describe management, operational process or

indicator performance.

MOG- HSEQ-P-018 Rev A6 Page 8 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Statements which can be expressed in qualitative or quantitative terms,

as appropriate, of the performance required of a critical system, item or
product, person or procedure. It is used as the basis for managing the
Performance
hazard and performance. It includes planning, measuring and control
criteria
throughout the life cycle of the facility in order to ensure the safety,
functionality, availability/reliability and survivability of the entire facility are
built in and maintained as appropriate.

Overall intentions and direction of an organisation related to HSE as

Policy
formally expressed by top management.

Regulation An authoritative rule or principle dealing with details of procedure.

Requirement Need or expectation that is stated, generally implied or obligatory.

Those actions, activities or assets for which a person is held liable and
Responsibility
for which he alone must account.

Activity undertaken to determine the suitability, adequacy and

Review
effectiveness of the subject matter to achieve established objectives.

Combination of the likelihood (or probability, or frequency) and

consequence(s) of a specified hazardous event occurring (OHSAS
Risk 18001:2007). Note – Consequences of an event could be positive and /
or negative. risks with absolute positive consequences will be referred to
as opportunities.

Coordinated activities to direct and control an organisation with regard to

Risk. (ISO/IEC Guide 73:2002). Is a systematic application of
Risk management management policies, procedures and practices to the tasks of
establishing the context, identifying, analysing, evaluating, treating,
monitoring and communicating Risks

A state in which the risk of harm (to persons) or damage is limited to an

Safety
acceptable level.

Shall is an absolute requirement which must be strictly observed to

Shall
ensure conformity with the standard.

Should is a recommendation. Alternative solutions with the same

Should
functionality and quality can be accepted.

MOG- HSEQ-P-018 Rev A6 Page 9 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

The process of imparting specific skills and understanding to undertake

Training
defined tasks.

All work to be done, all materials to be delivered and all commitments to

Work
be fulfilled by the contractor under the contract.

MOG- HSEQ-P-018 Rev A6 Page 10 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

6 RESPONSIBILITIES
This section defines the key personnel and their responsibilities for contractors and suppliers
management as outlined in the Organizational Chart for the applicable position.

OMC Chairman

 Ensure that all contracts respect the requirements reported in this procedure.

 Ensure that all required resources, facilities and personnel, are made available to conduct
Contractor management process

 Ensure training and awareness is provided to departments that manage the contractor’s
process.

HSEQ Division Manager

 Ensure that all contracts and all bids are assessed.

 Ensure that the HSEQ specialist/professional will take a part in each Kick off Meeting

 Ensure that HSEQ personnel are well trained to conducting HSEQ Audit.

 Organize, with the collaboration of the HSEQ Department Managers Oil/Gas Divisions, each in
his area of competence; audit to the contractors to verify whether the requirements are
satisfied.

 Establish a visit program for MOG personnel to conduct HSE Site visits

 Monitors the Gruvis checklist and HSE feedback forms

 Ensure a safe commencement of work by contractors

 Ensure HSE team is designated to conduct site restoration

HSEQ Department Managers (Oil and Gas Divisions)

 Support HSEQ Division Manager to assess the contractors.

 Appoint the person responsible for auditing of the contractors

 Appoint the qualified personnel for assessment of the contractors and the bids

MOG- HSEQ-P-018 Rev A6 Page 11 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

 Ensure Gruvis checklists are applied on site.

 Ensure the conduct of HSE Restoration Site

 Ensure HSE documental revision for each contract in order to identify all concerned HSEQ
requirements.

 Ensure the review of Contractors HSE plans submitted to MOG and its compliance with the
company HSEQ requirements.

Site HSE Coordinators / Supervisors

 Verify that all the contractors, before the access to the plant, respect the requirement reported
in this procedure.

 Assist contractor to apply the Gruvis checklist

 Conduct HSE Restoration site

Contract Holder

The Contract Holder has a single point responsibility for the activity management of the Contract
and verification that the control mechanisms are in place. It is not expected that Contract Holders
can carry out all the activities listed in the following sections. Rather, Contract Holders shall call
upon professional personnel from relevant MOG BV. Departments when assistance with HSE
issues is required i.e. HSEQ Division manager can assist by designating an HSE specialist/
professional or other as for technical engineering.

He remains the Responsible for ensuring that received advice and actions taken are the best
possible solutions to any point in the execution of a Contract.

The contract Holder shall:

 be responsible for the activity management of the Contract and verification that the process
mechanisms are in place

 Advice on each process phase contract personnel involved in the project for each process
phase.

 call upon professional personnel from MOG HSEQ Division when assistance with HSE issues is
required as the HSE team leader or a Technical Authority. He should ensure that their advice is

MOG- HSEQ-P-018 Rev A6 Page 12 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

received and actions taken are the best possible solutions to any point of the contract
execution.

 Ensure that there is a formal HSE monitoring for all contracts. Contract holder shall ensure that
the Contractor is fully aware and understands the importance of the quality and frequency of the
performance monitoring.

 Complete the feedback form as per MOG standards.

 Develops with the collaboration of the contractor a contract-bridging document if required.

 Participate in site management visits according to an established schedule according to Gruvis

System

MOG BV Contract Manager & Procurement Manager

 Address the full lifecycle of contracts and management of subcontractors from risk identification
and qualification, contract execution and finally to the close out of contractor/ subcontractor
(supplier);

 Call for HSE resources skills, in the case of projects classified as "high risk" as the to provide
assistance to the project

 Ensure as far as possible in consultation with the HSEQ Representative that the interfaces
between the parties (MOG BV, Contractor, Subcontractor) are clear and unambiguous. If the
strategy of the contract requires a sharing of activities in several contractual entities, he must
ensure that each entity is responsible for the attributed HSEQ aspects.

 Submit any documentation HSEQ related documents to HSEQ Department for comments and
approval ensuring the interface with the contractor for comments, procedures validation,
documents and HSEQ process

 Ensure that the HSEQ representative has completed a detailed assessment of the risks related
to the project by establishing a Risk Register. This should take into account certain aspects that
can be as follows:

▬ The location and nature of work to be done and the potential risks involved

▬ Mitigation measures of identified risks

▬ Standards applicable to the project MOG BV.

▬ Current regulations including any restrictions

MOG- HSEQ-P-018 Rev A6 Page 13 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

▬ Availability of emergency procedures and related facilities

▬ The potential consequences of incidents and accidents on local communities, various

facilities, reputation and environment

▬ The arrangements due to management of change related to the potential risks of various
controls, approvals and processes during contract execution

▬ Ensure the assessment of potential risks based on the "scope of work" and confirmed that
the integration of the contractual attachment Annex 2 HSE requirements (hereinafter) is
appropriate.- Ensure that the bidder provides documentation justifying their HSEQ
management system;

▬ Asks the HSEQ Dept. to conduct external audits control on the proper application of the
HSE requirements of the contract;

▬ Ensure the collection of assessments HSE requirements and insert them into contractor
evaluation sheet/ Feedback.

▬ Disseminate updated information on Contractors / subcontractors.

▬ Conduct Management of visits by Gruvis system.

▬ Ensure that the contractor had submitted the HSEQ detailed risk register before the kick of
meeting.

▬ Cooperate with HSEQ Department Manager to comply with the company auditing
procedures.

MOG- HSEQ-P-018 Rev A6 Page 14 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

7 PROCESS DESCRIPTION

7.1 HSEQ POLICY

The approved Company HSEQ and Security Policies have been disseminated at all Company
facilities. It’s Mandatory that the operations of the Company be maintained & carried out in
compliance with the approved policies. Contractors & suppliers shall be aligned with the Company’s
HSEQ requirements and all Contractors shall fully comply with requirements stated in Company
procedures. Moreover Contractors shall employ competent HSEQ-S personnel to enforce and
maintain the policy.

7.2 CONTRACT PHASES

This Procedure follows the HSEQ sequence of phases in contract management, which can be
described as follows:

1. Planning and Invitation to Tender (Announcement through MOG & NOC websites)

2. The Tender Phase

3. Evaluation (technical and commercial) of the tenders and contract Award.

4. Mobilization

5. Execution

6. De-mobilization

7. Close Out

In some of the above contract phases form(s) shall be completed for the Contract to proceed.
These are detailed in each phase where required, including any reference documents that relate to
the forms. All forms necessary for the HSEQ Management of a Contract are given in the various
Attachments in this document.

Each phase also contains instructions for any relevant Deliverable(s), as well as the document
number and title for any reference material pertinent to that phase.

MOG- HSEQ-P-018 Rev A6 Page 15 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

7.2.1 Planning and Invitation to Tender

Risk Assessment

Contract holder, in collaboration with the HSEQ Division Manager and eventually the HSEQ
Department Managers Oil / Gas Divisions, each in his area of competence, shall conduct a
structured, formal HSE Risk Assessment of the Contract against contract scope, schedule and
strategy (as well as any existing HSE information from prior documents related to the same
package of work) with a view of minimizing the HSE exposure and level of risk for the Contract.

‎Attachment 1 is a useful tool used to categorize the contract activity as high (Exploration, Drilling,
Development project), significant (refurbishment activities, specific non routine activity as welding,
lifting) or negligible (good services).

The main goal of the HSE Risk Assessment is to identify and assess the major hazards and risks
associated with the contract.

The HSE Risk Assessment shall include or enable HSEQ department in the execution of the
contract.

Details shall be formally recorded with future actions identified and, wherever possible, action
parties nominated.

Contract Holder shall use the results of the HSE Risk Assessment to develop HSE Requirements at
an adequate level for inclusion in Tender Document. ‎Attachment 2 provides a not comprehensive
framework of HSEQ-S requirements for contracted activities assessed as High level risk category.
For other risk category levels, modification shall be implemented.

Deliverable(s) Contract HSE Requirements at the adequate level

Development of HSE pre-qualification criteria

Contractor/Suppliers HSEQ Management System shall be submitted to MOG BV for review

including the complete contractor prequalification questionnaire MOG-HSEQ-F-242 “Contractor
HSEQ Prequalification Questionnaire”.

The standards in the HSEQ Management System shall at least be comparable to the minimum
requirements of this document and should cover the quality and HSE aspects of work contracted by
MOG BV.

MOG- HSEQ-P-018 Rev A6 Page 16 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

The questionnaire aims to discover the information required to assess the extent to which the
management of HSE is systematically organized by the Contractor.

Contractor shall complete the questionnaire. The Contractor should be advised by the Contract
Holder to cover all activities relating to a contract (including off-site support) and not just those
conducted on MOG BV sites.

Contract Holders shall emphasize the need for complete answers substantiated by supporting
documentation as far as is practicable. It should be remembered that increasing amounts of detail
(and therefore information required to support it) will need to be requested as risk increases.

When Contractor submissions are received, the Contract Holder shall rate the submissions as
described in Contractor HSEQ Prequalification Questionnaire.

7.2.2 Tender Phase

Contract submission document

Once the Invitation To Tender (ITT) has been launched, the Contract Holder shall ensure that the
Contractor(s) submits:

 a draft HSE plan to manage the work and address all the associated HSE risks through the
different phases of the project, on the basis of the information provided in the Contract Scope of
Works and

 necessary documentation required as per ‎Attachment 2 “HSEQ-S Requirements for Contracted

Activities”.

Details provided shall fully describe the manpower including roles and responsibilities of the
individuals stated in the organization chart and clearly indicate the policies, procedures and
standards to be adopted during each phase of the contract.

Deliverable(s) Complete documentation required in Annex 2-HSE Requirements during the

Invitation To Tender phase

Complete HSEQ questionnaire MOG-HSEQ-F-242 with all answers

HSE Plan Sample (Master document)

MOG- HSEQ-P-018 Rev A6 Page 17 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Site Visit

Contract Holder shall arrange a site visit if deemed appropriate or as a result for the HSE Risk
assessment. The purpose is to allow familiarization with the Contract Scope of Works and the
impact that site conditions may have on all aspects. Depending on the complexity of the scope,
consider a dedicated discussion with the contractors on the HSE aspects of the contract.

In any contract of technical complexity and/or high value, the Contract Holder shall visit the site to
become familiar with site conditions, prior the receipt of Tender Documents.

Deliverable(s) Memo to Contract File detailing site visit

7.2.3 Evaluation (technical and commercial) and Contract Award

Contract Holder, with the assistance of the HSEQ Division Manager, shall conduct a HSE
Evaluation of the contractor submission. The evaluation includes a review of their submission
documents as well as a visit to their office and/or site

Contract Holder shall communicate or meet with Contractor(s) if further clarification is needed for
Tender submission. This meeting, if required to be held following written requests for clarification,
shall establish where improvements in proposed HSE risk management will be required if contract
is awarded.

Contract Holder shall consider the results of the HSE evaluation and evaluate which Contractor(s)
will require additional MOG BV supervision to ensure that the management of HSE risk is carried
out correctly.

Deliverable(s) Minutes of Meeting; Letter to Contractors for clarifications (if necessary)

Any other document required by Contract Department

Evaluation Report (Contractors scoring)

Contract Holders should be conscious of the fact that thorough understanding of a Contractor’s
abilities to manage HSE issues can only be obtained by careful study of the whole of a Contractor’s
HSE management system as for, but not limited to the following:

MOG- HSEQ-P-018 Rev A6 Page 18 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

 Safety equipment, personal protective equipment (PPE)

 HSE audits, induction and training, emergency response resources

 medical facilities, first aid training, Medevac, health surveillance

 waste disposal, promotion schemes, journey management

 financial resources of the Contractor that are available for HSE management

If necessary, an award recommendation has to be added by the Contract holder and shall highlight
any anomalies or additional qualifications accepted from the original Tender documentation issued.

The Contract Holder may withhold approval of the Contractor until the Contractor provides
satisfactory explanations and assurances that no reduction in the quality of key HSE personnel will
result from changes. Replacement of Key HSE personnel is not allowed without prior approval from
HSEQ Division Manager. CVs shall be provided for any replacement personnel different from those
already submitted to MOG BV.

7.2.4 Mobilisation

Kick-off Meeting

Contract Holder shall hold MOG BV internal kick off meeting with the presence of the involved
departments to ensure that:

 Company Representative and Company Site Representative(s) are fully aware of their
delegated powers under the Contract.

 All personnel involved with the Contract understand the contents of the Contract.

 Key factors considered during the Tender period are explained.

 Presentation and understanding of the penalties objectives and structures.

 Process of instructions, administration and reporting requirements are understood.

 Clarification of handover from existing Contractor (where applicable).

As a minimum, the Contract Holder, Company Representative, Company Site Representative(s),

HSEQ Professional(s), shall attend the MOG BV internal kick off meeting.

MOG- HSEQ-P-018 Rev A6 Page 19 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Contract Holder shall then conduct a kick off meeting with the Contractor immediately after
Contract award and before the execution of any work. This is essential to ensure that all contractual
obligations, including HSEQ, are thoroughly and mutually understood. The kick-off meeting is the
first formal meeting between Contract Holder and Contractor after the award of a contract.

The agendas of the kick-off meetings is entirely at the discretion of the Contract Holder. The
Contract Holder requires the HSEQ Division assistance with either kick-off meeting or an HSEQ
professional to assist.

During either or both of these meetings, the Contract Holder shall ensure the following minimum
objectives are covered:

 Demonstrate to the Contractor that MOG BV is fully committed to HSEQ.

 Establish that the Contractor completely understands the risks within the Scope of Work and
has committed the resources detailed in the Contractors tender submission the HSE
Requirements

 Ensure that the Contractor has or can put systems in place to manage risk and these are
suitable and sufficient to meet standards

 Highlight any areas for improvement in the Contractors requirements Tender submission, and
agree on any actions necessary, by either MOG BV or the Contractor, to remove deficiencies.

 Resolve any issues arising from a variation to contract since the award

 Introduce any new Contractor(s) to the details of MOG BV’s HSE policies, standards and
systems.

Deliverable(s) Minutes of meetings to Contract file

Note: If necessary the Contract Holder schedule a HSE Workshop to focus on all outstanding HSE
issues relating to a contract. Ideally the Workshop will be held at the site where most of the
activities will take place. The HSE Workshop is held to bring all the disciplines together from
company and Contractor to interrogate the HSE management proposal from the contractor and in
particular the HSE Risk management details submitted as part of the technical evaluation. A major
focus will be on the control measures proposed to manage the risk and these are to be recorded
and auctioned by the contractor. In addition it is an opportunity to review any changes to the
Specific Contract HSE Management Plan.

MOG- HSEQ-P-018 Rev A6 Page 20 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

In the case of Contractors and all parties agree in writing on the Kick off meeting statements, then
Contractor Manager shall deliver the current Contractor’s HSE Plan for review and approval. This
HSE plan shall incorporate any MOG BV comments arising from the kick off meeting and the HSE
Workshop, and also any further mandatory MOG BV requirement. Full details for the preparation of
an HSE Plan are given in ‎Attachment 2.

Deliverable(s) Contractor’s HSE Plan to Contract Holder reference to ‎Attachment 2

A bridging document should be included to the HSE plan to hold the raised HSE issues involving
different parties related to the project, in particular the gaps between the Contractor HSE-MS as
implemented and the MOG BV HSE-MS requirements as well as other parties that could influence
HSE issues during the execution of the project.

The Bridging document that is jointed to the HSE plan shall address the emergency procedures
and recovery plans held by the different parties including third party participants to ensure smooth
operation, with no uncontrolled major hazards that may cause unnecessary danger to people, the
environment and assets.

The bridging document would include (as a non-exhaustive list):

 Identification of participating parties client, contractors and subcontractors should ensure

activities that are shared between two or more parties should be identified.

 Any conflicts between the HSE-MS systems of participating companies should be resolved

 One party should have overall responsibility and control of the project work; this will typically be
the Contractor

 Clear identification of who is responsible for specified activities.

 Clear and direct lines of communication and contact points.

 Clear understanding on which procedures will be used.

 Changes of or introduction of new parties should be carefully interfaced using a management of

change procedure.

MOG- HSEQ-P-018 Rev A6 Page 21 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

 MOG BV may require having primacy in some (serious) emergency incidents, and the situations
where this will take effect should be clearly identified in the contract and project HSE plan or
bridging document.

 Third parties should be identified as early as possible at the beginning of the project

 Obligations to third parties and third party authorities need to be identified

Training

Contract Holder shall ensure that all MOG BV and Contractor personnel training has been
completed with all personnel involved, receiving approval from HSE trainers. Training records will
contain name(s) of trainee(s), name of training course and completion grade with feedback. HSE
Training shall be ensured according to a training matrix adapted to a the project

Deliverable(s) MOG BV and Contractor Training records

Monitoring program and HSE feedback

Contract Holder shall develop a Company HSE Monitoring program to be able to fulfill the
requirements of contractor HSE feedback

Contract Holder shall, throughout the period of a Contract, monitor the Contractor’s HSE
performance against the Contractor’s HSE Requirements Contract document and its HSE Plan.
Implementation of the MOG BV HSE monitoring program shall take place when the Contractor
commences mobilization.

Contract Holder shall prepare the Company HSE Monitoring Program specific to the project in the
Audit plan that is submitted to the OMC Chairman for review and approval.

MOG BV HSE personnel shall complete Contract HSE Performance Reports to detail the results of
all monitoring activities. A template and guidance note for these reports is provided in ‎Attachment 3
“Golden HSEQ Rules Visible Implementation Monitoring Program (Gruvis)”. Contract Holder will
submit to HSEQ Division Manager the HSE Feedback form ‎Attachment 4

Deliverable(s) OMC Chairman approval on monitoring (audit plan) program

MOG- HSEQ-P-018 Rev A6 Page 22 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Contract holder HSE feedback report (‎Attachment 4)

Gruvis feed back (‎Attachment 3)

Both the Gruvis feedback (‎Attachment 3) and the HSE feedback (‎Attachment 4) are completed
during the execution of the contract periodically (monthly, quarterly basis) that depends on the
project progress or after an event such as a major/ significant incident/ accident. These feedbacks
are collected and communicated to Contractor and HSE section for filing and constituting one of the
basic references for the Non- conformities / preventive and corrective actions as well as the HSE
tracking actions, should be monitored by HSE section on site .

Pre-commencement HSE Audit of Contractor

HSEQ Division Manager and his team should support the audit as required by the Contract Holder

Contract Holder shall conduct a pre-execution HSE audit to determine that the Contractor has
achieved the pre-execution targets stated in the Contractor’s HSEQ Requirements (‎Attachment 2)
and HSE Plan, and that mobilization is complete.

 The execution of the post mobilization phase of Contract work shall not be initiated until the
requirements of the pre-execution HSE audit have been met.

 It may then be necessary to specify a list of HSE audits/checks/verifications to be completed

during the mobilization period.

 The Contract Holder must approve each of the checks before subsequent actions can be
started. For example, the Contractor cannot start transporting material until drivers have been
qualified and vehicles have passed inspection checks.

 In such a situation, the pre-execution HSE audit may consist of the Contract Holder determining
the satisfactory completion of driver training and vehicle inspection before the field site is
audited and fieldwork begins.

 Following any HSE audit, or any inspection in support of an audit, the resulting findings should
be discussed with the Contractor's site and office management.

 Contractor shall respond to the Contract Holder, confirming the minutes and advising the
remediation schedule and/or confirming that all audit recommendations will be or have been
carried out.

MOG- HSEQ-P-018 Rev A6 Page 23 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

 The Contract Holder shall agree with the Contractor on a procedure for monitoring the
implementation of the inspection/HSE audit findings i.e. Action tracking Plan.

Inspection/HSE Audit finding reports should:

 Detail personnel responsible for correcting each finding

 Be measurable - i.e. state exactly what remedy is required by each finding

 State completion dates for each finding

Deliverable(s) Contract Holder letter to Contractor giving minutes of inspection/HSE audit

findings meeting

Contractor Manager shall advise, in writing, Contract Holder that all items from the pre-execution
audit requiring remediation have been completed

Contractor Manager shall issue Pre-execution Completion Report and request HSE
Commencement Certificate (‎Attachment 5)

Contract Holder shall issue the HSE Commencement Certificate (refer ‎Attachment 5) to Contractor
Manager, subject to any exceptions noted on the HSE Certificate.

Contract Holder shall withhold issuing the HSE Commencement Certificate if any of the activities
listed on the HSE Certificate require exception that leads to unsafe operating conditions.

Deliverable(s) HSE Commencement Certificate

Reference Document(s) Minutes of Pre-execution HSE Audit meeting

7.2.5 Execution

Contract Holder shall implement the Monitoring Plan to monitor the Contractor’s performance
against the Contractor’s HSE Plan/ HSE requirements.

MOG- HSEQ-P-018 Rev A6 Page 24 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

Contract Holder shall participate in all planned HSE planned audits, incident investigations,
meetings and reviews.

Deliverable(s) Contract HSE Feedback Reports (‎Attachment 4)

Gruvis feedback (‎Attachment 3)

Contract Holder shall perform a project HSE Risk Assessment periodically during the execution of
the Contract. In particular, revised risk assessment shall be triggered by any additional
requirements that lead to an increased Scope of Works, thereby requiring a Variation in the
Contract.

Revision will also allow the incorporation of any additional HSEQ requirements arising from the
process of Contract execution.

MOG BV shall apply HSE penalties and defaults to the Contractor, as allowed in the Contract, for
unauthorized deviation(s) from the HSEQ Requirements of Contractor’s HSE Plan. The Contractor
Manager is to be advised in writing of all Penalties and Defaults being imposed according to MOG
BV HSE disciplinary policy.

Deliverable(s) Letter to Contractor advising HSE Penalties and Defaults

Reference HSE Monitoring Program (audit plan specific to the project) ‎Attachment 3 &
Document(s): ‎Attachment 4

Contract HSE monthly Performance Reports including HSE reporting

Contractor’s HSE Plan

Contractor’s HSEQ Requirements Tender submission (‎Attachment 2)

Report on deviations

MOG- HSEQ-P-018 Rev A6 Page 25 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

7.2.6 De-mobilisation

Contract Holder shall ensure that the Contractor demobilizes from the site of work in accordance
with all contractual agreements including the Contractor’s HSE Plan.

Contract Holder shall approve the Site Restoration Certificate (refer Error! Reference source not
found.) and issue it to the Contractor.

MOG BV. Representative/Site Representative may sign the Site Restoration Certificate at the
discretion and approval of the Contract Holder.

Deliverable(s) Approved Site Restoration Certificate (Error! Reference source not found.)
and copy to MOG HSEQ Division Manager

Reference All relevant Contract documents, including the Contractor’s HSE Plan
Document(s):

7.2.7 Close Out

Contract Holder shall prepare the Final Contract HSE Performance Report to be submitted to the
Contract Department. The report is to be finalized and submitted not later than 90 days after
demobilization.

The Contract Department shall review it as necessary and file the report for future use.

Contract Holder shall:

 Agree and confirm physical status of the Work /Services against the Contract.

 Issue substantial completion certificate for Lump Sum Contracts.

 Note all items to be completed and/or rectified and formally document with Contractor.

 Prepare a Contractor Performance Report to record the execution of the Contract, including
technical competence and all HSE aspects alongside with HSE feedback

 Conclude all claims and disputes in line with Company Procedures.

 Ensure any penalties have been applied in accordance with the Contract.

 Issue the Completion Certificate, applicable for all Contracts.

MOG- HSEQ-P-018 Rev A6 Page 26 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

 Compile the Contract feedback report,

 Consolidate all documentation to support close out.

 Confirm that all charges made under the Contract are valid.

 Agree and sign the statement of final account, applicable for all Contracts.

Note: The Contract Holder’s responsibility for management of the Contract shall end on completion
of the statement of final account

Deliverable(s) Final Contract HSE Performance Report (Annex 4)

Reference ‎Attachment 3 & ‎Attachment 4 conducted during the execution of the project
Document(s):

The below table summarises the deliverables during the contract phases by both company and
contractor

CONTRACT DOCUMENTS TO BE SUBMITTED Company Contractor

PHASE

Planning and  HSE risk assessment Attachment 1 X

Invitation to
 Development of HSEQ requirements (adapt X
Tender Annex 2 to the project)
 Complete documentation required in
Attachment 2-HSE Requirements during the X X
Invitation To Tender phase
 Complete HSEQ questionnaire MOG-HSEQ-
X
Tender Phase F-242 Rev A1 with all answers

 HSE Plan Sample (Master document) X

 Site visit details (if necessary) X

 Site visit report X

Evaluation and
contract  Letters of clarifications (If necessary X X

MOG- HSEQ-P-018 Rev A6 Page 27 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

CONTRACT DOCUMENTS TO BE SUBMITTED Company Contractor

PHASE

Award  Evaluation report (contractors scoring) X

 Minutes of meeting of the Kick of meeting X

 HSE Plan and any other documents required X
as per HSEQ requirements
 Bridging Document X

 Audit plan X
Contract
 Pre-commencement HSE inspection /audit X
Award and
findings report
Mobilisation
 Letter of pre-execution of HSE inspection/audit X
report to Contractor

 Remediation of pre-execution HSE inspection X

/audit report to Company
 HSE commencement certificate (Attachment
X
5)
 Contract HSE Feedback Reports (Attachment X X
4)
Execution
 Gruvis checklist (Attachment 3) X X

Demobilisation  Site restoration certificate (Attachment 6) X X

Close out  HSE Close-Out Report (Attachment 4) X

MOG- HSEQ-P-018 Rev A6 Page 28 of 29

 Mellitah Oil & Gas B.V. Libyan Branch – Corporate HSEQ-S Procedure for Contractors and Suppliers Management

ATTACHMENTS

ATTACHMENT 1. HSE Criticality

ATTACHMENT 2. HSE Requirements

ATTACHMENT 3. “Golden Rules Visible Implementation Monitoring Program (Gruvis feedback).

ATTACHMENT 4. HSE Feedback report

ATTACHMENT 5. Commencement Certificate

ATTACHMENT 6. Site Restoration Certificate

MOG- HSEQ-P-018 Rev A6 Page 29 of 29