ABU DHABI CRUDE OIL PIPELINE PROJECT

(ADCOP)

HSE AUDIT PROCEDURE

30-99-90-1682

C
O
N
S
L
T
IN
G
E
N
G
IU
N
E
E
R
S
EPC CONTRACTOR:

PROJECT MANAGEMENT CONSULTANT:

China Petroleum Engineering

& Construction (Group) Corporation
Abu Dhabi Branch
P.O. Box 127345

ILF Consulting Engineers

P.O.Box 73250
Abu Dhabi, UAE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

EPC Contractor Doc. No.:

DOCUMENT No.:

30-99-90-1682

Rev. 0

Project No: E30153

PAGE:

of

DATE:

30/09/2008

REVISION RECORD

REV

DATE

ORIGINATOR

REVIEWED

APPROVED

DESCRIPTION

2008-06-11

OBI

AORIQILEN
G

JIANG

For Review

2008-09-11

OBI

AORIQILEN
G

JIANG

For Review

2008-09-30

OBI

AORIQILEN
G

JIANG

AFC

Copyright China Petroleum Engineering &Construction (Group) Corporation 2008 All rights reserved.
This document is issued for the execution of Abu Dhabi Crude Oil Pipeline (ADCOP) project.
Copying this report without the permission of CPECC, ILF and IPIC is not permitted.

CONTENTS

PAGES

DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 2 of 9
Rev.0

DATE :30/09/2008

1.0

PURPOSE........................................................................................................................................ 4

2.0

SCOPE............................................................................................................................................. 4

3.0

AIMS AND OBJECTIVES................................................................................................................. 4

4.0

AUDIT HIERARCHY......................................................................................................................... 4

5.0
5.1
5.2
5.3
5.4
5.5
5.6

RESPONSIBILITIES........................................................................................................................ 5
CPECC Corporate HSE Manager
..5
HSE Audit Manager (ADCOP HSE Manager)...................................................................................5
Lead Auditors.................................................................................................................................... 5
Auditors............................................................................................................................................. 6
Audit Members.................................................................................................................................. 6
Auditee.............................................................................................................................................. 6

6.0

TRAINING AND COMPETENCE ASSURANCE:.............................................................................6

7.0

SITE CROSS AUDITS...................................................................................................................... 6

8.0
8.1
8.2

HSE AUDIT PROGRAMME AND PROCESS (LEVEL 2 AND 3).....................................................7

Audit Process.....6
Audit Activities.................................................................................................................................. 7

9.0

CATEGORIES OF NON-COMPLIANCE.......................................................................................... 7

10.0
10.1

REPORTING AUDIT FINDINGS...................................................................................................... 8

Follow-up and Closure of action....................................................................................................... 8

GLOSSARY....................................................................................................................................................... 8
APPENDIX 1

AUDIT PROCESS FLOW CHART.....................................................................................9

DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 3 of 9
Rev.0

DATE :30/09/2008

1.0

PURPOSE

This procedure describes how internal HSE audit will be executed by CPECC Management during the ADCOP
project to ensure the HSE requirements of the ADCOP Project, CPECC HSE Policy and HSE Management
System are met.
This HSE Audit procedure aims to ensure that the ADCOP HSE standards and requirements are implemented
by all departments and work sites, services and sub-contractors. It is also aimed at ensuring that all identified
HSE Risks are managed to ALARP.
Adequate commitment and human resource are a critical factor in the success of this audit procedure.

2.0

SCOPE

This HSE audit procedure is applicable to all ADCOP project activities.

There is need for periodic assessment of Project HSE requirements, CPECCs or her sub-contractors Health
Safety and Environment Management System (HSE MS). To achieve success and continuous improvement in
Health, Safety and Environment management in ADCOP project, reviewing performance through regular and
structured auditing system is essential to ensure continued effectiveness of the HSE MS.
This procedure describes the audit programme and how actions arising from various audits and inspections are
monitored and completed.

3.0

AIMS AND OBJECTIVES

The objective of CPECC in developing this audit procedure is to ensure the health and safety of all ADCOP
project personnel including sub-contractors and 3rd parties are protected. It is also aimed at ensuring that the
environment is left better than we met it.
A consequent objective is to ensure that all risks identified by audits and investigations are minimised through
timely completion of agreed actions.
Aims of this audit procedure are to:
Demonstrate to COMPANY, PMC and CPECC Management that an audit system is placed consistent
with the hazards and risks of ADCOP project.
Identify areas for improvement in practices and procedures
Ensures that there is a system in place to improve HSE performance through observation, recording
and coaching
The Objectives of the audit process are to:
Actively involve the workforce in periodic self-assessments of the effectiveness of process and
procedures designed to achieve ADCOP HSE requirements and objectives
Ensures findings from audits are prioritised, tracked, closed out and used to systematically improve the
HSE MS

4.0

AUDIT HIERARCHY

The hierarchy of HSE audits within CPECC ADCOP project is described below:
Level 1 Corporate HSE Audit:
Involves:1.) HSE audit from CPECC Head office in Beijing China
2.) Audit of CPECC-ADCOP Project (Project HSE-MS & Site Activities) by CPECC ADCOP HSE Team
Plan/schedule of audits is contained in the ADCOP Project HSE Management Plan 30-99-90-1672
Attachment 3 Audit, Inspection & Meeting schedule.
Level 2 HSE Audit:
Includes HSE audits such as: - Sub-contractor/Vendors pre-construction/pre-execution audit.
DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 4 of 9
Rev.0

DATE :30/09/2008

CPECC ADCOP HSE MS audit (this audit shall be carried out at the instance of IPIC or PMC to verify
compliance of EPC contractor CPECC with ADCOP HSE Requirements).
Level 3 HSE Audit:
Level 3 HSE Audit refers to CPECC being audited by external body for certification such as ISO etc.
This audit is not covered in the scope of this procedure.
Refer to attachment 3.0 Audit, Inspection & Meeting schedule in the HSE Management Plan. Document no
30-99-90-1672 for detailed HSE audit schedule for ADCOP Project. This audit schedule/programme shall be
updated annually.

5.0

RESPONSIBILITIES

5.1
CPECC Corporate HSE Manager (CPECC Head Office Beijing)
The CPECC Corporate HSE Manager has the overall management responsibility for the effective
implementation of HSE across all CPECC activities. It is the responsibility of the corporate HSE Manager to
provide adequate resources for HSE Audits across all of CPECCs HSE MSs through the interface between
level 1 auditing and level 2 auditing. Deficiencies in the corporate management system identified within levels
1& 2 audits will be reported to the corporate HSE Manager by the HSE Audit Manager (ADCOP HSE Manager).
5.2
HSE Audit Manager (ADCOP HSE Manager)
The HSE Manager of CPECC for ADCOP project will have the overall responsibility for managing and coordinating the levels 1(section2) & Level 2 audits. This will include:

Defining the audit scope and set up audit strategy including audit Terms Of Reference (TOR).
Ensuring that sufficiently trained and experienced human resource is available
Assuring the competence and appointment of Lead Auditor and Auditors for any particular audit
Ensuring a realistic and achievable HSE audit programme is developed and implemented across all
ADCOP Project activities.
Co-ordinating the preparation of audit reports; produce a quarterly audit report for the corporate HSE
Manager
Monitoring system non-compliances and corrective action requests.
Ensuring that the follow-up process is completed satisfactorily by assisting the auditee where necessary

The HSE Audit Manager will be an experienced lead auditor having undergone formal lead auditor training
5.3
Lead Auditors
Lead auditors are responsible for ensuring the efficient and effective conduct and completion of the audit within
the scope of the audit plan. Lead Auditors activity shall cover the following:

Consulting with the HSE Audit Manager and auditee in finalising the scope Terms Of Reference and
applicable standards of the audit.
Obtaining relevant information necessary to meet the objectives of the audit
Forming the audit team after having given consideration to representations of the auditee and other
appropriate parties
Preparing the audit plan
Selection of Audit team members
Communicate the final audit plan the audit team, auditee and the HSE audit Manager
C-coordinating the preparation of working documents and detailed procedures and briefing the audit
team
Directing the activities of the audit team
Seeking to resolve any problems that arise during the audit
Recognise when audit objectives appears to become unattainable and reporting the reasons to HSE
Audit Manager and the auditee
Representing the audit team in discussions with the auditee prior to, during and after the audit
Notifying the auditee of observations of critical non-conformities without delay
Reporting on the audit clearly and conclusively within the time agreed with the HSE Audit Manager
Making clear and concise recommendations to the auditee for corrective actions, ensuring that these
represent the fair opinion of the team.
Maintaining the independence and objectivity of the team and the audit report
DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 5 of 9
Rev.0

DATE :30/09/2008

Providing language translation facilities, if necessary

5.4
Auditors
The auditors are responsible for the following:

Following the directions of and supporting the lead auditor

Planning and carrying out the assigned task objectively, effectively and efficiently within the scope of
the audit.
Collating and analysing relevant and sufficient evidence to allow findings to be made and conclusions
to be drawn regarding the auditees system
Preparing working documents under the direction of the lead auditor
Documenting individual audit findings
Safeguarding documents pertaining to the audit and returning such documents as required
Assisting in writing the audit report.

5.5
Audit Members
Audit team members will be selected by the lead auditor. Members should

5.6

6.0

Collectively understand the purpose of the audit

Know the policies and principles being audited
Understand the output of audit and expectations
Possess a generic understanding of the facility or operation being audited.
Have relevant experience and expertise
Auditee
Cooperating with the auditors to permit the audit objectives to be achieved.
Informing employees about the objectives and scope of the audit as necessary
Providing the facilities needed for the audit team in order to ensure an effective an effective and
efficient audit process
Appointing responsible and competent staff to accompany members of the audit team, to act as guide
to the site.
Providing access to the audited facilities including personnel and relevant evidential material, as
requested by the auditors, and assisting them generally.
Developing corrective action plan that defines actions steps and responsibilities for all those findings
listed in the final audit report, that are acceptable by the auditee; the timeliness and completion of
corrective actions from previous audits should be reviewed during subsequent reviews.

TRAINING AND COMPETENCE ASSURANCE:

To develop a sufficient pool of qualified and competent Auditors, Lead Auditors shall have sufficient seniority
and relevant experience to provide credibility and authoritative weight to the audit findings and
recommendations. He or she shall be trained and have experience in carrying out HSE audits. Such training
shall be provided by an external organisation.
Audit team should possess an appropriate combination of knowledge, skills, personal qualities and experience
to carry out audit responsibilities.

7.0

SITE CROSS AUDITS

To develop and share best practice, cross audits should be executed across sites. It shall be coordinated by
HSE Audit Manager.

8.0

HSE AUDIT PROGRAMME AND PROCESS (LEVEL 1 AND 2)

The HSE Audit Manager will develop an annual programme for level 1 and 2 HSE Audits. The audit
programmes will be based upon the particular requirements of ADCOP Project HSE MS.
The audit programmes will be designed to ensure that critical elements of HSE are reviewed in-line with their
significance i.e. more significant elements receiving more regular auditing than less significant elements, the
DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 6 of 9
Rev.0

DATE :30/09/2008

frequency of auditing will also reflect the degree of risk. A spreadsheet containing this audit programme shall
be developed by HSE Audit Manager annually and cascaded to relevant ADCOP project personnel.
8.1
Audit Process
An audit Terms Of Reference with clear scope and objectives will be sent well in advance to the auditee. A
planning meeting maybe necessary and will be coordinated by the lead auditor. Each audit shall commence
with an opening meeting with Auditee management, and audit team including Regional management as
necessary. The objective of the opening meeting will be to:

Reaffirm the scope of the audit objectives

Reaffirm the agenda and audit plans
Obtain conformation on special topics to include or sensitive areas of interest to the audit team.
Reaffirm schedule for the closing meeting.

8.2
Audit Activities
Typical audit activities include:

Site walk-through; inspection of equipment and activities covered by the scope of the audit
Document review and records review
Review of site HSE performance
Reviewing policies, procedures and required records
Interviews of personnel at the site or activity being audited
Interviewing management, quality control and technical staff as necessary
Assessing implementation of training plans and other HSE plans
Reviewing of site or activity HSE inspection and audit programme.
Documenting and categorising findings each day
Analysing findings and preparing list of key findings and recommendations of draft report for use at
final meeting

Each audit shall end with a closing meeting involving the audit team, site management and auditee senior
representatives. The closing meeting will be aimed to:

9.0

Review the audit findings and recommendations

Confirm, following consultation with the HSE Audit Manager, a schedule and distribution of the audit
report and auditees response to findings and recommendations.

CATEGORIES OF NON-COMPLIANCE

The classification of non- compliances will fall into three Categories as defined below;
9.1
Major
If the issue identified poses an actual or potential critical system failure or if an entire section of the MS is
absent/faulty. Financial Implications, Directly affects safety, environmental and health issues - likely cost
>$5,000,
9.2
Minor
If the issue is a non-critical system failure, an incomplete section of the MS or an inappropriate/incorrect
interpretation or application of a CPECC HSE procedure or requirement. Financial Implications, Directly
affects safety, environmental and health issues $0 - $5,000,
9.3
Recommendation
If the issue identified can be seen as a proposed improvement to the current MS both in terms of system
operation and system deliverable.
It will be the responsibility of the Lead auditor to ensure that the audit findings within their area of responsibility
are consistent; it will furthermore be the responsibility of the HSE Audit Manager to ensure consistency of audit
findings across all areas and is to be kept under review and reported annually during HSE plan review.

DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 7 of 9
Rev.0

DATE :30/09/2008

10.0

REPORTING AUDIT FINDINGS

Audit reports are to be completed following the agreed audit report template. Following the completion of the
audit report the lead auditor will input the relevant information relating to major and minor non-compliances and
their respective corrective action requests. The audit report shall be signed all relevant parties including the
lead auditor and the auditeee. Both paper and e-mail copies shall be issued to all individuals and parties
identified with actions to complete in order to close out the non-compliances. Typical audit report contents
include:

Introduction location, activity, dates, lead auditor, audit team members(auditors), scope and
objectives of the audit
Executive summary
General observations
Positive findings
Deficiencies
Reference to regulations, policies, procedures, guidelines, etc
Recommended actions

10.1
Follow-up and Closure of action
Corrective action plans and status reports are the responsibility of the auditee until all action items are closed
out. The progress of the actions and reports will normally be followed up by the lead auditor.

GLOSSARY
ADCOP
ADCO
ADNOC
COMPANY
COMPANY Representative
PMC
CPECC

=
=
=
=
=
=
=

HSE
HSE MS
HOC
EPC
UA/UC
EIA
CEMP

=
=
=
=
=
=
=

Abu Dhabi Crude Oil Pipeline Project

Abu Dhabi Company for Onshore Oil Operation
Abu Dhabi National Oil Company
International Petroleum Investment Company (IPIC)
IPIC Representative PMC (ILF Consulting Engineers.
Project Management Consultant
China Petroleum Engineering & Construction (Group) Corporation
EPC Contractor
Health, Safety and Environment
Health, Safety and Environment Management System
Hazard Observation Card
Engineering Procurement and Construction
Unsafe Actions/ Unsafe Conditions
Environmental Impact Assessment
Constrcution Environmental Management Plan

DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 8 of 9
Rev.0

DATE :30/09/2008

APPENDIX 1

AUDIT PROCESS FLOW CHART

HSE
HSEAUDIT
AUDITMANAGER
MANAGER
DECIDES
DECIDESAND
ANDPREPARES
PREPARES
ANNUAL
ANNUALHSE
HSEAUDIT
AUDIT
SCHEDULE
SCHEDULE

HSE
HSEAUDIT
AUDITMANAGER
MANAGER
PREPARES
PREPARESAUDIT
AUDITTERMS
TERMS
OF
OFREFERENCE
REFERENCE
(TOR)
(TOR)

AUDIT
AUDIT
IS
ISCONDUCTED
CONDUCTEDTO
TO
IDENTIFY
IDENTIFYAND
ANDASSESS
ASSESS
RISKS
RISKS

REPORT
REPORTAUDIT
AUDIT
FINDINGS
FINDINGS

AGREE
AGREE
IMMEDIATE
IMMEDIATECORRECTIVE
CORRECTIVE
ACTION
ACTION
WITH
WITHAUDITEE
AUDITEE

AGREE
AGREELONG
LONGTERM
TERM
CORRECTIVE
CORRECTIVEACTIONS
ACTIONSTO
TO
MITIGATE
MITIGATETO
TO
ACCEPTABLE
ACCEPTABLE(ALARP)
(ALARP)

FINAL
FINALREPORT
REPORT
AND
AND
ACTION
ACTIONPLAN
PLAN

AUDIT
AUDIT
CLOSE
CLOSEOUT
OUTWITH
WITH
OBJECTIVE
OBJECTIVEEVIDENCE
EVIDENCE

DOCUMENT TITLE :

HSE AUDIT PROCEDURE

PROJECT:

ABU DHABI CRUDE OIL PIPELINE PROJECT

DOCUMENT No.:

30-99-90-1682

Project No: E30153

Page 9 of 9
Rev.0

DATE :30/09/2008