ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

1 HEALTH, SAFETY, SECURITY AND ENVIRONMENT GENERALLY

1.1 The OWNERS acknowledge the CHARTERERS's commitment to safety and will comply with the
CHARTERERS HSE policies, procedures and standards.

1.2 The OWNERS confirm they have a written HSE policy and HSE manual and procedures, which
are not less stringent than CHARTERERS HSE Policy and Procedures, and which is fully
understood and complied with by the Master, officers, crew and shore-based employees.

1.3 In line with CHARTERERS Safety Policy, OWNERS and their staff have an obligation to support
at all times those on board the VESSEL for which they are responsible, by ensuring that
equipment, apparel and supplies required for safety purposes are available to the VESSEL.
Where special hazards arise on installed ship's equipment or in the use of consumable stores,
the necessary instructions or advice shall be made available to the VESSEL. The OWNERS shall
ensure that all equipment, plant, tools, facilities and other things are at all times in a safe,
sound and proper condition and capable of performing the functions for which they are
intended.

1.4 The OWNERS shall ensure that all personnel have, maintain and wear all necessary safety
items (including but not limited to safety helmet, safety harness, footwear and gloves) and
that all personnel are familiar with the need to wear PPE suitable for the job in hand. Crews
shall be provided by the OWNERS with soft shoes for use inside the accommodation. The use
of "Flip-Flops" is prohibited on board the VESSEL.

1.5 Furthermore it is the safety objective and philosophy of CHARTERERS 'TO ELIMINATE
INJURIES OF WHATSOEVER KIND TO ANY EMPLOYEE AND TO ANY MEMBER OF THE PUBLIC
THAT COULD BE CAUSED BY ACTIVITIES IN WHICH CHARTERERS AND THEIR CONTRACTORS
ARE ENGAGED'.

OWNERS are referred to CHARTERERS "Standard HSE Tender Questionnaire" in the Technical
Appendices, which is used to assess OWNERS' Safety Policy and Organisation and which at
the same time provides useful information to OWNERS as to how to set up a workable safety
organisation.

1.6 The 'Code of Safe Working Practices for Merchant Seamen' issued by the Department of
Transport (UK) is CHARTERERS basis for safe working practices and provides information and
guidance on procedures to be followed and measures to be adopted for improving and
maintaining the safety and health of those living and working on board ship.

The Code may be supplemented by other codes, guides, instructions or advice on safety that
may be issued by CHARTERERS to particular ships.

1.7 OWNERS shall ensure that the Master, officers and crew are given the necessary training to
perform normal and emergency duties safely, correctly and efficiently which shall include
regular drills with records of the nature of the emergency procedure exercised and the names
of the personnel taking part.

C180098/C180099/C180100/C180101 Page 1
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

1.8 The OWNERS shall ensure that the Master, officers and crew are not in possession of or under
the influence of any alcohol, drug or other intoxicating substance while on board Ship or on
the CHARTERERS premises.

1.9 OWNERS shall ensure that the Master, officers and crew maintain a high standard of hygiene
on board the VESSEL throughout the duration of the CHARTER PARTY.

1.10 Non-compliance with CHARTERERS instructions in respect of any safety and health matters
will result in such disciplinary action as is deemed necessary by CHARTERERS being taken
against OWNERS. Such action may include Off-HIRE and in cases of serious breaches or
continual poor safety performance, CHARTERERS shall be entitled to terminate the CHARTER
PARTY in accordance with clause 27 of PART II of the CHARTER PARTY.

2 HEALTH, SAFETY AND ENVIRONMENT STANDARDS

2.1 Master Index

The OWNERS shall perform the CHARTER PARTY in accordance with the requirements of the
CHARTERERS, using the best industry standards and in compliance with all laws, rules,
regulations, Codes of Practice, manuals and standards and in particular CHARTERERS' "HSE
STANDARDS", including subsequent amendments, and the UK D.O.T. publication "Code of
Safe Working Practices for Merchant Seamen", and the CHARTERERS "Guide to Marine
Procedures" and in such a manner as will always safeguard and protect all personnel and
equipment. Copies of the CHARTERERS' "HSE Standards" may be supplied to the OWNERS
upon request to the CHARTERERS. The OWNERS shall also ensure that these requirements
are met by their sub-contractors and their sub-contractors' employees.

2.2 Specific Modules

In addition to the requirements of the HSE Standards - OWNERS shall use the following
specific modules within the HSE Standards, including the referenced documentation.
Irrespective of the modules nominated herein, it shall remain the sole responsibility of the
OWNERS to perform the CHARTER PARTY in compliance with the contractual requirements
and the CHARTERERS take no responsibility for errors and omissions in any guidance or
advice.
Document
Title Document Number Title
Number
BLNG Health, Security, Safety, HSEO-CP-224 Personnel
BLNG HSE/
Environment & Social Protective
SP Policy
performance Clothing (PPE)
HSER-CP-222 Confined Space
HSES-CP-01 BLNG Security
Work
OPS-CP-121 Safe Isolation
Smoking Policy at Work
BLNG Policy Lock Out- Tag
Location
Out
Drugs, Alcohol and Substance HSEO-CP-02 Health Risk
BLNG Policy
Abuse Policy Assessment

C180098/C180099/C180100/C180101 Page 2
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

HSER-CP-227 Oil Spill Response HSEO-CP-01 Legionella

OPS-CP-115 Managing
Security at BLNG
HSEA-CP-208 Waste Management
Sdn Port
Facilities
HSER-CP-209 BLNG Specific
HSEO-CP-06 Diving Operation
HSE Module
BLNG.25.00.01-CP-05 HSSE Incident
Lifting and Hoisting Control
EMI-CP-05 Management
Procedure
Procedure
Maritime Safety Personnel
HSEO-CP-10
Transport Vessel Assurance

The above list may be varied and updated from time to time.

2.3 Possession of Standards

It shall remain the sole responsibility of the OWNERS to ensure possession of the latest
edition of Master Index Module 00 as well as the nominated specific of the standards, which
are available from the CHARTERERS during the term of the CHARTER PARTY.

2.4 Training

The OWNERS shall be wholly responsible for ensuring that all personnel, including the
OWNERS' sub-contractors' personnel, are suitably qualified and trained in matters of Health,
Safety and the Environment. Any and all fees and costs incurred in respect of Health, Safety
and Environment training courses shall be to the OWNERS' account and CHARTERERS shall
not be called on to make any payment to the OWNERS for courses, time spent by the
OWNERS' personnel, including the OWNERS' sub-contractors' personnel or any other costs
associated in attending any such courses, briefings or similar, or in achieving any such
qualifications. Any and all such fees and costs shall be deemed to have been included in the
Charter HIRE fees.

2.5 Job Training Packs

As part of the CHARTERERS commitments to safety, a number of modular training packs have
been compiled to cover individual aspects of the many integrated operations. The OWNERS
will be provided with an appropriate set of those training packs, and must produce a plan
within one month of commencing service under the contract which details what training will
be undertaken using the packs, advises who will carry out the training sessions, and provides
a schedule for implementation.

2.6 Milestone Zero

In addition to the CHARTERERS' rights to terminate the CHARTER PARTY in accordance with
the termination provisions of these documents, the CHARTERERS may terminate the
CHARTER PARTY, if, the CHARTERERS in their sole opinion consider that the OWNERS have
not completed any outstanding Health, Safety and Environment issues and associated action

C180098/C180099/C180100/C180101 Page 3
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

points, to the CHARTERERS' satisfaction by the MILESTONE ZERO date, as specified in Box 6
of PART I of the CHARTER PARTY, as explained in the CHARTERERS' HSE Standards - Master
Index (latest revision). All costs incurred by the OWNERS under the CHARTER PARTY prior
and subsequent to the date of the termination shall be to the OWNERS' account.
Furthermore, the OWNERS shall comply with the CHARTERERS MILESTONE ZERO
requirements throughout the duration of the CHARTER PARTY.

3 SAFETY AND QUALITY SYSTEMS

3.1 Safety Management System

The CHARTERERS place great emphasis on safety and the OWNERS shall provide evidence of
an effective safety management system in their organisation and on board the VESSEL. This
includes a specific annual safety plan for the OWNERS’ company and the VESSEL, which
should show clear targets. At the end of the year the safety performance of the OWNERS
will be assessed against the set targets for the year under review. This information will assist
the CHARTERERS in evaluating the suitability of marine contractors for future tenders.

The Safety Management System (SMS) is defined as the policies, objectives, organisation
structure, responsibilities, standards, procedures, controls, resources and process of review
which shall be in place to manage the safety of the VESSEL during all operations.

3.1.1 The policy for health, safety at work and the protection of the environment will be described
in full in the OWNERS Health, Safety and Environmental policy and the CHARTERERS HSE
Policy. The OWNERS HSE policy shall be fully compatible with the CHARTERERS policy.

The objectives, which underpin these policies, are summarised:-

❖ to prevent all injuries, by encouraging active work force participation

❖ to eliminate environmentally damaging discharges and emissions through the
implementation and monitoring of an effective waste management programme.
❖ to provide properly designed and well maintained facilities
❖ to provide and maintain a safe system of work
❖ to provide appropriate training for all persons on board the VESSEL.

3.1.2 The OWNERS and the Master on board the VESSEL are responsible for the safety of all persons
on board the VESSEL and are accountable for actions to:

❖ Implement the OWNERS HSE policy

❖ Set objectives and targets as a HSE plan (after receiving feedback from the OWNERS
staff and the CHARTERERS) and cascade these as individual tasks and targets
❖ Monitor the performance of the SMS.
❖ Initiate corrective action, after receiving feedback from staff, to rectify all identified
defects and monitor corrective action implementation.

C180098/C180099/C180100/C180101 Page 4
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

It will be the responsibility of the Master that all work on board the VESSEL is conducted in a
safe, healthy and environmentally sound manner and to co-operate fully in implementing the
HSE plan.

The crew's involvement in HSE "management" would be achieved through routine day to day
contact discussion, which would include a structured system of safety meetings. The
OWNERS staff is all required to work to the same standards and achieve comparable levels
of safety performance as the CHARTERERS employees.

3.1.3 Marine operations will be managed through the use of standards and procedures:

❖ VESSEL scheduling – directly under control of contract holder at BLNG.

❖ Routine Operations - the CHARTERERS and the OWNERS will use written operating
procedures for the control of routine work activities.
❖ Non-routine Operations - the OWNERS Permit to Work system will be used to control
and co-ordinate all non-routine safety critical work activity.
❖ Hand Over - senior officers will complete a standard hand-over form at the end of
each tour. It will include but not be limited to, safety status of the VESSEL and,
equipment integrity, current and future significant work programmes.

3.1.4 To assure that equipment is provided and maintained in a safe condition it is recommended
that a "planned maintenance" system based on ISM is implemented. This will verify that
maintenance and inspection is adequate and fit for purpose.

3.1.5 The OWNERS will prepare an annual HSE plan. This incorporates a schedule for emergency
response exercises, inspections, audits, reviews, corrective actions, plans for safety training
and an improvement strategy for the VESSEL.

3.1.6 Performance monitoring is inherent within the annual HSE plan, which defines the objectives,
tasks and targets. Performance reviewed monthly, being both:-

❖ reactive, defined TRCF and LTIF

❖ proactive, defined by the actual line inspections and emergency drills against plan.

Performance monitoring, integrated audit programmes and reviews are all means by which
the Safety Management System deficiencies may be identified.

The OWNERS and the CHARTERERS Audit Plan will subject the VESSEL to a programme of
external and internal audits. These indicate the effectiveness of control and keep the
CHARTERERS and the OWNERS management informed regarding the health and integrity of
the marine operation. For each audit recommendation, line responsibilities and completion
target dates are established, with appropriate records. Status reports to be issued at regular
intervals.

3.1.7 The VESSEL HSE improvement strategy will be defined in the OWNERS HSE plan and is built
on initiatives identified to improve HSE performance. The OWNERS HSE plans will be subject
to a number of formal reviews:-

C180098/C180099/C180100/C180101 Page 5
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

❖ The OWNERS review their HSE plan performance monthly and reports to the OWNERS
Managing Director and the CHARTERERS
❖ safety statistics are presented at safety meetings and feedback is sought
❖ audit is against the Safety Management System.

3.2 Hazard Management Process

The hazard management process (described as the systematic identification, assessment,

control and planning for the recovery from all hazards) has been applied to the safety critical
activities which compromise the work required to plan, execute and review operations.

3.2.1 The objectives of the hazard management process, as part of the Safety Management
System, are:-

❖ the hazards inherent in operations have been systematically identified

❖ arrangements will be in place to control them and to recover control if it is lost
❖ adequate training, verification and improvement arrangements will be implemented

3.2.2 The potential major hazards facing the VESSEL during standard marine operations will be
identified through Hazard Identification Plans and the Hazard Register. Remedial actions,
arising as a result of the hazard identification plan will be documented and for each action
item target completion dates and accountable action parties will be established. The
objective is to minimise the exposure of personnel to these hazards and to demonstrate that
all reasonable measures have been taken to reduce the risk.

3.3 OWNERS Quality Manual

The OWNERS shall warrant that a Quality System is established and documented in
accordance with ISM. The OWNERS Quality Manual shall clarify the OWNERS Quality, Safety
and Environmental policies. The Quality Manual must state the procedures and practices of
the OWNERS organisation that provide feedback control, correction and improvement to
maintain Quality and HSE assurances in line with ISM standard.

A Remedial Action Plan may require to be generated by the OWNERS following identification
of shortcomings in the Quality System or Safety Management System. The OWNERS Quality
Manual Remedial Action Plan implements improvements to the Quality Manual indicated
during audits or identified through the Hazard Management Process.

3.4 Safety Meetings

The OWNERS shall be responsible for maintaining and enhancing the safety awareness of its
personnel, including arranging safety meetings and participating in the CHARTERERS
training/emergency drills. A scenario of Safety Drills and Plans shall be submitted. Copies of
minutes of the OWNERS safety meetings shall be sent to the CHARTERERS. The OWNERS shall
encourage its personnel to actively contribute to the safety meetings and to identify safety
topics for inclusion in the agenda for safety meetings.

C180098/C180099/C180100/C180101 Page 6
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

4 INCIDENT/ACCIDENT REPORTING (Refer BLNG.25.00.01-CP-05)

4.1 Reporting of Accidents

The OWNERS shall comply with the CHARTERERS accident and incident reporting system.
Any hazardous incident, irrespective of whether or not it results in injury to personnel or
damage to VESSEL or equipment, shall immediately be verbally reported to the CHARTERERS
and within 12 hours to be reported to the CHARTERERS by making a writteAn report on the
CHARTERERS standard `Incident Report' form. Failure to report an incident by the OWNERS
shall be deemed to be a fundamental breach of the CHARTER PARTY and may result in action
being taken under the terms of the CHARTER PARTY.

Reportable incidents include but shall not be limited to the following;

(a) Fatal Accident

(b) Near Miss : Any Incident, which has the potential to cause personal injury or damage
to property, to either the CHARTERERS or the OWNERS personnel and equipment.

(c) Any personal injury which requires medical or First-Aid treatment.

(d) Any incident which results in damage to any property, plant or equipment, including
the CHARTERERS road vehicles.

(e) Any incident involving a private vehicle used on CHARTERERS' business where
injuries were sustained as a result of that incident.

(f) Pollution, theft, vandalism, product loss, excessive noise or other disturbances.

4.2 The OWNERS shall utilise the CHARTERERS accident and incident reporting system, in
accordance with the CHARTERERS "HSE Standards”. All incidents, which have or could have
caused injury, illness, damage or loss are assessed, investigated and reported in accordance
with the HSE Control Procedure HSER-CP-206 HSSE Incident Management procedure. It is of
paramount importance that after the investigation, corrective action items together with
action parties and target dates are established.

4.3 At the end of each calendar month, and annually, and upon completion of the CHARTER
PARTY, the OWNERS shall prepare and submit to the CHARTERERS, a summary report of their
safety performance together with accident statistics. The reports shall detail the following
matters:

a) Summary of Total Man Hours.

b) Number of Lost Time Injuries.

c) Number of Man Days lost as a result of Lost Time Injuries.

d) Number of First Aid Injuries.

C180098/C180099/C180100/C180101 Page 7
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

e)Number of Vehicle Accidents including Marine Vessels.

f) Number of Fires.

g) Near misses.

h) PAKATs

5 DRUGS, ALCOHOL AND SUBSTANCE ABUSE POLICY

5.1 Before the commencement of the CHARTER PARTY, the OWNERS shall have established a
drugs, alcohol and substance abuse policy written in both English, Malay and any other
language deemed necessary by the CHARTERERS and the OWNERS shall ensure that this
policy is understood and observed by all personnel (including the OWNERS subcontractors
personnel) engaged in the performance of the CHARTER PARTY.

5.2 The OWNERS drugs, alcohol and substance abuse policy shall provide as a minimum
requirement the following:

a) all personnel while engaged in the performance of the CHARTER PARTY or on any of
the CHARTERERS premises shall be free from the influence of alcohol, illegal drugs or
other prohibited substances.
b) no personnel shall use legal drugs illicitly nor shall they use, possess, distribute, buy or
sell alcohol or illegal drugs while engaged in the performance of the CHARTER PARTY
or on any of the CHARTERERS premises.
c) any personnel who are suspected of having consumed alcohol or illegal drugs or other
prohibited substances during the currency of the CHARTER PARTY shall be required to
undergo appropriate medical tests under the control of the CHARTERERS medical
facilities.
d) any personnel who are in breach of above and any personnel who refuse to be tested
in accordance with the provisions of sub-clause (c) above or in respect of whom positive
test results are obtained shall be subject to disciplinary action which may include
instant dismissal without compensation of any kind whatsoever.
e) The OWNERS shall forward to the CHARTERERS as soon as possible details of any
personnel who have violated any of the provision of this clause.

5.3 The OWNERS shall ensure that any personnel it recruits undergoes and passes a medical drug
test prior to employment and that the medical records substantiating such testing are
available for the CHARTERERS inspection on request.

5.4 During the duration of the CHARTER PARTY, the OWNERS shall ensure that personnel
engaged here under do not bring or transport or cause to be brought onto the VESSEL or any
site belonging or under the control of the CHARTERERS any intoxicating liquor, alcoholic
beverage or non-prescription drugs.

5.5 If any of the OWNERS personnel require the use of prescription drugs such notice shall be
brought to the attention of the CHARTERERS in writing, with full details of the medical
C180098/C180099/C180100/C180101 Page 8
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

condition requiring such prescription drugs, prior to the appointment of the individual to the
work to be executed under the CHARTER PARTY.

5.6 In the event that any of the OWNERS personnel have drugs prescribed after engagement
under the CHARTER PARTY then the OWNERS shall immediately submit to the CHARTERERS
full particulars of the condition requiring the use of prescription drugs including full
particulars of the prescription drugs. The CHARTERERS Chief Medical Officer shall be entitled
to obtain further details from the OWNERS Medical Officer or from the Medical Officer
prescribing the required drugs.

5.7 The CHARTERERS shall have the right to refuse permission for the assignment to the CHARTER
PARTY of any such individual requiring prescription drugs without giving reasons.

6 MEDICAL WELFARE

6.1 At no cost to the CHARTERERS the OWNERS shall be responsible for the medical welfare of
its employees, servants or agents and their families and shall take care of periodical medical
examinations, arrangements for medical attendance, treatment or hospitalisation if and
when necessary and will arrange suitable insurance coverage for such contingencies.

6.2 Medical examinations of each crewmember shall be conducted once every 12 months and
be duly certified as physically and medically fit. If so required by the CHARTERERS, the
OWNERS personnel must produce medical certificates issued by medical practitioners
acceptable to the CHARTERERS and prior to their arrival in Brunei Darussalam, certifying that
they are medically fit to be a seafarer and live and work in Brunei Darussalam.

6.3 In cases of emergency, the CHARTERERS may make or provide for the necessary emergency
arrangements, the costs of which shall be reimbursed to the CHARTERERS by the OWNERS.
All accident victims shall be referred to Panaga Medical Hospital for treatment for an initial
assessment of the severity. If under the normal circumstances, this could increase the risk to
the patient due to the distance they need to travel, information should be relayed to the
CHARTERERS regarding other arrangements.

7 ENVIRONMENT

7.1 For the purpose of this Clause, the WORK SITE shall be defined as all areas of VESSEL
Operations and shall include the OWNERS land based maintenance and Office facilities.

7.2 The OWNERS shall comply with any laws, legislation and/or regulations of Brunei Darussalam
in so far as it applies to environmental protection. In addition, the OWNERS shall comply
with any international conventions or legislation relating to environmental protection which
has been signed or, ratified by Brunei Darussalam or which has been specified in the Charter
Party.

7.3 The OWNERS shall comply with the CHARTERERS policy on protection of the environment
which is to apply the best practicable means to account for and minimise emissions, effluent,
and waste, and thereby protect air, water, soil, and plant and animal life from adverse effect
of its operations, and to minimise any nuisance that might arise.
C180098/C180099/C180100/C180101 Page 9
 ANNEX B - HEALTH, SAFETY, SERCURITY & ENVIRONMENT

7.4 The OWNERS shall only use products, which do not cause undue impact on the environment
when used in accordance with the instructions of the supplier. Products shall be stored in a
manner which do not cause undue impact on the environment.

7.5 The OWNERS shall take the necessary precautions to prevent damage to the WORK SITE and
to property and the environment adjoining the WORK SITE. Without prejudice to Clause 13
of PART II of the CHARTER PARTY the OWNERS shall at their cost be responsible for the
control, disposal and removal of all liquid or non liquid pollutant or waste material of
whatever nature that is or has been brought onto the WORK SITE by the OWNERS or left
there during the OWNERS occupation of the WORK SITE or which has been discharged,
seeped, spilled, or blown out or leaked from equipment and materials provided by the
OWNERS, and/or its subcontractors in connection with the performance of the CHARTER
PARTY whether or not the negligence or breach of duty of the CHARTERERS, its officers,
employees, or agents caused or contributed to the discharge, seepage spillage, blow out or
leakage of such pollutant or waste material. The OWNERS shall take whatever remedial
measures considered being necessary by the CHARTERERS.

7.6 The disposal of any waste materials from the WORK SITE shall be in accordance with
CHARTERERS procedures. The disposal of waste materials must be agreed with CHARTERERS
in advance and shall only be to waste disposal sites approved for the purpose.

7.7 At all times during the CHARTER PARTY OWNERS shall keep the WORK SITE and its
surroundings clean, tidy and in good order. OWNERS shall remove any waste materials and
faulty equipment as soon as reasonably practical.

7.8 Any Operations being executed under, in connection with, or as a result of obligations under
the CHARTER PARTY shall not be deemed to have been completed until OWNERS have
removed from the WORK SITE and its surroundings all waste, debris, scrap, left over
materials, and temporary structures and has presented the WORK SITE to CHARTERERS in a
state of good order and cleanliness. The degree of rehabilitation of the WORK SITE shall be
in accordance with the requirements of this Clause.

7.9 The disposal of any and all waste materials shall be in accordance with the CHARTERERS'
procedures. The disposal of waste materials shall be agreed with the CHARTERERS in advance
and shall only be to waste disposal sites approved by the CHARTERERS and for the specific
purpose. With the exception of biodegradable or macerated food wastes, no waste materials
shall be discharged into the sea.

7.10 All other waste materials, used materials, packing material, scrap equipment and all other
kinds of solid waste material shall be compressed and stored in plastic bags and air-tight
drums on board the VESSEL. This waste matter shall be discharged to supply VESSELs,
platforms or in port. Waste oils shall not be discharged into the sea but shall be discharged
to the CHARTERERS' facilities.

C180098/C180099/C180100/C180101 Page 10