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FRO1O5569—

PROCESS SAFETY MANAGEMENT IMPLEMENTATIONIN PERTAMINA - BADAK LNG PLANT

MISE EN PRATIQUE DE LA GESTION DE LA SkCURITE PERTAMINA- USINE DE PT BADAK

Munir Amsyari

The Badak LNG Plant is located in Bontang, East Kalimantan, Indonesia, and owned by Pertamina(Indonesian Government 011 Company). The total production is about 18.00 million tones per annum ofLNG. In the year 2000 the total LNG production of the Badak LNG Plant will be about 21.64 milliontones per annum, produced from eight LNG Trains. These company milestones and otherachievements are based on the Pertamina initiatives in 1977 to build two LNG Trains in Bontang. Inorder to maintain continuous supply of LNG to the buyers, Badak LNG Plant Management hasestablished The Company Philosophy i.e. To Operate the Badak LNG Plant Safely, Reliably andEfficiently. Process Safety Management has been implemented in the Badak LNG Plant to fulfill TheCompany Policy. Management of Change, one of the Process Safety Management elements, isconsidered the most important element in the support of the Plant operations of the Badak LNG Plant.This paper will explore the Badak LNG PIant Experiences to apply Management Of Change startingwith the initial implementation. The Badak LNG Plant Management Of Change is divided into threestages i.e. Evaluation/Study Stage, Safety Review Stage and Documentation Stage. These threestages are combined into a single component referred to as the “Project Flow Of Work”. In order toensure that the Safety Review Stage can be conducted in a timely manner to support the “ProjectFlow of Work, the Badak LNG Plant has developed and established a “Hazops Committee”. Thisgroup consists of multi disciplined members and is chaired by the Process Engineering Section Head.A high commitment and consistent application of Management Of Change has helped the Badak LNGPlant succeed to fulfill the Company Philosophy especially related to Safety. Up to the end of July1999, the Badak LNG Plant had achieved 50 Million Working Hours without a lost time accident.

L’usine de GNL de PT Badak est situee a Bontang, Kalimantan Est (anciennement Borneo),Indonesie. Elle appartient a Pertamina (Societe Nationale hdonesienne des Hydrocarbures). Cetteusine produit environ 18 millions de tonnes de GNL par an. Sa capacite de production sera portee a21,64 millions de tonnes par an a partir de I’an 2000, ce grace au 8e train de liquefaction. Cesresultats sent Ie fruit Ie la decision de Pertamina, prise en 1977, de construire deux trains deliquefaction a Bontang. Afin d’assurer la continuity de I’approvisionnement en GNL requise par Iesacheteurs, la direction de I’usine a defini la (f Phiiosophie de la compagnie ~~: faire fonctionner I’usinede PT Badak en toute securite, de fa$on fiable et efficace. A cet effet, PT Badak a developpe unsysteme de gestion de la securite. La K Gestion du changement >>est considered comme Ie principalelement de la gestion de la securite assurant Ie bon fonctionnement de I’usine a Badak LNG >>.Cetexpose decrit Inexperience de PT Badak clans I’application de la Gestion du changement depuis samise en oeuvre. La Gestion du changement comprend 3 etapes : ~vaiuation/Phase d’etude, Bilan dela securite et Documentation. Ces trois etapes sent combinees en un seul element, appele<<Circulation des t~ches projet n. Afin de s’assurer que Ies bilans de securite sent effectues aumoment requis par Ies projets, PT Badak a mis en place un <(Comite Hazops >>. Ce groupemultidisciplinaire est dirige par Ie responsible de la section Precedes. L’engagement considerable dePT Badak et I’application scrupuleuse de la Gestion du changement ont permis de satisfaire a laPhilosophic de la compagnie, notamment au niveau de la securite. En juillet 1999, PT Badak acomptabilise 50 millions d’heures travaillees saris accident avec arrbt de travail.

DISCLAIMER

Portions of this document may be illegiblein electronic imageproduced from thedocument.

products. Images are

best available original

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1- INTRODUCTION

1.1- General

The Badak LNG Plant located in Bontang, East Kalimantan, Indonesia, is operated byPT Badak Natural Gas Liquefaction, an Indonesian corporation owned 55 % by Pertamina, theIndonesian State Oil Company, 30 % by Gas Producers group (Vice, Total Indonesie, and Unocal),and 15 !40by JILCO representing the Japanese Buyers. The Badak LNG Plant has seven LNG Trainsin operation capable of producing 18.00 million tons of LNG annually. The eight Train is under start-up and is expected to produce LNG by the end of 1999. By having eight LNG Trains in operation atthe end of 1999, the total LNG production from the Badak LNG Plant will be about 21.64 million tonsannually.

For guiding company operation, an Operational Plant Philosophy was established since thebeginning of the LNG production in 1977. This Philosophy covers three aspects: Plant Reliability,Plant Efficiency and Plant Safety. By maintaining this philosophy it is expected that the commitment ofthe LNG shipments to the Japanese, Korean and Chinese buyers can be maintained indefinitely.Since the beginning of LNG shipments in 1977, there has been no cargoes delayed to the customers.This achievement continues to strengthen the Morale and spirit of the Badak LNG plant personnel tokeep and maintain the Operational Plant Philosophy.

1.2- Development of the Plant Philosophy

The Management of Badak LNG Plant realizes that the strength and viability of the companydepends on the healthy interaction be~een the Employees and the Management of the Company.This healthy interaction can be established and maintained by mutual understanding between theManagement and the Employees by establishing a Corporate Company Culture, which consists ofCompany Vision, a Mission Statement, Strategic Objectives, Tactical Objectives, and Company BasicPolicy (see figure 1).

Comt3anv VisionThe Badak LNG Plant is the largest LNG supplier in the world, one of the main sources of NationalIncome for Indonesia and the Agent of Community Development, all employees strive to make thisfacility the best LNG Plant in the world.

Com~anv MissionThe company mission is to supply LNG to the Buyers in a reliable manner.

Strategic ObjectivesThe Badak LNG Plant is to build and maintain the buyers trust, and to prepare for future markets,

Tactical ObjectivesThe Operational PhiIoso~hv is to operate the LNG Plant in a Safe, Reliable and Efficient manner, toenhance the Technology; ahd to es~ablish a Master Plan/Technology.

ComDanv Basic PolicyThe Basic Policy of the Company covers the following philosophies :Operational, Safety, Maintenance Philosophy, Environment Development.Expansion philosophies are also included in this Basic Policy.

Personnel Development,Design, Construction and

MANAGEMENTPOLICY

BASIC TACTICAL STRATEGICPOLICY OBJECTIVE OBJECTIVE MISSION VISION

MAN

MONEY

MATERIAL

MACHINERY

METHOD

ENVIRONMENT

L

PERS. DEV.PHIL.OPERATIONPHIL.SAR3Y PHIL.MAINTENAN-CE PHIL

ENVIRONMENTDEV. PHILOSO-PHYDESIGN PHIL.CONSTRUCT.PHIL.EXPANSIONPHIL.

GOAUOBJECTIVE I

SAFE, RELIABLEAND EFFICIENTOPERATION

TECHNOLOGYENHANCEMENT

MASTER PMTECHNOLOGYESTABLISHMENT

BUILD/TvUWJTAINBUYERS THRUST

PREPARE FORFUTURE MARKET

TO SUPPLYLNG TO THEBUYERS IN ARELIABLE WAY

WORLDLAGEST

.k’&PLIER

NATIONALINCOME

AGENT OFCOMMUNITYDEVELOP-MENT

4THE BESTLNG PIANTIN THEWORLD

Figurel : PT. Badak Corporate Culture

It is PT Badak’s policy that Process Safety Management is applied to achieve “SafetyExcellence”, a general guideline for all personnel to follow the policy is set forth in a dedicated andcomprehensive manual called “ PT Badak NGL. Process Safety Management Manual”. This manualwas officially issued in early 1996. PTB believes that the implementation of Process SafetyManagement will be an integral part of the business considerations i.e. production, cost, quality,benefits and employee relations. Based on PTB requirements for operating the plant, PTB selected12 elements for supporting PSM implementation in the Badak LNG Plant. This paper will share andexplore PTB experiences in applying the Management of Change element.

2- PTB PROCESS SAFETY MANAGEMENT

The elements of Process Safety Management have been known and applied in the activitiesof the Badak LNG Plant since the beginning of company business in 1977. Therefore, developing andimplementing Process Safety Management is actually an effort to develop a model and socializing it toall PTB personnel. The model is described in the PT Badak Process Safety Management Manual, asthe integration of three major components of the Badak LNG Plant i.e. Personnel, Technology andFacilities. PTB decided that 12 elements are adequate to meet the standard requirements forestablishing PTB’s PSM. The integration of these 12 elements to the three major components of theBadak LNG Plant is as follows (see figure 2):

Technology Personnel

,,

Process Safety information .- Process Hazard Analysis.- Operating Procedure.- Safe Work Practices.- Management Of Change.

- Training- Contractor- Accidenfflncident Investigation

Emergency Planning and Response- Audit

Management of Change

Facilities

- Mechanical Integrity.- Pre Start-up Safety Review.- Management Of Change.

PROCESSSAFETY

AUDITING OPERATING. ■ PROCEDURES

I MANAGEMENTOF CHANGE k

CONTRACTORm

TRAINING0

I MANAGEMENT I—

I OF CHANGE~ 9

PRE START-UPSAFETY REVIEWS

Figure2: Elements of PTB-PSM

SAFETY

mPROCESSHAZARD

MECHANICAL

lNTEGRll_f &

QUALITY

The effect of the Management of Change on each component described, expresses PTB’sconcern that the Management of change plays a key role and can not be separated from anyactivities related to the 12 elements of the PTB’s PSM.

2.1- Steps of PSM Implementation

Implementation of PSM in the PTB facilities is an integrated effort, accomplished through thefollowing steps:

2.1.1- Introduction Phase

A PSM expert (consultant) was invited to evaluate the application of the PSM elements inPTB in September 1992, followed by providing PSM training to the key personnel PTB. Thetraining was conducted in two ways i.e. sending PTB employees to attend overseas PSMtraining and conferences, and in-house training for the Supervisors up to the Manager level.Upon completion of this training, PSM was introduced to all employees through Safety Talksand Fire & Safety Refresher courses.

2.1.2- Commitment Phase

After the PSM concept was understood by our PTB employees, a commitment or policy as thefoundation of PSM program implementation was established,- Develop PSM Manual Procedure no. PSM-01.- Include PSM methodology in to the PTB Basic Safety Policy (see figure 3).

MAN

MONEY

MATERIAL

MACHINERY

METHOD

ENVIRONMENT

- SAFE1l’INSPECTOR

- SCALE OFPRIORITY

- QuALITYASSURANCESPECIFICATION

- FAIL SAFEDESIGN

- P.S.M.- CODES &

STANDARDS

- ENVIRONMENTIS DEVELOPEDTO SUPPORTTHE COMPANY

ZEROACCIDENT

LOWSEVERITYRATE

LOW FREQ.RATE

EQUIPMENTZEROFAILURE

BASIC TACTICAL STRATEGICTARGET

MISSION VISIONPnl Icv TARGET

h F~ ml

Figure 3: PTB Safety Culture

2.1.3- Preparation Phase

HEALTH,

SAFETY &ENVIRONMENTALPROTECTIONIS AN

INTEGRALPART OF TH E,,, ----- . . .

All the elements of PSM, which were being applied within PTB were reviewed to determinethe need for further program development. PTB decided to apply 12 elements of the PSMprogram, which were adopted from the combination of OSHA 29 CFR, 1910.119, API RP-750and the DuPont Program as PTB consultant during conducting Introduction Phase of PSM.The summary of PTB PSM Elements can be found in table 1:

OSHA 29 CFR 1910.119 API RP 750 PT. BADAK NGL. CO.

Employee Participation . . .-

Process Hazards Analysis Process Hazard Analysis Process Hazard Analysis

Process Safety Information Process Safety Information Process Safety Information

Operating Procedures Operating Procedures Operating Procedures

Training Training Training

Contractors -- Contractors

Pre Start-Up Safety Review Pre Start-Up Safety Review Pre Start-Up Safety Review

Assuring the Quality and

Mechanical IntegrityMechanical Integrity of Critical Mechanical ‘Equipment

Integrity andQuality Assurance

I Hot Work Permits I Safe Work Permits I Safe Work Permits I

Management of Change Management of Change Management of Change

Incident Investigation Investigation of Process Incident InvestigationRelated Incidents

Emergency Planning and Emergency Response and Emergency Planning andResponse Control Audit of Process Response

Hazards Management

Compliance Safety Audits Systems Audit

-. I General . .

Table 1: PTB – PSM Elements

2.1.4- Implementation Phase

Continual refinement of the PSM elements during this implementation phase must be done byPTB as long as the company philosophy is not changed. Consequently, all Departments withinPTB must monitor and ensure that their activities meet and are consistent with the elementsof PTB’s PSM.

2.1.5- Monitoring Phase

Regular audits of PTB’s PSM program will be conducted by a PSM expert, who is hired by theshare holders. The results of the audit are used to monitor and control PTB achievements inimplementing the PTB’s PSM. Any deviation and inconsistency related to the elements ofPTB’s PSM must be followed up with a corrective action to ensure that the PTB vision can beachieved.

By following the above phases, the implementation of the PTB’s PSM program can beachieved smoothly. PTB personnel’s understanding of the PTB philosophy, which has been consistentsince the start of the company, supports this smooth implementation. An individual commitment tofollow the PSM elements is the key success factor to ensure that PSM can be implemented.However, human nature can not guarantee that all personnel have the same commitment. Therefore,clear and straight guidelines are required. Among the 12 elements of the PTB’s PSM, the most diftlcultpart to be maintained and to be followed consistently is handling or implementing Management ofChange. As mentioned in the previous section that “Management of Change plays a key role and cannot be separated from any activities related to the 12 elements of the PTB-PSM”, this is becausehuman nature adds complexity to the change process.

J

2.2- Management of Change of PTB-PSM

The policy behind the Management of Change of PTB-PSM is “any changes without theproper consideration of their impact can render all previous reviews and safe guards null and void. Itis necessary that written procedures shall be made to manage and control technological, physicalequipment and personnel changes that may effect the process”. In order to meet the policy, a changeis defined as any addition, deletion, or alteration of process technology, personnel and facility outsideof established limits. The list of the categories of changes, which covers procedure, responsibility andfile location is developed to ensure that PTB personnel can follow any required action if necessary(see table 2).

OTHERCATEGORY RESPONSIBLE DEPARTMENT FORM OF PARTICIPATION FILE LOCATION

DEPARTMENT SUPPORTIPARTICIPATION

- Process Technology - Operation - Maintenance - Implementation of Management ofChanges

- Technology- TechrricaUProcess - Loss Prevention ChangelPmess Technology

Eng.- Operetkm

- Logistics Changes. - Main Control Room- Devalopmenff - Hazops Committee - Review and evaluate any Process - Library ICSTechnology Technology Changes

- Facilities I Equipment - Operation - Project - implementation of Management ofChanges

- Technology- Technicel/Facilities - Maintenance Change/Facilities Changes. - Operation

Eng. - Loss Prevention - Review and evaluated any - Main Control Rmm- Development/ - Logistics Faciliiea ChangesTechnology

- Library ICS- Hazops Committee

- Personnel Changes - All Departments - Personnel - Implementation of Management of - All DepartmentsChange/Personnel Changes. - Personnel

- Review and evaluate anyPersonnel Changes

- Documentation - Operation - Project - Updated mntinually a change - Technical- Technical - lCS/Main Libray occurs and revised when feasible. - Operation

- Accessible to operating personnel. - Main Control Room- ProjecUDdting/

Library- Main Libfary/lCS

Table 2: Management of Change Responsibility of File.

2.2.1- Process Technology Change

Process technology change is any addition, deletion or alteration of process technology suchas, production rates, materials, equipment, catalyst, operating condition. Some items whichinclude in the process technology change are as follows:

Process Chemicals- Feedstock.- Product Specifications.- By – Products / Waste Products.- Maximum Intended Inventory- Additives such as :

* Corrosion Inhibitors.* Antifoulants.* Antifoam Agents.* Stabilizers.* Dispersants.

Process Technolouv- Process Flow Scheme.- Capacity.- Operating Parameters Such As :

* Temperature.* Pressure.* Level.* Composition.

- Catalyst.- Catal,yst Condition Procedures.- Catalyst Environmental Control.- Operating Procedures.- Base or Advance Level Control Philosophy.- Control System Software.- Emergency Repressurizing Capacity.- PSV Design Basis.- Flare System Design Basis.

2.2.2- Facilities Change

Facilities changes is the addition, deletion, alteration of facilities (process equipment) such as: construction material, equipment specification, piping pre arrangement, alarm and interlocks.The following items are included in the facilities change :

- Equipment on Existing or New Facilities including :*” Tie-In.* Removal of Equipment or Instrumentation from a Working Process.* Demolition of Idle Equipment.* Demolition of a Process Unit.

- Mechanical Design such as :* Rotational or Reciprocating Speed.* Materials Handling.* Thickness.* Gauges.

- Materials of Construction.- Interlock System.- Instrumentation.- By pass Connections.- Preventive Maintenance List.- Hoses, Tubing, or Piping including :

* Hot Taps.* Pipe Clamps.* On - Stream Leak Repair.

- Blinds, Safety Control Devices, or Electrical Circuits including Jumper Wires.- Gasket Material of Type of Constructions.- Relief Valves including:

* Set Pressure.* Orifice Size.* Bellows Material.

- Pumps & Compressors including:* Seal Type.* Configuration.* Material.

. .

* Fire Protection Equipment.* Sewer System.

2.2.3- Personnel Changes

Personnel changes are defined as : new employees, job rotation, restructuring oforganization, etc.

There are three stages (evaluation/study, safety review and documentation) are combinedinto a single component called “Project Flow of Work as the detail working procedure and guidelinefor implementing the Management of Change, especially to handle process technology and facilitieschanges. This procedure is called the PT. Badak Policy Procedure Guide (PP Guide) which consistsof b.vo parts i.e Project Procedures and Hazops & Hazan.

2.3- Project Procedures PP Guide

The Reject Procedure PP Guide covers the company to encourage PT. Badak employeesand engineers to follow a standard administrative approach when issuing a Request for EngineeringService (RES) and processing the RES implementation of the required solution as the initial step ofthe Project Flow of Work.

This procedure applies to all Departments dealing with RES : Facilities Engineering,Inspection, Process Engineering Sections of Technical Department, Project Engineering Section ofProject Department, Safety Engineering & Environmental Control Section of Loss PreventionDepartment and Technology Section for preparing a conceptual study. Process Engineering,Facilities Engineering and Project Engineering Section for issuing simple detailed designs, FacilitiesEngineering and Project Engineering Section for issuing complete detailed designs.

Any employee may create a Request for Engineering Service (RES) when he sees a problemwhich may require technical investigation or needs engineering assistance. The content of the RESincludes a background of the problem and a request to find the solution. The reason for the concernand justification for writing a RES are:

* Plant safety,* Plant improvement,* Plant modification,* No*plant related improvement and* Company contribution to local government.

After writing the RES, the originator shall obtain the approval of his supervisor and hisdepartment manager. Then the RES is submitted to the custodian for the custodian manager’sapproval. The custodian manager then submits the plant related RES to the Technical Manager, or tothe Project Department Manager for a non-plant related RES/civil work job, or to the Loss PreventionManager for a safety related RES.

For Plant related projects, the Technical Manager will check whether the RES is acceptable.He will check with the originator if required. If it is not acceptable, it shall be rejected and sent back tothe custodian manager. If it is acceptable, the Technical Manager will discuss internally and selectthe proper department or section for the study. If the RES is related to Fire Safety and Environmentalaspects, it shall be sent to Loss Prevention Manager. After reviewing the RES the TechnicalManager or Loss Prevention Manager will modify the priority of the RES, if required, and distribute itto the appropriate section, based on the result of Technical or Loss Prevention Departmentdiscussion. If there are any additional questions on the RES, the assigned Section Head clarifiesthem to the Technical Manager or Loss Prevention Manager. Non plant related projects will bedirectly handled by Project Engineering Section.

The Section Head shall obtain a project number for the RES from the project administrativeassistant in the Project Engineering Section and assign an engineer within the section to handle the

.

RES. The Section Head will then distribute the RES to the appropriate parties listed on the lower partof the RES. To proceed the project task, the engineer must look at the priority of the RES and alwaysexecute the RES with the higher priority first, and follow the project flow chart (see figure 4) forreference. The assigned engineer is responsible for the project from concept through execution aswell as for keeping the project file for the project organized in a comprehensive and timely manner.

I RESFROM ORIGINATOR

1+

I RES APPROVED BYCUSTODl~N I

v 11

(

I ‘ESREV’WBY1~ REJECTE:=O=D ITECHNICAL MANAGEMENTI I -

A

DOES THE RES DEAL NO

RELATED PROBLEM

v

I RES TO TECHNICAL, LOSSPREVENTION, OR

TECHNOLOGY II I

+

SECTION HEAD ASSIGNS4

ENGINERING ASSISTANTENGINEER AND OBTAINS ASSIGNS PROJECT NUMBER

PROJECT NUMBER

I I*

Figure 4: PTB – RES and Project Flow Chart

NO ,’A.,FROM PREVIOUS PAGE

IF A SIMPLE PROJECT,EMERGENCY JOB OR -45$

2,000 PROCEED WITH A PERFORM STUDY AND

MEMO # 1-S FORM DEVELOP MEMO # 11

E=l

SUBMIT MEMO #11 WITH

L

REVISE hMEMO # 1I-A FOR AS RE(

CUSTODIAN APPROVAL

YES

YES ●

4YES

DOES THE PROJECT

I NO &r+YESCAN PROJECT BEDONE WITH # 1-S

FORM ?

NO

PREPARE COSTESTIMATE - SUBMIT

MEMO # 3 TO CUSTODIAN

I II

I

FCUSTODIAN TO PREPAREAFE

* *

Figure 4: PTB – RES and Project Flow Chart

.-

2A?’AFE (MEMO # 3) NO

APPROVED ?

IF PROJECT CAN BEIMPLEMENTED WITH YESA MEMO # 1-S FORM

HAZOPS

+$--i=+ YES +

DESIGN - CALCULATION - DRAWINGS

bEl := +MEMO # 1-S

COMPLETE ENGINEERING OR SIMPLE PROJECTPACKAGE

A I

+ + +

1

NO REVIEW WITH REVIEW WITH REVIEW WITHCUSTODIAN MAINTENANCE PROJECT.—

L

4

SUBMIT MEMO # 2

YESPROJECT EXECUTION MAT’L AVAILABILITY

+I

COMMISSIONING PROCEDURES I+

+INSPECTION TOVERIFY QUALITY

I FIELD WORK COMPLETE

PROJECT CRITIQUE

L

ISSUE JOB CLOSURE MEMO # 5, t

“’”A *II I

wI

cl” ~FURTHER STUDY NO PROBLEMOR REVIEW SOLVED

DISTRIBUTE MEMO # 5 FORPROJECT COMPLETION

Figure 4: PTB - RES and Project Flow Chart

2.4- Hazops and Hazan PP Guide

PT. Badak w“shes to review plant and community related projects including tie-in jobs, studiesand maintenance job preparations, or other changes including operating procedures that impact thesafety and reliability of the Badak LNG/LPG Plant and it’s Community, from a hazards and operability(Hazops) point of view in order to eliminate possible failures when the projects/studies andprocedures are implemented. The review includes Hazard Analysis (Hazan), which is used to quantifythe risk/consequences if the job execution fails. Both Hazops and Hazan can be conductedindependently or combined depending on the requirement. In the case of a combined review, Hazanwill follow Hazops based on Hazops recommendation. This is parallel with the mission of PT. Badakto maintain a high standard on the safety and reliability of the Badak LNG/LPG Plant and Community.

To ensure that the Hazops review is consistently implemented, a body (committee) in thePT. Badak organization is established, called Hazops Commitlee (HC). The review of Hazan is doneby the Loss Prevention Department.

2.4.1- Application

- All plant related projects including tie-in jobs or studies within PT. Badak which directly havea significant affect on the safety and reliability of the Badak LNG/LPG plant.

- All plant repairs related to maintenance job preparations within PT. Badak which have asignificant effect on the safety and reliability of the Badak LNG/LPG plant.

- Other changes including operating procedures that impact to process safety and reliability ofthe Badak LNG/LPG plant.

- Other PT. Badak facilities outside the plant which have been decided to be reviewed byManagement from a hazard, operability, and safe~ point of view.

- Outside projects/studies which will be implemented in the Badak LNG/LPG plant.

2.4.2- Hazops and Hazan Procedures

Hazo~s Procedure- Each project/study or a change is sent to the Hazops Committee Chairman (HCC) using

memo # 7 or a regular memo complete with a conceptual study/design intentkequentialprocedure, detailed drawings, and the result of the department Hazops review (see figure 5).

- After receipt of the package, HCC will decide, whether a meeting with the projectengineer/Hazops requestor and the Hazops Committee Members (HCM) is required. Callinga Hazops Committee meeting is the prerogative of management and HCC. Requests for ameeting by others can also be made to the chairman.

- For simple projects, studies and other changes, the Hazops review is done by the secretaryor the HCM and approved by HCC.

- For big or complicated projects, studies, and other changes within the existing facilities, afull Hazops Committee meeting is required. Depending on the requirements, Management orexpert (s) may be invited to attend this meeting for their advice. in the meeting the projectengineer or the Hazops requestor should explain the proposed project, study or otherchanges to the committee, and all committee members are free to raise questions related tothe safety and operability stand-point.For a big project which is not executed by PT. Badak but will be implemented in the plant, orfor the existing plant facilities which need to be reviewed from the hazard and operabilitypoint of view, a full time hazops study with a full team from various disciplines will berequired for a duration of more than 15 working days. In this case a special team calledTemporary Hazops Committee, is formed.

- During the meeting, the Hazops Committee identifies/assesses the potential hazards, andthey will recommend to the project engineers/Hazops requesters to accommodate theirfindings into their studies.

- In addition to HCC amroval for the HazoDs of the maintenance iob reparation or otherchanges including o’p”erating procedure, “ the approved Hazops document should beacknowledged by Operation Manager, Plant Technical Manager, Maintenance Manager andLoss Prevention Manager prior to the execution of the job.

- If the HCC considers that the request for Hazops for a projects, studies and maintenance jobpreparation is not appropriate, the HCC will return the memo # 7 or issue a response memoto the project engineer with the note “Hazops is not required.

- Starting from the receipt of the package, HC will complete their review and comments in areasonable time but not longer than 15 working days. For every big project, the duration ofHazops review will be defined prior to the start of the work.

Hazan Procedure- PHC or/and Division Manager will recommend to the Loss Prevention Department to conduct

a Hazan.- Loss Prevention Department proposes the action plans to cover an unexpected Hazard

condition.- The results of the Hazan should be attached to the Hazops result. But if Hazan is done

independently, the report can also be issued independently to the requestor.

ENGINEERING STANDARD MEMO # 7

TO : HAZOPS Committee Date : UUUl

FROM ddmmyy

SUBJECT : HAZOPS REVIEW REQUEST

JOB NUMBER :--6333

JOB TITLE :ENGINEER : GROUP HEAD :SUMMARY OF SCOPE :Attached to this memo please find the following :

m Design Intent (always include) m Spec. Sheets :

m Conceptual Design Drawings :n

Other :

Please review these attachments from a HAZOPS standpoint and indicate the Committee’s decision bycompleting the form below and returning it to us.

For HAZOPS Committee use only :

❑ Not Approved (see comments attached) ❑ Not Required

❑ Approved by :Sub-Committee onFull Committee Meeting held on

❑ Signed :(HAZOI-”3 C. .halrman) (Cnmmlttee M ember) Date

DISTRIBUTION : ( ) number of copies after approval

{1

1 Project Eng. Section Head1 Custodian :

{1

10) Hazops Committee Members1 Technical Library Files

1 Engineer : 1 Technical Project Files

H

Consistent application of these procedures as a part of Management of Change of the PTB’sPSM has contributed to the achievement of the current PTB Safety Record of more than 50 millionworking hours without a lost time accident.

3- CONCLUSIONS

1.

2.

3.

4.

5.

The corporate culture of PTB is to strengthen a healthy interaction and mutual understandingbetween management and the employees.

The 12 elements of Process Safety Management are adequate to meet the standardrequirements of PTB’s PSM program.

Individual commitment to follow the PSM elements is the key success factor to ensure thatPSM can be implemented.

Management of Change is considered the most important element of PSM in the support ofthe plant operations of the Badak LNG Plant.

Application of PTB’s PSM contributes to the achievement of the current PTB safety record ofover 50 million working hours without a lost time accident.

REFERENCES

1. PT. Badak NGL, Process Safety Management Manual.2. PT. Badak NGL, Policy/Procedure Guide 0304-01.3. PT. Badak NGL, Policy/Procedure Guide 0305-01.