IADC HSE Amsterdam 2008 Live Auditing System
- 1. Noble Corporation HSEQ Management Coordination and “chaos theory”. Implementation of “live” audit processes Franco dos Santos Head of HSEQ Internal Auditing
- 2. Forward Looking Statement This presentation contains “forward-looking statements” about our business, financial performance and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for the future are forward-looking statements. We cannot assure you that the outcomes of these forward-looking statements will be realized. Various factors could cause actual results to differ materially. We discuss these factors, including risks and uncertainties, from time to time in our SEC filings. The Company disclaims any duty to update the information presented here. The material presented is copyrighted by the Company and cannot be printed, recorded or rebroadcast without our express written consent. We have attached a reconciliation to GAAP of any non-GAAP measures appearing in this presentation. Additional information about Noble Corporation is available on our Web site at www.noblecorp.com. 2
- 3. Small changes today… Big effects tomorrow! Does the flap of a Butterfly’s wings in Brazil… Set off a Tornado in Texas?... 3
- 4. Small changes today… Big effects tomorrow! According to Chaos Theory two basic premises occur in most systems: 3. They are sensitive dependent on initial conditions. 5. Just a small change in initial conditions can drastically change the long term behaviour. 4
- 5. Small changes today… Big effects tomorrow! Can the attention given to a small electrical plug today… Influence the global HSEQ performance of a whole Drilling Rig tomorrow ? 5
- 6. Chaos Theory and HSEQ Is HSEQ Performance just a matter of Attitude or is it influenced by initial conditions? Can we assume that small inadequate conditions grow exponentionally in number until they become chaotic, if not tamed? 6
- 7. Chaos Theory and HSEQ Systems (Rigs and management) should allow for a maximum of good conditions to be present in order for the behavioural part to start in the most favourable way. There must be a constant attention on the control of inadequate conditions in order to tame their growth and keep them under the establishment of chaotic stages. 7
- 8. Chaos Theory and HSEQ A Drilling Rig and Drilling operations are dynamic systems and thus operate partly in order and partly in disorder. Order provides structure and stability. Disorder creates opportunity. 8
- 9. The Balancing Act of Internal Auditing Both ORDER and DISORDER are needed. Ensuring an adequately balance the two should be one driver of Internal Auditing of Management Systems. DISORDER ORDER 9
- 10. Turning Point Traditional Audit Systems only accounted for the ORDERLY part. They assumed a linear and stable work environment that should follow a prescribed Management System and was only looking at behaviour correspondence with procedures. This would theoretically allow for audits to be planned in a long term vision, generally one year in advance. They were focused on COMPLIANCE. 10
- 11. Internal Auditing In practice they would work on the surface but fail on the detail: Failure in correspondence of plan and reality. Failure in focus. fail to adapt to any new demands. Will not capture the “disorder” creativity 11
- 12. The change Within Noble Drilling we changed: Out with rigid yearly compliance Audit Plans In with a flexible “Live” Audit Plan focused on improvement of HSEQ performance. 12
- 13. Old type of Audit Plan 13
- 14. Noble “Live” Internal Auditing System HSEQ Proposed focus Department areas / items Master Audit Plan 14
- 15. Noble “Live” Internal Auditing System Rig / Department HSEQ Proposed focus Audit Plan Department areas / items Audit Report Master Audit Plan Audit Follow-up Statistical data on Audits Register of Audits 15
- 16. Noble “Live” Internal Auditing System Yearly Report on Auditing Activities Rig / Department HSEQ Proposed focus Audit Plan Department areas / items Audit Report Master Audit Plan Audit Follow-up 3X Audit Outcomes and Close-out Statistical data on Audits Register of Audits 16
- 17. The Master Audit Plan - Health Number of Audits done on item/area Proposed items/areas Active items/areas Closed items/areas 17
- 18. The Master Audit Plan - Safety 18
- 19. The Master Audit Plan - Environment 19
- 20. Rig Audit Plan ISO 19011:2002 Compliant 20
- 21. The Audit Report – (example) 21
- 22. The Audit Report – (example) 22
- 23. The Audit Follow-up – (example) 23
- 24. The Register 24
- 25. X-referencing with ISO 9001 ISO 9001 Internal audit Custumer satisfaction Preservation of product Control of production and service provision Design and development planning Review of the requirements related to the product Determination of requirements related to the product Control of documents 0 10 20 30 40 50 60 70 25
- 26. X-referencing with ISO 14001 ISO 14001 Environmental management system audit Emergency preparedness and response Operational control Document control Environmental aspects 0 5 10 15 20 25 30 35 26
- 27. X-referencing with OHSAS 18001 OHSAS 18001 Audit Accidents, incidents, non- conformance and corrective and preventive action Emergency preparedness and response Operational control Document and data control Training, aw areness and competence Planning for hazard identification, risk assessment and risk control 0 10 20 30 40 50 60 27
- 28. Statistical Data on Audits Control of Management System 20.06.08 Control of Offshore HSEQ Management - 20.06.08 HSEQ Audits HSEQ Inspections HSEQ Rig Visits 16 Y 2008 NBW Y 2007 10 Y 2006 7 7 7 7 Y 2008 6 NAW Y 2007 4 2 2 Y 2006 1 1 0 0 0 0 0 0 Y 2008 NGS Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 Y 2007 HSEQ Engineer Audits Misc Audits HSEQ Engineer HSEQ Engineer Rig STS Management HSEQ Remotelly Inspections / Visits Visits performed audits Investigations Y 2006 Y 2008 NJR HSEQ Personnel Offshore Visits 20.06.08 Y 2007 Y 2006 Total Offshore visits Y 2006 Total Offshore visits Y 2007 Total Offshore visits Y 2008 Y 2008 NLB Johan Korver Y 2007 Y 2006 Karel Houtman Y 2008 Cees Verhagen NRH Y 2007 Edwin Bandt Y 2006 Y 2008 Ian Dixon NPvE Y 2007 Piet Krap Y 2006 Y 2008 Ole Seberg NtTvL Y 2007 Franco dos Santos Y 2006 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 0 1 2 3 4 5 6 28
- 29. Audit Outcomes and close-out – (example) 29
- 30. The Yearly Report – (2007) 30
- 31. The Yearly Report – (2007) 31
- 32. Small Changes Today Big Effects Tomorrow! Yearly Report on Auditing Activities Rig / Department HSEQ Proposed focus Audit Plan Department areas / items Audit Report Master Audit Plan Audit Follow-up 3X Audit Outcomes and Close-out Statistical data on Audits Register of Audits 32
- 33. OUR DIRECTION IS CLEAR 33