SERVICE AGREEMENT FOR THE

PROVISION GENERAL OPERATION

SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 1 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

EXHIBIT III

HEALTH, SAFETY AND ENVIRONMENT

 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 2 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

HEALTH, SAFETY AND ENVIRONMENT (HSE)

TABLE OF CONTENTS

SECTION TITLE

1.0 LEADERSHIP AND HSE COMMITMENT.

2.0 POLICY AND STRATEGIC OBJECTIVES.

3.0 ORGANISATION, RESOURCES, COMPETENCY AND

DOCUMENTATION.

4.0 SUPPLIERS AND SUB CONTRACTOR HSE REQUIREMENTS.

5.0 HAZARD AND EFFECTS MANAGEMENT PROCESS.

6.0 PLANNING AND PROCEDURE.

7.0 IMPLEMENTATION AND MONITORING.

8.0 HSE AUDITS OR INSPECTION.

 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 3 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

EXHIBIT III - HEALTH, SAFETY & ENVIRONMENT (HSE) REQUIREMENTS

This EXHIBIT provides a quick reference to HSE requirements applicable to the SERVICE
AGREEMENT. The list is by no means definitive and PETRONAS Carigali Sdn Bhd’s HSE
Management System (“HSEMS”) Manual together with other associated policies, procedures, guidelines
and special instructions, including all applicable legislative requirements where PCIHBV operates, shall
also apply to this SERVICE AGREEMENT.

When this EXHIBIT refers to the CONTRACTOR and the CONTRACTOR personnel, this shall also be
taken to refer to SUBCONTRACTOR of the CONTRACTOR and the SUBCONTRACTOR’s personnel.
Accordingly, CONTRACTOR is responsible for ensuring that its and all SUBCONTRACTOR’s
personnel comply with these HSE requirements.

1.0 LEADERSHIP AND HSE COMMITMENT.

Responsibility for HSE commitment through leadership shall lie with CONTRACTOR and
SUBCONTRACTOR line management. CONTRACTOR’s top management shall ensure that
necessary resources are provided to develop, operate and maintain both PCIHBV’s and
CONTRACTOR’s HSEMS and as to fully comply with the HSE policy and strategic objectives.
CONTRACTOR’s commitment to HSE shall be evident at all levels within its organization and
ensure all positive attitudes to HSE issues.

2.0 POLICY AND STRATEGIC OBJECTIVES.

2.1 CONTRACTOR shall have in place, prior to the commencement of the SERVICE
AGREEMENT, a written Health, Safety and Environment policy with active employee
participation. This policy shall be of a standard comparable to PCIHBV’s policy and shall
be actively supported and endorsed by CONTRACTOR’s Management in the
organization who are responsible for ensuring that such policy is observed.
CONTRACTOR shall define and document which methods are applied for informing
personnel about its HSE policy, and which routines are employed to inform personnel of
any changes to this policy.

2.2 In addition, CONTRACTOR shall also have Health, Safety and Environment targets and
objectives, paying particular attention to accident prevention, written action plans clearly
indicating how HSE objectives and targets shall be achieved and a system to appraise risk
and problem areas to ensure that the overall HSE program is being carried out and
complied with.

3.0 ORGANISATION, RESOURCES, COMPETENCY AND DOCUMENTATION.

3.1 CONTRACTOR’s Management representative shall:-

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 4 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

a) Cooperate with PCIHBV’s personnel to ensure compliance with the HSEMS

manual.
b) Ensure that risks and hazards associated with the WORK are identified and assessed
and that the control and recovery measures are managed proactively.
c) Ensure that resources and HSE responsibilities are allocated and that effective
CONTRACTOR HSE plans are developed and implemented to manage identified
risks.
d) Comply with the HSE requirements stipulated in the SERVICE AGREEMENT and
the HSEMS requirements.
e) Develop plans and allocate resources to ensure that non compliance issues identified
in HSE audits, inspections and performance evaluations are understood and that
corrective action plans are put in place and tracked to completion.

3.2 Formulation of CONTRACTOR’s HSEMS.

CONTRACTOR shall ensure that all personnel from top to bottom have actual influence
on their working situation concerning health, safety and environment matters. Sufficient
time and resources shall be allowed for employees to be able to participate during
establishment, follow-up and development of the CONTRACTOR’s HSEMS.

3.3 Organisation and communication.

CONTRACTOR’s Management shall be involved in HSE activities in setting and

following up HSE objectives. CONTRACTOR organization shall facilitate effective HSE
management and communication with particular emphasis on HSE as an integrated
element in planning and implementing operations.

3.4 HSE Training Programme.

Prior to the commencement of the WORK, CONTRACTOR shall establish documented

system for selecting and training personnel in order to ensure that WORK is executed by
qualified individuals with adequate skills.

CONTRACTOR shall at its own expense ensure that its personnel have been given the
necessary HSE mandatory, compulsory or recommend trainings i.e. induction training,
basic HSE, CONTRACTOR HSE Policy, fire-fighting, sea-survival, and job related
training required by law. Certification of training shall be provided to PCIHBV prior to
the commencement of WORK.

CONTRACTOR shall ensure that first-line supervisors fully know the safety program and
are capable of administering and enforcing it. They shall know the safety aspects of all
work under their supervision and be able to pass this information on to others. They shall
be able to provide individual or group instruction for their work force if deficiencies in

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 5 of 12
SERVICE AGREEMENT NO.
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performance need to be improved. They are expected to conduct HSE safety meetings and
provide answers to any problems raised by their subordinates.

3.5 Regulatory HSE Requirements.

CONTRACTOR shall comply with all applicable health, safety and environment laws and
regulations, and any additional guidelines, operating standards and policies provided to
CONTRACTOR by PCIHBV.

CONTRACTOR shall be fully aware all of HSE statutory requirements in Iraq. Should
the BEST INDUSTRY PRACTICES requirements be higher standard than those existing
in Iraq, then CONTRACTOR must comply with the higher standard.

CONTRACTOR shall ensure all SUBCONTRACTOR personnel, suppliers and visitors

comply fully with such laws, regulations, guidelines, operating standards and policies.
CONTRACTOR further agrees that in the event any personnel, suppliers or visitors
violates any such laws, regulations, operating standards and policies, such violation shall
be corrected promptly, steps shall be taken to avoid recurrence, and any person or persons
responsible for the violation shall be removed from the WORK SITE upon PCIHBV’s
request.

3.6 HSE meetings.

3.6.1 The CONTRACTOR’s personnel shall, from time to time, be requested to attend
PCIHBV HSE meetings. Attendance at these meeting is mandatory and does not
relieve the CONTRACTOR of the obligation to hold its own HSE meetings as
outlined in CONTRACTOR's HSE policy.

3.6.2 The CONTRACTOR shall also ensure that its appointed Safety and Health
Officer (SHO) or the Shift Supervisor to hold a "Tool Box" safety meeting (i.e.,
a five to ten minute discussion, prior to commencement of each work shift).

These meetings shall be used to emphasize the need for adherence to safe work
practices, the correct use of personal protective equipment, good housekeeping
and of particular importance, any hazards (routine or unusual) that may be
encountered during the work shift (e.g., the toxicity of paints).

3.6.3 Copies of minutes of CONTRACTOR HSE meetings shall be submitted to

PCIHBV.

3.7 Medical Welfare

3.7.1 CONTRACTOR shall ensure that all its personnel and SUBCONTRACTOR's
personnel engaged in the WORK are medically fit and healthy. Any medical
disabilities, including such disabilities which CONTRACTOR may consider will

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 6 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

not adversely influence the Personnel's ability to perform his role in the WORK
shall be reported to PCIHBV prior to the start of the WORK. CONTRACTOR,
if requested by PCIHBV, shall provide medical certificates for
CONTRACTOR and SUBCONTRACTOR personnel.

3.7.2 CONTRACTOR shall, at no cost to PCIHBV, be responsible for the medical

welfare of its own and SUBCONTRACTOR's Personnel and shall take care of
arrangements for medical attendance, treatment or hospitalization if and when
necessary and will arrange suitable insurance coverage for such contingencies. In
cases of emergency, PCIHBV may make or provide for the necessary emergency
arrangements, the costs of which shall be reimbursed to PCIHBV by
CONTRACTOR.
CONTRACTOR shall subject their crane operators and other personnel as
may be required by PCIHBV to regular medical examination at their cost.
Records of such examination shall be made available to PCIHBV on request
(if applicable).

3.8 Drug and alcohol policy.

3.8.1 CONTRACTOR warrants that its personnel, agents and SUBCONTRACTOR

shall not perform any WORK for PCIHBV while under the influence of alcohol
or any controlled substance. CONTRACTOR, its personnel, agents, and
SUBCONTRACTOR shall not misuse legitimate drugs or possess, use, distribute,
or sell illicit or unprescribed controlled substances or drugs on PCIHBV business
or premises. CONTRACTOR shall adopt and enforce work rules and policies in
order to assure compliance with these obligations.

3.8.2 PCIHBV reserves the right to conduct alcohol and/or drug tests on
CONTRACTOR’s personnel, agents, or SUBCONTRACTOR while on premises
owned or controlled by PCIHBV, where reasonable cause exists.

3.8.3 PCIHBV also reserves the right to conduct searches for possession of drug and/or
alcohol on the person, vehicles, and other property of CONTRACTOR, its
Personnel, agents or SUBCONTRACTOR while on premises owned or
controlled by PCIHBV. Any person who refuses to cooperate with any such
search shall be removed from the premises and not permitted to return.

3.8.4 CONTRACTOR shall require its personnel, agents and SUBCONTRACTOR to

submit medical evaluation or alcohol or drug testing where cause exists to suspect
alcohol or drug use.

3.8.5 CONTRACTOR warrants that any personnel, agent or SUBCONTRACTOR who

either: (1) refuses to participate in medical evaluation or alcohol or drug tests, or
(2) tests positive for alcohol or a controlled substance, shall be removed from the
premises and not be permitted to perform any WORK for PCIHBV.

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 7 of 12
SERVICE AGREEMENT NO.
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3.8.6 In the event CONTRACTOR is unable to comply with these obligations,

PCIHBV shall have the option to terminate this SERVICE AGREEMENT
forthwith. CONTRACTOR shall be entitled to payment for WORK performed to
the date of such termination, but no payment shall be made for lost profit, unused
materials, or bonus, if applicable.

4.0 SUPPLIERS AND SUBCONTRACTOR HSE REQUIREMENTS.

CONTRACTOR must ensure that its suppliers and SUBCONTRACTORS are skilled and
qualified to perform the WORK and properly managed in the performance of the WORK.

CONTRACTOR must have in place appropriate formal systems, procedures and safe practices for
the management and control of the suppliers and SUBCONTRACTORS not limited to the
following:

 Suppliers and SUBCONTRACTOR HSE prequalification and qualification will be based on

demonstrated capability, HSE performance and HSE Management System suitability and
compliance.
 Risk and hazards associated with the suppliers and SUBCONTRACTOR work are identified
and controlled to As Low As Reasonably Practicable (ALARP) levels and that
SUBCONTRACTOR employ the required safe systems of work.
 SUBCONTRACTOR HSE Management System to be integrated into CONTRACTOR HSE
Management System.
 Suppliers and SUBCONTRACTOR work is supervised and monitored by CONTRACTOR to
ensure that safe practices are employed and WORK is conducted in strict compliance with
relevant CONTRACTOR HSE requirements.

5.0 HAZARD AND EFFECTS MANAGEMENT PROCESS.

5.1 Hazard and effects assessment.

Prior to the commencement of the WORK, the CONTRACTOR shall demonstrate to the
satisfaction of PCIHBV that the CONTRACTOR has performed a detailed HSE hazard
and risk assessment of the WORK to be undertaken.

CONTRACTOR responsibilities on hazard and effects management shall include but not
limited to the following:

 Shall ensure the assessment evaluates all work site specific risks and risks
associated with the nature of work to be conducted under the SERVICE
AGREEMENT.
 Shall maintain a detailed hazard register that is relevant to the contracted work
scope. The hazard register shall identify hazards, assess the preventive controls

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 8 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

and recovery measures, HSE Management system interfaces and any additional
controls in place to manage residual risk to ALARP levels.
 Shall monitor HSE risks and update risk assessment and hazard registers as
necessary during the term of the SERVICE AGREEMENT.
 Shall be responsible and accountable for ensuring effective procedures and safe
system of work are in place in respect of meeting all statutory requirements and
the HSEMS requirements under the SERVICE AGREEMENT.
 May be required to attend or conduct additional risk assessment in relation to
planned work activities in which they will be involved under the SERVICE
AGREEMENT.

5.2 Job Hazard Analysis (JHA)

Effective application of JHA process at all PCIHBV’s operational locations is a critical

daily safety management tool. CONTRACTOR must conduct quality JHAs for all tasks
that are none-routine or where there is a risk to personnel, damage to property or the
environment.

5.3 Permit-to-Work System (PTW)

All WORK carried out by CONTRACTOR personnel shall be in accordance with

PETRONAS’s Permit-To-Work System Manual Rev. 1 July 2007.
The CONTRACTOR is obligated to request a copy of this publication and ensure that its
personnel have a thorough knowledge of its content.

5.4 Chemicals

CONTRACTOR shall have a system which ensures and documents that all chemicals due
to be used during the WORK are evaluated for their health risk during transport, use and
disposal, and that chemicals with the smallest health risk are given preference wherever
this is technically and operationally feasible.

5.5 Personal Protective Equipment (PPE)

5.5.1 CONTRACTOR shall at its own expense be responsible for providing its
Personnel with PCIHBV’s approved Personal Protective Equipment suitable for
the task being carried out.

5.5.2 CONTRACTOR shall ensure that its personnel and/or other personnel assigned
by the CONTRACTOR for the performance of the WORK wear the following
minimum Personal Protective Equipment when engaged in WORK or when in an
on-site area where such equipment is required, such as and not limited to the
following:

a) Coveralls;

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 9 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

b) Safety footwear with steel toe cap and steel mid sole;
c) Safety helmet; and
d) Safety glasses.

5.5.3 Other Personal Protective Equipment that is required, depending on the nature of
the job to be carried out and the likely hazards encountered in certain work
environments, such as and not limited to the following:

a) Ear muff/plugs;
b) Gloves;
c) Face shield/visor;
d) Respiratory protection; and
e) Fall protection.

5.5.4 Chemicals, e.g. paints and thinners are extremely toxic and CONTRACTOR shall
ensure that the standard Personal Protective Equipment such as gloves, apron and
respiratory protection equipment issued to its Personnel complies with the
recommendations contained in the manufacturer's, "Material Safety Data Sheet
(MSDS)/Chemical Safety Data Sheet (CSDS)" for the product.

NOTE: In some circumstances this may require the wearing of self-contained or

air-line breathing apparatus and the CONTRACTOR must ensure that these
Personnel are thoroughly competent and familiar with all types of respiratory
protection.

5.5.5 CONTRACTOR shall contact PCIHBV’s Health, Safety & Environment

Department for a list of PCIHBV’s Approved Personal Protective Equipment.

6.0 PLANNING AND PROCEDURE

6.1 HSE working practices.

CONTRACTOR shall ensure that documented HSE procedures are established for all
potential hazardous operations. CONTRACTOR shall ensure HSE procedures are updated
periodically and disseminated to the employees of the CONTRACTOR and the
SUBCONTRACTOR. Working practices and procedures shall be consistent with
CONTRACTOR’s HSE policy and HSE Management System.

6.2 Management of Change (MOC)

CONTRACTOR shall ensure an effective management of change system, including

developing and implementing associated procedure or guideline to manage and control
changes whilst performing the WORK.

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 10 of 12
SERVICE AGREEMENT NO.
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6.3 Incident Notification, Investigation and Reporting.

6.3.1 Accident is defined as any unintentional or unplanned event or condition which

has or could have resulted in injury to a person and/or loss or damage to
equipment, plant or property.

6.3.2 It is PCIHBV’s requirement that all accidents, no matter how trivial, must be
reported to the PCIHBV’s Representative. CONTRACTOR shall ensure that its
Personnel are aware of this mandatory requirement.

6.3.3 CONTRACTOR shall be responsible to investigate, in a professional manner, all

accidents that occur during the performance of the WORK. The investigation
report shall be made available to PCIHBV when requested. CONTRACTOR
shall also be responsible for assisting PCIHBV in accident investigations, if so
required.

6.3.4 CONTRACTOR shall have, where applicable and prior to commencement of

SERVICE AGREEMENT, Incident Notification, Investigation and Reporting
procedure and shall maintain HSE statistics which shall be compatible with
PCIHBV’s Incident Notification, Investigation and Accident Reporting
procedure. Otherwise, CONTRACTOR shall adopt the current PCIHBV’s
Incident Notification, Investigation and Reporting procedure.

6.4 Safety Drill

6.4.1 The CONTRACTOR shall ensure that its personnel are thoroughly familiar with
all site alarms, their muster station and, where applicable, the locations of their
heliport, airstrip, lifeboat, etc.

6.4.2 CONTRACTOR personnel should rapidly acquire a thorough knowledge of site

escape routes including alternative routes if the primary route happens to be
blocked.

6.4.3 The personnel, servants or agents of the CONTRACTOR when working offshore
or onshore shall participate in appropriate emergency drills and emergency
response training (e.g., fire, muster and boat drills, instructions in survival, life
saving, and fire fighting).

6.5 Housekeeping

6.5.1 CONTRACTOR shall ensure that its personnel keep and maintain good
housekeeping practices at the Work Site to eliminate all hazards and control
hazardous conditions in order to avoid injury to CONTRACTOR Personnel
throughout the duration of the WORK. CONTRACTOR shall know what the

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 11 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

hazards are and how to guard against the hazards, the kind of which shall include
unsafe acts and unsafe conditions.

6.5.2 In order to reduce the risk of fire, waste materials and garbage shall not be allowed
to accumulate and as a minimum, must be disposed of on a daily basis and in an
appropriate manner.

6.5.3 In order to minimise site hazards (such as trips, slips, falls, etc.), access ways must
be kept clear of electrical cables, wires, metal pipes, scaffold boards and other
materials and equipment.

6.5.4 All gaps such as that caused by the removal of gratings must be adequately roped
off and the grating stored so that it does not become an "obstruction and trip
hazard".

7.0 IMPLEMENTATION AND MONITORING.

7.1 Supervision and monitoring of work activities.

CONTRACTOR shall supervise and monitor its work activities to ensure that all relevant
HSE requirements are fully complied with. The results of this supervision and monitoring
shall be passed on without undue delay to PCIHBV’s management and personnel.
CONTRACTOR shall verify that employees are familiar with work instructions and
procedures, and that they are capable of acting according to the instructions provided.
Frequent management inspections shall be performed to verify compliance with prevailing
standards.

7.2 HSE undesirable events/hazardous conditions.

CONTRACTOR shall comply with all official requirements for notifying and reporting
undesired events/hazardous conditions relating to safety, occupational health and the
environment. Routines for ensuring such compliance shall be documented.

All undesirable events/hazardous conditions experienced by CONTRACTOR shall be

reported to PCIHBV without undue delay, whether the event occurred at PCIHBV’s and/or
CONTRACTOR’s premises, at the site or at other locations. The report shall include the
date of the event, its causes and any preventive follow-up measures taken.

7.3 Incident reporting

High loss potential events suffered by CONTRACTOR shall be reported to the PCIHBV
management representative within 24 hours of the incident. Information on possible
underlying causes shall be provided. CONTRACTOR shall notify Company of any personal
injury suffered by CONTRACTOR’s Personnel. Direct and underlying causes shall be
specified.

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 SERVICE AGREEMENT FOR THE
PROVISION GENERAL OPERATION
SERVICES FOR PETRONAS CARIGALI Section :
IRAQ HOLDING B.V. (PCIHBV) GARRAF Exhibit III – Health, Safety and
OPERATIONS Environment
Page : Page 12 of 12
SERVICE AGREEMENT NO.
PCIHBV/2018/PRD/2225

7.4 Incident follow-up system.

CONTRACTOR shall have a manual or computerized system in place to record and follow-
up corrective and preventive actions resulting from undesired events. The system shall
facilitate systematic transfer of experience.

7.5 HSE performance indicators.

7.5.1 Unless otherwise agreed, a monthly HSE report shall be submitted as part of
CONTRACTOR's overall monthly report. This report shall cover the status of
identified HSE hazards and significant HSE aspects. The status of all activities in
the HSE programme shall also be detailed in full. Preventive measures which
have been initiated or implemented shall be briefly described.

7.5.2 CONTRACTOR shall have a documented system in place to monitor HSE

performance against targets for defined key areas and activities, with feedback to
employees.

8.0 HSE AUDITS or INSPECTION

8.1 CONTRACTOR shall allow PCIHBV’s REPRESENTATIVE(s) and/or its designated third
party personnel access at any time to marine vessels, plant, equipment, personnel, and
records; when requested, to enable PCIHBV to inspect or audit any aspect of
CONTRACTOR's operations relevant to safety, health, and environment.

8.2 Prior to commencement of the WORK, CONTRACTOR is required to inspect the Work Site
and equipment involved to ensure that the WORK will be performed under safe conditions.
In addition, CONTRACTOR shall maintain and perform ongoing safety inspections
throughout the performance of the WORK.

END OF EXHIBIT III

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