Daqing Petroleum Iraq Branch

RISK ASSESSMENT PROCEDURE

Document Revision Log

Document No.: Revision No: Issue Date: Review Date:

DOC 1.0 November, 2011

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TABLE OF CONTENTS

1. INTRODUCTION

2. PURPOSE

2.1 HUMAN HARM

2.2 LEGAL EFFECTS

2.3 ECONOMICS EFFECTS

3. SCOPE

4. DEFINITION

4.1 INCIDENT PROBABILITY

4.2 POTENTIAL CONSEQUENCES

4.3 DEGREE OF RISK

4.4 RESIDUAL RISK ASSESSMENT

5. RESPONSIBILITY

6. PROCEDURE

6.1 IDENTIFICATION OF HAZARDS

6.2 DECIDE WHO MIGHT BE HARMED AND HOW

6.3 EVALUATE THE RISK ARISING FROM THE HAZARDSAND DECIDE IF

EXISTING PRECAUTIONS ARE ADEQUATE OR MORE SHOULD BE
DONE

6.4 RECORD FINDINGS

6.5 REVIEW

6.6 LIKELIHOOD OF OCCURANCE

6.7 HAZARDS SEVERITY

6.8 RISK MATRIX

6.9 CACULATING DEGREE OF RISK

7. CATALOG OF OPERATIONS

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8. CATALOG OF HAZARDS

8.1 MECHANICAL HAZARDS

8.2 ELECRICAL HAZARDS

8.3 CHEMICAL HAZARDS

8.4 FIRE AND EXPLOSION HAZARDS

8.5 THERMAL HAZARDS

8.6 HAZARDS BY SPECIAL PHYSICAL CIRCUMTANCES

8.7 HAZARDS BY LACK OF THE WORK ENVIRONMENT

8.8 OTHER HAZARDS

8.9 HAZARDS BY PSYCHOLOGICAL LOADING

9. FORM

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1. INTRODUCTION
Any employer (Company) has to ensure overall safety of its workforce at each workplace. This
is done by carrying out a risk assessment in general for all identified jobs at any site. This then
enables the company to effectively take the necessary precautions for hazard protection of
personnel. From this evaluation process, Daqing petroleum laid down all required procedures
and work instructions for safe operations in its documentation. However, where the elimination
of risk cannot be realized, the risk is to be reduced to an acceptable minimum. Control
measures are being stipulated in the written instructions and actively controlled e.g. by the
Management of Change procedures. There are countless hazards in the workplace. Managing
occupational health and safety involves identifying, eliminating or controlling these hazards. By
analyzing the history of Daqing petroleum accidents led to the results of this risk assessment.
Elements, which were taken into consideration, are such as:
• Degree of injury (effect),
• Identification and Frequency of activities and sub-activities on sites (probability),
• Identification of potential hazards,
• Locations where activities take place (site mapping).
For safe working procedures to control environmental hazards and damages to property, please
refer to the company’s BMS Documentation, which is in line with standard oilfield drilling
practice.

2. PURPOSE
Risk Assessment is a careful examination of what, in our work, could cause harm to people, so
that we can weigh up whether we have taken enough precautions or should do more to prevent
harm”. Thus, the overall aim of a risk assessment is to ensure that no one suffers harm as a
result of workplace activities.

2.1 HUMAN HARM

The strongest reason for risk assessment is to prevent harm to people as a result of drilling
operation activities.
Many drilling activities are inherently dangerous, or may be so given the right (or wrong!)
combination of circumstances. However, no one expects to risk life and limb, or their physical
or psychological health, as a consequence of going to work. There is, therefore, Daqing
Management consider a moral duty to take appropriate steps to ensure the safety and health of
their employees, and others. Risk assessment is the main means by which this can be
effectively planned.

2.2 LEGAL EFFECTS

Daqing Petroleum accepts some legal obligations in respect of health and safety which, to
prevent severe penalties. These obligations include the local laws of the government and also
some rules described by the client. Daqing Petroleum undertakes a sufficient and suitable
assessment to establish exactly what health and safety measures have to be adopted in order
to comply with the relevant regulations which apply at the particular workplace and operation.

2.3 ECONIMIC EFFECTS

Daqing Petroleum wants to minimize the often substantial financial costs of accidents at the
workplace. These costs include not only the direct costs of damage to machinery and
equipment, and compensation payments to those injured, but also a big range of indirect costs,
such as loss of output, loss of orders, increased insurance premiums, etc.

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3. SCOPE
This procedure applies to all routine and non-routine activities, activities of all personnel having
access to the workplace (including subcontractors and visitors) and facilities at the workplace.

4. DEFINITIONS
4.1 Incident Probability:
Likelihood that the exposure will result in loss. It has an integral value from 1 to 5.
4.2 Potential Consequences:
Severity of the resulting loss is rated in this category. It has an integral value from 1 to 5.
4.3 Degree of Risk:
The degree of risk is determined by multiplying the values of the three factors together as per
the formula below: -
Degree of Risk= Incident Probability x Consequences
4.4 Residual Risk Assessment:
This assessment expresses the residual degree of risk left after adopting the control measures
viz. Elimination. Substitution Engineering controls, Administrative controls and/or use of
Personal Protective Equipments (PPEs) using the available resources.

5. RESPONSIBILITY
HSSE Department has the overall responsibility for the implementation of this procedure.
HSE Officer is responsible for coordinating with Facility to identify the potential hazards in
Daqing premises.
The Facility in charge /HSE Representative each identified hazard using their experience,
related data/ information, training, knowledge of the work site and existing protective measures
to assign a realistic point value for each of risk factors.

6. PROCEDURE
6.1 IDENTIFICATION OF HAZARDS
This is the process of identifying all the hazards that exist in the workplace. We look for all the
possible hazards, but it is the significant ones which are important.
The staffs actually performing the tasks are likely to be the best people to assess them,
although their familiarity with the job may make them less objective about potential hazards.
Every Daqing employee is encouraged to identify the Health, Safety & Environment hazards.
Different communication media can be used in order to identify the aspects, e.g. STOP Cards,
JSA and Risk assessment.
STOP Cards are available to every employee in order to have maximum participation.
When facility incharge or HSE department receives the hazard information through above
mentioned media, they decide about the significant nature of the hazard/aspect.
If the hazard/aspect is considered significant, then facility incharge includes the aspect in the
current related form of the facility.

6.2 DECIDE WHO MIGHT BE HARMED AND HOW

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This is the process of determining who may be at risk from the hazards – the groups of staff and
others likely to be affected in the case of an incident involving the hazard.
It is important to consider the wider implications of hazards, not just as they may affect those
working in the immediate environment. We need to be aware of other staff groups, such as
maintenance personnel and cleaners, as well as visitors and the public. Special attention
should be paid to inexperienced staff, lone workers or temporary staff.
6.3 EVALUATE THE RISK ARISING FROM THE HAZARDSAND DECIDE
IF EXISTING PRECAUTIONS ARE ADEQUATE OR MORE SHOULD BE
DONE
This is the process of assessing the significance of the risks and what needs to be done to
protect people.
The key question is: have precautions been taken to protect the identified groups against the
risk from the identified hazards? For example: are there proper working systems and
procedures in place; are control measures such as guards on machines working properly; is
there adequate information, instruction or training in respect of the risk?
Where any existing measures do not appear to be adequate, actions needs to be taken.
6.4 RECORD FINDINGS
Daqing Petroleum records and keeps all the significant findings of the assessment. There
should, then, be a record of all hazards, the risks that they present and what precautions are in
place to protect people from harm. This written record is an important reference for future use –
as the basis for reviewing risks and also an evidence to protect the claims.

6.5 REVIEW
The way we operate is constantly changing – as a result of new or modifications of existing
equipment, new locations, changing weather, wells alterations, new procedures, etc. These all
bring their own hazards, but new hazards can also arise in existing methods of work – the effect
of stress is a recent example.
It is important, then, to continue to be vigilant about hazards and risks and to review workplace
conditions regularly. How often is “regularly” will depend on the extent of the risks and the
degree of change?
HSE Department sends the related document to the in charge of all those facilities, which may
have similar potential hazards regarding the health, safety & Environment
The facility incharge uses all the pertinent information like Drilling/any operations diagram, Site
layout, equipments/tools list, advice from HSE etc. for the identification of Health, Safety,
security & Environment Hazards.
Keeping in view the severity of the hazard/aspects, he assigns appropriate rating to each of
HAZARD/ASPECTS FREQUENCY, INCIDENT PROBABILITY and CONSEQUENCES. Rating
scale for hazards is as follows:

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6.6 LIKELIHOOD OF OCCURANCE

Likelihood Description
Almost Certain A common event that is likely to occur one or more times a year
e.g. typical single instrument failure, hose leak, flange or fitting
leak.
Likely Less than 100% certainly that an event will occur, but an
additional factor will may cause the event e.g. small bore piping
failure or hose rupture, transducer failure.
Possible Could happen if additional factors are present but is unlikely to
occur otherwise e.g. human error on routine task, relief valve
critical failure
Unlikely A rare combination of adverse would be require for an incident to
result e.g. failure of safeguard device on demand, concurrent
human error and device failure
Rare An incident could occur only in the most abnormal circumstances
e.g. multiple failure of safeguard or human error, major
spontaneous failures never seen before

6.7 HAZARD SEVERITY

Severity Description
Low Result in negligible injury with no absence from work or
negligible loss of function or production with no damage to
equipment or the environment
Minor Minor injury requiring first aid treatment, damage to equipment
requiring remedial repair, minor loss of production or impact to
environment.
Moderate Injury leading to Loss Time Incident (LTI), localized damage to
equipment requiring extensive repair, significant loss of function
or production (up to 1 week) or moderate pollution incurring
some restitution costs.
Major Involving a single death or sever injury. Damage to equipment
resulting in production shut down and significant production loss
(> 6 months). Sever pollution with short term localized
implications incurring significant restitution costs.
Critical Multiple death, major plant or equipment damage (> 6 months
production loss), major pollution with long term implication and
very high restitution costs.

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6.8 RISK MATRIX (5X5)

Likelihood or Consequence severity

Frequency Low Minor Moderate Major Critical
Moderate High Extreme Extreme Extreme
5 Almost Certain 5 10 15 20 25
Low High High Extreme Extreme
4 Likely
4 8 12 16 20
Low Moderate High High Extreme
3 Possible 3 6 9 12 15
Low Low Moderate High High
2 Unlikely
2 4 6 8 10
Low Low Low Low Moderate
1 Rare
1 2 3 4 5
1 2 3 4 5

6.9 CALCULATING DEGREE OF RISK

Degree of risk is calculated from this rating as follows:

Rating Scale Degree of Risk, Risk Classification/ Action

Extreme
15 to 25 Stop activity and make immediate improvements eliminate the risk or
implement appropriate controls to lower the degree of risk.
High
08 to 12 Look to improve within specified timescale
Implement appropriate controls to lower or minimize the degree of risk.
05 to 06 Moderate
Look to improve at next review.

01 to 04 Low
No further action, but ensure controls are maintained.

7 CATALOGUE OF OPARATIONS
The 22 basic activities of the drilling and work-over rigs are identified and divided as follows:
1. Transport and Storage of Tubular
2. Drilling, Reaming, Milling
3. Handling of Drilling Equipment
4. Handling of Drill string and Casing running

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5. Working with Tongs, Slips and Elevators

6. Working with Traveling Block and Drilling Line
7. Use of Lifting Equipment
8. Working At Height
9. Working in Tanks / Confined Spaces
10. Handling Chemicals
11. Working at the Mud pumps
12. Working at High Pressure Lines and Valves
13. Working in the Substructure
14. Working in Cellars
15. Rig move and Transport
16. Working with Forklift and Crane
17. Fishing Operations
18. Working with Cores and Samples
19. Logging Operations
20. Cementation, Stimulation, Tests
21. Movements on location
22. Working in Ex – Zones

In conjunction with these activities several sub-activities are identified. Also, the areas on
location where these activities can occur are listed.

8 CATALOGUE OF HAZARADS
8.4 MECHANICAL HAZARDS
• Unprotected moving machinery parts (e.g. rotary table)
• Moving transport means (e.g. Forklift, Stabbing Board)
• Uncontrolled moving parts (e.g. rolling/falling parts)
• Fall, slip, stumble, and twist
• Falling from heights
8.5 ELECTRICAL HAZARDS
• Shock hazards (e.g. touch live cables)
• Come close to live parts above 1 kV (e.g. in power container)
• Welding arc (e.g. when welding)
• Static electricity
8.6 CHEMICAL HAZARDS
• Dust (e.g. mud chemicals)
• Smoke (e.g. at the engines)
• Vaporous and gaseous hazardous substances (e.g. H2S)
• Other hazardous substances (e.g. caustic soda)
8.7 FIRE AND EXPLOSION HAZARDS

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• Hazard of fire by solids, fluids and gases (e.g. diesel)

• Explosive atmosphere by gases, vapor, dust (e.g. natural gas)
• Explosive substances (e.g. explosives)
8.8 THERMAL HAZARDS
• Contact with hot material (e.g. mud)
• Contact with cold material (e.g. Nitrogen)
• Cold/warm weather
8.9 HAZARDS BY PHYSICAL CIRCUMTANCES
• Noise (e.g. in the vicinity of Drawworks or the engines)
• Radiation (e.g. radioactive radiation)
• Electromagnetic fields (e.g. flashes in thunder storm)
• Pressure (e.g. during testing HP-lines)
8.10 HAZARDS BY LACK OF WORK ENVIRONMENT
• Temperature, wetness, thermal radiation (e.g. cold environment in the drillers' house)
• Lighting (e.g. too dark, too light, dazzling)
• Perceptual and operating factors (e.g. bad communication possibilities)
• Physical loading (e.g. work load)
• Organization of the work
8.11 HARZADS BY PSYCHOLOGIAL LOADING
• Psychological loading (e.g. tiredness, boredom)
• Lack of social frame conditions (e.g. working atmosphere, job prospects)
8.12 OTHER HAZARDS
• To be determined.

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