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Page 1 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess SEMS in a box. SEMS and and

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Page 1 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

SEMS in a box.

SEMS

and

and

Page 2 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

SEMS

SEMS stands for: Safety Environmental Management System Applications: “…all oil and gas operations on offshore facilities in all phases of work in new & existing facilities”

Page 3 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Consulting Engineering

Services

Process Safety Management

Chemtech Design & Engineering Process Optimization

PS Change Manager PS Information Manager

PS PPM PS AIM OGM

XHQ Operational Intelligence

Conceptual Engineering Services

Page 4 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Our Customers Oil & Gas E&P‘s, Refiners and LNG

Long-term ongoing trust in oil and gas industry. Exxon/Mobil is just one example of a trusting work relationship and respect begun in 1994. From 1-man office in Exxon we are now 1500+ Conceptual Engineering Services professionals and XOM continues in a global contract with us as Siemens CES-Process Safety Management . Our tradition is that of a long-term trusted partner.

Page 5 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Conceptual Engineering Locations

Houston

Rio de Janeiro

Singapore

Oslo

Abu Dhabi

Regional/Engineering Center Consulting Business Center

Mumbai

OTHER OIL AND GAS LOCATIONS - ERLANGEN, GERMANY - NETHERLANDS

Bucharest

Lima

Page 6 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Our CES Engineering Staff

Chemical 100

Electrical 5

Petroleum 2

Mechanical 24

By Discipline

Page 7 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Siemens and SEMS in Romania

Siemens Bucharest Director: Peter Grobmueller Process Safety Experts: Dr. Ciprian Tolescu Dr. Sorin Dinu

Page 8 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess 23 dead in USA 28 dead in UK

Process Safety deals with…

…real world events that keep Process Managers awake at night

Page 9 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Our Process Safety Services

What do we offer? • Pressure relief design analysis & training • Mechanical integrity & risk-based inspection program development • Process safety management

How are we different? • Our Patented equipment based process safety methods • Industry leading edge patented software tools • Contract method, no quess work (Lump Sum)

• Ensure regulatory compliance • Improve safety • Improve reliability • Improve profitability

Page 10 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Mar-2011 Aluminum giant Alcoa sues Apache Energy & partners for $158 million

The Veranus 2008 explosion wiped out one-third of Western Australia’s domestic gas supplies, including supply to big industrial users such as Alcoa, causing what the WA Chamber of Commerce estimated was a $2.4 billion hit to the state economy.

14% of business closures in the state occurred in months after the disruption!

Process Safety’s Greater Upside

2008 Apache Energy fined $87,000 for Veranus Gas Plant incident in Western Australia

Process Safety’s is not about Fines! IMPROVED PERFORMANCE is the greater upside So what?

<14%> 1000’s of people lost their jobs & income

Page 11 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

People and Community

Page 12 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Common SEMS Issues

1

2

Hazard analysis recommendations not closed or implemented.

3 MOC and MI program is manual or not used efficiently.

4 Relief systems not verified & documented prior to facility modifications.

P&IDs, H&MB, operating procedures not up-to-date.

Page 13 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Common SEMS Issues

5

6

Inadequate comprehensive & periodic training program.

7 Audit of various programs lack focus and follow-up.

8 Inspections don’t occur at intended frequencies

Lessons learned from incidents or near misses not shared among all groups.

Page 14 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

SEMS - 13 Elements Based on 4 Core Principles

Principle 1: COMMIT TO SAFETY

Principle 2: UNDERSTAND HAZARDS & RISKS

Principle 3: MANAGE RISKS

Principle 4: LEARN FROM EXPERIENCES

Page 15 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

COMMITMENT TO SAFETY

Page 16 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

13 Elements of SEMS That Improve Oil & Gas business performance

13 ELEMENTS OF

SEMS

OPERATING PROCEDURES SAFETY &

ENVIRONMENTAL INFORMATION

GENERAL

RECORDS & DOCUMENTS

HAZARD ANALYSIS

INCIDENT INVESTIGATION

SEMS AUDIT

EMERGENCY RESPONSE

SAFE WORK

PRACTICES

MECHANICAL INTEGRITY

PRE-STARTUP SAFETY

REVIEW MANAGEMENT

OF CHANGE

Operation Exploration Development Transportation

Page 17 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Understand Your Hazards and Risks

Safety and Environmental Information, SEI

Page 18 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

Hazard Analysis and Job Safety Analysis

Understand Hazards and Risks in your O&G business

Page 19 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

MANAGING RISKS

Management of Change

Operating Procedures

Safe Work Practices

Training

Pre-Start up review

Quality Assurance and Mechanical Integrity of Critical Equipment

Emergency Response and Control

Documentation and Recordkeeping

Page 20 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

SEMS compares closely to OSHA, API & EPA

SEM Elements OSHA 29 CFR API RP 75 EPA 40 CFR

REQUIREMENTS

ARE NOT THE SAME BUT

THEY ARE SIMILAR

Safety and Environmental Information

OSHA 1910.119 (d) PSI API RP 75 (2), 250.1910 68.65

Hazard Analysis & Job Safety Analysis (HA & JSA)

OSHA 1910.119 (e) - PHA API RP 75 (3) 250.1911

68.67

Management of Change (MOC)

OSHA 1910.119 (l) API RP 75 (4) 250.1912

68.75

Operating Procedures (OP) 1910.119 (f) API RP 75 (5) 250.1913 68.69

Safe Work Practices 1910.119 (h, k) API RP 75 (6) 250.1909

68.85 68.87

Training 1910.119 (g) API RP 75 (7) 250.1915 68.71

Assurance of Quality and Mechanical Integrity

OSHA 1910.119 (j) API RP 75 (8) 250.1916

68.73

Pre-startup Safety Review (PSSR)

OSHA 1910.119 (i) API RP 75 (9) 68.77

Emergency Response and Control

OSHA 1910.119 (n) API RP 75 (10) 68.95

Investigations of Incidents OSHA 1910.119 (m) API RP 75 (11) 68.81

Audit of SEM elements OSHA 1910.119 (o) API RP 75 (12) 68.79

Record and Documentation API RP 75 (13)

Page 21 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

UNIQUE PROPRIETARY PROCESS SAFETY TOOLS & CAPABILITIES

SEMS – MANAGEMENT OF CHANGE

SEMS – SAFETY AND ENVIRONMENTAL INFORMATION

SEMS – HAZARD ANALYSIS

Process Safety Programs Process

Hazards Analysis

Safety Systems (PRV, ESD F&G, HIPPS)

Process Safety Information

Management of Change

Mechanical Integrity

Oil and Gas Manager (OGM) Change Manager (PSCM) - MOC Pressure Protection Manager (PSPPM) Asset Integrity Manager (PSAIM)

SEMS – Q.A. & MECHANICAL INTEGRITY

Siemens Software

Page 22 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

COMOS, now in oil & gas, amazing!

Page 23 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

XHQ Operational Intelligence

Page 24 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

XHQ Operational Intelligence

Page 25 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

XHQ Operational Intelligence

Page 26 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

XHQ enables SEMS Dashboards Presents lagging & leading indicators

INSPECTION KPI’s OPERATIONAL RISK KPI’s

MOC TREND FOR 2008

Page 27 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

RESULT ”SEMS IN A BOX”

Page 28 March 2012 Copyright © Siemens AG 2011. All rights reserved. Charles Siess

SEMS Management Overall Dashboard