United Enrgy Pakitan ltd.Naimat Phase v project

hazid Terms of ReferenceFeb 2014Revision: AREVDATEDESCRIPTIONPREPAREDCHECKEDAPPROVEDQA

A13/02/2014Issued for ReviewMSASherazMSZ

contentsAbbreviations3Definitions4holds51.0Introduction61.1Workshop Scope62.0Process Description82.1Background82.2New Facilities83.0Methodology103.1HAZID4.0Meeting details124.1Meeting Arrangements124.2Workshop Attendees124.3Documentation & Materials124.4Recording and Reporting134.5Action Tracking13APPENDICES Appendix I Hazard ChecklistAppendix II Risk assessment MatrixAbbreviationsBLEVEBoiling liquid expanding vapour explosion.BOPBlowout preventer.CVPCapital value process.DCSDistributed control system.EAEngineering authority.FEEDFront end design.HAZIDHazard identification.HAZOPHazard and operability (study).HSSEHealth, safety, security, and environmental.HSSE&OHealth, safety, security, environmental, and operational.IPLIndependent protection layer.ISD Inherently safer design.LNGLiquefied natural gas.LPGLiquefied petroleum gas.MOCManagement of change.OMSOperating management system.P&IDPiping and instrumentation diagrams.PFDProcess flow diagrams.PHSSERProject HSSE review.TORTerms of reference.

DefinitionsCauseEvent, situation, or condition that results, or could result, directly or indirectly in an accident or incident.CompetentDescribes an individual with knowledge and skills deemed acceptable by the engineering authority (EA) to perform a task. Appropriate knowledge and skill may be acquired through training, experience, qualifications, or some combination of these.ConsequencesDirect, undesirable result of an accident sequence usually involving a fire, explosion, or release of toxic material. Consequence descriptions may be qualitative or quantitative estimates of the effects of an accident in terms of factors such as health impacts, economic loss, and environmental damage.HazardCondition or practice with the potential to cause harm to people, the environment, property, or reputation.Hazard identification (HAZID)Brainstorming approach used to identify possible hazards. HAZID studies are very broad in their scope. The HAZID is sometimes called a Preliminary Hazard Analysis.Hazard and operability (HAZOP)Systematic qualitative technique to identify and evaluate process hazards and potential operating problems, using a series of guidewords to examine deviations from normal process conditions.Independent protection layer (IPL)Device, system, or action that is capable of preventing a postulated accident sequence from proceeding to a defined, undesirable endpoint. An IPL is (1) independent of the event that initiated the accident sequence and (2) independent of any other IPLs. IPLs are normally identified during layer of protection analyses.Initiating causeA failure, error, situation, or condition that results or may result in the propagation of a hazardous event.RiskA measure of loss / harm to people, the environment, compliance status, Group reputation, assets or business performance in terms of the product of the probability of an event occurring and the magnitude of its impact. Throughout this Practice the term risk is used to describe health, safety, security, environmental, and operational (HSSE&O) undesired events.NodeA discrete area or portion of an activity, plant, or system that permits a stepwise approach towards progressing through the HAZID.SafeguardsDevice, system, or action that would likely interrupt the chain of events following an initiating cause or that would mitigate loss event impacts.WhatIf analysisScenario based hazard evaluation procedure using a brainstorming approach in which typically a team that includes one or more persons familiar with the subject process asks questions or voices concerns about what could go wrong, what consequences could ensue, and whether the existing safeguards are adequate.

holdsNo holds.

IntroductionUnited Energy Pakistan is conducting a HAZID review of Naimat Phase-V Gas treatment and LPG extraction project. The project is in FEED stage. HAZID inputs will become pat of basis for Detailed Design.A two days session is planned to be conducted at UEPL head office in Bahria Complex-1 on 17th & 18th of Feb 2014.Workshop ScopeThe HAZID will look into Naimat Phase-V scope only. Existing on-going projects, Phase-IV and TAR will not be subject of this HAZID however hazards due to SIMOPSs and any interconnectivity between existing and new units will be considered in this HAZID scope.The purpose of HAZID is to: Identify potential hazards as defined in the TOR for the HAZID study. Consider consequences of the hazards. Identify safeguards that are in place to provide hazard prevention or mitigation. Propose recommendations, as needed, to eliminate, prevent, control, or mitigate hazards. Provide assistance to facility management in its efforts to manage risks. Support objectives of ISD.

Process Description BackgroundSHERAZ TO PROVIDE DETAILS OF EXISTING OPERATIONS AS WELL AS OF ON_GOING EXPANSION PROJECTS (PHASE 3, 4 TAR etc.)New facilities (PHASE-V)SHERAZ TO FILL THIS SECTION. MethodologyHAZID will be carried out as per industry standard practices. HAZID will look into Major Accidents as well as HSSE hazards. A set of guidewords or brainstorming reference list will be used during the session. HAZID team will be encouraged to consider more deviations / hazards which may be missing in generic list. For each guideword team will brainstorm potential consequences and list existing safeguards and generate recommendations for further mitigation if required. A risk Matrix (8x8) will be used to risk rank all the identified harzards.

HAZID Proceedings will be recorded on a worksheet. Draft worksheet is attached (SHERAZ TO ATTACH UPDATED HAZID WORKSHEET)

Meeting detailsMeeting ArrangementsThe workshop will be conducted in Karachi at UEPL head office Bahria Complex-1 on 17th - 18th Feb 2014. Workshop Attendees The workshops will be facilitated by an independent chairperson from SHEPHERED RISK, with attendees made of construction team members, engineers, design & operations representatives. The following personnel from UEPL AND ZEL are required to participate: Project Representative (Project Manager or Project Engineer); Process Engineer; Piping/Layouts Engineer; Electrical Engineer; Controls & Instrument Engineer; Construction Manager; Representative from Operations/Commissioning; Corrosion Engineer Civil Engineer (part time) Other engineers/specialists will be requested as and when is requiredDocumentation & Materials (SHERAZ TO PROVIDE COPIES)The following documentation should be made available during the workshop in advance to avoid the likelihood of interruptions to the session: 1. Process Flow Diagrams (PFDs) - with possibly Piping & Instrumentation Diagrams (P&IDs) at block diagram level; 2. Overall Plant layout (latest revision); 3. Process description including all planned operating cases; 4. Project description including all options, life cycle issues and planned plant flexibility; 5. Safety philosophy; 6. Preliminary operating philosophy.Recording and ReportingThe discussion and actions raised during the workshop review will be recorded on a standard Microsoft Word/Excel worksheet format. The scribe is responsible for taking a record of the meeting with direction from the Chairman. Action TrackingFollowing the workshop, a HAZID report with worksheets will be produced. The Project Manager will be responsible for distributing the report to appropriate parties and tracking Action items and follow up action responses to close out.

Annex-I HAZARD CHECKLIST (SHERAZ TO UPDATE)

Annex-IIRisk Framework HSE Impact LevelsSEVERITYHEALTH AND SAFETYENVIRONMENTAL

ALevels A-C maintain the visibility of risks with the potential for catastrophic impact even if their probability of occurrence is extremely low. The upper level of this framework is defined by the most severe level of impact ever seen in industry. Comparable to the most catastrophic health/ safety incidents ever seen in industry.The potential for 100 or more fatalities (or onset of life threatening health effects) shall always be classified at this level. Future impact, e.g., unintended release, with widespread damage to any environment and which remains in an "unsatisfactory" state for a period > 5 years. Future impact with extensive damage to a sensitive environment and which remains in an "unsatisfactory" state for a period > 5 years. Future impact with widespread damage to a sensitive environment and which can only be restored to a "satisfactory"/agreed state in a period of more than 1 and up to 5 years.

BCatastrophic health/ safety incident causing very widespread fatalities within or outside a facility.The potential for 50 or more fatalities (or onset of life threatening health effects) shall always be classified at this level. Future impact with extensive damage to a non-sensitive environment and which remains in an "unsatisfactory" state for a period > 5 years. Future impact with extensive damage to a sensitive environment and which can only be restored to a "satisfactory"/agreed state in a period of more than 1 and up to 5 years. Future impact with widespread damage to a non-sensitive environment and which can only be restored to a "satisfactory"/agreed state in a period of more than 1 and up to 5 years. Future impact with widespread damage to a sensitive environment and which can be restored to an equivalent capability in a period of around 1 year.

CCatastrophic health/ safety incident causing widespread fatalities within or outside a facility. The potential for 10 or more fatalities (or onset of life threatening health effects) shall always be classified at this level. Future impact with extensive damage to a non-sensitive environment and which can only be restored to a "satisfactory"/agreed state in a period of more than 1 and up to 5 years. Future impact with widespread damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of around 1 year. Future impact with extensive damage to a sensitive environment and which can be restored to an equivalent capability in a period of around 1 year. Future impact with widespread damage to a sensitive environment and which can be restored to an equivalent capability in a period of months.

BP's commitment to health, safety and the environment is paramount; this is reflected in BPs HSE goal of "No Accidents, No Harm to People, and No Damage to the Environment". No accident, injury, or loss of containment causing damage to the environment is ever acceptable to BP. BP is using this framework (equivalents of which are used throughout industry) to support the consistent prioritization of actions to eliminate or mitigate HSE risk and as part of BP's Performance Improvement Cycle to deliver continuous risk reduction.

DVery major health/ safety incidentThe potential for 3 or more fatalities (or onset of life threatening health effects) shall always be classified at this level.30 or more injuries or health effects, either permanent or requiring hospital treatment for more than 24 hours. Future impact with extensive damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of around 1 year. Future impact with localized damage to a sensitive environment and which can be restored to an equivalent capability in a period of around 1 year. Future impact with widespread damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of months. Future impact with extensive damage to a sensitive environment and which can be restored to an equivalent capability in a period of months.

EMajor health/ safety incident1 or 2 fatalities, acute or chronic, actual or alleged. 10 or more injuries or health effects, either permanent or requiring hospital treatment for more than 24 hours. Future impact with localized damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of around 1 year. Future impact with extensive damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of months. Future impact with localized damage to a sensitive environment and which can be restored to an equivalent capability in a period of months. Future impact with extensive damage to a sensitive environment and which can be restored to an equivalent capability in a period of days or weeks.

FHigh impact health/ safety incidentPermanent partial disability(ies)Several non-permanent injuries or health impacts.Days Away From Work Case (DAFWC) Future impact with localized damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of months. Future impact with immediate area damage to a sensitive environment and which can be restored to an equivalent capability in a period of months. Future impact with extensive damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of days or weeks. Future impact with localized damage to a sensitive environment and which can be restored to an equivalent capability in a period of days or weeks.

GMedium impact health/ safety incidentSingle or multiple recordable injury or health effects from common source/event. Future impact with immediate area damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of months. Future impact with localized damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of days or weeks. Future impact with immediate area damage to a sensitive environment and which can be restored to an equivalent capability in a period of days or weeks.

HLow impact health/ safety incident First aid Single or multiple over-exposures causing noticeable irritation but no actual health effects Future impact with immediate area damage to a non-sensitive environment and which can be restored to an equivalent capability in a period of days or weeks.

Risk Framework Business Impact LevelsSEVERITY*Non-Financial ImpactFinancial Impact (EQUIPMENT DAMAGE, BUSINESS VALUE LOST)

APublic or investor outrage on a global scale.Threat of global loss of license to operate.>$20 billion

BLoss of license to operate a major asset in a major market US, EU, Russia.Intervention from major Government US, UK, EU, Russia.Public or investor outrage in major western markets US, EU.Damage to relationships with key stakeholders of benefit to the Group.$5 billion - $20 billion

CLoss of license to operate other material asset, or severe enforcement action against a major asset in a major market.Intervention from other major Government.Public or investor outrage in other material market where we have presence or aspiration.$1 billion - $5 billion

DSevere enforcement action against a material asset in a non-major market, or against other assets in a major market.Interventions from non-major Governments.Public or investor outrage in a non-major market, or localised or limited interest-group outrage in a major market.Prolonged adverse national or international media attention.Widespread adverse social impact.Damage to relationships with key stakeholders of benefit to the Segment.$100 m to $1 billion

EOther adverse enforcement action by regulators.Limited interest-group outrage in non major market.Short term adverse national or international media coverage.Damage to relationships with key stakeholders of benefit to the SPU. $5m -$100 m

FRegulatory compliance issue which does not lead to regulatory or other higher severity level consequence Prolonged local media coverage.Local adverse social impact.Damage to relationships with key stakeholders of benefit to the Performance Unit (PU).$500k-$5m

GShort term local media coverage.Some disruption to local operations (e.g., loss of single road access less than 24 hours).$50k -$500k

HIsolated and short term complaints from neighbours (e.g., complaints about specific noise episode).